Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Banco Santander, S.A. |
Entity Central Index Key | 891,478 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 16,136,153,582 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | |||
CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEPOSITS ON DEMAND | € 110,995 | € 76,454 | € 77,751 |
FINANCIAL ASSETS HELD FOR TRADING | 125,458 | 148,187 | 146,346 |
FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS: | 34,782 | 31,609 | 45,043 |
FINANCIAL ASSETS AVAILABLE-FOR-SALE: | 133,271 | 116,774 | 122,036 |
LOANS AND RECEIVABLES | 903,013 | 840,004 | 836,156 |
INVESTMENTS HELD-TO-MATURITY | 13,491 | 14,468 | 4,355 |
HEDGING DERIVATIVES, ASSETS | 8,537 | 10,377 | 7,727 |
CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK, ASSETS | 1,287 | 1,481 | 1,379 |
INVESTMENTS | 6,184 | 4,836 | 3,251 |
Joint ventures entities | 1,987 | 1,594 | 1,592 |
Associated companies | 4,197 | 3,242 | 1,659 |
REINSURANCE ASSETS | 341 | 331 | 331 |
TANGIBLE ASSETS | 22,974 | 23,286 | 25,320 |
Property, plant and equipment: | 20,650 | 20,770 | 19,335 |
Investment property: | 2,324 | 2,516 | 5,985 |
INTANGIBLE ASSETS | 28,683 | 29,421 | 29,430 |
Goodwill | 25,769 | 26,724 | 26,960 |
Other intangible assets | 2,914 | 2,697 | 2,470 |
TAX ASSETS | 30,243 | 27,678 | 27,814 |
Current tax assets | 7,033 | 6,414 | 5,769 |
Deferred tax assets | 23,210 | 21,264 | 22,045 |
OTHER ASSETS | 9,766 | 8,447 | 7,675 |
Insurance contracts linked to pensions | 239 | 269 | 299 |
Inventories | 1,964 | 1,116 | 1,013 |
Other | 7,563 | 7,062 | 6,363 |
NON-CURRENT ASSETS HELD FOR SALE | 15,280 | 5,772 | 5,646 |
TOTAL ASSETS | 1,444,305 | 1,339,125 | 1,340,260 |
LIABILITIES AND EQUITY | |||
FINANCIAL LIABILITIES HELD FOR TRADING | 107,624 | 108,765 | 105,218 |
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 59,616 | 40,263 | 54,768 |
FINANCIAL LIABILITIES AT AMORTIZED COST | 1,126,069 | 1,044,240 | 1,039,343 |
HEDGING DERIVATIVES, LIABILITIES | 8,044 | 8,156 | 8,937 |
CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK, LIABILITIES | 330 | 448 | 174 |
LIABILITIES UNDER INSURANCE CONTRACTS | 1,117 | 652 | 627 |
PROVISIONS | 14,489 | 14,459 | 14,494 |
TAX LIABILITIES | 7,592 | 8,373 | 7,725 |
Current tax liabilities | 2,755 | 2,679 | 2,160 |
Deferred tax liabilities | 4,837 | 5,694 | 5,565 |
OTHER LIABILITIES | 12,591 | 11,070 | 10,221 |
TOTAL LIABILITIES | 1,337,472 | 1,236,426 | 1,241,507 |
SHAREHOLDERS' EQUITY | 116,265 | 105,977 | 102,402 |
CAPITAL | 8,068 | 7,291 | 7,217 |
SHARE PREMIUM | 51,053 | 44,912 | 45,001 |
EQUITY INSTRUMENTS ISSUED OTHER THAN CAPITAL | 525 | ||
OTHER EQUITY | 216 | 240 | 214 |
ACCUMULATED RETAINED EARNINGS | 53,437 | 49,953 | 46,429 |
OTHER RESERVES | (1,602) | (949) | (669) |
Reserves or accumulated losses in joint ventures investments | 724 | 466 | 291 |
Other reserve components | (2,326) | (1,415) | (960) |
(-) OWN SHARES | (22) | (7) | (210) |
PROFIT ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT | 6,619 | 6,204 | 5,966 |
(-) DIVIDENDS | (2,029) | (1,667) | (1,546) |
OTHER COMPREHENSIVE INCOME | (21,776) | (15,039) | (14,362) |
ITEMS NOT RECLASSIFIED TO PROFIT OR LOSS: | (4,034) | (3,933) | (3,166) |
Actuarial gains or ( ) losses on defined benefit pension plans | (4,033) | (3,931) | (3,165) |
Other recognized income and expense of investments in subsidiaries, joint ventures and associates, not reclassified | (1) | (2) | (1) |
ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS: | (17,742) | (11,106) | (11,196) |
Hedge of net investments in foreign operations (Effective portion) | (4,311) | (4,925) | (3,597) |
Exchange differences | (15,430) | (8,070) | (8,383) |
Hedging derivatives. Cash flow hedges (Effective portion) | 152 | 469 | 171 |
Financial assets available-for-sale | 2,068 | 1,571 | 844 |
Other recognized income and expense of investments in subsidiaries, joint ventures and associates, may be reclassified | (221) | (151) | (231) |
NON-CONTROLLING INTEREST | 12,344 | 11,761 | 10,713 |
Other comprehensive income | (1,436) | (853) | (1,227) |
Other items | 13,780 | 12,614 | 11,940 |
TOTAL EQUITY | 106,833 | 102,699 | 98,753 |
TOTAL LIABILITIES AND EQUITY | 1,444,305 | 1,339,125 | 1,340,260 |
Provision for pensions and other employment defined benefit obligations | |||
LIABILITIES AND EQUITY | |||
PROVISIONS | 6,345 | 6,576 | 6,356 |
Provision for other long term employee benefits | |||
LIABILITIES AND EQUITY | |||
PROVISIONS | 1,686 | 1,712 | 1,916 |
Provision for taxes and other legal contingencies | |||
LIABILITIES AND EQUITY | |||
PROVISIONS | 3,181 | 2,994 | 2,577 |
Provision for commitments and guarantees given | |||
LIABILITIES AND EQUITY | |||
PROVISIONS | 617 | 459 | 618 |
Other provisions member | |||
LIABILITIES AND EQUITY | |||
PROVISIONS | 2,660 | 2,718 | 3,027 |
For own use | |||
ASSETS | |||
Property, plant and equipment: | 8,279 | 7,860 | 7,949 |
Leased out under an operating lease | |||
ASSETS | |||
Property, plant and equipment: | 12,371 | 12,910 | 11,386 |
Investment property: | 1,332 | 1,567 | 4,777 |
Derivatives | |||
LIABILITIES AND EQUITY | |||
FINANCIAL LIABILITIES HELD FOR TRADING | 57,892 | 74,369 | 76,414 |
Short positions | |||
LIABILITIES AND EQUITY | |||
FINANCIAL LIABILITIES HELD FOR TRADING | 20,979 | 23,005 | 17,362 |
Deposits | |||
LIABILITIES AND EQUITY | |||
FINANCIAL LIABILITIES HELD FOR TRADING | 28,753 | 11,391 | 11,442 |
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 55,971 | 37,472 | 51,394 |
FINANCIAL LIABILITIES AT AMORTIZED COST | 883,320 | 791,646 | 795,679 |
Deposits - Central banks | |||
LIABILITIES AND EQUITY | |||
FINANCIAL LIABILITIES HELD FOR TRADING | 282 | 1,351 | 2,178 |
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 8,860 | 9,112 | 16,486 |
FINANCIAL LIABILITIES AT AMORTIZED COST | 71,414 | 44,112 | 38,872 |
Deposits - Credit institutions | |||
LIABILITIES AND EQUITY | |||
FINANCIAL LIABILITIES HELD FOR TRADING | 292 | 44 | 77 |
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 18,166 | 5,015 | 8,551 |
FINANCIAL LIABILITIES AT AMORTIZED COST | 91,300 | 89,764 | 109,209 |
Deposits - Customers | |||
LIABILITIES AND EQUITY | |||
FINANCIAL LIABILITIES HELD FOR TRADING | 28,179 | 9,996 | 9,187 |
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 28,945 | 23,345 | 26,357 |
FINANCIAL LIABILITIES AT AMORTIZED COST | 720,606 | 657,770 | 647,598 |
Marketable debt securities | |||
LIABILITIES AND EQUITY | |||
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 3,056 | 2,791 | 3,373 |
FINANCIAL LIABILITIES AT AMORTIZED COST | 214,910 | 226,078 | 222,787 |
Other financial liabilities | |||
LIABILITIES AND EQUITY | |||
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 589 | 1 | |
FINANCIAL LIABILITIES AT AMORTIZED COST | 27,839 | 26,516 | 20,877 |
Derivatives | |||
ASSETS | |||
FINANCIAL ASSETS HELD FOR TRADING | 57,243 | 72,043 | 76,724 |
Equity instruments | |||
ASSETS | |||
FINANCIAL ASSETS HELD FOR TRADING | 21,353 | 14,497 | 18,225 |
FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS: | 933 | 546 | 630 |
FINANCIAL ASSETS AVAILABLE-FOR-SALE: | 4,790 | 5,487 | 4,849 |
LIABILITIES AND EQUITY | |||
Financial assets available-for-sale | 914 | 1,148 | 746 |
Debt instruments | |||
ASSETS | |||
FINANCIAL ASSETS HELD FOR TRADING | 36,351 | 48,922 | 43,964 |
FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS: | 3,485 | 3,398 | 3,717 |
FINANCIAL ASSETS AVAILABLE-FOR-SALE: | 128,481 | 111,287 | 117,187 |
LOANS AND RECEIVABLES | 17,543 | 13,237 | 10,907 |
INVESTMENTS HELD-TO-MATURITY | 13,491 | 14,468 | 4,355 |
LIABILITIES AND EQUITY | |||
Financial assets available-for-sale | 1,154 | 423 | 98 |
Loans and advances | |||
ASSETS | |||
FINANCIAL ASSETS HELD FOR TRADING | 10,511 | 12,725 | 7,433 |
FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS: | 30,364 | 27,665 | 40,696 |
LOANS AND RECEIVABLES | 885,470 | 826,767 | 825,249 |
Loans and advances - Central banks | |||
ASSETS | |||
LOANS AND RECEIVABLES | 26,278 | 27,973 | 17,337 |
Loans and advances - Credit institutions | |||
ASSETS | |||
FINANCIAL ASSETS HELD FOR TRADING | 1,696 | 3,221 | 1,352 |
FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS: | 9,889 | 10,069 | 26,403 |
LOANS AND RECEIVABLES | 39,567 | 35,424 | 37,438 |
Loans and advances - Customers | |||
ASSETS | |||
FINANCIAL ASSETS HELD FOR TRADING | 8,815 | 9,504 | 6,081 |
FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS: | 20,475 | 17,596 | 14,293 |
LOANS AND RECEIVABLES | € 819,625 | € 763,370 | € 770,474 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Memorandum Items [Abstract] | |||
Acquired in finance lease, investment property | € 96 | € 115 | € 195 |
Contingent Liabilities | 49,117 | 44,434 | 39,834 |
Contingent Commitments | 237,970 | 231,962 | 221,738 |
Financial liabilities at amortized cost, category | |||
Memorandum Items [Abstract] | |||
Subordinated liabilities | 21,510 | 19,902 | 21,153 |
Financial assets held for trading | |||
Memorandum Items [Abstract] | |||
Lent or delivered as guarantee with disposal or pledge rights | 50,891 | 38,145 | 34,026 |
Financial assets designated at fair value through profit or loss | |||
Memorandum Items [Abstract] | |||
Lent or delivered as guarantee with disposal or pledge rights | 5,766 | 2,025 | |
Financial assets available for sale | |||
Memorandum Items [Abstract] | |||
Lent or delivered as guarantee with disposal or pledge rights | 43,079 | 23,980 | 26,742 |
Loans and receivables category | |||
Memorandum Items [Abstract] | |||
Lent or delivered as guarantee with disposal or pledge rights | 8,147 | 7,994 | € 1,697 |
Held-to-maturity investments category | |||
Memorandum Items [Abstract] | |||
Lent or delivered as guarantee with disposal or pledge rights | € 6,996 | € 2,489 |
Consolidated Income Statement
Consolidated Income Statement - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income | € 56,041 | € 55,156 | € 57,198 |
Interest expense | (21,745) | (24,067) | (24,386) |
Interest income/ (charges) | 34,296 | 31,089 | 32,812 |
Dividend income | 384 | 413 | 455 |
Income from companies accounted for using the equity method | 704 | 444 | 375 |
Commission income | 14,579 | 12,943 | 13,042 |
Commission expense | (2,982) | (2,763) | (3,009) |
Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 404 | 869 | 1,265 |
Gains or losses on financial assets and liabilities held for trading, net | 1,252 | 2,456 | (2,312) |
Gains or losses on financial assets and liabilities measured at fair value through profit or loss, net | (85) | 426 | 325 |
Gains or losses from hedge accounting, net | (11) | (23) | (48) |
Exchange differences, net | 105 | (1,627) | 3,156 |
Other operating income | 1,618 | 1,919 | 1,971 |
Other operating expenses | (1,966) | (1,977) | (2,235) |
Income from assets under insurance and reinsurance contracts | 2,546 | 1,900 | 1,096 |
Expenses from liabilities under insurance and reinsurance contracts | (2,489) | (1,837) | (998) |
Total income | 48,355 | 44,232 | 45,895 |
Administrative expenses | (20,400) | (18,737) | (19,302) |
Personnel expenses | (12,047) | (11,004) | (11,107) |
Other general administrative expenses | (8,353) | (7,733) | (8,195) |
Depreciation and amortization | (2,593) | (2,364) | (2,418) |
Provisions or reversal of provisions | (3,058) | (2,508) | (3,106) |
Impairment and reversal of impairment on financial assets not measured at fair value through profit or loss, net | (9,259) | (9,626) | (10,652) |
Impairment of investments in subsidiaries, joint ventures and associates, net | (13) | (17) | (1) |
Impairment on non-financial assets, net | (1,260) | (123) | (1,091) |
Impairment on tangible assets, net | (72) | (55) | (128) |
Impairment on intangible assets, net | (1,073) | (61) | (701) |
Impairment on other assets, net | (115) | (7) | (262) |
Gains or losses on non-financial assets and investments, net | 522 | 30 | 112 |
Of which: Investments in subsidiaries, joint ventures and associates | 431 | 15 | 91 |
Negative goodwill recognized in results | 22 | 283 | |
Gains or losses on non-current assets held for sale not classified as discontinued operations | (203) | (141) | (173) |
Operating profit / (loss) before tax | 12,091 | 10,768 | 9,547 |
Tax expense or income from continuing operations | (3,884) | (3,282) | (2,213) |
Profit from continuing operations | 8,207 | 7,486 | 7,334 |
CONSOLIDATED PROFIT FOR THE YEAR | 8,207 | 7,486 | 7,334 |
Profit (loss), attributable to [abstract] | |||
Profit attributable to non-controlling interests | 1,588 | 1,282 | 1,368 |
Profit attributable to the parent | € 6,619 | € 6,204 | € 5,966 |
Earnings per share [abstract] | |||
Basic | € 0.404 | € 0.401 | € 0.397 |
Diluted | € 0.403 | € 0.399 | € 0.396 |
Financial assets at amortized cost, category | |||
Impairment and reversal of impairment on financial assets not measured at fair value through profit or loss, net | € (8) | € (52) | € (228) |
Financial assets available for sale | |||
Dividend income | 150 | 196 | 189 |
Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 472 | 861 | 891 |
Impairment and reversal of impairment on financial assets not measured at fair value through profit or loss, net | (10) | 11 | (230) |
Loans and receivables category | |||
Impairment and reversal of impairment on financial assets not measured at fair value through profit or loss, net | € (9,241) | (9,557) | € (10,194) |
Held-to-maturity investments category | |||
Impairment and reversal of impairment on financial assets not measured at fair value through profit or loss, net | € (28) |
Consolidated Statements of Reco
Consolidated Statements of Recognized Income and Expense - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [abstract] | |||
CONSOLIDATED PROFIT FOR THE YEAR | € 8,207 | € 7,486 | € 7,334 |
OTHER RECOGNIZED INCOME AND EXPENSE | (7,320) | (303) | (4,076) |
Total items that will not be reclassified to profit or loss | (88) | (806) | 445 |
Actuarial gains and losses on defined benefit pension plans | (157) | (1,172) | 695 |
Other recognized income and expense of investments in subsidiaries, joint ventures and associates | 1 | (1) | |
Income tax relating to items that will not be reclassified to profit or loss | 68 | 367 | (250) |
Total items that may be reclassified to profit or loss | (7,232) | 503 | (4,521) |
Hedges of net investments in foreign operations (Effective portion) | 614 | (1,329) | (27) |
Revaluation gain (losses) | 614 | (1,330) | (27) |
Amounts transferred to income statement | 1 | ||
Exchanges differences | (8,014) | 676 | (3,518) |
Revaluation gains (losses) | (8,014) | 682 | (3,518) |
Amounts transferred to income statement | (6) | ||
Cash flow hedges (Effective portion) | (441) | 495 | (91) |
Revaluation gains (losses) | 501 | 6,231 | (105) |
Amounts transferred to income statement | (942) | (5,736) | 14 |
Financial assets available-for-sale | 683 | 1,326 | (1,216) |
Revaluation gains (losses) | 1,137 | 2,192 | (555) |
Amounts transferred to income statement | (454) | (866) | (661) |
Share of other recognized income and expense of investments | (70) | 80 | (147) |
Income tax relating to items that may be reclassified to profit or loss | (4) | (745) | 478 |
Total recognized income and expenses | 887 | 7,183 | 3,258 |
Comprehensive income, attributable to non-controlling interests | 1,005 | 1,656 | 796 |
Comprehensive income, attributable to the parent | € (118) | € 5,527 | € 2,462 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity - EUR (€) € in Millions | Capital | Share premium member | Other instruments (not capital) | Other equity instruments | Accumulated retained earnings | Other reserves member | Own equity instruments | Parent result for the period | Dividends | Other comprehensive income | Other comprehensive income, non-controlling interests | Other items, non-controlling interests | Total |
Equity at beginning of period at Dec. 31, 2014 | € 6,292 | € 38,611 | € 265 | € 41,860 | € (700) | € (10) | € 5,816 | € (471) | € (10,858) | € (655) | € 9,564 | € 89,714 | |
Total recognized income and expense | 5,966 | (3,504) | (572) | 1,368 | 3,258 | ||||||||
Other changes in equity | 925 | 6,390 | (51) | 4,569 | 31 | (200) | (5,816) | (1,075) | 1,008 | 5,781 | |||
Issuance of ordinary shares | 925 | 6,390 | 120 | 320 | 7,755 | ||||||||
Issuance of other financial instruments | 890 | 890 | |||||||||||
Capital reduction | (20) | (20) | |||||||||||
Dividends | (673) | (1,546) | (461) | (2,680) | |||||||||
Purchase of equity instruments | (3,225) | (3,225) | |||||||||||
Disposal of equity instruments | 16 | 3,025 | 3,041 | ||||||||||
Transfers between equity items | 5,242 | 103 | (5,816) | 471 | |||||||||
Increases or ( ) decreases due to business combinations | 761 | 761 | |||||||||||
Share-based payment | (188) | 107 | (81) | ||||||||||
Other increases or ( ) decreases of the equity | 137 | (208) | (589) | (660) | |||||||||
Equity at end of period at Dec. 31, 2015 | 7,217 | 45,001 | 214 | 46,429 | (669) | (210) | 5,966 | (1,546) | (14,362) | (1,227) | 11,940 | 98,753 | |
Total recognized income and expense | 6,204 | (677) | 374 | 1,282 | 7,183 | ||||||||
Other changes in equity | 74 | (89) | 26 | 3,524 | (280) | 203 | (5,966) | (121) | (608) | (3,237) | |||
Issuance of ordinary shares | 74 | (89) | 15 | 534 | 534 | ||||||||
Capital reduction | (22) | (22) | |||||||||||
Dividends | (722) | (1,667) | (800) | (3,189) | |||||||||
Purchase of equity instruments | (1,380) | (1,380) | |||||||||||
Disposal of equity instruments | 15 | 1,583 | 1,598 | ||||||||||
Transfers between equity items | 4,246 | 174 | (5,966) | 1,546 | |||||||||
Increases or ( ) decreases due to business combinations | (197) | (197) | |||||||||||
Share-based payment | (79) | (79) | |||||||||||
Other increases or ( ) decreases of the equity | 105 | (484) | (123) | (502) | |||||||||
Equity at end of period at Dec. 31, 2016 | 7,291 | 44,912 | 240 | 49,953 | (949) | (7) | 6,204 | (1,667) | (15,039) | (853) | 12,614 | 102,699 | |
Total recognized income and expense | 6,619 | (6,737) | (583) | 1,588 | 887 | ||||||||
Other changes in equity | 777 | 6,141 | € 525 | (24) | 3,484 | (653) | (15) | (6,204) | (362) | (422) | 3,247 | ||
Issuance of ordinary shares | 777 | 6,141 | 6 | 543 | 7,467 | ||||||||
Issuance of other financial instruments | 525 | 592 | 1,117 | ||||||||||
Capital reduction | (10) | (10) | |||||||||||
Dividends | (802) | (2,029) | (665) | (3,496) | |||||||||
Purchase of equity instruments | (1,309) | (1,309) | |||||||||||
Disposal of equity instruments | 26 | 1,294 | 1,320 | ||||||||||
Transfers between equity items | 4,286 | 251 | (6,204) | 1,667 | |||||||||
Increases or ( ) decreases due to business combinations | (39) | (39) | |||||||||||
Share-based payment | (72) | 24 | (48) | ||||||||||
Other increases or ( ) decreases of the equity | 48 | (936) | (867) | (1,755) | |||||||||
Equity at end of period at Dec. 31, 2017 | € 8,068 | € 51,053 | € 525 | € 216 | € 53,437 | € (1,602) | € (22) | € 6,619 | € (2,029) | € (21,776) | € (1,436) | € 13,780 | € 106,833 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of cash flows [abstract] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | € 40,188 | € 21,823 | € 5,678 |
CONSOLIDATED PROFIT FOR THE YEAR | 8,207 | 7,486 | 7,334 |
Adjustments made to obtain the cash flows from operating activities | 23,927 | 22,032 | 20,614 |
Depreciation and amortization | 2,593 | 2,364 | 2,418 |
Other adjustments | 21,334 | 19,668 | 18,196 |
Net increase/(decrease) in operating assets | 18,349 | 17,966 | 69,587 |
Increase/(decrease) in financial assets held for trading | (18,114) | 6,234 | 866 |
Increase/(decrease) in financial assets at fair value through profit or loss | 3,085 | (12,882) | 2,376 |
Increase/(decrease) in financial assets available for sale | 2,494 | (7,688) | 15,688 |
Increase/(decrease) in loans and receivables | 32,379 | 27,938 | 53,880 |
Increase/(decrease) in other operating assets | (1,495) | 4,364 | (3,223) |
Net increase/(decrease) in operating liabilities | 30,540 | 13,143 | 49,522 |
Increase/(decrease) in financial liabilities held for trading | 1,933 | 8,032 | (2,655) |
Increase/(decrease) in financial liabilities designated at fair value through profit or loss | 19,906 | (13,450) | (8,011) |
Increase (decrease) in financial liabilities at amortized cost | 12,006 | 21,765 | 58,568 |
Increase/(decrease) in other operating liabilities | (3,305) | (3,204) | 1,620 |
Income tax recovered/(paid) | (4,137) | (2,872) | (2,205) |
CASH FLOWS FROM INVESTING ACTIVITIES | (4,008) | (13,764) | (6,218) |
Payments for investing | 10,134 | 18,204 | 10,671 |
Payments for tangible assets | 7,450 | 6,572 | 7,664 |
Payments for intangible assets | 1,538 | 1,768 | 1,572 |
Payments for investments | 8 | 48 | 82 |
Payments for subsidiaries and other business units | 838 | 474 | 1,353 |
Payments for held-to-maturity investments | 300 | 9,342 | |
Proceeds from investing | 6,126 | 4,440 | 4,453 |
Proceeds from tangible assets | 3,211 | 2,608 | 2,386 |
Proceeds from intangible assets | 2 | ||
Proceeds from investments | 883 | 459 | 422 |
Proceeds from subsidiaries and other business units | 263 | 94 | 565 |
Proceeds from non-current assets held for sale and associated liabilities | 1,382 | 1,147 | 940 |
Proceeds from held-to-maturity investments | 387 | 132 | 138 |
CASH FLOWS FROM FINANCING ACTIVITIES | 4,206 | (5,745) | 8,960 |
Payments for financing | 7,783 | 9,744 | 7,248 |
Payments for dividends | 2,665 | 2,309 | 1,498 |
Payments of subordinated liabilities | 2,007 | 5,112 | 2,239 |
Payments for acquisition of own equity instruments | 1,309 | 1,380 | 3,225 |
Other payments related to financing activities | 1,802 | 943 | 286 |
Proceeds from financing | 11,989 | 3,999 | 16,208 |
Proceeds from subordinated liabilities | 2,994 | 2,395 | 4,787 |
Proceeds from issuance of own equity instruments | 7,072 | 7,500 | |
Proceeds from disposal of own equity instruments | 1,331 | 1,604 | 3,048 |
Other proceeds related to financing activities | 592 | 873 | |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES | (5,845) | (3,611) | (522) |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 34,541 | (1,297) | 7,898 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 76,454 | 77,751 | 69,853 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 110,995 | 76,454 | 77,751 |
Memorandum Items [Abstract] | |||
Cash | 8,583 | 8,413 | 7,436 |
Cash equivalents at central banks | 87,430 | 54,637 | 56,556 |
Other financial assets | € 14,982 | € 13,404 | € 13,759 |
Introduction Basis of Presentat
Introduction Basis of Presentation of the Consolidated Financial Statements and Other Information | 12 Months Ended |
Dec. 31, 2017 | |
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) Banco Santander, S.A. (“the Bank” or “Banco Santander”) is a private-law entity subject to the rules and regulations applicable to banks operating in Spain. In addition to the operations carried on directly by it, the Bank is the head of a group of subsidiaries that engage in various business activities and which compose, together with it, Santander Group (“the Group” or “Santander Group”). Therefore, the Bank is obliged to prepare, in addition to its own separate financial statements, the Group's consolidated financial statements, which also include the interests in joint ventures and investments in associates. b) Under Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of July 19, 2002 all companies governed by the law of an EU Member State and whose securities are admitted to trading on a regulated market of any Member State must prepare their consolidated financial statements for the years beginning on or after January 1, 2005 in conformity with the International Financial Reporting Standards (“IFRSs”) previously adopted by the European Union (“EU-IFRSs”). In order to adapt the accounting system of Spanish credit institutions to the new standards, the Bank of Spain issued Circular 4/2004, of December 22 on Public and Confidential Financial Reporting Rules and Formats. The Group's consolidated financial statements for 2017 were authorized by the Bank's directors (at the board meeting on February 13, 2018) in accordance with International Financial Reporting Standards as adopted by the European Union and with Bank of Spain Circular 4/2004 and Spanish corporate and commercial law applicable to the Group and in compliance with IFRS as issued by the International Accounting Standards Board (“IFRS – IASB” and together with IFRS adopted by the European Union, “IFRS”), using the basis of consolidation, accounting policies and measurement bases set forth in Note 2, accordingly, they present fairly the Group's equity and financial position at December 31, 2017, 2016 and 2015 and the consolidated results of its operations, the consolidated recognized income and expense, the changes in its consolidated equity and the consolidated cash flows in 2017, 2016 and 2015. These consolidated financial statements were prepared from the accounting records kept by the Bank and by the other Group entities, and include the adjustments and reclassifications required to unify the accounting policies and measurement bases applied by the Group. The notes to the consolidated financial statements contain additional information to that presented in the consolidated balance sheet, consolidated income statement, consolidated statement of recognized income and expense, consolidated statement of changes in total equity and consolidated statement of cash flows. The notes provide, in a clear, relevant, reliable and comparable manner, narrative descriptions and breakdowns of these financial statements. Adoption of new standards and interpretations issued The following standards came into force and were adopted by the European Union in 2017: - Modification of IAS (International Accounting Standards) 12 Recognition of deferred tax assets for unrealized losses (effective for annual reporting periods beginning on or after January 1, 2017) clarify that the existence of a deductible temporary differences depends just on the comparison between the carrying amount and tax base of assets and liabilities at the end of the informed period and it is not affected by possible future changes on the carrying amount or the expected standard of the asset recovery. - Modification of IAS 7 Disclosure initiative (effective for annual reporting periods beginning on or after January 1, 2017) has as its main objective to improve the presentation and the breakdown in the statement of cash flows. The modifications require disclosures about changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. The application of the aforementioned accounting standards did not have any material effects on the Group’s consolidated financial statements. Also, at the date of preparation of these consolidated financial statements, the following amendments with an effective date subsequent to December 31, 2017 were in force: - IFRS 9 Financial instruments - Classification and measurement, hedging and impairment (mandatory for annual periods starting from January 1, 2018). IFRS 9 establishes the recognition and measurement requirements for financial instruments and certain classes of contracts for trades involving non-financial assets. These requirements should be applied in a retrospective manner, by adjusting the opening balance at January 1, 2018, without restating the comparative financial statements. The main aspects of the new standard are: (a) Classification of financial instruments: the classification criteria for financial assets depends on the business model for their management and the characteristics of their contractual flows. Depending on these factors, the asset can be measured at amortized cost, at fair value with changes reported in other comprehensive income, or at fair value with changes reported through profit and loss for the period. IFRS 9 also establishes an option to designate an instrument at fair value with changes in profit or loss, under certain conditions. Santander Group uses the following criteria for the classification of financial debt instruments: - Amortized cost: financial instruments under a business model whose objective is to collect principal and interest cash flows, over those where no significant unjustified sales exist and fair value is not a key factor in managing these financial assets. In this way, unjustified sales are those that are different from sales related with an increase in the asset´s credit risk, unanticipated funding needs (stress case scenario), even if such sales are significant in value , or from sales of assets that no longer met the credit criteria specified in the entity’s investment policy. Additionally, the contractual flow characteristics substantially represent a “basic financing agreement”. - Fair value with changes recognized through other comprehensive income: financial instruments held in a business model whose objective is to collect principal and interest cash flows and the sale of these assets, where fair value is a key factor in their management. Additionally, the contractual cash flow characteristics substantially represent a “basic financing agreement”. - Fair value with changes recognized through profit or loss: 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 assets, and financial instruments whose contractual cash flow characteristics do not substantially represent a “basic financing agreement”. Santander Group’s main activity revolves around retail and commercial banking operations, and its exposure does not focus on complex financial products. The Group's main objective is to achieve consistent classification of financial instruments in the portfolios as established under IFRS 9. To this end, it has developed guidelines containing criteria to ensure consistent classification across all of its units. Additionally, the Group has analyzed its portfolios under these criteria, in order to assign its financial instruments to the appropriate portfolio under IFRS 9, with no significant changes being identified. Based on this analysis, Santander Group concludes that: - Most of its financial assets classified as loans and advances under IAS 39 will continue to be recognized at amortized cost under IFRS 9. As a consequence of the contractual cash flows characteristics analysis of the financial instruments, a 0.3% of the total balance at December 31, 2017 under IAS 39 for the period primarily will be reclassified to fair value with changes reported through profit and loss. As a result of the business model definition according to the assets managed, a 0.2% of the total balance at December 31, 2017 under IAS 39 will be reclassified to fair value with changes recognized in other comprehensive income. - In general, debt instruments classified as available-for-sale financial assets will be measured at fair value with changes recognized through other comprehensive income. As a consequence of the contractual cash flows characteristics analysis of the financial instruments, a 0.2% of the total balance at December 31, 2017 under IAS 39 for the period primarily, will be reclassified to fair value with changes reported through profit and loss. As a result of the business model definition according to the assets managed, a 5.1% of the total balance at December 31, 2017 under IAS 39 will be reclassified to fair value with changes recognized in other comprehensive income. However, the expected impact in shareholders´ equity due to the reclassifications mentioned above is not considered significant. Available-for-sale equity instruments will be classified at fair value under IFRS 9, with changes recognized through profit or loss, unless the Group decides, for non-trading assets, to classify them at fair value with changes recognized through other comprehensive income (irrevocably). IAS 39 financial liabilities classification and measurement criteria remains substantially unchanged under IFRS 9. Nevertheless, in most cases, the changes in the fair value of financial liabilities designated at fair value with changes recognized through profit or loss for the year, due to the entity credit risk, are classified under other comprehensive income. On October 12, 2017, the IASB (International Accounting Standards Board) published a clarification on the treatment of certain prepayment options in relation to the assessment of contractual cash flows of principal and interest on financial instruments, which is currently pending approval by the European Union. However, the Group does not expect a significant impact in the transition period prior to the adoption of this amendment. (b) Credit risk impairment model: the most important new development compared with the current model is that the new accounting standard introduces the concept of expected loss, whereas the current model (IAS 39) is based on incurred loss. - Scope of application: The IFRS 9 impairment model applies to financial assets valued at amortized cost, debt instruments valued at fair value with changes reported in other comprehensive income, lease receivables, and commitments and guarantees given not valued at fair value. - Use of practical expedients under IFRS 9: IFRS 9 includes a number of practical expedients that may be implemented by entities to facilitate implementation. However, in order to achieve full and high quality implementation of the standard, considering industry best practices, these practical expedients will not be widely used: - Rebuttable presumption that the credit risk has increased significantly when payments are more than 30 days past due: this threshold is used as an additional – but not primary - indicator of significant risk increase. Additionally, there may be cases in the Group where its use has been rebutted as a result of studies that show a low correlation of the significant risk increase with this past due threshold. - Assets with low credit risk at the reporting date: in general, the Group assesses the existence of significant risk increase in all its financial instruments. - Impairment estimation methodology: the portfolio of financial instruments subject to impairment is divided into three categories, based on the stage of each instrument with regard to its level of credit risk: - Stage 1: financial instruments for which no significant increase in risk is identified since its initial recognition. In this case, the impairment provision reflects expected credit losses arising from defaults over the following 12 months from the reporting date. - Stage 2: if there has been a significant increase in risk since the date of initial recognition, but the impairment event has not materialized the financial instrument is classified as Stage 2. In this case, the impairment provision reflects the expected losses from defaults over the residual life of the financial instrument. - Stage 3: a financial instrument is catalogued in this stage when shows effective signs of impairment as a result of one or more events that have already occurred resulting in a loss. In this case, the amount of the impairment provision reflects the expected losses for credit risk over the expected residual life of the financial instrument. Additionally, the amount relative to the impairment provision reflects expected credit risk losses through the expected residual life in those financial instruments purchased or originated credit impaired (POCI). The methodology required for the quantification of expected loss due to credit events will be based on an unbiased and weighted consideration of the occurrence of up to five 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 macroeconomic factors deemed relevant to the estimation of this amount (e.g. GDP (Gross Domestic Product), house pricing, unemployment rate, etc.). In estimating the parameters used for impairment provisions calculation (EAD (Exposure at Default), PD (Probability of Default), LGD (Loss Given Default) and discount rate), the Group leveraged on its experience developing internal models for calculating parameters for regulatory and management purposes. The Group is aware of the differences between such 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 impairment provision models. - Determination of significant increase in risk: with the purpose of determine whether a financial instrument has increased its credit risk since initial recognition, proceeding with its classification into Stage 2, the Group considers the following criteria. Quantitative criteria Changes in the risk of a default occurring through the expected life of the financial instrument are analyzed and quantified with respect to its credit level in its initial recognition. With the purpose of determining if such changes are considered as significant, with the consequent classification into Stage 2, each Group unit has defined the quantitative thresholds to consider in each of its portfolios taking into account corporate guidelines ensuring a consistent interpretation in all geographies. Qualitative criteria In addition to the quantitative criteria mentioned above, the Group considers several indicators that are aligned with those used in ordinary credit risk management (e.g.: over 30 days past due, forbearances, etc.). Each unit has defined these qualitative criteria for each of its portfolios, according to its particularities and with the policies currently in force. The use of these qualitative criteria is complemented with the use of an expert judgement. - Default definition: the definition considered for impairment provisioning purposes is consistent with that used in the development of advanced models for regulatory capital requirements calculations. - Use of present, past and future information: estimation of expected losses requires a high component of expert judgement and it must be supported by past, present and future information. Therefore, these expected loss estimates take into consideration multiple macroeconomic scenarios for which the probability is measured considering past events, current situation and future trends and macroeconomic indicators, such as GDP or unemployment rate. The Group already uses forward looking information in internal management and regulatory processes, considering several scenarios. In this sense, the Group has leveraged its experience in the management of such information, maintaining consistency with the information used in the other processes. - Expected life of the financial instrument: with the purpose of its estimation all the contractual terms have been taken into account (e.g. 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 instruments with an uncertain maturity period and a component of undrawn commitment (e.g.: credit cards), expected life is estimated considering the period for which the entity is exposed to credit risk and the effectiveness of management practices mitigates such exposure. - Impairment recognition: the main change with respect to the current standard related to assets measured at fair value with changes recognized through other comprehensive income. The portion of the changes in fair value due to expected credit losses will be recorded at the current profit and loss account while the rest will be recorded in other comprehensive income. (c) Hedge accounting: IFRS 9 includes new hedge accounting requirements which have a twofold objective: to simplify current requirements, and to bring hedge accounting in line with risk management, allowing to be a greater variety of derivative financial instruments which may be considered to be hedging instruments. Furthermore, additional breakdowns are required providing useful information regarding the effect which hedge accounting has on financial statements and also on the entity’s risk management strategy. The treatment of macro-hedges is being developed as a separate project under IFRS 9. Entities have the option of continuing to apply IAS 39 with respect to accounting hedges until the project has been completed. According to the analysis performed until now, the Group will continue to apply IAS 39 in hedge accounting. Transition The European Union has already endorsed IFRS 9. The criteria established by this rule for the classification, measurement and impairment of financial assets, will be applied in a retrospective way, adjusting the first opening balances in the first application date (January 1, 2018). This new international standard is aligned with the credit risk directives of the EBA and Bank of Spain Circular 4/2017. Santander Group has estimated an impact in (Common Equity Tier 1 -CET 1-) fully loaded basis of -20bp. The Group will apply a progressive phased-in regime in the period of 5 years based on Regulation (EU) No 2017/2395 of the European Parliament and of the Council amending Regulation (EU) No 575/2013 as regards transitional arrangements for mitigating the impact of the introduction of IFRS 9 on own funds that would be an impact of the new impairment model of IFRS 9 of -1bp on Common Equity Tier 1 capital during the period from January 1, 2018 to December 31, 2018 or 5% of total impact. The increase in impairment provisions amounts to approximately €2,200 million. The main causes of this impact are the requirements to record impairment provisions for the whole life of the transaction for instruments where a significant risk increase has been identified after initial recognition, in addition to forward-looking information in the estimates of impairment provisions. IFRS 9 implementation strategy and governance The Group has established a global and multidisciplinary workstream with the aim of adapting its processes to the new classification standards for financial instruments, accounting of hedges and estimating credit risk impairment, ensuring that these processes have been applied in a uniform way for all Group units, and, at the same time, have been adapted to each unit’s individual features. Accordingly, since 2016, the Group has been working towards defining an objective internal model and analyzing all the changes which are needed to adapt accounting classifications and credit risk impairment estimation models in force in each unit to the previous definitions. The process was completed in 2017. Regarding the governance structure, the Group set up a regular committee to manage the project, and a task force which is responsible for its tasks, ensuring that the pertinent responsible teams take part in coordination with all geographical areas. Hence, the main divisions involved in the project at the highest level, and which are thus represented in the project governance bodies, are: Risks, Financial Accounting & Management Control and Technology and Operations. Internal Audit division was involved in the project, having kept regular meetings regarding the status of the project. The governance structure currently implemented at both corporate level and in each one of the units, complies with the requirements set out in the new standards both in IFRS 9, and in other related regulatory standards (e.g., EBA credit risk guidelines). Main project stages and milestones In relation to the entry into force of this new international standard, in its 2016 consolidated financial statements the Group reported the progress and main milestones achieved to that date regarding the implementation plan for its adoption. This report includes an update on this information included in the 2016 consolidated financial statements. The work undertaken by Santander Group includes an assessment of the financial instruments included in the classification and measurement requirements of IFRS 9 and the development of impairment methodology for calculating expected loss impairment provisions. The Group has drawn up the accounting policies and methodological framework for the implementation developments carried out by each local unit. These internal regulations have been approved by all relevant corporate bodies before the new standard comes into force. With regard to classification and measurement, since 2016 the Group has been carrying out an analysis of its stock of products, focusing mainly on those that could trigger a change in accounting methodology, due to the business model involved and failure to meet SPPI test requirements (solely payments of principal and interest). Additionally, using information from 2017, the Group has updated this analysis and reviewed any new products during the period, assessing both its asset management strategies (identifying the corresponding business model), and broadening the review of products in stock. The local units have now finished developing impairment models for all their portfolios. The implementation of these impairment methodologies has enabled the Group to assess the cause of impact in each portfolio, the impact of each material Group unit, and to consider the total impact at group level. The Group has started, in the second half of 2017, the parallel calculation of impairment provisions under IFRS 9 formally, without prejudice to the fact that a preliminary parallel calculation was already being made at consolidated level for monitoring, performance tracking and impact purposes. Based on the preliminary results obtained from the impairment provisions calculations, the Group has addressed the disclosure requirements of the EBA’s second QIS (Quantitative Impact Study). The governance process has been completed for the development, validation and approval of the model that started with a validation of the first models by the Corporate Internal Validation team and the Internal Validation units of the countries where these exist. Further, given the importance of the control environment in the processes, the corporate development of the governance model of the impairment provisions calculation process as well as aspects related to the classification of financial instruments has been completed. The proposed model includes a reference design of the controls to be implemented in the new developments made in the implementation of the new standard. Also, as part of the proposed government model, has defined a process of periodic review of the main elements including, among others, the following areas: - Business models defined in each Group unit. - Quantitative and qualitative criteria defined for significant increase in risk. - Macroeconomic scenario defined for impairment provisions calculation. - Model adequacy for impairment provisions calculation. - IFRS 15 Revenue from Contracts with Customers (effective for annual reporting periods beginning on or after January 1, 2018) - the new standard on the recognition of revenue from contracts with customers. It supersedes the following standards and interpretations currently in force: IAS 18, Revenue; IAS 11, Construction Contracts; IFRIC 13, Customer Loyalty Programs; IFRIC 15, Agreements for the Construction of Real Estate; IFRIC 18, Transfers of Assets from Customers; and SIC-31, Revenue-Barter Transactions Involving Advertising Services. Under IFRS 15, an entity recognizes revenue in accordance with the core principle of the standard by applying the following five steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations identified in the contract; and recognize revenue when as the entity satisfies a performance obligation. - Clarifications to IFRS 15 income coming from contracts with clients. The application of the aforementioned accounting Standard and its Clarifications will not have any material effects on the Group’s consolidated financial statements. - Modification to IFRS 4 "Insurance contracts" applying IFRS 9 "Financial Instruments" (effective for annual reporting periods beginning on or after January 1, 2018). The purpose of the amendment is to give all companies that issue insurance contracts the option to recognize in other comprehensive income, instead of profit or loss, the volatility that could arise when applying IFRS 9, for new contracts before the adoption of the insurance standard and give companies whose activities are mostly insurance-related an optional temporary exemption from the application of IFRS 9 until the year 2021. Entities that defer the application of IFRS 9 will continue to apply the existing norm of Financial Instruments IAS 39. The deferral of the aforementioned standard does not apply as the required conditions for this deferral are not met. - IFRS 16 Leasings substitutes IAS 17, IFRIC (International Financial Reporting Interpretation Committee) 4, SIC (Standard Interpretations Committee)-15 and SIC-27. It was adopted by the European Union on October 31, 2017 through the Regulation (EU) 2017/1986. The effective date affects the annual periods starting on of January 1, 2019. The Santander Group has not applied the possibility of early adoption. IFRS 16 establishes the principles for the recognition, valuation, presentation and breakdown of leases, with the aim of guaranteeing that both the lessee and the lessor provide relevant information that presents a true image of such operations. The standard foresees a single accounting model for the lessee, according to which the lessee must recognize the assets and liabilities related to all leases, unless lease term is 12 months or less or the value of the underlying asset is low. Lessors continue to classify leases into operating or financial leases, and the approach of IFRS 16 with respect to the lessor's accounting remains in essence like the former approach, foreseen in IAS 17. The standard includes guidance on a number of issues such as optional exemptions in its application, or the identification of a lease. Definition of leasing A contract is, or contains, a lease if it transfers the right to control the use of an identified asset for a period of time in exchange for a consideration. The control is transferred when the client has both the right to control the use of the identified asset and the right to obtain basically all the economic benefits derived from such use. Lessee’s accounting The lessee recognizes a right-of-use asset and a leasing liability. The right-of-use asset is initially valued at the amount of the leasing liability plus all initial direct costs incurred by the lessee. Once the lease has begun, the lessee values the right-of-use asset using a cost model (unless specific conditions apply), minus accumulated amortization. The leasing liability is initially valued at the present value of the payable installments over the term of the lease, discounted at a rate implicit in the lease, if it can be easily determined, the lessee will apply the incremental interest rate of the debt. Variable leasing payments that depend on an index or a rate are included in the initial valuation of the leasing liability, and are initially valued by applying the index or rate on the start date, while the remaining variable leasing payments are recognized in the income statement in the period in which the event or condition that triggers the payment takes place, unless the costs are included in the book value of another asset in accordance with another Standard. Lessor’s accounting Lessors classify each lease as operative or as financial. A lease is classified as financial if it transfers almost all the risks and benefits derived from the ownership of an underlying asset. All other leases will be classified as operating. The lessor recognizes the assets acquired under financial leasing as accounts receivable for an amount equivalent to the net investment in the lease at the time of start of the lease. Sale operations and subsequent leasing To determine whether the transfer of an asset is accounted for as a sale or not, the Bank will apply IFRS 15 requirements in order to determine if an obligation has been satisfied. If an asset’s transfer meets IFRS 15 requirements for being accounted for as a sale, the seller values the right-of-use asset in the proportion of the previous book value which refers to the retained right of use. Therefore, the seller only recognizes the amount of the benefit or loss related to the rights transferred to the buyer. Sale and subsequent lease operations prior to the effective date of the Standard will not have retroactive effect with respect to the benefit recognition at the beginning of those operations. Since alternative accounting treatments in the first application are allowed by the IFRS 16, the Group, from the point of view of the lessee, must take an accounting decision on the following options, which will influence the amount of the asset and liability to be recognized and, therefore, the financial ratios: - Option 1 consists of redoing comparative statements as if active lease agreements had always been applied to it (full retrospective application, following IAS 8). The difference between the right of use and the leasing liability is recorded against reserves at the beginning of 2019 financial year. - Option 2 does not recast comparative statements. In the case of leases which previously were operational, the liability as of January 1, 2019 is calculated by discounting the remaining future cash flows using the interest rate of the lessee's debt at the date of first application. The asset is valued as the liability (adjusted by any prepayment or accrual prior to the date of first application). Since there is no difference among the assets and liabilities, this option has no effect on equity, reflecting their impact as a higher cost (amortization and financial cost) throughout the lease’s life. In the case of leases that were previously financial, assets and liabilities recognized under IAS 17 are maintained. - Option 3 is similar to option 2 except for the asset being valued as of January 2019 as if IFRS 16 had been applied since the beginning of the contract (but discounting the cash flows at the interest rate of the first date of application). The asset is calculated at the beginning of January 1, 2019 and the amount remaining to be amortized is recorded. The liability is calculated as of January 2019 in the same way as option 2. The difference between the lease liability and the right to use is recognized against reserves as of January 2019. The Group is evaluating the effects derived from the application of IFRS 16. - Improvements to IFRS Cycle 2014-2016 – introduce lesser modifications than IFRS 12. Lastly, at the date of preparation of these consolidated financial statements, the following standards which effectively come into force after December 31, 2017 had not yet been adopted by the European |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting policies | |
Accounting policies | 2. Accounting policies The accounting policies applied in preparing the consolidated financial statements were as follows: a) Foreign currency transactions i. The Bank’s functional and presentation currency is the euro. Also, the presentation currency of the Group is the euro. ii. Foreign currency balances are translated to euros in two consecutive stages: - Translation of foreign currency to the functional currency (currency of the main economic environment in which the entity operates); and - Translation to euros of the balances held in the functional currencies of entities whose functional currency is not the euro. Translation of foreign currency to the functional currency Foreign currency transactions performed by consolidated entities (or entities accounted for using the equity method) not located in European Monetary Union (“EMU”) countries are initially recognized in their respective currencies. Monetary items in foreign currency are subsequently translated to their functional currencies using the closing rate. Furthermore: - Non-monetary items measured at historical cost are translated to the functional currency at the exchange rate at the date of acquisition. - Non-monetary items measured at fair value are translated at the exchange rate at the date when the fair value was determined. - Income and expenses are translated at the average exchange rates for the year for all the transactions performed during the year. When applying this criterion, the Group considers whether there have been significant changes in the exchange rates in the year which, in view of their materiality with respect to the consolidated financial statements taken as a whole, would make it necessary to use the exchange rates at the transaction date rather than the aforementioned average exchange rates. - The balances arising from non-hedging forward foreign currency/foreign currency and foreign currency/euro purchase and sale transactions are translated at the closing rates prevailing in the forward foreign currency market for the related maturity. Translation of functional currencies to euros The balances in the financial statements of consolidated entities (or entities accounted for using the equity method) whose functional currency is not the euro are translated to euros as follows: - Assets and liabilities, at the closing rates. - Income and expenses, at the average exchange rates for the year. - Equity items, at the historical exchange rates. iii. The exchange differences arising on the translation of foreign currency balances to the functional currency are generally recognized at their net amount under Exchange differences in the consolidated income statement, except for exchange differences arising on financial instruments at fair value through profit or loss, which are recognized 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 equity, which are recognized under Other comprehensive income--Items that may be reclassified to profit or loss--Exchange differences. The exchange differences arising on the translation to euros of the financial statements denominated in functional currencies other than the euro are recognized in Other comprehensive income--Items that may be reclassified to profit or loss--Exchange differences in the consolidated balance sheet, whereas those arising on the translation to euros of the financial statements of entities accounted for using the equity method are recognized in equity under Other comprehensive income--Items that may be reclassified to profit or loss and Items not reclassified to profit or loss--Other recognized income and expense of investments in subsidiaries, joint ventures and associates, until the related item is derecognized, at which time they are recognized in profit or loss. Exchange differences arising on actuarial gains or losses when converting to euros the financial statements denominated in the functional currencies of entities whose functional currency is different from the euro are recognized under equity--Other comprehensive income--Items not reclassified to profit or loss--Actuarial gains or (-) losses on defined benefit pension plans. iv. At December 31, 2017, 2016 and 2015 none of the functional currencies of the consolidated entities and associates located abroad related to hyperinflationary economies as defined by International Financial Reporting Standards as adopted by the European Union. Accordingly, at the end of the last three reporting periods it was not necessary to adjust the financial statements of any of the consolidated entities or associates to correct for the effect of inflation. v. The Group hedges a portion of its long-term foreign currency positions using foreign exchange derivative financial instruments (see Note 36). Also, the Group manages foreign currency risk dynamically by hedging its short-term position (with a potential impact on profit or loss) in order to limit the impact of currency depreciations while optimizing the cost of financing the hedges. The following tables show the sensitivity of consolidated profit and consolidated equity to the changes in the foreign currency positions resulting from all the Group’s foreign currency items caused by 1% variations in the various foreign currencies in which the Group has material balances. The estimated effect on the consolidated equity attributable to the Group and on consolidated profit of a 1% appreciation of the euro against the corresponding currency is as follows: Millions of euros Effect on consolidated equity Effect on consolidated profit Currency 2017 2016 2015 2017 2016 2015 U.S. dollar (157.9) (187.1) (167.2) (1.4) (4.5) (8.7) Chilean peso (29.0) (27.9) (23.7) (1.8) (4.2) (5.0) Pound sterling (176.6) (184.9) (194.2) (3.1) (10.0) (13.0) Mexican peso (16.0) (16.2) (19.7) (1.2) (5.4) (5.9) Brazilian real (93.1) (122.3) (93.1) (6.5) (6.3) (13.6) Polish zloty (34.5) (31.5) (32.8) (1.5) (3.3) (3.9) Similarly, the estimated effect on the Group’s consolidated equity and on consolidated profit of a 1% depreciation of the euro against the corresponding currency is as follows: Millions of euros Effect on consolidated equity Effect on consolidated profit Currency 2017 2016 2015 2017 2016 2015 U.S. dollar 161.1 190.8 170.5 1.5 4.5 8.8 Chilean peso 29.6 28.4 24.1 1.8 4.3 5.1 Pound sterling 180.2 188.7 198.2 3.2 10.2 13.2 Mexican peso 16.3 16.5 20.1 1.2 5.5 6.0 Brazilian real 95.0 124.7 94.9 6.6 6.5 13.8 Polish zloty 35.2 32.1 33.4 1.5 3.3 4.0 The foregoing data were obtained as follows: a. Effect on consolidated equity: in accordance with the accounting policy detailed in Note 2.a.iii, the exchange differences arising on the translation to euros of the financial statements in the functional currencies of the Group entities whose functional currency is not the euro are recognized in consolidated equity. The possible effect that a change in the exchange rates of the related currency would have on the Group’s consolidated equity was therefore determined by applying the aforementioned change to the net value of each unit’s assets and liabilities -including, where appropriate, the related goodwill- and by taking into consideration the offsetting effect of the hedges of net investments in foreign operations. b. Effect on consolidated profit: the effect was determined by applying the fluctuations in the average exchange rates used for the year, as indicated in Note 2.a.ii, to translate to euros the income and expenses of the consolidated entities whose functional currency is not the euro, taking into consideration, where appropriate, the offsetting effect of the various hedging transactions in place. The estimates used to obtain the foregoing data were performed considering the effects of the exchange rate fluctuations in isolation from the effect of the performance of other variables whose changes would affect equity and profit or loss, such as variations in the interest rates of the reference currencies or other market factors. Accordingly, all variables other than the exchange rate fluctuations were kept constant with respect to their positions at December 31, 2017, 2016 and 2015. b) i. Subsidiaries are defined as entities over which the Bank has the capacity to exercise control. The Bank controls an entity when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of the subsidiaries are fully consolidated with those of the Bank. Accordingly, all balances and effects of the transactions between consolidated companies are eliminated on consolidation. On acquisition of control of a subsidiary, its assets, liabilities and contingent liabilities are recognized at their acquisition-date fair values. Any positive differences between the acquisition cost and the fair values of the identifiable net assets acquired are recognized as goodwill (See Note 17). Negative differences are recognized in profit or loss on the date of acquisition. Additionally, the share of third parties of the Group’s equity is presented under Non-controlling interests in the consolidated balance sheet (See Note 28). Their share of the profit for the year is presented under Profit attributable to non-controlling interests in the consolidated income statement. 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. At December 31, 2017 the Group controlled the following companies in which it held an ownership interest of less than 50% of the share capital, (i) Luri 1, S.A. and (ii) Luri 2, S.A, also the structured consolidated entities. The percentage ownership interests in the aforementioned companies were 31% and 30%, respectively (See Appendix I). Although the Group holds less than half the voting power, it manages and, as a result, exercises control over these entities. The company object of the first two entities is the acquisition of real estate and other general operations relating thereto, including rental, and the purchase and sale of properties. The impact of the consolidation of these companies on the Group’s consolidated financial statements is immaterial. The Appendices contain significant information on the subsidiaries. ii. Joint ventures are deemed to be entities that are not subsidiaries but which are jointly controlled by two or more unrelated entities. This is evidenced by contractual arrangements whereby two or more parties have interests in entities so that decisions about the relevant activities require the unanimous consent of all the parties sharing control. In the consolidated financial statements, investments in joint ventures are accounted for using the equity method, i.e. at the Group’s share of net assets of the investee, after taking into account the dividends received therefrom and other equity eliminations. The profits and losses resulting from transactions with a joint venture are eliminated to the extent of the Group’s interest therein. The Appendices contain significant information on the joint ventures. iii. Associates are entities over which the Bank is in a position to exercise significant influence, but not control or joint control. It is presumed that the Bank exercises significant influence if it holds 20% or more of the voting power of the investee. In the consolidated financial statements, investments in associates are accounted for using the equity method, i.e. at the Group’s share of net assets of the investee, after taking into account the dividends received therefrom and other equity eliminations. The profits and losses resulting from transactions with an associate are eliminated to the extent of the Group’s interest in the associate. There are certain investments in entities which, although the Group owns 20% or more of their voting power, are not considered to be associates because the Group is not in a position to exercise significant influence over them. These investments are not significant for the Group and are recognized under Financial assets available-for-sale. The Appendices contain significant information on the associates. iv. When the Group 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 Group 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. Specifically, for those entities to which this policy applies (mainly investment funds and pension funds), the Group analyses the following factors: - Percentage of ownership held by the Group; 20% is established as the general threshold. - Identification of the fund manager, and verification as to whether it is a company controlled by the Group since this could affect the Group’s ability to direct the relevant activities. - Existence of agreements between investors that might require decisions to be taken jointly by the investors, rather than by the fund manager. - Existence of currently exercisable removal rights (possibility of removing the manager from his position), since the existence of such rights might limit the manager’s power over the fund, and it may be concluded that the manager is acting as an agent of the investors. - Analysis of the fund manager’s remuneration regime, taking into consideration that a remuneration regime that is proportionate to the service rendered does not, generally, create exposure of such importance as to indicate that the manager is acting as the principal. Conversely, if the remuneration regime is not proportionate to the service rendered, this might give rise to an exposure that would lead the Group to a different conclusion. These structured entities also include the securitization special purpose vehicles (“SPV”), which are consolidated in the case of the SPVs over which, being exposed to variable yield, it is considered that the Group continues to exercise control. The exposure associated with unconsolidated structured entities are not material with respect to the Group’s consolidated financial statements. v. A business combination is the bringing together of two or more separate entities or economic units into one single entity or group of entities. Business combinations whereby the Group obtains control over an entity are recognized for accounting purposes as follows: - The Group measures the cost of the business combination, which is normally the consideration transferred, defined as the acquisition-date fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity instruments issued, if any, by the acquirer. In cases where the amount of the consideration to be transferred has not been definitively established at the acquisition date, but rather depends on future events, any contingent consideration is recognized as part of the consideration transferred and measured at its acquisition-date fair value. Moreover, acquisition-related costs do not for these purposes form part of the cost of the business combination. - The fair values of the assets, liabilities and contingent liabilities of the acquired entity or business, including any intangible assets which might not have been recognized by the acquiree, are estimated and recognized in the consolidated balance sheet; the Group also estimates the amount of any non-controlling interests and the fair value of the previously held equity interest in the acquiree. - Any positive difference between the aforementioned items is recognized as discussed in Note 2.m. Any negative difference is recognized under negative goodwill recognized in the consolidated income statement. Goodwill is only measured and recognized once, when control of a business is obtained. vi. Acquisitions and disposals not giving rise to a change in control are recognized as equity transactions, and no gain or loss is recognized in the income statement and the initially recognized goodwill is not remeasured. The difference between the consideration transferred or received and the decrease or increase in non-controlling interests, respectively, is recognized in reserves. Similarly, when control over a subsidiary is lost, the assets, liabilities and non-controlling interests and any other items recognized in Other Comprehensive income of that company are derecognized from the consolidated balance sheet, and the fair value of the consideration received and of any remaining equity interest is recognized. The difference between these amounts is recognized in profit or loss. vii. Note 3 provides information on the most significant acquisitions and disposals in the last three years. c) i. 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. 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 whose value changes in response to the change in an observable market variable (such as an interest rate, foreign exchange rate, financial instrument price, market index or credit rating), whose initial investment is very small compared with other financial instruments with a similar response to changes in market factors, and which is generally settled at a future date. Hybrid financial instruments are contracts that simultaneously include a non-derivative host contract together with a 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 derivative. Compound financial instruments are contracts that simultaneously create for their issuer a financial liability and an own equity instrument (such as convertible bonds, which entitle their holders to convert them into equity instruments of the issuer). The preference shares contingently convertible into ordinary shares eligible as Additional Tier 1 capital (“CCPSs”) -perpetual preference shares, which may be repurchased by the issuer in certain circumstances, the interest on which is discretionary, and would convert into a variable number of newly issued ordinary shares if the capital ratio of the Bank or its consolidated group falls below a given percentage (trigger event), as those two terms are defined in the related issue prospectuses- are recognized for accounting purposes by the Group as compound instruments. The liability component reflects the issuer’s obligation to deliver a variable number of shares and the equity component reflects the issuer’s discretion in relation to the payment of the related coupons. In order to effect the initial allocation, the Group estimates the fair value of the liability as the amount that would have to be delivered if the trigger event were to occur immediately and, accordingly, the equity component, calculated as the residual amount, is zero. In view of the aforementioned discretionary nature of the payment of the coupons, they are deducted directly from equity. Capital perpetual preference shares (“CCPSs”), with the possibility of purchase by the issuer in certain circumstances, whose remuneration is discretionary, and which will be amortized permanently, totally or partially, in the event that the Bank or its consolidated group submits a capital ratio lesser than a certain percentage (trigger event), as defined in the corresponding prospectuses, are accounted for by the Group as equity instruments. The following transactions are not treated for accounting purposes as financial instruments: - Investments in associates and joint ventures (see Note 13). - Rights and obligations under employee benefit plans (see Note 25). - Rights and obligations under insurance contracts (see Note 15). - Contracts and obligations relating to employee remuneration based on own equity instruments (see Note 34). ii. 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, cash balances at Central Banks and other deposits on demand, Changes in the fair value of hedged items in portfolio hedges of interest rate risk (asset side), Hedging derivatives and Investments, which are reported separately. Financial assets are included for measurement purposes in one of the following categories: - Financial assets held for trading (at fair value through profit or loss): This category includes financial assets acquired for the purpose of generating a profit in the near term from fluctuations in their prices and financial derivatives that are not designated as hedging instruments. - Financial assets designated at fair value through profit or loss: This category includes hybrid financial assets not held for trading that are measured entirely at fair value and financial assets not held for trading that are included in this category in order to provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases, or because a group of financial assets 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 Group’s key management personnel. Financial assets may only be included in this category on the date they are acquired or originated. - Financial assets available-for-sale: This category includes debt instruments not classified as Held-to-maturity investments, Loans and receivables or Financial assets at fair value through profit or loss, and equity instruments issued by entities other than subsidiaries, associates and joint ventures, provided that such instruments have not been classified as Financial assets held for trading or as Financial assets designated at fair value through profit or loss. - Loans and receivables: This category includes the investment arising from ordinary lending activities, such as the cash amounts of loans drawn down and not yet repaid by customers or the deposits placed with other institutions, whatever the legal instrument, unquoted debt securities and receivables from the purchasers of goods, or the users of services, constituting part of the Group’s business. The consolidated entities generally intend to hold the loans and credits granted by them until their final maturity and, therefore, they are presented in the consolidated balance sheet at their amortized cost (which includes any reductions required to reflect the estimated losses on their recovery). - Investments held-to-maturity: This category includes debt instruments with fixed maturity and with fixed or determinable payments, for which the Group has both the intention and proven ability to hold to maturity. iii. Financial assets are classified by nature into the following items in the consolidated balance sheet: - Cash, cash balances at Central Banks and other deposits on demand: Cash balances and balances receivable on demand relating to deposits with central banks and credit institutions. - Loans and advances: Includes the debit balances of all credit and loans granted by the Group, other than those represented by securities, as well as finance lease receivables and other debit balances of a financial nature in favor of the Group, such as cheques drawn on credit institutions, balances receivable from clearing houses and settlement agencies for transactions on the stock exchange and organized markets, bonds given in cash, capital calls, fees and commissions receivable for financial guarantees and debit balances arising from transactions not originating in banking transactions and services, such as the collection of rentals and similar items. They are classified, on the basis of the institutional sector to which the debtor belongs, into: - Central Banks: Credit of any nature, including deposits and money market operations received from the Bank of Spain or other central banks. - Credit institutions: Credit of any nature, including deposits and money market operations, in the name of credit institutions. - Customers: Includes the remaining credit, including money market operations through central counterparties. - Debt instruments: Bonds and other securities that represent a debt for their issuer, that generate an interest return, and that are in the form of certificates or book entries. - 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, joint ventures or associates. Investment fund units are included in this item. - Derivatives: Includes the fair value in favor of the Group of derivatives which do not form part of hedge accounting, including embedded derivatives separated from hybrid financial instruments. - Changes in the fair value of hedged items in portfolio hedges of interest rate risk: This item is the balancing entry for the amounts credited to the consolidated income statement in respect of the measurement of the portfolios of financial instruments which are effectively hedged against interest rate risk through fair value hedging derivatives. - Hedging derivatives: Includes the fair value in favor of the Group of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. iv. Financial liabilities are initially classified into the various categories used for management and measurement purposes, unless they have to be presented as Liabilities associated with non-current assets held for sale or they relate to Hedging derivatives or Changes in the fair value of hedged items in portfolio hedges of interest rate risk (liability side), which are reported separately. Financial liabilities are included for measurement purposes in one of the following categories: - Financial liabilities held for trading (at fair value through profit or loss): This category includes 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 ("reverse repos") or borrowed (short positions). - Financial liabilities designated at fair value through profit or loss: Financial liabilities are included in this category when they provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or 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 Group’s key management personnel. Liabilities may only be included in this category on the date when they are incurred or originated. - 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 carried on by financial institutions. v. Financial liabilities are classified by nature into the following items in the consolidated balance sheet: - Deposits: Includes all repayable balances received in cash by the Group, other than those instrumented as marketable securities and those having the substance of subordinated liabilities (amount of the loans received, which for credit priority purposes are after common creditors), except for the debt instruments. This item also includes cash bonds and cash consignments received the amount of which may be invested without restriction. Deposits are classified on the basis of the creditor’s institutional sector into: - Central banks: Deposits of any nature, including credit received and money market operations received from the Bank of Spain or other central banks. - Credit institutions: Deposits of any nature, including credit received and money market operations in the name of credit institutions. - Customer: Includes the remaining deposits, including money market operations through central counterparties. - Marketable debt securities: Includes the amount of bonds and other debt represented by marketable securities, other than those having the substance of subordinated liabilities (amount of the loans received, which for credit priority purposes are after common creditors, and includes the amount of the financial instruments issued by the Group which, having the legal nature of capital, do not meet the requirements to qualify as equity, such as certain preferred shares issued). This item includes the component that has the consideration of financial liability of the securities issued that are compound financial instruments. - Derivatives: Includes the fair value, with a negative balance for the Group, of derivatives, including embedded derivatives separated from the host contract, which do not form part of hedge accounting. - Short positions: includes the amount of financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements or borrowed. - Other financial liabilities: Includes the amount of payment obligations having the nature of financial liabilities not included in other items, and liabilities under financial guarantee contracts, unless they have been classified as non-performing. - Changes in the fair value of hedged items in portfolio hedges of interest rate risk: This item is the balancing entry for the amounts charged to the consolidated income statement in respect of the measurement of the portfolios of financial instruments which are effectively hedged against interest rate risk through fair value hedging derivatives. - Hedging derivatives: Includes the fair value of the Group’s liability in respect of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. d) 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. Financial instruments not measured at fair value through profit or loss are adjusted by the transaction costs. Financial assets and liabilities are subsequently measured at each year-end as follows: i. Financial assets are measured at fair value, without deducting any transaction costs that may be incurred on their disposal, except for loans and receivables, investments held-to-maturity, unquoted equity instruments which cannot be reliably measured and financial derivatives that have those equity instruments as their underlying and are settled by delivery of those instruments. 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, transparent and deep market (quoted price or market price). At December 31, 2017 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. If there is no mar |
Santander Group
Santander Group | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about business combination [abstract] | |
Santander Group | 3. Santander Group a) The growth of the Group in the last decades has led the Bank to also act, in practice, as a holding entity of the shares of the various companies in its Group, and its results are becoming progressively less representative of the performance and earnings of the Group. Therefore, each year the Bank determines the amount of the dividends to be distributed to its shareholders on the basis of the consolidated net profit, while maintaining the Group’s traditionally high level of capitalization and taking into account that the transactions of the Bank and of the rest of the Group are managed on a consolidated basis (notwithstanding the allocation to each company of the related net worth effect). At the international level, the various banks and other subsidiaries, joint ventures and associates of the Group are integrated in a corporate structure comprising various holding companies which are the ultimate shareholders of the banks and subsidiaries abroad. The purpose of this structure, all of which is controlled by the Bank, is to optimize the international organization from the strategic, economic, financial and tax standpoints, since it makes it possible to define the most appropriate units to be entrusted with acquiring, selling or holding stakes in other international entities, the most appropriate financing method for these transactions and the most appropriate means of remitting the profits obtained by the Group’s various operating units to Spain. The Appendices provide relevant data on the consolidated Group companies and on the companies accounted for using the equity method. b) Following is a summary of the main acquisitions and disposals of ownership interests in the share capital of other entities and other significant corporate transactions performed by the Group in the last three years: i. Acquisition of Banco Popular Español, S.A. On June 7, 2017 As part of the execution of the resolution: - All the shares of Banco Popular outstanding at the closing of market on June 7, 2017 and all the shares resulting from the conversion of the regulatory capital instruments Additional Tier 1 issued by Banco Popular have been converted into undisposed reserves. - All the regulatory capital instruments Tier 2 issued by Banco Popular have been converted into newly issued shares of Banco Popular, all of which have been acquired for a total consideration of one euro by the Group. The transaction has been approved by all the applicable regulatory and antitrust authorities in the territories where Banco Popular operated, except for the pending approval for the acquisition of certain affiliates of Banco Popular located in United States. In accordance with IFRS 3, the Group has measured the identifiable assets acquired and liabilities assumed at fair value. The fair value is provisional, according to the applicable regulations, due to the period from the acquisition date and its complex valuation. The detail of this provisional fair value of the identifiable assets acquired and liabilities assumed at the business combination date is as follows: Millions As of June 7, 2017 of euros Cash and balances with central banks 1,861 Financial assets available-for-sale 18,974 Deposits from credit institutions 2,971 Loans and receivables (*) 82,057 Investments 1,815 Intangible assets (*) 133 Tax assets (*) 3,945 Non-current assets held for sale (*) 6,531 Other assets 6,259 Total assets 124,546 Deposits from central banks 28,845 Deposits from credit institutions 14,094 Customer deposits 62,270 Marketable debt securities and other financial liabilities 12,919 Provisions (***) 1,816 Other liabilities 4,850 Total liabilities (**) 124,794 Net assets (248) Purchase consideration — Goodwill 248 (*) - Loans and receivables: In the estimation of their fair value, impairment have been considered for an approximate amount of €3,239 million, considering, among others, the sale process carried out by the Bank. - Foreclosed assets: the valuation, considering the sale process carried out by the company, has meant a reduction in the value of €3,806 million, approximately. - Intangible assets: Includes value reductions amounting to approximately of €2,469 million, mainly recorded under the “Intangible assets - goodwill”. - Deferred tax assets: mainly corresponds to the reduction of the value of negative tax bases and deductions for an approximate amount of €1,711 million. (**) (***) As the fair value of the identifiable net assets acquired was lower than the total consideration paid, goodwill arises on the acquisition. This goodwill is attributable to the commercial business in Spain. The provisional fair value adjustments were based, among others, on different methodologies and valuation processes that are commonly accepted in the market for credit and real estate portfolios as well as for financial investments. In compliance with the accounting standards in force and, in accordance with paragraph 45 of IFRS 3 “Business Combinations”, the acquirer entity must comply with the period of one year from the acquisition date in order to perform the business combination and the measurement of the fair values of the assets and liabilities of the acquired entity. Accordingly, measurements conducted by the Group are the best available estimation on the date of the preparation of the present consolidated financial statements and therefore, they are provisional and cannot be considered as definitive. However, the Group doesn’t expect significant changes on such amount until the end of the term the Group has to consider the valuation as definitive. Likewise from the acquisition date until December 31, 2017 there have not been any significant changes on the fair value of the acquired assets and assumed liabilities in this business combination. The amount contributed by this business to the group net profit from the acquisition and the impact to the net profit obtained by the group resulting from the operation ii. Sale agreement of Banco Popular’s real estate business On August 8, 2017, we announced that Banco Popular had executed the agreements with the Blackstone Fund for the acquisition by the fund of 51% of, and hence the assignment of control over, part of Banco Popular’s real estate business (the “Business”), which comprises a portfolio of foreclosed properties, real estate companies, non-performing loans relating to the real estate sector and other assets related to these activities owned by Banco Popular and its affiliates (including deferred tax assets allocated to specific real estate companies which are part of the transferred portfolio) registeredd on certain specified dates (March 31, 2017 or April 30, 2017). The agreements were entered following receipt of the European Commission’s unconditional authorization of the acquisition of Banco Popular by Banco Santander for the purposes of competition law. The transaction closed on March 22, 2018 following receipt of the required regulatory authorizations and other usual conditions in this type of transactions. Closing of the transaction involves the creation of a series of companies, in which Blackstone has a 51% interest and Banco Popular the remaining 49%, to which Banco Popular and some of its affiliates transferred the Business and 100% of the share capital of Aliseda Servicios de Gestión Inmobiliaria, S.L. (“Aliseda”). The valuation attributed to the assets of the Business (real estate assets, non-performing loans and real estate companies, not including Aliseda) was approximately €10 billion. From closing, Blackstone has undertaken the management of the Business. As of December 31, 2017, in accordance with IFRS 5, the assets related to this transaction have been non-current assets held for sale. The results generated by these assets during the year 2017 do not have a material impact on the Group’s income statement. The operation involves the derecognition of these assets from the Group’s balance sheet, without material impact on the income statement. iii. Purchase of the shares to DDFS LLC in Santander Consumer USA Holdings Inc. (SCUSA) On July 2, 2015, the Group announced that it had reached an agreement to purchase the 9.65% ownership interest held by DDFS LLC in SCUSA. On November 15, 2017, after having agreed on some modifications to the original agreement and having obtained the required regulatory authorizations, the Group completed the acquisition of the aforementioned 9.65% of SCUSA shares for a total sum of US$ 942 million (€800 million), which have caused a decrease of €492 million in the non-controlling interests balance and another reduction to reserves of €307 million. After this operation, the participation of the Group in SCUSA increases to approximately 68.12%. iv. Agreement with Santander Asset Management a) Acquisition 50% Santander Asset Management On November 16, 2016, after the agreement with Unicredit Group on July 27, 2016 to integrate Santander Asset Management and Pioneer Investments was abandoned, the Group announced that it had reached an agreement with Warburg Pincus (“WP”) and General Atlantic (“GA”) under which Santander will acquire 50% of Santander Asset Management. Santander Group disbursed a total amount of €545 million and assumed financing of €439 million, with the business combination having generated a goodwill of €1,173 million and €320 million of “intangible assets - contracts and relationships with customers” identified in the preliminary purchase price allocation, without other value adjustments to net assets of the business. Likewise, the market valuation of the previous participation held has not had an impact on the Group's income statement. Considering that the main activity of the business is asset management, the main part of its activity are recorded off balance sheet. The main net assets acquired, in addition to the aforementioned intangible assets, are net deposits in credit institutions (€181 million) and net tax assets (€176 million). Given their nature, the fair value of these assets and liabilities do not differ from the book value recorded. In compliance with the current applicable regulations and, in accordance with the provisions of paragraph 45 of the IFRS 3 “Business Combinations”, the acquirer has one year from the date of acquisition to account for this business combination and to state the assets and liabilities of the entity acquired at their fair values. In this respect, the measurements made by the Group represent the best estimate available as at the date of preparation of the consolidated annual financial statements which should be considered provisional and not still definite. Nevertheless, the Group does not expect significant changes in the mentioned amount until the valuation must be deemed as definite. The amount that the business contributed to the revenue and profit attributable to the Group, from the acquisition date and considering the acquisition as if it had taken place on January 1, 2017 is not material. b) Sale participation Allfunds Bank As part of the transaction, which consists in the acquisition of 50% of Santander Asset management that was not owned by Santander Group, Santander, WP and GA agreed to explore different alternatives for the sale of its stake in Allfunds Bank, S.A. ("Allfunds Bank"), including a possible sale or a public offering. On March 7, 2017, we announced that together with our partners in Allfunds Bank we had reached an agreement for the sale of 100% of Allfunds Bank to funds affiliated with Hellman & Friedman, a leading private equity investor, and GIC, Singapore’s sovereign wealth fund. On November 21, 2017 the Group announced the closing of the sale by the Bank and its partners of 100% of Allfunds Bank's capital, obtaining an amount of €501 million from the sale of its 25% stake in Allfunds Bank, resulting in gains net of tax of €297 million, which were recognized as gains or losses on disposal of non-financial assets and investments, net, within the statement of profit or loss. v. Agreement with Banque PSA Finance The Group, through its subsidiary Santander Consumer Finance, S.A., and Banque PSA Finance, the vehicle financing unit of the PSA Peugeot Citroën Group, entered into an agreement in 2014 for the operation of the vehicle and insurance financing business in twelve European countries. Pursuant to the terms of the agreement, the Group will finance this business, under certain circumstances and conditions, from the date on which the transaction is completed. In January 2015 the related regulatory authorizations to commence activities in France and the United Kingdom were obtained and, accordingly, on February 2 and 3, 2015 the Group acquired 50% of Société Financière de Banque – SOFIB (actually PSA Banque France) and PSA Finance UK Limited for €462 million and €148 million, respectively. On May 1, 2015, PSA Insurance Europe Limited and PSA Life Insurance Europe Limited (both insurance companies with registered office in Malta) were incorporated, in which the Group contributed 50% of the share capital, amounting to €23 million. On August 3 the Group acquired a full ownership interest in PSA Gestão - Comércio E Aluguer de Veiculos, S.A. (actually Santander Consumer Services, S.A. and a company with registered office in Portugal) and the loan portfolio of the Portuguese branch of Banque PSA Finance for €10 million and €25 million, respectively. On October 1, PSA Financial Services Spain, E.F.C., S.A. (a company with registered office in Spain) was incorporated, in which the Group contributed €181 million (50% of the share capital). (This company owns the 100% of the share capital of PSA Finanse Suisse which is domiciled in Switzerland). During 2016, the agreement obtained the necessary authorizations, by the regulators, to start activities in the rest of the countries covered by the framework agreement (Italy, the Netherlands, Austria, Belgium, Germany, Brazil and Poland). The Group’s disbursement during 2016 amounted to €464 million to reach a 50% stake in the capital of each of the structures created in each geography, with the exception of PSA finance Arrendamento Mercantil SA (actually Santander Finance Arrendamiento Mercantil, S.A.) where 100% of capital is acquired. During 2016 the new businesses acquired have contributed €79 million to the Group’s profit. Had the business combination taken place on January 1, 2016, the profit contributed to the Group in 2016 would have been approximately €118 million. vi. Carfinco Financial Group On September 16, 2014, the Bank announced that it had reached an agreement to purchase the listed Canadian company Carfinco Financial Group Inc. (“Carfinco”), a company specializing in vehicle financing. In order to acquire Carfinco, Santander Holding Canada Inc. (actually Carfinco Financial Group Inc.) was incorporated, a company 96.4% owned by Banco Santander and 3.6% owned by certain members of the former management group. On March 6, 2015, all of Carfinco was acquired through the aforementioned holding company for €209 million, giving rise to goodwill of €162 million. In 2015 this business contributed €6 million to the Group’s profit. Had the business combination taken place on January 1, 2015, the profit contributed to the Group in 2015 would have been approximately €7 million. vii. Metrovacesa agreement - Merlin On June 21, 2016, Banco Santander hereby reached an agreement with Merlin Properties, SOCIMI, S.A., together with the other shareholders of Metrovacesa, S.A., for the integration in Merlin group, following the total spin-off of Metrovacesa, S.A., of Metrovacesa, S.A. property rental asset business in Merlin Properties, SOCIMI, S.A. and Metrovacesa, S.A. residential rental business in Metrovacesa, S.A. current subsidiary, Testa Residencial SOCIMI, S.A. (before, Testa Residencial, S.L.) The other assets of Metrovacesa, S.A. not integrated in Merlin group as a result of the integration, consisting of a residual group of land assets for development and subsequent lease, will be transferred to a newly created company wholly owned by the current shareholders of Metrovacesa, S.A. Regarding the General Meeting of shareholders of Merlin Properties, SOCIMI, S.A. and Metrovacesa, S.A. on September 15, 2016 where not only the operation was not approved. Subsequently, on October 20, 2016, the deed of total division of Metrovacesa, S.A. was granted in favor of the mentioned companies, and such deed was filed in the Commercial Register on October 26, 2016. As a result of the integration, Santander Group has increased its participation to 21.95% of the equity capital of Merlin Properties, SOCIMI, S.A., 46.21% of direct participation in the equity capital of Testa Residential, SOCIMI, S.A. and 70.27% in Metrovacesa Promoción y Arrendamiento, S.A. The main impacts on the Consolidated Group’s balance of this division have been; decrease of €3,800 million in real estate investment (see Note 16), decrease of €621 million under minority interests (see Note 28) and an increase in the heading of investments in joint ventures and associates participation of the businesses received in the associates Merlín Properties and Testa Residencial, of EUR: 1,168 and 307 million, respectively. (See Note 13.a). viii. Banco Internacional do Funchal (Banif) On December 21, 2015, the Group announced that the Bank of Portugal, as the ruling authority, decided to award Banco Santander Totta, S.A., the Portuguese subsidiary of Banco Santander, the commercial business of BANIF- Banco Internacional do Funchal, S.A. and, accordingly, the businesses and branches of this entity became part of the Group. The transaction was performed through the transfer of a substantial portion (commercial banking business) of the assets and liabilities of BANIF- Banco Internacional do Funchal, S.A. for which the Group paid €150 million. The detail of the fair values of the identifiable assets acquired and liabilities assumed at the business combination date is as follows: Millions of euros Cash and balances with central banks 2,510 Loans and advances to credit institutions 424 Debt instruments 1,824 Loans and advances to customers 5,320 Other assets 218 Total assets 10,296 Deposits from central banks 2,110 Deposits from credit institutions 1,052 Customer deposits 4,430 Marketable debt securities 1,697 Other liabilities 574 Total liabilities 9,863 Net asset value 433 Consideration paid 150 Negative Goodwill on the acquisition 283 Since the acquisition took place by the end of December 2015, these businesses did not contribute materially to the Group’s profit for the year ended December 31, 2015. ix. Acquisition of the retail banking and private banking business of Deutsche Bank Polska, S.A. On December 14, 2017, the Group announced that its subsidiary Bank Zachodni WBK S.A., together with Banco Santander, S.A., had reached an agreement with Deutsche Bank, A.G. for the acquisition of the retail banking and private banking business of Deutsche Bank Polska, S.A., excluding the portfolio of mortgages in foreign currency, and including the acquisition of shares of DB Securities, S.A. (Poland), for an estimated amount of €305 million that will be paid in cash and shares of Bank Zachodni WBK S.A. of new issuance. The transaction, which is subject to obtaining the corresponding regulatory authorizations and its approval by the General Shareholders' Meetings of Bank Zachodni WBK S.A. and Deutsche Bank Polska, S.A., will not have a significant impact on the CET1 fully loaded capital of the Group. c) According to current Spanish regulation, Santander has operations in 4 off-shore territories: Jersey, Guernsey, Isle of Man and Cayman Islands. These four jurisdictions comply with OECD standards in terms of transparency and exchange of information for tax purposes. Santander operates 3 subsidiaries and 4 branches in off-shore territories: these are governed by the tax regimes of those territories. Santander also has 4 subsidiaries in off-shore territories which are tax resident in the UK, where they pay tax. The Group has no presence in any of the 9 territories included in the European Union’s current blacklist, neither in non-cooperative territories for tax purposes as defined by the OECD in July 2017. I) Subsidiaries in off-shore territories. At the reporting date, the Group has 3 subsidiaries resident in off-shore territories, two in Jersey (Whitewick Limited (inactive company) and Abbey National International Limited), and one in the Isle of Man, ALIL Services Limited. These subsidiaries contributed a profit of approximately €2.7 million to the Group’s consolidated profit in 2017. During the financial year 2017 one subsidiary resident in the Isle of Man has been liquidated. II) Off-shore branches. Also, after the liquidation in 2017 of a branch in the Cayman Islands, the Group has 4 off-shore branches: 2 in the Cayman Islands, 1 in the Isle of Man and 1 in Jersey. These branches report to, consolidate their balance sheets and income statements and are taxed with, their respective foreign headquarters (Cayman Islands) or in the territories where they are located (Jersey and Isle of Man). The aforementioned entities have a total of 138 employees as of December 2017. III) Subsidiaries in off-shore territories that are tax resident in the UK. The Group also has 4 subsidiaries domiciled in off-shore territories that are not considered to be off-shore entities since they are tax residents in UK and, therefore, subject to UK tax law during the period and operate exclusively from the UK (one of these subsidiaries is expected to be liquidated in 2018). IV) Other off-shore investments. The Group manages from Brazil a segregated portfolio company called Santander Brasil Global Investment Fund SPC in the Cayman Islands, and manages from the United Kingdom a protected cell company in Guernsey called Guaranteed Investment Products 1 PCC Limited. The Group also has, directly or indirectly, few financial investments located in tax havens including Olivant Limited in Guernsey, entity whose liquidation or sale is expected to be carried out soon. V) Impact of forthcoming changes to Spain’s tax law. Spain signed Information Exchange Agreements with Jersey, Guernsey and the Isle of Man in 2015, that are expected to enter into force in 2018. In addition, it is expected to sign in the future with the Cayman Islands. In principle, all these territories would no longer have the status of tax havens for the purposes of Spanish legislation at the time these agreements enter into force, and as long as it is expressly indicated. It is expected that during 2018 the Spanish Government will update the list of countries and territories that qualify as a tax haven, after the publication by the OECD and the European Union of their lists of non-cooperative jurisdictions that are discussed below, aligning to them. VI) OECD. The Group has no presence in non-cooperative territories for tax purposes as defined by the OECD in July 2017. In this sense it should be noted that Jersey, Guernsey, Isle of Man and Cayman Islands, comply with OECD standards in terms of transparency and exchange of information for tax purposes, since: · The first and/or second round of evaluations of the Global Forum on Transparency and Exchange of Information for Tax Purposes have been successfully passed in terms of their level of fiscal transparency and the effective application of the exchange of information of request (EOIR) standard. · They have committed to implement the automatic exchange of information (AEOI) standard and its Common Reporting Standard (CRS) exchange mechanism, with the first exchange of information expected in 2017. · They have also adhered to the Convention on Mutual Administrative Assistance in Tax Matters of the OECD and the Council of Europe, amended by the 2010 Protocol. VII) The European Union. On 5 December, 2017, the European Commission published some lists of non-cooperative jurisdictions for tax purposes (where there is no member state of the European Union): blacklist, gray list and territories which have received a grace period. The EU blacklist, initially composed of 17 countries, according to a series of criteria, such as fiscal transparency, its corporate tax regimes (if they can be considered harmful), or the respect of the principles of the OECD to avoid the erosion of the tax base and the transfer of benefits (better known by the English term anti-BEPS). On January 23, 2018, the Economic and Financial Affairs Council (Ecofin) agreed to transfer 8 of them from the black list to the gray list, due to the commitments assumed by these jurisdictions to solve the deficiencies identified by the EU. The Group has no presence in any of the 9 territories included in the current blacklist. As well as this, there is a list of 8 countries affected by the hurricanes in the Caribbean, which have received a grace period until February 2018 to send their commitments. Within this list, the Group only has presence in the Bahamas, which ceased to be considered a tax haven according to Spanish regulations, following the entry into force in 2011 of the Tax Information Exchange Agreement signed with Spain. In this jurisdiction, the Group has 7 subsidiaries (1 of them in liquidation and 1 tax resident in USA) and 1 branch in process of closing. However, it must be taken into account that, from the point of view of the OECD, the Bahamas is a territory largely compliant with respect to transparency and exchange of information for tax purposes, especially since in December 2017 signed the Convention on Mutual Administrative Assistance in Tax Matters and joined the BEPS Project of the OECD. Finally, the gray list, initially composed of 47 jurisdictions and currently of 55, although they meet the criteria to be on the blacklist of tax havens, have committed to correct their legal frameworks to align them with international standards. In this list are included the 4 jurisdictions in which the Group has presence and are off-shore territories in accordance with current Spanish legislation (Jersey, Guernsey, Isle of Man and Cayman Islands). These jurisdictions will have until the end of 2018 to fulfill the commitments or until 2019 if they are developing countries without international financial centers. Additionally, Hong Kong, Peru, Switzerland, Uruguay and Panama are included in the gray list, although according to Spanish legislation are not off-shore territories and have committed to modify their legislation. The Group has 2 subsidiaries and 1 branch located in Hong Kong, 5 subsidiaries in Peru (1 of them in liquidation), 6 subsidiaries in Switzerland, 13 subsidiaries in Uruguay (7 of which are in liquidation) and 1 subsidiary in Panama with reduced banking activity that has already received authorization from the Superintendency of Banks of Panama for its voluntary liquidation. At present, Spain has in force Double Taxation Agreements with exchange of information clause with Hong Kong, Switzerland, Uruguay and Panama. The Group has established appropriate procedures and controls (risk management, supervision, verification and review plans and periodic reports) to prevent reputational and legal risk at these entities. Also, the Group has continued to implement its policy of reducing the number of off-shore units. The financial statements of the Group’s off-shore units are audited by PwC (PricewaterhouseCoopers) member firms in 2017 and 2016 (Deloitte in 2015). |
Distribution of the Bank's prof
Distribution of the Bank's profit, shareholder remuneration and earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Distributions, Shareholder Remuneration and Earnings Per Share [Abstract] | |
Distribution of the Banks' profit, shareholder remuneration scheme and earnings per share | 4. Distribution of the Bank’s profit, shareholder remuneration scheme and earnings per share a) Distribution of the Bank’s profit and shareholder remuneration scheme The distribution of the Bank’s net profit for 2017 that the Board of Directors proposed for approval by the shareholders at the annual general meeting is as follows: Millions of euros First and third interim dividends and final dividend 2,898 Acquisition, with a waiver of exercise, of bonus share rights from the shareholders which, under the Santander Dividendo Elección scrip dividend scheme, opted to receive in cash remuneration equivalent to the second interim dividend 99 2,997 Of which: Approved at December 31, 2017 (*) 2,029 Final dividend 968 To voluntary reserves 9 Net profit for the year 3,006 (*) In addition to the €2,997 million indicated above, €543 million in shares were allocated to the remuneration of shareholders under the shareholder remuneration scheme (Santander Dividendo Elección) approved by the shareholders at the annual general meeting held on April 7, 2017, whereby the Bank offered shareholders the possibility to opt to receive an amount equivalent to the second interim dividend out of 2017 profit in cash or new shares. A remuneration of €0.22 per share, charged to the 2017 annual period, was proposed by the Board of Directors to the shareholders at the annual general meeting. b) i. Basic earnings per share are calculated by dividing the net profit attributable to the Group (adjusted by the after-tax amount of the remuneration of contingently convertible preference shares recognized in equity - See Note 23) and the capital perpetual preference shares, if applicable, by the weighted average number of ordinary shares outstanding during the year, excluding the average number of treasury shares held in the year. Accordingly: 2017 2016 2015 Profit attributable to the Parent (millions of euros) 6,619 6,204 5,966 Remuneration of contingently convertible preference shares (CCP) (millions of euros) (Note 23) (395) (334) (276) Dilutive effect of changes in profit for the year arising from potential conversion of ordinary shares — — — 6,224 5,870 5,690 Of which: Profit or Loss from discontinued operations (non-controlling interest net) (millions of euros) — — — Profit or Loss from continuing operations (net of non-controlling interests and CCP) (millions of euros) 6,224 5,870 5,690 Weighted average number of shares outstanding 15,394,458,789 14,656,359,963 14,349,578,605 Adjusted number of shares 15,394,458,789 14,656,359,963 14,349,578,605 Basic earnings per share (euros) 0.404 0.401 0.397 Basic earnings per share from discontinued operations (euros) 0.000 Basic earnings per share from continuing operations (euros) 0.404 0.401 0.397 ii. Diluted earnings per share Diluted earnings per share are calculated by dividing the net profit attributable to the Group (adjusted by the after-tax amount of the remuneration of contingently convertible preference shares recognized in equity - See Note 23) and the capital perpetual preference shares, if applicable, by the weighted average number of ordinary shares outstanding during the year, excluding the average number of treasury shares and adjusted for all the dilutive effects inherent to potential ordinary shares (share options, and convertible debt instruments). Accordingly, diluted earnings per share were determined as follows: 2017 2016 2015 Profit attributable to the Parent (millions of euros) 6,619 6,204 5,966 Remuneration of contingently convertible preference shares (CCP) (millions of euros) (Note 23) (395) (334) (276) Dilutive effect of changes in profit for the year arising from potential conversion of ordinary shares — — — 6,224 5,870 5,690 Of which: Profit (Loss) from discontinued operations (net of non-controlling interests) (millions of euros) — — Profit from continuing operations (net of non-controlling interests and CCP) (millions of euros) 6,224 5,870 5,690 Weighted average number of shares outstanding 15,394,458,789 14,656,359,963 14,349,578,605 Dilutive effect of options/rights on shares 50,962,887 45,754,981 27,227,606 Adjusted number of shares 15,445,421,676 14,702,114,944 14,376,806,211 Diluted earnings per share (euros) 0.403 0.399 0.396 Diluted earnings per share from discontinued operations (euros) 0.00 Diluted earnings per share from continuing operations (euros) 0.403 0.399 0.396 The capital increase (See Note 31.a) has an impact on the basic and diluted earnings per share of the previous years due to the alteration in the number of shares outstanding. Due to this fact, the information relating to the 2016 and 2015 periods has been recasted according to the applicable legislation. |
Remuneration and other benefits
Remuneration and other benefits paid to the Bank's directors and senior managers | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions key personnel | |
Remuneration and other benefits paid to the Bank's directors and senior managers | 5. Remuneration and other benefits paid to the Bank’s directors and senior managers The following section contains qualitative and quantitative disclosures on the remuneration paid to the members of the Board of Directors -both executive and non-executive directors- and senior managers for 2017 and 2016: a) i. Bylaw-stipulated emoluments The annual General Meeting held on March 22, 2013 approved an amendment to the Bylaws, whereby the remuneration of directors in their capacity as board members became an annual fixed amount determined by the annual General Meeting. This amount shall remain in effect unless the shareholders resolve to change it at a general meeting. However, the Board of Directors may elect to reduce the amount in any years in which it deems such action justified. The remuneration established by the Annual General Meeting, was €6 million, with two components: (a) an annual emolument and (b) attendance fees. The specific amount payable for the above-mentioned items to each of the directors is determined by the Board of Directors. For such purpose, it takes into consideration the positions held by each director on the Board, their membership of the Board and the board committees and their attendance of the meetings thereof, and any other objective circumstances considered by the Board. The total bylaw-stipulated emoluments earned by the Directors in 2017 amounted to €4.7 million (€4.6 million in 2016). Annual emolument The amounts received individually by the directors in 2017 and 2016 based on the positions held by them on the board and their membership of the Board committees were as follows: Euros 2017 2016 Members of the Board of Directors 87,500 85,000 Members of the executive committee 170,000 170,000 Members of the audit committee 40,000 40,000 Members of the appointments committee 25,000 25,000 Members of the remuneration committee 25,000 25,000 Members of the risk supervision, regulation and compliance oversight committee 40,000 40,000 Chairman of the audit committee 50,000 50,000 Chairman of the appointments committee 50,000 50,000 Chairman of the remuneration committee 50,000 50,000 Chairman of the risk, regulation and compliance oversight committee 50,000 50,000 Coordinating director 110,000 110,000 Non-executive deputy chairman 30,000 30,000 Attendance fees The directors receive fees for attending board and committee meetings, excluding Executive Committee meetings, since no attendance fees are received for this committee. By resolution of the Board of Directors, at the proposal of the remuneration committee, the fees for attending board and committee meetings -excluding Executive Committee meetings, for which no attendance fees have been established- were as follows: Euros Meeting attendance fees 2017 2016 Board of Directors 2,600 2,500 Audit committee and risk supervision, regulation and compliance oversight committee 1,700 1,700 Other committees (except the executive committee) 1,500 1,500 ii. Salaries The executive directors receive salaries. In accordance with the policy approved by the annual general meeting, salaries are composed of a fixed annual remuneration and a variable remuneration consisting of a unique incentive, which is based on a deferred variable remuneration linked to multi-year objectives, which establishes the following payment scheme: Establishes the following payments scheme: · 40% of the variable remuneration amount, determined at year-end on the basis of the achievement of the established objectives, is paid immediately. · The remaining 60% is deferred over five years, as the case may be, in five portions provided that the conditions of permanence of the Group and non-concurrence of the malus clauses are met, taking into account the following accrual scheme. · The accrual of the first and second portion (payment in 2019 and 2020) is no subject to the long-term objectives. · The accrual of the third, fourth, and fifth portion (payment in 2021, 2022 and 2023), is also linked to certain objectives related to the period 2017-2019 and the metrics and scales associated with these objectives. The fulfilment of the objective determines the percentage to be applied to the deferred amount in these three annuities, being the maximum amount determined at the end of the 2017. · In accordance with current remuneration policies, the amounts already paid will be settled to a possible recovery (clawback) by the Bank during the period set out in the policy in force each moment. The immediate payment (or short-term) as well as the deferred payment and subject to long-term goals will be settled 50% in cash and the remaining 50% in Santander shares. iii. The detail, by Bank director, of the short-term (immediate) and deferred (not subject to long-term goals) remuneration for 2017 and 2016 is provided below: Thousands of euros 2017 2016 Bylaw-stipulated emoluments Short-term and deferred (not subject to long-term goals) salaries of Annual emolument executive directors Risk supervision, regulation and Attendance Variable – compliance fees Immediate payment Deferred variable Other Executive Audit Appointments Remuneration oversight And In In In In remuneration Directors Board committee committee committee committee committee commissions Fixed cash shares cash shares Total (a) Total Total Mrs. Ana Botín-Sanz de Sautuola y O’Shea 88 170 — — — — 44 2,500 1,370 1,370 822 822 6,884 689 7,874 7,279 Mr. José Antonio Álvarez Álvarez 88 170 — — — — 44 2,000 916 916 550 550 4,932 1,203 6,436 6,006 Mr. Rodrigo Echenique Gordillo 88 170 — — — — 38 1,500 714 714 428 428 3,785 201 4,281 3,824 Mr. Matías Rodríguez Inciarte (1) 80 155 — — — — 41 1,568 698 698 419 419 3,803 188 4,266 4,474 Mr. Guillermo de la Dehesa Romero 118 170 — 25 25 40 95 — — — — — — — 473 461 Mr. Bruce Carnegie-Brown 378 170 — 25 25 40 94 — — — — — — — 731 721 Mr. Ignacio Benjumea Cabeza de Vaca 88 170 — 25 25 40 97 — — — — — — 106 550 945 Mr. Francisco Javier Botín-Sanz de Sautuola y O’Shea (2) 88 — — — — — 36 — — — — — — — 124 115 Mrs. Sol Daurella Comadrán 88 — — 25 25 — 69 — — — — — — — 207 191 Mr. Carlos Fernández González 88 — 40 25 — 40 93 — — — — — — — 285 254 Mrs. Esther Giménez-Salinas i Colomer 88 — — — — 21 54 — — — — — — — 162 122 Mr. Ángel Jado Becerro de Bengoa (3) — — — — — — — — — — — — — — — 231 Mrs. Belén Romana García 138 — 40 — — 40 80 — — — — — — — 297 219 Mrs. Isabel Tocino Biscarolasaga (4) 80 155 36 — 23 36 87 — — — — — — — 418 442 Mr. Juan Miguel Villar Mir 88 — 19 — — 19 44 — — — — — — — 170 235 Mr. Homaira Akbari (5) 88 — 21 — — — 51 — — — — — — — 159 32 Mr. Ramiro Mato García Ansorena (6) 8 15 4 — — 4 6 — — — — — — — 36 — Total 2017 1,675 1,345 160 125 123 280 972 7,568 3,699 3,699 2,219 2,219 19,404 2,387 26,470 — Total 2016 1,645 1,360 190 143 143 277 859 7,710 3,340 3,340 2,004 2,004 18,398 2,536 25,551 (1) Ceased to be a member of the Board on November 28, 2017. This table shows the remuneration information until his ceased as a member of the board. The remuneration information for his performance as executive vice president since November 28, 2017 is included in the corresponding section. (2) All the amounts received were repaid to the Fundación Marcelino Botín. (3) Ceased to be a member of the board on September 27, 2016. (4) Ceased to be a member of the board on November 28, 2017. (5) Appointed director effective from September 27, 2016. (6) Appointed to be a member of the board. (a) Includes, inter alia, the life and medical insurance costs borne by the Group relating to Bank directors. Following is the detail, by executive director, of the linked to multiannual objectives salaries, which will only be received if the conditions of continued service, non-applicability of “ malus ” clauses and, full achievement of the objectives established (or, as the case may be, of the minimum thresholds thereof, with the consequent reduction of the agreed-upon amount in the end of the year) in the terms described in Note 47. Thousands of euros 2017 2016 Variable subject to Long-term objectives(2) In cash In shares Total Total (2) Mrs. Ana Botín-Sanz de Sautuola y O’Shea 863 863 1,726 1,518 Mr. José Antonio Álvarez Álvarez 577 577 1,154 1,026 Mr. Rodrigo Echenique Gordillo 450 450 900 760 Mr. Matías Rodríguez Inciarte(1) 440 440 880 904 Total 2,330 2,330 4,660 4,208 (1) Ceased to be a member of the board on November 28, 2017. The remuneration information for his performance as executive vice president is included in the corresponding section. (2) Corresponds with the fair value of the maximum amount they are entitled to in a total of 3 years: 2021, 2022 and 2023, subject to conditions of continued service, with the exceptions provided, and to the non-applicability of “malus” clauses and achievement of the objectives established. The fair value has been measured on the date of the concession of the scheme taking into account several possible behavioral assumptions (see Note 47). Note 5.e) below includes disclosures on the shares delivered by virtue of the deferred remuneration schemes in place in previous years the conditions for delivery which were met in the corresponding years, and on the maximum number of shares receivable in future years in connection with the aforementioned 2017 and 2016 variable remuneration plans. b) Remuneration of the Board members as representatives of the Bank By resolution of the executive committee, all the remuneration received by the Bank's directors who represent the Bank on the Boards of Directors of listed companies in which the Bank has a stake, paid by those companies and relating to appointments made on or after March 18, 2002 accrues to the Group. In 2017 and 2016 the Bank's directors did not receive any remuneration in respect of these representative duties. Mr. Matías Rodríguez Inciarte received €42 thousand as non-executive director of U.C.I., S.A. in 2017 and 2016, respectively. c) Post-employment and other long-term benefits In 2012, within the framework of the measures implemented by the Group in order to mitigate the risks arising from the defined-benefit pension obligations payable to certain employees, which led to an agreement with the workers' representatives to convert the defined-benefit obligations existing under the collective agreement into defined-contribution plans, the contracts of the executive directors and the other members of the Bank's senior management - the senior executives- which provided for defined-benefit pension obligations were amended to convert these obligations into a defined-contribution employee welfare system, which was externalized to Santander Seguros y Reaseguros, Compañía Aseguradora, S.A. This system grants the executive directors the right to receive a pension benefit upon retirement, regardless of whether or not they are employed by the Bank at the time, based on the contributions made to the aforementioned system, and replaced the right to receive a pension supplement which had previously been payable to them upon retirement. The new system expressly excludes any obligation of the Bank to the executive directors other than the conversion of the previous system into the new employee welfare system, which took place in 2012, and, as the case may be, the annual contributions to be made as described below 1 . In the event of pre-retirement, the executive directors who have not exercised the option to receive their pensions in the form of a lump sum are entitled to receive an annual emolument until the date of retirement. 1 As provided for in the contracts of the executive directors and members of senior management prior to their modification, Mr. Matías Rodríguez Inciarte had exercised the option to receive the accrued pensions -or amounts similar thereto- in the form of a lump sum -i.e. in a single payment-, which meant that no further pension benefit would accrue to them from that time, and the lump sum to be received, which would be updated at the agreed-upon interest rate, was fixed. The initial balance for each executive director in the new defined-contribution welfare system was that corresponding to the market value of the assets in which the provisions for the respective accrued obligations had been invested, at the date on which the former pension obligations were converted into the new welfare system 2 . Since 2013 the Bank has made annual contributions to the employee welfare system for the benefit of the executive directors and senior executives, in proportion to their respective pensionable bases, until they leave the Group, or until their retirement from the Group, death or disability (including, as the case may be, during the pre-retirement period). No contributions are made for the executive directors and senior executives who, prior to the conversion of the defined-benefit pension obligations into the current defined-contribution employee welfare system, had exercised the option to receive their pension rights in a lump sum 3 . In accordance with the provisions of the remuneration regulations, contributions made that are calculated on variable remuneration are subject to the discretionary pension benefits regime. Under this regime, these contributions are subject to malus clauses and clawback according to the policy in force at any time and during the same period in which the variable remuneration is deferred. Likewise, they must be invested in Bank shares for a period of five years from the date of the termination of executive directors in the Group, whether or not as a result of retirement. After that period, the amount invested in shares will be invested together with the remainder of the accumulated balance of the executive director, or will be paid to him or her beneficiaries had there been any contingency covered by the forecasting system. Following is a detail of the balances relating to each of the executive directors under the welfare system at December 31, 2017 and 2016: Thousands of euros 2017 2016 Ms. Ana Botín-Sanz de Sautuola y O’Shea (1) 45,798 43,156 Mr. José Antonio Álvarez Álvarez 16,151 15,107 Mr. Rodrigo Echenique Gordillo (2) 13,957 14,294 Mr. Matías Rodríguez Inciarte (3) — 48,230 75,906 120,787 (1) Includes the amounts relating to the period of provision of services at Banesto, externalized with another insurance company. (2) Executive director since January 16, 2015 Mr. Rodrigo Echenique Gordillo doesn´t participate in the pension system and the right to the bank to make contributions in its favor in this regard. The amount at December 31, 2017 and 2016, which correspond to him prior to his appointment as director of the bank executive director. (3) Ceased to be a member of the Board on November 28, 2017. The balance of his pensions rights as of December 31, 2017 is included in the Senior Managers section. The payments made during 2017 to the members of the Board entitled to post-employment benefits amount to €0.9 million (€0.9 million in 2016). Lastly, the contracts of the executive directors who had not exercised the option referred to above prior to the conversion of the defined-benefit pension obligations into the current welfare system include a supplementary welfare regime for the contingency of death (surviving spouse and child benefits) and permanent disability of serving directors. 2 In the case of Mr. Matías Rodríguez Inciarte, the initial balance corresponded to the amounts that were set when, as described above, they exercised the option to receive a lump sum, and includes the interest accrued on these amounts from that date. 3 Mr. Rodrigo Echenique Gordillo, appointed executive director on January 16, 2015, does not participate in the welfare system and is not entitled to have any contributions made in his favour by the Bank in this connection, notwithstanding the pension rights to which he was entitled prior to his appointment as executive director. In 2015, as a result of his appointment as chief executive officer, changes were introduced to the contract of Mr. José Antonio Álvarez Álvarez with respect to the pension obligations stipulated in his senior management contract. The annual contribution to the employee welfare system was thereafter calculated as 55% of the sum of: (i) the fixed annual remuneration; and (ii) 30% of the arithmetic mean of the last three gross amounts of variable remuneration. The pensionable base in the event of death or disability is 100% of his fixed remuneration. Under his senior management contract the annual contribution was 55.93% of his fixed remuneration, and the pensionable base in the event of death or disability was 100% of his fixed remuneration . The provisions recognized in 2017 and 2016 for retirement pensions and supplementary benefits (surviving spouse and child benefits, and permanent disability) were as follows: Thousands of euros 2017 2016 Ms. Ana Botín-Sanz de Sautuola y O’Shea 2,707 2,521 Mr. José Antonio Álvarez Álvarez 2,456 2,249 5,163 4,770 d) Insurance The Group has taken out life insurance policies for the Bank's directors, who will be entitled to receive benefits if they are declared disabled; in the event of death, the benefits will be payable to their heirs. The premiums paid by the Group are included in the Other remuneration column of the table shown in Note 5.a.iii above. Also, the following table provides information on the sums insured for the Bank's executive directors: Insured capital (Thousands of euros) 2017 2016 Ms. Ana Botín-Sanz de Sautuola y O’Shea 7,500 7,500 Mr. José Antonio Álvarez Álvarez 6,000 6,000 Mr. Rodrigo Echenique Gordillo 4,500 4,500 Mr. Matías Rodríguez Inciarte (1) — 5,131 18,000 23,131 (1) Ceased to be member of the board on November 28, 2017. During years 2017 and 2016, the Group has disbursed a total amount of €10.5 and 9.3 million, respectively, for the payment of civil-liability insurance premiums. These premiums correspond to several civil-liability insurance policies that hedge, among others, directors, senior executives and other managers and employees of the Group and the Bank itself as well as its subsidiaries, in light of various types of potential claims, for which it is not possible to disaggregate or individualize the amount that correspond to the directors and executives. At December 31, 2017 and 2016, there were no obligations in this connection to other directors. e) Deferred variable remuneration systems The following information relates to the maximum number of shares to which the executive directors are entitled at the beginning and end of 2017 and 2016 due to their participation in the deferred variable remuneration systems, which instrumented a portion of their variable remuneration relating to 2017 and prior years, as well as on the deliveries, whether shares or cash, made to them in 2017 and 2016 where the conditions for the receipt thereof had been met (see Note 47): i) Deferred conditional variable remuneration plan From 2011 to 2015, the bonuses of executive directors and certain executives (including senior management) and employees who assume risk, who perform control functions or receive an overall remuneration that puts them on the same remuneration level as senior executives and employees who assume risk (all of whom are referred to as identified staff) have been approved by the Board of Directors and instrumented, respectively, through various cycles of the deferred conditional variable remuneration plan. Application of these cycles, insofar as they entail the delivery of shares to the plan beneficiaries, was authorized by the related Annual General Meetings. The purpose of these plans is to defer a portion of the bonus of the plan beneficiaries (60% in the case of executive directors) over a period of five years (three years for the plans approved up to 2014) for it to be paid, where appropriate, in cash and in Santander shares; the other portion of the bonus is also to be paid in cash and Santander shares, upon commencement of the cycles, in accordance with the rules set forth below. In addition to the requirement that the beneficiary remains in Santander Group's employ, the accrual of the deferred remuneration is conditional upon none of the following circumstances existing -in the opinion of the Board of Directors following a proposal of the remuneration committee- in relation to the corresponding year in the period prior to each of the deliveries: (i) poor financial performance of the Group; (ii) breach by the beneficiary of internal regulations, including, in particular, those relating to risks; (iii) material restatement of the Group's financial statements, except when it is required pursuant to a change in accounting standards; or (iv) significant changes in the Group's economic capital or its risk profile. All the foregoing shall in each case be governed by the rules of the relevant plan cycle. On each delivery, the beneficiaries will be paid an amount in cash equal to the dividends paid for the amount deferred in shares and the interest on the amount deferred in cash. If the Santander Dividendo Elección scrip dividend scheme is applied, payment will based on the price offered by the Bank for the bonus share rights corresponding to those shares. The maximum number of shares to be delivered is calculated taking into account the daily volume-weighted average prices for the 15 trading sessions prior to the date on which the Board of Directors approves the bonus for the Bank's Executive Directors for each year. This plan and the Performance Shares (ILP) plan described below have been integrated in the deferred variable compensation plan linked to multiannual objectives, in the terms approved by the General Meeting of Shareholders held on April 7, 2017. ii) Performance shares plan (ILP) The table below shows the maximum number of shares to which the executive directors are entitled, as part of their variable remuneration for 2015, as a result of their participation in the ILP (see Note 47). Maximum number of (1) 2017 Ms. Ana Botín-Sanz de Sautuola y O’Shea 187,070 Mr. José Antonio Álvarez Álvarez 126,279 Mr. Rodrigo Echenique Gordillo 93,540 Mr. Matías Rodríguez Inciarte (2) 145,922 406,899 (1) A proposal from the remuneration committee, the board of directors resolved to increase the number of shares to mitigate the dilutive effect of the capital increase with pre-emptive subscription rights of July 2017 as described in iv) below. The actions derived from this adjustment are 5,967 shares. (2) Ceased to be member of the board on November 28, 2017. The maximum number of shares corresponding to the plan held as of December 31, 2017 was 145,922 shares, including those approved to mitigate the dilutive effect of the capital increase with pre-emptive subscription rights of July 2017. The accrual of the ILP and its amount are conditional on the behavior of certain metrics of Banco Santander between 2015 and 2017, as well as compliance with the remaining conditions of the plan until the end of the accrual period (December 31, 2018). Having finalized 2018, the corresponding amounts to be received by each exclusive director in relation to ILP (the ILP accrued amount) can be determined. The shares to be delivered in 2019 to executive directors based on compliance with the related multiannual target are conditional, in addition to the requirement that the beneficiary remains in the Group's employ, with the exceptions included in the plan regulations, upon none of the following circumstances existing -in the opinion of the Board of Directors following a proposal of the remuneration committee-, during the period prior to the delivery, as a result of actions performed in the year to which the plan relates: (i) poor financial performance of the Group; (ii) breach by the beneficiary of internal regulations, including, in particular, those relating to risks; (iii) material restatement of the Group's financial statements, except when it is required pursuant to a change in accounting standards; or (iv) significant changes in the Group's economic capital or risk profile. With regards to the ILP of 2014, once fiscal years 2016 and 2017 have finished, the annual amount that, in each case, corresponds to each executive director after applying the percentage that results from the relevant metric (see Note 47) to one third of the agreed ILP amount, will be determined. For the accrual in 2017 and 2018, the referral RTA is the one that accumulates between January 1, 2014 and December 31, 2016 and until January 1, 2014. In both financial years, the position achieved in the RTA has not been such that determines the accrual of the second and third thirds; therefore, it has expired. iii) Deferred variable compensation plan linked to multiannual objectives In 2016, with the aim of simplifying the remuneration structure, improving risk adjustment before and increasing the incidence of long-term objectives, the bonus plan (deferred and conditioned variable compensation plan) and ILP has been implemented. In 2017 the second cycle corresponding to the same plan was approved. The variable remuneration of executive directors and certain executives (including senior management) corresponding to 2017 has been approved by the Board of Directors and implemented through the first cycle of the deferred variable remuneration plan linked to multi-year objectives. The application of the plan, thus far as it entails the delivery of shares to the beneficiaries of the plan, was authorized by the annual General Meeting of Shareholders. As indicated in section a.ii of this Note, 60% of the variable remuneration amount is deferred for five years (three years for certain beneficiaries, not including executive directors), for their payment, where appropriate by fifth parties provided that the conditions of permanence in the group and non-concurrence of the clauses malus are met, according to the following accrual scheme: · The accrual of the first and second parts (installment in 2019 and 2020) is not subject to the fulfilment of long-term objectives. · The accrual of the third, fourth and fifth parts is linked to the fulfilment of certain objectives related to the period 2017‑2019 and the metrics and scales associated with those objectives. These objectives are: o the growth of consolidated earnings per share in 2019 compared to 2016; o the relative performance of the Bank’s total shareholder return (RTA) in the period 2017‑2019 in relation to the weighted RTAs of a reference group of 17 credit institutions; o compliance with the fully loaded ordinary level 1 capital objective for the year 2019; The degree of compliance with the above objectives determines the percentage to be applied to the deferred amount in these three annuities, the maximum being the amount determined at the end of the year 2017. Both the immediate (short-term) and the deferred (long-term and conditioned) part are paid 50% in cash and the remaining 50% in Santander shares. The accrual of deferred amounts (whether or not subject to performance measures) is conditioned, in addition to the permanence of the beneficiary in the Group, to the fact that during the period prior to each of the deliveries, none of the circumstances giving rise to the malus clause as set out in the Group's remuneration policy in its chapter related to malus and clawback. Likewise, the already paid amounts of the incentive will be subject to its possible recovery (clawback) by the Bank in the cases and during the term foreseen in said policy, always in the terms and conditions that are foreseen in it. The application of malus and clawback is activated in cases in which there is poor financial performance of the entity as a whole or of a specific division or area of the entity 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 entity, or by a business unit or risk control. (ii) The increase suffered by the entity or by a business unit of its capital needs, not foreseen at the time of generation of the exposures. (iii) Regulatory sanctions or judicial sentences from events that could be attributable to the unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity. (iv) (Irregular conduct, whether individual or collective. The negative effects derived from the marketing of inappropriate products and the responsibilities of the people or bodies that made those decisions will be specially considered. The accrual of deferred compensation linked to the multiannual objectives of executive directors (and senior management) is conditioned, in addition to the permanence of the beneficiary in the Santander Group, in the opinion of the Board of Directors, at the proposal of the remuneration committee, none of the following circumstances in relation to the corresponding period during the period prior to each of the deliveries: (i) poor financial performance of the Group; (ii) breach by the beneficiary of the internal regulations, including in particular that relating to risks; (iii) material restatement of the Group's financial statements, except when appropriate under a change in accounting regulations; or (iv) significant variations in the Group's economic capital or risk profile. All this, in each case, with the exceptions and as provided in the regulation of the plan. The application of clawback will be supplemented by that of malus, so that it will take place when it is considered insufficient to collect the effects that the event must have on the assigned variable remuneration. The application of clawback will be decided by the Board of Directors on the proposal of the remuneration committee and cannot be proposed once the last payment in shares corresponding to the plan is made in 2024. The maximum number of shares to be delivered is calculated by taking into account the weighted average daily volume of weighted average prices for the fifteen trading sessions prior to the previous Friday (excluded) the date on which the bond is agreed by the board of executive directors of the Bank. iv) Shares assigned by deferred variable remuneration plans The following table shows the number of Santander shares assigned to each executive director and pending delivery as of January 1, 2016, December 31, 2016 and 2017, as well as the gross shares that were delivered to them in 2016 and 2017, either in the form of an immediate payment or a deferred payment. In this case after having been appraised by the board, at the proposal of the remuneration committee that the corresponding one-third of each plan had accrued. They bring cause of each of the plans through which the variable remunerations of deferred conditional variable remuneration plan 2012, 2013, 2014 and 2015 and of the deferred conditional and linked to multiannual objectives 2016 and 2017. In order to mitigate the dilutive effect (and, therefore, not linked to the performance of the Group) of the capital increase with preferential subscription rights of the Bank that look place on July 2017 in certain cycles of the deferred compensation and long term incentive plans, the increase in the number of shares to be delivered to its beneficiaries was approved, considering for this a valuation of preferential subscription rights equivalent to their theoretical value, €0.1047 per right. The effect of increasing the number of shares is detailed in the corresponding column of the table below. Variable Maximum Shares delivered Shares delivered Shares delivered Shares delivered Variable Maximum Shares delivered Shares delivered Shares Shares remuneration number of in 2016 in 2016 in 2016 in 2016 remuneration number in 2017 in 2017 Shares delivered Delivered arising form 2017 Maximum shares to be (immediate (deferred (deferred (deferred 2016 (maximum of shares to be (immediate (deferred in 2017 (deferred in 2017 (deferred the capital (maximum number of shares delivered at payment 2015 payment 2014 payment 2013 payment 2012 number of delivered at payment 2016 payment 2015 payment 2014 payment 2013 increase of number of to be delivered at January 1, variable variable variable variable shares to be December 31, variable variable variable variable July shares to be December 31, Share-based variable remuneration 2016 remuneration) remuneration) remuneration) remuneration) delivered) 2016 remuneration) remuneration) remuneration) remuneration) 2017 delivered) (1) 2017 (4) 2012 variable remuneration Ms. Ana Botín-Sanz Sautuola y O’Shea 34,958 (34,958) Mr. José Antonio Álvarez Álvarez (2) 24,046 (24,046) Mr. Matías Rodríguez Inciarte 41,529 (41,529) 100,533 (100,533) 2013 variable remuneration Ms. Ana Botín- |
Loans and advances to central b
Loans and advances to central banks and credit institutions | 12 Months Ended |
Dec. 31, 2017 | |
Loans and advances to central banks and credit institutions | |
Loans and advances to central banks and credit institutions | 6. Loans and advances to central banks and credit institutions The detail, by classification, type and currency, of Loans and advances to credit institutions in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 CENTRAL BANKS Classification: Financial assets held for trading — — — Financial assets designated at fair value through profit or loss — — — Loans and receivables 26,278 27,973 17,337 26,278 27,973 17,337 Type: Time deposits 17,359 14,445 9,958 Reverse repurchase agreements 8,919 13,528 7,379 Impaired assets — — — Valuation adjustments for impairment — — — Of which risk country — — — 26,278 27,973 17,337 CREDIT INSTITUTIONS Classification: Financial assets held for trading 1,696 3,221 1,352 Financial assets designated at fair value through profit or loss 9,889 10,069 26,403 Loans and receivables 39,567 35,424 37,438 51,152 48,714 65,193 Type: Time deposits 8,169 6,577 7,875 Reverse repurchase agreements 21,765 20,867 37,744 Non- loans advances 21,232 21,281 19,580 Impaired assets 4 4 13 Valuation adjustments for impairment (18) (15) (19) Of which risk country (10) (12) (12) 51,152 48,714 65,193 Currency: Euro 23,286 24,278 42,666 Pound sterling 5,582 4,337 3,684 U.S. dollar 15,325 11,996 14,395 Brazilian reais 28,140 32,013 20,341 Other currencies 5,097 4,063 1,444 TOTAL 77,430 76,687 82,530 The loans and advances to credit institutions classified under Financial assets held for trading consist mainly of securities of foreign institutions acquired under reverse repurchase agreements, whereas those classified under Financial assets designated at fair value through profit or loss consist of assets of Spanish and foreign institutions acquired under reverse repurchase agreements. The loans and advances to credit institutions classified under Loans and receivables are mainly time accounts and deposits. Note 51 contains a detail of the residual maturity periods of Loans and receivables and of the related average interest rates. |
Debt Instruments
Debt Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Debt Instruments [Abstract] | |
Debt Instruments | 7. Debt instruments a) Detail The detail, by classification, type and currency, of Debt instruments in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 Classification: Financial assets held for trading 36,351 48,922 43,964 Financial assets designated at fair value through profit or loss 3,485 3,398 3,717 Financial assets available-for-sale (*) 128,481 111,287 117,187 Loans and receivables 17,543 13,237 10,907 Held-to-maturity investments 13,491 14,468 4,355 199,351 191,312 180,130 Type: Spanish government debt securities (*) 59,186 45,696 45,787 Foreign government debt securities 99,424 103,070 88,346 Issued by financial institutions 12,155 16,874 18,843 Other fixed-income securities 28,299 25,397 27,227 Impaired financial assets 1,017 773 218 Impairment losses (730) (498) (291) 199,351 191,312 180,130 Currency: Euro (*) 93,250 73,791 81,196 Pound sterling 16,203 16,106 10,551 U.S. dollar 25,191 31,401 27,011 Other currencies 65,437 70,512 61,663 Total Gross 200,081 191,810 180,422 Impairment losses (730) (498) (291) 199,351 191,312 180,130 (*) During 2017 the increase produced mainly due to Banco Popular acquisition. During the year 2016, Santander UK Plc purchased a portfolio of UK Government debt securities which were classified as held-to-maturity investments on acquisition for the amount of €7,765 million. In 2015, the Group reclassified certain financial instruments from the available-for-sale portfolio into the held-to-maturity investment portfolio. Pursuant to the applicable legislation, for the fair value of these instruments at the date of reclassification was considered their initial cost and the amount recognized in Other comprehensive income in the Group’s consolidated equity remained in the consolidated balance sheet, together with the adjustments relating to the other Financial assets available-for-sale. The reclassified instruments were subsequently measured at their amortized cost, and both the difference between their amortized cost and their maturity amount and the Other comprehensive income previously recognized in equity will be recognized in the consolidated income statement over the remaining life of the financial assets using the effective interest method. b) The breakdown, by origin of the issuer, of Debt instruments at December 31, 2017, 2016 and 2015, net of impairment losses, is as follows: Millions of euros 2017 2016 2015 Private Public Private Public Private Public fixed-income fixed-income Total % fixed-income fixed-income Total % fixed-income fixed-income Total % Spain 5,272 59,186 64,458 32.33 % 6,153 45,696 51,849 27.10 % 7,387 45,787 53,174 29.52 % United Kingdom 4,339 10,717 15,056 7.55 % 3,531 11,910 15,441 8.07 % 3,746 6,456 10,202 5.66 % Portugal 3,972 7,892 11,864 5.95 % 4,068 7,689 11,757 6.15 % 3,889 9,975 13,864 7.70 % Italy 1,287 7,171 8,458 4.24 % 1,035 3,547 4,582 2.40 % 1,312 4,423 5,735 3.18 % Ireland 3,147 2 3,149 1.58 % 518 — 518 0.27 % 342 — 342 0.19 % Poland 772 6,619 7,391 3.71 % 707 6,265 6,972 3.64 % 802 5,470 6,272 3.48 % Other European countries 7,195 1,733 8,928 4.48 % 7,203 1,736 8,939 4.67 % 7,912 3,133 11,045 6.13 % United States 7,986 11,670 19,656 9.86 % 10,559 13,058 23,617 12.34 % 11,919 9,753 21,672 12.03 % Brazil 4,729 34,940 39,669 19.90 % 5,364 39,770 45,134 23.59 % 5,405 25,588 30,993 17.21 % Mexico 461 9,478 9,939 4.99 % 587 10,628 11,215 5.86 % 723 15,296 16,019 8.89 % Chile 62 4,071 4,133 2.07 % 1,315 3,643 4,958 2.59 % 1,027 2,032 3,059 1.70 % Other American countries 755 913 1,668 0.84 % 782 1,262 2,044 1.07 % 762 1,611 2,373 1.32 % Rest of the world 764 4,218 4,982 2.50 % 724 3,562 4,286 2.24 % 771 4,609 5,380 2.99 % 40,741 158,610 199,351 100 % 42,546 148,766 191,312 100 % 45,997 134,133 180,130 100 % The detail, by issuer rating, of Debt instruments at December 31, 2017, 2016 and 2015 is as follows: Millions of euros 2017 2016 2015 Private Public Private Public Private Public fixed-income fixed-income Total % fixed-income fixed-income Total % fixed-income fixed-income Total % AAA 16,239 924 17,163 8.61 % 18,916 1,008 19,924 % 16,975 9,164 26,139 % AA 2,714 23,522 26,236 13.16 % 1,632 29,639 31,271 % 3,452 13,168 16,620 % A 4,373 8,037 12,410 6.23 % 2,928 3,285 6,213 % 7,379 9,120 16,499 % BBB 6,449 91,012 97,461 48.89 % 7,579 66,955 74,534 % 8,011 65,707 73,718 % Below BBB 2,393 35,109 37,502 18.81 % 4,751 47,872 52,623 % 2,575 35,573 38,148 % Unrated 8,573 6 8,579 4.30 % 6,740 7 6,747 % 7,605 1,401 9,006 5.00 % 40,741 158,610 199,351 100 % 42,546 148,766 191,312 100 % 45,997 134,133 180,130 100 % The distribution of exposure by rating shown in the foregoing table has been affected by the various reviews of sovereign issuer ratings conducted in recent years. Moreover, the main review in 2017 are that of Portugal (from BB+ to BBB-) and Chile (from AA- to AA+). The main reviews in 2016 were that of United Kingdom (from AAA to AA), Poland (from A to BBB+) and Argentina (From Unrated to B-). Also, the principal review in 2015 was that of Brazil (from BBB to Below BBB). The detail, by type of financial instrument, of Private fixed-income securities at December 31, 2017, 2016 and 2015, net of impairment losses, is as follows: Millions of euros 2017 2016 2015 Securitized mortgage bonds 2,458 1,584 2,110 Other asset-backed bonds 5,992 2,803 3,073 Floating rate debt 13,756 11,818 16,633 Fixed rate debt 18,535 26,341 24,181 Total 40,741 42,546 45,997 c) The changes in the impairment losses on Debt instruments are summarized below: Millions of euros 2017 2016 2015 Balance at beginning of year 498 291 144 Net impairment losses for the year (*) 348 380 211 Of which: Impairment losses charged to income 386 423 223 Impairment losses reversed with a credit to income (38) (43) (12) Exchange differences and other items (116) (172) (64) Balance at end of year 730 498 291 Of which: By geographical location of risk: European Union 30 40 34 Latin America 700 458 257 (*) Of which: Loans and advances 348 405 92 Financial assets available for sale — (25) 119 d) The detail, by term to maturity, of the debt instruments pledged as security for certain commitments, is as follows: Millions of euros 2017 More than 12 1 day 1 week 1 month 3 months 6 months 1 year months Total Government debt securities Other debt instruments Total There are no particular conditions relating to the pledge of these assets that need to be disclosed. Note 29 contains a detail of the Other comprehensive income recognized in equity on Financial assets available-for-sale. Note 51 contains a detail of the residual maturity periods of Financial assets available-for-sale and of Loans and receivables and of the related average interest rates. |
Equity instruments
Equity instruments | 12 Months Ended |
Dec. 31, 2017 | |
Equity Instruments Abstract | |
Equity instruments | 8. Equity instruments a) Breakdown The detail, by classification and type, of Equity instruments in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 Classification: Financial assets held for trading 21,353 14,497 18,225 Financial assets designated at fair value through profit or loss 933 546 630 Financial assets available-for-sale 4,790 5,487 4,849 27,076 20,530 23,704 Type: Shares of Spanish companies 4,199 3,098 2,479 Shares of foreign companies 20,448 15,342 19,077 Investment fund units and shares 2,429 2,090 2,148 27,076 20,530 23,704 Note 29 contains a detail of the Other comprehensive income recognized in equity on Financial assets available-for-sale, and also the related impairment losses. b) Changes The changes in Financial assets available-for-sale - Equity instruments were as follows: Millions of euros 2017 2016 2015 Balance at beginning of year 5,487 4,849 5,001 Net additions (disposals) (331) (294) (392) Of which: Bank of Shanghai Co., Ltd. — — 109 Visa Europe, Ltd. — (263) — Valuation adjustment and other items (366) 932 240 Balance at end of year 4,790 5,487 4,849 The main acquisitions and disposals made in 2017, 2016 and 2015 were as follows: i. Bank of Shanghai Co., Ltd. In May 2014 the Group acquired 8% of Bank of Shanghai Co., Ltd. for €396 million. In June 2015 the Group subscribed to a capital increase at this company for €109 million, thereby retaining its ownership interest percentage. In November 2016, the Bank of Shanghai shares began to trade, which meant that the closing price at December 31, 2017 and December 31, 2016 included a positive valuation adjustment of €340 million and €675 million compared to the cost recorded in Other comprehensive income – items that may be classified in results – Financials assets available for sale. ii. Visa Europe, Ltd. On June 21, 2016 the Group disposed its Visa Europe, Ltd. stake, classified as available for sale, obtaining a gain net of taxes of €227 million (see Note 44 Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net). c) The notifications made by the Bank in 2017, in compliance with Article 155 of the Spanish Limited Liability Companies Law and Article 125 of Spanish Securities Market Law 24/1998, of the acquisitions and disposals of holdings in investees are listed in Appendix IV. |
Derivatives (assets and liabili
Derivatives (assets and liabilities) and Short positions | 12 Months Ended |
Dec. 31, 2017 | |
Derivatives And Short Positions [Abstract] | |
Derivatives (assets and liabilities) and Short positions | 9. Derivatives (assets and liabilities) and Short positions a) The detail, by type of inherent risk, of the fair value of the derivatives arranged by the Group is as follows (see Note 36): Millions of euros 2017 2016 2015 Debit Credit Debit Credit Debit Credit balance balance balance balance balance balance Interest rate risk 38,030 37,582 47,884 48,124 51,576 49,095 Currency risk 16,320 18,014 21,087 23,500 21,924 23,444 Price risk 2,167 2,040 2,599 2,402 2,598 3,343 Other risks 726 256 473 343 626 532 57,243 57,892 72,043 74,369 76,724 76,414 b) Following is a breakdown of the short positions (liabilities): Millions of euros 2017 2016 2015 Borrowed securities: Debt instruments 2,447 2,250 3,098 Of which: Santander UK plc 1,557 1,319 1,857 Equity instruments 1,671 1,142 990 Of which: Santander UK plc 1,500 991 905 Short sales: Debt instruments 16,861 19,613 13,274 Of which: Banco Santander, S.A. 8,621 7,472 6,953 Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México 46 1,872 1,290 Banco Santander (Brasil) S.A. 8,188 9,197 4,619 Equity instruments — — — 20,979 23,005 17,362 |
Loans And Advances To Customers
Loans And Advances To Customers | 12 Months Ended |
Dec. 31, 2017 | |
Loans And Advances To Customers Abstract | |
Loans and advances to customers | 10. Loans and advances to customers a) The detail, by classification, of Loans and advances to customers in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 Financial assets held for trading 8,815 9,504 6,081 Financial assets designated at fair value through profit or loss 20,475 17,596 14,293 Loans and receivables 819,625 763,370 770,474 Of which: Disregarding impairment losses 843,559 787,763 796,991 Impairment losses (23,934) (24,393) (26,517) Of which, due to country risk (18) (15) (12) 848,915 790,470 790,848 Loans and advances to customers disregarding impairment losses 872,849 814,863 817,365 Note 51 contains a detail of the residual maturity periods of loans and receivables and of the related average interest rates. Note 54 shows the Group’s total exposure, by origin of the issuer. There are no loans and advances to customers for material amounts without fixed maturity dates. b) Following is a breakdown, by loan type and status, geographical area of residence and interest rate formula, of the loans and advances to customers of the Group, which reflect the Group’s exposure to credit risk in its core business, disregarding impairment losses: Millions of euros 2017 2016 2015 Loan type and status: Commercial credit 29,287 23,894 18,486 Secured loans 473,936 454,677 481,221 Reverse repurchase agreements 18,864 16,609 12,022 Other term loans 257,441 232,288 217,829 Finance leases 28,511 25,357 22,900 Receivable on demand 6,721 8,102 8,504 Credit cards receivables 21,809 21,363 20,270 Impaired assets 36,280 32,573 36,133 872,849 814,863 817,365 Geographical area: Spain 227,446 161,372 167,856 European Union (excluding Spain) 390,536 379,666 401,315 United States and Puerto Rico 75,777 87,318 88,737 Other OECD countries 74,463 74,157 69,519 Latin America (non-OECD) 88,302 93,207 77,519 Rest of the world 16,325 19,143 12,419 872,849 814,863 817,365 Interest rate formula: Fixed rate 447,788 417,448 407,026 Floating rate 425,061 397,415 410,339 872,849 814,863 817,365 At December 31, 2017, the Group had granted loans amounting to €16,470 million (December 31, 2016: €14,127 million; December 31, 2015: €13,993 million) to Spanish public sector agencies (which had ratings of BBB at December 31, 2017, 2016 and 2015), and €18,577 million to the public sector in other countries (December 31, 2016: €16,483 million; December 31, 2015: €7,772 million). At December 31, 2017, the breakdown of this amount by issuer rating was as follows: 9.5% AAA, 50.0% AA, 0.9% A, 36.0% BBB and 3.7% below BBB. Without considering the Public Administrations, the amount of the loans and advances at December 31, 2017 amounts to €837,802 million, of which, €801,640 million euros are classified as performing. The percentage breakdown of these loans and advances by counterparty credit quality is as follows: 5.4% AAA, 14.2% AA, 19.7% A, 26.7% BBB and 34.1% below BBB. The above-mentioned ratings were obtained by converting the internal ratings awarded to customers by the Group (See Note 54) into the external ratings classification established by Standard & Poor’s, in order to make them more readily comparable. Following is a detail, by activity, of the loans to customers at December 31, 2017, net of impairment losses: Millions of euros Secured loans Net exposure Loan-to-value ratio (a) More than More than More than 40% and 60% and 80% and Of which: Of which: Less than less than less than less than Without Property Other or equal or equal to or equal to or equal to More than Total collateral collateral collateral to 40% 60% 80% 100% 100% Public sector 33,008 21,611 8,565 2,832 1,245 2,254 4,719 3,052 127 Other financial institutions (Financial business activity) 35,036 10,930 1,166 22,940 862 887 331 21,347 679 Non-financial corporations and individual entrepreneurs (Non-financial business activity) (broken down by purpose) 288,912 167,960 65,864 55,088 25,599 18,426 14,183 38,049 24,695 Of which: Construction and property development 26,996 2,642 22,849 1,505 9,032 5,745 4,224 2,906 2,447 Civil engineering construction 3,422 2,100 441 881 128 294 158 281 461 Large companies 137,775 98,670 11,729 27,376 5,275 3,823 3,194 15,592 11,221 SMEs and individual entrepreneurs 120,719 64,548 30,845 25,326 11,164 8,564 6,607 19,270 10,566 Households – other (broken down by purpose) 473,075 112,566 318,635 41,874 98,556 45,293 Of which: Residential 308,985 1,762 306,701 522 34,788 Consumer loans 144,846 106,219 2,592 36,035 3,590 4,036 3,150 5,207 22,644 Other purposes 19,244 4,585 9,342 5,317 3,312 2,282 2,003 5,298 1,764 Total (*) 830,031 313,067 394,230 122,734 107,741 Memorandum item Refinanced and restructured transactions (**) 8,494 16,694 10,976 3,495 3,377 3,704 4,431 12,663 (*) In addition, the Group has granted advances to customers amounting to €18,884 million, bringing the total of loans and advances to €848,915 million. (**) Includes the net balance of the impairment of the accumulated value or accumulated losses in the fair value due to credit risk. (a) The ratio is the carrying amount of the transactions at December 31, 2017 provided by the latest available appraisal value of the collateral. Note 54 contains information relating to the restructured/refinanced loan book. c) The changes in the impairment losses on the assets making up the balances of Loans and receivables - Loans and advances to customers were as follows: Millions of euros 2017 2016 2015 Balance at beginning of year 24,393 26,517 27,217 Net impairment losses charged to income for the year 10,513 10,734 11,477 Of which: Impairment losses charged to income 19,006 17,081 16,461 Impairment losses reversed with a credit to income (8,493) (6,347) (4,984) Change of perimeter — (136) — Write-off of impaired balances against recorded impairment allowance (13,522) (12,758) (12,361) Exchange differences and other changes 2,550 36 184 Balance at end of year 23,934 24,393 26,517 Of which: By status of the asset: Impaired assets 16,207 15,331 17,421 Of which: due to country risk (Note 54) 18 15 12 Other assets 7,727 9,062 9,096 Balance at end of year 23,934 24,393 26,517 Of which: Individually calculated 5,311 6,097 9,673 Collective calculated: 18,623 18,296 16,844 In addition, provisions for debt securities amounting to €348 million (December 31, 2016: €405 million; December 31, 2015: €92 million) and written-off assets recoveries have been recorded in the year amounting to €1,620 million. (December 31, 2016: €1,582 million; December 31, 2015: €1,375 million). With this, the impairment amounts €9,241 million (December 31, 2016: €9,557 million; December 31, 2015: €10,194 million). d) The detail of the changes in the balance of the financial assets classified as Loans and receivables - Loans and advances to customers and considered to be impaired due to credit risk is as follows: Millions of euros 2017 2016 2015 Balance at beginning of year 32,573 36,133 40,372 Net additions 8,409 7,393 7,862 Written-off assets (13,522) (12,758) (12,361) Changes in the scope of consolidation 9,618 661 106 Exchange differences and other (798) 1,144 154 Balance at end of year 36,280 32,573 36,133 This amount, after deducting the related allowances, represents the Group’s best estimate of the discounted value of the flows that are expected to be recovered from the impaired assets. At December 31, 2017, the Group’s written-off assets totaled €43,508 million (December 31, 2016: €40,473 million; December 31, 2015: €36,848 million). Following is a detail of the financial assets classified as Loans and receivables to costumers and considered to be impaired due to credit risk at December 31, 2017, classified by geographical location of risk and by age of the oldest past-due amount: Millions of euros With no With balances past due by past-due balances or less than 90 days 90 to 180 180 to 270 270 days More than past due days days to 1 year 1 year Total Spain 6,012 938 793 814 9,643 18,200 European Union (excluding Spain) 2,023 1,526 811 558 3,829 8,747 United States and Puerto Rico 1,221 641 42 50 192 2,146 Other OECD countries 1,523 563 166 128 378 2,758 Latin America (non-OECD) 945 1,309 709 578 888 4,429 Rest of the world — — — — — — 11,724 4,977 2,521 2,128 14,930 36,280 The detail at December 31, 2016 is as follows: Millions of euros With no With balances past due by past-due balances or less than 90 days 90 to 180 180 to 270 270 days More than past due days days to 1 year 1 year Total Spain 4,845 508 360 625 7,009 13,347 European Union (excluding Spain) 2,648 1,783 877 654 3,262 9,224 United States and Puerto Rico 805 833 38 61 242 1,979 Other OECD countries 1,601 481 145 158 474 2,859 Latin America (non-OECD) 1,242 1,059 1,131 677 1,055 5,164 Rest of the world — — — — — — 11,141 4,664 2,551 2,175 12,042 32,573 The detail at December 31, 2015 is as follows: Millions of euros With no With balances past due by past-due balances or less than 90 days 90 to 180 180 to 270 270 days More than past due days days to 1 year 1 year Total Spain 6,623 894 622 551 8,329 17,019 European Union (excluding Spain) 1,854 1,720 916 791 4,394 9,675 United States and Puerto Rico 1,305 135 58 29 257 1,784 Other OECD countries 721 894 232 194 1,237 3,278 Latin America (non-OECD) 1,418 995 666 477 766 4,322 Rest of the world 8 2 — — 45 55 11,929 4,640 2,494 2,042 15,028 36,133 Set forth below for each class of impaired asset are the gross amount, associated allowances and information relating to the collateral and/or other credit enhancements obtained at December 31, 2017: Millions of euros Estimated Gross Allowance collateral amount recognized value(*) Without associated collateral 15,127 9,303 — With property collateral 17,534 5,128 11,945 With other collateral 3,619 1,776 1,168 Balance at end of year 36,280 16,207 13,113 (*) Including the estimated value of the collateral associated with each loan. Accordingly, any other cash flows that may be obtained, such as those arising from borrowers’ personal guarantees, are not included. When classifying assets in the previous table, the main factors considered by the Group to determine whether an asset has become impaired are the existence of amounts past due -assets impaired due to arrears- or other circumstances may be arise which will not result in all contractual cash flow being recovered, such as a deterioration of the borrower’s financial situation, the worsening of its capacity to generate funds or difficulties experienced by it in accessing credit. Loans classified as standard: past-due amounts receivable In addition, at December 31, 2017, there were assets with amounts receivable that were past due by 90 days or less, the detail of which, by age of the oldest past-due amount, is as follows: Millions of euros Less than 1 1 to 2 2 to 3 month months months Loans and advances to customers Of which Central Banks — — — Of which Public sector 1 1 — Total e) Loans and advances to customers includes, inter alia, the securitized loans transferred to third parties on which the Group has retained the risks and rewards, albeit partially, and which therefore, in accordance with the applicable accounting standards, cannot be derecognized. The breakdown of the securitized loans, by type of original financial instrument, and of the securitized loans derecognized because the stipulated requirements were met (See Note 2.e) is shown below. Note 22 details the liabilities associated with these securitization transactions. Millions of euros 2017 2016 2015 Derecognized 241 477 685 Of which Securitized mortgage assets 241 477 685 Retained on the balance sheet 91,208 100,675 107,643 Of which Securitized mortgage assets 36,844 44,311 54,003 Of which: UK assets 15,694 20,969 30,833 Other securitized assets 54,364 56,364 53,640 Total 91,449 101,152 108,328 Securitization is used as a tool for the management of regulatory capital and as a means of diversifying the Group’s liquidity sources. In 2017, 2016 and 2015 the Group did not derecognize any of the securitizations performed, and the balance shown as derecognized for those years relates to securitizations performed in prior years. The loans derecognized include assets of Santander Bank, National Association amounting to approximately €113 million at December 31, 2017 (December 31, 2016: €324 million; December 31, 2015: €506 million) that were sold, prior to this company’s inclusion in the Group, on the secondary market for multifamily loans, and over which control was transferred and substantially all the associated risks and rewards were not retained. At December 31, 2017 the Group recognized under Other liabilities an obligation amounting to €1 million (December 31, 2016: €3 million; December 31, 2015: €6 million), which represents the fair value of the retained credit risk. The loans retained on the face of the balance sheet include the loans associated with securitizations in which the Group retains a subordinated debt and/or grants any manner of credit enhancements to the new holders. The loans transferred through securitization are mainly mortgage loans, loans to companies and consumer loans. |
Hedging derivatives
Hedging derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Hedging Derivatives [Abstract] | |
Hedging derivatives | 11. Hedging derivatives The detail, by type of risk hedged, of the fair value of the derivatives qualifying for hedge accounting is as follows (see Note 36): Millions of euros 2017 2016 2015 Assets Liabilities Assets Liabilities Assets Liabilities Fair value hedges 3,607 6,968 4,678 5,696 4,620 5,786 Of which: Portfolio hedges 1,058 1,920 1,525 2,329 426 2,168 Cash flow hedges 4,416 947 5,349 1,324 2,449 3,021 Hedges of net investments in foreign operations 514 129 350 1,136 658 130 8,537 8,044 10,377 8,156 7,727 8,937 Note 36 contains a description of the Group’s main hedges. |
Non-current Assets
Non-current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Non-current Assets | |
Non-current Assets | 12. Non-current assets The detail of Non-current assets held for sale in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 Tangible assets 11,661 5,743 5,623 Of which: Foreclosed assets 11,566 5,640 5,533 Of which: Property assets in Spain (Note 54) 10,533 4,902 4,983 From Banco Popular in the process of sale (Note 3) 5,943 — — Other tangible assets held for sale 95 103 90 Other assets (*) 3,619 29 23 15,280 5,772 5,646 (*) These include, mainly, Banco Popular assets under the sale of the real estate business to Blackstone (see Note 3). At December 31, 2017, without considering the assets of Banco Popular under the aforementioned sale, the allowances recognized for the total non-current assets held for sale represented 50% (2016: 51%; 2015: 51%). The net charges recorded in those years amounted to €347 million, €241 million and €253 million, respectively and the recoveries during these exercises are amounted to €41 million, €29 million and €31 million. In 2017 the Group sold, for €1,295 million, foreclosed properties with a gross carrying amount of €2,168 million, for which provisions totaling €968 million had been recognized. These sales gave rise to gains of €95 million. In addition, other tangible assets were sold for €87 million, giving rise to a gain of €8 million (see Note 50). |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments | |
Investments | 13. Investments a) The detail, by company, of Investments (see Note 2.b) is as follows: Millions of euros 2017 2016 2015 Associated entities Merlin Properties, SOCIMI, S.A. 1,242 1,168 — Zurich Santander Insurance América, S.L. 988 1,011 873 Testa Residencial, SOCIMI, S.A. 651 307 — Allianz Popular, S.L. 438 — — Santander Insurance 358 325 301 Other companies 520 431 485 4,197 3,242 1,659 Joint Ventures entities Wizink Bank, S.A. — — Unión de Créditos Inmobiliarios, S.A., EFC 207 177 184 Aegon Santander Seguros (currently Santander Generales Seguros y Reaseguros, S.A. and Santander Vida Seguros y Reaseguros, S.A.) 186 197 240 SAM Investment Holdings Limited (*) — 525 514 Other companies 695 654 1,987 1,594 1,592 (*) SAM Investment Holdings Limited becomes part of the Group. Of the entities included above, at December 31, 2017, the entity Merlin Properties, SOCIMI, S.A and Compañía Española de Viviendas en Alquiler, S.A. are the only listed companies. a) Changes The changes in the investment were as followed: Millions of euros 2017 2016 2015 Balance at beginning of year 4,836 3,251 3,471 Acquisitions (disposals) and capital increases (reductions) 1,893 (72) (72) Of which: Wizink Bank, S.A. 1,017 — — Allianz Popular, S.L. 438 — — Changes in the consolidation method (Note 3) (582) 1,457 21 Of which: Merlin and Testa — 1,475 — SAM Investment Holdings Limited (494) — — Effect of equity accounting (Note 41) 704 444 375 Dividends paid and reimbursements of share premium (376) (305) (227) Exchange differences and other changes (291) 61 (317) Balance at end of year 6,184 4,836 3,251 c) In 2017, 2016 and 2015 there was no evidence of material impairment on the Group’s investments. d) Following is a summary of the financial information on the companies accounted for using the equity method (obtained from the information available at the date of preparation of the financial statements): Millions of euros 2017 2016 2015 Total assets 63,093 55,791 42,510 Total liabilities (51,242) (45,623) (38,118) Net assets 11,851 10,168 4,392 Group’s share of net assets 4,194 3,381 1,904 Goodwill 1,990 1,455 1,347 Of which: Zurich Santander Insurance América, S.L. 526 526 526 Wizink Bank, S.A. 553 — — Allianz popular, S.L. 347 — — Santander Insurance (Irlanda) 205 205 205 Total Group share 6,184 4,836 3,251 Total income 12,536 11,766 11,430 Total profit 1,699 984 935 Group’s share of profit 704 444 375 Following is a summary of the financial information for 2017 on the main associates and joint ventures (obtained from the information available at the date of preparation of the financial statements): Millions of euros Total assets Total liabilities Total income Total profit Joint Ventures entities 25,789 (23,072) 3,833 330 Of which: Unión de Créditos Inmobiliarios, S.A., EFC 12,318 (11,905) 345 10 Wizink Bank, S.A. 5,235 (4,054) 947 73 Aegon Santander Seguros (currently Santander Generales Seguros y Reaseguros, S.A. and Santander Vida Seguros y Reaseguros, S.A.) 654 (424) 382 30 Associated entities 37,304 (28,170) 8,703 1,369 Of which: Zurich Santander Insurance América, S.L. 16,049 (15,105) 4,696 491 Allianz Popular, S.L. 1,053 (826) 481 38 Santander Insurance (Irlanda) 2,161 (1,852) 843 63 Total 63,093 (51,242) 12,536 1,699 |
Insurance contracts linked to p
Insurance contracts linked to pensions | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of types of insurance contracts [abstract] | |
Insurance contracts linked to pensions | 14. Insurance contracts linked to pensions The detail of Insurance contracts linked to pensions in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 Assets relating to insurance contracts covering post-employment benefit plan obligations: Banco Santander, S.A. 238 269 299 Banco Popular (Other similar obligations) 1 — — 239 269 299 |
Liabilities and Assets under in
Liabilities and Assets under insurance contracts and Reinsurance assets | 12 Months Ended |
Dec. 31, 2017 | |
Liabilities and Assets under insurance contracts and Reinsurance assets | |
Liabilities and Assets under insurance contracts and Reinsurance assets | 15. Liabilities and Assets under insurance contracts and Reinsurance assets The detail of Liabilities under insurance contracts and Reinsurance assets in the consolidated balance sheets (See Note 2.j) is as follows: Millions of euros 2017 2016 2015 Direct Direct Direct insurance insurance insurance and Total and Total and Total reinsurance Reinsurance (balance reinsurance Reinsurance (balance reinsurance Reinsurance (balance Technical provisions for: assumed ceded payable) assumed ceded payable) assumed ceded payable) Unearned premiums and unexpired risks 50 (41) 9 61 (46) 15 62 (39) 23 Life insurance 483 (151) 332 159 (138) 21 149 (136) 13 Claims outstanding 423 (115) 308 358 (98) 260 335 (112) 223 Bonuses and rebates 29 (11) 18 19 (8) 11 18 (9) 9 Other technical provisions 132 (23) 109 55 (41) 14 63 (35) 28 1,117 (341) 776 652 (331) 321 627 (331) 296 |
Tangible assets
Tangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Tangible assets Abstract | |
Tangible assets | 16. Tangible assets a) The changes in Tangible assets in the consolidated balance sheets were as follows: Millions of euros Leased out under an operating Investment For own use lease property Total Cost: Balances at January 1, 2015 17,351 10,466 7,424 35,241 Additions / disposals (net) due to change in the scope of consolidation (22) 1 (27) (48) Additions / disposals (net) 878 3,857 (88) 4,647 Transfers, exchange differences and other items (765) 597 36 (132) Balances at December 31, 2015 17,442 14,921 7,345 39,708 Additions / disposals (net) due to change in the scope of consolidation (17) 287 (4,278) (4,008) Additions / disposals (net) 763 2,380 (64) 3,079 Transfers, exchange differences and other items (76) 650 462 1,036 Balances at December 31, 2016 18,112 18,238 3,465 39,815 Additions / disposals (net) due to change in the scope of consolidation 1,740 205 — 1,945 Additions / disposals (net) 781 2,445 (100) 3,126 Transfers, exchange differences and other items (1,357) (2,215) (223) (3,795) Balances at December 31, 2017 19,276 18,673 3,142 41,091 Accumulated depreciation: Balances at January 1, 2015 (8,979) (1,778) (194) (10,951) Disposals due to change in the scope of Consolidation (27) — 5 (22) Disposals 423 196 11 630 Charge for the year (1,161) — (11) (1,172) Transfers, exchange differences and other items 296 (1,794) (95) (1,593) Balances at December 31, 2015 (9,448) (3,376) (284) (13,108) Disposals due to change in the scope of Consolidation 5 (3) 121 123 Disposals 311 457 29 797 Charge for the year (1,079) — (10) (1,089) Transfers, exchange differences and other items — (2,247) (53) (2,300) Balances at December 31, 2016 (10,211) (5,169) (197) (15,577) Disposals due to change in the scope of Consolidation — — — — Disposals 478 639 8 1,125 Charge for the year (1,165) — (25) (1,190) Transfers, exchange differences and other items (22) (1,574) 25 (1,571) Balances at December 31, 2017 (10,920) (6,104) (189) (17,213) Millions of euros Leased out under an operating Investment For own use lease property Total Impairment losses: Balances at January 1, 2015 (48) (123) (863) (1,034) Impairment charge for the year (5) (37) (109) (151) Releases 3 — 20 23 Disposals due to change in the scope of Consolidation 5 — (4) 1 Exchange differences and other — 1 (120) (119) Balances at December 31, 2015 (45) (159) (1,076) (1,280) Impairment charge for the year (12) (43) (62) (117) Releases 1 1 60 62 Disposals due to change in the scope of Consolidation 1 — 309 310 Exchange differences and other 14 42 17 73 Balances at December 31, 2016 (41) (159) (752) (952) Impairment charge for the year (16) (42) (21) (79) Releases 4 — 3 7 Disposals due to change in the scope of Consolidation — (2) (1) (3) Exchange differences and other (24) 5 142 123 Balances at December 31, 2017 (77) (198) (629) (904) Tangible assets, net: Balances at December 31, 2015 7,949 11,386 5,985 25,320 Balances at December 31, 2016 (*) 7,860 12,910 2,516 23,286 Balances at December 31, 2017 8,279 12,371 2,324 22,974 (*) b) The detail, by class of asset, of Property, plant and equipment - For own use in the consolidated balance sheets is as follows: Millions of euros Accumulated Impairment Carrying Cost depreciation losses amount Land and buildings 5,754 (1,892) (45) 3,817 IT equipment and fixtures 4,984 (3,927) — 1,057 Furniture and vehicles 6,374 (3,561) — 2,813 Construction in progress and other items 330 (68) — 262 Balances at December 31, 2015 17,442 (9,448) (45) 7,949 Land and buildings 5,713 (1,967) (41) 3,705 IT equipment and fixtures 5,225 (4,161) — 1,064 Furniture and vehicles 6,963 (4,023) — 2,940 Construction in progress and other items 211 (60) — 151 Balances at December 31, 2016 18,112 (10,211) (41) 7,860 Land and buildings 5,892 (2,014) (77) 3,801 IT equipment and fixtures 5,608 (4,422) — 1,186 Furniture and vehicles 7,213 (4,391) — 2,822 Construction in progress and other items 563 (93) — 470 Balances at December 31, 2017 19,276 (10,920) (77) 8,279 The carrying amount at December 31, 2017 in the foregoing table includes the following approximate amounts: - €5,455 million (December 31, 2016: €5,906 million; December 31, 2015: €5,870 million) relating to property, plant and equipment owned by Group entities and branches located abroad. c) The fair value of investment property at December 31, 2017 amounted to €2,435 million (2016: €2,583 million; 2015: €6,097 million). A comparison of the fair value of investment property at December 31, 2017, 2016 and 2015 with the net book value shows gross unrealized gains of €128 million, gross gains of €67 and gross gains of €112 million, respectively, all of which are attributed to the Group. The rental income earned from investment property and the direct costs related both to investment properties that generated rental income in 2017, 2016 and 2015 and to investment properties that did not generate rental income in those years are not material in the context of the consolidated financial statements. d) In 2007 and 2008 the Group sold ten hallmark properties, 1,152 Bank branch offices in Spain and its head office complex (Ciudad Financiera or Santander Business Campus) to various buyers. Also, the Group entered into operating leases (with maintenance, insurance and taxes payable by the Group) on those properties with the buyers for various compulsory terms (12 to 15 years for the hallmark properties, 24 to 26 years for the branch offices and 40 years for the Santander Business Campus), with various rent review agreements applicable during those periods and the possible extensions thereof. The agreements between the parties also provided for purchase options that in general are exercisable by the Group on final expiry of the leases at the market value of the properties on the expiry dates; the market value will be determined, where appropriate, by independent experts. The rental expense recognized by the Group in 2017 in connection with these operating lease agreements amounted to €330 million (2016 and 2015: €297 million). At December 31, 2017, the present value of the minimum future payments that the Group will incur in the compulsory term amounted to €246 million payable within one year, €672 million payable at between one and five years and €1,461 million payable at more than five years. |
Intangible assets - Goodwill
Intangible assets - Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets - Goodwill | |
Intangible assets - Goodwill | 17. Intangible assets – Goodwill The detail of goodwill, based on the cash-generating units giving rise thereto, is as follows: Millions of euros 2017 2016 2015 Santander UK plc 8,375 8,679 10,125 Banco Santander (Brazil) S.A. 4,988 5,769 4,590 Santander Consumer USA Inc. 2,007 3,182 3,081 Bank Zachodni WBK S.A. 2,473 2,342 2,423 Santander Bank, National Association 1,712 1,948 1,886 Santander Consumer Germany 1,217 1,217 1,217 Santander Asset Management 1,173 — — Banco Santander Totta, S.A. 1,040 1,040 1,040 Banco Santander - Chile 676 704 644 Santander Consumer Bank AS 518 537 546 Grupo Financiero Santander (Mexico) 413 449 517 Other companies (*) 1,177 857 891 Total goodwill 25,769 26,724 26,960 (*) As of December 31, 2017 includes €248 million from Banco Popular Español, S.A. The changes in goodwill were as follows: Millions of euros 2017 2016 2015 Balance at beginning of year 26,724 26,960 27,548 Additions (Note 3) 1,644 — 235 Of which: Santander Asset Management 1,173 — — Banco Popular Español, S.A. 248 — — Carfinco Financial Group Inc. — — 162 Impairment losses (899) (50) (115) Of which: Santander Consumer USA Holdings Inc. (799) — — Disposals or changes in scope of consolidation — (2) (172) Exchange differences and other items (1,700) (184) (536) Balance at end of year 25,769 26,724 26,960 The Group has goodwill generated by cash-generating units located in non-euro currency countries (mainly the UK, Brazil, the United States, Poland, Chile, Norway, Sweden and Mexico) and, therefore, this gives rise to exchange differences on the translation to euros, at closing rates, of the amounts of goodwill denominated in foreign currencies. Accordingly, in 2017 goodwill decreased by €1,704 million due to exchange differences (see Note 29.b) which, pursuant to current standards, were recognized with a debit to Other comprehensive income Items that may be reclassified to profit or loss - Exchange differences in other comprehensive income in the consolidated statement of recognized income and expense. At least once per year (or whenever there is any indication of impairment), the Group reviews goodwill for impairment (i.e. a potential reduction in its recoverable value to below its carrying amount). The first step that must be taken in order to perform this analysis is the identification of the cash-generating units, i.e. the Group’s smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The amount to be recovered of each cash-generating unit is determined taking into consideration the carrying amount (including any fair value adjustment arising on the business combination) of all the assets and liabilities of all the independent legal entities composing the cash-generating unit, together with the related goodwill. The amount to be recovered of the cash-generating unit is compared with its recoverable amount in order to determine whether there is any impairment. The Group’s directors assess the existence of any indication that might be considered to be evidence of impairment of the cash-generating unit by reviewing information including the following: (i) certain macroeconomic variables that might affect its investments (population data, political situation, economic situation -including banking concentration level-, among others) and (ii) various microeconomic variables comparing the investments of the Group with the financial services industry of the country in which the cash-generating unit carries on most of its business activities (balance sheet composition, total funds under management, results, efficiency ratio, capital adequacy ratio, return on equity, among others). Regardless of whether there is any indication of impairment, every year the Group calculates the recoverable amount of each cash-generating unit to which goodwill has been allocated and, to this end, it uses price quotations, if available, market references (multiples), internal estimates and appraisals performed by independent experts. Firstly, the Group determines the recoverable amount by calculating the fair value of each cash-generating unit on the basis of the quoted price of the cash-generating units, if available, and of the Price Earnings Ratio of comparable local entities. In addition, the Group performs estimates of the recoverable amounts of certain cash-generating units by calculating their value in use using discounted cash flow projections. The main assumptions used in this calculation are: (i) earnings projections based on the financial budgets approved by the Group’s directors which cover between three and five year period (unless a longer time horizon can be justified), (ii) discount rates determined as the cost of capital taking into account the risk-free rate of return plus a risk premium in line with the market and the business in which the units operate and (iii) constant growth rates used in order to extrapolate earnings in perpetuity which do not exceed the long-term average growth rate for the market in which the cash-generating unit in question operates. The cash flow projections used by Group management to obtain the values in use are based on the financial budgets approved by both local management of the related local units and the Group’s directors. The Group’s budgetary estimation process is common for all the cash-generating units. The local management teams prepare their budgets using the following key assumptions: a) Microeconomic variables of the cash-generating unit: management takes into consideration the current balance sheet structure, the product mix on offer and the business decisions taken by local management in this regard. b) Macroeconomic variables: growth is estimated on the basis of the changing environment, taking into consideration expected GDP growth in the unit’s geographical location and forecast trends in interest and exchange rates. These data, which are based on external information sources, are provided by the Group’s economic research service. c) Past performance variables: in addition, management takes into consideration in the projection the difference (both positive and negative) between the cash-generating unit’s past performance and that of the market. Following is a detail of the main assumptions used in determining the recoverable amount, at 2017 year-end, of the most significant cash-generating units which were valued using the discounted cash flow method: Nominal Projected Discount perpetual period rate (*) growth rate Santander UK plc 5 years 8.4 % 2.5 % Banco Santander (Brasil) S.A. 5 years 14.6 % 8.3 % Santander Bank, National Association 3 years 10.1 % 3.7 % Santander Consumer Germany 3 years 8.6 % 2.5 % Santander Consumer USA Inc. 3 years 10.7 % 2.5 % Banco Santander Totta , S.A. 5 years 10.0 % 2.5 % Santander Consumer Bank AS 5 years 9.0 % 2.5 % (*) Given the degree of uncertainty of these assumptions, the Group performs a sensitivity analysis thereof using reasonable changes in the key assumptions on which the recoverable amount of the cash-generating units is based in order to confirm whether their recoverable amount still exceeds their carrying amount. The sensitivity analysis involved adjusting the discount rate by +/- 50 basis points and the perpetuity growth rate by +/‑50 basis points. Following the sensitivity analysis performed, the value in use of all the cash-generating units still exceeds their recoverable amount, albeit: · In the case of Santander Consumer USA, the Group recognized a goodwill impairment amounting to €799 million (€504 million after taxes). The mentioned impairment was estimated considering the decrease in the entity’s profit in contrast with the forecasts carried out in the previous years, derived from a change in the long term business strategy. · In Santander UK, the value in use approached its book value during 2016, mainly motivated by the impact of the UK/EU Referendum held on June 2016 which was reflected on the forecasts employed in the estimation of its value in use. Such forecasts were revaluated during 2017, presenting an increase in the value in use in comparison with 2016. In the case of Santander Asset Management, in spite of its recent acquisition and takeover, on December 22, 2017 (see Note 3), the Group carried out a recoverability analysis based on the review of the business plan introduced for the execution of the transaction with no potential impairment being identified. The recoverable amount of Bank Zachodni WBK S.A., Banco Santander – Chile, S.A. and Grupo Financiero Santander (México) was calculated as the fair values of the aforementioned cash-generating units obtained from the market prices of their shares at year-end. This value exceeded the recoverable amount. Based on the above, and in accordance with the estimates, forecasts and sensitivity analysis available for the managers of the Bank, during 2017 the Group recognized goodwill impairment losses within Impairment losses on other assets (net) - Goodwill and other intangible assets caption amounting to €899 million (€50 and 115 million during 2016 and 2015, respectively) out of which €799 million correspond to Santander Consumer USA and €100 million correspond to the Group’s business in Canada, in both cases motivated by the deterioration of the forecast business expectations. |
Intangible assets - Other intan
Intangible assets - Other intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets - Other intangible assets | |
Intangible assets - Other intangible assets | 18. Intangible assets - Other intangible assets The detail of Intangible assets - Other intangible assets in the consolidated balance sheets and of the changes therein in 2017, 2016, and 2015 is as follows: Millions of euros Net Application of additions Change in Amortization amortization Exchange Estimated December 31, and scope of and and differences December 31, useful life 2016 disposals consolidation impairment impairment and other 2017 With indefinite useful life: Brand names 39 — — — — (4) 35 With finite useful life: IT developments 3-7 years 6,558 1,470 42 — (679) (446) 6,945 Other 1,245 68 436 — (126) (63) 1,560 Accumulated amortization (4,848) — (64) (1,403) 694 235 (5,386) Development (4,240) — (14) (1,310) 627 216 (4,721) Other (608) — (50) (93) 67 19 (665) Impairment losses (297) — — (174) 111 120 (240) Of Which: Addition 2,697 1,538 414 (1,577) — (158) 2,914 Millions of euros Net Application of additions Change in Amortization amortization Exchange Estimated December 31, and scope of and and differences December 31, useful life 2015 disposals consolidation impairment impairment and other 2016 With indefinite useful life: Brand names 49 1 — — (11) — 39 With finite useful life: IT developments 3-7 years 5,411 1,726 — — (890) 311 6,558 Other 1,306 41 (124) — — 22 1,245 Accumulated amortization (3,873) — — (1,275) 716 (416) (4,848) Development (3,353) — — (1,168) 716 (435) (4,240) Other (520) — — (107) — (608) Impairment losses (423) — — (11) 185 (48) (297) Of Which: Addition (11) 2,470 1,768 (124) (1,286) — (131) 2,697 Millions of euros Net Application of additions Change in Amortization amortization Exchange Estimated December 31, and scope of and and differences December 31, useful life 2014 disposals consolidation impairment impairment and other 2015 With indefinite useful life: Brand names 61 — (2) — (17) 7 49 With finite useful life: IT developments 3-7 years 5,350 1,481 (25) — (951) (444) 5,411 Other 1,294 87 — — (81) 6 1,306 Accumulated amortization (3,623) — 20 (1,246) 663 313 (3,873) Development (3,096) — 20 (1,138) 613 248 (3,353) Other (527) — — (108) 50 65 (520) Impairment losses (229) — — (586) 386 6 (423) Of Which: Addition (586) 2,853 1,568 (7) (1,832) — (112) 2,470 In 2017, 2016 and 2015, impairment losses of €174, €11 and €586 million, respectively, were recognized under provisions or reversals of provisions at financial assets in the consolidated income statement. This impairment losses related mainly to the decline in or loss of the recoverable value of certain computer systems and applications as a result of the processes initiated by the Group to adapt to the various regulatory changes and to transform or integrate businesses. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets Abstract | |
Other Assets | 19. Other assets The detail of Other assets is as follows: Millions of euros 2017 2016 2015 Transactions in transit 206 431 323 Net pension plan assets (Note 25) 604 521 787 Prepayments and accrued income 2,326 2,232 1,976 Other 4,427 3,878 3,277 7,563 7,062 6,363 |
Deposits from central banks and
Deposits from central banks and credit institutions | 12 Months Ended |
Dec. 31, 2017 | |
Deposits from central banks and credit institutions | |
Deposits from central banks and credit institutions | 20. Deposits from central banks and credit institutions The detail, by classification, counterparty, type and currency, of Deposits from central banks and Deposits from credit institutions in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 CENTRAL BANKS Classification: Financial liabilities held for trading 282 1,351 2,178 Financial liabilities designated at fair value through profit or loss 8,860 9,112 16,486 Financial liabilities at amortized cost 71,414 44,112 38,872 80,556 54,575 57,536 Type: Deposits on demand 5 5 5 Time deposits 78,801 46,278 41,872 Reverse repurchase agreements 1,750 8,292 15,659 80,556 54,575 57,536 CREDIT INSTITUTIONS Classification: Financial liabilities held for trading 292 44 77 Financial liabilities designated at fair value through profit or loss 18,166 5,015 8,551 Financial liabilities at amortized cost 91,300 89,764 109,209 109,758 94,823 117,837 Type: Deposits on demand 6,444 4,220 4,526 Time deposits 54,159 61,321 71,244 Reverse repurchase agreements 49,049 29,277 42,064 Subordinated deposits 106 5 3 109,758 94,823 117,837 Currency: Euro 119,606 74,746 92,062 Pound sterling 14,820 12,237 5,961 U.S. dollar 33,259 40,514 48,586 Brazilian reais 16,485 16,537 16,410 Other currencies 6,144 5,364 12,354 190,314 149,398 175,373 The increase in Deposits from central banks measured at amortized cost mainly relates to the Grupo Banco Popular acquisition in 2017 and the Group’s participation in the last years in the European Central Bank’s targeted longer-term refinancing operations (LTRO (Long-Term Refinancing Operation) and TLTROs (Targeted Long-Term Refinancing Operation)) for €58,550 million. Note 51 contains a detail of the residual maturity periods of financial liabilities at amortized cost and of the related average interest rates. |
Customer deposits
Customer deposits | 12 Months Ended |
Dec. 31, 2017 | |
Customer deposits | |
Customer deposits | 21. Customer deposits The detail, by classification, geographical area and type, of Customer deposits is as follows: Millions of euros 2017 2016 2015 Classification: Financial liabilities held for trading 28,179 9,996 9,187 Financial liabilities designated at fair value through profit or loss. 28,945 23,345 26,357 Financial liabilities at amortized cost 720,606 657,770 647,598 777,730 691,111 683,142 Geographical area: Spain 260,181 181,888 183,778 European Union (excluding Spain) 318,580 295,059 311,314 United States and Puerto Rico 50,771 63,429 59,814 Other OECD countries 62,980 62,761 57,817 Latin America (non-OECD) 84,752 87,519 69,792 Rest of the world 466 455 627 777,730 691,111 683,142 Type: Demand deposits- Current accounts 328,217 279,494 257,192 Savings accounts 189,845 180,611 180,415 Other demand deposits 7,010 7,156 5,489 Time deposits- Fixed-term deposits and other term deposits 195,285 176,581 196,965 Home-purchase savings accounts 45 50 59 Discount deposits 3 448 448 Hybrid financial liabilities 4,295 3,986 5,174 Subordinated liabilities 21 24 20 Repurchase agreements 53,009 42,761 37,380 777,730 691,111 683,142 Note 51 contains a detail of the residual maturity periods of financial liabilities at amortized cost and of the related average interest rates. |
Marketable debt securities
Marketable debt securities | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Debt Securities [Abstract] | |
Marketable debt securities | 22. Marketable debt securities a) Breakdown The detail, by classification and type, of Marketable debt securities is as follows: Millions of euros 2017 2016 2015 Classification: Financial liabilities held for trading — — — Financial liabilities designated at fair value through profit or loss 3,056 2,791 3,373 Financial liabilities at amortized cost 214,910 226,078 222,787 217,966 228,869 226,160 Type: Bonds and debentures outstanding 176,719 183,278 182,073 Subordinated 21,382 19,873 21,131 Notes and other securities 19,865 25,718 22,956 217,966 228,869 226,160 The breakdown of book value by maturity of the subordinated liabilities and bonds and debentures outstanding at December 31, 2017: Millions of euros Within 1 year 1 to 3 years 3 to 5 years More than 5 years Total Subordinated Liabilities Covered bonds 86,272 Other bonds and debentures Total bonds and debentures outstanding 176,719 Total bonds and debentures outstanding and subordinated liabilities 198,101 Note 51 contains a detail of the residual maturity periods of financial liabilities at amortized cost and of the related average interest rates in those years. b) The detail, by currency of issue, of bonds and debentures outstanding is as follows: December 31, 2017 Outstanding issue amount in foreign Annual Millions of euros currency interest Currency of issue 2017 2016 2015 (Millions) rate (%) Euro 83,321 77,231 88,922 % U.S. dollar 48,688 48,134 46,463 56,841 % Pound sterling 13,279 15,098 16,757 11,181 % Brazilian real 17,309 27,152 19,125 62,592 % Hong Kong dollar — 40 74 — — Chilean peso 5,876 6,592 3,634 4,180,799 % Other currencies 8,246 9,030 7,098 Balance at end of year 176,719 183,278 182,073 The changes in Bonds and debentures outstanding were as follows: Millions of euros 2017 2016 2015 Balance at beginning of year 183,278 182,073 178,710 Net inclusion of entities in the Group 11,426 1,009 5,229 Of which: Grupo Banco Popular 11,426 — — Banif - Banco Santander Totta SA — — 1,729 Auto ABS UK Loans PLC — — 1,358 Auto ABS DFP Master Compartment France 2013 — — 550 Auto ABS2 FCT Compartiment 2013-A — — 514 PSA Financial Services, Spain, EFC, SA — — 401 Auto ABS FCT Compartiment 2012-1 — — 274 Auto ABS FCT Compartiment 2013-2 — — 205 PSA Finance Suisse, S.A. — — 200 Banca PSA Italia S.P.A. — 500 — PSA Bank Deutschland GmbH — 497 — Issues 62,260 57,012 66,223 Of which: Grupo Santander UK 7,625 12,815 16,279 Santander Consumer USA Holdings Inc. 11,242 11,699 11,330 Banco Santander (Brasil) S.A 16,732 7,699 16,910 Santander Consumer Finance, S.A. 2,508 4,567 5,070 Banco Santander - Chile 579 3,363 1,198 Santander Holding USA, Inc. 4,133 2,798 1,921 Banco Santander, S.A. (including issuer entities) 10,712 6,385 5,265 Banco Santander, S.A. (México), S.A. Institución de Banca Múltiple, Grupo Financiero Santander México 118 1,840 1,874 Santander Consumer Bank AG 749 — — Santander Consumer Bank A.S. 1,117 1,537 1,328 PSA Financial Services, Spain, EFC, SA — 726 — SCF Rahoituspalvelut KIMI VI DAC 635 — — Société Financière de Banque – SOFIB (actually PSA Banque France) 1,032 — — Auto ABS French Lease Master Compartiment 2016 — 635 — Santander International Products, Plc. 588 371 402 Emisora Santander España, S.A. Unipersonal 67 158 745 Banco Santander Totta, S.A. 1,999 — 749 Santander Bank, National Association — — 910 Redemptions and repurchases (66,871) (59,036) (69,295) Of which: Grupo Santander UK (13,303) (13,163) (18,702) Grupo Banco Popular (983) — — Santander Bank, National Association (886) — — Santander Consumer USA Holdings Inc. (10,264) (11,166) (7,556) Banco Santander (Brasil) S.A. (23,187) (7,579) (14,718) Banco Santander, S.A. (including issuer entities) (8,973) (12,837) (18,581) Santander Consumer Finance, S.A. (1,618) (4,117) (2,838) Santander Holdings USA, Inc. (759) (1,786) (494) Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México (224) (1,453) (789) Banco Santander Totta, S.A. (998) (856) (130) Santander Consumer Bank AS (337) (710) (163) Banco Santander - Chile, S.A. (1,442) (516) (2,136) Exchange differences and other movements (13,374) 2,219 1,206 Balance at year-end 176,719 183,278 182,073 c) These notes were issued basically by Abbey National Treasury Services plc, Santander Consumer Finance, S.A., Santander UK PLC, Inc., Banco Santander (México), S.A. Institución de Banca Múltiple, Grupo Financiero Santander México , Bank Zachodni WBK S.A., Banco Santander and Banco Popular Español, S.A. d) Set forth below is information on the liabilities secured by financial assets: Millions of euros 2017 2016 2015 Asset-backed securities 32,505 38,825 42,201 Of which, mortgage-backed securities 4,034 8,561 14,152 Other mortgage securities 52,497 44,616 48,228 Of which: mortgage-backed bonds 23,907 16,965 19,747 Territorial covered bond 1,270 592 1,567 86,272 84,033 91,996 The main characteristics of the assets securing the aforementioned financial liabilities are as follows: 1. Asset-backed securities: a. Mortgage-backed securities- these securities are secured by securitized mortgage assets (see Note 10.e) with average maturities of more than ten years that must: be a first mortgage for acquisition of principal or second residence, be current in payments, have a loan-to-value ratio below 80% and have a liability insurance policy in force covering at least the appraisal value. The value of the financial liabilities broken down in the foregoing table is lower than the balance of the assets securing them - securitized assets retained on the balance sheet - mainly because the Group repurchases a portion of the bonds issued, and in such cases they are not recognized on the liability side of the consolidated balance sheet. b. Other asset - backed securities - including asset-backed securities and notes issued by special-purpose vehicles secured mainly by mortgage loans that do not meet the foregoing requirements and other loans (mainly personal loans with average maturities of five years and loans to SMEs with average maturities of seven years). 2. Other mortgage securities include mainly: (i) mortgage-backed bonds with average maturities of more than ten years that are secured by a portfolio of mortgage loans and credits (included in secured loans - see Note 10.b) which must: not be classified as at procedural stage; have available appraisals performed by specialized entities; have a loan-to-value (LTV) ratio below 80% in the case of home loans and below 60% for loans for other assets and have sufficient liability insurance, (ii) other debt securities issued as part of the Group’s liquidity strategy in the UK, mainly covered bonds in the UK secured by mortgage loans and other assets. The fair value of the guarantees received by the Group (financial and non-financial assets) which the Group is authorized to sell or pledge even if the owner of the guarantee has not defaulted is scantly material taking into account the Group’s financial statements as a whole. e) The members of the Board of Directors hereby state that the Group entities operating in the Spanish mortgage-market issues area have established and implemented specific policies and procedures to cover all activities carried on and guarantee strict compliance with mortgage-market regulations applicable to these activities as provided for in Royal Decree 716/2009, of April 24, implementing certain provisions of Mortgage Market Law 2/1981, of March 25, and, by application thereof, in Bank of Spain Circulars 7/2010 and 5/2011, and other financial and mortgage system regulations. Also, financial management defines the Group entities' funding strategy. The risk policies applicable to mortgage market transactions envisage maximum loan-to-value (LTV) ratios, and specific policies are also in place adapted to each mortgage product, which occasionally require the application of stricter limits. The Bank’s general policies in this respect require the repayment capacity of each potential customer (the effort ratio in loan approval) to be analyzed using specific indicators that must be met. This analysis must determine whether each customer’s income is sufficient to meet the repayments of the loan requested. In addition, the analysis of each customer must include a conclusion on the stability over time of the customer’s income considered with respect to the life of the loan. The aforementioned indicator used to measure the repayment capacity (effort ratio) of each potential customer takes into account mainly the relationship between the potential debt and the income generated, considering on the one hand the monthly repayments of the loan requested and other transactions and, on the other, the monthly salary income and duly supported income. The Group entities have specialized document comparison procedures and tools for verifying customer information and solvency (see Note 54). The Group entities’ procedures envisage that each mortgage originated in the mortgage market must be individually valued by an appraisal company not related to the Group. In accordance with Article 5 of Mortgage Market Law 41/2007, any appraisal company approved by the Bank of Spain may issue valid appraisal reports. However, as permitted by this same article, the Group entities perform several checks and select, from among these companies, a small group with which they enter into cooperation agreements with special conditions and automated control mechanisms. The Group’s internal regulations specify, in detail, each of the internally approved companies, as well as the approval requirements and procedures and the controls established to uphold them. In this connection, the regulations establish the functions of an appraisal company committee on which the various areas of the Group related to these companies are represented. The aim of the committee is to regulate and adapt the internal regulations and the activities of the appraisal companies to the current market and business situation (See note 2.i). Basically, the companies wishing to cooperate with the Group must have a significant level of activity in the mortgage market in the area in which they operate, they must pass a preliminary screening process based on criteria of independence, technical capacity and solvency -in order to ascertain the continuity of their business- and, lastly, they must pass a series of tests prior to obtaining definitive approval. In order to comply in full with the legislation, any appraisal provided by the customer is reviewed, irrespective of which appraisal company issues it, to check that the requirements, procedures and methods used to prepare it are formally adapted to the valued asset pursuant to current legislation and that the values reported are customary in the market. The information required by Bank of Spain Circulars 7/2010 and 5/2011, by application of Royal Decree 716/2009, of April 24 is as follows: Millions of euros 2017 2016 2015 Face value of the outstanding mortgage loans and credits that support the issuance of mortgage-backed and mortgage bonds pursuant to Royal Decree 716/2009 (excluding securitized bonds) 91,094 56,871 60,043 Of which: Loans eligible to cover issues of mortgage-backed securities 59,422 38,426 39,414 Transfers of assets retained on balance sheet: mortgage-backed certificates and other securitized mortgage assets 18,802 19,509 21,417 Mortgage-backed bonds The mortgage-backed bonds ("cédulas hipotecarias") issued by the Group entities are securities the principal and interest of which are specifically secured by mortgages, there being no need for registration in the Property Register, by mortgage on all those that at any time are recorded in favor of the issuer and are not affected by the issuance of mortgage bonds and / or are subject to mortgage participations, and / or mortgage transfer certificates, and, if they exist, by substitution assets eligible to be hedged and for the economic flows generated by derivative financial instruments linked to each issue, and without prejudice to the issuer's unlimited liability. The mortgage bonds include the credit right of its holder against the issuing entity, guaranteeing in the manner provided for in the previous paragraph, and involve the execution to claim from the issuer the payment after due date. The holders of these securities are recognized as preferred creditors, singularly privileged, with the preference, included in number 3º of article 1,923 of the Spanish Civil Code against any other creditor, in relation with the entire group of loans and mortgage loans registered in favor of the issuer, except those that act as coverage for mortgage bonds and / or are subject to mortgage participations and / or mortgage transfer certificates. In the event of insolvency, the holders of mortgage-backed bonds will enjoy the special privilege established in Article 90.1.1 of Insolvency Law 22/2003, of July 9. Without prejudice to the foregoing, in accordance with Article 84.2.7 of the Insolvency Law, during the insolvency proceedings, the payments relating to the repayment of the principal and interest of the bonds issued and outstanding at the date of the insolvency filing will be settled up to the amount of the income received by the insolvent party from the mortgage loans and credits and, where appropriate, from the replacement assets backing the bonds and from the cash flows generated by the financial instruments associated with the issues (Final Provision 19 of the Insolvency Law). If, due to a timing mismatch, the income received by the insolvent party is insufficient to meet the payments described in the preceding paragraph, the insolvency managers must settle them by realizing the replacement assets set aside to cover the issue and, if this is not sufficient, they must obtain financing to meet the mandated payments to the holders of the mortgage-backed bonds, and the finance provider must be subrogated to the position of the bond-holders. In the event that the measure indicated in Article 155.3 of the Insolvency Law were to be adopted, the payments to all holders of the mortgage-backed bonds issued would be made on a pro-rata basis, irrespective of the issue dates of the bonds. The outstanding mortgage-backed bonds issued by the Group totaled €23,907 million at December 31, 2017 (all of which were denominated in euros), of which €14,198 million were issued by Banco Santander, 9,209 were issued by Grupo Banco Popular and €500 million were issued by Santander Consumer Finance, S.A. The issues outstanding at December 31, 2017 and 2016 are detailed in the separate financial statements of each of these companies. Mortgage-backed bond issuers have an early redemption option solely for the purpose of complying with the limits on the volume of outstanding mortgage-backed bonds stipulated by mortgage market regulations. None of the mortgage-backed bonds issued by the Group entities had replacement assets assigned to them. |
Subordinated Liabilities
Subordinated Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Subordinated Liabilities [Abstract] | |
Subordinated Liabilities | 23. Subordinated liabilities a) Breakdown The detail, by currency of issue, of Subordinated liabilities in the consolidated balance sheets is as follows: Millions of euros December 31, 2017 Outstanding issue amount in foreign Annual currency interest Currency of issue 2017 2016 2015 (millions) rate (%) Euro 11,240 8,044 8,001 3.93 % U.S. dollar 8,008 9,349 9,174 11,996 5.51 % Pound sterling 874 949 851 250 8.94 % Brazilian real 131 136 1,878 146 7.00 % Other currencies 1,257 1,424 1,249 Balance at end of year 21,510 19,902 21,153 Of which, preference shares 404 413 449 Of which, preference participations 8,369 6,916 6,749 Note 51 contains a detail of the residual maturity periods of subordinated liabilities at each year-end and of the related average interest rates in each year. b) The changes in Subordinated liabilities in the last three years were as follows: Millions of euros 2017 2016 2015 Balance at beginning of year 19,902 21,153 17,132 Net inclusion of entities in the Group (Note 3) 11 — — Placements 2,994 2,395 4,787 Of which: Banco Santander, S.A. (Including issuer entities) 2,894 2,328 2,878 Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México — 59 — Santander UK Group Holdings plc — — 1,377 Santander UK plc — — 521 Société Financière de Banque – SOFIB (currently PSA Banque France) 78 — — Redemptions and repurchases (*) (870) (2,812) (1,029) Of which: Banco Santander (Brasil) S.A. — (716) (60) Santander Consumer Finance, S.A. — (70) — Santander UK plc (60) (51) (466) Bank Zachodni WBK S.A. — — (237) Banco Santander, S.A. (Including issuer entities) (453) (1,976) (193) Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México — — (64) Santander Bank, National Association (285) — — Santander Holdings USA, Inc. (72) — — Exchange differences and other movements (527) (834) 263 Balance at end of year 21,510 19,902 21,153 (*) c) This item includes the preference shares (participaciones preferentes) and other financial instruments issued by the consolidated companies which, although equity for legal purposes, do not meet the requirements for classification as equity (preference shares). The preference shares do not carry any voting rights and are non-cumulative. They were subscribed to by non-Group third parties and, except for the shares of Santander UK plc referred to below, are redeemable at the discretion of the issuer, based on the terms and conditions of each issue. At December 31, 2017, Santander UK plc had a GBP 200 million subordinated issue which is convertible, at Santander UK plc’s option, into preference shares of Santander UK plc, at a price of GBP 1 per share. For the purposes of payment priority, preference shares (participaciones preferentes) are junior to all general creditors and to subordinated deposits. The remuneration of these securities, which have no voting rights, is conditional upon the obtainment of sufficient distributable profit and upon the limits imposed by Spanish banking regulations on equity. The other issues are subordinated and, therefore, for the purposes of payment priority, they are junior to all general creditors of the issuers. At December 31, 2017, the following issues were convertible into Bank shares: On March 5, May 8 and September 2, 2014, Banco Santander announced that its executive committee had resolved to launch three issues of preference shares contingently convertible into newly issued ordinary shares of the Bank (“CCPSs”) for a nominal amount of €1,500 million, USD 1,500 million and €1,500 million, respectively. The interest on the CCPSs, payment of which is subject to certain conditions and is discretionary, was set at 6.25% per annum for the first five years (to be repriced thereafter by applying a 541 basis-point spread to the 5-year Mid-Swap Rate) for the March issue, at 6.375% per annum for the first five years (to be repriced thereafter by applying a 478.8 basis-point spread to the 5-year Mid-Swap Rate) for the May issue and at 6.25% per annum for the first seven years (to be repriced every five years thereafter by applying a 564 basis-point spread to the 5-year Mid-Swap Rate) for the September issue. On March 25, May 28, and September 30, 2014, the Bank of Spain confirmed that the CCPSs were eligible as Additional Tier 1 capital under the new European capital requirements of Regulation (EU) No 575/2013. The CCPSs are perpetual, although they may be redeemed early in certain circumstances and would convert into newly issued ordinary shares of Banco Santander if the Common Equity Tier 1 ratio of the Bank or its consolidated group fell below 5.125%, calculated in accordance with Regulation (EU) No 575/2013. The CCPSs are traded on the Global Exchange Market of the Irish Stock Exchange. Furthermore, on January 29, 2014 Banco Santander (Brasil) S.A. launched an issue of Tier 1 perpetual subordinated notes for a nominal amount of USD 1,248 million, of which the Group has acquired 89.6%. The notes are perpetual and would convert into ordinary shares of Banco Santander (Brasil) S.A. if the common equity Tier 1 ratio, calculated as established by the Central Bank of Brazil, were to fall below 5.125%. On December 30, 2016 Grupo Financiero Santander México, S.A.B. of C.V. made an issue of perpetual subordinated notes for a nominal amount of USD 500 million of which the Group has acquired 88.2%. Perpetual obligations are automatically converted into shares when the Regulatory Capital Index (CET1) is equal to or less than 5.125% at the conversion price. On April 25, and September 29, 2017, Banco Santander issued preferred shares contingently convertible in newly issued common shares of the Bank (the "CCPP"), for a nominal amount of 750 million euros, and 1,000 million euros, respectively. The remuneration of the CCPPs, whose payment is subject to certain conditions and is also discretionary, was fixed at 6.75% annually for the first five years (being reviewed thereafter by applying a margin of 680.3 basis points over the 5-year Mid-Swap Rate) for the issue paid out in April, and at 5.25% annually for the first six years (reviewed thereafter by applying a margin of 499.9 basis points over the 5-year Mid-Swap Rate) for the issue paid out in September. The accrued interests from the subordinated liabilities during 2017 amounted to €966 million (€945 and €934 million during 2016 and 2015, respectively). Interests from the “CCPS” during 2017 amounted to €395 million (€334 and €276 million in 2016 and 2017, respectively). |
Other Financial Liabilities
Other Financial Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Financial Liabilities [Abstract] | |
Other Financial Liabilities | 24. Other financial liabilities The detail of Other financial liabilities in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 Trade payables 1,559 1,230 1,264 Clearing houses 767 676 708 Tax collection accounts: Public Institutions 3,212 2,790 2,489 Factoring accounts payable 290 180 194 Unsettled financial transactions 6,375 7,418 5,584 Other financial liabilities 16,225 14,222 10,638 28,428 26,516 Note 51 contains a detail of the residual maturity periods of other financial liabilities at each year-end. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
Provisions. | |
Provisions | 25. Provisions a) Breakdown The detail of Provisions in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 Provision for pensions and other obligations post-employments 6,345 6,576 6,356 Other long term employee benefits 1,686 1,712 1,916 Provisions for taxes and other legal contingencies 3,181 2,994 2,577 Provisions for commitments and guarantees given (Note 2) 617 459 618 Of which: due to country risk 3 3 2 Other provisions 2,660 2,718 3,027 Provisions 14,489 14,459 14,494 b) The changes in Provisions in the last three years were as follows: Millions of euros 2017 2016 2015 Provisions Provisions Provisions Provisions Provisions for other for Provisions for Provisions for other for Provisions long commitments Provisions for other commitments for post- long Term commitments for post- Terms and for post- long Term and employment employee and guarantees Other employment employee guarantees Other employment employee guarantees Other plans benefits given provisions Total plans benefits given provisions Total plans benefits given provisions Total Balances at beginning of year 6,576 1,712 459 5,712 14,459 6,356 1,916 618 5,604 14,494 7,074 2,338 654 5,310 15,376 Net inclusion of entities in the Group 59 184 146 1,365 1,754 11 8 (4) 13 28 16 1 8 162 187 Additions charged to income: 237 293 (49) 2,863 3,344 227 368 (40) 2,235 2,790 291 224 (1) 2,958 3,472 Interest expense(Note 39) 175 23 — — 198 170 31 — — 201 228 42 — — 270 Personnel expenses (Note 47) 82 6 — — 88 73 8 — — 81 85 11 — — 96 Provisions or reversion of provisions (20) 264 (49) 2,863 3,058 (16) 329 (40) 2,235 2,508 (22) 171 (1) 2,958 3,106 Addition 2 264 606 3,855 24 377 226 3,024 3,651 9 217 238 3,632 4,096 Release (22) — (655) (992) (40) (48) (266) (789) (1,143) (31) (46) (239) (674) (990) Other additions arising from insurance contracts linked to pensions (7) — — — (7) (3) — — — (3) (18) — — — (18) Changes in value recognized in equity 369 — — — 369 1,275 — — — 1,275 (575) — — — (575) Payments to pensioners and pre-retirees with a charge to internal provisions (355) (498) — — (853) (367) (603) — — (970) (347) (667) — — (1,014) Benefits paid due to settlements (260) — — — (260) (20) — — — (20) — — — — — Insurance premiums paid — — — — — (1) — — — (1) (1) — — — (1) Payments to external funds (273) — — — (852) — — — (852) (146) — — — (146) Amounts used — — (3) (2,997) (3,000) — — (2) (2,149) (2,151) — — — (1,684) (1,684) Transfer, exchange differences and other changes (1) (5) 64 (1,102) (1,044) (50) 23 (113) 9 (131) 62 20 (43) (1,142) (1,103) Balances at end of year 6,345 1,686 617 5,841 14,489 6,576 1,712 459 5,712 14,459 6,356 1,916 618 5,604 14,494 c) Provision for pensions and other obligations post –employments and Other long term employee benefits The detail of Provisions for pensions and similar obligations is as follows: Millions of euros 2017 2016 2015 Provisions for post-employment plans - Spanish entities 4,274 4,701 4,822 Provisions for other similar obligations - Spanish entities 1,643 1,664 1,817 Of which: Pre-retirements 1,630 1,644 1,801 Provisions for post-employment plans - Santander UK plc 323 306 150 Provisions for post-employment plans - Other foreign subsidiaries 1,748 1,569 1,384 Provisions for other similar obligations - Other foreign subsidiaries 43 48 99 Provision for pensions and other obligations post – employments and Other long term employee benefits 8,031 8,288 8,272 Of which: Defined benefits 8,026 8,277 8,263 i. At December 31, 2017, 2016 and 2015, the Spanish entities had post-employment benefit obligations under defined contribution and defined benefit plans. In addition, in various years some of the consolidated entities offered certain of their employees the possibility of taking pre-retirement and, therefore, provisions are recognized each year for the obligations to employees taking pre-retirement -in terms of salaries and other employee benefit costs- from the date of their pre-retirement to the date of effective retirement. In 2017, in parallel and simultaneously, Banco Santander and Banco Popular reached an agreement with the workers' representatives to implement a pre-retirement and incentivized retirement plan, which is expected to welcome 1,100 employees during the month of January 2018, increasing the provision set up to cover these commitments to €248 million (€361 and 217 million in 2016 and 2015, respectively), and it is shown under "liquidation paid benefits.". In October 2017, the Bank and the workers' representatives reached an agreement for the elimination and compensation of certain passive rights arising from extra-covenant improvement agreements. The effect of the settlement of the mentioned commitments is shown in the tables included below. The expenses incurred by the Spanish Companies in respect of contributions to defined contribution plans amounted to €90 million in 2017 (2016: €93 million; 2015: €99 million). The amount of the defined benefit obligations was determined on the basis of the work performed by independent actuaries using the following actuarial techniques: 1. Valuation method: projected unit credit method, which sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. 2. Actuarial assumptions used: unbiased and mutually compatible. Specifically, the most significant actuarial assumptions used in the calculations were as follows: Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Annual discount rate 1.40% and 1.38% B. Popular 1.50% 1.75% 1.40% 1.50% 1.75% Mortality tables PERM/F-2000 PERM/F-2000 PERM/F-2000 PERM/F-2000 PERM/F-2000 PERM/F-2000 Cumulative annual CPI growth 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Annual salary increase rate B. Popular 1.75% in 2018 and Rest B. Santander 1.25% 2.00% (*) 2.00% (*) N/A N/A N/A Annual social security pension increase rate 1.00% 1.00% 1.00% N/A N/A N/A Annual benefit increase rate N/A N/A N/A 0% and 1.50% 0% and 1.50% 0% and 1.50% (*) The discount rate used for the flows was determined by reference to high-quality corporate bonds (at least AA in euros) with terms consistent with those of the obligations. The portfolio of bonds taken into consideration excludes callable, puttable and sinkable bonds which could distort the indices. Any changes in the main assumptions could affect the calculation of the obligations. At December 31, 2017, if the discount rate used had been decreased or increased by 50 basis points, there would have been an increase or decrease in the present value of the post-employment obligations of +5.37% to - 4.92 %, respectively, and an increase or decrease in the present value of the long-term obligations of + 1.05% to -1.03%. These changes would be offset in part by increases or decreases in the fair value of the assets and insurance contracts linked to pensions. 3. The estimated retirement age of each employee is the first at which the employee is entitled to retire or the agreed-upon age, as appropriate. The fair value of insurance contracts was determined as the present value of the related payment obligations, taking into account the following assumptions: Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2017 Expected rate of return on plan assets 1.40 % 1.50 % 1.75 % N/A N/A N/A Expected rate of return on reimbursement rights 1.40 % 1.50 % 1.75 % N/A N/A N/A The funding status of the defined benefit obligations in 2017 and the four preceding years is as follows: Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013 Present value of the obligations: To current employees 138 50 48 62 50 — — — — — Vested obligations to retired employees 5,662 4,423 4,551 4,708 4,483 — — — — — To pre-retirees — — — — — 1,647 1,644 1,801 2,220 2,149 Long-service bonuses and other benefits — — — — — 13 13 12 13 11 Other 112 383 380 307 257 — — — 4 1 5,912 4,856 4,979 5,077 4,790 1,660 1,657 1,813 2,237 2,161 Less - Fair value of plan assets 1,640 157 157 167 157 17 — — — — Provisions - Provisions for pensions 4,272 4,699 4,822 4,910 4,633 1,643 1,657 1,813 2,237 2,161 Of which: Internal provisions for pensions 4,036 4,432 4,524 4,565 4,293 1,642 1,657 1,813 2,237 2,161 Insurance contracts linked to pensions (Note 14) 238 269 299 345 342 1 — — — — Unrecognized net assets for pensions (2) (2) (1) — (2) — — — — — The amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations are as follows: Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Current service cost 16 11 12 1 1 2 Interest cost (net) 79 91 100 21 27 37 Expected return on insurance contracts linked to pensions (4) (5) (6) — — — Provisions or reversion of provisions Actuarial (gains)/losses recognized in the year — — — 13 6 (8) Past service cost — 6 4 — — — Pre-retirement cost — 6 4 248 355 213 Other (2) (21) (28) — (1) (33) 89 88 86 283 388 211 In addition, in 2017 Other comprehensive income – Items not reclassified to profit or loss – Actuarial gains or (-) losses on defined benefit pension plans increased by €41 million with respect to defined benefit obligations (2016: an increase of €141 million; 2015: an increase of €145 million). The changes in the present value of the accrued defined benefit obligations were as follows: Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Present value of the obligations at beginning of year 4,856 4,979 5,077 1,657 1,813 2,237 Incorporation of Group companies, net 1,563 — — 202 — — Current service cost 16 11 12 1 1 2 Interest cost 94 95 105 21 27 37 Pre-retirement cost — 6 4 248 355 213 Effect of curtailment/settlement (2) (21) (28) — — (33) Benefits paid (388) (353) (327) (490) (570) (657) Benefits paid due to settlements (260) — — — — (1) Past service cost — 6 4 — — — Actuarial (gains)/losses 57 136 124 13 6 (8) Demographic actuarial (gains)/losses (7) 15 24 10 (1) (12) Financial actuarial (gains)/losses 64 121 100 3 7 4 Exchange differences and other items (24) (3) 8 8 25 23 Present value of the obligations at end of year 5,912 4,856 4,979 1,660 1,657 1,813 The changes in the fair value of plan assets and of insurance contracts linked to pensions were as follows: Plan assets Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Fair value of plan assets at beginning of year 157 157 167 — — — Incorporation of Group companies, net 1,507 — — 18 — — Expected return on plan assets 15 4 5 — — — Benefits paid (58) (8) (17) (1) — — Contributions/(surrenders) 3 9 1 — — — Actuarial gains/(losses) 24 (2) (3) — — — Exchange differences and other items (8) (3) 4 — — — Fair value of plan assets at end of year 1,640 157 157 17 — — Insurance contracts linked to pensions Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Fair value of insurance contracts linked to pensions at beginning of year 269 299 345 — — — Incorporation of Group companies, net — — — 2 — — Expected return on insurance contracts linked to pensions 4 5 6 — — — Benefits paid (29) (32) (34) (1) — — Paid premiums 1 — — — — — Actuarial gains/(losses) (7) (3) (18) — — — Fair value of insurance contracts linked to pensions at end of year 238 269 299 1 — — In view of the conversion of the defined-benefit obligations to defined-contribution obligations, the Group has not made material current contributions in Spain in 2017 to fund its defined-benefit pension obligations. The plan assets and the insurance contracts linked to pensions are instrumented mainly through insurance policies. The following table shows the estimated benefits payable at December 31, 2017 for the next ten years: Millions of euros 2018 808 2019 703 2020 610 2021 523 2022 449 2023 to 2027 1,579 ii. At the end of each of the last three years, the businesses in the United Kingdom had post-employment benefit obligations under defined contribution and defined benefit plans. The expenses incurred in respect of contributions to defined contribution plans amounted to €82 million in 2017 (2016: €81 million; 2015: €90 million). The amount of the defined benefit obligations was determined on the basis of the work performed by independent actuaries using the following actuarial techniques: 1. Valuation method: projected unit credit method, which sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. 2. Actuarial assumptions used: unbiased and mutually compatible. Specifically, the most significant actuarial assumptions used in the calculations were as follows: 2017 2016 2015 Annual discount rate 2.49 % 2.79 % 3.74 % Mortality tables 108/86 S2 Light 116/98 S1 Light TMC 116/98 S1 Light TMC Cumulative annual CPI growth 3.15 % 3.12 % 2.98 % Annual salary increase rate 1.00 % 1.00 % 1.00 % Annual pension increase rate 2.94 % 2.92 % 2.83 % The discount rate used for the flows was determined by reference to high-quality corporate bonds (at least AA in pounds sterling) that coincide with the terms of the obligations. The portfolio of bonds taken into consideration excludes callable, puttable and sinkable bonds which could distort the indices. Any changes in the main assumptions could affect the calculation of the obligations. At December 31, 2017, if the discount rate used had been decreased or increased by 50 basis points, there would have been an increase or decrease in the present value of the obligations of +/- 9.50%. If the inflation assumption had been increased or decreased by 50 basis points, there would have been an increase or decrease in the present value of the obligations of +/- 6.29%. These changes would be offset in part by increases or decreases in the fair value of the assets. The funding status of the defined benefit obligations in 2017 and the four preceding years is as follows: Millions of euros 2017 2016 2015 2014 2013 Present value of the obligations 13,056 12,955 12,271 11,959 10,120 Less- Fair value of plan assets 13,239 13,118 12,880 12,108 9,455 Provisions - Provisions for pensions (183) (163) (609) (149) 665 Of which: Internal provisions for pensions 323 306 150 256 806 Net assets for pensions (506) (469) (759) (405) (141) The amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations are as follows: Millions of euros 2017 2016 2015 Current service cost 36 31 39 Interest cost (net) (6) (22) (5) 30 9 34 In addition, in 2017 Other comprehensive income – Items not reclassified to profit or loss – Actuarial gains or (-) losses on defined benefit pension plans increased by €121 million with respect to defined benefit obligations (2016: an increase of €621 million; 2015: a decrease of €435 million). The changes in the present value of the accrued defined benefit obligations were as follows: Millions of euros 2017 2016 2015 Present value of the obligations at beginning of year 12,955 12,271 11,959 Incorporation of Group companies, net — — 51 Current service cost 36 31 39 Interest cost 347 407 466 Benefits paid (445) (332) (342) Contributions made by employees 20 20 25 Past service cost — — — Actuarial (gains)/losses 602 2,315 (656) Demographic actuarial (gains)/losses (184) (59) (364) Financial actuarial (gains)/losses 786 2,374 (292) Exchange differences and other items (459) (1,757) 729 Present value of the obligations at end of year 13,056 12,955 12,271 The changes in the fair value of the plan assets were as follows: Millions of euros 2017 2016 2015 Fair value of plan assets at beginning of year 13,118 12,880 12,108 Incorporation of Group companies, net — — 66 Expected return on plan assets 353 429 471 Benefits paid (445) (332) (342) Contributions 208 304 59 Actuarial gains/(losses) 481 1,694 (222) Exchange differences and other items (476) (1,857) 740 Fair value of plan assets at end of year 13,239 13,118 12,880 In 2018 the Group expects to make current contributions to fund these obligations for amounts similar to those made in 2017. The main categories of plan assets as a percentage of total plan assets are as follows: 2017 2016 2015 Equity instruments 20 % 25 % 23 % Debt instruments 46 % 49 % 53 % Properties 13 % 12 % 15 % Other 21 % 14 % 9 % The following table shows the estimated benefits payable at December 31, 2017 for the next ten years: Millions of euros 2018 284 2019 285 2020 304 2021 327 2022 352 2023 to 2027 2,065 iii. Other foreign subsidiaries Certain of the consolidated foreign entities have acquired commitments to their employees similar to post-employment benefits. At December 31, 2017, 2016 and 2015, these entities had defined-contribution and defined-benefit post-employment benefit obligations. The expenses incurred in respect of contributions to defined contribution plans amounted to €99 million in 2017 (2016: €92 million; 2015: €90 million). The actuarial assumptions used by these entities (discount rates, mortality tables and cumulative annual CPI growth) are consistent with the economic and social conditions prevailing in the countries in which they are located. Specifically, the discount rate used for the flows was determined by reference to high-quality corporate bonds, except in the case of Brazil where there is no extensive corporate bond market and, accordingly the discount rate was determined by reference to the series B bonds issued by the Brazilian National Treasury Secretariat for a term coinciding with that of the obligations. In Brazil the discount rate used was between 9.53% and 9.65%, the CPI 4.00% and the mortality table the AT-2000. Any changes in the main assumptions could affect the calculation of the obligations. At December 31, 2017, if the discount rate used had been decreased or increased by 50 basis points, there would have been an increase or decrease in the present value of the obligations of +/- 5.14%. These changes would be offset in part by increases or decreases in the fair value of the assets. The funding status of the obligations similar to post-employment benefits and other long-term benefits in 2017 and the four preceding years is as follows: Millions of euros Of which: Business in 2017 Brazil 2016 2015 2014 2013 Present value of the obligations 9,534 7,046 9,876 8,337 10,324 9,289 Less- Of which: with a charge to the participants 193 193 153 133 151 133 Fair value of plan assets 7,927 6,188 8,445 7,008 8,458 7,938 Provisions - Provisions for pensions 1,414 665 1,278 1,196 1,715 1,218 Of which: Internal provisions for pensions 1,787 994 1,613 1,478 1,999 1,512 Net assets for pensions (98) (54) (52) (28) (8) (8) Unrecognized net assets for pensions (275) (275) (283) (254) (276) (286) The amounts recognized in the consolidated income statements in relation to these obligations are as follows: Millions of euros 2017 2016 2015 Current service cost 35 38 43 Interest cost (net) 104 105 138 Provisions or reversion of provisions Actuarial (gains)/losses recognized in the year 1 (9) (1) Past service cost 3 18 1 Pre-retirement cost — (9) — Other (19) (37) (1) 124 106 180 In addition, in 2017 Other comprehensive income – Items not reclassified to profit or loss – Actuarial gains or (-) losses on defined benefit pension plans increased by €207 million with respect to defined benefit obligations (2016: an increase of €513 million; 2015: a decrease of €285 million). In December 2011, the financial entities of Portugal, including Banco Santander Totta, S.A. made a partial transfer of the pension commitments to the Social Security. Consequently, Banco Santander Totta, S.A. carried out the transfer of the corresponding assets and liabilities and the current value of the net commitments of the fair value of the corresponding assets of the plan, as at December 31, 2011, under Provisions - Funds for pensions and similar obligations. In 2016, the collective bargaining agreement of the banking sector was approved, consolidating the sharing of responsibility for the pension commitments between the State and the banks. On the other hand, in 2016 the Group in Brazil updated the recognition of its obligations of certain health benefits in the terms stipulated in the regulation that develops them and that establishes the coverage of this benefit in equal proportion between the sponsor and partners. The effect of this liquidation, together with that of the businesses in Portugal, is shown in the following tables under the headings "benefits paid due to settlements". The changes in the present value of the accrued obligations were as follows: Millions of euros 2017 2016 2015 Present value of the obligations at beginning of year 9,876 8,337 10,324 Incorporation of Group companies, net 165 171 26 Current service cost 35 38 43 Interest cost 807 802 778 Pre-retirement cost — (9) — Effect of curtailment/settlement (19) (37) (1) Benefits paid (716) (690) (639) Benefits paid due to settlements (24) (1,352) — Contributions made by employees 6 8 8 Past service cost 3 18 1 Actuarial (gains)/losses 404 1,269 (271) Demographic actuarial (gains)/losses (140) 439 393 Financial actuarial (gains)/losses 544 830 (664) Exchange differences and other items (1,003) 1,321 (1,932) Present value of the obligations at end of year 9,534 9,876 8,337 The changes in the fair value of the plan assets were as follows: Millions of euros 2017 2016 2015 Fair value of plan assets at beginning of year 8,445 7,008 8,458 Incorporation of Group companies, net 166 154 9 Expected return on plan assets 732 732 667 Benefits paid (683) (637) (594) Benefits paid due to settlements (24) (1,328) — Contributions 94 559 109 Liquidation gains/(losses) — — 1 Actuarial gains/(losses) 203 687 43 Exchange differences and other items (1,006) 1,270 (1,685) Fair value of plan assets at end of year 7,927 8,445 7,008 In 2018 the Group expects to make contributions to fund these obligations for amounts similar to those made in 2017. The main categories of plan assets as a percentage of total plan assets are as follows: 2017 2016 2015 Equity instruments 6 % 7 % 12 % Debt instruments 84 % 88 % 84 % Properties 3 % 1 % 1 % Other 7 % 4 % 3 % The following table shows the estimated benefits payable at December 31, 2017 for the next ten years: Millions of euros 2018 620 2019 636 2020 653 2021 670 2022 689 2023 to 2027 3,689 d) Provisions - Provisions for taxes and other legal contingencies and Provisions - Other provisions, which include, inter alia, provisions for restructuring costs and tax-related and non-tax-related proceedings, were estimated using prudent calculation procedures in keeping with the uncertainty inherent to the obligations covered. The definitive date of the outflow of resources embodying economic benefits for the Group depends on each obligation. In certain cases, these obligations have no fixed settlement period and, in other cases, depend on the legal proceedings in progress. The detail, by geographical area, of Provisions for taxes and other legal contingencies and Other provisions is as follows: Millions of euros 2017 2016 2015 Recognized by Spanish companies 1,666 1,148 1,332 Recognized by other EU companies 1,127 1,300 1,766 Recognized by other companies 3,048 3,264 2,506 Of which: Brazil 2,504 2,715 2,016 5,841 5,712 5,604 Set forth below is the detail, by type of provision, of the balance at December 31, 2017, 2016 and 2015 of Provisions for taxes and other legal contingencies and Other provisions. The types of provision were determined by grouping together items of a similar nature: Millions of euros 2017 2016 2015 Provisions for taxes 1,006 1,074 997 Provisions for employment-related proceedings (Brazil) 868 915 581 Provisions for other legal proceedings 1,307 1,005 999 Provision for customer remediation 885 685 916 Regulatory framework-related provisions 101 253 308 Provision for restructuring 360 472 404 Other 1,314 1,308 1,399 5,841 5,712 5,604 Relevant information is set forth below in relation to each type of provision shown in the preceding table: The provisions for taxes include provisions for tax-related proceedings. The provisions for employment-related proceedings (Brazil) relate to claims filed by trade unions, associations, the prosecutor’s office and ex-employees claiming employment rights to which, in their view, they are entitled, particularly the payment of overtime and other employment rights, including litigation concerning retirement benefits. The number and nature of these proceedings, which are common for banks in Brazil, justify the classification of these provisions in a separate category or as a separate type from the rest. The Group calculates the provisions associated with these claims in accordance with past experience of payments made in relation to claims for similar items. When claims do not fall within these categories, a case-by-case assessment is performed and the amount of the provision is calculated in accordance with the status of each proceeding and the risk assessment carried out by the legal advisers. The provisions for other legal proceedings include provisions for court, arbitration or administrative proceedings (other than those included in other categories or types of provisions disclosed separately) brought against Santander Group companies. The provisions for customer remediation include mainly the estimated cost of payments to remedy errors relating to the sale of certain products in the UK and the estimated amount related to the floor clauses of Banco Popular. To calculate the provision for customer remediation, the best estimate of the provision made by management is used, which is based on the estimated number of claims to be received and, of these, the number that will be accepted, as well as the estimated average payment per case. The regulatory framework-related provisions include mainly the provisions relating to the FSCS (Financial Services Compensation Scheme), the Bank Levy in the UK and in Poland the provision related to the Banking Tax. The provisions for restructuring include only the costs arising from restructuring processes carried out by the various Group companies. Qualitative information on the main litigation is provided in Note 25.e to the consolidated financial statements. Our general policy is to record provisions for tax and legal proceedings in which we assess the chances of loss to be probable and we do not record provisions when the chances of loss are possible or remote. We determine the amounts to be provided for as our best estimate of the expenditure required to settle the corresponding claim based, among other factors, on a case-by-case analysis of the facts and the legal opinion of internal and external counsel or by considering the historical average amount of the loss incurred in claims of the same nature. The definitive date of the outflow of resources embodying economic benefits for the Group depends on each obligation. In certain cases, the obligations do not have a fixed settlement term and, in others, they depend on legal proceedings in progress. The changes in Provisions for taxes and other legal contingencies and Other provisions are set forth in Note 25.d. With respect to Brazil, the main charges to the income statement in 2017 were €355 million for civil contingencies (2016: €201 million; 2015: €289 million) and €505 million for employment-related claims (2016: €395 million; 2015: €370 million). This charge was offset in part by the use of the available provisions, of which €388 million corresponded to employment-related payments (2016: €284 million; 2015: €241 million), €203 million to civil payments (2016: €239 million; 2015: €273 million). In the UK, period provisions of €164 million were recognized in connection with customer remediation (2016: €179 million; 2015: €689 million), of €106 million in connection with the regulatory framework (Bank Levy and Financial Services Compensation Scheme (FSCS)) (2016: €173 million; 2015: €243 million), and of €44 million for restructuring (2016: €129 million and 2015: €56 million), these increases were offset by the use of €277 million of provisions for customer remediation (2016: €355 million; 2015: €227 million), €151 million in payments relating to Bank Levy and FSCS (2016: €169 million; 2015: €233 million) and €50 million for restructuring in 2017 (2016: €49 million; 2015: €41 million). In addition, €99 million have been provisioned derived from the regulatory framework and paid in the year in Poland and €125 million of restructuring for Consumer businesses. Regarding Spain, in 2017 €425 million of restructuring were allocated (2016: €244 million) to the integration plan related to the acquisition of Banco Popular, which has been registered by its nature, part of 'Provisions for restructuring 'and part in' Provisions for pensions and other retirement benefits defined post-employment and Other long-term employee benefits', increase offset by the use of €162 million (2016: €206 million). Additionally, €223 million of provisions are included for compensation to customers derived from the floor clause from Banco Popular. e) Litigation and other matters i. Tax-related litigation At December 31, 2017, the main tax-related proceedings concerning the Group were as follows: - Legal actions filed by Banco Santander (Brasil) S.A. and certain Group companies in Brazil challenging the increase in the rate of Brazilian social contribution tax on net income from 9% to 15% stipulated by Interim Measure 413/2008, ratified by Law 11,727/2008, a provision having been recognized for the amount of the estimated loss. - Legal actions filed by Banco Santander, S.A. (currently Banco Santander (Brasil) S.A.) and other Group entities claiming their right to pay the Brazilian PIS and COFINS social contributions only on the income from the provision of services. In the case of Banco Santander, S.A., the legal action was declared unwarranted and an appeal was filed at the Federal Regional Court. In September 2007 the Federal Regional Court found in favor of Banco Santander, S.A., but the Brazilian authorities appealed against the judgment at the Federal Supreme Court. On April 23, 2015, the Federal Supreme Court issued a decision granting leave for the extraordinary appeal filed by the Brazilian authorities with regard to the PIS contribution to proceed, and dismissing the extraordinary appeal lodged by the Brazilian Public Prosecutor’s Office in relation to the COFINS contribution. The Federal Supreme Court has not yet handed down its decision on the PIS contribution and, with regard to the COFINS contribution, on May 28, 2015, the Federal Supreme Court in plenary session unanimously rejected the extraordinary appeal filed by the Brazilian Public Prosecutor’s Office, and the petition for clarification ("embargos de declaraçao") subsequently filed by the Brazilian Public Prosecutor’s Office, which on September 3, 2015 admitted that no further appeals may be filed. In the case of Banco ABN AMRO Real, S.A. (currently Banco Santander (Brasil) S.A.), in March 2007 the court found in its favor, but the Brazilian authorities appealed against the judgment at the Federal Regional Court, which handed down a decision partly upholding the appeal in September 2009. Banco Santander (Brasil) S.A. filed an appeal at the Federal Supreme Court. Law 12,865/2013 established a program of payments or deferrals of certain tax and social security debts, under which any entities that availed themselves of the program and withdrew the legal actions brought by them were exempted from paying late-payment interest. In November 2013 Banco Santander (Brasil) S.A. partially availed itself of this program but only with respect to the legal actions brought by the former Banco ABN AMRO Real, S.A. in relation to the period from September 2006 to April 2009, and with respect to other minor actions brought by other entities in its Group. However, the legal actions brought by Banco Santander, S.A. and those of Banco ABN AMRO Real, S.A. relating to the periods prior to September 2006, for which a provision for the estimated loss was recognized, still persist. - Banco Santander (Brasil) S.A. and other Group companies in Brazil have appealed against the assessments issued by the Brazilian tax authorities questioning the deduction of loan losses in their income tax returns (IRPJ and CSLL) on the ground that the relevant requirements under the applicable legislation were not met. No provision was recognized in connection with the amount considered to be a contingent liability. In August 2017, the Bank and other entities of th |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Miscellaneous liabilities [abstract] | |
Other Liabilities | 26. Other liabilities The detail of Other liabilities in the consolidated balance sheets is as follows: Millions of euros 2017 2016 2015 Transactions in transit 811 994 744 Accrued expenses and deferred income 6,790 6,507 6,562 Other 4,990 3,569 2,915 12,591 11,070 10,221 |
Tax matters
Tax matters | 12 Months Ended |
Dec. 31, 2017 | |
Tax matters | |
Tax matters | 27. Tax matters a) Pursuant to current legislation, the Consolidated Tax Group includes Banco Santander (as the Parent) and the Spanish subsidiaries that meet the requirements provided for in Spanish legislation regulating the taxation of the consolidated profits of corporate groups (as the controlled entities). Banco Popular and its Spanish subsidiaries are taxed in 2017, likewise, in a tax consolidation system, incorporating themselves as subsidiaries to the Consolidated Tax Group in 2018. The other Group companies file income tax returns in accordance with the tax regulations applicable to them. b) In 2015 notification was received of the final agreed payments relating to the assessments arising from the outcome of the tax audit of the Consolidated Tax Group of the years 2005 to 2007, which were signed partly on an uncontested basis and partly on a contested basis. As the Parent of the Consolidated Tax Group, in accordance with the advice of its external lawyers, Banco Santander, S.A. considers that the aforementioned final agreed payments should not have a material impact on the consolidated financial statements as there are sound defense arguments in relation to the appeals filed against them. As a result, no provision has been recognized in this connection. As regards the tax inspections relating to prior years, in 2016 notified of the execution agreement was received of the Supreme Court judgment on the years 2001 and 2002, without a material impact on the consolidated financial statements. Also, in 2014 an audit by the tax authorities was initiated at the Consolidated Tax Group in relation to the years up to 2011, and the Consolidated Tax Group has the years subject to that audit and the subsequent years up to and including 2017 open for review in relation to the main taxes applicable to it. Likewise, the aid recovery procedure for the EC decision of October 15, 2014 related to the deduction of the financial goodwill in indirect acquisitions commenced in 2017. Regarding Banco Popular and subsidiaries integrated in its own Tax Group, exercises 2010 to 2017 inclusive are subject to review. In 2017, partial-scope verification and investigation proceedings have been initiated in relation to the 2016. The other entities have the corresponding years open for review, pursuant to their respective tax regulations. Because of the possible different interpretations which can be made of the tax regulations, the outcome of the tax audits of the years reviewed and of the open years might give rise to contingent tax liabilities which cannot be objectively quantified. However, the Group's tax advisers consider that it is unlikely that such tax liabilities will arise, and that in any event the tax charge arising therefrom would not materially affect the Group's consolidated financial statements. c) The reconciliation of the income tax expense calculated at the tax rate applicable in Spain (30%) to the income tax expense recognized and the detail of the effective tax rate are as follows: Millions of euros 2017 2016 2015 Consolidated profit (loss) before tax: From continuing operations 12,091 10,768 9,547 From discontinued operations — — — 12,091 10,768 9,547 Income tax at tax rate applicable in Spain (30%) 3,628 3,230 2,864 By the effect of application of the various tax rates applicable in each country (*) 539 312 158 Of which: Brazil 656 396 300 United Kingdom (78) (63) (146) United States 68 94 156 Chile (48) (54) (60) Effect of profit or loss of associates and joint ventures (211) (133) (111) Effect of deduction of goodwill in Brazil (164) (184) (133) Effect of reassessment of deferred taxes (282) (20) 30 Reversal of tax liabilities (**) — — (1,071) Permanent differences 374 77 476 Current income tax 3,884 3,282 2,213 Effective tax rate 32.12 % 30.48 % 23.18 % Of which: Continuing operations 3,884 3,282 2,213 Discontinued operations — — — Of which: Current taxes 3,777 1,493 4,070 Deferred taxes 107 1,789 (1,857) Taxes paid in the year 4,137 2,872 2,205 (*) (**) d) In addition to the income tax recognized in the consolidated income statement, the Group recognized the following amounts in consolidated equity in 2017, 2016 and 2015: Millions of euros 2017 2016 2015 Other comprehensive income Items not reclassified to profit or loss 60 364 (231) Actuarial gains or (-) losses on defined benefit pension plans 60 364 (231) Items that may be reclassified to profit or loss — (694) 448 Cash flow hedges 108 (136) 51 Financial assets available for sale (97) (552) 384 Debt instruments (366) (368) 418 Equity instruments 269 (184) (34) Other recognized income and expense of investments in subsidiaries, joint ventures and associates (11) (6) 13 Total 60 (330) 217 e) Tax assets in the consolidated balance sheets includes debit balances with the Public Treasury relating to deferred tax assets. Tax liabilities includes the liability for the Group’s various deferred tax liabilities. On June 26, 2013, the Basel III legal framework was included in European law through Directive 2013/36 (CRD IV) and Regulation 575/2013 on prudential requirements for credit institutions and investment firms (CRR), directly applicable in every Member State as from January 1, 2014, albeit with a gradual timetable with respect to the application of, and compliance with, various requirements. This legislation establishes that deferred tax assets, the use of which relies on future profits being obtained, must be deducted from regulatory capital. In this regard, pursuant to Basel III, in recent years several countries have amended their tax regimes with respect to certain deferred tax assets so that they may continue to be considered regulatory capital since their use does not rely on the future profits of the entities that generate them (referred to hereinafter as "monetizable tax assets"). Italy had a very similar regime to that described above, which was introduced by Decree-Law no. 225, of December 29, 2010, and amended by Law no. 10, of February 26, 2011. In addition, in 2013 in Brazil, by means of Provisional Measure no. 608, of February 28, 2013 and, in Spain, through Royal Decree-Law 14/2013, of November 29 confirmed by Law 27/2014, of November 27 tax regimes were established whereby certain deferred tax assets (arising from provisions to allowances for loan losses in Brazil and provisions to allowances for loan losses, provisions to allowances for foreclosed assets and provisions for pension and pre-retirement obligations in Spain) may be converted into tax receivables in specific circumstances. As a result, their use does not rely on the entities obtaining future profits and, accordingly, they are exempt from deduction from regulatory capital. In 2015 Spain completed its regulations on monetizable tax assets with the introduction of a financial contribution which will involve the payment of 1.5% for maintaining the right to monetize which will be applied to the portion of the deferred tax assets that qualify under the legal requirements as monetizable assets generated prior to 2016. In a similar manner, Italy, by decree of May 3, 2016 has introduced a fee of 1.5% annually to maintain the monetizable of part of the deferred tax assets. The detail of deferred tax assets, by classification as monetizable or non-monetizable assets, and of deferred tax liabilities at December 31, 2017, 2016 and 2015 is as follows: Millions of euros 2017 2016 2015 Monetizable Monetizable Monetizable (*)(**) Other (*) Other (*) Other Tax assets: 11,046 12,164 9,649 11,615 8,887 13,158 Tax losses and tax credits — 4,457 — 4,934 — 4,808 Temporary differences 11,046 7,707 9,649 6,681 8,887 8,351 Of which: Non-deductible provisions — 2,336 — 1,645 — 1,631 Valuation of financial instruments — 530 — 1,042 — 2,231 Loan losses 7,461 1,159 6,082 940 5,330 827 Pensions 3,585 723 3,567 641 3,557 475 Valuation of tangible and intangible assets — 1,077 — 537 686 Tax liabilities: — 4,837 — 5,694 — 5,565 Temporary differences — 4,837 — 5,694 — 5,565 Of which: Valuation of financial instruments — 1,207 — 1,105 — 896 Valuation of tangible and intangible assets — 1,256 — 1,916 — 1,727 Investments in Group companies — 808 — 1,265 — 1,249 (*) (**) The Group only recognizes deferred tax assets for temporary differences or tax loss and tax credit carryforwards where it is considered probable that the consolidated entities that generated them will have sufficient future taxable profits against which they can be utilized. The deferred tax assets and liabilities are reassessed at the reporting date in order to ascertain whether any adjustments need to be made on the basis of the findings of the analysis performed. These analyses take into account, inter alia: (i) the results generated by the various entities in prior years, (ii) each entity or tax group’s projected earnings, (iii) the estimated reversal of the various temporary differences, based on their nature, and (iv) the period and limits established by the legislation of each country for the recovery of the various deferred tax assets, thereby concluding on each entity or tax group’s ability to recover its recognized deferred tax assets. The projected earnings used in these analyses are based on the financial budgets approved by the Group’s directors for the various entities applying constant growth rates not exceeding the average long-term growth rate for the market in which the consolidated entities operate, in order to estimate the earnings for subsequent years considered in the analyses. Relevant information is set forth below for the main countries which have recognized deferred tax assets: Spain The deferred tax assets recognized at the Consolidated Tax Group total €10,494 million, of which €5,874 million were for monetizable temporary differences with the right to conversion into a credit against the Public Finance, €1,516 million for other temporary differences and €3,104 million for tax losses and credits. On the other hand, deferred tax assets recognized by the Popular Group amount to €3,340 million, from which €2,036 million have arisen as a result of monetizable temporary differences with the right to convert to a credit against the Public Treasury, as has been mentioned above (including the €486 million whose conversion has already been requested in 2017). The resting amount mainly belongs to other temporary differences. The Group estimates that the recognized deferred tax assets for temporary differences will be recovered in a maximum period of 15 years. This period would also apply to the recovery of the recognized tax loss and tax credit carryforwards. Brazil The deferred tax assets recognized in Brazil total €5,591 million, of which €2,939 million were for monetizable temporary differences, €2,277 million for other temporary differences and €375 million for tax losses and credits. The Group estimates that the recognized deferred tax assets for temporary differences, tax losses and credits will be recovered in approximately 10 years. United States The deferred tax assets recognized in the United States total €1,205 million, of which €310 million were for temporary differences and €895 million for tax losses and credits. The Group estimates that the recognized deferred tax assets for temporary differences will be recovered before 2027. The recognized tax loss and tax credit carryforwards will be recovered before 2029. Mexico The net deferred tax assets recognized in Mexico total €480 million, substantially all of which were for temporary differences. The Group estimates that substantially all the recognized deferred tax assets for temporary differences will be recovered in 3 years. The changes in Tax assets - Deferred and Tax liabilities - Deferred in the last three years were as follows: Millions of euros Foreign currency balance (Charge)/Credit translation to asset and Balances at differences liability Acquisition Balances at December 31, (Charge)/ and other valuation for the year December 31, 2016 Credit to income items adjustments (net) 2017 Deferred tax assets 21,264 (675) (756) (1) 3,378 23,210 Tax losses and tax credits 4,934 (279) (205) — 7 4,457 Temporary differences 16,330 (396) (551) (1) 3,371 18,753 Of which: monetizable 9,649 (185) (455) — 2,037 11,046 Deferred tax liabilities (5,694) 568 414 19 (144) (4,837) Temporary differences (5,694) 568 414 19 (144) (4,837) 15,570 (107) (342) 18 3,234 18,373 Millions of euros Foreign currency balance (Charge)/Credit translation to asset and Balances at differences liability Acquisitions Balances at December 31, (Charge)/Credit and other valuation for the year December 31, 2015 to income items adjustments (net) 2016 Deferred tax assets 22,045 (1,311) 1,355 (551) (274) 21,264 Tax losses and tax credits 4,808 194 110 — (178) 4,934 Temporary differences 17,237 (1,505) 1,245 (551) (96) 16,330 Of which: monetizable 8,887 49 713 — — 9,649 Deferred tax liabilities (5,565) (478) 98 (26) 277 (5,694) Temporary differences (5,565) (478) 98 (26) 277 (5,694) 16,480 (1,789) 1,453 (577) 3 15,570 Millions of euros Foreign currency balance (Charge)/Credit translation to asset and Balances at differences liability Acquisitions Balances at December 31, (Charge)/Credit and other valuation for the year December 31, 2014 to income items adjustments (net) 2015 Deferred tax assets 22,164 2,330 (2,831) 356 26 22,045 Tax losses and tax credits 5,650 (449) (399) — 6 4,808 Temporary differences 16,514 2,779 (2,432) 356 20 17,237 Of which: monetizable 8,444 1,199 (794) 38 — 8,887 Deferred tax liabilities (4,527) (473) (200) (73) (292) (5,565) Temporary differences (4,527) (473) (200) (73) (292) (5,565) 17,637 1,857 (3,031) 283 (266) 16,480 Also, the Group did not recognize deferred tax assets relating to tax losses, tax credits for investments and other incentives amounting to approximately €7,550 million, the use of which €370 million is subject, among other requirements, to time limits. f) The following significant tax reforms were approved in 2017 and previous years: The Tax Cuts and Jobs Act (the 2017 Act) was approved in the United States on December 22, 2017. The main amendments introduced in this tax regulation affect the US corporate tax rates, some business-related exclusions and deductions and credits. Likewise, this amendment will entail an international tax impact for many companies that operate internationally. The main impact is derived from the decrease in the federal tax rate that will be reduced from 35% to 21%, which will affect both the amount and estimation of the recoverability of deferred tax assets and liabilities during 2017 as well as the profit after tax from 2018. The estimated impact on the Group, arisen from the affected subsidiaries, which was already recorded as at December 31, 2017, did not represent a significant amount in the attributable profit. On December 29, 2017, Law No. 27430 on the reform of the Argentine tax system was published, whose main measures entered into force on January 1, 2018, therefore it had no effect on the Group's accounts in 2017. Among other measures, it is established a gradual reduction of the income tax from the 35% applicable until 2017, to 30% in 2018 and 2019, and up to 25% in 2020 and ahead, which is complemented by a dividend withholding of 7% for those distributed with a charge to 2018 and 2019 financial years, and 13% if distributed with a charge to 2020 onwards. On December 2016, the Royal Decree-Law 3-2016 had been approved in Spain in December 2016 under which the following tax measures had been adopted with application in 2016: (i) The limit for the integration of deferred monetizable tax assets, as well as for set-off for the negative tax base has been reduced( the limit has been reduced from 70% to 25% of the tax base), (ii) this regulation sets out a new limit of 50% of the tax rate for the application of deductions in order to avoid double taxation, (iii) this regulation also sets out the compulsory impairment reversion for deductible participations in previous years by one fifths independently from the recovery of the participated, and (iv) the regulation finally includes the non-deductibility of the losses generated from the transmission of participations performed from January 1, 2017. The effects of this reform for the Consolidated Tax Group had been: (i) the consolidation in 2016 of deferred tax assets for impairment of non-deductible participations, in a non significant amount; (Ii) the integration in 2016 tax base and the next four fiscal years of a minimum reversal of the impairment of investments in shares that were tax deductible in years prior to 2013, will not have an adverse effect on the accounts for 2016 and 2017, since there are no legal restrictions on the availability of shares; (Iii) the slowdown in the consumption of credits for monetizable deferred tax assets; And negative tax bases and (iv) the limitation of the application of deductions to avoid double taxation, all this makes provision for an increase in the amount of taxes payable in Spain in the coming years by the consolidated tax group. In the United Kingdom, a progressive reduction was approved regarding the tax rate of the Corporate Tax, from 20% to 17% from April 1, 2020. The applicable rate from April 1, 2017 is of 19%. Also in 2015, a surcharge of 8% on the standard income tax rate for bank profits was approved. This surcharge will be applied from January 1, 2016. In addition, from 2015 customer remediation payments are no longer considered to be tax-deductible. In Brazil there was also an increase in the rate of the Brazilian social contribution tax on net income (CSL) from 15% to 20% (applicable from September 1, 2015), as a result of which the income tax rate (25%) plus the CSL rate total 45%. In Poland, the introduction of a tax on certain bank assets at a monthly rate of 0.0366%, which comes into force in 2016, was approved. As a consequence of the Chilean tax reform that was approved in Chile in 2012, the tax rate applicable in 2017 was 25.5% (24% in 2016 and it will be 27% in 2018). g) In compliance with the disclosure requirement established in the Listing Rules Instrument 2005 published by the UK Financial Conduct Authority, it is hereby stated that shareholders of the Bank resident in the United Kingdom will be entitled to a tax credit for taxes paid abroad in respect of withholdings that the Bank has to pay on the dividends to be paid to such shareholders if the total income of the dividend exceeds the amount of exempt dividends of GBP 2,000 for the year 2017/18. The shareholders of the Bank resident in the United Kingdom who hold their ownership interest in the Bank through Santander Nominee Service will be informed directly of the amount thus withheld and of any other data they may require to complete their tax returns in the United Kingdom. The other shareholders of the Bank resident in the United Kingdom should contact their bank or securities broker. Banco Santander, S.A. is part of the Large Business Forum and has adhered since 2010 to the Code of Good Tax Practices in Spain. Also Santander UK Plc. is a member of the HMRC’s Code of Practice on Taxation in the United Kingdom, actively participating in both cases in the cooperative compliance programs being developed by these Tax Administrations. |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2017 | |
Non-controlling interests Abstract | |
Non-controlling interests | 28. 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) The detail, by Group company, of Equity - Non-controlling interests is as follows: Millions of euros 2017 2016 2015 Bank Zachodni WBK S.A. 1,901 1,653 1,685 Banco Santander (Brasil) S.A. 1,489 1,784 1,190 Santander Consumer USA Holdings Inc. 1,479 1,963 1,506 Grupo PSA 1,305 1,149 801 Banco Santander - Chile 1,209 1,204 1,037 Grupo Financiero Santander México, S.A.B. de C.V. 1,056 1,069 1,296 Grupo Metrovacesa 836 449 560 Other companies (*) 1,481 1,208 1,270 10,756 10,479 9,345 Profit/(Loss) for the year attributable to non-controlling interests 1,588 1,282 1,368 Of which: Santander Consumer USA Holdings Inc. 368 256 329 Banco Santander (Brasil) S.A. 288 194 296 Banco Santander - Chile 264 215 191 Grupo PSA 206 171 122 Grupo Financiero Santander México, S.A.B. de C.V. 194 190 201 Bank Zachodni WBK S.A. 160 148 154 Other companies 108 108 75 12,344 11,761 10,713 (*) b) The changes in Non-controlling interests are summarized as follows: Millions of euros 2017 2016 2015 Balance at beginning of year 11,761 10,713 8,909 Other comprehensive income (583) 374 (572) Exchange differences (653) 360 (520) Cash flow hedge (11) 45 (1) Available for sale equity (2) (30) 22 Available for sale fixed income 71 38 (100) Other 12 (39) 27 Which of: Other comprehensive income — — 6 Other 1,166 674 2,376 Profit attributable to non-controlling interests 1,588 1,282 1,368 Modification of participation rates (819) (28) (168) Change of perimeter (39) (197) 761 Dividends paid to minority shareholders (665) (800) (461) Changes in capital and others concepts 1,101 417 876 Balance at end of year 12,344 11,761 10,713 In 2015 the Group acquired 50% of Société Financière de Banque – SOFIB (currently PSA Banque France), PSA Finance UK Limited and PSA Financial Services Spain, E.F.C., S.A. (see Note 3), thereby generating an increase in the balance of Non-controlling interests of €462 million, €148 million and €181 million. Also, the acquisition of a 13.8% interest in Metrovacesa, S.A. from Banco Sabadell, S.A. generated a decrease in the balance of Non-controlling interests of €271 million. During 2016, there was a decrease of €621 million in Non - controlling interests due to the operation of Metrovacesa, S.A. (See Note 3). Additionally, during the year 2016, the Group incorporated the remaining geographies included in the PSA framework agreement (Netherlands, Belgium, Italy, Germany, Brazil and Poland) (see Note 3), generating an increase in the balance of Non - controlling interests of €410 million. During the year 2017, the Group completed the acquisition of 9.65% of shares of Santander Consumer USA Holdings Inc. (See Note 3), which resulted in a reduction of €492 million in the balance of Non - controlling interests. The foregoing changes are shown in the Consolidated statement of changes in total equity. c) The financial information on the subsidiaries with significant non-controlling interests at December 31, 2017 is summarized below: Millions of euros (*) Grupo Banco Financiero Santander Santander Banco Santander Bank Consumer (Brasil) Santander - México, Zachodni USA S.A. Chile S.A.B de C.V. WBK S.A. Holdings Inc. Total assets 161,690 50,355 58,203 32,171 33,162 Total liabilities 145,040 45,321 53,267 27,235 27,537 Net assets 16,650 5,034 4,936 4,936 5,625 Total gross income 14,273 2,523 3,460 1,419 4,257 Total profit 2,887 859 904 432 585 (*) |
Other comprehensive income
Other comprehensive income | 12 Months Ended |
Dec. 31, 2017 | |
Other comprehensive income by item | |
Other comprehensive income | 29. Other comprehensive income The balances of Other comprehensive income include the amounts, net of the related tax effect, of the adjustments to assets and liabilities recognized temporarily in equity through the consolidated statement of recognized income and expense. 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 recognized income and expense presents items separately according to their nature, grouping together those which, pursuant to the applicable accounting standards, will not be subsequently reclassified to profit or loss when the requirements established by the related accounting standards are met. Also, with respect to items that may be reclassified to profit or loss, the consolidated statement of recognized income and expense includes changes in other comprehensive income as follows: - Revaluation gains (losses): includes the amount of the income, net of the expenses incurred in the year, recognized directly in equity. The amounts recognized in equity in the year remain under this item, even if in the same year they are transferred to the income statement or to the initial carrying amount of the assets or liabilities or are reclassified to another line item. - Amounts transferred to income statement: includes the amount of the revaluation gains and losses previously recognized in equity, even in the same year, which are recognized in the income statement. - Amounts transferred to initial carrying amount of hedged items: includes the amount of the revaluation gains and losses previously recognized in equity, even in the same year, which are recognized in the initial carrying amount of assets or liabilities as a result of cash flow hedges. - Other reclassifications: includes the amount of the transfers made in the year between the various valuation adjustment items. The amounts of these items are recognized gross, including the amount of the Other comprehensive income relating to non-controlling interests, and the corresponding tax effect is presented under a separate item, except in the case of entities accounted for using the equity method, the amounts for which are presented net of the tax effect. (a) Other comprehensive income – Items not reclassified to profit or loss – Actuarial gains or (-) losses on defined benefit pension plans include the actuarial gains and losses and the return on plan assets, less the administrative expenses and taxes inherent to the plan, and any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). Its variation is shown in the consolidated statement of income and expense. The provisions against equity in 2017 amounted to €157 million - See Note 25.b -, with the following breakdown: - Increase of €41 million in the accumulates actuarial losses relating to the Group´s entities in Spain, mainly due to the evolution experienced by the discount rate - decrease from 1.50% to 1.40%. - Increase of €121 million in the cumulative actuarial losses relating to the Group´s businesses in UK, mainly due to the evolution experienced by the main actuarial hypotheses -decrease in the discount rate from 2.79% to 2.49% and increase in inflation from 3.12% to 3.15 %-. - Increase of €276 million in accumulated actuarial losses corresponding to the Group's business in Brazil, mainly due to the reduction in the discount rate (from 10.92% to 9.53% in pension benefits and 10.84% to 9.65% in medical benefits), as well as variations in the other hypotheses. - Decrease of €281 million in accumulated actuarial profit or losses as a result of exchange rate and other effects, mainly in Brazil (depreciation of the real), and in UK (depreciation of the pound). b) Other comprehensive income – Items that may be reclassified to profit or loss - Hedges of net investments in foreign operations includes the net amount of changes in the value of hedging instruments in hedges of net investments in foreign operations, for the portion of these changes considered as effective hedges (See Note 11). Other comprehensive income – Items that may be reclassified to profit or loss - Exchange differences includes the net amount of exchange differences arising on non-monetary items whose fair value is adjusted against equity and the differences arising on the translation to euros of the balances of the consolidated entities whose functional currency is not the euro (See note 2.a). The changes in 2017 reflect negative effect of the sharp depreciation of the Brazilian real and U.S. dollar, whereas the changes in 2016 reflect the negative effect of the sharp depreciation of the Pound sterling and the positive effect of the appreciation of the Brazilian real. Of the change in the balance in these years, a loss of €1,704, €185 and €514 million in 2017, 2016 and 2015 relate to the measurement of goodwill. The detail, by country is as follows: Millions of euros 2017 2016 2015 Net balance at end of year (19,741) (12,995) (11,980) Of which: Brazilian real (11,056) (8,435) (10,679) Pound sterling (3,732) (2,996) 232 Mexican peso (2,230) (1,908) (1,497) Argentine peso (1,684) (1,309) (1,135) Chilean peso (866) (614) (711) U.S. dollar 555 2,849 2,342 Other (728) (582) (532) c) - Other comprehensive income – Items that may be reclassified to profit or loss - Cash flow hedges includes the gains or losses attributable to hedging instruments that qualify as effective hedges. These amounts will remain under this heading until they are recognized in the consolidated income statement in the periods in which the hedged items affect it (See Note 11). - Accordingly, amounts representing valuation losses will be offset in the future by gains generated by the hedged instruments. d) Items that may be reclassified to profit or loss - Financial assets available-for-sale Includes the net amount of unrealized changes in the fair value of assets classified as Financial assets available-for-sale (See Notes 7 and 8). The breakdown, by type of instrument and geographical origin of the issuer, of Other comprehensive income – Items that may be reclassified to profit or loss - Financial assets available-for-sale at December 31, 2017, 2016 and 2015 is as follows: Millions of euros December 31, 2017 December 31, 2016 December 31, 2015 Net Net Net revaluation revaluation revaluation Revaluation Revaluation gains/ Fair Revaluation Revaluation gains/ Fair Revaluation Revaluation gains/ Fair gains losses (losses) value gains losses (losses) value gains losses (losses) value Debt instruments Government debt securities and debt instruments issued by central banks Spain 660 (25) 635 48,217 610 (26) 584 32,729 641 (62) 579 35,283 Rest of Europe 306 (24) 282 20,244 50 (170) (120) 16,879 283 (47) 236 20,310 Latin America and rest of the world 404 (129) 275 39,132 167 (163) 4 35,996 42 (671) (629) 32,185 Private-sector debt securities 90 (128) (38) 20,888 117 (162) (45) 25,683 165 (253) (88) 29,409 1,460 (306) 1,154 128,481 944 (521) 423 111,287 1,131 (1,033) 98 117,187 Equity instruments Domestic Spain 5 (2) 3 1,373 48 (5) 43 1,309 66 (5) 61 1,140 International Rest of Europe 166 (2) 164 979 284 (4) 280 1,016 438 (14) 424 1,338 United States 14 (5) 9 560 21 — 21 772 14 (2) 12 980 Latin America and rest of the world 744 (6) 738 1,878 811 (7) 804 2,390 251 (2) 249 1,391 929 (15) 914 4,790 1,164 (16) 1,148 5,487 769 (23) 746 4,849 Of which: Listed 828 (5) 823 2,900 999 (11) 988 3,200 436 (15) 421 1,986 Unlisted 101 (10) 91 1,890 165 (5) 160 2,287 333 (8) 325 2,863 2,389 (321) 2,068 133,271 2,108 (537) 1,571 116,774 1,900 (1,056) 844 122,036 At each reporting date the Group assesses whether there is any objective evidence that the instruments classified as available-for-sale (debt securities and equity instruments) are impaired. This assessment includes but is not limited to an analysis of the following information: i) the issuer’s economic and financial position, the existence of default or late payment, analysis of the issuer’s solvency, the evolution of its business, short-term projections, trends observed with respect to its earnings and, if applicable, its dividend distribution policy; ii) market-related information such as changes in the general economic situation, changes in the issuer’s sector which might affect its ability to pay; iii) changes in the fair value of the security analyzed, analysis of the origins of such changes - whether they are intrinsic or the result of the general uncertainty concerning the economy or the country - and iv) independent analysts’ reports and forecasts and other independent market information. In the case of quoted equity instruments, when the changes in the fair value of the instrument under analysis are assessed, the duration and significance of the fall in its market price below cost for the Group is taken into account. As a general rule, for these purposes the Group considers a significant fall to be a 40% drop in the value of the asset or a continued fall over a period of 18 months. Nevertheless, it should be noted that the Group assesses, on a case-by-case basis, each of the securities that have suffered losses, and monitors the performance of their prices, recognizing an impairment loss as soon as it is considered that the recoverable amount could be affected, even though the price may not have fallen by the percentage or for the duration mentioned above. If, after the above assessment has been carried out, the Group considers that the presence of one or more of these factors could affect recovery of the cost of the asset, an impairment loss is recognized in the income statement for the amount of the loss registered in equity under Other comprehensive income – Items that may be reclassified to profit or loss – Items not reclassified to profit or loss – Other Valuation adjustments. Also, where the Group does not intend and/or is not able to hold the investment for a sufficient amount of time to recover the cost, the instrument is written down to its fair value. At the end of 2017, the Group carried out the analysis described above, registering in the impairment / reversal of financial assets available for sale in the consolidated income statement an amount of €10 million corresponding to the impairment of equity instruments (€14 and 111 million in 2016 and 2015, as well as a reversal of €25 million in 2016 and an impairment of €119 million in 2015 in debt instruments). At December 31, 2017, the losses incurred in more than twelve months recognized under Other comprehensive income – Items that may be reclassified to profit or loss - Financial assets available-for-sale arising from equity instruments are not significant. At December 31, 2017, the losses incurred in more than twelve months recognized under Other comprehensive income – Items that may be reclassified to profit or loss - Financial assets available-for-sale arising from debt securities are not significant. e) Other comprehensive income – Items that may be reclassified to profit or loss - Entities accounted for using the equity method includes the amounts of Other comprehensive income recognized in equity arising from associates and joint ventures. The changes in Other comprehensive income - Entities accounted for using the equity method were as follows: Millions of euros 2017 2016 2015 Balance at beginning of year (153) (232) (85) Revaluation gains/(losses) (84) 79 (156) Net amounts transferred to profit or loss 15 — 9 Balance at end of year (222) (153) (232) Of which: Zurich Santander Insurance América, S.L. (145) (84) (136) |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' equity | |
Shareholders' equity | 30. Shareholders’ equity Shareholders’ equity includes the amounts of equity contributions from shareholders, accumulated profit or loss recognized through the consolidated income statement, and components of compound financial instruments having the substance of permanent equity. Amounts arising from subsidiaries are presented in the appropriate items based on their nature. The changes in Shareholders’ equity are presented in the consolidated statement of changes in total equity. Significant information on certain items of Shareholders’ equity and the changes therein in 2017 is set forth below. |
Issued capital
Issued capital | 12 Months Ended |
Dec. 31, 2017 | |
Issued capital abstract | |
Issued capital | 31. Issued capital a) At December 31, 2014 the Bank’s share capital consisted of 12,584,414,659 shares with a total par value of €6,292 million. On January 8, 2015 the Group announced that its Board of Directors had resolved to increase capital through an accelerated bookbuilt (Accelerated Bookbuilt Offering) offering with disapplication of pre-emption rights. The capital increase amounted to €7,500 million, of which €607 million related to the par value of the 1,213,592,234 new shares issued and €6,893 million to the share premium. On January 29, April 29 and November 4, 2015, the bonus issues through which the Santander Dividendo Elección scrip dividend scheme is instrumented took place, whereby 262,578,993, 256,046,919 and 117,859,774 shares (1.90%, 1.82% and 0.82% of the share capital) were issued for an amount of €131 million, €128 million and €59 million, respectively. At December 31, 2015 the Bank’s share capital consisted of 14,434,492,579 shares with a total par value of €7,217 million. On November 4, 2016, a capital increase of €74 million was made, through which the Santander Dividendo Elección scrip dividend scheme took place, whereby 147,848,122 shares were issued (1.02% of the share capital). At December 31, 2016 the Bank’s share capital consisted of 14,582,340,701 shares with a total par value of €7,291 million. As a result of the acquisition of Banco Popular described in Note 3, and in order to strengthen and optimize the Bank's equity structure to provide adequate coverage of the acquisition, the Group, on July 3, 2017, reported on the agreement of the executive committee of Banco Santander to increase the capital of the Bank by €729 million by issuing and putting into circulation 1,458,232,745 new ordinary shares of the same class and series as the shares currently in circulation and with preferential subscription rights for the shareholders. The issue of new shares was carried out at a nominal value of fifty euro cents (€0.50) plus a premium of €4.35 per share, so the total issue rate of the new shares was €4.85 per share and the total effective amount of the capital increase (including nominal and premium) of €7,072 million. Each outstanding share had been granted a preferential subscription right during the preferential subscription period that took place from July 6 to 20, 2017, where 10 preferential subscription rights were required to subscribe 1 new share. On November 1, 2017, a capital increase of €48 million was made, through which the Santander Dividendo Elección scrip dividend scheme took place, whereby 95,580,136 shares were issued (0.6% of the share capital). Therefore, the Bank’s new capital consists of €8,068 million, represented by 16,136,153,582 shares of €0.50 of nominal value each one and all of them from a unique class and series. The Bank’s shares are listed on the Spanish Stock Market Interconnection System and on the New York, London, Milan, Lisbon, Buenos Aires, Mexico, São Paulo and Warsaw Stock Exchanges, and all of them have the same features and rights. Santander shares are listed on the London Stock Exchange under Crest Depository Interest (CDI’s), each CDI representing one Bank’s share. They are also listed on the New York Stock Exchange under American Depositary Receipts (BDRs), each BDR representing one share. At December 31, 2017, the only shareholders listed in the Bank’s shareholders register with ownership interests of more than 3% 1 were State Street Bank & Trust Company (13.32%), The Bank of New York Mellon Corporation (8.83%), Chase Nominees Ltd. (7.41%), EC Nominees Limited (3.43%) and Clearstream Banking S.A. (3.10%) and BNP Paribas (3.03%). However, the Bank considers that these ownership interests are held in custody on behalf of third parties and that none of them, as far as the Bank is aware, has an ownership interest of more than 3% of the Bank’s share capital 2 or voting power. (1) The threshold stipulated in Royal Decree 1362/2007 of October 19, which implemented the Spanish Securities Market Act 24/1988 of July 28 defining the concept of significant holding. (2) The website of the Comisión Nacional del Mercado de Valores (www.cnmv.es) contains a notice of significant holding published by Blackrock, Inc. on August 9, 2017, in which it notifies an indirect holding in the voting rights attributable to Bank shares of 5.940%, plus a further stake of 0.158% held through financial instruments. However, according to the Bank's shareholder register, Blackrock, Inc did not hold more than 3% of the voting rights on that date, or on December 31, 2017. As of December 31, 2017, the shareholders of the Bank did not have owners of shares resident in tax havens with a participation of more than 1% of the share capital. b) The Annual General Meeting of March 27, 2015 authorized the board to issue fixed-income securities, convertible into or exchangeable for shares of the Bank, for up to a total amount of the issue or issues of €10,000 million or the equivalent amount in another currency. The Bank’s directors are authorized to execute this resolution until March 27, 2020. The shareholders at the Annual General Meeting of March 18, 2016 also resolved to increase the Bank’s capital by a par value of €500 million and granted the board the broadest powers to set the date and establish the terms and conditions of this capital increase within one year from the date of the aforementioned Annual General Meeting. If the board does not exercise the powers delegated to it within the period established by the Annual General Meeting, these powers will be rendered null and void. In addition, the ordinary general meeting of shareholders of April 7, 2017 also agreed to delegate to the board of directors the broadest powers so that, within one year from the date of the meeting, it can indicate the date and set the conditions for a capital increase with the issuance of new shares, for an amount of €500 million. The capital increase will have no value or effect if, within the period of one year, the board of directors does not exercise the powers delegated to it. Likewise, the additional capital authorized by the ordinary general meeting of shareholders on April 7, 2017 is not more than 3,645,585,175 euros. The term available to the Bank's administrators to execute and carry out capital increases up to that limit ends on April 7, 2020. The agreement grants the board the power to totally or partially exclude the pre-emptive subscription right under the terms of article 506 of the Capital Companies Law, although this power is limited to 1,458,234,070 euros. At December 31, 2017 the shares of the following companies were listed on official stock markets: Banco Santander Río, S.A.; Grupo Financiero Santander México, S.A.B. de C.V.; Banco Santander – Chile; Cartera Mobiliaria, S.A., SICAV; Santander Chile Holding S.A.; Banco Santander (Brasil) S.A., Bank Zachodni WBK S.A. and Santander Consumer USA Holdings Inc. At December 31, 2017 the number of Bank shares owned by third parties and managed by Group management companies (mainly portfolio, collective investment undertaking and pension fund managers) or jointly managed was €52 million, which represented 0.32 % of the Bank’s share capital. In addition, the number of Bank shares owned by third parties and received as security was €217 million (equal to 1.35 % of the Bank’s share capital). At December 31, 2017 the capital increases in progress at Group companies and the additional capital authorized by their shareholders at the respective general meetings were not material at Group level (See Appendix V). |
Share premium
Share premium | 12 Months Ended |
Dec. 31, 2017 | |
Share Premium Abstract | |
Share premium | 32. Share premium Share premium includes the amount paid up by the Bank’s shareholders in capital issues in excess of the par value. The Spanish Limited Liability Companies Law expressly permits the use of the share premium account balance to increase capital at the entities at which it is recognized and does not establish any specific restrictions as to its use. The increase in Share premium in 2015 is the result of the capital increase of €6,893 million carried out on January 8, 2015 (see Note 31.a) and the reduction of €318 million to cater for the capital increases arising from the Santander Dividendo Elección scrip dividend scheme. The reduction of €74 million in 2016 is the result for the capital increases arising from the Santander Dividendo Elección scrip dividend scheme. The increase in the balance of Share premium in 2017 is the result of the capital increase of €6,343 million approved on July 3, 2017 (See note 31.a) and the reduction of €48 million is due the capital increases charge to reserve arising from the Santander Dividendo Elección program. Also, in 2017, 2016 and 2015 an amount of €154 million was transferred from the Share premium account to the Legal reserve (2016: €15 million; 2015: €185 million) (See note 33.b.i). |
Accumulated retained earnings
Accumulated retained earnings | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Retained Earnings | |
Accumulated retained earnings | 33. Accumulated retained earnings a) The balance of Equity - Accumulated gains and Other reserves includes the net amount of the accumulated results (profits or losses) recognized in previous years through the consolidated income statement which in the profit distribution were allocated in equity, the expenses of own equity instrument issues, the differences between the amount for which the treasury shares are sold and their acquisition price, as well as the net amount of the results accumulated in previous years, generated by the result of non-current assets held for sale, recognized through the consolidated income statement. b) The detail of Accumulated retained earnings and Reserves of entities accounted for using the equity method is as follows: Millions of euros 2017 2016 2015 Restricted reserves 2,880 2,686 2,708 Legal reserve 1,614 1,459 1,444 Own shares 1,212 1,173 1,210 Revaluation reserve Royal Decree-Law 7/1996 43 43 43 Reserve for retired capital 11 11 11 Unrestricted reserves 11,368 11,285 11,486 Voluntary reserves (*) 6,904 7,192 3,230 Consolidation reserves attributable to the Bank 4,464 4,093 8,256 Reserves of subsidiaries 36,862 34,568 31,275 Reserves of entities accounted for using the equity method 725 465 291 51,835 49,004 45,760 (*) i. Legal reserve Under the Consolidated Spanish Limited Liability Companies Law, 10% of net profit for each year must be transferred to the legal reserve. These transfers must be made until the balance of this reserve reaches 20% of the share capital. The legal reserve can be used to increase capital provided that the remaining reserve balance does not fall below 10% of the increased share capital amount. In 2017 the Bank transferred €154 million from the Share premium account to the Legal reserve (2016: €15 million; 2015: €185 million). Consequently, once again, after the capital increases described in Note 31 had been carried out, the balance of the Legal reserve reached 20% of the share capital, and at December 31, 2017 the Legal reserve was at the stipulated level. ii. Reserve for treasury shares Pursuant to the Consolidated Spanish Limited Liability Companies Law, a restricted reserve has been recognized for an amount equal to the carrying amount of the Bank shares owned by subsidiaries. The balance of this reserve will become unrestricted when the circumstances that made it necessary to record it cease to exist. Additionally, this reserve covers the outstanding balance of loans granted by the Group secured by Bank shares and the amount equivalent to loans granted by Group companies to third parties for the acquisition of treasury shares plus the own treasury shares amount. iii. Revaluation reserve Royal Decree Law 7/1996, of June 7 The balance of Revaluation reserve Royal Decree-Law 7/1996 can be used, free of tax, to increase share capital. From January 1, 2007, the balance of this account can be taken to unrestricted reserves, provided that the monetary surplus has been realized. The surplus will be deemed to have been realized in respect of the portion on which depreciation has been taken for accounting purposes or when the revalued assets have been transferred or derecognized. If the balance of this reserve were used in a manner other than that provided for in Royal Decree-Law 7/1996, of June 7, it would be subject to taxation. iv. Reserves of subsidiaries The detail, by company, of Reserves of subsidiaries, based on the companies' contribution to the Group (considering the effect of consolidation adjustments) is as follows: Millions of euros 2017 2016 2015 Banco Santander (Brasil) S.A. (Consolidated Group) 9,874 8,993 8,408 Santander UK Group 7,724 6,887 6,457 Group Santander Holdings USA. 4,150 4,091 3,440 Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México 3,229 3,255 2,977 Banco Santander Totta, S.A. (Consolidated Group) 2,821 2,593 2,165 Banco Santander - Chile 2,764 2,630 2,534 Santander Consumer Finance Group 2,465 2,027 1,549 Banco Santander Río S.A. 1,639 1,326 965 Bank Zachodni WBK S.A. 1,093 967 578 Santander Seguros y Reaseguros, Compañía Aseguradora, S.A. 638 824 754 Banco Santander (Suisse) S.A. 381 354 346 Santander Investment, S.A. 202 349 367 Cartera Mobiliaria, S.A., SICAV — 377 363 Exchange differences, consolidation adjustments and other companies (*) (118) (105) 372 36,862 34,568 31,275 Of which, restricted 2,777 2,730 2,445 (*) |
Other equity instruments and ow
Other equity instruments and own shares | 12 Months Ended |
Dec. 31, 2017 | |
Other equity instruments and own shares | |
Other equity instruments and own shares | 34. Other equity instruments and own shares a) Other equity instruments Other equity instruments includes the equity component of compound financial instruments, the increase in equity due to personnel remuneration, and other items not recognized in other “Shareholders’ equity” items. On September 8, 2017, Banco Santander issued contingent redeemable perpetual bonds (the “Fidelity Bonds”) amounting to €981 million nominal value -€686 million fair value- (See Note 1.h). b) Shareholders’ equity - Own shares includes the amount of own equity instruments held by all the Group entities. Transactions involving own equity instruments, including their issuance and cancellation, are recognized directly in 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 equity, net of any related tax effect. On October 21, 2013 and October 23, 2014 the Bank’s Board of Directors amended the regulation of its treasury share policy in order to take into account the criteria recommended by the CNMV, establishing limits on average daily purchase trading and time limits. Also, a maximum price per share was set for purchase orders and a minimum price per share for sale orders. The Bank’s shares owned by the consolidated companies accounted for 0.024% of issued share capital at December 31, 2017 (December 31, 2016: 0.010%; December 31, 2015: 0.279%). The average purchase price of the Bank’s shares in 2017 was €5.48 per share and the average selling price was €5.63 per share. The effect on equity, net of tax, arising from the purchase and sale of Bank shares was a €26 million of benefit in 2017 (2016: €15 million; 2015: €16 million). |
Memorandum items
Memorandum items | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Contingent Liabilities and Commitments [Abstract] | |
Memorandum items | 35. Memorandum items Memorandum items relates to balances representing rights, obligations and other legal situations 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 consolidated entities although they may not impinge on their net assets. a) Contingent liabilities and commitments includes all transactions under which an entity guarantees the obligations of a third party and which result from financial guarantees granted by the entity or from other types of contract. The detail is as follows: Millions of euros 2017 2016 2015 Financial guarantees 14,499 17,244 14,648 Financial bank guarantees 14,287 17,244 14,648 Sold credit derivatives 212 — — Non financial guarantees 31,396 24,477 23,047 Technical guarantees 30,273 23,684 22,526 Unconditionally cancellable guarantees 1,123 793 521 Irrevocable documentary credits 3,222 2,713 2,139 Irrevocable documentary credits 3,222 2,713 2,139 49,117 44,434 39,834 Millions of euros 2017 2016 2015 Drawable by third parties 207,671 202,097 195,647 Other contingent commitments 30,299 29,865 26,091 Financial asset forward purchase commitments 674 254 261 Regular way financial asset purchase contracts 1,054 4,273 485 Purchase contracts of financial assets 13,234 12,160 12,755 Documents delivered to clearing houses 12,030 12,656 12,251 Other contingent commitments 3,307 522 339 237,970 231,962 221,738 At December 31, 2017, the Group had recognized provisions of €617 million to cover for guarantees, contingent commitments and contingent liabilities (December 31, 2016: €459 million; December 31, 2015: €618 million) (see Note 25). And a doubtful exposure for an amount of €1,327 million as of December 31, 2017 and, €1,078 and €968 million euros as of December 31, 2016 and 2015, respectively. A significant portion of these guarantees will expire without any payment obligation materializing for the consolidated entities and, therefore, the aggregate balance of these commitments cannot be considered as an actual future need for financing or liquidity to be provided by the Group 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. i. Financial guarantees Financial guarantees includes, inter alia, financial guarantee contracts such as financial bank guarantees, credit derivatives sold, and risks arising from derivatives arranged for the account of third parties. ii. Non - Financial guarantees Non-financial guarantees: Include other guarantees different to those classified as financial, such as the technical guarantees as well as goods and services imports and exports guarantees. iii. Irrevocable documentary credits Irrevocable documentary credits: include the irrevocable payment commitments acquired against the delivery of documents. iv. Loan commitments granted: Loan commitments granted: Firm commitments of grating of credit under predefined terms and conditions, except for those that comply with the definition of derivatives as these can be settled in cash or through the delivery of issuance of another financial instrument. They include stand-by credit lines and long-term deposits. v. Other contingent liabilities Other contingent liabilities includes the amount of any contingent liability not included in other items. b) The detail of off-balance-sheet funds managed by the Group and by joint ventures is as follows: Millions of euros 2017 2016 2015 Investment funds 135,749 129,930 109,028 Pension funds 11,566 11,298 11,376 Assets under management 19,259 18,032 20,337 166,574 159,260 140,741 c) At December 31, 2017 the Group held in custody debt securities and equity instruments totaling €997,061 million (December 31, 2016: €965,648 million; December 31, 2015 €877,682 million) entrusted to it by third parties. |
Derivatives - held for trading
Derivatives - held for trading and hedging derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivatives - held for trading and hedging derivatives | |
Derivatives - held for trading and hedging derivatives | 36. Derivatives – held for trading and hedging derivatives The detail of the notional and/or contractual amounts and the market values of the trading and hedging derivatives held by the Group is as follows: Millions of euros 2017 2016 2015 Notional Market Notional Market Notional Market amount value amount value amount value Trading derivatives: Interest rate risk Forward rate agreements 190,553 (15) 370,244 (64) 175,661 (59) Interest rate swaps 3,312,025 974 3,092,360 804 2,839,940 3,095 Options, futures and other derivatives 540,424 (511) 565,635 (980) 505,655 (555) Credit risk Credit default swaps 25,136 68 38,827 37 54,056 46 Foreign currency risk Foreign currency purchases and sales 236,805 (29) 259,336 1,102 250,596 80 Foreign currency options 43,488 (37) 36,965 112 35,772 104 Currency swaps 295,753 (1,628) 321,316 (3,627) 342,401 (1,704) Securities and commodities derivatives and other 70,325 529 76,523 290 90,662 (697) 4,714,509 (649) 4,761,206 (2,326) 4,294,743 310 Hedging derivatives: Interest rate risk Interest rate swaps 157,042 (2,950) 155,047 (1,410) 175,199 (1,153) Options, futures and other derivatives 24,072 (284) 23,131 (4) 22,169 (54) Credit risk Credit default swaps — — 186 (1) 469 (5) Foreign currency risk Foreign currency purchases and sales 5,500 448 29,282 (1,066) 38,685 500 Foreign currency options — — 28 — — — Currency swaps 67,933 3,256 51,045 4,691 59,472 (496) Securities and commodities derivatives and other 724 23 319 11 299 (2) 255,271 493 259,038 2,221 296,293 (1,210) The notional and/or contractual amounts of the contracts entered into (shown above) do not reflect the actual risk assumed by the Group, since the net position in these financial instruments is the result of offsetting and/or combining them. This net position is used by the Group basically to hedge the interest rate, underlying asset price or foreign currency risk; the results on these financial instruments are recognized under Gains/losses on financial assets and liabilities (net) in the consolidated income statements and increase or offset, as appropriate, the gains or losses on the investments hedged (See Note 11). Additionally, in order to interpret correctly the results on the Securities and commodities derivatives shown in the foregoing table, it should be considered that these items relate mostly to securities options for which a premium has been received which offsets their negative market value. Also, this market value is offset by positive market values generated by symmetrical positions in the Group’s held-for-trading portfolio. The Group manages the credit risk exposure of these contracts through netting arrangements with its main counterparties and by receiving assets as collateral for its risk positions (See note 2.f). The notional amounts and fair values of the hedging derivatives, by type of hedge, are as follows: Millions of euros 2017 2016 2015 Notional Fair Notional Fair Notional Fair amount value amount value amount value Fair value hedges 151,380 (3,361) 146,191 (1,018) 214,591 (1,166) Cash flow hedges 83,770 3,469 88,905 4,025 63,912 (572) Hedges of net investments in foreign operations 20,121 385 23,942 (786) 17,790 528 255,271 493 259,038 2,221 296,293 (1,210) Following is a description of the main hedges (including the results of the hedging instrument and the hedged item attributable to the hedged risk): Hedge accounting The Group, as part of its financial risk management strategy and for the purpose of reducing mismatches in the accounting treatment of its transactions, enters into interest rate, foreign currency or equity hedging derivatives, depending on the nature of the hedged risk. In line with its objective, the Group classifies its hedges into the following categories: - Cash flow hedges: hedge the exposure to variability in cash flows associated with an asset, liability or highly probable forecast transaction. Thus, floating rate issues in foreign currencies, fixed rate issues in non-local currency, floating rate interbank financing and floating rate assets (bonds, commercial credit, mortgages, etc.) are hedged. - Fair value hedges: hedge the exposure to changes in the fair value of assets or liabilities attributable to an identified, hedged risk. Thus, the interest rate risk of assets and liabilities (bonds, loans, bills, issues, deposits, etc.) with coupons or fixed interest rates, investments in entities, issues in foreign currencies and deposits and other fixed rate liabilities are hedged. - Hedges of net investments in foreign operations: hedge the foreign currency risk of investments in subsidiaries domiciled in countries outside the euro zone. i. Cash flow hedges The change in fair value of the cash flow hedges, net of the related tax effect, is recognized under Total Equity Other comprehensive income – Items that may be reclassified to profit or loss - Valuation adjustments - Cash flow hedges in the Group's equity. The detail of the terms, from December 31, 2017 within which the amounts recognized under Other comprehensive income – Items that may be reclassified to profit or loss - Cash flow hedges will be recognized in the consolidated income statements in the coming years is as follows: Millions of euros Within 1 to More than 2017 1 year 5 year 5 years Total Debit balances (losses) 57 69 26 152 The net amount recognized as an equity valuation adjustment in 2017, as a result of the cash flow hedges, is a decrease of €317 million. The market value of the derivatives in portfolio cash flow hedges gave rise to a loss of €41 million at December 31, 2017. The net amount reclassified from equity by interest income / (charges) to the income statements of 2017 amounts to EUR-854 million. The impact on 2017 profit and loss of the ineffectiveness of the Group’s cash flow hedges was a net loss of €103 million. The main entities that use cash flow hedges, either macro-hedges or micro-hedges, are: · Santander UK, possessing micro-hedges of fixed rate currency issues, different to Sterling Pound, that hedge interest rate and exchange rate and possessing micro-hedges of variable mortgage rates in Sterling Pound. · Brazil, possessing hedges to cover Bank Deposit Certificates from interest rate and to cover active currency positions from exchange rate. ii. Fair value hedges The Group is making fair value hedges with derivatives for a total notional amount of €151,380 million. Of the total fair value hedges in the Group, €68,927 million are categorized as macro-hedges (79% approximately from the UK) and €82,453 million as micro-hedges (approximately 28% from Banco Santander and 26% approximately from the UK). In 2017 a net gain of €92 million was recognized (gains of €178 million on hedged items and gains of and losses of €86 million on hedging derivatives) on fair value hedging transactions. The main entities that have fair value hedges, either macro-hedges or micro-hedges, are: · Banco Santander possesses micro-hedges of interest rates on issues and government bonds, in addition two macro-hedge on loans from loans and issues and, · Santander UK possesses hedges of interest rate and exchange rate on mortgages, commercial/corporate loans and liability deposits, as well as macro-hedges of inflation linked bonds and micro-hedges of fixed rate issues. iii. Foreign currency hedges (net investments in foreign operations). The Santander Group assumes as a priority objective in risk management, to minimize - to the limit determined by those responsible for the Group's Financial Management - the impact on the calculation of the capital ratio of its permanent investments consolidated within the Group, and whose shares or corporate participation are legally nominated in a currency different from the Group´s. For this purpose, financial instruments (generally derivatives) are contracted in exchange rates, which hedge the impact on the capital ratio of forward exchange rates. At December 31, 2017 the total notional amount of the instruments hedging these investments was the equivalent of €20,786 million, of which €19,445 million related to foreign currency swaps and forwards and €1,341 million to spot foreign currency purchases/sales (spot). By currency, - Hedges of the Brazilian real including hedging Forex Forward Non Delivery amounting to €7,010 million (BRL 27,850 million), with a gain of €306 million. - The position in Mexican pesos is hedged through Forex Forwards and Forex Swaps with a notional amount of €2,051 million (MXN 48,523 million) and a gain of €52 million in the year. - The Polish zloty is hedged through Forex Forwards and Forex Swaps with a notional amount of €2,328 million (PLN 9,725 million) and a loss of €163 million in the year. - The hedging of the Chilean peso is instrumented through Forex Forward Non Delivery amounting to €2,994 million (CLP 2,206,000 million), with a gain of €21 million in the year. - The hedging of the Colombian peso is instrumented through Forex Forward Non Delivery with a notional amount of €13 million (COP 46,973 million), with a gain of €1 million in the year. - The investment in Norwegian krone is hedged through Forex Forwards and Forex Swaps amounting to €779 million (NOK 7,665 million), with a gain of €44 million. - The position in Chinese yuan is hedged through Forex Forward Non Delivery of €912 million (CNY 7,714 million). These instruments generated a loss of €16 million in the year. - The hedge of the pound sterling is instrumented through Forex Swap for the amount of €3,359 million (GBP 2,980 million). In addition, the investment in this currency is covered by spot purchases and/or spot sales of this currency against euros, amounting to €264 million (GBP 235 million), generating a net gain of €113 million in the year. Investments in U.S. dollars, Canadian dollars and Swiss francs are exclusively covered by purchases / sales of these currencies against the euro (Spot). The U.S. dollars hedged position amounted to €987 million at the end of the year (USD 1,183 million), with a loss in the year of €86 million. On the other hand, the position covered in Canadian dollars amounted to €15 million at the end of the year (CAD 23 million), with a gain in the year of €1 million. Finally, the hedged position in Swiss francs amounted to €75 million at the end of the year (CHF 88 million), generating a gain of €6 million in the year. At December 31, 2016 the total notional amount of the instruments hedging these investments was the equivalent of €21,680 million, of which €20,914 million related to foreign currency swaps and forwards and €766 million to spot foreign currency purchases/sales (spot). By currency, - Hedges of the Brazilian real including hedging Forex Forward Non Delivery amounting to €7,404 million (BRL 25,400 million), with a loss of €1,877 million. - The position in Mexican pesos was hedged through Forex Forwards and Forex Swaps with a notional amount of €2,140 million (MXN 46,593 million) and a gain of €247 million in the year. - The Polish zloty was hedged through Forex Forwards and Forex Swaps with a notional amount of €2,032 million (PLN 8,962 million) and a gain of €26 million in the year. - The hedging of the Chilean peso is instrumented through Forex Forward Non Delivery amounting to €3,773 million (CLP 2,670,000 million), with a loss of €447 million in the year. - The hedging of the Colombian peso was instrumented through Forex Forward Non Delivery with a notional amount of €33 million (COP 103,122 million), with a loss of €5 million in the year. - The investment in Norwegian krone is hedged through Forex Forwards and Forex Swaps amounting to €892 million (NOK 8,107 million), with a loss of €53 million. - The position in Chinese yuan was hedged through Forex Forward Non Delivery of €1,123 million (CNY 8,221 million). These instruments generated a gain of €6 million in the year. - The hedge of the pound sterling was instrumented through Forex Swap for the amount of €3,516 million (GBP 3,010 million). In addition, the investment in this currency is covered by spot purchases and/or spot sales of this currency against euros, amounting to €388 million (GBP 332 million), generating a net gain of €739 million in the year. In addition to the above, investments in US dollars, sterling, Canadian dollars and Swiss francs were hedged by purchases and sales of spot currency against euros (Spot). In the case of US dollars, derivatives (Forex Forward) existed for a notional amount of €304 million and, in addition, spot purchases / sales of this currency) for an amount of US 321 million, with a total loss in the year of €38 million. In the case of Canadian dollars, derivatives (Forex Forward) existed for a notional amount of €21 million and, in addition, spot purchases / sales of this currency) for an amount of CND 30 million, with a total loss in the year of €1 million. Finally, the position covered in Swiss francs amounts to €53 million at the end of the year (57 million Swiss francs), generating a loss of €1 million in that year. According to the purpose of these hedges, the purpose of which is to cover the forward rate, and because the notional amount of the hedging instruments used does not exceed the amount of the hedged item and, in addition, the foreign currencies of these transactions are the functional currencies of the parent company and of the business abroad, the effectiveness of these hedges is total, not being recorded in the income statement due to inefficiencies during 2017. |
Discontinued operations
Discontinued operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued operations | |
Discontinued Operations | 37. Discontinued operations No operations were discontinued in 2017, 2016 or 2015. |
Interest income
Interest income | 12 Months Ended |
Dec. 31, 2017 | |
Interest income. | |
Interest income | 38. Interest income Interest and similar income in the consolidated income statement comprises the interest accruing 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; and the rectifications of income as a result of hedge accounting. Interest is recognized gross, without deducting any tax withheld at source. The detail of the main interest and similar income items earned in 2017, 2016 and 2015 is as follows: Millions of euros 2017 2016 2015 Loans and advances - Central banks 1,881 2,090 1,392 Loans and advances - Credit institutions 1,840 2,388 1,845 Debt instruments 7,141 6,927 7,361 Loans and advances - Customers 43,640 42,578 45,445 Other interest 1,539 1,173 1,155 56,041 55,156 57,198 Most of the interest and similar income was generated by the Group’s financial assets that are measured either at amortized cost or at fair value through Other comprehensive income. |
Interest expense
Interest expense | 12 Months Ended |
Dec. 31, 2017 | |
Interest expense. | |
Interest expense | 39. Interest expense Interest expense and similar charges in the consolidated income statement includes the interest accruing in the year on all financial liabilities with an implicit or explicit return, including remuneration in kind, calculated by applying the effective interest method, irrespective of measurement at fair value; the rectifications of cost as a result of hedge accounting; and the interest cost attributable to provisions recorded for pensions. The detail of the main items of interest expense and similar charges accrued in 2017, 2016 and 2015 is as follows: Millions of euros 2017 2016 2015 Central banks deposits 216 127 79 Credit institution deposits 2,045 1,988 2,277 Customer deposits 11,074 12,886 12,826 Debt securities issued and Subordinated liabilities 6,651 7,767 7,899 Marketable debt securities 5,685 6,822 6,965 Subordinated liabilities (Note 23) 966 945 934 Provisions for pensions (Note 25) 198 201 270 Other interest 1,561 1,098 1,035 21,745 24,067 24,386 Most of the interest expense and similar charges was generated by the Group’s financial liabilities that are measured at amortized cost. |
Dividend income
Dividend income | 12 Months Ended |
Dec. 31, 2017 | |
Dividend income Abstract | |
Dividend income | 40. 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 detail of Income from dividends as follows: Millions of euros 2017 2016 2015 Dividend income classified as: Financial assets held for trading 234 217 266 Financial assets available-for-sale 150 196 189 384 413 455 |
Income from companies accounted
Income from companies accounted for using the equity method | 12 Months Ended |
Dec. 31, 2017 | |
Income from companies accounted for using the equity method abstract | |
Income from companies accounted for using the equity method | 41. Income from companies accounted for using the equity method Income from companies accounted for using the equity method comprises the amount of profit or loss attributable to the Group generated during the year by associates and joint ventures. The detail of Income from companies accounted for using the equity method is as follows: Millions of euros 2017 2016 2015 Zurich Santander Insurance América, S.L. 241 223 183 SAM Investment Holdings Limited 87 79 64 Wizink Bank, S.A. 36 — — Companhia de Crédito, Financiamento e Investimento RCI Brasil 19 12 28 Allianz Popular, S.L. 15 — — Other companies 306 130 100 704 444 375 |
Commission income
Commission income | 12 Months Ended |
Dec. 31, 2017 | |
Commission income | |
Commission income | 42. Commission income Commission income comprises the amount of all fees and commissions accruing in favor of the Group in the year, except those that form an integral part of the effective interest rate on financial instruments. The detail of Fee and commission income is as follows: Millions of euros 2017 2016 2015 Collection and payment services: Bills 368 295 271 Demand accounts 1,490 1,191 1,074 Cards 3,515 2,972 2,768 Orders 449 431 412 Cheques and other 154 133 134 5,976 5,022 4,659 Marketing of non-banking financial products: Investment funds 751 696 805 Pension funds 92 86 92 Insurance 2,517 2,428 2,350 3,360 3,210 3,247 Securities services: Securities underwriting and placement 374 282 252 Securities trading 302 287 303 Administration and custody 359 297 265 Asset management 251 201 222 1,286 1,067 1,042 Other: Foreign exchange 471 353 303 Financial guarantees 559 505 494 Commitment fees 283 286 314 Other fees and commissions 2,644 2,500 2,983 3,957 3,644 4,094 14,579 12,943 13,042 |
Commission expense
Commission expense | 12 Months Ended |
Dec. 31, 2017 | |
Commission expense | |
Commission expense | 43. Commission expense Commission expense shows the amount of all fees and commissions paid or payable by the Group in the year, except those that form an integral part of the effective interest rate on financial instruments. The detail of Fee and commission expense is as follows: Millions of euros 2017 2016 2015 Commissions assigned to third parties 1,831 1,639 1,593 Cards 1,391 1,217 1,201 By collection and return of effects 12 11 13 Other fees assigned 428 411 379 Other commissions paid 1,151 1,124 1,416 Brokerage fees on lending and deposit transactions 49 47 43 Sales of insurance and pension funds 205 204 159 Other fees and commissions 897 873 1,214 2,982 2,763 3,009 |
Gains or losses on financial as
Gains or losses on financial assets and liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Gains or losses on financial assets and liabilities | |
Gains or losses on financial assets and liabilities | 44. Gains or losses on financial assets and liabilities Gains/losses on financial assets and liabilities includes the amount of the Other comprehensive income of financial instruments, except those attributable to interest accrued as a result of application of the effective interest method and to allowances, and the gains or losses obtained from the sale and purchase thereof. a) The detail, by origin, of Gains/losses on financial assets and liability Millions of euros 2017 2016 2015 Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net 404 869 1,265 Of which Financial Assets available for sale 472 861 891 Debt instruments 316 464 760 Equity instruments 156 397 131 Gains or losses on financial assets and liabilities held for trading, net (*) 1,252 2,456 (2,312) Gains or losses on financial assets and liabilities measured at fair value through profit or loss, net (*) (85) 426 325 Gains or losses from hedge accounting, net (11) (23) (48) 1,560 3,728 (770) (*) As explained in Note 45, the above breakdown should be analyzed in conjunction with the exchange differences, net: Millions of euros 2017 2016 2015 Exchange differences, net 105 (1,627) 3,156 b) The detail of the amount of the asset balances is as follows: Millions of euros 2017 2016 2015 Loans and receivables: 40,875 40,390 48,129 Credit institutions 11,585 13,290 27,755 Customers 29,290 27,100 20,374 Debt instruments 39,836 52,320 47,681 Equity instruments 22,286 15,043 18,855 Derivatives 57,243 72,043 76,724 160,240 179,796 191,389 The Group mitigates and reduces this exposure as follows: - With respect to derivatives, the Group has entered into framework agreements with a large number of credit institutions and customers for the netting-off of asset positions and the provision of collateral for non-payment. At December 31, 2017 the actual credit risk exposure of the derivatives was €34,887 million. - Loans and advances to credit institutions and Loans and advances to customers included reverse repos amounting to € 28,563 million at December 31, 2017. Also, mortgage-backed assets totaled €2,602 million. - Debt instruments include € 34,605 million of Spanish and foreign government securities. At December 31, 2017 the amount of the change in the year in the fair value of financial assets at fair value through profit or loss attributable to variations in their credit risk (spread) was not material. The detail of the amount of the liability balances is as follows: Millions of euros 2017 2016 2015 Deposits (84,724) (48,863) (62,836) Central banks (9,142) (10,463) (18,664) Credit institutions (18,458) (5,059) (8,628) Customer (57,124) (33,341) (35,544) Marketable debt securities (3,056) (2,791) (3,373) Short positions (20,979) (23,005) (17,362) Derivatives (57,892) (74,369) (76,414) Other financial liabilities (589) — (1) (167,240) (149,028) (159,986) At December 31, 2017, the amount of the change in the fair value of financial liabilities at fair value through profit or loss attributable to changes in their credit risk during the year is not material. |
Exchange differences, net
Exchange differences, net | 12 Months Ended |
Dec. 31, 2017 | |
Exchange differences, net | |
Exchange differences, net | 45. Exchange differences, net Exchange differences shows basically the gains or losses on currency dealings, the differences that arise on translations of monetary items in foreign currencies to the functional currency, and those disclosed on non-monetary assets in foreign currency at the time of their disposal. The Group manages the currencies to which it is exposed together with the arrangement of derivative instruments and, accordingly, the changes in this line item should be analyzed together with those recognized under Gains/losses on financial assets and liabilities (see Note 44). |
Other operating income and expe
Other operating income and expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other operating income and expenses | |
Other operating income and expenses | 46. Other operating income and expenses Other operating income and Other operating expenses in the consolidated income statements include: Millions of euros 2017 2016 2015 Insurance activity 57 63 98 Income from insurance and reinsurance contracts issued 2,546 1,900 1,096 Of which: Insurance and reinsurance premium income 2,350 1,709 961 Reinsurance income 196 191 135 Expenses of insurance and reinsurance contracts (2,489) (1,837) (998) Of which: Claims paid, other insurance-related expenses and net provisions for insurance contract liabilities (2,249) (1,574) (740) Reinsurance premiums paid (240) (263) (258) Other operating income 1,618 1,919 1,971 Non- financial services 472 698 711 Other operating income 1,146 1,221 1,260 Of which, fees and commissions offsetting direct costs 192 145 115 Other operating expense (1,966) (1,977) (2,235) Non-financial services (302) (518) (590) Other operating expense: (1,664) (1,459) (1,645) Of which, Deposit Guarantee Fund (848) (711) (769) (291) 5 (166) Most of the Bank’s insurance activity is carried on in life insurance. |
Personnel expenses
Personnel expenses | 12 Months Ended |
Dec. 31, 2017 | |
Personnel expenses | |
Personnel expenses | 75% but < 90%
0.75 – 1 (*)
≤ 75%
0
(*)
-
Scale applicable to Santander Group’s 2015 RoTE with respect to the RoTE budgeted for the year:
RoTE in 2015
2015 RoTE
(% of budgeted 2016 RoTE)
coefficient
≥ 90%
1
> 75% but < 90%
0.75 – 1 (*)
≤ 75%
0
(*)
Based on the Group’s performance at the end of 2015, the coefficient to be applied was 91.50%.
For the first cycle, the following percentages were applied to 15% of the benchmark bonus in accordance with the relative performance of the Bank’s Total Shareholder Return (TSR) in 2014 compared to a benchmark group:
Santander’s
Percentage of
place in the
maximum shares
TSR ranking
to be delivered
1st to 8th
100
%
9th to 12th
50
%
13th and below
0
%
Since the Bank’s TSR was in fourth place, the applicable percentage was 100%.
Also, for the second cycle, the agreed-upon amount of the ILP for each beneficiary will be deferred over a period of three years and will be paid, where appropriate, at the beginning of 2019 (foreseeably, in the first quarter) based on compliance with the multiannual targets and other plan terms and conditions. Thus, prior to the payment date, the Board of Directors, following a proposal of the remuneration committee, will calculate the amount, where appropriate, to be received by each beneficiary based on the agreed-upon amount of the ILP. The multiannual targets, the related metrics and scales of compliance are as follows:
·
Relative performance of the Group’s EPS growth for 2015-2017 with respect to a benchmark group of 17 credit institutions
Position of Santander’s
EPS growth
2015 - 2017
EPS coefficient
1st to 5th
1
6th
0.875
7th
0.75
8th
0.625
9th
0.50
10th and below
0
·
Santander Group’s 2017 RoTE:
RoTE in 2017
RoTE
(%)
coefficient
≥ 12%
1
> 11% but < 12%
0.75 – 1(*)
≤ 11%
0
(*)
·
Employee satisfaction, measured by the inclusion or exclusion of the related Group company in 2017 among the “Top 3” best banks to work for.
o
Scale of compliance at country level:
Position among the
best banks to work
Employee
for in 2017
coefficient
1st to 3rd
1
4th or below
0
o
Scale of compliance at Santander Group level:
No. of main
markets in which
Santander is
ranked in the top
three of the best
banks to work for
Employee
in 2017
coefficient
6 or more
1
5 or less
0
-
Customer satisfaction, measured by the inclusion or exclusion of the related Group company in 2017 among the top three best banks in the customer satisfaction index.
o
Scale of compliance at country level:
Position among the
best banks as per
the customer
satisfaction index
Customer
in 2017
coefficient
1st to 3rd
1
4th or below
0
o
Scale of compliance at Santander Group level:
No. of main
markets in which
Santander is
ranked in the top
three of the best
banks in the
customer
satisfaction index
Customer
in 2017
coefficient
10
1
Between 6 and 9
0.2 - 0.8 (*)
5 or less
0
(*)
-
Customer loyalty, taking into account that the targets at Santander Group level are 17 million individual customers and 1.1 million SME and business customers at December 31, 2017.
o
Scales of compliance at country level:
SME and business
Individual customers (% of the
customers (% of the
budget for the
Individual
budget for the
Business
related market)
coefficient
related market)
coefficient
≥ 100%
1
≥ 100
%
1
> 90% but < 100%
0.5 - 1 (*)
> 90% but < 100
%
0.5 - 1 (*)
≤ 90%
0
≤ 90
%
0
(*)
o
Scales of compliance at Santander Group level:
SME and
Individual
business
customers
Individual
customers
Business
(millions)
coefficient
(millions)
coefficient
≥ 17
1
≥ 1.1
1
> 15 but < 17
0.5 - 1 (*)
> 1 but < 1.1
0.5 - 1 (*)
≤ 15
0
≤ 1
0
(*)
Based on the foregoing metrics and compliance scales and the data relating to the end of 2017, the amount accrued of the ILP for each beneficiary (the "Accrued Amount of the ILP") will be calculated by weighting the above coefficients by 0.25, 0.25, 0.2, 0.15, 0.075 and 0.075, respectively.
For the first cycle, the agreed-upon amount of the ILP for each beneficiary will be deferred over a period of three years and will be paid, where appropriate, in thirds in June 2016, 2017 and 2018 based on compliance with the multiannual TSR targets. Thus, for each payment date, the Board of Directors, following a proposal of the remuneration committee, will calculate the amount, where appropriate, to be received by each beneficiary applying to the third of the agreed-upon amount of the ILP for that year the percentage resulting from the following table:
Santander’s
Percentage of
place in the TSR
maximum shares
ranking
to be delivered
1st to 4th
100.0
%
5th
87.5
%
6th
75.0
%
7th
62.5
%
8th
50.0
%
9th and below
0
%
For the accrual for 2016, the benchmark TSR will be that accumulated between January 1, 2014 and December 31, 2015, for the accrual for 2017, the benchmark TSR will be that accumulated between January 1, 2014 and December 31, 2016 and for the accrual for 2018, the benchmark TSR will be that accumulated between January 1, 2014 and December 31, 2017. In 2016, a position in the RTA ranking has not been reached that determines the accrual of the first and second third, so it has been extinguished.
In addition to the requirement that the beneficiary remains in the Group’s employ, with the exceptions included in the plan regulations, the delivery of shares to be paid on the ILP payment date based on compliance with the related multiannual target is conditional upon none of the following circumstances existing -in the opinion of the Board of Directors following a proposal of the remuneration committee-, during the period prior to each of the deliveries as a result of the actions taken in 2014 and 2015, respectively: (i) poor financial performance of the Group; (ii) breach by the beneficiary of internal regulations, including, in particular, those relating to risks; (iii) material restatement of the Group’s financial statements, except when it is required pursuant to a change in accounting standards; or (iv) significant changes in the Group’s economic capital or risk profile.
(iv)
In 2016 and 2017, the Board of Directors of the Bank, at the proposal of the remuneration committee, approved the first and second cycle of the deferred variable remuneration plan linked to multi-year objectives that implements the variable remuneration corresponding to 2016 and 2017 for executive directors and certain executives (Including top management) of the Group’s first lines of responsibility (formerly Promontorio and Faro, before, Top Network managers). The cycles plan was approved by the general meeting on March 18, 2016 and April 7, 2017 with the aim of simplifying the remuneration structure, improving the ex ante risk adjustment and increasing the impact of the long-term objectives on the Group’s first guidelines. The plan also takes into account the recommendations issued in the Guidelines on sound remuneration policies under Articles 74 (3) and 75 (2) of Directive 2013/36 / EU and disclosures under Article 450 of Regulation (EU) No. 575/2013, Published by the European Banking Authority on December 21, 2015.
This plan includes the bonus (deferred and conditioned variable compensation plan mentioned in item (ii) above and the ILP of item (iii) above and is intended to defer a portion of the variable remuneration over a period of three or five Years to be paid in cash and in shares, linking part of this amount to the Bank’s performance over a multi-year period and paying the other part of the variable remuneration in cash and in stock at the beginning. Detailed below.
The variable remuneration of the beneficiaries will be paid according to the following percentages, depending on when the payment occurs and the group to which the beneficiary belongs:
2016 and 2017 (first and second cycle)
Immediate
payment
Deferred
Deferral
percentage
percentage
period
(*)
(*)
(*)
Executive directors and members of the Identified Staff with total variable remuneration ≥ €2.7 million (**) (***)
40
%
60
%
5 years
Division managers, country heads of countries that represent at least 1% of the Group’s economic capital, other executives of the Group with a similar profile and members of the Identified Staff with total variable remuneration ≥ €1.7 million (<€ 2.7 million) (**) (***)
50
%
50
%
5 years
Other beneficiaries
60
%
40
%
3 years
(*) In some countries the percentage and the period of deferral may be higher to comply with local regulations or with the requirements of the competent authority in each case.
(**) Variable reference remuneration for the standard compliance (100% of the objectives).
(***) In the first cycle (2016), the quantitative amount that determines by itself being in one category or another refers to the total variable remuneration effectively approved at year end and do not refers to target or reference remuneration.
Each beneficiary receives, in 2017 and 2018 (first and second cycle, respectively), according to the group to which it belongs, the percentage of immediate payment that corresponds, by half in cash and in shares. The payment of the percentage of deferral of the variable remuneration that corresponds in each case according to the group to which the beneficiary belongs will be deferred for a period of three or five years and will be paid by thirds or fifths, as the case may be, within thirty Days following the anniversaries of the initial date in the years 2018, 2019 and 2020 and, if applicable, 2021 and 2022 for the first cycle and in the years 2019, 2020 and 2021, and, if applicable 2022 and 2023, for the second cycle, provided that the conditions set out below are met.
In 2016, the accrual of the deferred compensation is conditioned, in addition to the permanence of the beneficiary in the Group, with the exceptions contained in the plan’s regulations, in the opinion of the board, at the proposal of the remuneration committee, none of The following circumstances during the period prior to each of the deliveries in the terms set forth in each case in the plan’s regulations: (i) poor performance of the Group; (Ii) breach by the beneficiary of the internal regulations, including in particular that relating to risks; (Iii) material restatement of the Group’s financial statements, except when appropriate under a change in accounting regulations; Or (iv) significant changes in the Group’s economic capital or risk profile.
In 2017, the accrual of deferred remuneration is conditioned, in addition to the beneficiary permanence in the Group, with the exceptions contained in the plan's regulations, to the non-occurrence of instances of poor financial performance from the entity as a whole or of a specific division or area thereof or of the exposures generated by the personnel, at least the following factors must be considered: (i) significant failures in risk management committed by the entity, or by a business unit or risk control unit; (ii) the increase suffered by the entity 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 unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity; and (iv) irregular behaviors, whether individual or collective, considering in particular negative effects derived from the marketing of inappropriate products and responsibilities of persons or bodies that made those decisions.
In addition, the accrual of the deferral corresponding to the third annuity of deferral for the Group that differs in three years and the third, fourth and fifth for which it differs in five years, is conditional on the fulfillment of certain objectives related to the period 2016-2018 and The metrics and compliance scales associated with these multi-year objectives:
For 2016 (first cycle, period 2016-2018), the metrics and the method for determining the deferred amount subject to long term objectives are as follows:
(A)
BPA growth in 2018
(% Over 2015)
BPA coefficient
≥ 25%
1
≥ 0% but < 25%
0 – 1
(*)
< 0%
0
(*)
(B)
Position of the Santander RTA
RTA coefficient
Exceeding the 66th percentile
1
Between the 33rd and 66th percentiles
0 – 1
(*)
Lower than percentile 33
0
(*)
The Reference Group consists of the following entities: BBVA, CaixaBank, Bankia, Popular, Sabadell, BCP, BPI, HSBC, RBS, Barclays, Lloyds, BNP Paribas, Crédit Agricole, Deutsche Bank, Société Générale, Nordea, Intesa San Paolo , Unicredit, Itaú, Bradesco, Banco do Brasil, Banorte, Banco de Chile, M & T Bank Corp., Keycorp, Fifth Third Bancorp, BB & T Corp., Citizens, Crédit Acceptance Corp., Ally Financial Inc., PKO, PEKAO, Millenium, ING Poland and mBank.
(C)
(D) Compliance with Santander Santander’s underlying return on risk-weighted assets for 2018 compared to 2015. The corresponding coefficient (the "RoRWA Coefficient"), Will be obtained from the following table:
BPA growth in 2018
(% Over 2015)
RoRWA coefficient
≥ 20%
1
≥ 10% but < 20%
0.5 – 1
(*)
< 10%
0
(*)
In order to determine the annual amount of the Deferred Objective Part that, if applicable, corresponds to each beneficiary in the years 2020 and, if applicable, 2021 and 2022 (each of these payments, a "Final Annuity"), and without prejudice to any adjustments that may result from the malus clauses, the following formula shall apply:
Final Annuity = Imp. x (0.25 x A + 0.25 x B + 0.25 x C + 0.25 x D)
where:
-
"Imp." Corresponds to a fifth or a third, depending on the profile of the beneficiary, the Deferred Amount of Incentive A.
-
"A" is the BPA Coefficient that is in accordance with the scale of section (a) above in relation to the growth of BPA in 2018 compared to 2015.
-
"B" is the RTA Coefficient that is in accordance with the scale of section (b) above depending on the performance of the Bank’s RTA in the period 2016-2018 with respect to the Reference Group.
-
"C" is the CET 1 Coefficient resulting from the fulfillment of the CET1 target described in section (c) above.
-
"D" is the RoRWA Coefficient that conforms to the scale of section (d) above depending on the growth level of RoRWA 2018 compared to 2015.
(e)
EPS growth in 2019
(% over 2016)
EPS coefficient
≥ 25%
1
≥ 0% but < 25%
0 – 1
(*)
< 0%
0
(*) Lineal increase of the EPS Coefficient according to the specific EPS growth in 2019 with respect to 2016 within this scale line.
(f) 4 of the Bank in the period 2017-2019 in relation with the TSR of a reference group comprised by 17 credit entities (the Reference Group), assigning a TSR Coefficient that corresponds depending on the TSR position of the Bank within the Reference Group.
Santander’s TSR positon
TSR Coefficient
Greater than percentile 66
1
Percentiles between 33 and 66
0 – 1
(*)
Smaller than percentile 33
0
(*) Proportional increase of the TSR Coefficient in accordance with the number of positions moved forward in the ranking within this scale line.
The Reference Group is comprised by the following entities: Itaú, JP Morgan, Bank of America, HSBC, BNP Paribas, Standard Chartered, Citi, So" id="sjs-B4">47. Personnel expenses a ) Breakdown The detail of Personnel expenses is as follows: Millions of euros 2017 2016 2015 Wages and salaries 8,879 8,133 8,081 Social security costs 1,440 1,291 1,330 Additions to provisions for defined benefit pension plans (Note 25) 88 81 96 Contributions to defined contribution pension funds 271 266 279 Other personnel expenses 1,369 1,233 1,321 12,047 11,004 11,107 b) The average number of employees in the Group, by professional category, was as follows: Average number of employees (***) 2017 2016 2015 The Bank: Senior management (*) 64 76 93 Other line personnel 21,327 20,291 20,909 Clerical staff (**) — 1,904 2,138 General Services Personnel (**) — 13 22 21,391 22,284 23,162 Rest of Spain 12,703 6,925 6,922 Santander UK plc 19,079 19,428 20,069 Banco Santander (Brasil) S.A. 46,210 48,052 47,720 Other companies 96,349 94,946 91,591 195,732 191,635 189,464 (*) Categories of deputy assistant executive vice president and above, including senior management. (**) During 2017, Clerical staff and General Services Personnel categories were erased considering all the staff in the aforementioned categories on the Other line personnel category. (***) Excluding personnel assigned to discontinued operations. The number of employees, at the end of 2017, 2016 and 2015, was 202,251, 188,492 and 193,863, respectively. The functional breakdown (final employment), by gender, at December 31, 2017 is as follows: Functional breakdown by gender Senior executives Other executives Other personnel Men Women Men Women Men Women Continental Europe 978 290 6,557 2,908 27,009 33,287 United Kingdom 115 31 1,252 639 8,828 14,317 America 507 91 6,569 4,024 39,612 55,237 1,600 412 14,378 7,571 75,449 102,841 The same information, expressed in percentage terms at December 31, 2017, is as follows: Functional breakdown by gender Senior executives Other executives Other personnel Men Women Men Women Men Women Continental Europe 77 % 23 % 69 % 31 % 45 % 55 % United Kingdom 79 % 21 % 66 % 34 % 38 % 62 % America 85 % 15 % 62 % 38 % 42 % 58 % 80 % 20 % 66 % 34 % 42 % 58 % The labor relations between employees and the various Group companies are governed by the related collective agreements or similar regulations. The number of employees in the Group with disabilities, distributed by professional categories, at December 31, 2017, is as follows: Average number of employees (**) 2017 Senior management (*) 4 Other management 65 Other staff 3,220 3,289 (*) Categories of deputy assistant executive vice president and above, including senior management. (**) An employee with disabilities is considered to be a person who is recognized by the State or the Company in each jurisdiction where the Group operates and that entitles them to receive direct monetary assistance, or other types of aid such as, for example, reduction of their taxes. In the case of Spain, employees with disabilities have been considered to be those with a degree of disabilities greater than or equal to 33%. The amount does not include employees in the United States. The number of Group employees with disabilities at 2016 and 2015, was 2,941 (not including the United States) and 3,677, respectively. Likewise, the average number of employees of Banco Santander with disabilities, equal to or greater than 33%, during 2017 was 209 ( 216 employees during 2016). At the end of fiscal year 2017, there were 211 employees (213 employees at December 31, 2016). c) The main share-based payments granted by the Group in force at December 31, 2017, 2016 and 2015 are described below. i. Bank The variable remuneration policy for the Bank’s executive directors and certain executive personnel of the Bank and of other Group companies includes Bank share-based payments, the implementation of which requires, in conformity with the law and the Bank’s Bylaws, specific resolutions to be adopted by the general meeting. Were it necessary or advisable for legal, regulatory or other similar reasons, the delivery mechanisms described below may be adapted in specific cases without altering the maximum number of shares linked to the plan or the essential conditions to which the delivery thereof is subject. These adaptations may involve replacing the delivery of shares with the delivery of cash amounts of an equal value. The plans that include share-based payments are as follows: (i) deferred conditional delivery share plan; (ii) deferred conditional variable remuneration plan, (iii) performance share plan and (iv) Deferred variable compensation plan linked to multiannual objectives. The characteristics of the plans are set forth below: (i) Deferred conditional delivery share plan In 2013 the Bank’s Board of Directors, at the proposal of the appointments and remuneration committee, approved the fourth cycle of the deferred conditional delivery share plan to instrument payment of the share-based bonus of the Group executives or employees whose variable remuneration or annual bonus for 2013 exceeded, in general, €0.3 million (gross), with a view to deferring a portion of the aforementioned variable remuneration or bonus over a period of three years in which it will be paid in Santander shares. Since this cycle entailed the delivery of Bank shares, the shareholders at the Annual General Meetings of March 22, 2013 approved the application of the fourth cycle of the deferred conditional delivery share plan. This cycle is not applicable to the executive directors or other members of senior management or other executives who are beneficiaries of the deferred conditional variable remuneration plan described below. The share-based bonus is being deferred over three years and will be paid, where appropriate, in three instalments starting after the first year (2015). The amount in shares is calculated based on the tranches of the following scale established by the Board of Directors on the basis of the gross variable cash-based remuneration or annual bonus for the year: Benchmark bonus Percentage (thousands of euros) (deferred) 300 or less 0 % 300 to 600 (inclusive) 20 % More than 600 30 % The condition for accrual of the share-based deferred remuneration was, in addition to that of the beneficiary remaining in the Group’s employ, with the exceptions envisaged in the plan regulations, that none of the following circumstances should occur in the period prior to each of the deliveries: (i) poor financial performance of the Group; (ii) breach by the beneficiary of internal regulations, including, in particular, those relating to risks; (iii) material restatement of the Group’s financial statements, except when it is required pursuant to a change in accounting standards; or (iv) significant changes in the Group’s economic capital or risk profile. (ii) In 2014 and 2015 the Bank’s Board of Directors, at the proposal of the appointments and remuneration committee in 2014 and of the remuneration committee in 2015, approved the third, fourth and fifth cycles of the deferred conditional variable remuneration plan to instrument payment of the bonus for 2014 and 2015, respectively, of the executive directors and certain executives (including senior management) and employees who assume risk, who perform control functions or receive an overall remuneration which puts them on the same remuneration level as senior executives and employees who assume risks (all of whom are referred to as the "Identified Staff", in accordance to Article 92(2) of Directive 2013/36/EU of the European Parliament and of the Council, of June 26, 2013, and the related implementing legislation in 2014; and in 2015, pursuant to Article 32.1 of Law 10/2014, of June 26 on the regulation, supervision and capital adequacy of credit institutions, and the related implementing legislation). In 2016 and 2017, and taking into account regulatory developments and international practices in remuneration matters, the sixth and the seventh cycle of the variable remuneration plan for the group identified with the exception of executive directors and certain executives (including senior management) were approved. First line of responsibility of the Group, for which the first and second cycle of deferred and conditioned variable remuneration described in item (iv) below were approved. The recommendations issued in the Guidelines on sound remuneration policies under Articles 74 (3) and 75 (2) of Directive 2013/36 / EU and disclosures under Article 450 of Regulation (EU) No. 575/2013, Published by the European Banking Authority on December 21, 2015. Since the aforementioned cycles entail the delivery of Bank shares, the shareholders at the Annual General Meetings of March 28, 2014, March 27, 2015, March 18, 2016 and April 7, 2017 approved, respectively, the application of the fourth, fifth, sixth and seventh cycles of the deferred conditional variable remuneration plan. The purpose of these cycles is to defer a portion of the bonus of the beneficiaries thereof over a period of three years for the fourth sixth and seventh cycles, and over three or five years for the fifth cycle, for it to be paid, where appropriate, in cash and in Santander shares; the other portion of the variable remuneration is also to be paid in cash and Santander shares, upon commencement of the cycles, in accordance with the rules set forth below. In the case of the sixth cycle, the bonus will be immediately paid in 60% (at the beginning of 2017) and deferred by 40% over a three year period. In the case of the other fifth and fourth cycles, will be paid according to the following payment percentages and periods of deferment: 2017 (seventh cycle) Immediate payment Deferred percentage percentage Deferral (*) (*) period Executive directors and members of the Identified Staff with total variable remuneration (*) ≥ €2.7 million 40 % 60 % 5 years Executive directors and members of the Identified Staff with total variable remuneration (**) ≥ €1.7 million (< €2.7 million) 50 % 50 % 5 years Other beneficiaries 60 % 40 % 3 years (*) In certain countries the deferred percentage or the deferred period could be different to comply with local rules or the authority requirements. (**) Total variable remuneration in case of standard fulfilment (100% target). 2015 (fifth cycle) Immediate payment Deferred percentage percentage Deferral (*) (*) period Executive directors and members of the Identified Staff with total variable remuneration ≥ €2.6 million 40 % 60 % 5 years Division managers, country heads, other executives of the Group with a similar profile and members of the Identified Staff with total variable remuneration ≥ €1.7 million (< €2.6 million) 50 % 50 % 5 years Other beneficiaries 60 % 40 % 3 years (*) 2014 (fourth cycle) (*) Immediate payment Deferred percentage percentage (**) (**) Executive directors and members of the Identified Staff with total variable remuneration ≥ €2.6 million 40 % 60 % Division managers, country heads, other executives of the Group with a similar profile and members of the Identified Staff with total variable remuneration ≥ €1.8 million 50 % 50 % (< €2.6 million) Other beneficiaries 60 % 40 % (*) Deferral period for all the categories is 3 years. (**) Generally applicable percentages. In some countries deferred percentages may be higher for certain categories of executives, thereby giving rise to lower immediate payment percentages. For the fourth sixth and seventh cycle, the payment of the deferred percentage of the bonus applicable in each case will be deferred over a period of three years and will be paid in three instalments, within 30 days following the anniversaries of the initial date (the date on which the immediate payment percentage is paid) in 2016, 2017 and 2018 for the fourth cycle, in 2018, 2019 and 2020 for the sixth cycle, and in 2018, 2019 and 2020 for the seventh cycle 50% being paid in cash and 50% in shares, provided that the conditions described below are met. For the fifth cycle, the payment of the deferred percentage of the bonus applicable in each case based on the group to which the beneficiary belongs will be deferred over a period of three or five years and will be paid in three or five instalments, as appropriate, within 30 days following the anniversaries of the initial date in 2017, 2018 and 2019 and, where appropriate, in 2020 and 2021, provided that the conditions described below are met. For the fourth, fifth and sixth cycle, the accrual of deferred compensation is conditioned, in addition to the requirement that the beneficiary remains in the Group’s employ, with the exceptions included in the plan regulations, the accrual of the deferred remuneration is conditional upon none of the following circumstances existing -in the opinion of the Board of Directors following a proposal of the remuneration committee-, during the period prior to each of the deliveries, pursuant to the provisions set forth in each case in the plan regulations: (i) poor financial performance of the Group; (ii) breach by the beneficiary of internal regulations, including, in particular, those relating to risks; (iii) material restatement of the Group’s financial statements, except when it is required pursuant to a change in accounting standards; or (iv) significant changes in the Group’s economic capital or risk profile. In the case of the seventh cycle, the accrual of deferred compensation is conditioned, in addition to the permanence of the beneficiary in the Group, with the exceptions contained in the plan's regulations, to no assumptions in which there is a poor performance of the entity as a whole or of a specific division or area of the entity 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 entity , or by a business unit or risk control unit; (ii) the increase suffered by the entity or by a business unit of its capital needs, not foreseen at the time of generation of the exposures; (iii) regulatory sanctions or judicial sentences for events that could be attributable to the unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity; 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 the persons or bodies that made those decisions. On each delivery of fourth and fifth, the beneficiaries will be paid an amount in cash equal to the dividends paid on the deferred amount in shares and the interest on the amount accrued in cash. If the Santander Dividendo Elección scrip dividend scheme is applied, they will be paid the price offered by the Bank for the bonus share rights corresponding to those shares. In the case of the seventh cycle and, on the occasion of each payment of the deferred amount in cash, it will be possible to pay de Beneficiary the amount derived from the adjustment of the deferred amount with the inflation rate up to the date of payment of each corresponding cash amount. The maximum number of shares to be delivered is calculated taking into account the amount resulting from applying the applicable taxes and the volume-weighted average share prices for the 15 trading sessions prior to the date on which the Board of Directors approves the bonus for the Bank’s executive directors for 2013, 2014 and 2015 for the third, fourth and fifth cycle, respectively. In the case of the sixth and seventh cycle, it is determined according to the same procedure in the fifteen sessions prior to the previous Friday (excluded) on the date on which the board decides the bonus for the Bank’s executive directors for 2016 and 2017, respectively. (iii) In 2014 and 2015 the Bank’s Board of Directors approved the first and second cycles, respectively, of the performance share plan by which to instrument a portion of the variable remuneration of the executive directors and other members of the Identified Staff, consisting of a long-term incentive (ILP) in shares based on the Bank’s performance over a multiannual period. In addition, the second cycle also applies to other Bank employees not included in the Identified Staff, in respect of whom it is deemed appropriate that the potential delivery of Bank shares be included in their remuneration package in order to better align the employee’s interests with those of the Bank. Since the aforementioned plans entail the delivery of Bank shares, the Annual General Meetings of March 28, 2014 and March 27, 2015 approved the application of the first and second cycles of the plan, respectively. The maximum amounts of the plan and, consequently, the maximum number of shares to which a beneficiary may be entitled under this plan was set at 15% and 20% of the beneficiaries’ benchmark bonus for 2014 and 2015, respectively. The Board of Directors, following a proposal of the remuneration committee, set the amount of the ILP for each beneficiary for 2014 and 2015. For the second cycle, based on the maximum benchmark value (20%), at the proposal of the remuneration committee, the Board of Directors will set the maximum number of shares, the value in euros of which is called the "Agreed-upon Amount of the ILP", taking into account (i) the Group’s earnings per share (EPS) and (ii) the Group’s return on tangible equity (RoTE) for 2015 with respect to those budgeted for the year. Both items had the same weighting when setting the ILP and each of them were measured based on the following scales of target compliance: - Scale applicable to EPS of Santander Group in 2016 with respect to the budgeted EPS for the year: EPS in 2015 2015 EPS (% of budgeted 2015 EPS) coefficient ≥ 90% 1 > 75% but < 90% 0.75 – 1 (*) ≤ 75% 0 (*) - Scale applicable to Santander Group’s 2015 RoTE with respect to the RoTE budgeted for the year: RoTE in 2015 2015 RoTE (% of budgeted 2016 RoTE) coefficient ≥ 90% 1 > 75% but < 90% 0.75 – 1 (*) ≤ 75% 0 (*) Based on the Group’s performance at the end of 2015, the coefficient to be applied was 91.50%. For the first cycle, the following percentages were applied to 15% of the benchmark bonus in accordance with the relative performance of the Bank’s Total Shareholder Return (TSR) in 2014 compared to a benchmark group: Santander’s Percentage of place in the maximum shares TSR ranking to be delivered 1st to 8th 100 % 9th to 12th 50 % 13th and below 0 % Since the Bank’s TSR was in fourth place, the applicable percentage was 100%. Also, for the second cycle, the agreed-upon amount of the ILP for each beneficiary will be deferred over a period of three years and will be paid, where appropriate, at the beginning of 2019 (foreseeably, in the first quarter) based on compliance with the multiannual targets and other plan terms and conditions. Thus, prior to the payment date, the Board of Directors, following a proposal of the remuneration committee, will calculate the amount, where appropriate, to be received by each beneficiary based on the agreed-upon amount of the ILP. The multiannual targets, the related metrics and scales of compliance are as follows: · Relative performance of the Group’s EPS growth for 2015-2017 with respect to a benchmark group of 17 credit institutions Position of Santander’s EPS growth 2015 - 2017 EPS coefficient 1st to 5th 1 6th 0.875 7th 0.75 8th 0.625 9th 0.50 10th and below 0 · Santander Group’s 2017 RoTE: RoTE in 2017 RoTE (%) coefficient ≥ 12% 1 > 11% but < 12% 0.75 – 1(*) ≤ 11% 0 (*) · Employee satisfaction, measured by the inclusion or exclusion of the related Group company in 2017 among the “Top 3” best banks to work for. o Scale of compliance at country level: Position among the best banks to work Employee for in 2017 coefficient 1st to 3rd 1 4th or below 0 o Scale of compliance at Santander Group level: No. of main markets in which Santander is ranked in the top three of the best banks to work for Employee in 2017 coefficient 6 or more 1 5 or less 0 - Customer satisfaction, measured by the inclusion or exclusion of the related Group company in 2017 among the top three best banks in the customer satisfaction index. o Scale of compliance at country level: Position among the best banks as per the customer satisfaction index Customer in 2017 coefficient 1st to 3rd 1 4th or below 0 o Scale of compliance at Santander Group level: No. of main markets in which Santander is ranked in the top three of the best banks in the customer satisfaction index Customer in 2017 coefficient 10 1 Between 6 and 9 0.2 - 0.8 (*) 5 or less 0 (*) - Customer loyalty, taking into account that the targets at Santander Group level are 17 million individual customers and 1.1 million SME and business customers at December 31, 2017. o Scales of compliance at country level: SME and business Individual customers (% of the customers (% of the budget for the Individual budget for the Business related market) coefficient related market) coefficient ≥ 100% 1 ≥ 100 % 1 > 90% but < 100% 0.5 - 1 (*) > 90% but < 100 % 0.5 - 1 (*) ≤ 90% 0 ≤ 90 % 0 (*) o Scales of compliance at Santander Group level: SME and Individual business customers Individual customers Business (millions) coefficient (millions) coefficient ≥ 17 1 ≥ 1.1 1 > 15 but < 17 0.5 - 1 (*) > 1 but < 1.1 0.5 - 1 (*) ≤ 15 0 ≤ 1 0 (*) Based on the foregoing metrics and compliance scales and the data relating to the end of 2017, the amount accrued of the ILP for each beneficiary (the "Accrued Amount of the ILP") will be calculated by weighting the above coefficients by 0.25, 0.25, 0.2, 0.15, 0.075 and 0.075, respectively. For the first cycle, the agreed-upon amount of the ILP for each beneficiary will be deferred over a period of three years and will be paid, where appropriate, in thirds in June 2016, 2017 and 2018 based on compliance with the multiannual TSR targets. Thus, for each payment date, the Board of Directors, following a proposal of the remuneration committee, will calculate the amount, where appropriate, to be received by each beneficiary applying to the third of the agreed-upon amount of the ILP for that year the percentage resulting from the following table: Santander’s Percentage of place in the TSR maximum shares ranking to be delivered 1st to 4th 100.0 % 5th 87.5 % 6th 75.0 % 7th 62.5 % 8th 50.0 % 9th and below 0 % For the accrual for 2016, the benchmark TSR will be that accumulated between January 1, 2014 and December 31, 2015, for the accrual for 2017, the benchmark TSR will be that accumulated between January 1, 2014 and December 31, 2016 and for the accrual for 2018, the benchmark TSR will be that accumulated between January 1, 2014 and December 31, 2017. In 2016, a position in the RTA ranking has not been reached that determines the accrual of the first and second third, so it has been extinguished. In addition to the requirement that the beneficiary remains in the Group’s employ, with the exceptions included in the plan regulations, the delivery of shares to be paid on the ILP payment date based on compliance with the related multiannual target is conditional upon none of the following circumstances existing -in the opinion of the Board of Directors following a proposal of the remuneration committee-, during the period prior to each of the deliveries as a result of the actions taken in 2014 and 2015, respectively: (i) poor financial performance of the Group; (ii) breach by the beneficiary of internal regulations, including, in particular, those relating to risks; (iii) material restatement of the Group’s financial statements, except when it is required pursuant to a change in accounting standards; or (iv) significant changes in the Group’s economic capital or risk profile. (iv) In 2016 and 2017, the Board of Directors of the Bank, at the proposal of the remuneration committee, approved the first and second cycle of the deferred variable remuneration plan linked to multi-year objectives that implements the variable remuneration corresponding to 2016 and 2017 for executive directors and certain executives (Including top management) of the Group’s first lines of responsibility (formerly Promontorio and Faro, before, Top Network managers). The cycles plan was approved by the general meeting on March 18, 2016 and April 7, 2017 with the aim of simplifying the remuneration structure, improving the ex ante risk adjustment and increasing the impact of the long-term objectives on the Group’s first guidelines. The plan also takes into account the recommendations issued in the Guidelines on sound remuneration policies under Articles 74 (3) and 75 (2) of Directive 2013/36 / EU and disclosures under Article 450 of Regulation (EU) No. 575/2013, Published by the European Banking Authority on December 21, 2015. This plan includes the bonus (deferred and conditioned variable compensation plan mentioned in item (ii) above and the ILP of item (iii) above and is intended to defer a portion of the variable remuneration over a period of three or five Years to be paid in cash and in shares, linking part of this amount to the Bank’s performance over a multi-year period and paying the other part of the variable remuneration in cash and in stock at the beginning. Detailed below. The variable remuneration of the beneficiaries will be paid according to the following percentages, depending on when the payment occurs and the group to which the beneficiary belongs: 2016 and 2017 (first and second cycle) Immediate payment Deferred Deferral percentage percentage period (*) (*) (*) Executive directors and members of the Identified Staff with total variable remuneration ≥ €2.7 million (**) (***) 40 % 60 % 5 years Division managers, country heads of countries that represent at least 1% of the Group’s economic capital, other executives of the Group with a similar profile and members of the Identified Staff with total variable remuneration ≥ €1.7 million (<€ 2.7 million) (**) (***) 50 % 50 % 5 years Other beneficiaries 60 % 40 % 3 years (*) In some countries the percentage and the period of deferral may be higher to comply with local regulations or with the requirements of the competent authority in each case. (**) Variable reference remuneration for the standard compliance (100% of the objectives). (***) In the first cycle (2016), the quantitative amount that determines by itself being in one category or another refers to the total variable remuneration effectively approved at year end and do not refers to target or reference remuneration. Each beneficiary receives, in 2017 and 2018 (first and second cycle, respectively), according to the group to which it belongs, the percentage of immediate payment that corresponds, by half in cash and in shares. The payment of the percentage of deferral of the variable remuneration that corresponds in each case according to the group to which the beneficiary belongs will be deferred for a period of three or five years and will be paid by thirds or fifths, as the case may be, within thirty Days following the anniversaries of the initial date in the years 2018, 2019 and 2020 and, if applicable, 2021 and 2022 for the first cycle and in the years 2019, 2020 and 2021, and, if applicable 2022 and 2023, for the second cycle, provided that the conditions set out below are met. In 2016, the accrual of the deferred compensation is conditioned, in addition to the permanence of the beneficiary in the Group, with the exceptions contained in the plan’s regulations, in the opinion of the board, at the proposal of the remuneration committee, none of The following circumstances during the period prior to each of the deliveries in the terms set forth in each case in the plan’s regulations: (i) poor performance of the Group; (Ii) breach by the beneficiary of the internal regulations, including in particular that relating to risks; (Iii) material restatement of the Group’s financial statements, except when appropriate under a change in accounting regulations; Or (iv) significant changes in the Group’s economic capital or risk profile. In 2017, the accrual of deferred remuneration is conditioned, in addition to the beneficiary permanence in the Group, with the exceptions contained in the plan's regulations, to the non-occurrence of instances of poor financial performance from the entity as a whole or of a specific division or area thereof or of the exposures generated by the personnel, at least the following factors must be considered: (i) significant failures in risk management committed by the entity, or by a business unit or risk control unit; (ii) the increase suffered by the entity 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 unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity; and (iv) irregular behaviors, whether individual or collective, considering in particular negative effects derived from the marketing of inappropriate products and responsibilities of persons or bodies that made those decisions. In addition, the accrual of the deferral corresponding to the third annuity of deferral for the Group that differs in three years and the third, fourth and fifth for which it differs in five years, is conditional on the fulfillment of certain objectives related to the period 2016-2018 and The metrics and compliance scales associated with these multi-year objectives: For 2016 (first cycle, period 2016-2018), the metrics and the method for determining the deferred amount subject to long term objectives are as follows: (A) BPA growth in 2018 (% Over 2015) BPA coefficient ≥ 25% 1 ≥ 0% but < 25% 0 – 1 (*) < 0% 0 (*) (B) Position of the Santander RTA RTA coefficient Exceeding the 66th percentile 1 Between the 33rd and 66th percentiles 0 – 1 (*) Lower than percentile 33 0 (*) The Reference Group consists of the following entities: BBVA, CaixaBank, Bankia, Popular, Sabadell, BCP, BPI, HSBC, RBS, Barclays, Lloyds, BNP Paribas, Crédit Agricole, Deutsche Bank, Société Générale, Nordea, Intesa San Paolo , Unicredit, Itaú, Bradesco, Banco do Brasil, Banorte, Banco de Chile, M & T Bank Corp., Keycorp, Fifth Third Bancorp, BB & T Corp., Citizens, Crédit Acceptance Corp., Ally Financial Inc., PKO, PEKAO, Millenium, ING Poland and mBank. (C) (D) Compliance with Santander Santander’s underlying return on risk-weighted assets for 2018 compared to 2015. The corresponding coefficient (the "RoRWA Coefficient"), Will be obtained from the following table: BPA growth in 2018 (% Over 2015) RoRWA coefficient ≥ 20% 1 ≥ 10% but < 20% 0.5 – 1 (*) < 10% 0 (*) In order to determine the annual amount of the Deferred Objective Part that, if applicable, corresponds to each beneficiary in the years 2020 and, if applicable, 2021 and 2022 (each of these payments, a "Final Annuity"), and without prejudice to any adjustments that may result from the malus clauses, the following formula shall apply: Final Annuity = Imp. x (0.25 x A + 0.25 x B + 0.25 x C + 0.25 x D) where: - "Imp." Corresponds to a fifth or a third, depending on the profile of the beneficiary, the Deferred Amount of Incentive A. - "A" is the BPA Coefficient that is in accordance with the scale of section (a) above in relation to the growth of BPA in 2018 compared to 2015. - "B" is the RTA Coefficient that is in accordance with the scale of section (b) above depending on the performance of the Bank’s RTA in the period 2016-2018 with respect to the Reference Group. - "C" is the CET 1 Coefficient resulting from the fulfillment of the CET1 target described in section (c) above. - "D" is the RoRWA Coefficient that conforms to the scale of section (d) above depending on the growth level of RoRWA 2018 compared to 2015. (e) EPS growth in 2019 (% over 2016) EPS coefficient ≥ 25% 1 ≥ 0% but < 25% 0 – 1 (*) < 0% 0 (*) Lineal increase of the EPS Coefficient according to the specific EPS growth in 2019 with respect to 2016 within this scale line. (f) 4 of the Bank in the period 2017-2019 in relation with the TSR of a reference group comprised by 17 credit entities (the Reference Group), assigning a TSR Coefficient that corresponds depending on the TSR position of the Bank within the Reference Group. Santander’s TSR positon TSR Coefficient Greater than percentile 66 1 Percentiles between 33 and 66 0 – 1 (*) Smaller than percentile 33 0 (*) Proportional increase of the TSR Coefficient in accordance with the number of positions moved forward in the ranking within this scale line. The Reference Group is comprised by the following entities: Itaú, JP Morgan, Bank of America, HSBC, BNP Paribas, Standard Chartered, Citi, So |
Other general administrative ex
Other general administrative expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other general administrative expenses | |
Other general administrative expenses | 48. Other general administrative expenses a) The detail of Other general administrative expenses is as follows: Millions of euros 2017 2016 2015 Property, fixtures and supplies 1,931 1,853 1,943 Technology and systems 1,257 1,095 1,188 Technical reports 759 768 810 Advertising 757 691 705 Communications 529 499 587 Taxes other than income tax 583 484 529 Surveillance and cash courier services 443 389 413 Per diems and travel expenses 217 232 278 Insurance premiums 78 69 74 Other administrative expenses 1,799 1,653 1,668 8,353 7,733 8,195 b) Technical reports includes the fees paid by the various Group companies (detailed in the accompanying Appendices) for the services provided by their respective auditors, the detail being as follows (PwC in 2017 and 2016, and Deloitte in 2015): Millions of euros 2017 2016 2015 Audit fees 76.2 73.7 49.6 Audit-related fees 13.4 7.2 46.9 Tax fees 1.3 0.9 9.1 All other fees 3.1 3.6 12.6 Total 94.0 85.4 118.2 The Audit fees heading includes auditing fees for the Banco Santander, S.A. individual and consolidated annual accounts, as the case may be, of the companies forming part of the Group, the integrated audit prepared for the annual report filling in the Form 20-F required by the U.S. Securities and Exchange Commission (SEC) for those entities currently required to do so, the internal control audit (SOX) for those required entities, the audit of the consolidated financial statements as of June 30 and limited quarterly consolidated reviews for the Brazilian regulator as of March 31, June 30 and September 30 and the regulatory reports required by the auditor corresponding to the different locations of the Santander Group. The main concepts included in Audit-related fees correspond to aspects such as the issuance of Comfort letters, or other reviews required by different regulations in relation to aspects such as, for example, Securitization. The services commissioned from the Group's auditors meet the independence requirements stipulated by the Audit Law, the US SEC rules and the Public Company Accounting Oversight Board (PCAOB), applicable to the Group, and they did not involve in any case the performance of any work that is incompatible with the audit function. Lastly, the Group commissioned services from audit firms other than PwC amounting to €115.6 million in 2017 (2016: €127.9 million to other auditing firms other than PwC; 2015: €117.4 million to other auditing firms other than Deloitte). a) Number of offices The number of offices at December 31, 2017 and 2016 is as follow: Group Number of offices (*) 31/12/17 31/12/16 Spain 4,681 2,911 Group 9,016 9,324 13,697 12,235 (*) Included 1,777 offices of Grupo Banco Popular. |
Gains or losses on non-financia
Gains or losses on non-financial assets and investements, net | 12 Months Ended |
Dec. 31, 2017 | |
Gain Loss On Disposal Of Assets Not Held For Sale [Abstract] | |
Gains or losses on non-financial assets and investments, net | 49. Gains or losses on non financial assets and investments, net The detail of Gains/(losses) on disposal of assets not classified as non-current assets held for sale is as follow Millions of euros 2017 2016 2015 Gains: Tangible and intangible assets 134 131 104 Investments 443 30 104 Of which: Allfunds Bank, S.A. (Note 2) 425 — — 577 161 208 Losses: Tangible and intangible assets (43) (116) (83) Investments (12) (15) (13) (55) (131) (96) 522 30 112 |
Gains or losses on non-current
Gains or losses on non-current assets held for sale not classified as discontinued operations | 12 Months Ended |
Dec. 31, 2017 | |
Gains Or Losses On Non Current Assets Held For Sale Not Classified As Discontinued Operations [Abstract] | |
Gains or losses on non-current assets held for sale not classified as discontinued operations | 50. Gains or losses on non-current assets held for sale not classified as discontinued operations The detail of Gains/(losses) on non-current assets held for sale not classified as discontinued operations is as follows: Millions of euros Net balance 2017 2016 2015 Tangible assets (195) (141) (171) Impairment (Note 12) (306) (212) (222) Gain (loss) on sale 111 71 51 Other gains and other losses (8) — (2) (203) (141) (173) |
Other disclosures
Other disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Other disclosures | |
Other disclosures | 51. Other disclosures a) The detail, by maturity, of the balances of certain items in the consolidated balance sheet is as follows: December 31, 2017 Millions of euros Average On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 interest demand month months months years years years Total rate Assets: Cash, cash balances at Central Banks and other deposits on demand 110,995 — — — — — — 110,995 0.53 % Financial assets available-for-sale 326 2,467 1,646 11,497 22,447 11,164 78,934 128,481 Debt instruments 326 2,467 1,646 11,497 22,447 11,164 78,934 128,481 4.34 % Loans and receivables 57,000 119,541 112,786 903,013 Debt instruments 249 1,381 997 2,073 2,317 1,656 8,870 17,543 3.06 % Loans and advances 56,751 117,224 111,130 885,470 — Central banks — — — 26,278 5.10 % Credits institutions 18,242 4,198 3,445 5,708 5,694 939 1,341 39,567 1.26 % Customers 38,509 49,159 47,330 84,097 111,530 110,191 378,809 819,625 5.44 % Held-to-maturity investments — — — 1,902 122 294 11,173 13,491 1.52 % 168,321 142,110 124,244 1,155,980 % Liabilities: Financial liabilities at amortized cost: 537,604 75,161 87,939 130,672 136,487 83,542 74,664 1,126,069 — Deposits 527,499 59,325 66,667 100,658 81,169 39,719 8,283 883,320 Central banks 450 2,015 681 2,715 42,988 22,565 — 71,414 0.24 % Credit institutions 20,870 15,263 13,350 25,406 6,501 5,247 4,663 91,300 2.40 % Customer deposits 506,179 42,047 52,636 72,537 31,680 11,907 3,620 720,606 2.00 % Marketable debt securities (*) 105 11,927 11,638 29,286 54,202 43,395 64,357 214,910 2.56 % Other financial liabilities 10,000 3,909 9,634 728 1,116 428 2,024 27,839 — 537,604 75,161 87,939 130,672 136,487 83,542 74,664 1,126,069 1.98 % Difference (assets less liabilities) (369,283) 5,623 40,702 29,911 — (*) The Group’s net borrowing position with the ECB was €34,820 million at December 31, 2017, mainly because in last period the Group borrowed funds under the ECB’s targeted longer-term refinancing operations (LTRO, TLTRO) program. (See note 20). December 31, 2016 Millions of euros Average On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 Total interest demand month months months years years years rate Assets: Cash, cash balances at Central Banks and other deposits on demand 76,454 — — — — — — 76,454 0.98 % Financial assets available-for-sale 200 5,986 2,007 5,442 23,574 13,900 60,178 111,287 Debt instruments 200 5,986 2,007 5,442 23,574 13,900 60,178 111,287 4.33 % Loans and receivables 52,512 48,420 56,725 85,521 113,387 93,816 389,623 840,004 Debt instruments 248 1,628 708 2,246 2,125 1,918 4,364 13,237 6.31 % Loans and advances 52,264 46,792 56,017 83,275 111,262 91,898 385,259 826,767 Central banks — 941 11,499 1,117 — 23 14,393 27,973 6.54 % Credits institutions 16,632 4,938 2,210 2,220 4,435 1,268 3,721 35,424 1.96 % Customers 35,632 40,913 42,308 79,938 106,827 90,607 367,145 763,370 5.79 % Held-to-maturity investments — — — 123 2,075 342 11,928 14,468 1.70 % 129,166 54,406 58,732 91,086 139,036 108,058 461,729 1,042,213 5.12 % Liabilities: Financial liabilities at amortized cost: 480,075 95,583 67,282 125,774 115,591 69,467 90,468 1,044,240 Deposits 471,494 79,446 42,583 86,006 69,775 34,505 7,837 791,646 Central banks 422 2,007 633 101 20,027 20,922 — 44,112 0.26 % Credit institutions 16,649 16,357 10,603 23,313 13,540 5,560 3,742 89,764 3.97 % Customer deposits 454,423 61,082 31,347 62,592 36,208 8,023 4,095 657,770 2.25 % Marketable debt securities (*) 642 12,861 14,225 39,465 43,985 34,520 80,380 226,078 3.68 % Other financial liabilities 7,939 3,276 10,474 303 1,831 442 2,251 26,516 480,075 95,583 67,282 125,774 115,591 69,467 90,468 1,044,240 2.57 % Difference (assets less liabilities) (350,909) (41,177) (8,550) (34,688) 23,445 38,591 371,261 (2,027) (*) December 31, 2015 Millions of euros On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 Total Average demand month months months years years years interest rate Assets: Cash, cash balances at Central Banks and other deposits on demand 77,751 — — — — — — 77,751 0.79 % Financial assets available-for-sale 172 4,268 2,389 11,899 18,718 18,537 61,204 117,187 Debt instruments 172 4,268 2,389 11,899 18,718 18,537 61,204 117,187 3.87 % Loans and receivables 27,870 57,666 49,852 82,485 111,322 102,462 404,499 836,156 Debt instruments 15 1,383 1,083 1,143 1,764 1,241 4,278 10,907 5.40 % Loans and advances 27,855 56,283 48,769 81,342 109,558 101,221 400,221 825,249 Central banks — 6,305 5,007 2,120 47 3,835 23 17,337 7.45 % Credits institutions 6,879 11,974 4,115 5,294 3,897 1,240 4,039 37,438 1.55 % Customers 20,976 38,004 39,647 73,928 105,614 96,146 396,159 770,474 5.99 % Held-to-maturity investments — — — — 2,013 140 2,202 4,355 2.39 % 105,793 61,934 52,241 94,384 132,053 121,139 467,905 1,035,449 5.22 % Liabilities: Financial liabilities at amortized cost: 407,925 140,331 68,991 123,214 147,349 49,975 101,558 1,039,343 Deposits 403,579 122,234 47,277 88,263 88,808 14,462 31,056 795,679 Central banks 1,580 3,874 2,348 — 31,070 — — 38,872 0.17 % Credit institutions 7,043 30,187 11,801 31,843 15,926 6,295 6,114 109,209 2.64 % Customer deposits 394,956 88,173 33,128 56,420 41,812 8,167 24,942 647,598 2.48 % Marketable debt securities (*) 134 13,142 14,900 34,303 57,880 34,998 67,430 222,787 3.70 % Other financial liabilities 4,212 4,955 6,814 648 661 515 3,072 20,877 407,925 140,331 68,991 123,214 147,349 49,975 101,558 1,039,343 2.56 % Difference (assets less liabilities) (302,132) (78,397) (16,750) (28,830) (15,296) 71,164 366,347 (3,894) (*) The detail of the undiscounted contractual maturities of the existing financial liabilities at amortized cost at December 31, 2017 is as follows: December 31, 2017 Millions of euros On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 demand month months months years years years Total Financial liabilities at amortized cost: Deposits 526,059 57,490 89,249 99,780 64,977 32,365 8,157 878,077 Central banks 451 2,018 23,801 2,719 27,138 15,385 — 71,512 Credit institutions 20,378 14,903 13,035 24,807 6,348 5,123 4,553 89,147 Customer 505,230 40,569 52,413 72,254 31,491 11,857 3,604 717,418 Marketable debt securities 1,486 11,735 11,387 28,412 52,989 42,888 63,648 212,545 Other financial liabilities 10,001 3,908 9,634 728 1,116 428 2,024 27,839 537,546 73,133 110,270 128,920 119,082 75,681 73,829 1,118,461 December 31, 2016 Millions of euros On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 demand month months months years years years Total Financial liabilities at amortized cost: Deposits 467,529 95,231 49,246 68,830 66,255 34,781 7,765 789,637 Central banks 422 2,006 633 101 20,021 20,916 — 44,099 Credit institutions 16,676 15,789 15,500 20,057 12,364 5,517 3,736 89,639 Customer 450,431 77,436 33,113 48,672 33,870 8,348 4,029 655,899 Marketable debt securities 623 13,582 12,705 38,119 42,201 34,022 78,094 219,346 Other financial liabilities 7,939 3,645 10,097 305 1,837 442 2,251 26,516 476,091 112,458 72,048 107,254 110,293 69,245 88,110 1,035,499 December 31, 2015 Millions of euros On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 demand month months months years years years Total Financial liabilities at amortized cost: Deposits 401,813 121,750 47,094 87,916 88,558 14,406 30,927 792,465 Central banks 1,579 3,872 2,347 — 31,053 — — 38,851 Credit institutions 7,021 30,094 11,765 31,745 15,877 6,275 6,095 108,873 Customer 393,213 87,784 32,982 56,171 41,628 8,131 24,832 644,741 Marketable debt securities 130 12,806 14,511 33,375 56,340 33,975 65,299 216,435 Other financial liabilities 4,212 4,955 6,814 648 661 515 3,072 20,877 406,155 139,511 68,419 121,939 145,559 48,896 99,298 1,029,777 Below is a breakdown of contractual maturities for the rest of financial assets and liabilities as of December 31, 2017: Within 1 1 to 3 3 to 12 More than 5 Millions of euros at December 31, 2017 months months months 1 to 3 years 3 to 5 years years Total FINANCIAL ASSETS Financial assets held for trading 11,147 5,887 21,896 24,178 19,563 42,787 125,458 Derivatives 4,026 1,691 5,352 17,233 14,895 14,046 57,243 Equity instruments — — — — — 21,353 21,353 Debt instruments 4,253 1,706 11,850 6,529 4,662 7,351 36,351 Loans and advances 2,868 2,490 4,694 416 6 37 10,511 Credits institutions 1,216 1 63 416 — — 1,696 Customers 1,652 2,489 4,631 — 6 37 8,815 Financial assets designated at Fair Value through profit or loss 9,998 4,485 5,032 3,402 3,922 7,943 34,782 Equity instruments — — — — — 933 933 Debt instruments 19 120 850 667 579 1,250 3,485 Loans and advances 9,979 4,365 4,182 2,735 3,343 5,760 30,364 Central Banks — — — — — — — Credits institutions 7,341 2,020 183 32 77 236 9,889 Customers 2,638 2,345 3,999 2,703 3,266 5,524 20,475 Financial Assets available for sale — — — — — 4,790 4,790 Equity instruments — — — — — 4,790 4,790 Hedging derivatives 255 162 519 1,113 1,583 4,905 8,537 Changes in the fair value of hedged items in portfolio hedges of interest rate risk 57 6 33 151 59 981 1,287 TOTAL FINANCIAL ASSETS 21,457 10,540 27,480 28,844 25,127 61,406 174,854 Within 1 1 to 3 3 to 12 More than 5 Millions of euros at December 31, 2017 months months months 1 to 3 years 3 to 5 years years Total FINANCIAL LIABILITIES Financial liabilities held for trading 38,976 4,073 7,177 17,913 16,989 22,496 107,624 Derivatives 3,698 2,070 5,951 15,634 14,897 15,642 57,892 Shorts positions 8,060 468 1,226 2,279 2,092 6,854 20,979 Deposits 27,218 1,535 — — — — 28,753 Central Banks 282 — — — — — 282 Credits institutions 292 — — — — — 292 Customers 26,644 1,535 — — — — 28,179 Marketable debt securities — — — — — — — Other financial liabilities — — — — — — — Financial liabilities designated at fair value through profit or loss 30,152 5,166 1,635 1,251 1,120 20,292 59,616 Deposits 30,083 4,730 1,065 191 425 19,477 55,971 Central Banks 6,038 2,077 745 — — — 8,860 Credits institutions 16,521 1,485 63 — 97 — 18,166 Customers 7,524 1,168 257 191 328 19,477 28,945 Marketable debt securities 69 436 570 471 695 815 3,056 Other financial liabilities — — — 589 — — 589 Hedging derivatives 40 79 180 493 677 6,575 8,044 Changes in the fair value of hedged items in portfolio hedges of interest rate risk — — (2) (1) 31 302 330 TOTAL LIABILITIES ASSETS 69,168 9,318 8,990 19,656 18,817 49,665 175,614 Within 1 1 to 3 3 to 12 More than 5 Millions of euros at December 31, 2017 months months months 1 to 3 years 3 to 5 years years Total Memorandum items Contingent commitments 87,280 14,165 54,069 32,664 34,011 Contingent liabilities 17,065 5,059 12,599 10,502 2,326 MEMORANDUM ITEMS 104,345 19,224 66,668 43,166 36,337 17,347 287,087 In the Group’s experience, no outflows of cash or other financial assets take place prior to the contractual maturity date that might affect the information broken down above. b) The detail 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 euros 2017 2016 2015 Assets Liabilities Assets Liabilities Assets Liabilities Cash, cash balances at Central Banks and other deposits on demand 67,025 — 60,423 — 65,886 — Financial assets/liabilities held for trading 82,004 76,459 100,083 70,958 93,699 66,576 Other financial assets/liabilities at fair value through profit or loss 7,322 21,766 6,965 16,667 7,367 21,546 Financial assets/liabilities available-for-sale 65,691 — 68,370 — 68,012 — Loans and receivables 553,301 — 571,829 — 569,013 — Investments held-to-maturity 11,490 — 12,272 — 2,342 — Investments 1,121 — 1,308 — 1,191 — Tangible assets 15,971 — 16,957 — 15,005 — Intangible assets 23,499 — 26,338 — 26,377 — Financial liabilities at amortized cost — 638,680 — 678,542 — 668,014 Liabilities under insurance contracts — 58 — 61 — 1 Other 23,695 20,989 27,961 23,169 23,622 22,626 851,119 757,952 892,506 789,397 872,514 778,763 c) The financial assets owned by the Group are measured at fair value in the accompanying consolidated balance sheet, except for Cash, cash balances at Central Banks and other deposits on demand, loans and receivables, held-to-maturity investments, equity instruments whose market value cannot be estimated reliably and derivatives that have these instruments as their underlyings and are settled by delivery thereof. Similarly, the Group's financial liabilities -except for financial liabilities held for trading, those measured at fair value and derivatives other than those having as their underlying equity instruments whose market value cannot be estimated reliably-are measured at amortized cost in the accompanying consolidated balance sheet. Following is a comparison of the carrying amounts of the Group’s financial instruments measured at other than fair value and their respective fair values at year-end: i) Financial assets measured at other than fair value Millions of euros 2017 2016 2015 Carrying Fair Carrying Fair Carrying Fair Assets amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3 Loans and advances — — — Debt instruments 31,034 31,094 10,994 13,688 6,412 27,705 27,417 11,529 11,678 4,210 15,262 15,071 4,310 9,333 1,428 916,504 926,739 10,994 155,527 760,218 854,472 861,236 11,529 138,902 710,805 840,511 845,911 4,310 167,343 674,258 ii) Financial liabilities measured at other than fair value Millions of euros 2017 2016 2015 Carrying Fair Carrying Fair Carrying Fair Liabilities amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3 Deposits — — — Debt instruments and other financial liabilities 1,044,240 1,047,930 43,306 276,627 727,997 1,039,343 1,041,841 62,539 272,314 706,988 The main valuation methods and inputs used in the estimates at December 31, 2017 of the fair values of the financial assets and liabilities in the foregoing table were as follows: · Loans and receivables: the fair value was estimated using the present value method. The estimates were made considering factors such as the expected maturity of the portfolio, market interest rates, spreads on newly approved transactions or market spreads -when available-. · Held-to-maturity investments: the fair value was calculated based on market prices for these instruments. · Financial liabilities at amortized cost: i) ii) The fair value of Cash, cash balances at Central Banks and other deposits on demand was taken to be their carrying amount since they are mainly short-term balances. In addition, at December 31, 2017, 2016 and 2015, equity instruments amounting to €1,211 million, €1,349 million and €1,790 million, respectively, (See note 2.d) and recognized as Financial assets available-for-sale were measured at cost in the consolidated balance sheet because it was not possible to estimate their fair value reliably, since they related to investments in entities not listed on organized markets and, consequently, the non-observable inputs were significant. d) The detail at December 31, 2017, 2016 and 2015, by type of financial instrument, of the Group's sovereign risk exposure to Europe's peripheral countries and of the short positions held with them, taking into consideration the criteria established by the European Banking Authority (EBA) (See note 54) is as follows: Sovereign risk by country of issuer/borrower at December 31, 2017 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated at Financial Loans and fair value assets Held-to- advances to Total net through profit Short available- Loans and maturity customers direct Other than or loss positions for-sale receivables investments (**) exposure (****) CDSs CDSs Spain 6,940 (2,012) 37,748 1,585 1,906 16,470 62,637 (21) — Portugal 208 (155) 5,220 232 3 3,309 8,817 — — Italy 1,962 (483) 4,613 — — 16 6,108 (5) 5 Greece — — — — — — — — — Ireland — — — — — — — — — (*) Information prepared under EBA standards. Also, there are government debt securities on insurance companies’ balance sheets amounting to €11,673 million (of which €10,079 million, €1,163 million and €431 million relate to Spain, Portugal and Italy, respectively) and off-balance-sheet exposure other than derivatives – contingent liabilities and commitments– amounting to €3,596 million (€3,010 million, €146 million and €440 million to Spain, Portugal and Italy, respectively). (**) Presented without taking into account the Other comprehensive income recognized (€31 million). (***) "Other than CDSs" refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. (****) €19,601 million were included within the direct exposures of the Balance Sheet mainly from debt securities of Grupo Banco Popular. Sovereign risk by country of issuer/borrower at December 31, 2016 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated at Financial Loans and fair value assets Held-to- advances to Total net through profit Short available- Loans and maturity customers direct Other than or loss positions for-sale receivables investments (**) exposure CDSs CDSs Spain 8,943 (4,086) 23,415 1,516 1,978 14,127 45,893 (176) — Portugal 154 (212) 5,982 214 4 930 7,072 — — Italy 2,211 (758) 492 — — 7 1,952 (2) 2 Greece — — — — — — — — — Ireland — — — — — — — — — (*) Information prepared under EBA standards. Also, there are government debt securities on insurance companies’ balance sheets amounting to €10,502 million (of which €9,456 million, €717 million and €329 million relate to Spain, Portugal and Italy, respectively) and off-balance-sheet exposure other than derivatives – contingent liabilities and commitments– amounting to €5,449 million (€5,349 million, €91 million and €9 million to Spain, Portugal and Italy, respectively). (**) Presented without taking into account the Other comprehensive income recognized (€27 million). (***) “Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. Sovereign risk by country of issuer/borrower at December 31, 2015 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated at Financial Loans and fair value assets Held-to- advances to Total net through profit Short available- Loans and maturity customers direct Other than or loss positions for-sale receivables investments (**) exposure CDSs CDSs Spain 7,647 (2,446) 26,443 1,032 2,025 13,993 48,694 (217) — Portugal 278 (174) 7,916 916 — 1,071 10,007 — 1 Italy 3,980 (1,263) — — — — 2,717 (4) 4 Greece — — — — — — — — — Ireland — — — — — — — 6 — (*) Information prepared under EBA standards. Also, there are government debt securities on insurance companies' balance sheets amounting to €11,273 million (of which €9,892 million, €605 million and €776 million relate to Spain, Portugal and Italy, respectively) and off-balance-sheet exposure other than derivatives –contingent liabilities and commitments– amounting to €3,134 million (€3,045 million and €89 million to Spain and Portugal, respectively). (**) Presented without taking into account the Other comprehensive income recognized (€31 million). (***) "Other than CDSs" refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. The detail of the Group's other exposure to other counterparties (private sector, central banks and other public entities that are not considered to be sovereign risks) in the aforementioned countries at December 31, 2017, 2016 and 2015 is as follows: Exposure to other counterparties by country of issuer/borrower at December 31, 2017 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated Financial Loans and Balances Reverse at fair value assets Investments advances to Total net with central repurchase through profit or available-for- Loans and held-to- customers direct Other than banks agreements loss sale receivables maturity (Note 10)(*) exposure CDSs CDSs Spain 36,091 6,932 623 4,784 — 210,976 2,299 2 Portugal 761 178 160 764 4,007 106 35,650 41,626 1,416 — Italy 17 2,416 438 1,010 — — 10,015 13,896 211 5 Greece — — — — — — 56 56 30 — Ireland — — 20 476 — 1,981 79 — (*) Also, the Group has off-balance-sheet exposure other than derivatives -contingent liabilities and commitments- amounting to €81,072 million, €8,936 million, €4,310 million, €200 million and €714 million, of which Grupo Banco Popular €15,460 million, to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively. (**) Presented excluding Other comprehensive income and impairment losses recognized (€10,653 million of which around €3,986 of Grupo Banco Popular). (***) “Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. (****) €83,625 million were included within the direct exposures of the Balance Sheet mainly from debt securities of Grupo Banco Popular. Exposure to other counterparties by country of issuer/borrower at December 31, 2016 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated Financial Loans and Balances Reverse at fair value assets Investments advances to Total net with central repurchase through profit or available-for- Loans and held-to- customers direct Other than banks agreements loss sale receivables maturity (Note 10)(*) exposure CDSs CDSs Spain 9,640 8,550 1,223 4,663 711 — 147,246 172,033 2,977 (16) Portugal 655 — 84 426 3,936 240 28,809 34,150 1,600 — Italy 26 — 818 732 — — 6,992 8,568 161 6 Greece — — — — — — 47 47 34 — Ireland — — 45 396 77 — 985 1,503 690 — (*) Also, the Group has off-balance-sheet exposure other than derivatives -contingent liabilities and commitments- amounting to €64,522 million, €6,993 million, €3,364 million, €268 million and €369 million to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively. (**) Presented excluding Other comprehensive income and impairment losses recognized (€8,692 million). (***) “Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. Exposure to other counterparties by country of issuer/borrower at December 31, 2015 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated Financial Loans and Balances Reverse at fair value assets advances to Total net with central repurchase through profit or available-for- Loans and customers direct Other than banks agreements loss sale receivables (Note 10) (*) exposure CDSs CDSs Spain 2,349 15,739 1,545 4,166 1,143 153,863 178,805 3,367 (42) Portugal 2,938 — 159 992 2,999 29,928 37,016 1,729 — Italy 5 — 167 813 — 6,713 7,698 35 5 Greece — — — — — 44 44 32 — Ireland — — 63 239 40 734 1,076 300 — (*) Also, the Group has off-balance-sheet exposure other than derivatives -contingent liabilities and commitments- amounting to €64,159 million, €6,374 million, €3,746 million, €17 million and €387 million to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively. (**) Presented excluding Other comprehensive income and impairment losses recognized (€11,641 million). (***) “Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. Following is certain information on the notional amount of the CDSs at December 31, 2017, 2016 and 2015 detailed in the foregoing tables: 31/12/17 Millions of euros Notional amount Fair value Bought Sold Net Bought Sold Net Spain Sovereign — — — — — — Other 324 499 (175) (3) 5 2 Portugal Sovereign 25 128 (103) (1) 1 — Other 1 1 — — — — Italy Sovereign 25 450 (425) — 5 5 Other 225 201 24 (3) 8 5 31/12/16 Millions of euros Notional amount Fair value Bought Sold Net Bought Sold Net Spain Sovereign — — — — — — Other 534 751 (217) (3) (13) (16) Portugal Sovereign 28 290 (262) 1 (1) — Other — 6 (6) — — — Italy Sovereign 78 503 (425) — 2 2 Other 317 362 (45) (1) 7 6 31/12/15 Millions of euros Notional amount Fair value Bought Sold Net Bought Sold Net Spain Sovereign — — — — — — Other 724 991 (267) (3) (39) (42) Portugal Sovereign 28 187 (159) — 1 1 Other 71 77 (6) — — — Italy Sovereign 183 448 (265) (1) 5 4 Other 553 618 (65) 3 2 5 |
Geographical and business segme
Geographical and business segment reporting | 12 Months Ended |
Dec. 31, 2017 | |
Geographical and business segment reporting | |
Geographical and business segment reporting | 52. Geographical and business segment reporting Business segment reporting is a basic tool used for monitoring and managing the Group’s various activities. a) This primary level of segmentation, which is based on the Group’s management structure, comprises five segments: four operating areas plus the corporate center. The operating areas, which include all the business activities carried on therein by the Group, are: Continental Europe, the United Kingdom, Latin America and the United States, based on the location of the Group’s assets. The Continental Europe area encompasses all the business activities carried on in the region. The United Kingdom area includes the business activities carried on by the various Group units and branches with a presence in the UK. The Latin America area includes all the financial activities carried on by the Group through its banks and subsidiaries in the region. The United States area includes the holding company (SHUSA) and the businesses of Santander Bank, Santander Consumer USA, Banco Santander Puerto Rico, Banco Santander International’s specialized unit and the New York branch. The corporate center segment includes the centralized management business relating to financial investments, financial management of the structural currency position, within the remit of the Group’s corporate asset and liability management committee, and management of liquidity and equity through issues. The financial information of each reportable segment is prepared by aggregating the figures for the Group’s various business units. The basic information used for segment reporting comprises the accounting data of the legal units composing each segment and the data available in the management information systems. All segment financial statements have been prepared on a basis consistent with the accounting policies used by the Group. Consequently, the sum of the various segment income statements is equal to the consolidated income statement. With regard to the balance sheet, due to the required segregation of the various business units (included in a single consolidated balance sheet), the amounts lent and borrowed between the units are shown as increases in the assets and liabilities of each business. These amounts relating to intra-Group liquidity are eliminated and are shown in the Intra-Group eliminations column in the table below in order to reconcile the amounts contributed by each business unit to the consolidated Group’s balance sheet. There are no customers located in areas other than those in which the Group’s assets are located that generate income exceeding 10% of total income. The condensed balance sheets and income statements of the various geographical segments are as follows: Millions of euros 2017 Continental United Latin United Corporate Intra-Group (Condensed) balance sheet Europe Kingdom America States center eliminations Total Total Assets 694,697 361,230 290,818 114,388 133,353 (150,181) 1,444,305 Loans and advances to customers 382,855 243,616 146,133 71,963 5,326 (978) 848,915 Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions 128,185 56,762 55,935 13,300 400 (66,157) 188,425 Debt instruments 100,188 26,188 57,364 13,843 1,768 — 199,351 Other financial Assets (*) 39,918 24,690 14,226 3,368 2,117 — 84,319 Other asset accounts 43,551 9,974 17,160 11,914 123,742 (83,046) 123,295 Total Liabilities Customer deposits 354,272 230,504 141,543 51,189 222 — 777,730 Central Banks and Credit institutions 172,987 27,833 39,212 15,884 1,533 (67,135) 190,314 Debt instruments 61,214 61,112 34,434 26,176 35,030 — 217,966 Other financial liabilities (**) 45,920 21,167 36,084 2,503 1,625 — 107,299 Other liabilities accounts 17,331 4,310 10,994 3,437 8,091 — 44,163 Total Equity 42,973 16,304 28,551 15,199 86,852 (83,046) 106,833 Other Customer funds under management 74,314 8,657 80,732 2,871 — — 166,574 Investment funds 52,320 8,543 74,435 452 — — 135,750 Pension funds 11,566 — — — — — 11,566 Assets under management 10,428 114 6,297 2,419 — — 19,258 (*) Including Trading derivatives and Equity instruments. (**) Including Trading derivatives, Short positions and Other financial liabilities. The corporate center segment acts as the Group’s holding company. Therefore, it manages all equity (share capital and reserves of all the units) and determines the allocation thereof to each unit. The Group’s share capital and reserves are initially assigned to this segment, and is then allocated in accordance with corporate policies to the business units. This allocation is shown as an asset of the corporate center segment (included in Other asset accounts) and as a liability of each business unit (included in Share capital, reserves, profit for the year and Other comprehensive income). Therefore, the allocation is reflected in the balance sheet net of adjustments for intra-Group eliminations in order not to duplicate the balances and obtain the total consolidated balance sheet for the Group. Millions of euros 2016 Continental United Latin United Corporate Intra-Group (Condensed) balance sheet Europe Kingdom America States center eliminations Total Total Assets 520,134 354,960 320,768 137,391 132,154 (126,282) 1,339,125 Loans and advances to customers 297,214 251,251 152,187 85,389 4,429 — 790,470 Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions 77,232 36,643 67,400 16,970 2,640 (47,744) 153,141 Debt instruments 80,639 28,045 63,314 17,940 1,374 — 191,312 Other financial Assets (*) 40,689 26,819 18,696 3,566 2,803 — 92,573 Other asset accounts 24,360 12,202 19,171 13,526 120,908 (78,538) 111,629 Total Liabilities Customer deposits 269,934 212,113 143,747 64,460 857 — 691,111 Central Banks and Credit institutions 105,152 21,590 47,585 22,264 552 (47,745) 149,398 Debt instruments 53,064 71,108 47,436 26,340 30,921 — 228,869 Other financial liabilities (**) 49,042 27,913 41,395 2,907 2,633 — 123,890 Other liabilities accounts 9,452 5,221 11,291 4,770 12,424 — 43,158 Total Equity 33,490 17,015 29,314 16,650 84,767 (78,537) 102,699 Other Customer funds under management 65,834 8,564 81,034 3,828 — — 159,260 Investment funds 46,229 8,446 74,554 701 — — 129,930 Pension funds 11,298 — — — — — 11,298 Assets under management 8,307 118 6,480 3,127 — — 18,032 (*) Including Tangible assets and Other intangible assets. (**) Including, in addition to liability items not broken down, the balances of Non-controlling interests. Millions of euros 2015 Continental United Latin United Corporate Intra-Group (Condensed) balance sheet Europe Kingdom America States center eliminations Total Total Assets 538,645 383,155 267,885 130,584 148,134 (128,143) 1,340,260 Loans and advances to customers 287,252 282,673 133,139 84,190 3,594 — 790,848 Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions 92,414 38,509 51,275 11,527 17,536 (50,980) 160,281 Debt instruments 85,665 20,308 50,085 19,693 4,379 — 180,130 Other financial Assets (*) 46,681 32,871 15,489 3,187 2,200 — 100,428 Other asset accounts 26,633 8,794 17,897 11,987 120,425 (77,163) 108,573 Total Liabilities Customer deposits 263,462 231,947 122,413 60,115 5,205 — 683,142 Central Banks and Credit institutions 132,688 23,610 42,395 26,170 1,490 (50,980) 175,373 Debt instruments 51,103 74,260 39,526 23,905 37,366 — 226,160 Other financial liabilities (**) 49,798 29,000 30,417 2,772 2,668 — 114,655 Other liabilities accounts 5,748 6,975 9,160 4,465 15,829 — 42,177 Total Equity 35,846 17,363 23,974 13,157 85,576 (77,163) 98,753 Other Customer funds under management 64,433 9,703 59,065 7,540 — — 140,741 Investment funds 44,393 9,564 54,426 645 — — 109,028 Pension funds 11,376 — — — — — 11,376 Assets under management 8,664 139 4,639 6,895 — — 20,337 (*) Including Tangible assets and Other intangible assets. (**) Including, in addition to liability items not broken down, the balances of Non-controlling interests. Millions of euros 2017 (Condensed) Continental United Latin United Corporate income statement Europe Kingdom America States center Total INTEREST INCOME / (CHARGES) 9,270 4,364 15,944 5,569 (851) 34,296 Income from equity instruments 274 1 44 20 45 384 Income from companies accounted for using the equity method 378 32 369 (11) (64) 704 Net fee and commission income (expense) 4,171 1,003 5,490 971 (38) 11,597 Other income(*) 626 282 1,012 (29) (226) 1,665 Other operating income (expenses) (256) 34 (386) 401 (84) (291) TOTAL INCOME 14,463 5,716 22,473 6,921 (1,218) 48,355 Administrative expenses and depreciation (7,688) (2,862) (8,694) (3,274) (475) (22,993) Provisions or reversal of provisions (990) (429) (1,145) (174) (320) (3,058) Impairment losses on financial assets (1,111) (205) (5,014) (2,878) (51) (9,259) Impairment losses on other assets (189) (50) (112) (27) (895) (1,273) Other income and charges (115) 14 (31) 16 435 319 OPERATING PROFIT/(LOSS) BEFORE TAX 4,370 2,184 7,477 584 (2,524) 12,091 Income tax (1,158) (661) (2,380) 116 199 (3,884) PROFIT FROM CONTINUING OPERATIONS 3,212 1,523 5,097 700 (2,325) 8,207 Profit (Loss) from discontinued operations — — — — — — CONSOLIDATED PROFIT FOR THE YEAR 3,212 1,523 5,097 700 (2,325) 8,207 Attributable to non-controlling interests 381 25 813 368 (1) 1,588 PROFIT ATTRIBUTABLE TO THE PARENT 2,831 1,498 4,284 332 (2,326) 6,619 (*) Millions of euros 2016 2015 (Condensed) Continental United Latin United Corporate Continental United Latin United Corporate income statement Europe Kingdom America States center Total Europe Kingdom America States center Total INTEREST INCOME / (CHARGES) 8,161 4,405 13,345 5,917 (739) 31,089 8,006 4,942 13,752 6,116 (4) 32,812 Income from equity instruments 272 1 78 30 32 413 277 1 57 48 72 455 Income from companies accounted for using the equity method 168 16 309 2 (51) 444 120 10 285 3 (43) 375 Net fee and commission income (expense) 3,497 1,031 4,581 1,102 (31) 10,180 3,417 1,091 4,452 1,086 (13) 10,033 Other income (*) 818 319 806 22 136 2,101 1,186 302 517 231 150 2,386 Other operating income (expenses) (110) 44 (355) 460 (34) 5 (178) 37 (308) 316 (33) (166) TOTAL INCOME 12,806 5,816 18,764 7,533 (687) 44,232 12,828 6,383 18,755 7,800 129 45,895 Administrative expenses and depreciation (6,781) (2,967) (7,692) (3,197) (464) (21,101) (6,735) (3,357) (7,906) (3,025) (697) (21,720) Provisions or reversal of provisions (444) (276) (800) (72) (916) (2,508) (352) (351) (831) (164) (1,408) (3,106) Impairment losses on financial assets (1,383) (58) (4,912) (3,187) (86) (9,626) (2,083) (107) (5,108) (3,103) (251) (10,652) Impairment losses on other assets (36) (64) (42) (35) 37 (140) (172) (9) 20 — (931) (1,092) Other income and charges (150) 1 59 (6) 7 (89) (120) 5 78 16 243 222 OPERATING PROFIT/(LOSS) BEFORE TAX 4,012 2,452 5,377 1,036 (2,109) 10,768 3,366 2,564 5,008 1,524 (2,915) 9,547 Income tax (1,083) (736) (1,363) (355) 255 (3,282) (887) (556) (1,219) (517) 966 (2,213) PROFIT FROM CONTINUING OPERATIONS 2,929 1,716 4,014 681 (1,854) 7,486 2,479 2,008 3,789 1,007 (1,949) 7,334 Profit (Loss) from discontinued operations — — — — — — — — — — — — CONSOLIDATED PROFIT FOR THE YEAR 2,929 1,716 4,014 681 (1,854) 7,486 2,479 2,008 3,789 1,007 (1,949) 7,334 Attributable to non-controlling interests 330 36 628 286 2 1,282 261 37 596 329 145 1,368 PROFIT ATTRIBUTABLE TO THE PARENT 2,599 1,680 3,386 395 (1,856) 6,204 2,218 1,971 3,193 678 (2,094) 5,966 (*) Following is the detail of revenue by the geographical segments used by the Group. For the purposes of the table below, revenue is deemed to be that recognized under Interest and similar income, Income from equity instruments, Fee and commission income, Other income (without considering exchange differences, net) and Other operating income in the consolidated income statements for 2017, 2016 and 2015. Revenue (Millions of euros) Revenue from external Inter-segment customers revenue Total revenue 2017 2016 2015 2017 2016 2015 2017 2016 2015 Continental Europe 19,041 16,567 17,653 504 236 422 19,545 16,803 18,075 United Kingdom 8,837 9,626 10,970 (130) 390 416 8,707 10,016 11,386 Latin America 37,623 36,972 32,927 230 54 (776) 37,853 37,026 32,151 United States 8,663 9,322 9,364 186 281 157 8,849 9,603 9,521 Corporate center 18 1,672 982 4,018 4,507 6,643 4,036 6,179 7,625 Inter-segment revenue adjustments and eliminations — — — (4,808) (5,468) (6,862) (4,808) (5,468) (6,862) 74,182 74,159 71,896 — — — 74,182 74,159 71,896 b) At this secondary level of segment reporting, the Group is structured into commercial banking, Santander Global Corporate Banking and the segment relating to Real Estate Operations in Spain; the sum of these segments is equal to that of the primary geographical reportable segments. Total figures for the Group are obtained by adding to the business segments the data for the corporate center. The commercial banking segment encompasses the entire customer banking business (including the consumer finance business), except for the Corporate Banking business, which is managed through Santander Global Corporate Banking. Also, this segment includes the gains or losses on the hedging positions taken in each country, within the remit of each of their asset-liability management committees. The Santander Global Corporate Banking segment reflects the returns on the global corporate banking business and the markets and investment banking business worldwide, including all the globally managed treasury departments (excluding the portion allocated to commercial banking customers) and the equities business. The Real Estate Operations in Spain include loans to customers engaging mainly in property development, for which a specialized management model is in place, Metrovacesa's real estate assets together with the Group's ownership interest in SAREB and foreclosed assets for sale and rent purposes. The condensed income statements are as follows: Millions of euros 2017 Santander Global Real estate Commercial Corporate operations in Corporate (Condensed) income statement banking Banking Spain center Total INTEREST INCOME / (CHARGES) 32,704 2,478 (35) (851) 34,296 Income from equity instruments 77 262 — 45 384 Income from companies accounted for using the equity method 781 (13) — (64) 704 Net fee and commission income (expense) 10,007 1,627 1 (38) 11,597 Other income (*) 667 1,224 — (226) 1,665 Other operating income (expenses) (210) (26) 29 (84) (291) TOTAL INCOME 44,026 5,552 (5) (1,218) 48,355 Administrative expenses and depreciation (20,323) (1,988) (207) (475) (22,993) Provisions or reversal of provisions (2,718) (24) 4 (320) (3,058) Impairment losses on financial assets (8,440) (690) (78) (51) (9,259) Net impairment losses on other assets (206) (51) (121) (895) (1,273) Other non-financial gains/(losses) (74) 5 (47) 435 319 OPERATING PROFIT/(LOSS) BEFORE TAX 12,265 2,804 (454) (2,524) 12,091 Income tax (3,417) (802) 136 199 (3,884) PROFIT FROM CONTINUING OPERATIONS 8,848 2,002 (318) (2,325) 8,207 Profit (Loss) from discontinued operations — — — — — CONSOLIDATED PROFIT FOR THE YEAR 8,848 2,002 (318) (2,325) 8,207 Attributable to non-controlling interests 1,421 181 (15) 1 1,588 PROFIT ATTRIBUTABLE TO THE PARENT 7,427 1,821 (303) (2,326) 6,619 (*) Millions of euros 2016 2015 Santander Santander Global Real estate Global Real estate Commercial Corporate operations Corporate Commercial Corporate operations Corporate (Condensed) income statement banking Banking in Spain center Total banking Banking in Spain center Total INTEREST INCOME / (CHARGES) 29,090 2,781 (43) (739) 31,089 30,027 2,830 (41) (4) 32,812 Income from equity instruments 131 250 — 32 413 124 259 — 72 455 Income from companies accounted for using the equity method 505 (7) (3) (51) 444 434 (6) (10) (43) 375 Net fee and commission income (expense) 8,745 1,465 1 (31) 10,180 8,621 1,425 — (13) 10,033 Other income (*) 663 1,293 9 136 2,101 1,346 739 151 150 2,386 Other operating income (expenses) (79) 43 75 (34) 5 (194) 24 37 (33) (166) TOTAL INCOME 39,055 5,825 39 (687) 44,232 40,358 5,271 137 129 45,895 Administrative expenses and depreciation (18,475) (1,951) (211) (464) (21,101) (18,730) (2,058) (235) (697) (21,720) Provisions or reversal of provisions (1,547) (40) (5) (916) (2,508) (1,656) (51) 9 (1,408) (3,106) Impairment losses on financial assets (8,713) (660) (167) (86) (9,626) (9,462) (688) (251) (251) (10,652) Net impairment losses on other assets (97) (59) (21) 37 (140) 2 (37) (126) (931) (1,092) Other non-financial gains/(losses) (22) 22 (96) 7 (89) 117 4 (142) 243 222 OPERATING PROFIT/(LOSS) BEFORE TAX 10,201 3,137 (461) (2,109) 10,768 10,629 2,441 (608) (2,915) 9,547 Income tax (2,799) (876) 138 255 (3,282) (2,663) (695) 179 966 (2,213) PROFIT FROM CONTINUING OPERATIONS 7,402 2,261 (323) (1,854) 7,486 7,966 1,746 (429) (1,949) 7,334 Profit (Loss) from discontinued operations — — — — — — — — — — CONSOLIDATED PROFIT FOR THE YEAR 7,402 2,261 (323) (1,854) 7,486 7,966 1,746 (429) (1,949) 7,334 Attributable to non-controlling interests 1,105 172 3 2 1,282 1,112 120 (9) 145 1,368 PROFIT ATTRIBUTABLE TO THE PARENT 6,297 2,089 (326) (1,856) 6,204 6,854 1,626 (420) (2,094) 5,966 (*) |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2017 | |
Related parties | |
Related parties | 53. Related parties The parties related to the Group are deemed to include, in addition to its subsidiaries, associates and joint ventures, the Bank’s key management personnel (the members of its Board of Directors and the executive vice presidents, together with their close family members) and the entities over which the key management personnel may exercise significant influence or control. Following below is the balance sheet balances and amounts of the Group's income statement corresponding to operations with the parties related to it, distinguishing between associates and joint ventures, members of the Bank’s Board of Directors, the Bank’s executive vice presidents, and other related parties. Related-party transactions were made on terms equivalent to those that prevail in arm’s-length transactions or, when this was not the case, the related compensation in kind was recognize. Millions of euros 2017 2016 2015 Members Members Members Associates of the Other Associates of the Other Associates of the Other and joint Board of Executive related and joint Board of Executive related and joint Board of Executive related ventures Directors vice-presidents parties ventures Directors vice-presidents parties ventures Directors vice-presidents parties Assets: 6,048 — 21 300 5,884 — 22 307 6,542 — 28 573 Loans and advances: Credit institutions 472 — — — 223 — — - 8 — — — Loans and advances: Customers 5,081 — 21 279 5,209 — 22 286 5,997 — 28 293 Debt instruments 473 — — 21 452 — — 21 537 — — 280 Others 22 — — — — — — — — — — — Liabilities: 748 19 14 63 824 27 10 124 1,122 25 16 103 Financial liabilities: Credit institutions 309 — — — 155 — — — 501 — — — Financial liabilities:Customers 414 19 14 63 669 27 10 124 620 25 16 103 Marketable debt securities 4 — — — — — — — 1 — — — Others 21 — — — — — — — — — — — Income statement: 1,020 — — 14 609 — — 13 802 — — 24 Interest income 57 — — 8 67 — — 10 98 — — 17 Interest expense (3) — — — (15) — — (1) (15) — — — Gains/losses on financial assets and liabilities and others 302 — — — 15 — — — 73 — — — Commission income 735 — — 6 561 — — 4 664 — — 8 Commission expense (71) — — — (19) — — — (18) — — (1) Other: 3,881 7 3 597 4,146 1 3 846 4,123 2 4 2,682 Contingent liabilities and others 6 6 1 352 19 — — 139 46 — — 191 Contingent commitments 301 1 2 60 17 1 3 417 95 2 4 132 Derivative financial instruments 3,574 — — 185 4,110 — — 290 3,982 — — 2,359 In addition to the detail provided above, there were insurance contracts linked to pensions amounting to €239 million at December 31, 2017 (December 31, 2016: €269 million; December 31, 2015: €299 million). |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2017 | |
Risk management | |
Risk management | 54. Risk management a) Cornerstones of the risk function The risk management and control model deployed by the Santander Group is based on the principles set down below, which are also aligned with the Group’s strategy and, in addition take into account the regulatory and supervisory requirements, as well as the best market practices: · An advanced and comprehensive risk management policy, with a forward-looking approach that allows the Group to maintain a medium-low risk profile, through a risk appetite defined by Banco Santander’s board of directors and the identification and assessment of all risks. · Lines of defense that enable risk to be managed at source, controlled and monitored, in addition to an independent assessment. · A model predicated on autonomous subsidiaries with robust governance based on a clear committee structure that separates the risk management and control functions. · Information and technological management processes that allow all risks to be identified, developed, managed and reported at appropriate levels. · A risk culture integrated throughout the organization, composed of a series of attitudes, values, skills and action guidelines to deal with all risks. · All risks are managed by the units that generate them, using advanced models and tools. 1. The risk map covers the main risk categories in which the Group has its most significant current and/or potential exposures, thus facilitating the identification thereof. The risk map includes the following: · Credit risk: risk of financial loss arising from the default or credit quality deterioration of a customer or other third party, to which the Santander Group has either directly provided credit or for which it has assumed a contractual obligation. · Market risk: risk incurred as a result of changes in market factors that affect the value of positions in the trading book. · Liquidity risk: risk that the Group does not have the liquid financial resources to meet its obligations when they fall due, or can only obtain them at high cost. · Structural risk: risk arising from the management of different balance sheet items, not only in the banking book but also in relation to insurance and pension activities. · Capital risk: risk of Santander Group not having an adequate amount or quality of capital to meet its internal business objectives, regulatory requirements or market expectations. · Operational risk: defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk. · Conduct risk: risk arising from practices, processes or behaviors which are not adequate or compliant with internal regulation, legal or supervisory requirements. · Reputational risk: risk of current or potential negative economic impact to the Bank due to damage to the perception of the Bank on the part of employees, customers, shareholders/investors and the wider community. · Model risk: risk of loss arising from inaccurate predictions, causing the Bank to make suboptimal decisions, or from a model being used inappropriately. · Strategic risk: risk of loss or damage arising from strategic decisions or their poor implementation, that impact the long term interests of our key stakeholders, or from an inability to adapt to external developments. 2. For the proper development of the risk function, the Group has a strong governance policy in place to ensure that the risk decisions taken are appropriate and efficient and that they are effectively controlled within the established risk appetite framework. The Group Chief Risk Officer (GCRO) oversees this function within the Group, advises and challenges the executive line and also reports independently to the risk, regulatory and compliance committee and to the board. 2.1. Banco Santander’s management and control model is based on three lines of defense. The business functions and all support functions that generate exposure to a risk make up the first line of defense. The role of these functions is to establish a management structure for the risks that are generated as part of their activity ensuring that these remain within the approved appetite risk and the established limits. The second line of defense is composed by the risk control function, and the compliance and conduct function. The role of these functions is to provide independent oversight and challenge to the risk management activities performed by the first line of defense. These functions are responsible for ensuring that the risks are managed in accordance with the risk appetite defined by senior management and to foster a strong risk culture across the whole organization. They must also provide guidance, advice and expert opinion in all key risk-related matters. Internal audit as the third line of defense. As the last layer of control, regularly assesses policies, methods and procedures to ensure they are adequate and are being implemented effectively in the management and control of all risks. The risk control, compliance and conduct and internal audit functions are sufficiently separated and independent from each other and regarding to other functions they control or supervise for the performance of their duties, and they have access to the board of directors and/or its committees through their maximum responsibles. 2.2. Ultimately, the board of directors is responsible for the risk control and management, and, in particular, for setting the risk appetite for Santander Group. It can also delegate its powers to committees classed as independent control bodies or decision-making bodies. The board uses the Risk supervision, Regulation and Compliance Committee as an independent risk control and oversight committee. The Group’s executive committee also pays special attention to the management of all risks. The following bodies form the highest level of risk governance: Independent control bodies Risk, regulation and compliance oversight committee: The purpose of this committee is to assist the board in matters of risk supervision and control, in the Group risk policies definition, in the relation with the supervisory authorities and in aspects of regulation and compliance, sustainability and corporate governance. It is chaired by an independent director and is formed by external or non-executive directors, the majority of which are independent. Risk control committee (CCR): This collegiate body is responsible for the effective risk control, ensuring they are managed in accordance with the risk appetite level approved by the board, permanently adopting an all-inclusive overview of all the risks included in the general risk framework. This duty implies identifying and tracking both current and potential risks, and gauging their impact on the Group's risk profile. This committee is chaired by the Group Chief Risk Officer (GCRO) and is composed of senior management members. The risk function, which chairs the committee, as well as the functions of compliance and conduct, financial accounting and control, and management control are represented, among others. The risk function officers (CROs) of local entities take part in the committee meetings on a regular basis to report on the risk profile of the entities and other aspects. The risk control committee reports to the Risk supervision, Regulation and Compliance Committee and assists it in its function of supporting the board. Decision-making bodies Executive risk committee (ERC): This collegiate body is responsible for the management of all risks under the powers allocated to it by the board of directors. The committee takes part in risk decisions at the highest level, ensuring that they are within the limits set out in the Group's risk appetite. It reports on its activity to the board or its committees whenever it is required to do so. It is chaired by the CEO and comprises executive directors, and the entity’s senior management. The risk function, finance and compliance and conduct, among others, are represented. The GCRO has a right to veto the decisions taken by this committee. 2.3. Alignment of units with the corporate center The management and control model shares, in all the Group’s units, basic principles via corporate frameworks. These frameworks are established by the Group's board of directors, and the local units adhere to them through their respective boards of directors, shaping the relationship between the subsidiaries and the Group, including the role played by the latter in taking important decisions by validating them. Pursuant to these shared principles and basics, each unit adapts its risk management to its local reality, in accordance with corporate frameworks and reference documents provided by the Corporation, thus creating a recognizable and common risk management and control model in Santander Group. Committee structure The governance bodies of subsidiary entities are structured in accordance with local regulatory and legal requirements and the dimension and complexity of each subsidiary, being consistent with those of the parent company, as established in the internal governance framework, thereby facilitating communication, reporting and effective control. The Group-Subsidiaries Governance Model and good governance practices for subsidiaries recommends that each subsidiary should have bylaw-mandated risk committees and other executive risk committees, in line with best corporate governance practices, consistently with those already in place in the Group. Given its capacity for comprehensive (enterprise wide) and aggregated oversight of all risks, the Corporation exercises a validation and questioning role with regard to the operations and management policies of the subsidiaries, insofar as they affect the Group’s risk profile. 3. 3.1. Risk appetite and limits structure Santander defines risk appetite as the amount and type of risks considered reasonable to assume for implementing its business strategy, so that the Group can maintain its ordinary activity in the event of unexpected circumstances. For the latter, severe scenarios are taken into account that could have a negative impact on the levels of capital, liquidity, profitability and/or the share price. The board is responsible for annually setting and updating the risk appetite, monitoring the Bank’s risk profile and ensuring consistency between both of them. The risk appetite is set for the whole Group, as well as for each of the main business units in accordance with a corporate methodology adapted to the circumstances of each unit/market. At local level, the boards of the subsidiaries are responsible for approving the respective risk appetite proposals once they have been validated by the Group. Corporate risk appetite principles The following principles govern the Santander Group’s risk appetite in all its units: · Responsibility of the board and of senior management. The board is the maximum body responsible for setting the risk appetite and its regulation support, as well as supervising its compliance. · Enterprise Wide Risk, backtesting and challenging of the risk profile. The risk appetite must consider all significant risks to which the Bank is exposed, facilitating an aggregate vision of the risk profile through the use of quantitative metrics and qualitative indicators. · Forward-looking view. The risk appetite must consider the desirable risk profile for the current moment, as well as in the medium term, taking into account both the most plausible circumstances and the stress scenarios. · Alignment with strategic and business plans and management integration ( 3 year plan, annual budget, ICAAP, ILAAP crisis recovery plans). The risk appetite is a benchmark in strategic and business planning and is integrated. · Coherence in the risk appetite of the various units and common risk language throughout the Organization. · Regular review, continuous backtesting and best practices and regulatory requirements adaptation. Limits, monitoring and control structure The risk appetite is formulated every year and includes a series of metrics and limits on these metric (statements) which express in quantitative and qualitative terms the maximum risk exposure that each unit of the Group or the Group as a whole is willing to assume. Fulfilling the risk appetite limits is continuously monitored. The specialized control functions report at least every quarter to the board and its risk committee on the risk profile adequacy with the authorized risk appetite. Linkage of the risk appetite limits with the limits used to manage the business units and portfolios is a key element for making the risk appetite an effective risk management tool. Pillars of the risk appetite The risk appetite is expressed via limits on quantitative metrics and qualitative indicators that measure the exposure or risk profile by type of risk, portfolio, segment and business line, in both current and stressed conditions. These metrics and risk appetite limits are articulated in five large areas that define the positioning that Santander’s senior management wants to adopt or maintain in the development of its business model: · The volatility in the income statement that the Group is willing to accept. · The solvency position that the Group wants to maintain. · The minimum liquidity position that the Group wants to have. · The maximum levels of concentration that the Group considers reasonable to admit. · Non-financial and transversal risks. 3.2. Risk identification and assessment (RIA) Santander Group carries out the identification and assessment of the different risks it is exposed to involving the different lines of defense to strengthen its advanced and proactive risk management practice, establishing management standards that not only meet regulatory requirements but also reflect best practices in the market, and being also a risk culture transmission mechanism. The function includes all the risk identification and assessment processes, as well as its integration within the Santander Group risk profile, its units and activities, thereby keeping the risk map up to date. In addition to identifying and assessing the Group's risk profile by risk type and unit, RIA analyses the evolution of risks and identifies areas for improvement in each of the blocks that compose it: · Risk performance, enabling understanding of residual risk by risk type through a set of metrics and indicators calibrated using international standards. · Assessment of the control environment, measuring the degree of implementation of the target operating model, pursuant to advanced standards. · Forward-looking analysis of the unit, based on stress metrics and identification and/or assessment of the main threats to the strategic plan (Top Risks), enabling specific action plans to be put in place to mitigate potential impacts and monitoring these plans. In 2017, the function evolved along three main lines, ensuring the simplification and reinforcement of interaction among the communities of control and the completeness of the risk profile: · Update of the control environment standards based on industry performance, internal management models and regulatory requirements: i) Homogeneous conceptual architecture developed to enable consistent analysis and assessments, and to simplify data execution/exploitation, as well as the reporting to senior management. ii) Environment control assessments simplification. iii) Greater involvement of the different stakeholders of the communities of control, particularly local risk functions, corporate risk control functions and internal audit. iv) Prioritization of areas for improvement identified according to their materiality. · New technology platform to facilitate data use and process implementation: i) Manual processes automatization ii) Real time access to information in the different units and for all stakeholders. iii) Internal technology solution with improved data safety and enhanced user experience. iv) Information reporting module to design and produce ad hoc reports. · Wider scope by risk type and geography. 3.3. Scenario analysis The Group conducts advanced management of risks by analyzing the impact that different scenarios could trigger in the environment in which the Bank operates. These scenarios are expressed both in terms of macroeconomic variables, as well as other variables that affect management. Scenario analysis is a very robust and useful tool for management at all levels. It enables the assessment of - Group’s resistance to stressed environments or scenarios, and puts into force a set of measures that reduce its risk profile to these scenarios. The objective is to maximize the stability of the income statement and capital and liquidity levels. The robustness and consistency of the scenario analysis exercises are based on the following pillars: · Developing and integrating mathematical models that estimate the future evolution of metrics (e.g. credit losses), based on both historic information (internal to the Bank and external from the market), as well as simulation models. · Inclusion of expert judgement and know-how of portfolios, questioning and backtesting the models results. · The backtesting of the models results against the observed data, ensuring that the results are adequate. · The governance of the whole process, covering the models, scenarios, assumptions and rationale of the results, and their impact on management. From January 1, 2018, the processes, models and scenario analysis methodology will be included in the new regulatory provisions requirements (IFRS 9). The main uses of scenario analysis are as follows: · Regulatory uses: in which stress tests of scenarios are performed under guidelines set by the European regulator or by each of the various national regulators that supervise the Group. · Internal capital (ICAAP) or liquidity adequacy assessment processes (ILAAP) in which, although the regulator can impose certain requirements, the Group develops its own methodology to assess its capital and liquidity levels vis-à-vis various stress scenarios. These tools enable capital and liquidity management to be planned. · Risk appetite: this contains stressed metrics on which maximum loss levels (or minimum liquidity levels) are established that the Bank does not wish to exceed. · Recurrent risk management in different processes/tests: · Budgetary and strategic planning process, in the generation of commercial policies for risk approval, in the global risk analysis made by senior management and in specific analyses of activities and portfolios. · Identification of potential risks (“Top Risks”). After a systematic process to identify and assess all the risks to which the Group is exposed, the “Top Risks” are selected and the Entity’s risk profile is established. Each “Top Risk” has an associated macroeconomic or idiosyncratic scenario. To assess the impact of these risks on the Group, internal scenario analysis and stress testing models and methodologies are employed. · Recovery plan performed annually to establish the available measures the Bank will have, in order to survive an extremely severe financial crisis. The plan sets out a series of financial and macroeconomic stress scenarios, with differing degrees of severity, that include idiosyncratic and/or systemic events that are relevant for the Entity. 3.4. Risk Data Aggregation & Risk Reporting Framework (RDA/RRF) In recent years, Santander Group has developed and implemented the necessary structural and operating improvements to reinforce and consolidate enterprise-wide risk, based on complete, precise and regular data. This allows the Group's senior management to assess risk and act accordingly. In this sense, the strategic risk transformation plan is aligned with regulatory requirements, as evidenced in the review performed by the European supervisor with regard to compliance with the standards set forth in regulation BCBS 239. In 2017, the Group has worked to consolidate the comprehensive data and information management model, and the implementation and renewal of technology systems, thereby enabling a balanced reporting taxonomy to be maintained that covers all the key risk areas within the Organization, in compliance with the Group’s size, risk profile and activity. Therefore, three reports are submitted each month to senior management relating to risk management issues and the subsequent decision-making: the Group risks report, the risks report for each unit and the report on risk factors. c) Credit risk 1. Introduction to the credit risk treatment Credit risk is the risk of financial loss arising from the default or credit quality deterioration of a customer or other third party, to which the Santander Group has either directly provided credit or for which it has assumed a contractual obligation. The Group’s risks function is organized on the basis of three types of customers: · The Individuals segment includes all physical persons, except those with a business activity. This segment is, in turn, divided into sub-segments by income levels, which enables risk management adjusted to the type of customer. · The SMEs, Commercial Banking and Institutions segment includes companies and physical persons with business activity. It also includes public sector activities in general and private sector non-profitable entities. · The Santander Global Corporate Banking (SGCB) segment consists of corporate customers, financial institutions and sovereigns, comprising a closed list that is revised annually. This list is determined on the basis of a full analysis of the company (business type, countries of operation, product types, volume of revenues it represents for the Bank, etc.). The Group’s profile is mainly retail, accounting for 85% of total risk generated by the retail and commercial banking businesses. 2. Main aggregates and variations Following are the main aggregates relating to credit risk arising on customer business: Main credit risk aggregates arising on customer business (Management information data) Credit risk with customers 1 Non ‑ performing rate Coverage rate (millions of euros) (%) (%) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Continental Europe 337,768 331,706 321,395 4.50 5.92 7.27 58.0 60.0 64.2 Spain 172,176 172,974 173,032 4.72 5.41 6.53 45.9 48.3 48.1 Santander Consumer Finance 92,589 88,061 76,688 2.50 2.68 3.42 101.4 109.1 109.1 Portugal 32,816 31,922 5.71 8.81 7.46 59.1 63.7 99.0 Poland 24,391 21,902 20,951 4.57 5.42 6.30 68.2 61.0 64.0 UK 247,625 255,049 282,182 1.33 1.41 1.52 32.0 32.9 38.2 Latin América 165,683 151,302 4.50 4.81 4.96 84.6 87.3 79.0 Brasil 83,076 89,572 72,173 5.29 5.90 5.98 92.6 93.1 83.7 Mexico 28,939 29,682 32,463 2.69 2.76 3.38 97.5 103.8 90.6 Chile 40,406 40,864 35,213 4.96 5.05 5.62 58.2 59.1 53.9 Argentina 8,085 7,318 6,328 2.50 1.49 1.15 100.1 142.3 194.2 US 91,709 90,727 2.79 2.28 2.13 170.2 214.4 225.0 Puerto Rico 2,944 3,843 3,924 7.13 7.13 6.96 55.2 54.4 48.5 Santander Bank 44,237 54,089 1.21 1.33 1.16 102.2 99.6 114.5 SC USA 24,079 5.86 3.84 3.66 212.9 328.0 337.1 Total Grupo excluding Banco Popular 832,655 850,909 3.38 3.93 4.36 70.8 73.8 73.1 Banco Popular 88,313 — — 10.75 — — 48.7 — — Total Grupo 920,968 850,909 4.08 3.93 4.36 65.2 73.8 73.1 (1) Includes gross lending to customers, guarantees and documentary credits. Risk is diversified among the main regions where the Group operates 6 : Continental Europe (41%), UK (30%), Latin America (20%) and the US (9%), with a suitable balance between mature and emerging markets. Credit risk with customers fell by 3% in 2017, considering an unchanged perimeter, mainly due to the US, UK and Brazil (as a result of exchange rate effects). Growth in local currency was generalized across all units with the exception of the United States and Spain. These levels of lending, together with lower non-performing loans (NPLs) of €28,104 million (-16% vs. 2016) reduced the Group’s NPL ratio to 3.38% (-55 b.p. against 2016). For coverage of these NPLs, the Group recorded provisions of €8,997 million (-5.5% vs. December 2016), after deducting write-off recoveries. This fall is materialized in a decrease in the cost of credit to 1.12% (6 bp less than in the previous year). Detail of the main geographical areas 3.1. United Kingdom Credit risk with customers in the UK amounted to €247,625 million at the end of December 2017, accounting for 30% of the Group total. 1 Excluding Popular. Mortgage portfolio It is worth highlighting the individuals mortgage portfolio because of its importance for Santander UK and all of the Group’s lending. This stood at €174,930 million at the end of 2017. This portfolio consists of mortgages for the housing acquisition, granted to new, as well as existing customers and always constituting the first mortgage. There are no operations that entail second or successive liens on mortgaged properties. Geographically, the credit exposures are predominantly concentrated in the south east area of the UK and, particularly, in the metropolitan area of London. All properties are valued independently before each new transaction is approved, in accordance with the Group’s risk management principles. The value of the property used as collateral for mortgages that have already been granted is updated quarterly by an independent agency, using an automatic valuation system in accordance with market practices and in compliance with the prevailing legislation. 3.2. Spain Portfolio overview Total credit risk (including guarantees and documentary credits) at Santander Spain (excluding the real estate unit, which is discussed subsequently in more detail) amounted to €172,176 million (20.7% of the Group total), with an adequate level of diversification by both product and customer segment. Growth in new production in the main portfolios for individuals and corporates continued in 2017, underpinned by the improved economic situation and the different strategies implemented by the Bank. Total credit risk was down 0.5% in year-on-year terms, mainly due to decreased funding extended to public administrations and the pace of repayments that exceeded growth in new production in the housing mortgages segment. All other individuals loans (consumer loans and credit cards) returned to growth tendency, and the commercial banking segment consolidated its tendency started in 2016. The NPL ratio for the total portfolio was 4.72% 69 bp less than in 2016. The fall in lending (which increased the NPL ratio by 3 bp) was offset by the better NPL figure (which reduced the ratio by 72 bp). This improvement was mainly due to gross NPL entries, which were 19% lower than in 2016, and to the normalization of several restructured positions and portfolio sales. Portfolio of home purchase loans to families Home purchase loans granted to families in Spain stood at 64,588 million at 2017 year-end. Of this amount, 99.18% was secured by mortgages. 31/12/17 Gross Of which: In millions of euros amount Non - performing Home purchase loans to families 64,588 2,594 Without mortgage guarantee 532 147 With mortgage guarantee 64,056 2,447 The risk profile of the home purchase mortgage loan portfolio in Spain remained at a medium-low level, with limited prospects of additional impairment: · All mortgage transactions include principal repayments from the very first day. · Early repayment is common practice and, accordingly, the average life of the transactions is far shorter than their contractual term. · High quality of collateral, since the portfolio consists almost exclusively of principal-residence loans. · Stable average debt-to-income ratio at around 28.2%. · 79.8% of the portfolio has an LTV of less than 80% (calculated as the ratio of total exposure to the amount of the latest available appraisal). Breakdown of the credit with mortgage guarantee to households for house acquisition, according to the percentage that the total risk represents on the amount of the latest available valuation (loan to value). 31/12/17 Loan to value ratio More than More than More than 40% and 60% and 80% and Less than or less than less than less than or More than In millions of euros equal to 40% 60% 80% equal to 100% 100% Total Gross amount 14,430 17,434 19,232 7,899 5,061 64,056 Of which: Watchlist /Non-performing 224 354 591 504 774 2,447 Credit policies limit the maximum loan to value to 80% for first residence mortgages and 70% in the case of second home mortgages. Companies portfolio Credit risk assumed directly with SMEs and Corporates (€96,726 million) is the main lending segment in Spain (56% of the total). Most of the portfolio (95%) corresponds to customers who have been assigned an analyst to monitor them continuously throughout the risk cycle. The non-performing loans ratio of this portfolio stood at 4.88% in 2017. Real estate business The Group manages, as a separate unit, the real estate business portfolio as result of the previous year’s sector crisis and the new business identified as viable. In both cases the Group has specialized teams not only involve in the risk areas, but also complement and support all these transactions life cycle: commercial management, legal treatment and an eventual recovery function. In recent years the Group's strategy has been geared towards reducing these assets. The changes in gross property development loans to customers were as follows: Millions of euros 31/12/17 31/12/16 31/12/15 Balance at beginning of year 5,515 7,388 9,349 Foreclosed assets (27) (28) (62) Banco Popular (Perimeter) 2,934 — — Reductions (1) (1,620) (1,415) (1,481) Written-off assets (330) (430) (418) Balance at end of year 6,472 5,515 7,388 (1) Includes portfolio sales, cash recoveries and third-party subrogations. The NPL ratio of this portfolio ended the year at 29.96% (compared with 61.87% at December 2016) due to the increase in the proportion of non-performing assets in the troubled loan portfolio and, in particular, to the sharp reduction in lending in this segment. The table below shows the distribution of the portfolio. The coverage ratio of the real estate doubtful exposure in Spain stands at 38.73%. 12/31/17 Excess over collateral Specific Millions of euros Gross amount value allowance Financing for construction and property development recognized by the Group's credit institutions (including land) (business in Spain) 6,472 1,513 1,131 Of which:Watchlist/ Non-performing 1,939 708 751 Memorandum items: Written-off assets 3,133 Memorandum items: Data from the public consolidated balance sheet 12/31/17 Carrying Millions of euros amount Total loans and advances to customers excluding the public sector (business in Spain) 235,140 Total consolidated assets 1,444,305 Impairment losses and credit risk allowances. Coverage for unimpaired assets (business in Spain) 1,289 At year-end, the concentration of this portfolio was as follows: Loans: Gross amount Millions of euros 12/31/17 1. Without mortgage guarantee 664 2. With mortgage guarantee 5,808 2.1 Completed buildings 3,684 2.1.1 Residential 1,726 2.1.2 Other 1,958 2.2 Buildings and other constructions under construction 995 2.2.1 Residential 562 2.2.2 Other 433 2.3 Land 1,129 2.3.1 Developed consolidated land 900 2.3.2 Other land 229 Total 6,472 Policies and strategies in place for the management of these risks The policies in force for the management of this portfolio, which are reviewed and approved on a regular basis by the Group's senior management, are currently geared towards reducing and securing the outstanding exposure, albeit without neglecting any viable new business that may be identified. In order to manage this credit exposure, the Group has specialized teams that not only form part of the risk areas but also supplement the management of this exposure and cover the entire life cycle of these transactions: commercial management, legal procedures and potential recovery management. As has already been discussed in this section, the Group's anticipatory management of these risks enabled it to significantly reduce its exposure, and it has a granular, geographically diversified portfolio in which the financing of second residences accounts for a very small proportion of the total. Mortgage lending on non-urban land represents a low percentage of mortgage exposure to land, while the remainder relates to land already classified as urban or approved for development. The significant reduction of exposure in the case of residential financing projects in which the construction work has already been completed was based on various actions. As well as the specialized marketing channels already in existenc |
Other Disclosures - Separate Fi
Other Disclosures - Separate Financial Statements and Preference Shares | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company Financial Statements And Preference Shares And Preferred Securities [Abstract] | |
Other Disclosures | 55. Other Disclosures This Note includes relevant information about additional disclosure requirements. 55.1 Parent company financial statements Following are the summarized balance sheets of Banco Santander, S.A. as of December 31, 2017, 2016 and 2015 CONDENSED BALANCE SHEETS (Parent company only) December 31, 2017 December 31, 2016 December 31, 2015 (Millions of Euros) Assets Cash and due from banks 76,690 49,979 63,790 Of which: To bank subsidiaries 20,818 11,442 10,471 Trading account assets 64,326 70,437 79,474 Investment securities 49,194 45,702 54,807 Of which: To bank subsidiaries 6,474 8,326 12,191 To non-bank subsidiaries 3,729 3,662 2,978 Net Loans and leases 197,591 195,532 200,046 Of which: To non-bank subsidiaries 33,113 35,085 36,204 Investment in affiliated companies 85,428 80,614 80,822 Of which: To bank subsidiaries 65,567 63,210 68,681 To non-bank subsidiaries 19,861 17,404 12,141 Premises and equipment, net 1,929 1,834 1,781 Other assets 17,257 17,146 17,554 Total assets 492,415 461,244 498,274 Liabilities Deposits 256,389 265,565 277,058 Of which: To bank subsidiaries 20,391 19,179 18,365 To non-bank subsidiaries 13,115 40,082 43,954 Short-term debt 40,540 19,110 36,353 Long-term debt 53,023 34,499 41,248 Total debt 93,563 53,609 77,601 Of which: To bank subsidiaries 1,138 - 770 To non-bank subsidiaries 2,966 14,062 17,310 Other liabilities 71,896 78,835 81,756 Total liabilities 421,848 398,009 436,415 Stockholders' equity Capital stock 8,068 7,291 7,217 Retained earnings and other reserves 62,499 55,944 54,642 Total stockholders' equity 70,567 63,235 61,859 Total liabilities and Stockholders’ Equity 492,415 461,244 498,274 In the financial statements of the Parent Company, investments in subsidiaries, jointly controlled entities and associates are recorded at cost. Following are the condensed statements of income of Banco Santander, S.A. for the years ended December 31, 2017, 2016 and 2015. CONDENSED STATEMENTS OF INCOME (Parent company only) December 31, 2017 December 31, 2016 December 31, 2015 (Millions of Euros) Interest income Interest from earning assets 5,733 6,023 6,948 Dividends from affiliated companies 3,320 3,459 3,235 Of which: From bank subsidiaries 2,580 2,686 2,786 From non-bank subsidiaries 740 773 449 9,053 9,482 10,183 Interest expense (3,204) (3,113) (3,582) Interest income / (Charges) 5,849 6,369 6,601 Provision for credit losses (451) (528) (1,002) Interest income / (Charges) after provision for credit losses 5,398 5,841 5,599 Non-interest income: 3,872 3,403 3,268 Non-interest expense: (6,293) (7,115) (6,836) Income before income taxes 2,977 2,129 2,031 Income tax expense 29 352 246 Net income 3,006 2,481 2,277 Following are the condensed statement of comprehensive income of Banco Santander, S.A. for the years ended December 31, 2017, 2016 and 2015: CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parent company only) December 31, 2017 December 31, 2016 December 31, 2015 (Millions of Euros) NET INCOME 3,006 2,481 2,277 OTHER COMPREHENSIVE INCOME (356) 364 (356) Items that may be reclassified subsequently to profit or loss (341) 439 (293) Available-for-sale financial assets: (625) 619 (416) Revaluation gains/(losses) (283) 830 34 Amounts transferred to income statement (342) (211) (450) Other reclassifications - - - Cash flow hedges: (7) 4 (1) Revaluation gains/(losses) (7) 4 (1) Amounts transferred to income statement - - - Amounts transferred to initial carrying amount of hedged items - - - Other reclassifications - - - Hedges of net investments in foreign operations: - - (1) Revaluation gains/(losses) - - (1) Amounts transferred to income statement - - - Other reclassifications - - - Exchange differences: - - - Non-current assets held for sale: - - - Income tax 291 (184) 125 Items that will not be reclassified to profit or loss: (15) (75) (63) Actuarial gains/(losses) on pension plans (23) (106) (90) Income tax 8 31 27 TOTAL COMPREHENSIVE INCOME 2,650 2,845 1,921 Following are the condensed cash flow statements of Banco Santander, S.A. for the years ended December 31, 2017, 2016 and 2015. CONDENSED CASH FLOW STATEMENTS (Parent company only) December 31, 2017 December 31, 2016 December 31, 2015 (Millions of Euros) 1. Cash flows from operating activities Consolidated profit 3,006 2,481 2,277 Adjustments to profit 1,824 1,245 3,081 Net increase/decrease in operating assets (10,430) 36,393 (2,367) Net increase/decrease in operating liabilities 21,915 (36,632) (4,585) Reimbursements/payments of income tax (839) 151 (21) Total net cash flows from operating activities (1) 15,476 3,638 (1,615) 2. Cash flows from investing activities Investments (-) (8,818) (4,419) (2,149) Divestments (+) 4,995 7,249 1,696 Total net cash flows from investment activities (2) (3,823) 2,830 (453) 3. Cash flows from financing activities Issuance of own equity instruments 7,072 - 7,500 Disposal of own equity instruments 1,004 957 2,240 Acquisition of own equity instruments (972) (943) (2,224) Issuance of debt securities 2,894 2,346 2,849 Redemption of debt securities (764) (5,333) (935) Dividends paid (2,665) (2,308) (1,498) Issuance/Redemption of equity instruments - - - Other collections/payments related to financing activities 532 - (72) Total net cash flows from financing activities (3) 7,101 (5,281) 7,860 4. Effect of exchange rate changes on cash and cash equivalents (4) (655) 289 (496) 5. Net increase/decrease in cash and cash equivalents (1+2+3+4) 18,099 1,476 5,296 Cash and cash equivalents at beginning of period 15,635 14,159 8,863 Cash and cash equivalents at end of period 33,734 15,635 14,159 55.2 Preference Shares and Preferred Securities The following table shows the balance of the preference shares and preferred securities as of December 31, 2017, 2016 and 2015: 2017 2016 2015 (Millions of Euros) Preference shares 404 413 449 Preferred securities 8,369 6,916 6,749 Total at period-end 8,773 7,329 7,198 Both preference shares and preferred securities are subordinated liabilities recorded under the “Financial liabilities at amortized cost – Marketable debt securities” caption in the consolidated balance sheet as of December 31, 2017, 2016 and 2015. Preference Shares include the financial instruments issued by the consolidated companies which, although equity for legal purposes, do not meet the requirements for classification as equity in the financial statements. These shares do not carry any voting rights and are non-cumulative. They were subscribed to by non-Group third parties except for the shares of Santander UK, plc amounting to GBP 200 million, are redeemable at the discretion of the issuer, based on the conditions of the issuer. At December 31, 2017, the following issues were convertible into Bank shares: On March 5, May 8 and September 2, 2014, Banco Santander, S.A. announced that its executive committee had resolved to launch issues of preference shares contingently convertible into newly issued ordinary shares of the Bank (“CCPSs”) for a nominal amount of €1,500 million, USD 1,500 million and €1,500 million, respectively. The interest on the CCPSs, payment of which is subject to certain conditions and is discretionary, was set at 6.25% per annum for the first five years (to be repriced thereafter by applying a 541 basis-point spread to the 5-year Mid-Swap Rate) for the March issue, at 6.375% per annum for the first five years (to be repriced thereafter by applying a 478.8 basis-point spread to the 5-year Mid-Swap Rate) for the May issue and at 6.25% per annum for the first seven years (to be repriced every five years thereafter by applying a 564 basis-point spread to the 5-year Mid-Swap Rate) for the September issue. On March 25, May 28 and September 30, 2014, the Bank of Spain confirmed that the CCPSs were eligible as Additional Tier 1 capital under the new European capital requirements of Regulation (EU) No 575/2013. The CCPSs are perpetual, although they may be redeemed early in certain circumstances and would convert into newly issued ordinary shares of Banco Santander if the Common Equity Tier 1 ratio of the Bank or its consolidated group fell below 5.125%, calculated in accordance with Regulation (EU) No 575/2013. The CCPSs are traded on the Global Exchange Market of the Irish Stock Exchange. Furthermore, on January 29, 2014, Banco Santander (Brasil), S.A. launched an issue of Tier 1 perpetual subordinated notes for a nominal amount of USD 1,248 million, of which the Group has acquired 89.6%. The notes are perpetual and would convert into ordinary shares of Banco Santander (Brasil), S.A. if the common equity Tier 1 ratio, calculated as established by the Central Bank of Brazil, were to fall below 5.125%. Preference shares include non-cumulative preferred non-voting shares issued by Santander UK plc, Santander Holdings USA, Inc. and Santander Bank, National Association. Preferred securities include non-cumulative preferred non-voting securities issued by Banco Santander, S.A., Santander UK Group, Banco Santander, (Brasil), S.A., and Banco Popular. For the purposes of payment priority, preferred securities are junior to all general creditors and to subordinated deposits. The payment of dividends on these securities, which have no voting rights, is conditional upon the obtainment of sufficient distributable profit and upon the limits imposed by Spanish banking regulations on equity. Preference shares and preferred securities are perpetual securities and there is no obligation that requires the Group to redeem them. All securities have been fully subscribed by third parties outside the Group. In the consolidated balance sheets, these securities are shown net of any temporary operations relating to liquidity guarantees (see Note 23 and Appendix III), and are described in the table below: Outstanding at December 31, 2017 Amount in Preference Shares currency Redemption Issuer/Date of issue Currency (million) Interest rate Option (1) Santander UK plc, October 1995 Pounds Sterling 80.3 10.375% No option Santander UK plc, February 1996 Pounds Sterling 80.3 10.375% No option Santander UK plc, May 2006 Pounds Sterling 13.8 6.222% (2) May 24, 2019 Santander Bank, National Association, August 2000 US Dollar 153.0 12.00% May 16, 2020 Santander Holdings USA, Inc, May 2006 (*) US Dollar 75.5 7.30% May 15, 2011 Outstanding at December 31, 2017 Amount in Preferred Securities currency Issuer/Date of issue Currency (million) Interest rate Maturity date Banco Santander, S.A. Banco Español de Crédito, October 2004 Euro 36.5 €CMS 10 + 0.125% Perpetuity Banco Español de Crédito (1), November 2004 Euro 106.5 5.5% Perpetuity Banco Santander, S.A., March 2014 Euro 1,500.0 6.25% (3) Perpetuity Banco Santander, S.A., May 2014 US Dollar 1,500.0 6.375% (4) Perpetuity Banco Santander, S.A., September 2014 Euro 1,500.0 6.250% (5) Perpetuity Santander Finance Capital, S.A. (Unipersonal), March 2009 US Dollar 18.2 2.0% Perpetuity Santander Finance Capital, S.A. (Unipersonal), March 2009 US Dollar 25.0 2.0% Perpetuity Santander Finance Capital, S.A. (Unipersonal), March 2009 Euro 306.9 2.0% Perpetuity Santander Finance Capital, S.A. (Unipersonal), March 2009 Euro 153.4 2.0% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), March 2004 (*) US Dollar 89.3 6.41% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), September 2004 Euro 144.0 €CMS 10 +0.05% subject to a maximum distribution of 8% per annum Perpetuity Santander Finance Preferred, S.A. (Unipersonal), October 2004 Euro 155.0 5.75% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), November 2006 (*) US Dollar 161.8 6.80% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), January 2007 (*) US Dollar 109.5 6.50% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), March 2007 (*) US Dollar 210.4 US3M + 0.52% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), July 2007 Pounds Sterling 4.9 7.01% Perpetuity Santander International Preferred S.A. (Sociedad Unipersonal), March 2009 US Dollar 979.7 2.0% Perpetuity Santander International Preferred S.A. (Sociedad Unipersonal), March 2009 Euro 8.6 2.0% Perpetuity Santander UK Group Abbey National Plc, February 2001(6) Pounds Sterling 39.5 7.04% Perpetuity Abbey National Plc, August 2002 Pounds Sterling 1.8 Fixed to 6.984% until February 9, 2018, and thereafter, at a rate reset semi-annually of 1.86% per annum + Libor GBP (6M) Perpetuity Abbey National Plc, June 2015 Pounds Sterling 650.0 7.38% Perpetuity Banco Santander (Brasil), S.A. January 2014 US Dollar 129.6 7.38% October 29, 2049 Banco Popular Pastor FRN, June 2004 Euro 11.5 2.07% Perpetuity (1) From this date the issuer can redeem the shares, subject to prior authorization by the national supervisor. (2) That issuance is a Fixed/Floating Rate Non-Cumulative Callable Preference Shares. Dividends will accrue on a principal amount equal to £1,000 per Preference Share at a rate of 6.222% per annum in respect of the period from (and including) May 24, 2006 (the Issue Date) to (but excluding) May 24, 2019 (the First Call Date) and thereafter at a rate reset quarterly equal to 1.13% per annum above the London interbank offered rate for three-month sterling deposits. From (and including) the Issue Date to (but excluding) the First Call Date, dividends, if declared, will be paid annually in arrears on May 24, in each year. Subject as provided herein, the first such dividend payment date will be May 24, 2007 and the last such dividend payment date will be the First Call Date. From (and including) the First Call Date, dividends, if declared, will be paid quarterly in arrears on May 24, August 24, November 24 and February 24, in each year. Subject as provided herein, the first such dividend payment date will be August 24, 2019. (3) Payment is subject to certain conditions and to the discretion of the Bank. The 6.25% interest rate is set for the first five years. After that, it will be reviewed by applying a margin of 541 basis points on the five-year Mid-Swap Rate. (4) Payment is subject to certain conditions and to the discretion of the Bank. The 6.375% interest rate is set for the first five years. After that, it will be reviewed by applying a margin of 478.8 basis points on the five-year Mid-Swap Rate. (5) Payment is subject to certain conditions and to the discretion of the Bank. The 6.25% interest rate is set for the first five years. After that, it will be reviewed by applying a margin of 564 basis points on the five-year Mid-Swap Rate. (6) From February 14, 2026, this issue will bear interest at a rate, reset every five years, of 3.75% per annum above the gross redemption yield on a five-year specified United Kingdom government security. (*) Listed in the U.S. Santander Finance Preferred, S.A. (Unipersonal), Santander Finance Capital, S.A. (Unipersonal), Santander International Preferred, S.A. (Unipersonal), Santander Issuances, S.A., and Santander US Debt, S.A. (Sociedad Unipersonal) - issuers of registered securities guaranteed by Banco Santander, S.A. until November 2017, merged in that date with Banco Santander, S.A. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting policies | |
Foreign currency transactions | a) Foreign currency transactions i. The Bank’s functional and presentation currency is the euro. Also, the presentation currency of the Group is the euro. ii. Foreign currency balances are translated to euros in two consecutive stages: - Translation of foreign currency to the functional currency (currency of the main economic environment in which the entity operates); and - Translation to euros of the balances held in the functional currencies of entities whose functional currency is not the euro. Translation of foreign currency to the functional currency Foreign currency transactions performed by consolidated entities (or entities accounted for using the equity method) not located in European Monetary Union (“EMU”) countries are initially recognized in their respective currencies. Monetary items in foreign currency are subsequently translated to their functional currencies using the closing rate. Furthermore: - Non-monetary items measured at historical cost are translated to the functional currency at the exchange rate at the date of acquisition. - Non-monetary items measured at fair value are translated at the exchange rate at the date when the fair value was determined. - Income and expenses are translated at the average exchange rates for the year for all the transactions performed during the year. When applying this criterion, the Group considers whether there have been significant changes in the exchange rates in the year which, in view of their materiality with respect to the consolidated financial statements taken as a whole, would make it necessary to use the exchange rates at the transaction date rather than the aforementioned average exchange rates. - The balances arising from non-hedging forward foreign currency/foreign currency and foreign currency/euro purchase and sale transactions are translated at the closing rates prevailing in the forward foreign currency market for the related maturity. Translation of functional currencies to euros The balances in the financial statements of consolidated entities (or entities accounted for using the equity method) whose functional currency is not the euro are translated to euros as follows: - Assets and liabilities, at the closing rates. - Income and expenses, at the average exchange rates for the year. - Equity items, at the historical exchange rates. iii. The exchange differences arising on the translation of foreign currency balances to the functional currency are generally recognized at their net amount under Exchange differences in the consolidated income statement, except for exchange differences arising on financial instruments at fair value through profit or loss, which are recognized 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 equity, which are recognized under Other comprehensive income--Items that may be reclassified to profit or loss--Exchange differences. The exchange differences arising on the translation to euros of the financial statements denominated in functional currencies other than the euro are recognized in Other comprehensive income--Items that may be reclassified to profit or loss--Exchange differences in the consolidated balance sheet, whereas those arising on the translation to euros of the financial statements of entities accounted for using the equity method are recognized in equity under Other comprehensive income--Items that may be reclassified to profit or loss and Items not reclassified to profit or loss--Other recognized income and expense of investments in subsidiaries, joint ventures and associates, until the related item is derecognized, at which time they are recognized in profit or loss. Exchange differences arising on actuarial gains or losses when converting to euros the financial statements denominated in the functional currencies of entities whose functional currency is different from the euro are recognized under equity--Other comprehensive income--Items not reclassified to profit or loss--Actuarial gains or (-) losses on defined benefit pension plans. iv. At December 31, 2017, 2016 and 2015 none of the functional currencies of the consolidated entities and associates located abroad related to hyperinflationary economies as defined by International Financial Reporting Standards as adopted by the European Union. Accordingly, at the end of the last three reporting periods it was not necessary to adjust the financial statements of any of the consolidated entities or associates to correct for the effect of inflation. v. The Group hedges a portion of its long-term foreign currency positions using foreign exchange derivative financial instruments (see Note 36). Also, the Group manages foreign currency risk dynamically by hedging its short-term position (with a potential impact on profit or loss) in order to limit the impact of currency depreciations while optimizing the cost of financing the hedges. The following tables show the sensitivity of consolidated profit and consolidated equity to the changes in the foreign currency positions resulting from all the Group’s foreign currency items caused by 1% variations in the various foreign currencies in which the Group has material balances. The estimated effect on the consolidated equity attributable to the Group and on consolidated profit of a 1% appreciation of the euro against the corresponding currency is as follows: Millions of euros Effect on consolidated equity Effect on consolidated profit Currency 2017 2016 2015 2017 2016 2015 U.S. dollar (157.9) (187.1) (167.2) (1.4) (4.5) (8.7) Chilean peso (29.0) (27.9) (23.7) (1.8) (4.2) (5.0) Pound sterling (176.6) (184.9) (194.2) (3.1) (10.0) (13.0) Mexican peso (16.0) (16.2) (19.7) (1.2) (5.4) (5.9) Brazilian real (93.1) (122.3) (93.1) (6.5) (6.3) (13.6) Polish zloty (34.5) (31.5) (32.8) (1.5) (3.3) (3.9) Similarly, the estimated effect on the Group’s consolidated equity and on consolidated profit of a 1% depreciation of the euro against the corresponding currency is as follows: Millions of euros Effect on consolidated equity Effect on consolidated profit Currency 2017 2016 2015 2017 2016 2015 U.S. dollar 161.1 190.8 170.5 1.5 4.5 8.8 Chilean peso 29.6 28.4 24.1 1.8 4.3 5.1 Pound sterling 180.2 188.7 198.2 3.2 10.2 13.2 Mexican peso 16.3 16.5 20.1 1.2 5.5 6.0 Brazilian real 95.0 124.7 94.9 6.6 6.5 13.8 Polish zloty 35.2 32.1 33.4 1.5 3.3 4.0 The foregoing data were obtained as follows: a. Effect on consolidated equity: in accordance with the accounting policy detailed in Note 2.a.iii, the exchange differences arising on the translation to euros of the financial statements in the functional currencies of the Group entities whose functional currency is not the euro are recognized in consolidated equity. The possible effect that a change in the exchange rates of the related currency would have on the Group’s consolidated equity was therefore determined by applying the aforementioned change to the net value of each unit’s assets and liabilities -including, where appropriate, the related goodwill- and by taking into consideration the offsetting effect of the hedges of net investments in foreign operations. b. Effect on consolidated profit: the effect was determined by applying the fluctuations in the average exchange rates used for the year, as indicated in Note 2.a.ii, to translate to euros the income and expenses of the consolidated entities whose functional currency is not the euro, taking into consideration, where appropriate, the offsetting effect of the various hedging transactions in place. The estimates used to obtain the foregoing data were performed considering the effects of the exchange rate fluctuations in isolation from the effect of the performance of other variables whose changes would affect equity and profit or loss, such as variations in the interest rates of the reference currencies or other market factors. Accordingly, all variables other than the exchange rate fluctuations were kept constant with respect to their positions at December 31, 2017, 2016 and 2015. |
Basis of consolidation | b) i. Subsidiaries are defined as entities over which the Bank has the capacity to exercise control. The Bank controls an entity when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of the subsidiaries are fully consolidated with those of the Bank. Accordingly, all balances and effects of the transactions between consolidated companies are eliminated on consolidation. On acquisition of control of a subsidiary, its assets, liabilities and contingent liabilities are recognized at their acquisition-date fair values. Any positive differences between the acquisition cost and the fair values of the identifiable net assets acquired are recognized as goodwill (See Note 17). Negative differences are recognized in profit or loss on the date of acquisition. Additionally, the share of third parties of the Group’s equity is presented under Non-controlling interests in the consolidated balance sheet (See Note 28). Their share of the profit for the year is presented under Profit attributable to non-controlling interests in the consolidated income statement. 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. At December 31, 2017 the Group controlled the following companies in which it held an ownership interest of less than 50% of the share capital, (i) Luri 1, S.A. and (ii) Luri 2, S.A, also the structured consolidated entities. The percentage ownership interests in the aforementioned companies were 31% and 30%, respectively (See Appendix I). Although the Group holds less than half the voting power, it manages and, as a result, exercises control over these entities. The company object of the first two entities is the acquisition of real estate and other general operations relating thereto, including rental, and the purchase and sale of properties. The impact of the consolidation of these companies on the Group’s consolidated financial statements is immaterial. The Appendices contain significant information on the subsidiaries. ii. Joint ventures are deemed to be entities that are not subsidiaries but which are jointly controlled by two or more unrelated entities. This is evidenced by contractual arrangements whereby two or more parties have interests in entities so that decisions about the relevant activities require the unanimous consent of all the parties sharing control. In the consolidated financial statements, investments in joint ventures are accounted for using the equity method, i.e. at the Group’s share of net assets of the investee, after taking into account the dividends received therefrom and other equity eliminations. The profits and losses resulting from transactions with a joint venture are eliminated to the extent of the Group’s interest therein. The Appendices contain significant information on the joint ventures. iii. Associates are entities over which the Bank is in a position to exercise significant influence, but not control or joint control. It is presumed that the Bank exercises significant influence if it holds 20% or more of the voting power of the investee. In the consolidated financial statements, investments in associates are accounted for using the equity method, i.e. at the Group’s share of net assets of the investee, after taking into account the dividends received therefrom and other equity eliminations. The profits and losses resulting from transactions with an associate are eliminated to the extent of the Group’s interest in the associate. There are certain investments in entities which, although the Group owns 20% or more of their voting power, are not considered to be associates because the Group is not in a position to exercise significant influence over them. These investments are not significant for the Group and are recognized under Financial assets available-for-sale. The Appendices contain significant information on the associates. iv. When the Group 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 Group 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. Specifically, for those entities to which this policy applies (mainly investment funds and pension funds), the Group analyses the following factors: - Percentage of ownership held by the Group; 20% is established as the general threshold. - Identification of the fund manager, and verification as to whether it is a company controlled by the Group since this could affect the Group’s ability to direct the relevant activities. - Existence of agreements between investors that might require decisions to be taken jointly by the investors, rather than by the fund manager. - Existence of currently exercisable removal rights (possibility of removing the manager from his position), since the existence of such rights might limit the manager’s power over the fund, and it may be concluded that the manager is acting as an agent of the investors. - Analysis of the fund manager’s remuneration regime, taking into consideration that a remuneration regime that is proportionate to the service rendered does not, generally, create exposure of such importance as to indicate that the manager is acting as the principal. Conversely, if the remuneration regime is not proportionate to the service rendered, this might give rise to an exposure that would lead the Group to a different conclusion. These structured entities also include the securitization special purpose vehicles (“SPV”), which are consolidated in the case of the SPVs over which, being exposed to variable yield, it is considered that the Group continues to exercise control. The exposure associated with unconsolidated structured entities are not material with respect to the Group’s consolidated financial statements. v. A business combination is the bringing together of two or more separate entities or economic units into one single entity or group of entities. Business combinations whereby the Group obtains control over an entity are recognized for accounting purposes as follows: - The Group measures the cost of the business combination, which is normally the consideration transferred, defined as the acquisition-date fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity instruments issued, if any, by the acquirer. In cases where the amount of the consideration to be transferred has not been definitively established at the acquisition date, but rather depends on future events, any contingent consideration is recognized as part of the consideration transferred and measured at its acquisition-date fair value. Moreover, acquisition-related costs do not for these purposes form part of the cost of the business combination. - The fair values of the assets, liabilities and contingent liabilities of the acquired entity or business, including any intangible assets which might not have been recognized by the acquiree, are estimated and recognized in the consolidated balance sheet; the Group also estimates the amount of any non-controlling interests and the fair value of the previously held equity interest in the acquiree. - Any positive difference between the aforementioned items is recognized as discussed in Note 2.m. Any negative difference is recognized under negative goodwill recognized in the consolidated income statement. Goodwill is only measured and recognized once, when control of a business is obtained. vi. Acquisitions and disposals not giving rise to a change in control are recognized as equity transactions, and no gain or loss is recognized in the income statement and the initially recognized goodwill is not remeasured. The difference between the consideration transferred or received and the decrease or increase in non-controlling interests, respectively, is recognized in reserves. Similarly, when control over a subsidiary is lost, the assets, liabilities and non-controlling interests and any other items recognized in Other Comprehensive income of that company are derecognized from the consolidated balance sheet, and the fair value of the consideration received and of any remaining equity interest is recognized. The difference between these amounts is recognized in profit or loss. vii. Note 3 provides information on the most significant acquisitions and disposals in the last three years. |
Definitions and classification of financial instruments | c) i. 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. 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 whose value changes in response to the change in an observable market variable (such as an interest rate, foreign exchange rate, financial instrument price, market index or credit rating), whose initial investment is very small compared with other financial instruments with a similar response to changes in market factors, and which is generally settled at a future date. Hybrid financial instruments are contracts that simultaneously include a non-derivative host contract together with a 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 derivative. Compound financial instruments are contracts that simultaneously create for their issuer a financial liability and an own equity instrument (such as convertible bonds, which entitle their holders to convert them into equity instruments of the issuer). The preference shares contingently convertible into ordinary shares eligible as Additional Tier 1 capital (“CCPSs”) -perpetual preference shares, which may be repurchased by the issuer in certain circumstances, the interest on which is discretionary, and would convert into a variable number of newly issued ordinary shares if the capital ratio of the Bank or its consolidated group falls below a given percentage (trigger event), as those two terms are defined in the related issue prospectuses- are recognized for accounting purposes by the Group as compound instruments. The liability component reflects the issuer’s obligation to deliver a variable number of shares and the equity component reflects the issuer’s discretion in relation to the payment of the related coupons. In order to effect the initial allocation, the Group estimates the fair value of the liability as the amount that would have to be delivered if the trigger event were to occur immediately and, accordingly, the equity component, calculated as the residual amount, is zero. In view of the aforementioned discretionary nature of the payment of the coupons, they are deducted directly from equity. Capital perpetual preference shares (“CCPSs”), with the possibility of purchase by the issuer in certain circumstances, whose remuneration is discretionary, and which will be amortized permanently, totally or partially, in the event that the Bank or its consolidated group submits a capital ratio lesser than a certain percentage (trigger event), as defined in the corresponding prospectuses, are accounted for by the Group as equity instruments. The following transactions are not treated for accounting purposes as financial instruments: - Investments in associates and joint ventures (see Note 13). - Rights and obligations under employee benefit plans (see Note 25). - Rights and obligations under insurance contracts (see Note 15). - Contracts and obligations relating to employee remuneration based on own equity instruments (see Note 34). ii. 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, cash balances at Central Banks and other deposits on demand, Changes in the fair value of hedged items in portfolio hedges of interest rate risk (asset side), Hedging derivatives and Investments, which are reported separately. Financial assets are included for measurement purposes in one of the following categories: - Financial assets held for trading (at fair value through profit or loss): This category includes financial assets acquired for the purpose of generating a profit in the near term from fluctuations in their prices and financial derivatives that are not designated as hedging instruments. - Financial assets designated at fair value through profit or loss: This category includes hybrid financial assets not held for trading that are measured entirely at fair value and financial assets not held for trading that are included in this category in order to provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases, or because a group of financial assets 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 Group’s key management personnel. Financial assets may only be included in this category on the date they are acquired or originated. - Financial assets available-for-sale: This category includes debt instruments not classified as Held-to-maturity investments, Loans and receivables or Financial assets at fair value through profit or loss, and equity instruments issued by entities other than subsidiaries, associates and joint ventures, provided that such instruments have not been classified as Financial assets held for trading or as Financial assets designated at fair value through profit or loss. - Loans and receivables: This category includes the investment arising from ordinary lending activities, such as the cash amounts of loans drawn down and not yet repaid by customers or the deposits placed with other institutions, whatever the legal instrument, unquoted debt securities and receivables from the purchasers of goods, or the users of services, constituting part of the Group’s business. The consolidated entities generally intend to hold the loans and credits granted by them until their final maturity and, therefore, they are presented in the consolidated balance sheet at their amortized cost (which includes any reductions required to reflect the estimated losses on their recovery). - Investments held-to-maturity: This category includes debt instruments with fixed maturity and with fixed or determinable payments, for which the Group has both the intention and proven ability to hold to maturity. iii. Financial assets are classified by nature into the following items in the consolidated balance sheet: - Cash, cash balances at Central Banks and other deposits on demand: Cash balances and balances receivable on demand relating to deposits with central banks and credit institutions. - Loans and advances: Includes the debit balances of all credit and loans granted by the Group, other than those represented by securities, as well as finance lease receivables and other debit balances of a financial nature in favor of the Group, such as cheques drawn on credit institutions, balances receivable from clearing houses and settlement agencies for transactions on the stock exchange and organized markets, bonds given in cash, capital calls, fees and commissions receivable for financial guarantees and debit balances arising from transactions not originating in banking transactions and services, such as the collection of rentals and similar items. They are classified, on the basis of the institutional sector to which the debtor belongs, into: - Central Banks: Credit of any nature, including deposits and money market operations received from the Bank of Spain or other central banks. - Credit institutions: Credit of any nature, including deposits and money market operations, in the name of credit institutions. - Customers: Includes the remaining credit, including money market operations through central counterparties. - Debt instruments: Bonds and other securities that represent a debt for their issuer, that generate an interest return, and that are in the form of certificates or book entries. - 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, joint ventures or associates. Investment fund units are included in this item. - Derivatives: Includes the fair value in favor of the Group of derivatives which do not form part of hedge accounting, including embedded derivatives separated from hybrid financial instruments. - Changes in the fair value of hedged items in portfolio hedges of interest rate risk: This item is the balancing entry for the amounts credited to the consolidated income statement in respect of the measurement of the portfolios of financial instruments which are effectively hedged against interest rate risk through fair value hedging derivatives. - Hedging derivatives: Includes the fair value in favor of the Group of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. iv. Financial liabilities are initially classified into the various categories used for management and measurement purposes, unless they have to be presented as Liabilities associated with non-current assets held for sale or they relate to Hedging derivatives or Changes in the fair value of hedged items in portfolio hedges of interest rate risk (liability side), which are reported separately. Financial liabilities are included for measurement purposes in one of the following categories: - Financial liabilities held for trading (at fair value through profit or loss): This category includes 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 ("reverse repos") or borrowed (short positions). - Financial liabilities designated at fair value through profit or loss: Financial liabilities are included in this category when they provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or 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 Group’s key management personnel. Liabilities may only be included in this category on the date when they are incurred or originated. - 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 carried on by financial institutions. v. Financial liabilities are classified by nature into the following items in the consolidated balance sheet: - Deposits: Includes all repayable balances received in cash by the Group, other than those instrumented as marketable securities and those having the substance of subordinated liabilities (amount of the loans received, which for credit priority purposes are after common creditors), except for the debt instruments. This item also includes cash bonds and cash consignments received the amount of which may be invested without restriction. Deposits are classified on the basis of the creditor’s institutional sector into: - Central banks: Deposits of any nature, including credit received and money market operations received from the Bank of Spain or other central banks. - Credit institutions: Deposits of any nature, including credit received and money market operations in the name of credit institutions. - Customer: Includes the remaining deposits, including money market operations through central counterparties. - Marketable debt securities: Includes the amount of bonds and other debt represented by marketable securities, other than those having the substance of subordinated liabilities (amount of the loans received, which for credit priority purposes are after common creditors, and includes the amount of the financial instruments issued by the Group which, having the legal nature of capital, do not meet the requirements to qualify as equity, such as certain preferred shares issued). This item includes the component that has the consideration of financial liability of the securities issued that are compound financial instruments. - Derivatives: Includes the fair value, with a negative balance for the Group, of derivatives, including embedded derivatives separated from the host contract, which do not form part of hedge accounting. - Short positions: includes the amount of financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements or borrowed. - Other financial liabilities: Includes the amount of payment obligations having the nature of financial liabilities not included in other items, and liabilities under financial guarantee contracts, unless they have been classified as non-performing. - Changes in the fair value of hedged items in portfolio hedges of interest rate risk: This item is the balancing entry for the amounts charged to the consolidated income statement in respect of the measurement of the portfolios of financial instruments which are effectively hedged against interest rate risk through fair value hedging derivatives. - Hedging derivatives: Includes the fair value of the Group’s liability in respect of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. |
Measurement of financial assets and liabilities and recognition of fair value changes | d) 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. Financial instruments not measured at fair value through profit or loss are adjusted by the transaction costs. Financial assets and liabilities are subsequently measured at each year-end as follows: i. Financial assets are measured at fair value, without deducting any transaction costs that may be incurred on their disposal, except for loans and receivables, investments held-to-maturity, unquoted equity instruments which cannot be reliably measured and financial derivatives that have those equity instruments as their underlying and are settled by delivery of those instruments. 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, transparent and deep market (quoted price or market price). At December 31, 2017 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. 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 derivatives are recognized in the 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. The fair value on the trade date is deemed, in the absence of evidence to the contrary, to be the transaction price. The changes in the fair value of derivatives from the trade date are recognized in Gains/losses on financial assets and liabilities held for trading (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 and 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 OTC derivatives. The fair value of OTC derivatives is taken to be the sum of the future cash flows arising from the instrument, discounted to present value at the date of measurement (present value or theoretical close) using valuation techniques commonly used by the financial markets: net present value (NPV), option pricing models and other methods. Loans and receivables and Investments held-to-maturity are measured at amortized cost using the effective interest method. Amortized cost is understood to be the acquisition cost of a financial asset or liability plus or minus, as appropriate, the principal repayments and the cumulative amortization (taken to the consolidated income statement) of the difference between the initial cost and the maturity amount. In the case of financial assets, amortized cost also includes any reduction for impairment or uncollectibility. In the case of loans and receivables hedged in fair value hedges, the changes in the fair value of these assets related to the risk or risks being hedged are recognized. The effective interest rate is the discount rate that exactly matches the carrying amount of a financial instrument to all its estimated cash flows of all kinds over its remaining life. For fixed rate financial instruments, the effective interest rate coincides with the contractual interest rate established on the acquisition date plus, where applicable, the fees and transaction costs that, because of their nature, form part of their financial return. In the case of floating rate financial instruments, the effective interest rate coincides with the rate of return prevailing in all connections until the next benchmark interest reset date. Unquoted equity instruments which cannot be reliably measured in a sufficiently objective manner and financial derivatives that have those instruments as their underlying and are settled by delivery of those instruments are measured at acquisition cost adjusted, where appropriate, by any related impairment loss. The amounts at which the financial assets are recognized represent, in all material respects, the Group’s maximum exposure to credit risk at each reporting date. Also, the Group has received collateral and other credit enhancements to mitigate its exposure to credit risk, which consist mainly of mortgage guarantees, cash collateral, equity instruments and personal security, assets leased out under finance lease and full-service lease agreements, assets acquired under repurchase agreements, securities loans and credit derivatives. ii. In general, financial liabilities are measured at amortized cost, as defined above, except for those included under Financial liabilities held for trading and Financial liabilities designated 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. iii. The following table shows a summary of the fair values, at the end of 2017, 2016 and 2015, of the financial assets and liabilities indicated below, classified on the basis of the various measurement methods used by the Group to determine their fair value: Millions of euros 2017 2016 2015 Published Published Published price price price quotations Internal quotations Internal quotations Internal in active Models in active Models in active Models Markets (Level 2 Markets (Level 2 Markets (Level 2 (Level 1) and 3) Total (Level 1) and 3) Total (Level 1) and 3) Total Financial assets held for trading 58,215 67,243 125,458 64,259 83,928 148,187 65,849 80,497 146,346 Financial assets designated at fair value through profit or loss 3,823 30,959 34,782 3,220 28,389 31,609 3,244 41,799 45,043 Financial assets available-for-sale (1) 113,258 18,802 132,060 89,563 25,862 115,425 92,284 27,962 120,246 Hedging derivatives (assets) — 8,537 8,537 216 10,161 10,377 271 7,456 7,727 Financial liabilities held for trading 21,828 85,796 107,624 20,906 87,859 108,765 17,058 88,160 105,218 Financial liabilities designated at fair value through profit or loss 769 58,847 59,616 — 40,263 40,263 — 54,768 54,768 Hedging derivatives (liabilities) 8 8,036 8,044 9 8,147 8,156 400 8,537 8,937 Liabilities under insurance contracts — 1,117 1,117 — 652 652 — 627 627 (1) In addition to the financial instruments measured at fair value shown in the foregoing table, at December 31, 2017, 2016 and 2015, the Group held equity instruments classified as Financial assets available-for-sale and carried at cost amounting to €1,211 million, €1,349 million and €1,790 million, respectively (see Note 51.c). The financial instruments at fair value determined on the basis of published price quotations in active markets (Level 1) include government debt securities, private-sector debt securities, derivatives traded in organized markets, securitized assets, shares, short positions and fixed-income securities issued. In cases where price quotations cannot be observed, management makes its best estimate of the price that the market would set, using its own internal models. In most cases, 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). In order to make these estimates, various techniques are employed, including the extrapolation of observable market data. 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 Group has developed a formal process for the systematic valuation and management of financial instruments, which has been implemented worldwide across all the Group’s units. The governance scheme for this process distributes responsibilities between two independent divisions: Treasury (development, marketing and daily management of financial products and market data) and Risk (on a periodic basis, validation of pricing models and market data, computation of risk metrics, new transaction 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 corporate systems and quality assurance) before the product is brought into production. This process ensures that pricing systems have been properly reviewed and are stable before they are used. The following subsections set forth the most important products and families of derivatives, and the related valuation techniques and inputs, by asset class: Fixed income and inflation The fixed income asset class includes basic instruments such as interest rate forwards, interest rate swaps and cross currency swaps, which are valued using the net present value of the estimated future cash flows discounted taking into account basis swap and cross currency spreads determined on the basis of the payment frequency and currency of each leg of the derivative. Vanilla options , including caps, floors and swaptions, are priced using the Black - Scholes model, which is one of the benchmark industry models. More exotic derivatives are priced using more complex models which are generally accepted as standard across institutions. These pricing models are fed with observable market data such as deposit interest rates, futures rates, cross currency swap and constant maturity swap rates, and basis spreads, on the basis of which different yield curves, depending on the payment frequency, and discounting curves are calculated for each currency. In the case of options, implied volatilities are also used as model inputs. These volatilities are observable in the market for cap and floor options and swaptions, and interpolation and extrapolation of volatilities from the quoted ranges are carried out using generally accepted industry models. The pricing of more exotic derivatives may require the use of non-observable data or parameters, such as correlation (among interest rates and cross-asset), mean reversion rates and prepayment rates, which are usually defined from historical data or through calibration. Inflation-related assets include zero-coupon or year-on-year inflation-linked bonds and swaps, valued with the present value method using forward estimation and discounting. Derivatives on inflation indices are priced using standard or more complex bespoke models, as appropriate. Valuation inputs of these models consider inflation-linked swap spreads observable in the market and estimations of inflation seasonality, on the basis of which a forward inflation curve is calculated. Also, implied volatilities taken from zero-coupon and year-on-year inflation options are also inputs for the pricing of more complex derivatives. Equity and foreign exchange The most important products in these asset classes are forward and futures contracts; they also include vanilla, listed and OTC (Over-The-Counter) derivatives on single underlying assets and baskets of assets. Vanilla options are priced using the standard Black-Scholes model and more exotic derivatives involving forward returns, average performance, or digital, barrier or callable features are priced using generally accepted industry models or bespoke models, as appropriate. For derivatives on illiquid stocks, hedging takes into account the liquidity constraints in models. The inputs of equity models consider yield curves, spot prices, dividends, asset funding costs (repo margin spreads), implied volatilities, correlation among equity stocks and indices, and cross-asset correlation. Implied volatilities are obtained from market quotes of European and American-style vanilla call and put options. Various interpolation and extrapolation techniques are used to obtain continuous volatility for illiquid stocks. Dividends are usually estimated for the mid and long term. Correlations are implied, when possible, from market quotes of correlation-dependent products. In all other cases, proxies are used for correlations between benchmark underlyings or correlations are obtained from historical data. The inputs of foreign exchange models include the yield curve for each currency, the spot foreign exchange rate, the implied volatilities and the correlation among assets of this class. Volatilities are obtained from European call and put options which are quoted in markets as at-the-money, risk reversal or butterfly options. Illiquid currency pairs are usually handled by using the data of the liquid pairs from which the illiquid currency can be derived. For more exotic products, unobservable model parameters may be estimated by fitting to reference prices provided by other non-quoted market sources. Credit The most common instrument in this asset class is the credit default swap (CDS), which is used to hedge credit exposure to third parties. In addition, models for first-to-default (FTD), n-to-default (NTD) and single-tranche collateralized debt obligation (CDO) products are also available. These products are valued with standard industry models, which estimate the probability of default of a single issuer (for CDS) or the joint probability of default of more than one issuer for FTD, NTD and CDO. Valuation inputs are the yield curve, the CDS spread curve and the recovery rate. For indices and important individual issuers, the CDS spread curve is obtained in the market. For less liquid issuers, this spread curve is estimated using proxies or other credit-dependent instruments. Recovery rates are usually set to standard values. For listed single-tranche CDO, the correlation of joint default of several issuers is implied from the market. For FTD, NTD and bespoke CDO, the correlation is estimated from proxies or historical data when no other option is available. Valuation adjustment for counterparty risk or default risk The Credit valuation adjustment (CVA) is a valuation adjustment to OTC derivatives as a result of the risk associated with the credit exposure assumed to each counterparty. The CVA is calculated taking into account potential exposure to 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: Including for each transaction the mark-to-market (MtM) value 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 derivatives with interim payments. - LGD: percentage of final loss assumed in a counterparty credit event/default. - Probability of default: for cases where there is no market information (the CDS quoted spread curve, etc.), proxies based on companies holding exchange-listed CDS, in the same industry and with the same external rating as the counterparty, are used. - Discount factor curve. The debit valuation adjustment (DVA) is a valuation adjustment similar to the CVA but, in this case, it arises as a result of the Group’s own risk assumed by its counterparties in OTC derivatives. The CVA at December 31, 2017 amounted to €322.5 million (-49.9% compared to 2016) and DVA amounted to €219.6 million (-43.7% compared to 2016). The decrease is due to the fact that credit spreads for the most liquid maturities have been reduced in percentages over 40% and to reductions in the exposure of the main counterparties. In addition, the Group amounts the funding fair value adjustment (FFVA) is calculated by applying future market funding spreads to the expected future funding exposure of any uncollateralized component of the OTC derivative portfolio. This includes the uncollateralized component of collateralized derivatives in addition to derivatives that are fully uncollateralized. The expected future funding exposure is calculated by a simulation methodology, where available. The FFVA impact is not material for the consolidated financial statements as of December 31, 2017 and 2016. During 2017, the Group has not carried out significant reclassifications of financial instruments between levels except the changes disclosed in the level 3 table. Valuation adjustments due to model risk The valuation models described above do not involve a significant level of subjectivity, since they can be adjusted and recalibrated, where appropriate, through internal calculation of the fair value and subsequent comparison with the related actively traded price. However, valuation adjustments may be necessary when market quoted prices are not available for comparison purposes. The sources of risk are associated with uncertain model parameters, illiquid underlying issuers, and poor quality market data or missing risk factors (sometimes the best available option is to use limited models with controllable risk). In these situations, the Group calculates and applies valuation adjustments in accordance with common industry practice. The main sources of model risk are described below: In the fixed income markets, the sources of model risk include bond index correlations, basis spread modelling, the risk of calibrating model parameters and the treatment of near-zero or negative interest rates. Other sources of risk arise from the estimation of market data, such as volatilities or yield curves, whether used for estimation or cash flow discounting purposes. In the equity markets, the sources of model risk include forward skew modelling, the impact of stochastic interest rates, correlation and multi-curve modelling. Other sources of risk arise from managing hedges of digital callable and barrier option payments. Also worthy of consideration as sources of risk are the estimation of market data such as dividends and correlation for quanto and composite basket options. For specific financial instruments relating to home mortgage loans secured by financial institutions in the UK (which are regulated and partially financed by the Government) and property asset derivatives, the main input is the Halifax House Price Index (HPI). In these cases, risk assumptions include estimations of the future growth and the volatility of the HPI, the mortality rate and the implied credit spreads. Inflation markets are exposed to model risk resulting from uncertainty around modelling the correlation structure among various CPI rates. Another source of risk may arise from the bid-offer spread of inflation-linked swaps. The currency markets are exposed to model risk resulting from forward skew modelling and the impact of stochastic interest rate and correlation modelling for multi-asset instruments. Risk may also arise from market data, due to the existence of specific illiquid foreign exchange pairs. The most important source of model risk for credit derivatives relates to the estimation of the correlation between the probabilities of default of different underlying issuers. For illiquid underlying issuers, the CDS spread may not be well defined. Set forth below are the financial instruments at fair value whose measurement was based on internal models (Levels 2 and 3) at December 31, 2017, 2016 and 2015: Millions of euros Fair values calculated using internal models at 12/31/17 Level 2 Level 3 Valuation techniques Main assumptions ASSETS: 124,178 1,363 Financial assets held for trading 66,806 437 Credit institutions 1,696 — Present Value Method Yield curves, FX market prices Customers (a) 8,815 — Present Value Method Yield curves, FX market prices Debt and equity instruments 335 32 Present Value Method Yield curves, HPI, FX market prices Derivatives 55,960 405 Swaps 44,766 189 Present Value Method, Gaussian Copula (b) Yield curves, FX market prices, HPI, Basis, Liquidity Exchange rate options 463 5 Black-Scholes Model Yield curves, Volatility surfaces, FX market prices, Liquidity Interest rate options 4,747 162 Black's Model, multifactorial advanced models interest rate Yield curves, Volatility surfaces, FX market prices, Liquidity Interest rate futures 2 — Present Value Method Yield curves, FX market prices Index and securities options 1,257 5 Black-Scholes Model Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI Other 4,725 44 Present Value Method, Advanced stochastic volatility models and other Yield curves, Volatility surfaces, FX and EQ market prices, Dividends, Correlation, Liquidity, Others Hedging derivatives 8,519 18 Swaps 7,896 18 Present Value Method FX market prices, Yield curves, Basis Exchange rate options — — Black-Scholes Model Yield curves, Volatility surfaces, FX market prices, Liquidity Interest rate options 13 — Black’s Model FX market prices, Yield curves, Volatility surfaces Other 610 — Present Value Method, Advanced stochastic volatility models and other Yield curves, Volatility surfaces, FX market prices, Credit, Liquidity, Others Financial assets designated at fair value through profit or loss 30,677 282 Credit institutions 9,889 — Present Value Method Yield curves, FX market prices Customers (c) 20,403 72 Present Value Method Yield curves, FX market prices, HPI Debt and equity instruments 385 210 Present Value Method Yield curves, FX market prices Financial assets available-for-sale 18,176 626 Debt and equity instruments 18,176 626 Present Value Method Yield curves, Volatility surfaces, FX & EQ Dividends, Credit, Others LIABILITIES: 153,600 196 Financial liabilities held for trading 85,614 182 Central banks 282 — Present Value Method Yield curves, FX market prices Credit institutions 292 — Present Value Method Yield curves, FX market prices Customers 28,179 — Present Value Method Yield curves, FX market prices Debt securities issues — — Derivatives 56,860 182 Swaps 45,041 100 Present Value Method, Gaussian Copula (b) Yield curves, FX market prices, Basis, Liquidity, HPI Exchange rate options 497 9 Black-Scholes Model Yield curves, Volatility surfaces, FX market prices, Liquidity Interest rate options 5,402 19 Black's Model, multifactorial advanced models interest rate Yield curves, Volatility surfaces, FX market prices, Liquidity Index and securities options 1,527 41 Black-Scholes Model Yield curves, FX market prices Interest rate and equity futures 1 — Black's Model Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI Other 4,392 13 Present Value Method, Advanced stochastic volatility models and other Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI Short positions 1 — Present Value Method Yield curves ,FX & EQ market prices, Equity Hedging derivatives 8,029 7 Swaps 7,573 7 Present Value Method Yield curves ,FX & EQ market prices, Basis Exchange rate options — — Interest rate options 287 — Black’s Model Yield curves , Volatility surfaces, FX market prices, Liquidity Other 169 — Present Value Method, Advanced stochastic volatility models and other Yield curves , Volatility surfaces, FX market prices, Liquidity, Other Financial liabilities designated at fair value through profit or loss 58,840 7 Present Value Method Yield curves, FX market prices Liabilities under insurance contracts 1,117 — See Note 15 Millions of euros Fair values calculated using internal models at 12/31/16 12/31/15 Level 2 Level 3 Level 2 Level 3 Valuation techniques ASSETS: 146,991 1,349 155,233 2,481 Financial assets held for trading 83,587 341 79,547 950 Credit institutions 3,220 — 1,352 — Present Value Method Customers (a) 9,504 — 6,081 — Present Value Method Debt and equity instruments 798 40 650 43 Present Value Method Derivatives 70,065 301 71,464 907 Swaps 53,499 55 52,904 54 Present Value Method, Gaussian Copula (b) Exchange rate options 524 2 1,005 — Black-Scholes Model Interest rate options 5,349 173 8,276 619 Black's Model, Heath-Jarrow- Morton Model Interest rate futures 1,447 — 84 — Present Value Method Index and securities options 1,725 26 1,585 120 Black-Scholes Model Other 7,521 45 7,610 114 Present Value Method, Monte Carlo simulation and others Hedging derivatives 10,134 27 7,438 18 Swaps 9,737 27 6,437 18 Present Value Method Exchange rate options — — — — Black-Scholes Model Interest rate options 13 — 19 — Black’s Model Other 384 — 982 — N/A Financial assets designated at fair value through profit or loss 28,064 325 41,285 514 Credit institutions 10,069 — 26,403 — Present Value Method Customers (c) 17,521 74 14,213 81 Present Value Method Debt and equity instruments 474 251 669 433 Present Value Method Financial assets available-for-sale 25,206 656 26,963 999 Debt and equity instruments 25,206 656 26,963 999 Present Value Method LIABILITIES: 136,835 86 151,768 324 Financial liabilities held for trading 87,790 69 87,858 302 Central banks 1,351 — 2,178 — Present Value Method Credit institutions 44 — 76 — Present Value Method Customers 9,996 — 9,187 — Present Value Method Debt securities issues — — — — Derivatives 73,481 69 74,893 302 Swaps 57,103 1 55,055 1 Present Value Method, Gaussian Copula (b) Exchange rate options 413 — 901 — Black-Scholes Model Interest rate options 6,485 21 9,240 194 Black's Model, Heath-Jarrow- Morton Model Index and securities options 1,672 46 2,000 107 Black-Scholes Model Interest rate and equity futures 1,443 — 101 — Present Value Method Other 6,365 1 7,596 — Present Value Method, Monte Carlo simulation and others Short positions 2,918 — 1,524 — Present Value Method Hedging derivatives 8,138 9 8,526 11 Swaps 6,676 9 7,971 11 Present Value Method Exchange rate options — — — — Interest rate options 10 — 12 — Black’s Model Other 1,452 — 543 N/A Financial liabilities designated at fair value through profit or loss 40,255 8 54,757 11 Present Value Method Liabilities under insurance contracts 652 — 627 — See Note 15 (a) Includes mainly short-term loans and reverse repurchase agreements with corporate customers (mainly brokerage and investment companies). (b) Includes credit risk derivatives with a net fair value of EUR zero million at December 31, 2017 (December 31, 2016 and 2015: net fair value of EUR-1 million and €46 million, respectively). These assets and liabilities are measured using the Standard Gaussian Copula Model. (c) Includes home mortgage loans to financial institutions in the UK (which are regulated and partly financed by the Government). The fair value of these loans was obtained using observable market variables, including current market transactions with similar amounts and collateral facilitated by the UK Housing Association. Since the Government is involved in these financial institutions, the credit risk spreads have remained stable and are homogeneous in this sector. The results arising from the valuation model are checked against current market transactions. Level 3 financial instruments Set forth below are the Group’s main financial instruments measured using unobservable market data as significant inputs of the internal models (Level 3): - Instruments in Santander UK’s portfolio (loans, debt instruments and derivatives) linked to the House Price Index (HPI). Even if the valuation techniques used for these instruments may be the same as those used to value similar products (present value in the case of loans and debt instruments, and the Black-Scholes model for derivatives), the main factors used in the valuation of these instruments are the HPI spot rate, the growth and volatility thereof, and the mortality rates, which are not always observable in the market and, accordingly, these instruments are considered illiquid. · HPI spot rate: for some instruments the NSA HPI spot rate, which is directly observable and published on a monthly basis, is used. For other instruments where regional HPI rates must be used (published quarterly), adjustments are made to reflect the different composition of the rates and adapt them to the regional composition of Santander UK’s portfolio. · HPI growth rate: this is not always directly observable in the market, especially for long maturities, and is estimated in accordance with existing quoted prices. To reflect the uncertainty implicit in these estimates, adjustments are made based on an analysis of the historical volatility of the HPI, incorporating reversion to the mean. · HPI volatility: the long-term volatility is not directly observable in the market but is estimated on the basis of shorter-term quoted prices and by making an adjustment to reflect the existing uncertainty, based on the standard deviation of historical volatility over various time periods. · Mortality rates: these are based on published official tables and adjusted to reflect the composition of the customer portfolio for this type of product at Santander UK. - Callable interest rate Derivatives (Bermudan-style options) where the main unobservable input is mean reversion of interest rates. - Trading Derivatives on interest rates, taking as an underlying asset titling and with the amortization rate (CPR, Conditional prepayment rate) as unobservable main entry. During 2016, the Group carried out a review of its financial instruments valuation processes with the purpose of increasing the observability of certain inputs and parameters used in its valuation techniques. As a result of this review, it started to receive prices of interest rate derivatives with the option of a clear type of discount for euros and U.S. dollars and correlations between pairs of shares to services of consensus pricing, which has allowed to incorporate the inputs obtained directly or inferred from instrument prices, in their internal valuation processes. As a consequence, those non-observable inputs (the parameter of the reversion to the average of the interest rates and the correlations between shares, respectively) used in the valuation of interest rate derivatives with the option of cancelling type euros and U.S. dollars and derivatives on stock baskets had become measurable and considered observable parameters, and therefore, these products were reclassified from Level 3 to Level 2. The measurements obtained using the internal models might have been different if other methods or assumptions had been used with respect to interest rate risk, to credit risk, market risk and foreign currency risk spreads, or to their related correlations and volatilities. Nevertheless, the Bank's directors consider that the fair value of the financial assets and liabilities recognized in the consolidated balance sheet and the gains and losses arising from these financial instruments are reasonable. The net amount recognized in profit and loss in 2017 arising from models whose significant inputs are unobservable market data (Level 3) amounted to a €116 million loss (€60 million profit in 2016 and €28 million loss in 2015). The table below shows the effect, at December 31, 2017 on the fair value of the main financial instruments classified as Level 3 of a reasonable change in the assumptions used in the valuation. This effect was determined by applying the probable valuation ranges of the main unobservable inputs detailed in the following table: Impacts (in millions of euros) Portfolio / Instrument Weighted Unfavorable Favorable (Level 3) Valuation technique Main unobservable inputs Range average scenario scenario Financial assets held for trading Derivatives Present Value Method Curves on TAB indices (*) (a) (a) (0.2) Long-term volatility in MXN (a) (a) (0.1) Present Value Method, Modified Black-Scholes Model HPI forward growth rate 0% ‑ 5% (25.9) HPI spot rate n/a (**) (9.4) FX Volatility in long term 11% ‑ 21% (1.8) Standard Gaussian Copula Model Probability of default 0% ‑ 5% (2.4) Reversal to the average interest rate (2%) ‑ 2% (1.1) Other financial assets designated at fair value through profit or loss Customers Probabi |
Derecognition of financial assets and liabilities | e) 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. 2. a. An associated financial liability, which is recognized for an amount equal to the consideration received and is subsequently measured at amortized cost, unless it meets the requirements for classification under Financial liabilities designated at fair value through profit or loss. b. The income from the transferred financial asset not derecognized and any expense incurred on the new financial liability, without offsetting. 3. 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. Similarly, financial liabilities are only derecognized when the obligations they generate have been extinguished or when they are acquired with the intention either to cancel them or to resell them. |
Offsetting of financial instruments | f) Financial asset and liability balances are offset, i.e. reported in the consolidated balance sheet at their net amount, only if the Group entities 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. Following is the detail of financial assets and liabilities that were offset in the consolidated balance sheets as at December 31, 2017, 2016 and 2015: December 31, 2017 Millions of euros Gross amount of financial Net amount of Gross amount liabilities offset financial assets of financial in the balance presented in the Assets assets sheet balance sheet Derivatives 103,740 (37,960) 65,780 Reverse repurchase agreements 56,701 (7,145) 49,556 Total 160,441 (45,105) 115,336 December 31, 2016 Millions of euros Gross amount of financial Net amount of Gross amount liabilities offset financial assets of financial in the balance presented in the Assets assets sheet balance sheet Derivatives 127,679 (45,259) 82,420 Reverse repurchase agreements 53,159 (2,213) 50,946 Total 180,838 (47,472) 133,366 December 31, 2015 Millions of euros Gross amount of financial Net amount of Gross amount liabilities offset financial assets of financial in the balance presented in the Assets assets sheet balance sheet Derivatives 127,017 (42,566) 84,451 Reverse repurchase agreements 59,158 (2,066) 57,092 Total 186,175 (44,632) 141,543 December 31, 2017 Millions of euros Gross amount of financial Net amount of Gross amount assets offset financial liabilities of financial in the balance presented in the Liabilities liabilities sheet balance sheet Derivatives 103,896 (37,960) 65,936 Repurchase agreements 110,953 (7,145) 103,808 Total 214,849 (45,105) 169,744 December 31, 2016 Millions of euros Gross amount of financial Net amount of Gross amount assets offset financial liabilities of financial in the balance presented in the Liabilities liabilities sheet balance sheet Derivatives 127,784 (45,259) 82,525 Repurchase agreements 82,543 (2,213) 80,330 Total 210,327 (47,472) 162,855 December 31, 2015 Millions of euros Gross amount of financial Net amount of Gross amount assets offset financial liabilities of financial in the balance presented in the Liabilities liabilities sheet balance sheet Derivatives 127,917 (42,566) 85,351 Repurchase agreements 97,169 (2,066) 95,103 Total 225,086 (44,632) 180,454 Also, the Group has offset other items amounting to €1,645 million (December 31, 2016 and 2015: €1,742 million and €2,036 million, respectively). At December 31, 2017 the balance sheet shows the amounts €97,017 million (2016: €110,445 million) on derivatives and repos as assets and €153,566 million (2016: €137,097 million) on derivatives and repos as liabilities that are subject to netting and collateral arrangements. |
Impairment of financial assets | g) i. A financial asset is considered to be impaired -and therefore its carrying amount is adjusted to reflect the effect of impairment- when there is objective evidence that events have occurred which: - In the case of debt instruments (loans and debt securities), give rise to an adverse impact on the future cash flows that were estimated at the transaction date. - In the case of equity instruments, mean that their carrying amount may not be fully recovered. As a general rule, the adjustment of the value of the impaired financial instruments is charged to the consolidated income statement for the period in which the impairment becomes evident, and the reversal, if any, of previously recognized impairment loss is recognized in the consolidated income statement for the period in which the impairment is reversed or reduced. Transactions classified as non-performing due to arrears are reclassified as standard if, as a result of the collection of a portion or the sum of the unpaid instalments, the reasons for classifying such transactions as non-performing cease to exist, i.e. they no longer have any amount more than 90 days past due, unless other subjective reasons remain for classifying them as non-performing. The refinancing of non-performing loans does not result in their reclassification to standard unless: the minimum period of two year has elapsed since the refinancing date, the holder has paid the accrued principal and interest accounts, and the customer has no other operation with overdue amounts of more than 90 days. The following constitute effective guarantees: a) Mortgage guarantees on housing as long as they are first duly constituted and registered in favor of the entity. The properties include: i. Buildings and building elements, distinguishing among: - Houses; - Offices commercial and multi-purpose premises; - Rest of buildings such as non-multi-purpose premises and hotels. ii. Urban and developable ordered land. iii. Rest of properties that classified in: buildings and building elements under construction, such as property development in progress and halted development, and the rest of land types, such as rustic 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 transaction and implying direct and joint liability to the entity of persons or entities whose solvency is sufficiently proven to ensure the reimbursement of the operation on the agreed terms. The balances relating to impaired assets continue to be recognized on the balance sheet, for their full amounts, until the Group considers that the recovery of those amounts is remote. The Group considers recovery to be remote when there has been a substantial and irreversible deterioration of the borrower’s solvency, when commencement of the liquidation phase of insolvency proceedings has been ordered or when more than four years have elapsed since the borrower’s transaction was classified as non-performing due to arrears, or, before reaching this seniority, when the amount not covered by effective guarantees has been maintained with a credit risk coverage of 100% for more than two years, unless they have effective collateral that covers at least 10% of the gross book value of the operation. When the recovery of a financial asset is considered remote, it is written off, together with the related allowance, without prejudice to any actions that the consolidated entities may initiate to seek collection until their contractual rights are extinguished due to expiry of the statute-of-limitations period, forgiveness or any other cause. ii. The Group has certain policies, methods and procedures for covering its credit risk arising both from insolvency allocable to counterparties and from country risk. These policies, methods and procedures are applied in the granting, examination and documentation of debt instruments and contingent liabilities as well as commitments, and in the identification of their impairment and the calculation of the amounts required to cover the related credit risk. Impairment losses allowances on debt instruments carried at amortized cost represent the best management estimate of the incurred losses in such portfolio at closing date, both individually and collectively considered. For the purpose of determining impairment losses, the Group monitors its debtors as described below: - Individually: Significant debt instruments considered by the Group where impairment evidence exists. Consequently, this category includes mainly wholesale banking clients - Corporations, Earmarked Funding and Financial Institutions- as well as part of the larger Companies -Chartered- and developers from retail banking. At balance sheet date, the group assesses on whether a debt instrument or a Group is impaired. A specific analysis is performed for all debtors monitored individually that have undergone an event such as: - Operations with amounts of capital, interests or expenditures agreed contractually, past-due by more than 90 days. - Significantly inadequate economic or financial structure, or inability to obtain additional owner financing. - Generalized delay in payments or insufficient cash flows to cover debts. - The lender, for economic or legal reasons related to the borrower’s financial difficulties, grants the borrower concessions or advantages that otherwise would not have been granted. - The borrower enters a bankruptcy situation or in any other situation of financial reorganization. In these situations, an assessment is performed on the estimated future cash flows in connection with the relevant asset, discounted the original effective interest rate of the loan granted. The result is compared with the carrying value of the asset. The differences between the carrying value of the operation and the discounted value of the cash flow estimate will be analyzed and recognized as a specific provision for impairment loss. - Collectively, in all other cases: clients considered by the Group as “standardized”, and all other clients considered by the Group as non significant, grouping those instruments with similar credit risk features, that may indicate the debtor's ability to pay all the amounts, capital and interests, according to the contractual terms. Credit risk features that are taken into account when grouping assets are, among others: type of instrument, debtors activity sector, geographical area of the activity, type of guarantee, maturity of the amounts due and any other factor that may be significant for the estimation of the future cash flows. Within this category are included, for example, risks with individuals, individual entrepreneurs, non-chartered retail banking companies, as well as those due to their amounts could be individualized but an impairment does not exist. The collective provisions for impairment are subject to uncertainties in their estimation due, in part, to the difficult identification of losses since they individually appear insignificant within the portfolio. The estimation methods include the use of statistical analyses of historical information. These are supplemented by the application of significant judgments by the management, with the objective of evaluating if the current economic and credit conditions are such that the level of losses incurred is expected to be higher or less than that which results from experience. When the most recent trends related to portfolio risk factors are not fully reflected in statistical models as a result of changes in economic, regulatory and social conditions, these factors are taken into account by adjusting impairment provisions based on experience of other historical losses. On these estimates the Group performs retrospective and comparative tests with market references to evaluate the reasonableness of the collective calculation. The Group's internal models determine impairment losses on debt instruments not measured at fair value with changes in the income statement, as well as contingent risks, taking into account the historical experience of impairment and other circumstances known at the time of the evaluation. For these purposes, impairment losses are the losses incurred at the balance sheet date of preparation of the consolidated annual accounts calculated using statistical procedures. The amount of an impairment loss incurred on these instruments is equal to the difference between their carrying amount and the present value of their estimated future cash flows. In estimating the future cash flows of debt instruments the following factors are taken into account: - All the amounts that are expected to be obtained over the remaining life of the instrument, including, where appropriate, those which may result from the collateral provided for the instrument (less the costs for obtaining and subsequently selling the collateral). The impairment loss takes into account the likelihood of collecting accrued past-due interest receivable; - The various types of risks to which each instrument is subject; and - The circumstances in which collections will foreseeably be made. These cash flows are subsequently discounted using the instrument’s effective interest rate (if its contractual rate is fixed) or the effective contractual rate at the discount date (if it is variable). The loss incurred is calculated by multiplying three factors: exposure at default (EAD), probability of default (PD) and Loss given default (LGD). These parameters are also used to calculate economic capital and to calculate BIS (Bank for International Settlements) II regulatory capital under internal models (see Note 1.e). - Exposure at default is the amount of risk exposure estimated at the date of default by the counterparty. - Probability of default is the probability of the counterparty failing to meet its principal and/or interest payment obligations. For the purpose of calculating the incurred loss, PD is measured using a time horizon of one year; i.e. it quantifies the probability of the counterparty defaulting in the coming year due to an event that had already occurred at the assessment date. The definition of default used includes amounts past due by 90 days or more and cases in which there is no default but there are doubts as to the solvency of the counterparty (subjective non-performing assets). - Loss given default: is the loss produced in case of impairment. It mainly depends on the update of the guarantees associated with the operation and the future flows that are expected to be recovered. In addition to the factors mentioned above, the incurred loss calculation also contemplate point-in-time adjustments for the PD and LGD factors which consider historical experience and other specific information reflecting actual conditions. In addition, in order to determine the coverage of impairment losses on debt instruments measured at amortized cost, the Group considers the risk that exists in counterparties resident in a given country due to circumstances other than the usual commercial risk (sovereign risk, transfer risk or risks arising from international financial activity). The debt instruments measured at amortized cost and classified as doubtful are divided, according to the criteria indicated in the following sections: i. Debt instruments, whoever the obligor and whatever the guarantee or collateral, with amounts more than 90 days past due are provisioned individually, taking into account the age of the past-due amounts, the guarantees or collateral provided and the financial situation of the counterparty and the guarantors. ii. Debt instruments which are not classifiable as non-performing due to arrears but for which there are reasonable doubts as to their repayment under the contractual terms are provisioned individually, and their allowance is the difference between the amount recognized in assets and the present value of the cash flows expected to be received. This information is provided in more detail in Note 54.c (Credit risk). |
Repurchase agreements and reverse repurchase agreements | h) Purchases (sales) of financial instruments under a non-optional resale (repurchase) agreement at a fixed price (repos) are recognized in the consolidated balance sheet as financing granted (received), based on the nature of the debtor (creditor), under Loans and advances with central banks, Loans and advances to credit institutions or Loans and advances to customers (Deposits from central banks, Deposits from credit institutions or Customer deposits). Differences between the purchase and sale prices are recognized as interest over the contract term. |
Non-current assets and Liabilities associated with non-current assets held for sale | i) Non-current assets held for sale includes the carrying amount of individual items, disposal groups or items forming part of a business unit earmarked for disposal (discontinued operations), whose sale in their present condition is highly likely to be completed within one year from the reporting date. Therefore, the recovery of the carrying amount of these items -which can be of a financial nature or otherwise- will foreseeably be effected through the proceeds from their disposal. Specifically, property or other non-current assets received by the consolidated entities as total or partial settlement of their debtors’ payment obligations to them are deemed to be Non-current assets held for sale, unless the consolidated entities have decided to make continuing use of these assets. In this connection, for the purpose of its consideration in the initial recognition of these assets, the Group obtains, at the foreclosure date, the fair value of the related asset through a request for appraisal by external appraisal agencies. The Group has in place a corporate policy that ensures the professional competence and the independence and objectivity of the external appraisal agencies, in accordance with the regulations, which require appraisal agencies to meet independence, neutrality and credibility requirements, so that the use of their estimates does not reduce the reliability of its valuations. This policy establishes that all the appraisal companies and agencies with which the Group works in Spain should be registered in the Official Register of the Bank of Spain and that the appraisals performed by them should follow the methodology established in Ministry of Economy Order ECO/805/2003, of March 27. The main appraisal companies and agencies with which the Group worked in Spain in 2017 are as follows: Eurovaloraciones, S.A., Ibertasa, S.A., Tinsa Tasaciones Inmobiliarias, S.A.U., Tasaciones Hipotecarias Renta, S.A., Krata, S.A. and Compañía Hispania de Tasaciones y Valoraciones, S.A. Also, this policy establishes that the various subsidiaries abroad work with appraisal companies that have recent experience in the area and the type of asset under appraisal and meet the independence requirements established in the corporate policy. They should verify, inter alia, that the appraisal company is not a party related to the Group and that its billings to the Group in the last twelve months do not exceed 15% of the appraisal company’s total billings. Liabilities associated with non-current assets held for sale includes the balances payable arising from the assets held for sale or disposal groups and from discontinued operations. Non-current assets and disposal groups of items that have been classified as held for sale are generally recognized at the date of their allocation to this category and are subsequently valued at the lower of their fair value less costs to sell or its book value. Non-current assets and disposal groups of items that are classified as held for sale are not amortized as long as they remain in this category. At December 31, 2017 the fair value less costs to sell of non-current assets held for sale exceeded their carrying amount by €613 million; however, in accordance with the accounting standards, this unrealized gain could not be recognized. The valuation of the portfolio of non-current assets held for sale has been made in compliance with the requirements of International Financial Reporting Standards in relation to the estimate of the fair value of tangible assets and the value-in-use of financial assets. The value of the portfolio is determined as the sum of the values of the individual elements that compose the portfolio, without considering any total or batch grouping in order to correct the individual values. In the case of real estate assets foreclosed in Spain, which represent 91.53% of the Group's total Non-Current assets held for sale, the valuation of the portfolio is carried out by applying the following models: - Market Value Model used in the valuation of finished residential properties (housing and parkings) and buildings of a tertiary nature (offices, commercial premises and multipurpose buildings). The current market value of real estate is based on statistical valuations obtained by historical series of average market values (sales prices), distinguishing by location and typology of the property. In addition, for individual significant assets, complete individual valuations are performed. Valuations made using this method are considered as Level 2. - Market Value Model according to the Evolution of Market Values issued in the valuation of property developments in progress. The current market value of the properties is estimated on the basis of complete individual valuations of third parties, calculated from the values of feasibility studies and development costs of the promotion, as well as selling expenses, distinguishing by location and typology of the property. The valuation of real estate assets under construction is made considering the current situation of the property and not considering the final value of the property. Valuations made using this method are considered as Level 3. - Market Value Model according to the Statistical Evolution of Lands Values (Methodology used in the valuation of lands). A statistical update method is used, taking as reference the indexes published by the Ministry of Development applied to the latest individual valuations (appraisals) carried out by independent valuation companies and agencies. Valuations made using this method are considered as Level 2. In addition, in relation to the previously mentioned valuations, less costs to sell, are contrasted with the sales experience of each type of asset in order to confirm that there is no significant difference between the sale price and the valuation. 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 or (losses) on non-current assets held for sale not classified as discontinued operations 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. |
Reinsurance assets and liabilities under insurance contracts | j) Insurance contracts involve the transfer of a certain quantifiable risk in exchange for a periodic or one-off premium. The effects on the Group’s cash flows will arise from a deviation in the payments forecast and/or an insufficiency in the premium set. The Group controls its insurance risk as follows: - By applying a strict methodology in the launch of products and in the assignment of value thereto. - By using deterministic and stochastic actuarial models for measuring commitments. - By using reinsurance as a risk mitigation technique as part of the credit quality guidelines in line with the Group’s general risk policy. - By establishing an operating framework for credit risks. - By actively managing asset and liability matching. - By applying security measures in processes. Reinsurance assets includes the amounts that the consolidated entities are entitled to receive for reinsurance contracts with third parties and, specifically, the reinsurer’s share of the technical provisions recorded by the consolidated insurance entities. At least once a year these assets are reviewed to ascertain whether they are impaired (i.e. there is objective evidence, as a result of an event that occurred after initial recognition of the reinsurance asset, that the Group may not receive all amounts due to it under the terms of the contract and the amount that will not be received can be reliably measured), and any impairment loss is recognized in the consolidated income statement and the assets are written down. Liabilities under insurance contracts includes the technical provisions recorded by the consolidated entities to cover claims arising from insurance contracts in force at year-end. Insurers' results relating to their insurance business are recognized, according to their nature, under the related consolidated income statement items. In accordance with standard accounting practice in the insurance industry, the consolidated insurance entities credit to the income statement the amounts of the premiums written and charge to income the cost of the claims incurred on final settlement thereof. Insurance entities are therefore required to accrue at period-end the unearned revenues credited to their income statements and the accrued costs not charged to income. At least at each reporting date the Group assesses whether the insurance contract liabilities recognized in the consolidated balance sheet are adequate. For this purpose, it calculates the difference between the following amounts: - Current estimates of future cash flows under the insurance contracts of the consolidated entities. These estimates include all contractual cash flows and any related cash flows, such as claims handling costs; and - The carrying amount recognized in the consolidated balance sheet of its insurance contract liabilities (See Note 15), less any related deferred acquisition costs or related intangible assets, such as the amount paid to acquire, in the event of purchase by the entity, the economic rights held by a broker deriving from policies in the entity's portfolio. If the calculation results in a positive amount, this deficiency is charged to the consolidated income statement. When unrealized gains or losses on assets of the Group's insurance companies affect the measurement of liabilities under insurance contracts and/or the related deferred acquisition costs and/or the related intangible assets, these gains or losses are recognized directly in equity. The corresponding adjustment in the liabilities under insurance contracts (or in the deferred acquisition costs or in intangible assets) is also recognized in equity. The most significant items forming part of the technical provisions (see Note 15) are detailed below: - Non-life insurance provisions: i) Provision for unearned premiums: relates to the portion of the premiums received at year-end that is allocable to the period from the reporting date to the end of the policy cover period. ii) Provisions for unexpired risks: this supplements the provision for unearned premiums to the extent that the amount of the latter is not sufficient to reflect all the assessed risks and expenses to be covered by the insurance companies in the policy period not elapsed at the reporting date. - Life insurance provisions: represent the value of the net obligations acquired vis-à-vis life insurance policyholders. These provisions include: i) Provision for unearned premiums and unexpired risks: this relates to the portion of the premiums received at year-end that is allocable to the period from the reporting date to the end of the policy cover period. ii) Mathematical provisions: these relate to the value of the insurance companies' obligations, net of the policyholders' obligations. These provisions are calculated on a policy-by-policy basis using an individual capitalization system, taking as a basis for the calculation the premium accrued in the year, and in accordance with the technical bases of each type of insurance updated, where appropriate, by the local mortality tables. - Provision for claims outstanding: this reflects the total obligations outstanding arising from claims incurred prior to the reporting date. This provision is calculated as the difference between the total estimated or certain cost of the claims not yet reported, settled or paid and all the amounts already paid in relation to such claims. - Provision for bonuses and rebates: this provision includes the amount of the bonuses accruing to policyholders, insureds or beneficiaries and that of any premiums to be returned to policyholders or insureds, to the extent that such amounts have not been assigned at the reporting date. These amounts are calculated on the basis of the conditions of the related individual policies. - Technical provisions for life insurance policies where the investment risk is borne by the policyholders: these provisions are calculated on the basis of the indices established as a reference to determine the economic value of the policyholders’ rights. |
Tangible assets | k) Tangible assets includes the amount of buildings, land, furniture, vehicles, computer hardware and other fixtures owned by the consolidated entities or acquired under finance leases. Tangible assets are classified by use as follows: i. Property, plant and equipment for own use – including tangible assets received by the consolidated entities in full or partial satisfaction of financial assets representing receivables from third parties which are intended to be held for continuing use and tangible assets acquired under finance leases– are presented at acquisition cost, less the related accumulated depreciation and any estimated impairment losses (carrying amount higher than recoverable amount). Depreciation is calculated, using the straight-line method, on the basis of the acquisition cost of the assets less their residual value. The land on which the buildings and other structures stand has an indefinite life and, therefore, is not depreciated. The period tangible asset depreciation charge 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 2.0 % Furniture 7.7 % Fixtures 7.0 % Office and IT equipment 25.0 % Leasehold improvements 7.0 % The consolidated entities assess at the reporting date whether there is any indication that an asset may be impaired (i.e. its carrying amount exceeds its recoverable amount). If this is the case, the carrying amount of the 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 consolidated entities recognize the reversal of the impairment loss recognized in prior periods and adjust the future depreciation charges accordingly. In no circumstances may the reversal of an impairment loss on an 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 items of property, plant and equipment for own use are reviewed at least at the end of the reporting period with a view to detecting significant changes therein. If changes are detected, the useful lives of the assets are adjusted by correcting the depreciation charge to be recognized in the consolidated income statement in future years on the basis of the new useful lives. Upkeep and maintenance expenses relating to property, plant and equipment for own use are recognized as an expense in the period in which they are incurred, since they do not increase the useful lives of the assets. ii. Investment property Investment property reflects the net values of the land, buildings and other structures held either to earn rentals or for obtaining profits by sales due to capital appreciation. The criteria used to recognize the acquisition cost of investment property, to calculate its depreciation and its estimated useful life and to recognize any impairment losses thereon are consistent with those described in relation to property, plant and equipment for own use. The Group in order to evaluate the possible impairment determines periodically the fair value of its investment property so that, at the end of the reporting period, the fair value reflects the market conditions of the investment property at that date. This fair value is determined annually, taking as benchmarks the valuations performed by independent experts. The methodology used to determine the fair value of investment property is selected based on the status of the asset in question; thus, for properties earmarked for lease, the valuations are performed using the sales comparison approach, whereas for leased properties the valuations are made primarily using the income capitalization approach and, exceptionally, the sales comparison approach. In the sales comparison approach, the property market segment for comparable properties is analyzed, inter alia, and, based on specific information on actual transactions and firm offers, current prices are obtained for cash sales of those properties. The valuations performed using this approach are considered as Level 2 valuations. In the income capitalization approach, the cash flows estimated to be obtained over the useful life of the property are discounted taking into account factors that may influence the amount and actual obtainment thereof, such as: (i) the payments that are normally received on comparable properties; (ii) current and probable future occupancy; (iii) the current or foreseeable default rate on payments. The valuations performed using this approach are considered as Level 3 valuations, since unobservable inputs are used, such as current and probable future occupancy and/or the current or foreseeable default rate on payments. iii. Property, plant and equipment - Leased out under an operating lease reflects the amount of the tangible assets, other than land and buildings, leased out by the Group under an operating lease. The criteria used to recognize the acquisition cost of assets leased out under operating leases, to calculate their depreciation and their respective estimated useful lives and to recognize the impairment losses thereon are consistent with those described in relation to property, plant and equipment for own use. |
Accounting for leases | l) i. Finance leases are leases that transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. When the consolidated entities act as the lessors of an asset, the sum of the present value of the lease payments receivable from the lessee, including the exercise price of the lessee's purchase option at the end of the lease term when such exercise price is sufficiently below fair value at the option date such that it is reasonably certain that the option will be exercised, is recognized as lending to third parties and is therefore included under Loans and receivables in the consolidated balance sheet. When the consolidated entities act as the lessees, they present the cost of the leased assets in the consolidated balance sheet, based on the nature of the leased asset, and, simultaneously, recognize a liability for the same amount (which is the lower of the fair value of the leased asset and the sum of the present value of the lease payments payable to the lessor plus, if appropriate, the exercise price of the purchase option). The depreciation policy for these assets is consistent with that for property, plant and equipment for own use. In both cases, the finance income and finance charges arising under finance lease agreements are credited and debited, respectively, to interest and similar income and Interest expense and similar charges in the consolidated income statement so as to produce a constant rate of return over the lease term. ii. In operating leases, ownership of the leased asset and substantially all the risks and rewards incidental thereto remain with the lessor. When the consolidated entities act as the lessors, they present the acquisition cost of the leased assets under Tangible assets (See Note 16). The depreciation policy for these assets is consistent with that for similar items of property, plant and equipment for own use, and income from operating leases is recognized on a straight-line basis under Other operating income in the consolidated income statement. When the consolidated entities act as the lessees, the lease expenses, including any incentives granted by the lessor, are charged on a straight-line basis to Other general administrative expenses in their consolidated income statements. iii. In sale and leaseback transactions where the sale is at fair value and the leaseback is an operating lease, any profit or loss is recognized at the time of sale. In the case of finance leasebacks, any profit or loss is amortized over the lease term. In accordance with IAS 17, in determining whether a sale and leaseback transaction results in an operating lease, the Group should analyze, inter alia, whether at the inception of the lease there are purchase options whose terms and conditions make it reasonably certain that they will be exercised, and to whom the gains or losses from the fluctuations in the fair value of the residual value of the related asset will accrue. |
Intangible assets | m) Intangible assets are identifiable non-monetary assets (separable from other assets) without physical substance which arise as a result of a legal transaction or which are developed internally by the consolidated entities. Only assets whose cost can be estimated reliably and from which the consolidated entities consider it probable that future economic benefits will be generated are recognized. Intangible assets are recognized initially at acquisition or production cost and are subsequently measured at cost less any accumulated amortization and any accumulated impairment losses. i. Any excess of the cost of the investments in the consolidated entities and entities accounted for using the equity method over the corresponding underlying carrying amounts acquired, adjusted at the date of first-time consolidation, is allocated as follows: - If it is attributable to specific assets and liabilities of the companies 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 entities' balance sheets. - If it is attributable to specific intangible assets, by recognizing it explicitly in the consolidated balance sheet provided that 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 cash-generating units (a cash-generating unit is the smallest identifiable group of assets that, as a result of continuing operation, generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets). The cash-generating units represent the Group's geographical and/or business segments. Goodwill is only recognized when it has been acquired for consideration and represents, therefore, a payment made by the acquirer in anticipation of future economic benefits from assets of the acquired entity that are not capable of being individually identified and separately recognized. At the end of each annual 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 Impairment on non financial assets (net) - Intangible assets in the consolidated income statement. An impairment loss recognized for goodwill is not reversed in a subsequent period. ii. Other intangible assets includes the amount of identifiable intangible assets (such as purchased customer lists and computer software). 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 consolidated entities- or a finite useful life, in all other cases. Intangible assets with indefinite useful lives are not amortized, but rather at the end of each reporting period or whenever there is any indication of impairment the consolidated entities review 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 amortized over those useful lives using methods similar to those used to depreciate tangible assets. The intangible asset amortization charge is recognized under Depreciation and amortization in the consolidated income statement. In both cases the consolidated entities recognize any impairment loss on the carrying amount of these assets with a charge to Impairment losses on other assets (net) 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.k). Internally developed computer software Internally developed computer software is recognized as an intangible asset if, among other requisites (basically the Group's ability to use or sell it), it can be identified and its ability to generate future economic benefits can be demonstrated. Expenditure on research activities is recognized as an expense in the year in which it is incurred and cannot be subsequently capitalized. |
Other assets | n) Other assets in the consolidated balance sheet includes the amount of assets not recorded in other items, the breakdown being as follows: - Inventories: this item includes the amount of assets, other than financial instruments, that are held for sale in the ordinary course of business, that are in the process of production, construction or development for such purpose, or that are to be consumed in the production process or in the provision of services. Inventories includes land and other property held for sale in the property development business. Inventories are measured at the lower of cost and net realizable value, which is the estimated selling price of the inventories in the ordinary course of business, less the estimated costs of completion and the estimated costs required to make the sale. Any write-downs of inventories -such as those due to damage, obsolescence or reduction of selling price- to net realizable value and other impairment losses are recognized as expenses for the year in which the impairment or loss occurs. Subsequent reversals are recognized in the consolidated income statement for the year in which they occur. The carrying amount of inventories is derecognized and recognized as an expense in the period in which the revenue from their sale is recognized. - Other: this item includes the balance of all prepayments and accrued income (excluding accrued interest, fees and commissions), the net amount of the difference between pension plan obligations and the value of the plan assets with a balance in the entity’s favor, when this net amount is to be reported in the consolidated balance sheet, and the amount of any other assets not included in other items. |
Other liabilities | o) Other liabilities includes the balance of all accrued expenses and deferred income, excluding accrued interest, and the amount of any other liabilities not included in other categories. |
Provisions and contingent assets and liabilities | p) When preparing the financial statements of the consolidated entities, the Bank’s directors made a distinction between: - Provisions: credit balances covering present obligations at the reporting date arising from past events which could give rise to a loss for the consolidated entities, 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 consolidated entities. They include the present obligations of the consolidated entities when it is not probable that an outflow of resources embodying economic benefits will be required to settle them. The Group does not recognize the contingent liability. The Group 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 one or more uncertain future events not wholly within the control of the Group. Contingent assets are not recognized in the consolidated balance sheet or in the consolidated income statement, but rather are disclosed in the notes, provided that it is probable that these assets will give rise to an increase in resources embodying economic benefits. The Group's consolidated financial statements include all the material provisions with respect to which it is considered that it is more likely than not the obligation will have to be settled. In accordance with accounting standards, contingent liabilities must not be recognized in the consolidated financial statements, but must rather be disclosed in the notes. Provisions, which are quantified on the basis of the best information available on the consequences of the event giving rise to them and are reviewed and adjusted at the end of each year, are used to cater for the specific obligations for which they were originally recognized. Provisions are fully or partially reversed when such obligations cease to exist or are reduced. Provisions are classified according to the obligations covered as follows (See Note 25): - Provision for pensions and similar obligations: includes the amount of all the provisions made to cover post-employment benefits, including obligations to pre-retirees and similar obligations. - Provisions for commitments and guarantees given: include the amount of the provisions made to cover contingent liabilities -defined as those transactions in which the Group guarantees the obligations of a third party, arising as a result of financial guarantees granted or contracts of another kind- and contingent commitments -defined as irrevocable commitments that may give rise to the recognition of financial assets. - Provisions for taxes and other legal contingencies and Other provisions: include the amount of the provisions recognized to cover tax and legal contingencies and litigation and the other provisions recognized by the consolidated entities. Other provisions includes, inter alia, any provisions for restructuring costs and environmental measures. |
Court proceedings and/or claims in process | q) - At the end of 2017 certain court proceedings and claims were in process against the consolidated entities arising from the ordinary course of their operations (see Note 25). |
Own equity instruments | r) Own equity instruments are those meeting both of the following conditions: - The instruments do not include any contractual obligation for the issuer: (i) to deliver cash or another financial asset to a third party; or (ii) to exchange financial assets or financial liabilities with a third party under conditions that are potentially unfavorable to the issuer. - The instruments will or may be settled in the issuer’s own equity instruments and are: (i) a non-derivative that includes no contractual obligation for the issuer to deliver a variable number of its own equity instruments; or (ii) a derivative that will be settled by the issuer through the exchange of a fixed amount of cash or another financial asset for a fixed number of its own equity instruments. Transactions involving own equity instruments, including their issuance and cancellation, are charged directly to equity. Changes in the value of instruments classified as own equity instruments are not recognized in the consolidated financial statements. Consideration received or paid in exchange for such instruments, including the coupons on preference shares contingently convertible into ordinary shares and the coupons associated with CCPP, is directly added to or deducted from equity. |
Equity-instrument-based employee remuneration | s) Own equity instruments delivered to employees in consideration for their services, if the instruments are delivered once the specific period of service has ended, are recognized as an expense for services (with the corresponding increase in equity) as the services are rendered by employees during the service period. At the grant date the services received (and the related increase in equity) are measured at the fair value of the equity instruments granted. If the equity instruments granted are vested immediately, the Group recognizes in full, at the grant date, the expense for the services received. When the requirements stipulated in the remuneration agreement include external market conditions (such as equity instruments reaching a certain quoted price), the amount ultimately to be recognized in equity will depend on the other conditions being met by the employees (normally length of service requirements), irrespective of whether the market conditions are satisfied. If the conditions of the agreement are met but the external market conditions are not satisfied, the amounts previously recognized in equity are not reversed, even if the employees do not exercise their right to receive the equity instruments. |
Recognition of income and expenses | t) The most significant criteria used by the Group to recognize its income and expenses are summarized as follows: i. Interest income, interest expenses and similar items are generally recognized on an accrual basis using the effective interest method. Dividends received from other companies are recognized as income when the consolidated entities' right to receive them arises. ii. Fee and commission income and expenses are recognized in the consolidated income statement using criteria that vary according to their nature. The main criteria are as follows: - Fee and commission income and expenses relating to financial assets and financial liabilities measured at fair value through profit or loss are recognized when paid. - Those arising from transactions or services that are performed over a period of time 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. iii. These are recognized for accounting purposes on an accrual basis. iv. These are recognized for accounting purposes at the amount resulting from discounting the expected cash flows at market rates. v. Loan arrangement fees, mainly loan origination, application and information fees, are accrued and recognized in income over the term of the loan. In the case of loan origination fees, the portion relating to the associated direct costs incurred in the loan arrangement is recognized immediately in the consolidated income statement. |
Financial guarantees | u) 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. The Group initially recognizes the financial guarantees provided 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, and simultaneously the Group recognizes the amount of the fees, commissions and similar interest received at the inception of the transactions and a credit on the asset side of the consolidated balance sheet for the present value of the fees, commissions and interest outstanding. Financial guarantees, regardless of the guarantor, instrumentation or other circumstances, are reviewed periodically so as 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 debt instruments carried at amortized cost (described in Note 2.g above). The provisions made for these transactions are recognized under Provisions - Provisions for commitments and guarantees given in the consolidated balance sheet (See Note 25). 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 - Other financial liabilities in the consolidated balance sheet are reclassified to the appropriate provision. |
Assets under management and investment and pension funds managed by the Group | v) Assets owned by third parties and managed by the consolidated entities are not presented on the face of the consolidated balance sheet. Management fees are included in Fee and commission income in the consolidated income statement. The investment funds and pension funds managed by the consolidated entities are not presented on the face of the Group's consolidated balance sheet since the related assets are owned by third parties. The fees and commissions earned in the year for the services rendered by the Group entities to these funds (asset management and custody services) are recognized under Fee and commission income in the consolidated income statement. Note 2.b.iv describes the internal criteria and procedures used to determine whether control exists over the structured entities, which include, inter alia, investment funds and pension funds. |
Post-employment, other long-term employee, and termination benefits | w) Under the collective agreements currently in force and other arrangements, the Spanish banks included in the Group and certain other Spanish and foreign consolidated entities have undertaken to supplement the public social security system benefits accruing to certain employees, and to their beneficiary right holders, for retirement, permanent disability or death, and the post-employment welfare benefits. The Group's post-employment obligations to its employees are deemed to be defined contribution plans when the Group makes pre-determined contributions (recognized under Personnel expenses in the consolidated income statement) 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 25). Defined contribution plans The contributions made in this connection in each year are recognized under Personnel expenses in the consolidated income statement. The amounts not yet contributed at each year-end are recognized, at their present value, under Provisions - Provision for pensions and similar obligations on the liability side of the consolidated balance sheet. Defined benefit plans The Group 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. 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 consolidated entities, but by a legally separate third party that is not a party related to the Group. - They are only available to pay or fund post-employment benefits and they cannot be returned to the consolidated entities unless the assets remaining in the plan are sufficient to meet all the benefit obligations of the plan and of the entity to current and former employees, or they are returned to reimburse employee benefits already paid by the Group. If the Group can look to an insurer to pay part or all of the expenditure required to settle a defined benefit obligation, and it is practically certain that said insurer will reimburse some or all of the expenditure required to settle that obligation, but the insurance policy does not qualify as a plan asset, the Group recognizes its right to reimbursement -which, in all other respects, is treated as a plan asset- under Insurance contracts linked to pensions on the asset side of the consolidated balance sheet. Post-employment benefits are recognized as follows: - Current service cost, i.e. 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 or reversal of provisions. - Any gain or loss arising from a liquidation of the plan is included in the Provisions or reversion of provisions. - 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 (Interest and similar income if it constitutes income) in the consolidated income statement. The remeasurement of the net defined benefit liability (asset) is recognized in Other comprehensive income under Items not reclassified to profit or loss 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). x) Other long-term employee benefits, defined as obligations to pre-retirees -taken to be those who have ceased to render services at the entity but who, without being legally retired, continue to have economic rights vis-à-vis the entity until they acquire the legal status of retiree-, long-service bonuses, obligations for death of spouse or disability before retirement that depend on the employee’s length of service at the entity and other similar items, 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 or reversal of provisions in the consolidated income statement (see Note 25). y) Termination benefits are recognized when there is a detailed formal plan identifying the basic changes to be made, provided that implementation of the plan has begun, its main features have been publicly announced or objective facts concerning its implementation have been disclosed. |
Income tax | z) The expense for Spanish income tax and other similar taxes applicable to the foreign consolidated entities is recognized in the consolidated income statement, except when it results from a transaction recognized directly in equity, in which case the tax effect is also recognized in equity. The current 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. 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, and tax loss 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. Tax assets includes 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 includes 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. Deferred tax liabilities are recognized in respect of taxable temporary differences associated with investments in subsidiaries, associates or joint ventures, except when the Group is able to control the timing of the reversal of the temporary difference and, in addition, it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are only recognized for temporary differences to the extent that it is considered probable that the consolidated entities 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 consolidated entities will have sufficient future taxable profits against which they can be utilized. Income and expenses recognized directly in equity are accounted for as temporary differences. The deferred tax assets and liabilities are reassessed at the reporting date in order to ascertain whether any adjustments need to be made on the basis of the findings of the analyses performed. |
Residual maturity periods and average interest rates | aa) The analysis of the maturities of the balances of certain items in the consolidated balance sheet and the average interest rates at the end of the reporting periods is provided in Note 51. |
Consolidated statements of recognized income and expense | ab) This statement presents the income and expenses generated by the Group 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 equity. Accordingly, this statement presents: a. Consolidated profit for the year. b. The net amount of the income and expenses recognized in Other comprehensive income under items that will not be reclassified to profit or loss. c. The net amount of the income and expenses recognized in Other comprehensive income under items that may be reclassified subsequently to profit or loss. 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 associates or joint ventures accounted for using the equity method, which are presented net. e. Total consolidated recognized income and expense, 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. The amount of the income and expenses relating to entities accounted for using the equity method recognized directly in equity is presented in this statement, irrespective of the nature of the related items, under Entities accounted for using the equity method. The statement presents the items separately by nature, grouping together items that, in accordance with the applicable accounting standards, will not be reclassified subsequently to profit and loss since the requirements established by the corresponding accounting standards are met. |
Statements of changes in total equity | ac) This statement presents all the changes in equity, including those arising from changes in accounting policies and from the correction of errors. Accordingly, this statement presents a reconciliation of the carrying amount at the beginning and end of the year of all the consolidated equity items, and the changes are grouped together on the basis of their nature into the following items: a. Adjustments due to changes in accounting policies and to errors: include the changes in consolidated 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 statement of recognized income and expense. c. Other changes in equity: includes the remaining items recognized in equity, including, inter alia, increases and decreases in capital, distribution of profit, transactions involving own equity instruments, equity-instrument-based payments, transfers between equity items and any other increases or decreases in consolidated equity. |
Consolidated statements of cash flows | ad) The following terms are used in the consolidated statements 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 Group classifies as cash and cash equivalents the balances recognized under Cash, cash balances at Central Banks and other deposits on demand 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. In relation with the cash flows corresponding to the interest received and paid, no significant differences exist between those and the ones registered in the statement of profit or loss. For that reason they are not disaggregated separately in the consolidated cash flow statement: except from those corresponding to cash flow liabilities of the financing activities which, although they are not significant, have been disaggregated in Note 23.b. Also, dividends received and delivered by the Group are detailed in Notes 4, 28 and 40, including dividends paid to minority interests (non-controlling interests). |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting policies | |
Schedule of estimated effect on the consolidated equity attributable to the Group and on consolidated profit of a 1% change in the euro against the corresponding currency | The estimated effect on the consolidated equity attributable to the Group and on consolidated profit of a 1% appreciation of the euro against the corresponding currency is as follows: Millions of euros Effect on consolidated equity Effect on consolidated profit Currency 2017 2016 2015 2017 2016 2015 U.S. dollar (157.9) (187.1) (167.2) (1.4) (4.5) (8.7) Chilean peso (29.0) (27.9) (23.7) (1.8) (4.2) (5.0) Pound sterling (176.6) (184.9) (194.2) (3.1) (10.0) (13.0) Mexican peso (16.0) (16.2) (19.7) (1.2) (5.4) (5.9) Brazilian real (93.1) (122.3) (93.1) (6.5) (6.3) (13.6) Polish zloty (34.5) (31.5) (32.8) (1.5) (3.3) (3.9) Similarly, the estimated effect on the Group’s consolidated equity and on consolidated profit of a 1% depreciation of the euro against the corresponding currency is as follows: Millions of euros Effect on consolidated equity Effect on consolidated profit Currency 2017 2016 2015 2017 2016 2015 U.S. dollar 161.1 190.8 170.5 1.5 4.5 8.8 Chilean peso 29.6 28.4 24.1 1.8 4.3 5.1 Pound sterling 180.2 188.7 198.2 3.2 10.2 13.2 Mexican peso 16.3 16.5 20.1 1.2 5.5 6.0 Brazilian real 95.0 124.7 94.9 6.6 6.5 13.8 Polish zloty 35.2 32.1 33.4 1.5 3.3 4.0 |
Summary of fair values of financial assets and liabilities | Millions of euros 2017 2016 2015 Published Published Published price price price quotations Internal quotations Internal quotations Internal in active Models in active Models in active Models Markets (Level 2 Markets (Level 2 Markets (Level 2 (Level 1) and 3) Total (Level 1) and 3) Total (Level 1) and 3) Total Financial assets held for trading 58,215 67,243 125,458 64,259 83,928 148,187 65,849 80,497 146,346 Financial assets designated at fair value through profit or loss 3,823 30,959 34,782 3,220 28,389 31,609 3,244 41,799 45,043 Financial assets available-for-sale (1) 113,258 18,802 132,060 89,563 25,862 115,425 92,284 27,962 120,246 Hedging derivatives (assets) — 8,537 8,537 216 10,161 10,377 271 7,456 7,727 Financial liabilities held for trading 21,828 85,796 107,624 20,906 87,859 108,765 17,058 88,160 105,218 Financial liabilities designated at fair value through profit or loss 769 58,847 59,616 — 40,263 40,263 — 54,768 54,768 Hedging derivatives (liabilities) 8 8,036 8,044 9 8,147 8,156 400 8,537 8,937 Liabilities under insurance contracts — 1,117 1,117 — 652 652 — 627 627 (1) In addition to the financial instruments measured at fair value shown in the foregoing table, at December 31, 2017, 2016 and 2015, the Group held equity instruments classified as Financial assets available-for-sale and carried at cost amounting to €1,211 million, €1,349 million and €1,790 million, respectively (see Note 51.c). |
Schedule of financial instruments at fair value whose measurement was based on internal models (Levels 2 and 3) | Millions of euros Fair values calculated using internal models at 12/31/17 Level 2 Level 3 Valuation techniques Main assumptions ASSETS: 124,178 1,363 Financial assets held for trading 66,806 437 Credit institutions 1,696 — Present Value Method Yield curves, FX market prices Customers (a) 8,815 — Present Value Method Yield curves, FX market prices Debt and equity instruments 335 32 Present Value Method Yield curves, HPI, FX market prices Derivatives 55,960 405 Swaps 44,766 189 Present Value Method, Gaussian Copula (b) Yield curves, FX market prices, HPI, Basis, Liquidity Exchange rate options 463 5 Black-Scholes Model Yield curves, Volatility surfaces, FX market prices, Liquidity Interest rate options 4,747 162 Black's Model, multifactorial advanced models interest rate Yield curves, Volatility surfaces, FX market prices, Liquidity Interest rate futures 2 — Present Value Method Yield curves, FX market prices Index and securities options 1,257 5 Black-Scholes Model Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI Other 4,725 44 Present Value Method, Advanced stochastic volatility models and other Yield curves, Volatility surfaces, FX and EQ market prices, Dividends, Correlation, Liquidity, Others Hedging derivatives 8,519 18 Swaps 7,896 18 Present Value Method FX market prices, Yield curves, Basis Exchange rate options — — Black-Scholes Model Yield curves, Volatility surfaces, FX market prices, Liquidity Interest rate options 13 — Black’s Model FX market prices, Yield curves, Volatility surfaces Other 610 — Present Value Method, Advanced stochastic volatility models and other Yield curves, Volatility surfaces, FX market prices, Credit, Liquidity, Others Financial assets designated at fair value through profit or loss 30,677 282 Credit institutions 9,889 — Present Value Method Yield curves, FX market prices Customers (c) 20,403 72 Present Value Method Yield curves, FX market prices, HPI Debt and equity instruments 385 210 Present Value Method Yield curves, FX market prices Financial assets available-for-sale 18,176 626 Debt and equity instruments 18,176 626 Present Value Method Yield curves, Volatility surfaces, FX & EQ Dividends, Credit, Others LIABILITIES: 153,600 196 Financial liabilities held for trading 85,614 182 Central banks 282 — Present Value Method Yield curves, FX market prices Credit institutions 292 — Present Value Method Yield curves, FX market prices Customers 28,179 — Present Value Method Yield curves, FX market prices Debt securities issues — — Derivatives 56,860 182 Swaps 45,041 100 Present Value Method, Gaussian Copula (b) Yield curves, FX market prices, Basis, Liquidity, HPI Exchange rate options 497 9 Black-Scholes Model Yield curves, Volatility surfaces, FX market prices, Liquidity Interest rate options 5,402 19 Black's Model, multifactorial advanced models interest rate Yield curves, Volatility surfaces, FX market prices, Liquidity Index and securities options 1,527 41 Black-Scholes Model Yield curves, FX market prices Interest rate and equity futures 1 — Black's Model Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI Other 4,392 13 Present Value Method, Advanced stochastic volatility models and other Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI Short positions 1 — Present Value Method Yield curves ,FX & EQ market prices, Equity Hedging derivatives 8,029 7 Swaps 7,573 7 Present Value Method Yield curves ,FX & EQ market prices, Basis Exchange rate options — — Interest rate options 287 — Black’s Model Yield curves , Volatility surfaces, FX market prices, Liquidity Other 169 — Present Value Method, Advanced stochastic volatility models and other Yield curves , Volatility surfaces, FX market prices, Liquidity, Other Financial liabilities designated at fair value through profit or loss 58,840 7 Present Value Method Yield curves, FX market prices Liabilities under insurance contracts 1,117 — See Note 15 Millions of euros Fair values calculated using internal models at 12/31/16 12/31/15 Level 2 Level 3 Level 2 Level 3 Valuation techniques ASSETS: 146,991 1,349 155,233 2,481 Financial assets held for trading 83,587 341 79,547 950 Credit institutions 3,220 — 1,352 — Present Value Method Customers (a) 9,504 — 6,081 — Present Value Method Debt and equity instruments 798 40 650 43 Present Value Method Derivatives 70,065 301 71,464 907 Swaps 53,499 55 52,904 54 Present Value Method, Gaussian Copula (b) Exchange rate options 524 2 1,005 — Black-Scholes Model Interest rate options 5,349 173 8,276 619 Black's Model, Heath-Jarrow- Morton Model Interest rate futures 1,447 — 84 — Present Value Method Index and securities options 1,725 26 1,585 120 Black-Scholes Model Other 7,521 45 7,610 114 Present Value Method, Monte Carlo simulation and others Hedging derivatives 10,134 27 7,438 18 Swaps 9,737 27 6,437 18 Present Value Method Exchange rate options — — — — Black-Scholes Model Interest rate options 13 — 19 — Black’s Model Other 384 — 982 — N/A Financial assets designated at fair value through profit or loss 28,064 325 41,285 514 Credit institutions 10,069 — 26,403 — Present Value Method Customers (c) 17,521 74 14,213 81 Present Value Method Debt and equity instruments 474 251 669 433 Present Value Method Financial assets available-for-sale 25,206 656 26,963 999 Debt and equity instruments 25,206 656 26,963 999 Present Value Method LIABILITIES: 136,835 86 151,768 324 Financial liabilities held for trading 87,790 69 87,858 302 Central banks 1,351 — 2,178 — Present Value Method Credit institutions 44 — 76 — Present Value Method Customers 9,996 — 9,187 — Present Value Method Debt securities issues — — — — Derivatives 73,481 69 74,893 302 Swaps 57,103 1 55,055 1 Present Value Method, Gaussian Copula (b) Exchange rate options 413 — 901 — Black-Scholes Model Interest rate options 6,485 21 9,240 194 Black's Model, Heath-Jarrow- Morton Model Index and securities options 1,672 46 2,000 107 Black-Scholes Model Interest rate and equity futures 1,443 — 101 — Present Value Method Other 6,365 1 7,596 — Present Value Method, Monte Carlo simulation and others Short positions 2,918 — 1,524 — Present Value Method Hedging derivatives 8,138 9 8,526 11 Swaps 6,676 9 7,971 11 Present Value Method Exchange rate options — — — — Interest rate options 10 — 12 — Black’s Model Other 1,452 — 543 N/A Financial liabilities designated at fair value through profit or loss 40,255 8 54,757 11 Present Value Method Liabilities under insurance contracts 652 — 627 — See Note 15 (a) Includes mainly short-term loans and reverse repurchase agreements with corporate customers (mainly brokerage and investment companies). (b) Includes credit risk derivatives with a net fair value of EUR zero million at December 31, 2017 (December 31, 2016 and 2015: net fair value of EUR-1 million and €46 million, respectively). These assets and liabilities are measured using the Standard Gaussian Copula Model. (c) Includes home mortgage loans to financial institutions in the UK (which are regulated and partly financed by the Government). The fair value of these loans was obtained using observable market variables, including current market transactions with similar amounts and collateral facilitated by the UK Housing Association. Since the Government is involved in these financial institutions, the credit risk spreads have remained stable and are homogeneous in this sector. The results arising from the valuation model are checked against current market transactions. |
Schedule of effect on fair value of financial instruments classified as Level 3 of a reasonable change in the assumptions used in the valuation | Impacts (in millions of euros) Portfolio / Instrument Weighted Unfavorable Favorable (Level 3) Valuation technique Main unobservable inputs Range average scenario scenario Financial assets held for trading Derivatives Present Value Method Curves on TAB indices (*) (a) (a) (0.2) Long-term volatility in MXN (a) (a) (0.1) Present Value Method, Modified Black-Scholes Model HPI forward growth rate 0% ‑ 5% (25.9) HPI spot rate n/a (**) (9.4) FX Volatility in long term 11% ‑ 21% (1.8) Standard Gaussian Copula Model Probability of default 0% ‑ 5% (2.4) Reversal to the average interest rate (2%) ‑ 2% (1.1) Other financial assets designated at fair value through profit or loss Customers Probability-weighted set (per forecast mortality rates) of European HPI options, using the Black-Scholes model HPI forward growth rate 0% ‑ 5% (6.7) 6.3 Debt and equity instruments Probability-weighted set (per forecast mortality rates) of HPI forwards, using the present value model HPI forward growth rate 0% ‑ 5% (7.6) HPI spot rate n/a (**) (12.5) Financial assets available-for-sale Debt and equity instruments Present Value Method and other Default and prepayment rates, cost of capital, long-term earnings growth rate (a) (a) (3.0) 3.0 Litigation contingencies 0% ‑ 100% (22.0) 11.8 Financial liabilities held for trading Derivatives Present Value Method, Modified Black-Scholes Model HPI forward growth rate 0% ‑ 5% (9.4) 8.1 HPI spot rate n/a (**) (9.2) 10.0 Curves on TAB indices (*) (a) (a) — — Advanced multi-factor interest rate models Mean reversion of interest rates (2%) ‑ 2% (0.6) 0.6 Hedging derivatives (liabilities) Derivatives Advanced multi-factor interest rate models Mean reversion of interest rates (***) — — Financial liabilities designated at fair value through profit or loss — — — — (b) (b) (*) TAB: “Tasa Activa Bancaria” (Active Bank Rate). Average interest rates on 30‑, 90‑, 180‑ and 360‑day deposits published by the Chilean Association of Banks and Financial Institutions (ABIF) in nominal currency (Chilean peso) and in real terms, adjusted for inflation (in Chilean unit of account (Unidad de Fomento - UF)). (**) There are national and regional HPIs. The HPI spot value is the weighted average of the indices that correspond to the positions of each portfolio. The impact reported is in response to a 10% shift. (***) Theoretical average value of the parameter. The change made for the favorable scenario is from 0.0001 to 0.03. An unfavorable scenario was not considered as there was no margin for downward movement from the parameter’s current level. (a) The exercise was conducted for the unobservable inputs described in the main unobservable inputs column under probable scenarios. The range and weighted average value used are not shown because the aforementioned exercise was conducted jointly for various inputs or variants thereof (e.g. the TAB input comprises vector-time curves, for which there are also nominal yield curves and inflation-indexed yield curves), and it was not possible to break down the results separately by type of input. In the case of the TAB curve the gain or loss is reported for changes of +/‑100 b.p. for the total sensitivity to this index in Chilean pesos and UFs. The same applies for interest rates in MXN (Mexican peso). (b) The Group calculates the potential effect on the valuation of each of these instruments on a joint basis, irrespective of whether their individual value is positive (asset) or negative (liability), and discloses the joint effect associated with the corresponding instruments classified on the asset side of the consolidated balance sheet. |
Schedule of changes in financial instruments classified as Level 3 | 2016 Changes 2017 Fair value Changes in fair Changes in Fair value calculated using value fair value calculated using internal models recognized in recognized Level internal models Millions of euros (Level 3) Purchases Sales Issues Settlements profit or loss in equity reclassifications Other (Level 3) Financial assets held for trading 341 45 (21) — — (129) — 200 1 437 Debt and equity instruments 40 — (7) — — (1) — — — 32 Derivatives 301 45 (14) — — (128) — 200 1 405 Swaps 55 1 (6) — — (59) — 200 (2) 189 Exchange rate options 2 5 — — — (2) — — — 5 Interest rate options 173 — — — — (11) — — — 162 Index and securities options 26 — (1) — — (18) — — (2) 5 Other 45 39 (7) — — (38) — — 5 44 Hedging derivatives (Assets) 27 — (2) — — (7) — — — 18 Swaps 27 — (2) — — (7) — — — 18 Financial assets designated at fair value through profit or loss 325 — (9) — — (20) — — (14) 282 Loans and advances to customers 74 — (2) — — 3 — — (3) 72 Debt instruments 237 — (7) — — (21) — — (10) 199 Equity instruments 14 — — — — (2) — — (1) 11 Financial assets available-for-sale 656 1 (239) — (5) — 59 (6) 160 626 TOTAL ASSETS 1,349 46 (271) — (5) (156) 59 194 147 1,363 Financial liabilities held for trading 69 33 (3) — — (38) — 126 (5) 182 Derivatives 69 33 (3) — — (38) — 126 (5) 182 Swaps 1 — — — — (26) — 126 (1) 100 Exchange rate options — 21 — — — (11) — — (1) 9 Interest rate options 21 — — — — (2) — — — 19 Index and securities options 46 — (3) — — — — — (2) 41 Other 1 12 — — — 1 — — (1) 13 Hedging derivatives (Liabilities) 9 — — — — (2) — — — 7 Swaps 9 — — — — (2) — — — 7 Financial liabilities designated at fair value through profit or loss 8 — — — — — — — (1) 7 TOTAL LIABILITIES 86 33 (3) — — (40) — 126 (6) 196 2015 Changes 2016 Fair value Changes in fair Changes in Fair value calculated using value fair value calculated using internal models recognized in recognized Level internal models Millions of euros (Level 3) Purchases Sales Issues Settlements profit or loss in equity reclassifications Other (Level 3) Financial assets held for trading 950 — (157) — — 52 — (489) (15) 341 Debt and equity instruments 43 — (5) — — 3 — — (1) 40 Derivatives 907 — (152) — — 49 — (489) (14) 301 Swaps 54 — — — — (3) — — 4 55 Exchange rate options — — — — — 2 — — — 2 Interest rate options 619 — (52) — — 39 — (433) — 173 Index and securities options 120 — (30) — — (3) — (56) (5) 26 Other 114 — (70) — — 14 — — (13) 45 Hedging derivatives (Assets) 18 — (4) — — 13 — — — 27 Swaps 18 — (4) — — 13 — — — 27 Financial assets designated at fair value through profit or loss 514 — (7) — (104) 6 — (2) (82) 325 Loans and advances to customers 81 — — — — 5 — — (12) 74 Debt instruments 283 — (7) — — 1 — — (40) 237 Equity instruments 150 — — — (104) — — (2) (30) 14 Financial assets available-for-sale 999 37 (263) — (28) — (11) (29) (49) 656 TOTAL ASSETS 2,481 37 (431) — (132) 71 (11) (520) (146) 1,349 Financial liabilities held for trading 302 — (34) — — 10 — (199) (10) 69 Derivatives 302 — (34) — — 10 — (199) (10) 69 Swaps 1 — — — — — — — — 1 Interest rate options 194 — (19) — — 1 — (155) — 21 Index and securities options 107 — (15) — — 8 — (44) (10) 46 Other — — — — — 1 — — — 1 Hedging derivatives (Liabilities) 11 — (3) — — 1 — — — 9 Swaps 11 — (3) — — 1 — — — 9 Financial liabilities designated at fair value through profit or loss 11 — — — — — — — (3) 8 TOTAL LIABILITIES 324 — (37) — — 11 — (199) (13) 86 2014 Changes 2015 Fair value Changes in fair Changes in Fair value calculated using value fair value calculated using internal models recognized in recognized Level internal models Millions of euros (Level 3) Purchases Sales Issues Settlements profit or loss in equity reclassifications Other (Level 3) Financial assets held for trading 1,191 — (272) — — 24 — (2) 9 950 Debt and equity instruments 85 — (38) — — (3) — (2) 1 43 Derivatives 1,106 — (234) — — 27 — — 8 907 Swaps 116 — (63) — — 2 — — (1) 54 Interest rate options 768 — (119) — — (28) — — (2) 619 Index and securities options 111 — (45) — — 51 — — 3 120 Other 111 — (7) — — 2 — — 8 114 Hedging derivatives (Assets) — — — — — 1 — 17 — 18 Swaps — — — — — 1 — 17 — 18 Financial assets designated at fair value through profit or loss 680 7 (47) — — (64) — — (62) 514 Loans and advances to customers 78 — (5) — — 2 — — 6 81 Debt instruments and Equity instruments 602 7 (42) — — (66) — — (68) 433 Financial assets available-for-sale 716 18 (75) — (72) — 271 139 2 999 TOTAL ASSETS 2,587 25 (394) — (72) (39) 271 154 (51) 2,481 Financial liabilities held for trading 536 4 (230) — — (15) — — 7 302 Derivatives 536 4 (230) — — (15) — — 7 302 Swaps 49 — (47) — — (1) — — — 1 Interest rate options 294 — (71) — — (30) — — 1 194 Index and securities options 193 4 (112) — — 16 — — 6 107 Hedging derivatives (Liabilities) — — (16) — — 8 — 5 14 11 Swaps — — (16) — — 8 — 5 14 11 Financial liabilities designated at fair value through profit or loss 16 — (9) — — (4) — — 8 11 TOTAL LIABILITIES 552 4 (255) — — (11) — 5 29 324 |
Schedule of financial assets and liabilities offset in consolidated balance sheets | December 31, 2017 Millions of euros Gross amount of financial Net amount of Gross amount liabilities offset financial assets of financial in the balance presented in the Assets assets sheet balance sheet Derivatives 103,740 (37,960) 65,780 Reverse repurchase agreements 56,701 (7,145) 49,556 Total 160,441 (45,105) 115,336 December 31, 2016 Millions of euros Gross amount of financial Net amount of Gross amount liabilities offset financial assets of financial in the balance presented in the Assets assets sheet balance sheet Derivatives 127,679 (45,259) 82,420 Reverse repurchase agreements 53,159 (2,213) 50,946 Total 180,838 (47,472) 133,366 December 31, 2015 Millions of euros Gross amount of financial Net amount of Gross amount liabilities offset financial assets of financial in the balance presented in the Assets assets sheet balance sheet Derivatives 127,017 (42,566) 84,451 Reverse repurchase agreements 59,158 (2,066) 57,092 Total 186,175 (44,632) 141,543 December 31, 2017 Millions of euros Gross amount of financial Net amount of Gross amount assets offset financial liabilities of financial in the balance presented in the Liabilities liabilities sheet balance sheet Derivatives 103,896 (37,960) 65,936 Repurchase agreements 110,953 (7,145) 103,808 Total 214,849 (45,105) 169,744 December 31, 2016 Millions of euros Gross amount of financial Net amount of Gross amount assets offset financial liabilities of financial in the balance presented in the Liabilities liabilities sheet balance sheet Derivatives 127,784 (45,259) 82,525 Repurchase agreements 82,543 (2,213) 80,330 Total 210,327 (47,472) 162,855 December 31, 2015 Millions of euros Gross amount of financial Net amount of Gross amount assets offset financial liabilities of financial in the balance presented in the Liabilities liabilities sheet balance sheet Derivatives 127,917 (42,566) 85,351 Repurchase agreements 97,169 (2,066) 95,103 Total 225,086 (44,632) 180,454 |
Schedule of tangible asset depreciation rates | Average annual rate Buildings for own use 2.0 % Furniture 7.7 % Fixtures 7.0 % Office and IT equipment 25.0 % Leasehold improvements 7.0 % |
Santander Group (Tables)
Santander Group (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banco Popular Espanol, S.A. | |
Disclosure of detailed information about business combination [line items] | |
Disclosure of detailed information about business combinations [text block] | Millions As of June 7, 2017 of euros Cash and balances with central banks 1,861 Financial assets available-for-sale 18,974 Deposits from credit institutions 2,971 Loans and receivables (*) 82,057 Investments 1,815 Intangible assets (*) 133 Tax assets (*) 3,945 Non-current assets held for sale (*) 6,531 Other assets 6,259 Total assets 124,546 Deposits from central banks 28,845 Deposits from credit institutions 14,094 Customer deposits 62,270 Marketable debt securities and other financial liabilities 12,919 Provisions (***) 1,816 Other liabilities 4,850 Total liabilities (**) 124,794 Net assets (248) Purchase consideration — Goodwill 248 (*) - Loans and receivables: In the estimation of their fair value, impairment have been considered for an approximate amount of €3,239 million, considering, among others, the sale process carried out by the Bank. - Foreclosed assets: the valuation, considering the sale process carried out by the company, has meant a reduction in the value of €3,806 million, approximately. - Intangible assets: Includes value reductions amounting to approximately of €2,469 million, mainly recorded under the “Intangible assets - goodwill”. - Deferred tax assets: mainly corresponds to the reduction of the value of negative tax bases and deductions for an approximate amount of €1,711 million. (**) (***) |
BANIF - Banco Internacional do Funchal, S.A. | |
Disclosure of detailed information about business combination [line items] | |
Disclosure of detailed information about business combinations [text block] | Millions of euros Cash and balances with central banks 2,510 Loans and advances to credit institutions 424 Debt instruments 1,824 Loans and advances to customers 5,320 Other assets 218 Total assets 10,296 Deposits from central banks 2,110 Deposits from credit institutions 1,052 Customer deposits 4,430 Marketable debt securities 1,697 Other liabilities 574 Total liabilities 9,863 Net asset value 433 Consideration paid 150 Negative Goodwill on the acquisition 283 |
Distribution of the Bank's pr66
Distribution of the Bank's profit, shareholder remuneration scheme and earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Distributions, Shareholder Remuneration and Earnings Per Share [Abstract] | |
Schedule of proposed distribution of net profit | Millions of euros First and third interim dividends and final dividend 2,898 Acquisition, with a waiver of exercise, of bonus share rights from the shareholders which, under the Santander Dividendo Elección scrip dividend scheme, opted to receive in cash remuneration equivalent to the second interim dividend 99 2,997 Of which: Approved at December 31, 2017 (*) 2,029 Final dividend 968 To voluntary reserves 9 Net profit for the year 3,006 (*) |
Earnings per share basic and diluted | Basic earnings per share are calculated by dividing the net profit attributable to the Group (adjusted by the after-tax amount of the remuneration of contingently convertible preference shares recognized in equity - See Note 23) and the capital perpetual preference shares, if applicable, by the weighted average number of ordinary shares outstanding during the year, excluding the average number of treasury shares held in the year. Accordingly: 2017 2016 2015 Profit attributable to the Parent (millions of euros) 6,619 6,204 5,966 Remuneration of contingently convertible preference shares (CCP) (millions of euros) (Note 23) (395) (334) (276) Dilutive effect of changes in profit for the year arising from potential conversion of ordinary shares — — — 6,224 5,870 5,690 Of which: Profit or Loss from discontinued operations (non-controlling interest net) (millions of euros) — — — Profit or Loss from continuing operations (net of non-controlling interests and CCP) (millions of euros) 6,224 5,870 5,690 Weighted average number of shares outstanding 15,394,458,789 14,656,359,963 14,349,578,605 Adjusted number of shares 15,394,458,789 14,656,359,963 14,349,578,605 Basic earnings per share (euros) 0.404 0.401 0.397 Basic earnings per share from discontinued operations (euros) 0.000 Basic earnings per share from continuing operations (euros) 0.404 0.401 0.397 ii. Diluted earnings per share Diluted earnings per share are calculated by dividing the net profit attributable to the Group (adjusted by the after-tax amount of the remuneration of contingently convertible preference shares recognized in equity - See Note 23) and the capital perpetual preference shares, if applicable, by the weighted average number of ordinary shares outstanding during the year, excluding the average number of treasury shares and adjusted for all the dilutive effects inherent to potential ordinary shares (share options, and convertible debt instruments). Accordingly, diluted earnings per share were determined as follows: 2017 2016 2015 Profit attributable to the Parent (millions of euros) 6,619 6,204 5,966 Remuneration of contingently convertible preference shares (CCP) (millions of euros) (Note 23) (395) (334) (276) Dilutive effect of changes in profit for the year arising from potential conversion of ordinary shares — — — 6,224 5,870 5,690 Of which: Profit (Loss) from discontinued operations (net of non-controlling interests) (millions of euros) — — Profit from continuing operations (net of non-controlling interests and CCP) (millions of euros) 6,224 5,870 5,690 Weighted average number of shares outstanding 15,394,458,789 14,656,359,963 14,349,578,605 Dilutive effect of options/rights on shares 50,962,887 45,754,981 27,227,606 Adjusted number of shares 15,445,421,676 14,702,114,944 14,376,806,211 Diluted earnings per share (euros) 0.403 0.399 0.396 Diluted earnings per share from discontinued operations (euros) 0.00 Diluted earnings per share from continuing operations (euros) 0.403 0.399 0.396 |
Remuneration and other benefi67
Remuneration and other benefits paid to the Bank's directors and senior managers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Directors | |
Related party transactions key personnel | |
Schedule summarising annual emolument | Euros 2017 2016 Members of the Board of Directors 87,500 85,000 Members of the executive committee 170,000 170,000 Members of the audit committee 40,000 40,000 Members of the appointments committee 25,000 25,000 Members of the remuneration committee 25,000 25,000 Members of the risk supervision, regulation and compliance oversight committee 40,000 40,000 Chairman of the audit committee 50,000 50,000 Chairman of the appointments committee 50,000 50,000 Chairman of the remuneration committee 50,000 50,000 Chairman of the risk, regulation and compliance oversight committee 50,000 50,000 Coordinating director 110,000 110,000 Non-executive deputy chairman 30,000 30,000 |
Schedule summarising attendance fees | Euros Meeting attendance fees 2017 2016 Board of Directors 2,600 2,500 Audit committee and risk supervision, regulation and compliance oversight committee 1,700 1,700 Other committees (except the executive committee) 1,500 1,500 |
Schedule summarising short-term remuneration (excluding remuneration subject to long-term objectives) | Thousands of euros 2017 2016 Bylaw-stipulated emoluments Short-term and deferred (not subject to long-term goals) salaries of Annual emolument executive directors Risk supervision, regulation and Attendance Variable – compliance fees Immediate payment Deferred variable Other Executive Audit Appointments Remuneration oversight And In In In In remuneration Directors Board committee committee committee committee committee commissions Fixed cash shares cash shares Total (a) Total Total Mrs. Ana Botín-Sanz de Sautuola y O’Shea 88 170 — — — — 44 2,500 1,370 1,370 822 822 6,884 689 7,874 7,279 Mr. José Antonio Álvarez Álvarez 88 170 — — — — 44 2,000 916 916 550 550 4,932 1,203 6,436 6,006 Mr. Rodrigo Echenique Gordillo 88 170 — — — — 38 1,500 714 714 428 428 3,785 201 4,281 3,824 Mr. Matías Rodríguez Inciarte (1) 80 155 — — — — 41 1,568 698 698 419 419 3,803 188 4,266 4,474 Mr. Guillermo de la Dehesa Romero 118 170 — 25 25 40 95 — — — — — — — 473 461 Mr. Bruce Carnegie-Brown 378 170 — 25 25 40 94 — — — — — — — 731 721 Mr. Ignacio Benjumea Cabeza de Vaca 88 170 — 25 25 40 97 — — — — — — 106 550 945 Mr. Francisco Javier Botín-Sanz de Sautuola y O’Shea (2) 88 — — — — — 36 — — — — — — — 124 115 Mrs. Sol Daurella Comadrán 88 — — 25 25 — 69 — — — — — — — 207 191 Mr. Carlos Fernández González 88 — 40 25 — 40 93 — — — — — — — 285 254 Mrs. Esther Giménez-Salinas i Colomer 88 — — — — 21 54 — — — — — — — 162 122 Mr. Ángel Jado Becerro de Bengoa (3) — — — — — — — — — — — — — — — 231 Mrs. Belén Romana García 138 — 40 — — 40 80 — — — — — — — 297 219 Mrs. Isabel Tocino Biscarolasaga (4) 80 155 36 — 23 36 87 — — — — — — — 418 442 Mr. Juan Miguel Villar Mir 88 — 19 — — 19 44 — — — — — — — 170 235 Mr. Homaira Akbari (5) 88 — 21 — — — 51 — — — — — — — 159 32 Mr. Ramiro Mato García Ansorena (6) 8 15 4 — — 4 6 — — — — — — — 36 — Total 2017 1,675 1,345 160 125 123 280 972 7,568 3,699 3,699 2,219 2,219 19,404 2,387 26,470 — Total 2016 1,645 1,360 190 143 143 277 859 7,710 3,340 3,340 2,004 2,004 18,398 2,536 25,551 (1) Ceased to be a member of the Board on November 28, 2017. This table shows the remuneration information until his ceased as a member of the board. The remuneration information for his performance as executive vice president since November 28, 2017 is included in the corresponding section. (2) All the amounts received were repaid to the Fundación Marcelino Botín. (3) Ceased to be a member of the board on September 27, 2016. (4) Ceased to be a member of the board on November 28, 2017. (5) Appointed director effective from September 27, 2016. (6) Appointed to be a member of the board. (a) Includes, inter alia, the life and medical insurance costs borne by the Group relating to Bank directors. |
Schedule summarising remuneration related to multi-annual variable objectives | Thousands of euros 2017 2016 Variable subject to Long-term objectives(2) In cash In shares Total Total (2) Mrs. Ana Botín-Sanz de Sautuola y O’Shea 863 863 1,726 1,518 Mr. José Antonio Álvarez Álvarez 577 577 1,154 1,026 Mr. Rodrigo Echenique Gordillo 450 450 900 760 Mr. Matías Rodríguez Inciarte(1) 440 440 880 904 Total 2,330 2,330 4,660 4,208 (1) Ceased to be a member of the board on November 28, 2017. The remuneration information for his performance as executive vice president is included in the corresponding section. (2) Corresponds with the fair value of the maximum amount they are entitled to in a total of 3 years: 2021, 2022 and 2023, subject to conditions of continued service, with the exceptions provided, and to the non-applicability of “malus” clauses and achievement of the objectives established. The fair value has been measured on the date of the concession of the scheme taking into account several possible behavioral assumptions (see Note 47). |
Schedule summarising remuneration related to welfare system | Thousands of euros 2017 2016 Ms. Ana Botín-Sanz de Sautuola y O’Shea (1) 45,798 43,156 Mr. José Antonio Álvarez Álvarez 16,151 15,107 Mr. Rodrigo Echenique Gordillo (2) 13,957 14,294 Mr. Matías Rodríguez Inciarte (3) — 48,230 75,906 120,787 (1) Includes the amounts relating to the period of provision of services at Banesto, externalized with another insurance company. (2) Executive director since January 16, 2015 Mr. Rodrigo Echenique Gordillo doesn´t participate in the pension system and the right to the bank to make contributions in its favor in this regard. The amount at December 31, 2017 and 2016, which correspond to him prior to his appointment as director of the bank executive director. (3) Ceased to be a member of the Board on November 28, 2017. The balance of his pensions rights as of December 31, 2017 is included in the Senior Managers section. |
Schedule summarising remuneration related to provisions for retirement pensions and supplementary benefits | Thousands of euros 2017 2016 Ms. Ana Botín-Sanz de Sautuola y O’Shea 2,707 2,521 Mr. José Antonio Álvarez Álvarez 2,456 2,249 5,163 4,770 |
Schedule summarising remuneration related to life and disability insurance | Insured capital (Thousands of euros) 2017 2016 Ms. Ana Botín-Sanz de Sautuola y O’Shea 7,500 7,500 Mr. José Antonio Álvarez Álvarez 6,000 6,000 Mr. Rodrigo Echenique Gordillo 4,500 4,500 Mr. Matías Rodríguez Inciarte (1) — 5,131 18,000 23,131 (1) Ceased to be member of the board on November 28, 2017. |
Schedule summarising the cash paid for awards | Thousands of euros 2017 2016 Cash Cash paid paid (one-third of (one-third of deferred deferred Cash paid payment Cash paid payment (immediate 2015, 2014 (immediate 2014, 2013 payment 2016 and payment 2015 and variable 2013 variable variable 2012 variable remuneration) remuneration) remuneration) remuneration) Ms. Ana Botín-Sanz de Sautuola y O’Shea 1,205 825 840 826 Mr. José Antonio Álvarez Álvarez (1) 814 461 558 448 Mr. Rodrigo Echenique Gordillo 603 124 414 — Mr. Matías Rodríguez Inciarte 718 690 574 784 3,339 2,099 2,386 2,058 (1) Includes paid cash corresponding to your participation in the corresponding plans during the time as executive vice president. |
Schedule summarising direct risk exposure of loans to related parties | Thousands of euros 2017 2016 Loans Loans and and credits Guarantees Total credits Guarantees Total Ms. Ana Botín-Sanz de Sautuola y O’Shea 10 — 10 — — — Mr. José Antonio Álvarez 9 — 9 9 — 9 Mr. Bruce Carnegie-Brown — — — 2 — 2 Mr. Matías Rodríguez Inciarte (1) — — — — — — Mr. Rodrigo Echenique Gordillo 22 — 22 21 — 21 Mr. Javier Botín-Sanz de Sautuola y O'Shea 17 — 17 4 — 4 Mrs. Sol Daurella Comadran 27 — 27 25 — 25 Mr. Ignacio Benjumea Cabeza de Vaca — — — 2 — 2 Mrs. Belen Romana Garcia 3 — 3 — — — Mr. Guillermo de la Dehesa Romero — — — 11 — 11 88 — 88 — (1) Ceased to be a board director on November 28, 2017. On December 31, 2017, to loans and credits amounted to €13 thousands (€16 thousands in 2016). |
Schedule summarising declaration of equity interests held by key personnel | Number of Administrator Denomination shares Functions Dª. Ana Botín-Sanz de Sautuola y O’Shea Bankinter, S.A. * 5,179,932 — Mr. Bruce Neil Carnegie-Brown Moneysupermarket.com Group plc — President (1) Lloyd’s of London Ltd — President (1) D. Rodrigo Echenique Gordillo Mitsubishi UFJ Financial Group * 17,500 — — D. Guillermo de la Dehesa Romero Goldman, Sachs & Co. (The Goldman Sachs Group, Inc.) 19,546 — D. Javier Botín-Sanz de Sautuola y O’Shea Bankinter, S.A. 6,929,853 — JB Capital Markets Sociedad de Valores, S.A. 2,077,198 President Dª. Esther Giménez-Salinas i Colomer Gawa Capital Partners, S.L. — Manager officer (1) D. Ramiro Mato García-Ansorena BNP Paribas 13,806 — (*) (1) Non-executive. |
Directors | ILP | |
Related party transactions key personnel | |
Schedule summarising shares assigned for deferred variable remuneration plans | Maximum number of (1) 2017 Ms. Ana Botín-Sanz de Sautuola y O’Shea 187,070 Mr. José Antonio Álvarez Álvarez 126,279 Mr. Rodrigo Echenique Gordillo 93,540 Mr. Matías Rodríguez Inciarte (2) 145,922 406,899 (1) A proposal from the remuneration committee, the board of directors resolved to increase the number of shares to mitigate the dilutive effect of the capital increase with pre-emptive subscription rights of July 2017 as described in iv) below. The actions derived from this adjustment are 5,967 shares. (2) Ceased to be member of the board on November 28, 2017. The maximum number of shares corresponding to the plan held as of December 31, 2017 was 145,922 shares, including those approved to mitigate the dilutive effect of the capital increase with pre-emptive subscription rights of July 2017. |
Directors | Deferred variable compensation plans | |
Related party transactions key personnel | |
Schedule summarising shares assigned for deferred variable remuneration plans | Variable Maximum Shares delivered Shares delivered Shares delivered Shares delivered Variable Maximum Shares delivered Shares delivered Shares Shares remuneration number of in 2016 in 2016 in 2016 in 2016 remuneration number in 2017 in 2017 Shares delivered Delivered arising form 2017 Maximum shares to be (immediate (deferred (deferred (deferred 2016 (maximum of shares to be (immediate (deferred in 2017 (deferred in 2017 (deferred the capital (maximum number of shares delivered at payment 2015 payment 2014 payment 2013 payment 2012 number of delivered at payment 2016 payment 2015 payment 2014 payment 2013 increase of number of to be delivered at January 1, variable variable variable variable shares to be December 31, variable variable variable variable July shares to be December 31, Share-based variable remuneration 2016 remuneration) remuneration) remuneration) remuneration) delivered) 2016 remuneration) remuneration) remuneration) remuneration) 2017 delivered) (1) 2017 (4) 2012 variable remuneration Ms. Ana Botín-Sanz Sautuola y O’Shea 34,958 (34,958) Mr. José Antonio Álvarez Álvarez (2) 24,046 (24,046) Mr. Matías Rodríguez Inciarte 41,529 (41,529) 100,533 (100,533) 2013 variable remuneration Ms. Ana Botín-Sanz Sautuola y O’Shea 66,241 (33,121) 33,120 (33,120) Mr. José Antonio Álvarez Álvarez (2) 39,121 (19,560) 19,561 (19,561) Mr. Matías Rodríguez Inciarte 69,093 (34,546) 34,547 (34,547) 174,455 (87,227) 87,228 (87,228) 2014 variable remuneration Ms. Ana Botín-Sanz Sautuola y O’Shea 182,444 (60,814) 121,630 (60,814) 905 61,721 Mr. José Antonio Álvarez Álvarez (2) 78,726 (26,242) 52,484 (26,242) 390 26,632 Mr. Matías Rodríguez Inciarte (3) 139,088 (46,363) 92,725 (46,363) 690 47,052 400,258 (133,419) 266,839 (133,419) 1,985 135,405 2015 variable remuneration Ms. Ana Botín-Sanz Sautuola y O’Shea 528,834 (211,534) 317,300 (63,460) 3,777 257,617 Mr. José Antonio Álvarez Álvarez (2) 351,523 (140,609) 210,914 (42,183) 2,511 171,242 Mr. Rodrigo Echenique Gordillo 260,388 (104,155) 156,233 (31,247) 1,860 126,846 Mr. Matías Rodríguez Inciarte 361,118 (144,447) 216,671 (43,334) 2,579 175,916 1,501,863 (600,745) 901,118 (180,224) 10,727 731,621 2016 variable remuneration Ms. Ana Botín-Sanz Sautuola y O’Shea 592,043 592,043 (236,817) 5,286 360,512 Mr. José Antonio Álvarez Álvarez (2) 399,607 399,607 (159,843) 3,568 243,332 Mr. Rodrigo Echenique Gordillo 295,972 295,972 (118,389) 2,643 180,226 Mr. Matías Rodríguez Inciarte 352,455 352,455 (140,982) 3,147 214,620 1,640,077 1,640,077 (656,031) 14,644 998,690 2017 variable remuneration Ms. Ana Botín-Sanz Sautuola y O’Shea 574,375 574,375 Mr. José Antonio Álvarez Álvarez (2) 384,118 384,118 Mr. Rodrigo Echenique Gordillo 299,346 299,346 Mr. Matías Rodríguez Inciarte (3) 292,771 292,771 1,550,610 1,550,610 (1) For each director, 40% of the shares indicated correspond to the short-term variable (or immediate payment). The remaining 60% is deferred for delivery, where appropriate, by fifths in the next five years, the last three being subject to the fulfillment of multiannual objectives. (2) Maximum number of shares resulting from their participation in the corresponding plans during their stage as general manager. (3) Ceased to be a member of the Board on November 28, 2017. The shares corresponding to their variable remuneration between November 28, 2017 and January 2, 2018 as executive vice president on December 2, 2017 including in the Note 5.g. (4) In addition, Mr. Ignacio Benjumea Cabeza de Vaca maintains the right to a maximum of 199,234 shares arising from his participation in the corresponding plans during his term as executive vice president. |
Senior management | |
Related party transactions key personnel | |
Schedule summarising short-term remuneration (excluding remuneration subject to long-term objectives) | Thousands of euros Short-term salaries and deferred remunation Variable remuneration (bonus) - Deferred Immediate variable payment remuneration Number of In In In In Other Year persons Fixed cash shares (2) cash shares remuneration (1) Total 2017 19 17,847 8,879 7,348 2016 18 17,258 8,126 8,126 3,745 3,745 4,430 45,430 (1) Includes other remuneration items such as life insurance premiums and localization aids totaling €692 thousand (2016: €557 thousand). (2) The amount of the immediate payment in shares for 2017 relates to Santander shares 1,430,143 (2016: 1,596,248 Santander shares) and 225,564 shares of Banco Santander Mexico, S.A. (3) Additional, and as a result of the incorporation and compensation agreements of long-term and deferred compensation lost in previous jobs, compensations have been agreed in 2017 for the amount of €4,650 thousand and 648,457 shares of Banco Santander. These compensations are partially subject to deferral and / or recovery in certain cases. |
Schedule summarising remuneration related to multi-annual variable objectives | Thousands of euros Deferred salaries (1) Year Number of people Cash payment Share payment Total 2017 19 2016 18 3,933 3,933 7,866 (1) Relates in 2017 with the fair value of the maximum annual amounts for years 2021, 2022 and 2023 of the second cycle of the deferred conditional variable remuneration plan (2020, 2021 and 2022 for the first cycle of the deferred variable compensation plan linked to annual objectives for the year 2016). |
Schedule summarising shares assigned for deferred variable remuneration plans | Maximum number of shares to be delivered 2017 2016 Deferred conditional variable remuneration plan (2013) — 271,996 Deferred conditional variable remuneration plan (2014) 759,950 Deferred conditional variable remuneration plan (2015) 1,981,670 Performance shares plan ILP (2015) 1,339,506 Deferred conditional variable remuneration plan and linked to objectives (2016) 1,954,431 Deferred conditional variable remuneration plan and linked to objectives (2017) (2) — (1) At the proposal of the remuneration committee, the board of directors approved adjusting the maximum number of shares to mitigate the dilutive effect of the capital increase with pre-emptive subscription rights of July 2017 as described in iv) below. The actions derived from this adjustment are 66,339 shares. (2) Also, they were entitled to a maximum of 225,564 Banco Santander (México) S.A. shares at December 31, 2017. |
Former directors of the bank | |
Related party transactions key personnel | |
Schedule summarising shares assigned for deferred variable remuneration plans | Maximum number of shares to be delivered (1) 2017 2016 Deferred conditional variable remuneration plan (2013) — Deferred conditional variable remuneration plan (2014) Deferred conditional variable remuneration plan (2015) Plan performance shares (ILP 2015) Number of shares delivered 2017 2016 Deferred conditional variable remuneration plan (2012) — Deferred conditional variable remuneration plan (2013) Deferred conditional variable remuneration plan (2014) Deferred conditional variable remuneration plan (2015) (1) At the proposal of the remuneration committee, the board of directors approved adjusting the maximum number of shares to mitigate the dilutive effect of the capital increase with pre-emptive subscription rights of July 2017 as described in iv) below. The actions derived from this adjustment are 3,233 shares. |
Executive vice presidents | |
Related party transactions key personnel | |
Schedule summarising shares assigned for deferred variable remuneration plans | Number of shares delivered 2017 2016 Deferred conditional variable remuneration plan (2012) — 251,445 Deferred conditional variable remuneration plan (2013) 271,996 Deferred conditional variable remuneration plan (2014) 379,978 Deferred conditional variable remuneration plan (2015) — |
Loans and advances to central68
Loans and advances to central banks and credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans and advances to central banks and credit institutions | |
Loans and advances to banks and credit institutions | Millions of euros 2017 2016 2015 CENTRAL BANKS Classification: Financial assets held for trading — — — Financial assets designated at fair value through profit or loss — — — Loans and receivables 26,278 27,973 17,337 26,278 27,973 17,337 Type: Time deposits 17,359 14,445 9,958 Reverse repurchase agreements 8,919 13,528 7,379 Impaired assets — — — Valuation adjustments for impairment — — — Of which risk country — — — 26,278 27,973 17,337 CREDIT INSTITUTIONS Classification: Financial assets held for trading 1,696 3,221 1,352 Financial assets designated at fair value through profit or loss 9,889 10,069 26,403 Loans and receivables 39,567 35,424 37,438 51,152 48,714 65,193 Type: Time deposits 8,169 6,577 7,875 Reverse repurchase agreements 21,765 20,867 37,744 Non- loans advances 21,232 21,281 19,580 Impaired assets 4 4 13 Valuation adjustments for impairment (18) (15) (19) Of which risk country (10) (12) (12) 51,152 48,714 65,193 Currency: Euro 23,286 24,278 42,666 Pound sterling 5,582 4,337 3,684 U.S. dollar 15,325 11,996 14,395 Brazilian reais 28,140 32,013 20,341 Other currencies 5,097 4,063 1,444 TOTAL 77,430 76,687 82,530 |
Debt Instruments (Tables)
Debt Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial assets [line items] | |
Schedule of debt instruments | Millions of euros 2017 2016 2015 Classification: Financial assets held for trading 36,351 48,922 43,964 Financial assets designated at fair value through profit or loss 3,485 3,398 3,717 Financial assets available-for-sale (*) 128,481 111,287 117,187 Loans and receivables 17,543 13,237 10,907 Held-to-maturity investments 13,491 14,468 4,355 199,351 191,312 180,130 Type: Spanish government debt securities (*) 59,186 45,696 45,787 Foreign government debt securities 99,424 103,070 88,346 Issued by financial institutions 12,155 16,874 18,843 Other fixed-income securities 28,299 25,397 27,227 Impaired financial assets 1,017 773 218 Impairment losses (730) (498) (291) 199,351 191,312 180,130 Currency: Euro (*) 93,250 73,791 81,196 Pound sterling 16,203 16,106 10,551 U.S. dollar 25,191 31,401 27,011 Other currencies 65,437 70,512 61,663 Total Gross 200,081 191,810 180,422 Impairment losses (730) (498) (291) 199,351 191,312 180,130 (*) During 2017 the increase produced mainly due to Banco Popular acquisition. |
Schedule of debt instruments by origin of issuer | Millions of euros 2017 2016 2015 Private Public Private Public Private Public fixed-income fixed-income Total % fixed-income fixed-income Total % fixed-income fixed-income Total % Spain 5,272 59,186 64,458 32.33 % 6,153 45,696 51,849 27.10 % 7,387 45,787 53,174 29.52 % United Kingdom 4,339 10,717 15,056 7.55 % 3,531 11,910 15,441 8.07 % 3,746 6,456 10,202 5.66 % Portugal 3,972 7,892 11,864 5.95 % 4,068 7,689 11,757 6.15 % 3,889 9,975 13,864 7.70 % Italy 1,287 7,171 8,458 4.24 % 1,035 3,547 4,582 2.40 % 1,312 4,423 5,735 3.18 % Ireland 3,147 2 3,149 1.58 % 518 — 518 0.27 % 342 — 342 0.19 % Poland 772 6,619 7,391 3.71 % 707 6,265 6,972 3.64 % 802 5,470 6,272 3.48 % Other European countries 7,195 1,733 8,928 4.48 % 7,203 1,736 8,939 4.67 % 7,912 3,133 11,045 6.13 % United States 7,986 11,670 19,656 9.86 % 10,559 13,058 23,617 12.34 % 11,919 9,753 21,672 12.03 % Brazil 4,729 34,940 39,669 19.90 % 5,364 39,770 45,134 23.59 % 5,405 25,588 30,993 17.21 % Mexico 461 9,478 9,939 4.99 % 587 10,628 11,215 5.86 % 723 15,296 16,019 8.89 % Chile 62 4,071 4,133 2.07 % 1,315 3,643 4,958 2.59 % 1,027 2,032 3,059 1.70 % Other American countries 755 913 1,668 0.84 % 782 1,262 2,044 1.07 % 762 1,611 2,373 1.32 % Rest of the world 764 4,218 4,982 2.50 % 724 3,562 4,286 2.24 % 771 4,609 5,380 2.99 % 40,741 158,610 199,351 100 % 42,546 148,766 191,312 100 % 45,997 134,133 180,130 100 % |
Schedule of debt instruments by issuer rating | Millions of euros 2017 2016 2015 Private Public Private Public Private Public fixed-income fixed-income Total % fixed-income fixed-income Total % fixed-income fixed-income Total % AAA 16,239 924 17,163 8.61 % 18,916 1,008 19,924 % 16,975 9,164 26,139 % AA 2,714 23,522 26,236 13.16 % 1,632 29,639 31,271 % 3,452 13,168 16,620 % A 4,373 8,037 12,410 6.23 % 2,928 3,285 6,213 % 7,379 9,120 16,499 % BBB 6,449 91,012 97,461 48.89 % 7,579 66,955 74,534 % 8,011 65,707 73,718 % Below BBB 2,393 35,109 37,502 18.81 % 4,751 47,872 52,623 % 2,575 35,573 38,148 % Unrated 8,573 6 8,579 4.30 % 6,740 7 6,747 % 7,605 1,401 9,006 5.00 % 40,741 158,610 199,351 100 % 42,546 148,766 191,312 100 % 45,997 134,133 180,130 100 % |
Schedule of changes in impairment losses on debt instruments | Millions of euros 2017 2016 2015 Balance at beginning of year 498 291 144 Net impairment losses for the year (*) 348 380 211 Of which: Impairment losses charged to income 386 423 223 Impairment losses reversed with a credit to income (38) (43) (12) Exchange differences and other items (116) (172) (64) Balance at end of year 730 498 291 Of which: By geographical location of risk: European Union 30 40 34 Latin America 700 458 257 (*) Of which: Loans and advances 348 405 92 Financial assets available for sale — (25) 119 |
Schedule of debt instruments pledged as security for certain commitments, by maturity | Millions of euros 2017 More than 12 1 day 1 week 1 month 3 months 6 months 1 year months Total Government debt securities Other debt instruments Total |
Private fixed income | |
Disclosure of financial assets [line items] | |
Schedule of debt instruments | Millions of euros 2017 2016 2015 Securitized mortgage bonds 2,458 1,584 2,110 Other asset-backed bonds 5,992 2,803 3,073 Floating rate debt 13,756 11,818 16,633 Fixed rate debt 18,535 26,341 24,181 Total 40,741 42,546 45,997 |
Equity instruments (Tables)
Equity instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Instruments Abstract | |
Detail, by classification and type, of Equity instruments | Millions of euros 2017 2016 2015 Classification: Financial assets held for trading 21,353 14,497 18,225 Financial assets designated at fair value through profit or loss 933 546 630 Financial assets available-for-sale 4,790 5,487 4,849 27,076 20,530 23,704 Type: Shares of Spanish companies 4,199 3,098 2,479 Shares of foreign companies 20,448 15,342 19,077 Investment fund units and shares 2,429 2,090 2,148 27,076 20,530 23,704 |
Changes in Financial assets available-for-sale - Equity instruments | Millions of euros 2017 2016 2015 Balance at beginning of year 5,487 4,849 5,001 Net additions (disposals) (331) (294) (392) Of which: Bank of Shanghai Co., Ltd. — — 109 Visa Europe, Ltd. — (263) — Valuation adjustment and other items (366) 932 240 Balance at end of year 4,790 5,487 4,849 |
Derivatives (assets and liabi71
Derivatives (assets and liabilities) and Short positions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivatives And Short Positions [Abstract] | |
Schedule by type of inherent risk of fair value of derivatives | Millions of euros 2017 2016 2015 Debit Credit Debit Credit Debit Credit balance balance balance balance balance balance Interest rate risk 38,030 37,582 47,884 48,124 51,576 49,095 Currency risk 16,320 18,014 21,087 23,500 21,924 23,444 Price risk 2,167 2,040 2,599 2,402 2,598 3,343 Other risks 726 256 473 343 626 532 57,243 57,892 72,043 74,369 76,724 76,414 |
Schedule of short positions (liabilities) | Millions of euros 2017 2016 2015 Borrowed securities: Debt instruments 2,447 2,250 3,098 Of which: Santander UK plc 1,557 1,319 1,857 Equity instruments 1,671 1,142 990 Of which: Santander UK plc 1,500 991 905 Short sales: Debt instruments 16,861 19,613 13,274 Of which: Banco Santander, S.A. 8,621 7,472 6,953 Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México 46 1,872 1,290 Banco Santander (Brasil) S.A. 8,188 9,197 4,619 Equity instruments — — — 20,979 23,005 17,362 |
Loans And Advances To Custome72
Loans And Advances To Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans And Advances To Customers Abstract | |
Schedule of loans and advances to customers | Millions of euros 2017 2016 2015 Financial assets held for trading 8,815 9,504 6,081 Financial assets designated at fair value through profit or loss 20,475 17,596 14,293 Loans and receivables 819,625 763,370 770,474 Of which: Disregarding impairment losses 843,559 787,763 796,991 Impairment losses (23,934) (24,393) (26,517) Of which, due to country risk (18) (15) (12) 848,915 790,470 790,848 Loans and advances to customers disregarding impairment losses 872,849 814,863 817,365 |
Schedule of the breakdown of loans and advances to customers | Millions of euros 2017 2016 2015 Loan type and status: Commercial credit 29,287 23,894 18,486 Secured loans 473,936 454,677 481,221 Reverse repurchase agreements 18,864 16,609 12,022 Other term loans 257,441 232,288 217,829 Finance leases 28,511 25,357 22,900 Receivable on demand 6,721 8,102 8,504 Credit cards receivables 21,809 21,363 20,270 Impaired assets 36,280 32,573 36,133 872,849 814,863 817,365 Geographical area: Spain 227,446 161,372 167,856 European Union (excluding Spain) 390,536 379,666 401,315 United States and Puerto Rico 75,777 87,318 88,737 Other OECD countries 74,463 74,157 69,519 Latin America (non-OECD) 88,302 93,207 77,519 Rest of the world 16,325 19,143 12,419 872,849 814,863 817,365 Interest rate formula: Fixed rate 447,788 417,448 407,026 Floating rate 425,061 397,415 410,339 872,849 814,863 817,365 |
Schedule of loans and advances to customers in detail by activity | Millions of euros Secured loans Net exposure Loan-to-value ratio (a) More than More than More than 40% and 60% and 80% and Of which: Of which: Less than less than less than less than Without Property Other or equal or equal to or equal to or equal to More than Total collateral collateral collateral to 40% 60% 80% 100% 100% Public sector 33,008 21,611 8,565 2,832 1,245 2,254 4,719 3,052 127 Other financial institutions (Financial business activity) 35,036 10,930 1,166 22,940 862 887 331 21,347 679 Non-financial corporations and individual entrepreneurs (Non-financial business activity) (broken down by purpose) 288,912 167,960 65,864 55,088 25,599 18,426 14,183 38,049 24,695 Of which: Construction and property development 26,996 2,642 22,849 1,505 9,032 5,745 4,224 2,906 2,447 Civil engineering construction 3,422 2,100 441 881 128 294 158 281 461 Large companies 137,775 98,670 11,729 27,376 5,275 3,823 3,194 15,592 11,221 SMEs and individual entrepreneurs 120,719 64,548 30,845 25,326 11,164 8,564 6,607 19,270 10,566 Households – other (broken down by purpose) 473,075 112,566 318,635 41,874 98,556 45,293 Of which: Residential 308,985 1,762 306,701 522 34,788 Consumer loans 144,846 106,219 2,592 36,035 3,590 4,036 3,150 5,207 22,644 Other purposes 19,244 4,585 9,342 5,317 3,312 2,282 2,003 5,298 1,764 Total (*) 830,031 313,067 394,230 122,734 107,741 Memorandum item Refinanced and restructured transactions (**) 8,494 16,694 10,976 3,495 3,377 3,704 4,431 12,663 (*) In addition, the Group has granted advances to customers amounting to €18,884 million, bringing the total of loans and advances to €848,915 million. (**) Includes the net balance of the impairment of the accumulated value or accumulated losses in the fair value due to credit risk. (a) The ratio is the carrying amount of the transactions at December 31, 2017 provided by the latest available appraisal value of the collateral. |
Schedule of impairment loss and allowance for loans and advances to customers | Millions of euros 2017 2016 2015 Balance at beginning of year 24,393 26,517 27,217 Net impairment losses charged to income for the year 10,513 10,734 11,477 Of which: Impairment losses charged to income 19,006 17,081 16,461 Impairment losses reversed with a credit to income (8,493) (6,347) (4,984) Change of perimeter — (136) — Write-off of impaired balances against recorded impairment allowance (13,522) (12,758) (12,361) Exchange differences and other changes 2,550 36 184 Balance at end of year 23,934 24,393 26,517 Of which: By status of the asset: Impaired assets 16,207 15,331 17,421 Of which: due to country risk (Note 54) 18 15 12 Other assets 7,727 9,062 9,096 Balance at end of year 23,934 24,393 26,517 Of which: Individually calculated 5,311 6,097 9,673 Collective calculated: 18,623 18,296 16,844 |
Schedule of changes in balance of impairment loss and allowance for loans and advances to customers | Millions of euros 2017 2016 2015 Balance at beginning of year 32,573 36,133 40,372 Net additions 8,409 7,393 7,862 Written-off assets (13,522) (12,758) (12,361) Changes in the scope of consolidation 9,618 661 106 Exchange differences and other (798) 1,144 154 Balance at end of year 36,280 32,573 36,133 |
Schedule of financial assets that are either past due or impaired | Millions of euros With no With balances past due by past-due balances or less than 90 days 90 to 180 180 to 270 270 days More than past due days days to 1 year 1 year Total Spain 6,012 938 793 814 9,643 18,200 European Union (excluding Spain) 2,023 1,526 811 558 3,829 8,747 United States and Puerto Rico 1,221 641 42 50 192 2,146 Other OECD countries 1,523 563 166 128 378 2,758 Latin America (non-OECD) 945 1,309 709 578 888 4,429 Rest of the world — — — — — — 11,724 4,977 2,521 2,128 14,930 36,280 The detail at December 31, 2016 is as follows: Millions of euros With no With balances past due by past-due balances or less than 90 days 90 to 180 180 to 270 270 days More than past due days days to 1 year 1 year Total Spain 4,845 508 360 625 7,009 13,347 European Union (excluding Spain) 2,648 1,783 877 654 3,262 9,224 United States and Puerto Rico 805 833 38 61 242 1,979 Other OECD countries 1,601 481 145 158 474 2,859 Latin America (non-OECD) 1,242 1,059 1,131 677 1,055 5,164 Rest of the world — — — — — — 11,141 4,664 2,551 2,175 12,042 32,573 The detail at December 31, 2015 is as follows: Millions of euros With no With balances past due by past-due balances or less than 90 days 90 to 180 180 to 270 270 days More than past due days days to 1 year 1 year Total Spain 6,623 894 622 551 8,329 17,019 European Union (excluding Spain) 1,854 1,720 916 791 4,394 9,675 United States and Puerto Rico 1,305 135 58 29 257 1,784 Other OECD countries 721 894 232 194 1,237 3,278 Latin America (non-OECD) 1,418 995 666 477 766 4,322 Rest of the world 8 2 — — 45 55 11,929 4,640 2,494 2,042 15,028 36,133 Set forth below for each class of impaired asset are the gross amount, associated allowances and information relating to the collateral and/or other credit enhancements obtained at December 31, 2017: Millions of euros Estimated Gross Allowance collateral amount recognized value(*) Without associated collateral 15,127 9,303 — With property collateral 17,534 5,128 11,945 With other collateral 3,619 1,776 1,168 Balance at end of year 36,280 16,207 13,113 (*) Including the estimated value of the collateral associated with each loan. Accordingly, any other cash flows that may be obtained, such as those arising from borrowers’ personal guarantees, are not included. |
Schedule of past-due loans classified as standard | Millions of euros Less than 1 1 to 2 2 to 3 month months months Loans and advances to customers Of which Central Banks — — — Of which Public sector 1 1 — Total |
Schedule of the breakdown of the securitized loans, by type of original financial instrument, and of the securitized loans derecognized because the stipulated requirements were met | Millions of euros 2017 2016 2015 Derecognized 241 477 685 Of which Securitized mortgage assets 241 477 685 Retained on the balance sheet 91,208 100,675 107,643 Of which Securitized mortgage assets 36,844 44,311 54,003 Of which: UK assets 15,694 20,969 30,833 Other securitized assets 54,364 56,364 53,640 Total 91,449 101,152 108,328 |
Hedging derivatives (Tables)
Hedging derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Hedging Derivatives [Abstract] | |
Schedule of fair value of derivatives qualifying for hedge accounting | Millions of euros 2017 2016 2015 Assets Liabilities Assets Liabilities Assets Liabilities Fair value hedges 3,607 6,968 4,678 5,696 4,620 5,786 Of which: Portfolio hedges 1,058 1,920 1,525 2,329 426 2,168 Cash flow hedges 4,416 947 5,349 1,324 2,449 3,021 Hedges of net investments in foreign operations 514 129 350 1,136 658 130 8,537 8,044 10,377 8,156 7,727 8,937 |
Non-current Assets (Tables)
Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Non-current Assets | |
Schedule of non-current assets | Millions of euros 2017 2016 2015 Tangible assets 11,661 5,743 5,623 Of which: Foreclosed assets 11,566 5,640 5,533 Of which: Property assets in Spain (Note 54) 10,533 4,902 4,983 From Banco Popular in the process of sale (Note 3) 5,943 — — Other tangible assets held for sale 95 103 90 Other assets (*) 3,619 29 23 15,280 5,772 5,646 (*) These include, mainly, Banco Popular assets under the sale of the real estate business to Blackstone (see Note 3). |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments | |
Summary of Investments by company | Millions of euros 2017 2016 2015 Associated entities Merlin Properties, SOCIMI, S.A. 1,242 1,168 — Zurich Santander Insurance América, S.L. 988 1,011 873 Testa Residencial, SOCIMI, S.A. 651 307 — Allianz Popular, S.L. 438 — — Santander Insurance 358 325 301 Other companies 520 431 485 4,197 3,242 1,659 Joint Ventures entities Wizink Bank, S.A. — — Unión de Créditos Inmobiliarios, S.A., EFC 207 177 184 Aegon Santander Seguros (currently Santander Generales Seguros y Reaseguros, S.A. and Santander Vida Seguros y Reaseguros, S.A.) 186 197 240 SAM Investment Holdings Limited (*) — 525 514 Other companies 695 654 1,987 1,594 1,592 (*) SAM Investment Holdings Limited becomes part of the Group. |
Summary of Changes in Investments | Millions of euros 2017 2016 2015 Balance at beginning of year 4,836 3,251 3,471 Acquisitions (disposals) and capital increases (reductions) 1,893 (72) (72) Of which: Wizink Bank, S.A. 1,017 — — Allianz Popular, S.L. 438 — — Changes in the consolidation method (Note 3) (582) 1,457 21 Of which: Merlin and Testa — 1,475 — SAM Investment Holdings Limited (494) — — Effect of equity accounting (Note 41) 704 444 375 Dividends paid and reimbursements of share premium (376) (305) (227) Exchange differences and other changes (291) 61 (317) Balance at end of year 6,184 4,836 3,251 |
Summary of financial information on companies accounted for using the equity method | Millions of euros 2017 2016 2015 Total assets 63,093 55,791 42,510 Total liabilities (51,242) (45,623) (38,118) Net assets 11,851 10,168 4,392 Group’s share of net assets 4,194 3,381 1,904 Goodwill 1,990 1,455 1,347 Of which: Zurich Santander Insurance América, S.L. 526 526 526 Wizink Bank, S.A. 553 — — Allianz popular, S.L. 347 — — Santander Insurance (Irlanda) 205 205 205 Total Group share 6,184 4,836 3,251 Total income 12,536 11,766 11,430 Total profit 1,699 984 935 Group’s share of profit 704 444 375 |
Summary of financial information on the main associates and joint ventures | Millions of euros Total assets Total liabilities Total income Total profit Joint Ventures entities 25,789 (23,072) 3,833 330 Of which: Unión de Créditos Inmobiliarios, S.A., EFC 12,318 (11,905) 345 10 Wizink Bank, S.A. 5,235 (4,054) 947 73 Aegon Santander Seguros (currently Santander Generales Seguros y Reaseguros, S.A. and Santander Vida Seguros y Reaseguros, S.A.) 654 (424) 382 30 Associated entities 37,304 (28,170) 8,703 1,369 Of which: Zurich Santander Insurance América, S.L. 16,049 (15,105) 4,696 491 Allianz Popular, S.L. 1,053 (826) 481 38 Santander Insurance (Irlanda) 2,161 (1,852) 843 63 Total 63,093 (51,242) 12,536 1,699 |
Insurance contracts linked to76
Insurance contracts linked to pensions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of types of insurance contracts [abstract] | |
Schedule of insurance contracts linked to pensions | Millions of euros 2017 2016 2015 Assets relating to insurance contracts covering post-employment benefit plan obligations: Banco Santander, S.A. 238 269 299 Banco Popular (Other similar obligations) 1 — — 239 269 299 |
Liabilities and Assets under 77
Liabilities and Assets under insurance contracts and Reinsurance assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Liabilities and Assets under insurance contracts and Reinsurance assets | |
Schedule of Liabilities under insurance contracts and Reinsurance assets in the consolidated balance sheets | Millions of euros 2017 2016 2015 Direct Direct Direct insurance insurance insurance and Total and Total and Total reinsurance Reinsurance (balance reinsurance Reinsurance (balance reinsurance Reinsurance (balance Technical provisions for: assumed ceded payable) assumed ceded payable) assumed ceded payable) Unearned premiums and unexpired risks 50 (41) 9 61 (46) 15 62 (39) 23 Life insurance 483 (151) 332 159 (138) 21 149 (136) 13 Claims outstanding 423 (115) 308 358 (98) 260 335 (112) 223 Bonuses and rebates 29 (11) 18 19 (8) 11 18 (9) 9 Other technical provisions 132 (23) 109 55 (41) 14 63 (35) 28 1,117 (341) 776 652 (331) 321 627 (331) 296 |
Tangible assets (Tables)
Tangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tangible assets | |
Changes in tangible assets in the consolidated balance sheets | Millions of euros Leased out under an operating Investment For own use lease property Total Cost: Balances at January 1, 2015 17,351 10,466 7,424 35,241 Additions / disposals (net) due to change in the scope of consolidation (22) 1 (27) (48) Additions / disposals (net) 878 3,857 (88) 4,647 Transfers, exchange differences and other items (765) 597 36 (132) Balances at December 31, 2015 17,442 14,921 7,345 39,708 Additions / disposals (net) due to change in the scope of consolidation (17) 287 (4,278) (4,008) Additions / disposals (net) 763 2,380 (64) 3,079 Transfers, exchange differences and other items (76) 650 462 1,036 Balances at December 31, 2016 18,112 18,238 3,465 39,815 Additions / disposals (net) due to change in the scope of consolidation 1,740 205 — 1,945 Additions / disposals (net) 781 2,445 (100) 3,126 Transfers, exchange differences and other items (1,357) (2,215) (223) (3,795) Balances at December 31, 2017 19,276 18,673 3,142 41,091 Accumulated depreciation: Balances at January 1, 2015 (8,979) (1,778) (194) (10,951) Disposals due to change in the scope of Consolidation (27) — 5 (22) Disposals 423 196 11 630 Charge for the year (1,161) — (11) (1,172) Transfers, exchange differences and other items 296 (1,794) (95) (1,593) Balances at December 31, 2015 (9,448) (3,376) (284) (13,108) Disposals due to change in the scope of Consolidation 5 (3) 121 123 Disposals 311 457 29 797 Charge for the year (1,079) — (10) (1,089) Transfers, exchange differences and other items — (2,247) (53) (2,300) Balances at December 31, 2016 (10,211) (5,169) (197) (15,577) Disposals due to change in the scope of Consolidation — — — — Disposals 478 639 8 1,125 Charge for the year (1,165) — (25) (1,190) Transfers, exchange differences and other items (22) (1,574) 25 (1,571) Balances at December 31, 2017 (10,920) (6,104) (189) (17,213) Millions of euros Leased out under an operating Investment For own use lease property Total Impairment losses: Balances at January 1, 2015 (48) (123) (863) (1,034) Impairment charge for the year (5) (37) (109) (151) Releases 3 — 20 23 Disposals due to change in the scope of Consolidation 5 — (4) 1 Exchange differences and other — 1 (120) (119) Balances at December 31, 2015 (45) (159) (1,076) (1,280) Impairment charge for the year (12) (43) (62) (117) Releases 1 1 60 62 Disposals due to change in the scope of Consolidation 1 — 309 310 Exchange differences and other 14 42 17 73 Balances at December 31, 2016 (41) (159) (752) (952) Impairment charge for the year (16) (42) (21) (79) Releases 4 — 3 7 Disposals due to change in the scope of Consolidation — (2) (1) (3) Exchange differences and other (24) 5 142 123 Balances at December 31, 2017 (77) (198) (629) (904) Tangible assets, net: Balances at December 31, 2015 7,949 11,386 5,985 25,320 Balances at December 31, 2016 (*) 7,860 12,910 2,516 23,286 Balances at December 31, 2017 8,279 12,371 2,324 22,974 (*) |
Property, plant and equipment for own use | |
Tangible assets | |
Detail by class of asset of property, plant and equipment -for own use in the consolidated balance sheets | Millions of euros Accumulated Impairment Carrying Cost depreciation losses amount Land and buildings 5,754 (1,892) (45) 3,817 IT equipment and fixtures 4,984 (3,927) — 1,057 Furniture and vehicles 6,374 (3,561) — 2,813 Construction in progress and other items 330 (68) — 262 Balances at December 31, 2015 17,442 (9,448) (45) 7,949 Land and buildings 5,713 (1,967) (41) 3,705 IT equipment and fixtures 5,225 (4,161) — 1,064 Furniture and vehicles 6,963 (4,023) — 2,940 Construction in progress and other items 211 (60) — 151 Balances at December 31, 2016 18,112 (10,211) (41) 7,860 Land and buildings 5,892 (2,014) (77) 3,801 IT equipment and fixtures 5,608 (4,422) — 1,186 Furniture and vehicles 7,213 (4,391) — 2,822 Construction in progress and other items 563 (93) — 470 Balances at December 31, 2017 19,276 (10,920) (77) 8,279 |
Intangible assets - Goodwill (T
Intangible assets - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets - Goodwill | |
Schedules of goodwill and changes in goodwill | The detail of goodwill, based on the cash-generating units giving rise thereto, is as follows: Millions of euros 2017 2016 2015 Santander UK plc 8,375 8,679 10,125 Banco Santander (Brazil) S.A. 4,988 5,769 4,590 Santander Consumer USA Inc. 2,007 3,182 3,081 Bank Zachodni WBK S.A. 2,473 2,342 2,423 Santander Bank, National Association 1,712 1,948 1,886 Santander Consumer Germany 1,217 1,217 1,217 Santander Asset Management 1,173 — — Banco Santander Totta, S.A. 1,040 1,040 1,040 Banco Santander - Chile 676 704 644 Santander Consumer Bank AS 518 537 546 Grupo Financiero Santander (Mexico) 413 449 517 Other companies (*) 1,177 857 891 Total goodwill 25,769 26,724 26,960 (*) As of December 31, 2017 includes €248 million from Banco Popular Español, S.A. The changes in goodwill were as follows: Millions of euros 2017 2016 2015 Balance at beginning of year 26,724 26,960 27,548 Additions (Note 3) 1,644 — 235 Of which: Santander Asset Management 1,173 — — Banco Popular Español, S.A. 248 — — Carfinco Financial Group Inc. — — 162 Impairment losses (899) (50) (115) Of which: Santander Consumer USA Holdings Inc. (799) — — Disposals or changes in scope of consolidation — (2) (172) Exchange differences and other items (1,700) (184) (536) Balance at end of year 25,769 26,724 26,960 |
Schedule of goodwill assumptions | Nominal Projected Discount perpetual period rate (*) growth rate Santander UK plc 5 years 8.4 % 2.5 % Banco Santander (Brasil) S.A. 5 years 14.6 % 8.3 % Santander Bank, National Association 3 years 10.1 % 3.7 % Santander Consumer Germany 3 years 8.6 % 2.5 % Santander Consumer USA Inc. 3 years 10.7 % 2.5 % Banco Santander Totta , S.A. 5 years 10.0 % 2.5 % Santander Consumer Bank AS 5 years 9.0 % 2.5 % (*) |
Intangible assets - Other int80
Intangible assets - Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets - Other intangible assets | |
Schedule of Other intangible assets | Millions of euros Net Application of additions Change in Amortization amortization Exchange Estimated December 31, and scope of and and differences December 31, useful life 2016 disposals consolidation impairment impairment and other 2017 With indefinite useful life: Brand names 39 — — — — (4) 35 With finite useful life: IT developments 3-7 years 6,558 1,470 42 — (679) (446) 6,945 Other 1,245 68 436 — (126) (63) 1,560 Accumulated amortization (4,848) — (64) (1,403) 694 235 (5,386) Development (4,240) — (14) (1,310) 627 216 (4,721) Other (608) — (50) (93) 67 19 (665) Impairment losses (297) — — (174) 111 120 (240) Of Which: Addition 2,697 1,538 414 (1,577) — (158) 2,914 Millions of euros Net Application of additions Change in Amortization amortization Exchange Estimated December 31, and scope of and and differences December 31, useful life 2015 disposals consolidation impairment impairment and other 2016 With indefinite useful life: Brand names 49 1 — — (11) — 39 With finite useful life: IT developments 3-7 years 5,411 1,726 — — (890) 311 6,558 Other 1,306 41 (124) — — 22 1,245 Accumulated amortization (3,873) — — (1,275) 716 (416) (4,848) Development (3,353) — — (1,168) 716 (435) (4,240) Other (520) — — (107) — (608) Impairment losses (423) — — (11) 185 (48) (297) Of Which: Addition (11) 2,470 1,768 (124) (1,286) — (131) 2,697 Millions of euros Net Application of additions Change in Amortization amortization Exchange Estimated December 31, and scope of and and differences December 31, useful life 2014 disposals consolidation impairment impairment and other 2015 With indefinite useful life: Brand names 61 — (2) — (17) 7 49 With finite useful life: IT developments 3-7 years 5,350 1,481 (25) — (951) (444) 5,411 Other 1,294 87 — — (81) 6 1,306 Accumulated amortization (3,623) — 20 (1,246) 663 313 (3,873) Development (3,096) — 20 (1,138) 613 248 (3,353) Other (527) — — (108) 50 65 (520) Impairment losses (229) — — (586) 386 6 (423) Of Which: Addition (586) 2,853 1,568 (7) (1,832) — (112) 2,470 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets Abstract | |
Schedule of other assets | Millions of euros 2017 2016 2015 Transactions in transit 206 431 323 Net pension plan assets (Note 25) 604 521 787 Prepayments and accrued income 2,326 2,232 1,976 Other 4,427 3,878 3,277 7,563 7,062 6,363 |
Deposits from central banks a82
Deposits from central banks and credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits from central banks and credit institutions | |
Schedule of deposits from central banks and credit institutions | Millions of euros 2017 2016 2015 CENTRAL BANKS Classification: Financial liabilities held for trading 282 1,351 2,178 Financial liabilities designated at fair value through profit or loss 8,860 9,112 16,486 Financial liabilities at amortized cost 71,414 44,112 38,872 80,556 54,575 57,536 Type: Deposits on demand 5 5 5 Time deposits 78,801 46,278 41,872 Reverse repurchase agreements 1,750 8,292 15,659 80,556 54,575 57,536 CREDIT INSTITUTIONS Classification: Financial liabilities held for trading 292 44 77 Financial liabilities designated at fair value through profit or loss 18,166 5,015 8,551 Financial liabilities at amortized cost 91,300 89,764 109,209 109,758 94,823 117,837 Type: Deposits on demand 6,444 4,220 4,526 Time deposits 54,159 61,321 71,244 Reverse repurchase agreements 49,049 29,277 42,064 Subordinated deposits 106 5 3 109,758 94,823 117,837 Currency: Euro 119,606 74,746 92,062 Pound sterling 14,820 12,237 5,961 U.S. dollar 33,259 40,514 48,586 Brazilian reais 16,485 16,537 16,410 Other currencies 6,144 5,364 12,354 190,314 149,398 175,373 |
Customer deposits (Tables)
Customer deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Customer deposits | |
Schedule of customer deposits | Millions of euros 2017 2016 2015 Classification: Financial liabilities held for trading 28,179 9,996 9,187 Financial liabilities designated at fair value through profit or loss. 28,945 23,345 26,357 Financial liabilities at amortized cost 720,606 657,770 647,598 777,730 691,111 683,142 Geographical area: Spain 260,181 181,888 183,778 European Union (excluding Spain) 318,580 295,059 311,314 United States and Puerto Rico 50,771 63,429 59,814 Other OECD countries 62,980 62,761 57,817 Latin America (non-OECD) 84,752 87,519 69,792 Rest of the world 466 455 627 777,730 691,111 683,142 Type: Demand deposits- Current accounts 328,217 279,494 257,192 Savings accounts 189,845 180,611 180,415 Other demand deposits 7,010 7,156 5,489 Time deposits- Fixed-term deposits and other term deposits 195,285 176,581 196,965 Home-purchase savings accounts 45 50 59 Discount deposits 3 448 448 Hybrid financial liabilities 4,295 3,986 5,174 Subordinated liabilities 21 24 20 Repurchase agreements 53,009 42,761 37,380 777,730 691,111 683,142 |
Marketable debt securities (Tab
Marketable debt securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Debt Securities [Abstract] | |
Schedule of marketable securities | Millions of euros 2017 2016 2015 Classification: Financial liabilities held for trading — — — Financial liabilities designated at fair value through profit or loss 3,056 2,791 3,373 Financial liabilities at amortized cost 214,910 226,078 222,787 217,966 228,869 226,160 Type: Bonds and debentures outstanding 176,719 183,278 182,073 Subordinated 21,382 19,873 21,131 Notes and other securities 19,865 25,718 22,956 217,966 228,869 226,160 |
Maturity of subordinated liabilities and debentures | Millions of euros Within 1 year 1 to 3 years 3 to 5 years More than 5 years Total Subordinated Liabilities Covered bonds 86,272 Other bonds and debentures Total bonds and debentures outstanding 176,719 Total bonds and debentures outstanding and subordinated liabilities 198,101 |
Detail, by currency of issue, of bonds and debentures outstanding | December 31, 2017 Outstanding issue amount in foreign Annual Millions of euros currency interest Currency of issue 2017 2016 2015 (Millions) rate (%) Euro 83,321 77,231 88,922 % U.S. dollar 48,688 48,134 46,463 56,841 % Pound sterling 13,279 15,098 16,757 11,181 % Brazilian real 17,309 27,152 19,125 62,592 % Hong Kong dollar — 40 74 — — Chilean peso 5,876 6,592 3,634 4,180,799 % Other currencies 8,246 9,030 7,098 Balance at end of year 176,719 183,278 182,073 |
Changes in Bonds and debentures outstanding | Millions of euros 2017 2016 2015 Balance at beginning of year 183,278 182,073 178,710 Net inclusion of entities in the Group 11,426 1,009 5,229 Of which: Grupo Banco Popular 11,426 — — Banif - Banco Santander Totta SA — — 1,729 Auto ABS UK Loans PLC — — 1,358 Auto ABS DFP Master Compartment France 2013 — — 550 Auto ABS2 FCT Compartiment 2013-A — — 514 PSA Financial Services, Spain, EFC, SA — — 401 Auto ABS FCT Compartiment 2012-1 — — 274 Auto ABS FCT Compartiment 2013-2 — — 205 PSA Finance Suisse, S.A. — — 200 Banca PSA Italia S.P.A. — 500 — PSA Bank Deutschland GmbH — 497 — Issues 62,260 57,012 66,223 Of which: Grupo Santander UK 7,625 12,815 16,279 Santander Consumer USA Holdings Inc. 11,242 11,699 11,330 Banco Santander (Brasil) S.A 16,732 7,699 16,910 Santander Consumer Finance, S.A. 2,508 4,567 5,070 Banco Santander - Chile 579 3,363 1,198 Santander Holding USA, Inc. 4,133 2,798 1,921 Banco Santander, S.A. (including issuer entities) 10,712 6,385 5,265 Banco Santander, S.A. (México), S.A. Institución de Banca Múltiple, Grupo Financiero Santander México 118 1,840 1,874 Santander Consumer Bank AG 749 — — Santander Consumer Bank A.S. 1,117 1,537 1,328 PSA Financial Services, Spain, EFC, SA — 726 — SCF Rahoituspalvelut KIMI VI DAC 635 — — Société Financière de Banque – SOFIB (actually PSA Banque France) 1,032 — — Auto ABS French Lease Master Compartiment 2016 — 635 — Santander International Products, Plc. 588 371 402 Emisora Santander España, S.A. Unipersonal 67 158 745 Banco Santander Totta, S.A. 1,999 — 749 Santander Bank, National Association — — 910 Redemptions and repurchases (66,871) (59,036) (69,295) Of which: Grupo Santander UK (13,303) (13,163) (18,702) Grupo Banco Popular (983) — — Santander Bank, National Association (886) — — Santander Consumer USA Holdings Inc. (10,264) (11,166) (7,556) Banco Santander (Brasil) S.A. (23,187) (7,579) (14,718) Banco Santander, S.A. (including issuer entities) (8,973) (12,837) (18,581) Santander Consumer Finance, S.A. (1,618) (4,117) (2,838) Santander Holdings USA, Inc. (759) (1,786) (494) Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México (224) (1,453) (789) Banco Santander Totta, S.A. (998) (856) (130) Santander Consumer Bank AS (337) (710) (163) Banco Santander - Chile, S.A. (1,442) (516) (2,136) Exchange differences and other movements (13,374) 2,219 1,206 Balance at year-end 176,719 183,278 182,073 |
Information on liabilities secured by financial assets | Millions of euros 2017 2016 2015 Asset-backed securities 32,505 38,825 42,201 Of which, mortgage-backed securities 4,034 8,561 14,152 Other mortgage securities 52,497 44,616 48,228 Of which: mortgage-backed bonds 23,907 16,965 19,747 Territorial covered bond 1,270 592 1,567 86,272 84,033 91,996 |
Information required by Bank of Spain | Millions of euros 2017 2016 2015 Face value of the outstanding mortgage loans and credits that support the issuance of mortgage-backed and mortgage bonds pursuant to Royal Decree 716/2009 (excluding securitized bonds) 91,094 56,871 60,043 Of which: Loans eligible to cover issues of mortgage-backed securities 59,422 38,426 39,414 Transfers of assets retained on balance sheet: mortgage-backed certificates and other securitized mortgage assets 18,802 19,509 21,417 |
Subordinated Liabilities (Table
Subordinated Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subordinated Liabilities [Abstract] | |
Schedule of subordinated liabilities detail, by currency of issue | Millions of euros December 31, 2017 Outstanding issue amount in foreign Annual currency interest Currency of issue 2017 2016 2015 (millions) rate (%) Euro 11,240 8,044 8,001 3.93 % U.S. dollar 8,008 9,349 9,174 11,996 5.51 % Pound sterling 874 949 851 250 8.94 % Brazilian real 131 136 1,878 146 7.00 % Other currencies 1,257 1,424 1,249 Balance at end of year 21,510 19,902 21,153 Of which, preference shares 404 413 449 Of which, preference participations 8,369 6,916 6,749 |
Schedule of changes in subordinated liabilities | Millions of euros 2017 2016 2015 Balance at beginning of year 19,902 21,153 17,132 Net inclusion of entities in the Group (Note 3) 11 — — Placements 2,994 2,395 4,787 Of which: Banco Santander, S.A. (Including issuer entities) 2,894 2,328 2,878 Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México — 59 — Santander UK Group Holdings plc — — 1,377 Santander UK plc — — 521 Société Financière de Banque – SOFIB (currently PSA Banque France) 78 — — Redemptions and repurchases (*) (870) (2,812) (1,029) Of which: Banco Santander (Brasil) S.A. — (716) (60) Santander Consumer Finance, S.A. — (70) — Santander UK plc (60) (51) (466) Bank Zachodni WBK S.A. — — (237) Banco Santander, S.A. (Including issuer entities) (453) (1,976) (193) Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México — — (64) Santander Bank, National Association (285) — — Santander Holdings USA, Inc. (72) — — Exchange differences and other movements (527) (834) 263 Balance at end of year 21,510 19,902 21,153 (*) |
Other Financial Liabilities (Ta
Other Financial Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Financial Liabilities [Abstract] | |
Schedule of other financial liabilities | Millions of euros 2017 2016 2015 Trade payables 1,559 1,230 1,264 Clearing houses 767 676 708 Tax collection accounts: Public Institutions 3,212 2,790 2,489 Factoring accounts payable 290 180 194 Unsettled financial transactions 6,375 7,418 5,584 Other financial liabilities 16,225 14,222 10,638 28,428 26,516 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |
Schedule of details of provisions in the consolidated balance sheet | Millions of euros 2017 2016 2015 Provision for pensions and other obligations post-employments 6,345 6,576 6,356 Other long term employee benefits 1,686 1,712 1,916 Provisions for taxes and other legal contingencies 3,181 2,994 2,577 Provisions for commitments and guarantees given (Note 2) 617 459 618 Of which: due to country risk 3 3 2 Other provisions 2,660 2,718 3,027 Provisions 14,489 14,459 14,494 |
Schedule of changes in provision in the last three years | Millions of euros 2017 2016 2015 Provisions Provisions Provisions Provisions Provisions for other for Provisions for Provisions for other for Provisions long commitments Provisions for other commitments for post- long Term commitments for post- Terms and for post- long Term and employment employee and guarantees Other employment employee guarantees Other employment employee guarantees Other plans benefits given provisions Total plans benefits given provisions Total plans benefits given provisions Total Balances at beginning of year 6,576 1,712 459 5,712 14,459 6,356 1,916 618 5,604 14,494 7,074 2,338 654 5,310 15,376 Net inclusion of entities in the Group 59 184 146 1,365 1,754 11 8 (4) 13 28 16 1 8 162 187 Additions charged to income: 237 293 (49) 2,863 3,344 227 368 (40) 2,235 2,790 291 224 (1) 2,958 3,472 Interest expense(Note 39) 175 23 — — 198 170 31 — — 201 228 42 — — 270 Personnel expenses (Note 47) 82 6 — — 88 73 8 — — 81 85 11 — — 96 Provisions or reversion of provisions (20) 264 (49) 2,863 3,058 (16) 329 (40) 2,235 2,508 (22) 171 (1) 2,958 3,106 Addition 2 264 606 3,855 24 377 226 3,024 3,651 9 217 238 3,632 4,096 Release (22) — (655) (992) (40) (48) (266) (789) (1,143) (31) (46) (239) (674) (990) Other additions arising from insurance contracts linked to pensions (7) — — — (7) (3) — — — (3) (18) — — — (18) Changes in value recognized in equity 369 — — — 369 1,275 — — — 1,275 (575) — — — (575) Payments to pensioners and pre-retirees with a charge to internal provisions (355) (498) — — (853) (367) (603) — — (970) (347) (667) — — (1,014) Benefits paid due to settlements (260) — — — (260) (20) — — — (20) — — — — — Insurance premiums paid — — — — — (1) — — — (1) (1) — — — (1) Payments to external funds (273) — — — (852) — — — (852) (146) — — — (146) Amounts used — — (3) (2,997) (3,000) — — (2) (2,149) (2,151) — — — (1,684) (1,684) Transfer, exchange differences and other changes (1) (5) 64 (1,102) (1,044) (50) 23 (113) 9 (131) 62 20 (43) (1,142) (1,103) Balances at end of year 6,345 1,686 617 5,841 14,489 6,576 1,712 459 5,712 14,459 6,356 1,916 618 5,604 14,494 |
Schedule of provision for pensions and similar obligations | Millions of euros 2017 2016 2015 Provisions for post-employment plans - Spanish entities 4,274 4,701 4,822 Provisions for other similar obligations - Spanish entities 1,643 1,664 1,817 Of which: Pre-retirements 1,630 1,644 1,801 Provisions for post-employment plans - Santander UK plc 323 306 150 Provisions for post-employment plans - Other foreign subsidiaries 1,748 1,569 1,384 Provisions for other similar obligations - Other foreign subsidiaries 43 48 99 Provision for pensions and other obligations post – employments and Other long term employee benefits 8,031 8,288 8,272 Of which: Defined benefits 8,026 8,277 8,263 |
Schedule of assumptions and sensitivity analysis related to the provision for litigation | Sensitivity Future analysis: forecast increases / Accumulated at (unaudited decreases in December 31, 2017 figures) provision Claims received (1) (000) 1,623 660 25 = £9m Claims received for proactive contact (000) 487 127 25 = £5m % Response to complaints received by proactive contact 54 % 100 % 1% - £0.3m % Of claims accepted by the Entity (2) 47 % 68 % 1% - £2.6m Average compensation by accepted claim (3) £1,378 £564 £100 = £50 m (1) Includes all claims received regardless of whether we expect to make a payment; i.e. regardless of the likelihood of the Santander UK group incurring a liability. Excludes claims where the complainant has not held a PPI policy. (2) It includes both claims received directly from customers and those contacted proactively by the Entity. (3) The average claim compensation was reduced from an accumulated average amount of £1,378 (€1,222) on December 31, 2017 to an average future amount of £564 due to the effect of Plevin cases in the provision, as well as a shift in the complaints mix to a greater proportion of storecards which typically carry lower average balances. |
Other combined provisions | |
Disclosure of subsidiaries [line items] | |
Schedule of other provisions by geographical area and by type of provision | Millions of euros 2017 2016 2015 Recognized by Spanish companies 1,666 1,148 1,332 Recognized by other EU companies 1,127 1,300 1,766 Recognized by other companies 3,048 3,264 2,506 Of which: Brazil 2,504 2,715 2,016 5,841 5,712 5,604 Set forth below is the detail, by type of provision, of the balance at December 31, 2017, 2016 and 2015 of Provisions for taxes and other legal contingencies and Other provisions. The types of provision were determined by grouping together items of a similar nature: Millions of euros 2017 2016 2015 Provisions for taxes 1,006 1,074 997 Provisions for employment-related proceedings (Brazil) 868 915 581 Provisions for other legal proceedings 1,307 1,005 999 Provision for customer remediation 885 685 916 Regulatory framework-related provisions 101 253 308 Provision for restructuring 360 472 404 Other 1,314 1,308 1,399 5,841 5,712 5,604 |
Spain | |
Disclosure of subsidiaries [line items] | |
Schedule of actuarial assumptions used to calculate defined benefit obligations | Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Annual discount rate 1.40% and 1.38% B. Popular 1.50% 1.75% 1.40% 1.50% 1.75% Mortality tables PERM/F-2000 PERM/F-2000 PERM/F-2000 PERM/F-2000 PERM/F-2000 PERM/F-2000 Cumulative annual CPI growth 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Annual salary increase rate B. Popular 1.75% in 2018 and Rest B. Santander 1.25% 2.00% (*) 2.00% (*) N/A N/A N/A Annual social security pension increase rate 1.00% 1.00% 1.00% N/A N/A N/A Annual benefit increase rate N/A N/A N/A 0% and 1.50% 0% and 1.50% 0% and 1.50% (*) |
Disclosure of expected rate of return assumptions | Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2017 Expected rate of return on plan assets 1.40 % 1.50 % 1.75 % N/A N/A N/A Expected rate of return on reimbursement rights 1.40 % 1.50 % 1.75 % N/A N/A N/A |
Schedule of funding status of the defined benefit obligations | Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013 Present value of the obligations: To current employees 138 50 48 62 50 — — — — — Vested obligations to retired employees 5,662 4,423 4,551 4,708 4,483 — — — — — To pre-retirees — — — — — 1,647 1,644 1,801 2,220 2,149 Long-service bonuses and other benefits — — — — — 13 13 12 13 11 Other 112 383 380 307 257 — — — 4 1 5,912 4,856 4,979 5,077 4,790 1,660 1,657 1,813 2,237 2,161 Less - Fair value of plan assets 1,640 157 157 167 157 17 — — — — Provisions - Provisions for pensions 4,272 4,699 4,822 4,910 4,633 1,643 1,657 1,813 2,237 2,161 Of which: Internal provisions for pensions 4,036 4,432 4,524 4,565 4,293 1,642 1,657 1,813 2,237 2,161 Insurance contracts linked to pensions (Note 14) 238 269 299 345 342 1 — — — — Unrecognized net assets for pensions (2) (2) (1) — (2) — — — — — |
Schedule of defined benefit obligation expenses recognized in the consolidated income statements | Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Current service cost 16 11 12 1 1 2 Interest cost (net) 79 91 100 21 27 37 Expected return on insurance contracts linked to pensions (4) (5) (6) — — — Provisions or reversion of provisions Actuarial (gains)/losses recognized in the year — — — 13 6 (8) Past service cost — 6 4 — — — Pre-retirement cost — 6 4 248 355 213 Other (2) (21) (28) — (1) (33) 89 88 86 283 388 211 |
Schedule of status and changes of the defined benefit obligations | Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Present value of the obligations at beginning of year 4,856 4,979 5,077 1,657 1,813 2,237 Incorporation of Group companies, net 1,563 — — 202 — — Current service cost 16 11 12 1 1 2 Interest cost 94 95 105 21 27 37 Pre-retirement cost — 6 4 248 355 213 Effect of curtailment/settlement (2) (21) (28) — — (33) Benefits paid (388) (353) (327) (490) (570) (657) Benefits paid due to settlements (260) — — — — (1) Past service cost — 6 4 — — — Actuarial (gains)/losses 57 136 124 13 6 (8) Demographic actuarial (gains)/losses (7) 15 24 10 (1) (12) Financial actuarial (gains)/losses 64 121 100 3 7 4 Exchange differences and other items (24) (3) 8 8 25 23 Present value of the obligations at end of year 5,912 4,856 4,979 1,660 1,657 1,813 |
Schedule of changes in fair value of plan assets | Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Fair value of plan assets at beginning of year 157 157 167 — — — Incorporation of Group companies, net 1,507 — — 18 — — Expected return on plan assets 15 4 5 — — — Benefits paid (58) (8) (17) (1) — — Contributions/(surrenders) 3 9 1 — — — Actuarial gains/(losses) 24 (2) (3) — — — Exchange differences and other items (8) (3) 4 — — — Fair value of plan assets at end of year 1,640 157 157 17 — — |
Schedule of of insurance contracts linked to pensions | Millions of euros Post-employment plans Other similar obligations 2017 2016 2015 2017 2016 2015 Fair value of insurance contracts linked to pensions at beginning of year 269 299 345 — — — Incorporation of Group companies, net — — — 2 — — Expected return on insurance contracts linked to pensions 4 5 6 — — — Benefits paid (29) (32) (34) (1) — — Paid premiums 1 — — — — — Actuarial gains/(losses) (7) (3) (18) — — — Fair value of insurance contracts linked to pensions at end of year 238 269 299 1 — — |
Schedule of maturity of estimated benefits payments | Millions of euros 2018 808 2019 703 2020 610 2021 523 2022 449 2023 to 2027 1,579 |
United Kingdom | |
Disclosure of subsidiaries [line items] | |
Schedule of actuarial assumptions used to calculate defined benefit obligations | 2017 2016 2015 Annual discount rate 2.49 % 2.79 % 3.74 % Mortality tables 108/86 S2 Light 116/98 S1 Light TMC 116/98 S1 Light TMC Cumulative annual CPI growth 3.15 % 3.12 % 2.98 % Annual salary increase rate 1.00 % 1.00 % 1.00 % Annual pension increase rate 2.94 % 2.92 % 2.83 % |
Schedule of funding status of the defined benefit obligations | Millions of euros 2017 2016 2015 2014 2013 Present value of the obligations 13,056 12,955 12,271 11,959 10,120 Less- Fair value of plan assets 13,239 13,118 12,880 12,108 9,455 Provisions - Provisions for pensions (183) (163) (609) (149) 665 Of which: Internal provisions for pensions 323 306 150 256 806 Net assets for pensions (506) (469) (759) (405) (141) |
Schedule of defined benefit obligation expenses recognized in the consolidated income statements | Millions of euros 2017 2016 2015 Current service cost 36 31 39 Interest cost (net) (6) (22) (5) 30 9 34 |
Schedule of status and changes of the defined benefit obligations | Millions of euros 2017 2016 2015 Present value of the obligations at beginning of year 12,955 12,271 11,959 Incorporation of Group companies, net — — 51 Current service cost 36 31 39 Interest cost 347 407 466 Benefits paid (445) (332) (342) Contributions made by employees 20 20 25 Past service cost — — — Actuarial (gains)/losses 602 2,315 (656) Demographic actuarial (gains)/losses (184) (59) (364) Financial actuarial (gains)/losses 786 2,374 (292) Exchange differences and other items (459) (1,757) 729 Present value of the obligations at end of year 13,056 12,955 12,271 |
Schedule of changes in fair value of plan assets | Millions of euros 2017 2016 2015 Fair value of plan assets at beginning of year 13,118 12,880 12,108 Incorporation of Group companies, net — — 66 Expected return on plan assets 353 429 471 Benefits paid (445) (332) (342) Contributions 208 304 59 Actuarial gains/(losses) 481 1,694 (222) Exchange differences and other items (476) (1,857) 740 Fair value of plan assets at end of year 13,239 13,118 12,880 |
Schedule of main categories of plan assets | 2017 2016 2015 Equity instruments 20 % 25 % 23 % Debt instruments 46 % 49 % 53 % Properties 13 % 12 % 15 % Other 21 % 14 % 9 % |
United Kingdom | Provisions For Pensions And Similar Obligations Member | |
Disclosure of subsidiaries [line items] | |
Schedule of other provisions by geographical area and by type of provision | Millions of euros 2018 284 2019 285 2020 304 2021 327 2022 352 2023 to 2027 2,065 |
Other Foreign Countries | |
Disclosure of subsidiaries [line items] | |
Schedule of provision for pensions and similar obligations | Millions of euros Of which: Business in 2017 Brazil 2016 2015 2014 2013 Present value of the obligations 9,534 7,046 9,876 8,337 10,324 9,289 Less- Of which: with a charge to the participants 193 193 153 133 151 133 Fair value of plan assets 7,927 6,188 8,445 7,008 8,458 7,938 Provisions - Provisions for pensions 1,414 665 1,278 1,196 1,715 1,218 Of which: Internal provisions for pensions 1,787 994 1,613 1,478 1,999 1,512 Net assets for pensions (98) (54) (52) (28) (8) (8) Unrecognized net assets for pensions (275) (275) (283) (254) (276) (286) |
Schedule of defined benefit obligation expenses recognized in the consolidated income statements | Millions of euros 2017 2016 2015 Current service cost 35 38 43 Interest cost (net) 104 105 138 Provisions or reversion of provisions Actuarial (gains)/losses recognized in the year 1 (9) (1) Past service cost 3 18 1 Pre-retirement cost — (9) — Other (19) (37) (1) 124 106 180 |
Schedule of status and changes of the defined benefit obligations | Millions of euros 2017 2016 2015 Present value of the obligations at beginning of year 9,876 8,337 10,324 Incorporation of Group companies, net 165 171 26 Current service cost 35 38 43 Interest cost 807 802 778 Pre-retirement cost — (9) — Effect of curtailment/settlement (19) (37) (1) Benefits paid (716) (690) (639) Benefits paid due to settlements (24) (1,352) — Contributions made by employees 6 8 8 Past service cost 3 18 1 Actuarial (gains)/losses 404 1,269 (271) Demographic actuarial (gains)/losses (140) 439 393 Financial actuarial (gains)/losses 544 830 (664) Exchange differences and other items (1,003) 1,321 (1,932) Present value of the obligations at end of year 9,534 9,876 8,337 |
Schedule of changes in fair value of plan assets | Millions of euros 2017 2016 2015 Fair value of plan assets at beginning of year 8,445 7,008 8,458 Incorporation of Group companies, net 166 154 9 Expected return on plan assets 732 732 667 Benefits paid (683) (637) (594) Benefits paid due to settlements (24) (1,328) — Contributions 94 559 109 Liquidation gains/(losses) — — 1 Actuarial gains/(losses) 203 687 43 Exchange differences and other items (1,006) 1,270 (1,685) Fair value of plan assets at end of year 7,927 8,445 7,008 |
Schedule of maturity of estimated benefits payments | Millions of euros 2018 620 2019 636 2020 653 2021 670 2022 689 2023 to 2027 3,689 |
Schedule of main categories of plan assets | 2017 2016 2015 Equity instruments 6 % 7 % 12 % Debt instruments 84 % 88 % 84 % Properties 3 % 1 % 1 % Other 7 % 4 % 3 % |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Miscellaneous liabilities [abstract] | |
Schedule of other liabilities | Millions of euros 2017 2016 2015 Transactions in transit 811 994 744 Accrued expenses and deferred income 6,790 6,507 6,562 Other 4,990 3,569 2,915 12,591 11,070 10,221 |
Tax matters (Tables)
Tax matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tax matters | |
Schedule of reconciliation of income tax expense | Millions of euros 2017 2016 2015 Consolidated profit (loss) before tax: From continuing operations 12,091 10,768 9,547 From discontinued operations — — — 12,091 10,768 9,547 Income tax at tax rate applicable in Spain (30%) 3,628 3,230 2,864 By the effect of application of the various tax rates applicable in each country (*) 539 312 158 Of which: Brazil 656 396 300 United Kingdom (78) (63) (146) United States 68 94 156 Chile (48) (54) (60) Effect of profit or loss of associates and joint ventures (211) (133) (111) Effect of deduction of goodwill in Brazil (164) (184) (133) Effect of reassessment of deferred taxes (282) (20) 30 Reversal of tax liabilities (**) — — (1,071) Permanent differences 374 77 476 Current income tax 3,884 3,282 2,213 Effective tax rate 32.12 % 30.48 % 23.18 % Of which: Continuing operations 3,884 3,282 2,213 Discontinued operations — — — Of which: Current taxes 3,777 1,493 4,070 Deferred taxes 107 1,789 (1,857) Taxes paid in the year 4,137 2,872 2,205 (*) (**) |
Schedule of tax recognized in equity | Millions of euros 2017 2016 2015 Other comprehensive income Items not reclassified to profit or loss 60 364 (231) Actuarial gains or (-) losses on defined benefit pension plans 60 364 (231) Items that may be reclassified to profit or loss — (694) 448 Cash flow hedges 108 (136) 51 Financial assets available for sale (97) (552) 384 Debt instruments (366) (368) 418 Equity instruments 269 (184) (34) Other recognized income and expense of investments in subsidiaries, joint ventures and associates (11) (6) 13 Total 60 (330) 217 |
Schedule of deferred tax assets and liabilities | Millions of euros 2017 2016 2015 Monetizable Monetizable Monetizable (*)(**) Other (*) Other (*) Other Tax assets: 11,046 12,164 9,649 11,615 8,887 13,158 Tax losses and tax credits — 4,457 — 4,934 — 4,808 Temporary differences 11,046 7,707 9,649 6,681 8,887 8,351 Of which: Non-deductible provisions — 2,336 — 1,645 — 1,631 Valuation of financial instruments — 530 — 1,042 — 2,231 Loan losses 7,461 1,159 6,082 940 5,330 827 Pensions 3,585 723 3,567 641 3,557 475 Valuation of tangible and intangible assets — 1,077 — 537 686 Tax liabilities: — 4,837 — 5,694 — 5,565 Temporary differences — 4,837 — 5,694 — 5,565 Of which: Valuation of financial instruments — 1,207 — 1,105 — 896 Valuation of tangible and intangible assets — 1,256 — 1,916 — 1,727 Investments in Group companies — 808 — 1,265 — 1,249 (*) (**) |
Schedule of changes in deferred tax assets and liabilities | Millions of euros Foreign currency balance (Charge)/Credit translation to asset and Balances at differences liability Acquisition Balances at December 31, (Charge)/ and other valuation for the year December 31, 2016 Credit to income items adjustments (net) 2017 Deferred tax assets 21,264 (675) (756) (1) 3,378 23,210 Tax losses and tax credits 4,934 (279) (205) — 7 4,457 Temporary differences 16,330 (396) (551) (1) 3,371 18,753 Of which: monetizable 9,649 (185) (455) — 2,037 11,046 Deferred tax liabilities (5,694) 568 414 19 (144) (4,837) Temporary differences (5,694) 568 414 19 (144) (4,837) 15,570 (107) (342) 18 3,234 18,373 Millions of euros Foreign currency balance (Charge)/Credit translation to asset and Balances at differences liability Acquisitions Balances at December 31, (Charge)/Credit and other valuation for the year December 31, 2015 to income items adjustments (net) 2016 Deferred tax assets 22,045 (1,311) 1,355 (551) (274) 21,264 Tax losses and tax credits 4,808 194 110 — (178) 4,934 Temporary differences 17,237 (1,505) 1,245 (551) (96) 16,330 Of which: monetizable 8,887 49 713 — — 9,649 Deferred tax liabilities (5,565) (478) 98 (26) 277 (5,694) Temporary differences (5,565) (478) 98 (26) 277 (5,694) 16,480 (1,789) 1,453 (577) 3 15,570 Millions of euros Foreign currency balance (Charge)/Credit translation to asset and Balances at differences liability Acquisitions Balances at December 31, (Charge)/Credit and other valuation for the year December 31, 2014 to income items adjustments (net) 2015 Deferred tax assets 22,164 2,330 (2,831) 356 26 22,045 Tax losses and tax credits 5,650 (449) (399) — 6 4,808 Temporary differences 16,514 2,779 (2,432) 356 20 17,237 Of which: monetizable 8,444 1,199 (794) 38 — 8,887 Deferred tax liabilities (4,527) (473) (200) (73) (292) (5,565) Temporary differences (4,527) (473) (200) (73) (292) (5,565) 17,637 1,857 (3,031) 283 (266) 16,480 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Non-controlling interests Abstract | |
Schedule of detail, by Group company, of Equity - Non-controlling interests | Millions of euros 2017 2016 2015 Bank Zachodni WBK S.A. 1,901 1,653 1,685 Banco Santander (Brasil) S.A. 1,489 1,784 1,190 Santander Consumer USA Holdings Inc. 1,479 1,963 1,506 Grupo PSA 1,305 1,149 801 Banco Santander - Chile 1,209 1,204 1,037 Grupo Financiero Santander México, S.A.B. de C.V. 1,056 1,069 1,296 Grupo Metrovacesa 836 449 560 Other companies (*) 1,481 1,208 1,270 10,756 10,479 9,345 Profit/(Loss) for the year attributable to non-controlling interests 1,588 1,282 1,368 Of which: Santander Consumer USA Holdings Inc. 368 256 329 Banco Santander (Brasil) S.A. 288 194 296 Banco Santander - Chile 264 215 191 Grupo PSA 206 171 122 Grupo Financiero Santander México, S.A.B. de C.V. 194 190 201 Bank Zachodni WBK S.A. 160 148 154 Other companies 108 108 75 12,344 11,761 10,713 (*) |
Schedule of changes in Non-controlling interests | Millions of euros 2017 2016 2015 Balance at beginning of year 11,761 10,713 8,909 Other comprehensive income (583) 374 (572) Exchange differences (653) 360 (520) Cash flow hedge (11) 45 (1) Available for sale equity (2) (30) 22 Available for sale fixed income 71 38 (100) Other 12 (39) 27 Which of: Other comprehensive income — — 6 Other 1,166 674 2,376 Profit attributable to non-controlling interests 1,588 1,282 1,368 Modification of participation rates (819) (28) (168) Change of perimeter (39) (197) 761 Dividends paid to minority shareholders (665) (800) (461) Changes in capital and others concepts 1,101 417 876 Balance at end of year 12,344 11,761 10,713 |
Schedule of financial information on the subsidiaries with significant non-controlling interests | Millions of euros (*) Grupo Banco Financiero Santander Santander Banco Santander Bank Consumer (Brasil) Santander - México, Zachodni USA S.A. Chile S.A.B de C.V. WBK S.A. Holdings Inc. Total assets 161,690 50,355 58,203 32,171 33,162 Total liabilities 145,040 45,321 53,267 27,235 27,537 Net assets 16,650 5,034 4,936 4,936 5,625 Total gross income 14,273 2,523 3,460 1,419 4,257 Total profit 2,887 859 904 432 585 (*) |
Other comprehensive income (Tab
Other comprehensive income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other comprehensive income by item | |
Schedule of exchange differences included in other comprehensive income that may be reclassified to profit or loss | Millions of euros 2017 2016 2015 Net balance at end of year (19,741) (12,995) (11,980) Of which: Brazilian real (11,056) (8,435) (10,679) Pound sterling (3,732) (2,996) 232 Mexican peso (2,230) (1,908) (1,497) Argentine peso (1,684) (1,309) (1,135) Chilean peso (866) (614) (711) U.S. dollar 555 2,849 2,342 Other (728) (582) (532) |
Schedule of other comprehensive income, that may be reclassified to profit or loss, by type of instrument and geographical origin of the issuer | Millions of euros December 31, 2017 December 31, 2016 December 31, 2015 Net Net Net revaluation revaluation revaluation Revaluation Revaluation gains/ Fair Revaluation Revaluation gains/ Fair Revaluation Revaluation gains/ Fair gains losses (losses) value gains losses (losses) value gains losses (losses) value Debt instruments Government debt securities and debt instruments issued by central banks Spain 660 (25) 635 48,217 610 (26) 584 32,729 641 (62) 579 35,283 Rest of Europe 306 (24) 282 20,244 50 (170) (120) 16,879 283 (47) 236 20,310 Latin America and rest of the world 404 (129) 275 39,132 167 (163) 4 35,996 42 (671) (629) 32,185 Private-sector debt securities 90 (128) (38) 20,888 117 (162) (45) 25,683 165 (253) (88) 29,409 1,460 (306) 1,154 128,481 944 (521) 423 111,287 1,131 (1,033) 98 117,187 Equity instruments Domestic Spain 5 (2) 3 1,373 48 (5) 43 1,309 66 (5) 61 1,140 International Rest of Europe 166 (2) 164 979 284 (4) 280 1,016 438 (14) 424 1,338 United States 14 (5) 9 560 21 — 21 772 14 (2) 12 980 Latin America and rest of the world 744 (6) 738 1,878 811 (7) 804 2,390 251 (2) 249 1,391 929 (15) 914 4,790 1,164 (16) 1,148 5,487 769 (23) 746 4,849 Of which: Listed 828 (5) 823 2,900 999 (11) 988 3,200 436 (15) 421 1,986 Unlisted 101 (10) 91 1,890 165 (5) 160 2,287 333 (8) 325 2,863 2,389 (321) 2,068 133,271 2,108 (537) 1,571 116,774 1,900 (1,056) 844 122,036 |
Schedule of changes in other comprehensive income for entities accounted for using the equity method | Millions of euros 2017 2016 2015 Balance at beginning of year (153) (232) (85) Revaluation gains/(losses) (84) 79 (156) Net amounts transferred to profit or loss 15 — 9 Balance at end of year (222) (153) (232) Of which: Zurich Santander Insurance América, S.L. (145) (84) (136) |
Accumulated retained earnings (
Accumulated retained earnings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Retained Earnings | |
Schedule of accumulated retained earnings and reserves of entities accounted for using the equity method | Millions of euros 2017 2016 2015 Restricted reserves 2,880 2,686 2,708 Legal reserve 1,614 1,459 1,444 Own shares 1,212 1,173 1,210 Revaluation reserve Royal Decree-Law 7/1996 43 43 43 Reserve for retired capital 11 11 11 Unrestricted reserves 11,368 11,285 11,486 Voluntary reserves (*) 6,904 7,192 3,230 Consolidation reserves attributable to the Bank 4,464 4,093 8,256 Reserves of subsidiaries 36,862 34,568 31,275 Reserves of entities accounted for using the equity method 725 465 291 51,835 49,004 45,760 (*) |
Schedule of Reserves of subsidiaries based on the companies' contribution to the Group | Millions of euros 2017 2016 2015 Banco Santander (Brasil) S.A. (Consolidated Group) 9,874 8,993 8,408 Santander UK Group 7,724 6,887 6,457 Group Santander Holdings USA. 4,150 4,091 3,440 Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México 3,229 3,255 2,977 Banco Santander Totta, S.A. (Consolidated Group) 2,821 2,593 2,165 Banco Santander - Chile 2,764 2,630 2,534 Santander Consumer Finance Group 2,465 2,027 1,549 Banco Santander Río S.A. 1,639 1,326 965 Bank Zachodni WBK S.A. 1,093 967 578 Santander Seguros y Reaseguros, Compañía Aseguradora, S.A. 638 824 754 Banco Santander (Suisse) S.A. 381 354 346 Santander Investment, S.A. 202 349 367 Cartera Mobiliaria, S.A., SICAV — 377 363 Exchange differences, consolidation adjustments and other companies (*) (118) (105) 372 36,862 34,568 31,275 Of which, restricted 2,777 2,730 2,445 (*) |
Memorandum items (Tables)
Memorandum items (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Contingent Liabilities and Commitments [Abstract] | |
Schedule of contingent liabilities | Millions of euros 2017 2016 2015 Financial guarantees 14,499 17,244 14,648 Financial bank guarantees 14,287 17,244 14,648 Sold credit derivatives 212 — — Non financial guarantees 31,396 24,477 23,047 Technical guarantees 30,273 23,684 22,526 Unconditionally cancellable guarantees 1,123 793 521 Irrevocable documentary credits 3,222 2,713 2,139 Irrevocable documentary credits 3,222 2,713 2,139 49,117 44,434 39,834 Millions of euros 2017 2016 2015 Drawable by third parties 207,671 202,097 195,647 Other contingent commitments 30,299 29,865 26,091 Financial asset forward purchase commitments 674 254 261 Regular way financial asset purchase contracts 1,054 4,273 485 Purchase contracts of financial assets 13,234 12,160 12,755 Documents delivered to clearing houses 12,030 12,656 12,251 Other contingent commitments 3,307 522 339 237,970 231,962 221,738 |
Schedule of off-balance sheet funds managed by the entity and joint ventures | Millions of euros 2017 2016 2015 Investment funds 135,749 129,930 109,028 Pension funds 11,566 11,298 11,376 Assets under management 19,259 18,032 20,337 166,574 159,260 140,741 |
Derivatives - held for tradin94
Derivatives - held for trading and hedging derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivatives - held for trading and hedging derivatives | |
Schedule of notional and/or contractual amounts and the market values of the trading and hedging derivatives held | Millions of euros 2017 2016 2015 Notional Market Notional Market Notional Market amount value amount value amount value Trading derivatives: Interest rate risk Forward rate agreements 190,553 (15) 370,244 (64) 175,661 (59) Interest rate swaps 3,312,025 974 3,092,360 804 2,839,940 3,095 Options, futures and other derivatives 540,424 (511) 565,635 (980) 505,655 (555) Credit risk Credit default swaps 25,136 68 38,827 37 54,056 46 Foreign currency risk Foreign currency purchases and sales 236,805 (29) 259,336 1,102 250,596 80 Foreign currency options 43,488 (37) 36,965 112 35,772 104 Currency swaps 295,753 (1,628) 321,316 (3,627) 342,401 (1,704) Securities and commodities derivatives and other 70,325 529 76,523 290 90,662 (697) 4,714,509 (649) 4,761,206 (2,326) 4,294,743 310 Hedging derivatives: Interest rate risk Interest rate swaps 157,042 (2,950) 155,047 (1,410) 175,199 (1,153) Options, futures and other derivatives 24,072 (284) 23,131 (4) 22,169 (54) Credit risk Credit default swaps — — 186 (1) 469 (5) Foreign currency risk Foreign currency purchases and sales 5,500 448 29,282 (1,066) 38,685 500 Foreign currency options — — 28 — — — Currency swaps 67,933 3,256 51,045 4,691 59,472 (496) Securities and commodities derivatives and other 724 23 319 11 299 (2) 255,271 493 259,038 2,221 296,293 (1,210) |
Schedule of notional amounts and fair values of hedging derivatives, by type of hedge | Millions of euros 2017 2016 2015 Notional Fair Notional Fair Notional Fair amount value amount value amount value Fair value hedges 151,380 (3,361) 146,191 (1,018) 214,591 (1,166) Cash flow hedges 83,770 3,469 88,905 4,025 63,912 (572) Hedges of net investments in foreign operations 20,121 385 23,942 (786) 17,790 528 255,271 493 259,038 2,221 296,293 (1,210) |
Schedule of cash flow hedges that will be recognized in the consolidated income statements in coming years | Millions of euros Within 1 to More than 2017 1 year 5 year 5 years Total Debit balances (losses) 57 69 26 152 |
Interest income (Tables)
Interest income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest income. | |
Detail of main interest and similar income items | Millions of euros 2017 2016 2015 Loans and advances - Central banks 1,881 2,090 1,392 Loans and advances - Credit institutions 1,840 2,388 1,845 Debt instruments 7,141 6,927 7,361 Loans and advances - Customers 43,640 42,578 45,445 Other interest 1,539 1,173 1,155 56,041 55,156 57,198 |
Interest expense (Tables)
Interest expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest expense. | |
Detail of main items of interest expense and similar charges | Millions of euros 2017 2016 2015 Central banks deposits 216 127 79 Credit institution deposits 2,045 1,988 2,277 Customer deposits 11,074 12,886 12,826 Debt securities issued and Subordinated liabilities 6,651 7,767 7,899 Marketable debt securities 5,685 6,822 6,965 Subordinated liabilities (Note 23) 966 945 934 Provisions for pensions (Note 25) 198 201 270 Other interest 1,561 1,098 1,035 21,745 24,067 24,386 |
Dividend income (Tables)
Dividend income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Dividend income Abstract | |
Detail of Income from dividends | Millions of euros 2017 2016 2015 Dividend income classified as: Financial assets held for trading 234 217 266 Financial assets available-for-sale 150 196 189 384 413 455 |
Income from companies account98
Income from companies accounted for using the equity method (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income from companies accounted for using the equity method abstract | |
Schedule of income from companies accounted for using the equity method | Millions of euros 2017 2016 2015 Zurich Santander Insurance América, S.L. 241 223 183 SAM Investment Holdings Limited 87 79 64 Wizink Bank, S.A. 36 — — Companhia de Crédito, Financiamento e Investimento RCI Brasil 19 12 28 Allianz Popular, S.L. 15 — — Other companies 306 130 100 704 444 375 |
Commission income (Tables)
Commission income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commission income | |
Detail of fee and commission income | Millions of euros 2017 2016 2015 Collection and payment services: Bills 368 295 271 Demand accounts 1,490 1,191 1,074 Cards 3,515 2,972 2,768 Orders 449 431 412 Cheques and other 154 133 134 5,976 5,022 4,659 Marketing of non-banking financial products: Investment funds 751 696 805 Pension funds 92 86 92 Insurance 2,517 2,428 2,350 3,360 3,210 3,247 Securities services: Securities underwriting and placement 374 282 252 Securities trading 302 287 303 Administration and custody 359 297 265 Asset management 251 201 222 1,286 1,067 1,042 Other: Foreign exchange 471 353 303 Financial guarantees 559 505 494 Commitment fees 283 286 314 Other fees and commissions 2,644 2,500 2,983 3,957 3,644 4,094 14,579 12,943 13,042 |
Commission expense (Tables)
Commission expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commission expense | |
Detail of fee and commission expense | Millions of euros 2017 2016 2015 Commissions assigned to third parties 1,831 1,639 1,593 Cards 1,391 1,217 1,201 By collection and return of effects 12 11 13 Other fees assigned 428 411 379 Other commissions paid 1,151 1,124 1,416 Brokerage fees on lending and deposit transactions 49 47 43 Sales of insurance and pension funds 205 204 159 Other fees and commissions 897 873 1,214 2,982 2,763 3,009 |
Gains or losses on financial101
Gains or losses on financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Gains or losses on financial assets and liabilities | |
Schedule of detail, by origin, of gains/losses on financial assets and liability | Millions of euros 2017 2016 2015 Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net 404 869 1,265 Of which Financial Assets available for sale 472 861 891 Debt instruments 316 464 760 Equity instruments 156 397 131 Gains or losses on financial assets and liabilities held for trading, net (*) 1,252 2,456 (2,312) Gains or losses on financial assets and liabilities measured at fair value through profit or loss, net (*) (85) 426 325 Gains or losses from hedge accounting, net (11) (23) (48) 1,560 3,728 (770) (*) |
Schedule of exchange differences, net | Millions of euros 2017 2016 2015 Exchange differences, net 105 (1,627) 3,156 |
Schedule of detail of asset balances measured at fair value through profit or loss | Millions of euros 2017 2016 2015 Loans and receivables: 40,875 40,390 48,129 Credit institutions 11,585 13,290 27,755 Customers 29,290 27,100 20,374 Debt instruments 39,836 52,320 47,681 Equity instruments 22,286 15,043 18,855 Derivatives 57,243 72,043 76,724 160,240 179,796 191,389 |
Schedule of detail of liability balances measured at fair value through profit or loss | Millions of euros 2017 2016 2015 Deposits (84,724) (48,863) (62,836) Central banks (9,142) (10,463) (18,664) Credit institutions (18,458) (5,059) (8,628) Customer (57,124) (33,341) (35,544) Marketable debt securities (3,056) (2,791) (3,373) Short positions (20,979) (23,005) (17,362) Derivatives (57,892) (74,369) (76,414) Other financial liabilities (589) — (1) (167,240) (149,028) (159,986) |
Other operating income and e102
Other operating income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other operating income and expenses | |
Schedule of other operating income and other operating expenses | Millions of euros 2017 2016 2015 Insurance activity 57 63 98 Income from insurance and reinsurance contracts issued 2,546 1,900 1,096 Of which: Insurance and reinsurance premium income 2,350 1,709 961 Reinsurance income 196 191 135 Expenses of insurance and reinsurance contracts (2,489) (1,837) (998) Of which: Claims paid, other insurance-related expenses and net provisions for insurance contract liabilities (2,249) (1,574) (740) Reinsurance premiums paid (240) (263) (258) Other operating income 1,618 1,919 1,971 Non- financial services 472 698 711 Other operating income 1,146 1,221 1,260 Of which, fees and commissions offsetting direct costs 192 145 115 Other operating expense (1,966) (1,977) (2,235) Non-financial services (302) (518) (590) Other operating expense: (1,664) (1,459) (1,645) Of which, Deposit Guarantee Fund (848) (711) (769) (291) 5 (166) |
Personnel expenses (Tables)
Personnel expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based payment arrangement | |
Schedule of detail of personnel expenses | Millions of euros 2017 2016 2015 Wages and salaries 8,879 8,133 8,081 Social security costs 1,440 1,291 1,330 Additions to provisions for defined benefit pension plans (Note 25) 88 81 96 Contributions to defined contribution pension funds 271 266 279 Other personnel expenses 1,369 1,233 1,321 12,047 11,004 11,107 |
Schedule of average number of employees | Average number of employees (***) 2017 2016 2015 The Bank: Senior management (*) 64 76 93 Other line personnel 21,327 20,291 20,909 Clerical staff (**) — 1,904 2,138 General Services Personnel (**) — 13 22 21,391 22,284 23,162 Rest of Spain 12,703 6,925 6,922 Santander UK plc 19,079 19,428 20,069 Banco Santander (Brasil) S.A. 46,210 48,052 47,720 Other companies 96,349 94,946 91,591 195,732 191,635 189,464 (*) Categories of deputy assistant executive vice president and above, including senior management. (**) During 2017, Clerical staff and General Services Personnel categories were erased considering all the staff in the aforementioned categories on the Other line personnel category. (***) Excluding personnel assigned to discontinued operations. |
Schedule of functional breakdown of final employment by gender | The functional breakdown (final employment), by gender, at December 31, 2017 is as follows: Functional breakdown by gender Senior executives Other executives Other personnel Men Women Men Women Men Women Continental Europe 978 290 6,557 2,908 27,009 33,287 United Kingdom 115 31 1,252 639 8,828 14,317 America 507 91 6,569 4,024 39,612 55,237 1,600 412 14,378 7,571 75,449 102,841 The same information, expressed in percentage terms at December 31, 2017, is as follows: Functional breakdown by gender Senior executives Other executives Other personnel Men Women Men Women Men Women Continental Europe 77 % 23 % 69 % 31 % 45 % 55 % United Kingdom 79 % 21 % 66 % 34 % 38 % 62 % America 85 % 15 % 62 % 38 % 42 % 58 % 80 % 20 % 66 % 34 % 42 % 58 % |
Schedule of number of employees with disabilities | Average number of employees (**) 2017 Senior management (*) 4 Other management 65 Other staff 3,220 3,289 (*) Categories of deputy assistant executive vice president and above, including senior management. (**) An employee with disabilities is considered to be a person who is recognized by the State or the Company in each jurisdiction where the Group operates and that entitles them to receive direct monetary assistance, or other types of aid such as, for example, reduction of their taxes. In the case of Spain, employees with disabilities have been considered to be those with a degree of disabilities greater than or equal to 33%. The amount does not include employees in the United States. |
Schedule of benchmark bonus | Benchmark bonus Percentage (thousands of euros) (deferred) 300 or less 0 % 300 to 600 (inclusive) 20 % More than 600 30 % |
Schedule of scale applicable to EPS benchmark | EPS in 2015 2015 EPS (% of budgeted 2015 EPS) coefficient ≥ 90% 1 > 75% but < 90% 0.75 – 1 (*) ≤ 75% 0 (*) |
Schedule of scale applicable to RoTE benchmark | RoTE in 2015 2015 RoTE (% of budgeted 2016 RoTE) coefficient ≥ 90% 1 > 75% but < 90% 0.75 – 1 (*) ≤ 75% 0 (*) |
Schedule of Total Shareholder Return benchmark | Santander’s Percentage of place in the maximum shares TSR ranking to be delivered 1st to 8th 100 % 9th to 12th 50 % 13th and below 0 % |
Schedule of relative performance to EPS benchmark | Position of Santander’s EPS growth 2015 - 2017 EPS coefficient 1st to 5th 1 6th 0.875 7th 0.75 8th 0.625 9th 0.50 10th and below 0 |
Schedule of RoTE | RoTE in 2017 RoTE (%) coefficient ≥ 12% 1 > 11% but < 12% 0.75 – 1(*) ≤ 11% 0 (*) |
Schedule of employee satisfaction scale of compliance | Position among the best banks to work Employee for in 2017 coefficient 1st to 3rd 1 4th or below 0 o Scale of compliance at Santander Group level: No. of main markets in which Santander is ranked in the top three of the best banks to work for Employee in 2017 coefficient 6 or more 1 5 or less 0 |
Schedule of customer satisfaction scale of compliance | o Scale of compliance at country level: Position among the best banks as per the customer satisfaction index Customer in 2017 coefficient 1st to 3rd 1 4th or below 0 o Scale of compliance at Santander Group level: No. of main markets in which Santander is ranked in the top three of the best banks in the customer satisfaction index Customer in 2017 coefficient 10 1 Between 6 and 9 0.2 - 0.8 (*) 5 or less 0 (*) |
Schedule of customer loyalty scale of compliance | o Scales of compliance at country level: SME and business Individual customers (% of the customers (% of the budget for the Individual budget for the Business related market) coefficient related market) coefficient ≥ 100% 1 ≥ 100 % 1 > 90% but < 100% 0.5 - 1 (*) > 90% but < 100 % 0.5 - 1 (*) ≤ 90% 0 ≤ 90 % 0 (*) o Scales of compliance at Santander Group level: SME and Individual business customers Individual customers Business (millions) coefficient (millions) coefficient ≥ 17 1 ≥ 1.1 1 > 15 but < 17 0.5 - 1 (*) > 1 but < 1.1 0.5 - 1 (*) ≤ 15 0 ≤ 1 0 (*) |
Schedule of Santander's place in TSR ranking and percentage of maximum shares to be delivered | Santander’s Percentage of place in the TSR maximum shares ranking to be delivered 1st to 4th 100.0 % 5th 87.5 % 6th 75.0 % 7th 62.5 % 8th 50.0 % 9th and below 0 % |
Schedule of entity's compliance with earnings per share growth target | BPA growth in 2018 (% Over 2015) BPA coefficient ≥ 25% 1 ≥ 0% but < 25% 0 – 1 (*) < 0% 0 (*) |
Schedule of position of relative total shareholder return (RTA) | Position of the Santander RTA RTA coefficient Exceeding the 66th percentile 1 Between the 33rd and 66th percentiles 0 – 1 (*) Lower than percentile 33 0 (*) |
Schedule of entity's compliance return on risk-weighted assets (RoRWA) | BPA growth in 2018 (% Over 2015) RoRWA coefficient ≥ 20% 1 ≥ 10% but < 20% 0.5 – 1 (*) < 10% 0 (*) |
Schedule of relative performance to EPS 2019 | EPS growth in 2019 (% over 2016) EPS coefficient ≥ 25% 1 ≥ 0% but < 25% 0 – 1 (*) < 0% 0 (*) Lineal increase of the EPS Coefficient according to the specific EPS growth in 2019 with respect to 2016 within this scale line. |
Schedule of Total Shareholder Return benchmark of credit entities | Santander’s TSR positon TSR Coefficient Greater than percentile 66 1 Percentiles between 33 and 66 0 – 1 (*) Smaller than percentile 33 0 (*) Proportional increase of the TSR Coefficient in accordance with the number of positions moved forward in the ranking within this scale line. |
Schedule of Common Equity Tier I Benchmark | CET1 en 2019 CET1 Coefficient ≥ 11.30% 1 ≥ 11% but < 11.30% 0.5 – 1 (*) < 11% 0 |
Schedule of options activity | Exercise Date of Date of Number of price in commencement expiry of shares (in pounds Year Employee Number of of exercise exercise thousands) sterling (*) granted group persons period period Plans outstanding at 01/01/15 19,122 Options granted (Sharesave) 14,074 Employees 7,759 (**) 01/11/15 01/11/18 01/11/15 01/11/20 Options exercised (1,839) Options cancelled (net) or not exercised (6,595) Plans outstanding at 31/12/15 24,762 Options granted (Sharesave) 17,296 Employees 7,024 01/11/16 01/11/19 01/11/16 01/11/21 Options exercised (338) Options cancelled (net) or not exercised (12,804) Plans outstanding at 31/12/16 28,916 Options granted (Sharesave) 3,916 4.02 Employees 4,260 01/11/17 01/11/20 01/11/17 01/11/22 Options exercised (1,918) 3.77 Options cancelled (net) or not exercised (3,713) 3.40 Plans outstanding at 31/12/17 27,201 (*) At December 31, 2017, 2016, 2015 and 2014, the euro/pound sterling exchange rate was €1.16798 GBP 1; €1.36249/GBP 1 and €1.28386/GBP 1, respectively. (**) Number of accounts/contracts. A single employee may have more than one account/contract. |
Deferred conditional variable remuneration plan | |
Share-based payment arrangement | |
Schedule of bonus payment percentages and deferral periods | 2017 (seventh cycle) Immediate payment Deferred percentage percentage Deferral (*) (*) period Executive directors and members of the Identified Staff with total variable remuneration (*) ≥ €2.7 million 40 % 60 % 5 years Executive directors and members of the Identified Staff with total variable remuneration (**) ≥ €1.7 million (< €2.7 million) 50 % 50 % 5 years Other beneficiaries 60 % 40 % 3 years (*) In certain countries the deferred percentage or the deferred period could be different to comply with local rules or the authority requirements. (**) Total variable remuneration in case of standard fulfilment (100% target). 2015 (fifth cycle) Immediate payment Deferred percentage percentage Deferral (*) (*) period Executive directors and members of the Identified Staff with total variable remuneration ≥ €2.6 million 40 % 60 % 5 years Division managers, country heads, other executives of the Group with a similar profile and members of the Identified Staff with total variable remuneration ≥ €1.7 million (< €2.6 million) 50 % 50 % 5 years Other beneficiaries 60 % 40 % 3 years (*) 2014 (fourth cycle) (*) Immediate payment Deferred percentage percentage (**) (**) Executive directors and members of the Identified Staff with total variable remuneration ≥ €2.6 million 40 % 60 % Division managers, country heads, other executives of the Group with a similar profile and members of the Identified Staff with total variable remuneration ≥ €1.8 million 50 % 50 % (< €2.6 million) Other beneficiaries 60 % 40 % (*) Deferral period for all the categories is 3 years. (**) Generally applicable percentages. In some countries deferred percentages may be higher for certain categories of executives, thereby giving rise to lower immediate payment percentages. |
Deferred variable compensation plan linked to multiannual objectives | |
Share-based payment arrangement | |
Schedule of bonus payment percentages and deferral periods | 2016 and 2017 (first and second cycle) Immediate payment Deferred Deferral percentage percentage period (*) (*) (*) Executive directors and members of the Identified Staff with total variable remuneration ≥ €2.7 million (**) (***) 40 % 60 % 5 years Division managers, country heads of countries that represent at least 1% of the Group’s economic capital, other executives of the Group with a similar profile and members of the Identified Staff with total variable remuneration ≥ €1.7 million (<€ 2.7 million) (**) (***) 50 % 50 % 5 years Other beneficiaries 60 % 40 % 3 years (*) In some countries the percentage and the period of deferral may be higher to comply with local regulations or with the requirements of the competent authority in each case. (**) Variable reference remuneration for the standard compliance (100% of the objectives). (***) In the first cycle (2016), the quantitative amount that determines by itself being in one category or another refers to the total variable remuneration effectively approved at year end and do not refers to target or reference remuneration. |
Performance share plans | |
Share-based payment arrangement | |
Schedule of fair value assumptions | PI14 Expected volatility (*) 51.35 % Annual dividend yield based on last few years 6.06 % Risk-free interest rate (Treasury Bond yield (zero coupon) over the period of the plan) 4.073 % (*) |
Sharesave plan | |
Share-based payment arrangement | |
Schedule of fair value assumptions | 2017 2016 2015 Risk-free interest rate 0.89% ‑ 1.08 % 0.31% ‑ 0.41 % 1.06% ‑ 1.37 % Dividend increase 5.48% ‑ 5.51 % 5.92% ‑ 6.21 % 6.91% ‑ 7.36 % Volatility of underlying shares based on historical volatility over five years 26.16% ‑ 26.31 % 31.39% ‑ 32.00 % 28.54% ‑ 29.11 % Expected life of options granted 3 and 5 years 3 and 5 years 3 and 5 years |
Other general administrative104
Other general administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other general administrative expenses | |
Schedule of detail of other general administrative expenses | Millions of euros 2017 2016 2015 Property, fixtures and supplies 1,931 1,853 1,943 Technology and systems 1,257 1,095 1,188 Technical reports 759 768 810 Advertising 757 691 705 Communications 529 499 587 Taxes other than income tax 583 484 529 Surveillance and cash courier services 443 389 413 Per diems and travel expenses 217 232 278 Insurance premiums 78 69 74 Other administrative expenses 1,799 1,653 1,668 8,353 7,733 8,195 |
Schedule of technical reports includes the fees paid by various Group companies | Millions of euros 2017 2016 2015 Audit fees 76.2 73.7 49.6 Audit-related fees 13.4 7.2 46.9 Tax fees 1.3 0.9 9.1 All other fees 3.1 3.6 12.6 Total 94.0 85.4 118.2 |
Schedule of number of offices | The number of offices at December 31, 2017 and 2016 is as follow: Group Number of offices (*) 31/12/17 31/12/16 Spain 4,681 2,911 Group 9,016 9,324 13,697 12,235 (*) Included 1,777 offices of Grupo Banco Popular. |
Gains or losses on non-finan105
Gains or losses on non-financial assets and investments, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Gain Loss On Disposal Of Assets Not Held For Sale [Abstract] | |
Detail of gains/ (losses) on disposal of assets not classified as non-current assets held for sale | Millions of euros 2017 2016 2015 Gains: Tangible and intangible assets 134 131 104 Investments 443 30 104 Of which: Allfunds Bank, S.A. (Note 2) 425 — — 577 161 208 Losses: Tangible and intangible assets (43) (116) (83) Investments (12) (15) (13) (55) (131) (96) 522 30 112 |
Gains or losses on non-curre106
Gains or losses on non-current assets held for sale not classified as discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Gains Or Losses On Non Current Assets Held For Sale Not Classified As Discontinued Operations [Abstract] | |
Schedule of gains or losses on non-current assets held for sale that were not classified as discontinued operations | Millions of euros Net balance 2017 2016 2015 Tangible assets (195) (141) (171) Impairment (Note 12) (306) (212) (222) Gain (loss) on sale 111 71 51 Other gains and other losses (8) — (2) (203) (141) (173) |
Other disclosures (Tables)
Other disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other disclosures | |
Schedule of certain financial assets and liabilities by maturity | The detail, by maturity, of the balances of certain items in the consolidated balance sheet is as follows: December 31, 2017 Millions of euros Average On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 interest demand month months months years years years Total rate Assets: Cash, cash balances at Central Banks and other deposits on demand 110,995 — — — — — — 110,995 0.53 % Financial assets available-for-sale 326 2,467 1,646 11,497 22,447 11,164 78,934 128,481 Debt instruments 326 2,467 1,646 11,497 22,447 11,164 78,934 128,481 4.34 % Loans and receivables 57,000 119,541 112,786 903,013 Debt instruments 249 1,381 997 2,073 2,317 1,656 8,870 17,543 3.06 % Loans and advances 56,751 117,224 111,130 885,470 — Central banks — — — 26,278 5.10 % Credits institutions 18,242 4,198 3,445 5,708 5,694 939 1,341 39,567 1.26 % Customers 38,509 49,159 47,330 84,097 111,530 110,191 378,809 819,625 5.44 % Held-to-maturity investments — — — 1,902 122 294 11,173 13,491 1.52 % 168,321 142,110 124,244 1,155,980 % Liabilities: Financial liabilities at amortized cost: 537,604 75,161 87,939 130,672 136,487 83,542 74,664 1,126,069 — Deposits 527,499 59,325 66,667 100,658 81,169 39,719 8,283 883,320 Central banks 450 2,015 681 2,715 42,988 22,565 — 71,414 0.24 % Credit institutions 20,870 15,263 13,350 25,406 6,501 5,247 4,663 91,300 2.40 % Customer deposits 506,179 42,047 52,636 72,537 31,680 11,907 3,620 720,606 2.00 % Marketable debt securities (*) 105 11,927 11,638 29,286 54,202 43,395 64,357 214,910 2.56 % Other financial liabilities 10,000 3,909 9,634 728 1,116 428 2,024 27,839 — 537,604 75,161 87,939 130,672 136,487 83,542 74,664 1,126,069 1.98 % Difference (assets less liabilities) (369,283) 5,623 40,702 29,911 — (*) The Group’s net borrowing position with the ECB was €34,820 million at December 31, 2017, mainly because in last period the Group borrowed funds under the ECB’s targeted longer-term refinancing operations (LTRO, TLTRO) program. (See note 20). December 31, 2016 Millions of euros Average On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 Total interest demand month months months years years years rate Assets: Cash, cash balances at Central Banks and other deposits on demand 76,454 — — — — — — 76,454 0.98 % Financial assets available-for-sale 200 5,986 2,007 5,442 23,574 13,900 60,178 111,287 Debt instruments 200 5,986 2,007 5,442 23,574 13,900 60,178 111,287 4.33 % Loans and receivables 52,512 48,420 56,725 85,521 113,387 93,816 389,623 840,004 Debt instruments 248 1,628 708 2,246 2,125 1,918 4,364 13,237 6.31 % Loans and advances 52,264 46,792 56,017 83,275 111,262 91,898 385,259 826,767 Central banks — 941 11,499 1,117 — 23 14,393 27,973 6.54 % Credits institutions 16,632 4,938 2,210 2,220 4,435 1,268 3,721 35,424 1.96 % Customers 35,632 40,913 42,308 79,938 106,827 90,607 367,145 763,370 5.79 % Held-to-maturity investments — — — 123 2,075 342 11,928 14,468 1.70 % 129,166 54,406 58,732 91,086 139,036 108,058 461,729 1,042,213 5.12 % Liabilities: Financial liabilities at amortized cost: 480,075 95,583 67,282 125,774 115,591 69,467 90,468 1,044,240 Deposits 471,494 79,446 42,583 86,006 69,775 34,505 7,837 791,646 Central banks 422 2,007 633 101 20,027 20,922 — 44,112 0.26 % Credit institutions 16,649 16,357 10,603 23,313 13,540 5,560 3,742 89,764 3.97 % Customer deposits 454,423 61,082 31,347 62,592 36,208 8,023 4,095 657,770 2.25 % Marketable debt securities (*) 642 12,861 14,225 39,465 43,985 34,520 80,380 226,078 3.68 % Other financial liabilities 7,939 3,276 10,474 303 1,831 442 2,251 26,516 480,075 95,583 67,282 125,774 115,591 69,467 90,468 1,044,240 2.57 % Difference (assets less liabilities) (350,909) (41,177) (8,550) (34,688) 23,445 38,591 371,261 (2,027) (*) December 31, 2015 Millions of euros On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 Total Average demand month months months years years years interest rate Assets: Cash, cash balances at Central Banks and other deposits on demand 77,751 — — — — — — 77,751 0.79 % Financial assets available-for-sale 172 4,268 2,389 11,899 18,718 18,537 61,204 117,187 Debt instruments 172 4,268 2,389 11,899 18,718 18,537 61,204 117,187 3.87 % Loans and receivables 27,870 57,666 49,852 82,485 111,322 102,462 404,499 836,156 Debt instruments 15 1,383 1,083 1,143 1,764 1,241 4,278 10,907 5.40 % Loans and advances 27,855 56,283 48,769 81,342 109,558 101,221 400,221 825,249 Central banks — 6,305 5,007 2,120 47 3,835 23 17,337 7.45 % Credits institutions 6,879 11,974 4,115 5,294 3,897 1,240 4,039 37,438 1.55 % Customers 20,976 38,004 39,647 73,928 105,614 96,146 396,159 770,474 5.99 % Held-to-maturity investments — — — — 2,013 140 2,202 4,355 2.39 % 105,793 61,934 52,241 94,384 132,053 121,139 467,905 1,035,449 5.22 % Liabilities: Financial liabilities at amortized cost: 407,925 140,331 68,991 123,214 147,349 49,975 101,558 1,039,343 Deposits 403,579 122,234 47,277 88,263 88,808 14,462 31,056 795,679 Central banks 1,580 3,874 2,348 — 31,070 — — 38,872 0.17 % Credit institutions 7,043 30,187 11,801 31,843 15,926 6,295 6,114 109,209 2.64 % Customer deposits 394,956 88,173 33,128 56,420 41,812 8,167 24,942 647,598 2.48 % Marketable debt securities (*) 134 13,142 14,900 34,303 57,880 34,998 67,430 222,787 3.70 % Other financial liabilities 4,212 4,955 6,814 648 661 515 3,072 20,877 407,925 140,331 68,991 123,214 147,349 49,975 101,558 1,039,343 2.56 % Difference (assets less liabilities) (302,132) (78,397) (16,750) (28,830) (15,296) 71,164 366,347 (3,894) (*) |
Schedule of undiscounted contractual maturities of financial liabilities at amortized cost by maturity | December 31, 2017 Millions of euros On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 demand month months months years years years Total Financial liabilities at amortized cost: Deposits 526,059 57,490 89,249 99,780 64,977 32,365 8,157 878,077 Central banks 451 2,018 23,801 2,719 27,138 15,385 — 71,512 Credit institutions 20,378 14,903 13,035 24,807 6,348 5,123 4,553 89,147 Customer 505,230 40,569 52,413 72,254 31,491 11,857 3,604 717,418 Marketable debt securities 1,486 11,735 11,387 28,412 52,989 42,888 63,648 212,545 Other financial liabilities 10,001 3,908 9,634 728 1,116 428 2,024 27,839 537,546 73,133 110,270 128,920 119,082 75,681 73,829 1,118,461 December 31, 2016 Millions of euros On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 demand month months months years years years Total Financial liabilities at amortized cost: Deposits 467,529 95,231 49,246 68,830 66,255 34,781 7,765 789,637 Central banks 422 2,006 633 101 20,021 20,916 — 44,099 Credit institutions 16,676 15,789 15,500 20,057 12,364 5,517 3,736 89,639 Customer 450,431 77,436 33,113 48,672 33,870 8,348 4,029 655,899 Marketable debt securities 623 13,582 12,705 38,119 42,201 34,022 78,094 219,346 Other financial liabilities 7,939 3,645 10,097 305 1,837 442 2,251 26,516 476,091 112,458 72,048 107,254 110,293 69,245 88,110 1,035,499 December 31, 2015 Millions of euros On Within 1 1 to 3 3 to 12 1 to 3 3 to 5 More than 5 demand month months months years years years Total Financial liabilities at amortized cost: Deposits 401,813 121,750 47,094 87,916 88,558 14,406 30,927 792,465 Central banks 1,579 3,872 2,347 — 31,053 — — 38,851 Credit institutions 7,021 30,094 11,765 31,745 15,877 6,275 6,095 108,873 Customer 393,213 87,784 32,982 56,171 41,628 8,131 24,832 644,741 Marketable debt securities 130 12,806 14,511 33,375 56,340 33,975 65,299 216,435 Other financial liabilities 4,212 4,955 6,814 648 661 515 3,072 20,877 406,155 139,511 68,419 121,939 145,559 48,896 99,298 1,029,777 |
Schedule of remainder of financial assets, liabilities and memorandum items by maturity | Within 1 1 to 3 3 to 12 More than 5 Millions of euros at December 31, 2017 months months months 1 to 3 years 3 to 5 years years Total FINANCIAL ASSETS Financial assets held for trading 11,147 5,887 21,896 24,178 19,563 42,787 125,458 Derivatives 4,026 1,691 5,352 17,233 14,895 14,046 57,243 Equity instruments — — — — — 21,353 21,353 Debt instruments 4,253 1,706 11,850 6,529 4,662 7,351 36,351 Loans and advances 2,868 2,490 4,694 416 6 37 10,511 Credits institutions 1,216 1 63 416 — — 1,696 Customers 1,652 2,489 4,631 — 6 37 8,815 Financial assets designated at Fair Value through profit or loss 9,998 4,485 5,032 3,402 3,922 7,943 34,782 Equity instruments — — — — — 933 933 Debt instruments 19 120 850 667 579 1,250 3,485 Loans and advances 9,979 4,365 4,182 2,735 3,343 5,760 30,364 Central Banks — — — — — — — Credits institutions 7,341 2,020 183 32 77 236 9,889 Customers 2,638 2,345 3,999 2,703 3,266 5,524 20,475 Financial Assets available for sale — — — — — 4,790 4,790 Equity instruments — — — — — 4,790 4,790 Hedging derivatives 255 162 519 1,113 1,583 4,905 8,537 Changes in the fair value of hedged items in portfolio hedges of interest rate risk 57 6 33 151 59 981 1,287 TOTAL FINANCIAL ASSETS 21,457 10,540 27,480 28,844 25,127 61,406 174,854 Within 1 1 to 3 3 to 12 More than 5 Millions of euros at December 31, 2017 months months months 1 to 3 years 3 to 5 years years Total FINANCIAL LIABILITIES Financial liabilities held for trading 38,976 4,073 7,177 17,913 16,989 22,496 107,624 Derivatives 3,698 2,070 5,951 15,634 14,897 15,642 57,892 Shorts positions 8,060 468 1,226 2,279 2,092 6,854 20,979 Deposits 27,218 1,535 — — — — 28,753 Central Banks 282 — — — — — 282 Credits institutions 292 — — — — — 292 Customers 26,644 1,535 — — — — 28,179 Marketable debt securities — — — — — — — Other financial liabilities — — — — — — — Financial liabilities designated at fair value through profit or loss 30,152 5,166 1,635 1,251 1,120 20,292 59,616 Deposits 30,083 4,730 1,065 191 425 19,477 55,971 Central Banks 6,038 2,077 745 — — — 8,860 Credits institutions 16,521 1,485 63 — 97 — 18,166 Customers 7,524 1,168 257 191 328 19,477 28,945 Marketable debt securities 69 436 570 471 695 815 3,056 Other financial liabilities — — — 589 — — 589 Hedging derivatives 40 79 180 493 677 6,575 8,044 Changes in the fair value of hedged items in portfolio hedges of interest rate risk — — (2) (1) 31 302 330 TOTAL LIABILITIES ASSETS 69,168 9,318 8,990 19,656 18,817 49,665 175,614 Within 1 1 to 3 3 to 12 More than 5 Millions of euros at December 31, 2017 months months months 1 to 3 years 3 to 5 years years Total Memorandum items Contingent commitments 87,280 14,165 54,069 32,664 34,011 Contingent liabilities 17,065 5,059 12,599 10,502 2,326 MEMORANDUM ITEMS 104,345 19,224 66,668 43,166 36,337 17,347 287,087 |
Schedule of equivalent euro value of assets and liabilities | Equivalent value in millions of euros 2017 2016 2015 Assets Liabilities Assets Liabilities Assets Liabilities Cash, cash balances at Central Banks and other deposits on demand 67,025 — 60,423 — 65,886 — Financial assets/liabilities held for trading 82,004 76,459 100,083 70,958 93,699 66,576 Other financial assets/liabilities at fair value through profit or loss 7,322 21,766 6,965 16,667 7,367 21,546 Financial assets/liabilities available-for-sale 65,691 — 68,370 — 68,012 — Loans and receivables 553,301 — 571,829 — 569,013 — Investments held-to-maturity 11,490 — 12,272 — 2,342 — Investments 1,121 — 1,308 — 1,191 — Tangible assets 15,971 — 16,957 — 15,005 — Intangible assets 23,499 — 26,338 — 26,377 — Financial liabilities at amortized cost — 638,680 — 678,542 — 668,014 Liabilities under insurance contracts — 58 — 61 — 1 Other 23,695 20,989 27,961 23,169 23,622 22,626 851,119 757,952 892,506 789,397 872,514 778,763 |
Schedule of financial assets measured at other than fair value | Millions of euros 2017 2016 2015 Carrying Fair Carrying Fair Carrying Fair Assets amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3 Loans and advances — — — Debt instruments 31,034 31,094 10,994 13,688 6,412 27,705 27,417 11,529 11,678 4,210 15,262 15,071 4,310 9,333 1,428 916,504 926,739 10,994 155,527 760,218 854,472 861,236 11,529 138,902 710,805 840,511 845,911 4,310 167,343 674,258 |
Schedule of financial liabilities measured at other than fair value | Millions of euros 2017 2016 2015 Carrying Fair Carrying Fair Carrying Fair Liabilities amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3 amount value Level 1 Level 2 Level 3 Deposits — — — Debt instruments and other financial liabilities 1,044,240 1,047,930 43,306 276,627 727,997 1,039,343 1,041,841 62,539 272,314 706,988 |
Schedule of sovereign risk | The detail at December 31, 2017, 2016 and 2015, by type of financial instrument, of the Group's sovereign risk exposure to Europe's peripheral countries and of the short positions held with them, taking into consideration the criteria established by the European Banking Authority (EBA) (See note 54) is as follows: Sovereign risk by country of issuer/borrower at December 31, 2017 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated at Financial Loans and fair value assets Held-to- advances to Total net through profit Short available- Loans and maturity customers direct Other than or loss positions for-sale receivables investments (**) exposure (****) CDSs CDSs Spain 6,940 (2,012) 37,748 1,585 1,906 16,470 62,637 (21) — Portugal 208 (155) 5,220 232 3 3,309 8,817 — — Italy 1,962 (483) 4,613 — — 16 6,108 (5) 5 Greece — — — — — — — — — Ireland — — — — — — — — — (*) Information prepared under EBA standards. Also, there are government debt securities on insurance companies’ balance sheets amounting to €11,673 million (of which €10,079 million, €1,163 million and €431 million relate to Spain, Portugal and Italy, respectively) and off-balance-sheet exposure other than derivatives – contingent liabilities and commitments– amounting to €3,596 million (€3,010 million, €146 million and €440 million to Spain, Portugal and Italy, respectively). (**) Presented without taking into account the Other comprehensive income recognized (€31 million). (***) "Other than CDSs" refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. (****) €19,601 million were included within the direct exposures of the Balance Sheet mainly from debt securities of Grupo Banco Popular. Sovereign risk by country of issuer/borrower at December 31, 2016 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated at Financial Loans and fair value assets Held-to- advances to Total net through profit Short available- Loans and maturity customers direct Other than or loss positions for-sale receivables investments (**) exposure CDSs CDSs Spain 8,943 (4,086) 23,415 1,516 1,978 14,127 45,893 (176) — Portugal 154 (212) 5,982 214 4 930 7,072 — — Italy 2,211 (758) 492 — — 7 1,952 (2) 2 Greece — — — — — — — — — Ireland — — — — — — — — — (*) Information prepared under EBA standards. Also, there are government debt securities on insurance companies’ balance sheets amounting to €10,502 million (of which €9,456 million, €717 million and €329 million relate to Spain, Portugal and Italy, respectively) and off-balance-sheet exposure other than derivatives – contingent liabilities and commitments– amounting to €5,449 million (€5,349 million, €91 million and €9 million to Spain, Portugal and Italy, respectively). (**) Presented without taking into account the Other comprehensive income recognized (€27 million). (***) “Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. Sovereign risk by country of issuer/borrower at December 31, 2015 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated at Financial Loans and fair value assets Held-to- advances to Total net through profit Short available- Loans and maturity customers direct Other than or loss positions for-sale receivables investments (**) exposure CDSs CDSs Spain 7,647 (2,446) 26,443 1,032 2,025 13,993 48,694 (217) — Portugal 278 (174) 7,916 916 — 1,071 10,007 — 1 Italy 3,980 (1,263) — — — — 2,717 (4) 4 Greece — — — — — — — — — Ireland — — — — — — — 6 — (*) Information prepared under EBA standards. Also, there are government debt securities on insurance companies' balance sheets amounting to €11,273 million (of which €9,892 million, €605 million and €776 million relate to Spain, Portugal and Italy, respectively) and off-balance-sheet exposure other than derivatives –contingent liabilities and commitments– amounting to €3,134 million (€3,045 million and €89 million to Spain and Portugal, respectively). (**) Presented without taking into account the Other comprehensive income recognized (€31 million). (***) "Other than CDSs" refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. |
Schedule of other counterparties risk | The detail of the Group's other exposure to other counterparties (private sector, central banks and other public entities that are not considered to be sovereign risks) in the aforementioned countries at December 31, 2017, 2016 and 2015 is as follows: Exposure to other counterparties by country of issuer/borrower at December 31, 2017 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated Financial Loans and Balances Reverse at fair value assets Investments advances to Total net with central repurchase through profit or available-for- Loans and held-to- customers direct Other than banks agreements loss sale receivables maturity (Note 10)(*) exposure CDSs CDSs Spain 36,091 6,932 623 4,784 — 210,976 2,299 2 Portugal 761 178 160 764 4,007 106 35,650 41,626 1,416 — Italy 17 2,416 438 1,010 — — 10,015 13,896 211 5 Greece — — — — — — 56 56 30 — Ireland — — 20 476 — 1,981 79 — (*) Also, the Group has off-balance-sheet exposure other than derivatives -contingent liabilities and commitments- amounting to €81,072 million, €8,936 million, €4,310 million, €200 million and €714 million, of which Grupo Banco Popular €15,460 million, to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively. (**) Presented excluding Other comprehensive income and impairment losses recognized (€10,653 million of which around €3,986 of Grupo Banco Popular). (***) “Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. (****) €83,625 million were included within the direct exposures of the Balance Sheet mainly from debt securities of Grupo Banco Popular. Exposure to other counterparties by country of issuer/borrower at December 31, 2016 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated Financial Loans and Balances Reverse at fair value assets Investments advances to Total net with central repurchase through profit or available-for- Loans and held-to- customers direct Other than banks agreements loss sale receivables maturity (Note 10)(*) exposure CDSs CDSs Spain 9,640 8,550 1,223 4,663 711 — 147,246 172,033 2,977 (16) Portugal 655 — 84 426 3,936 240 28,809 34,150 1,600 — Italy 26 — 818 732 — — 6,992 8,568 161 6 Greece — — — — — — 47 47 34 — Ireland — — 45 396 77 — 985 1,503 690 — (*) Also, the Group has off-balance-sheet exposure other than derivatives -contingent liabilities and commitments- amounting to €64,522 million, €6,993 million, €3,364 million, €268 million and €369 million to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively. (**) Presented excluding Other comprehensive income and impairment losses recognized (€8,692 million). (***) “Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. Exposure to other counterparties by country of issuer/borrower at December 31, 2015 (*) Millions of euros Debt instruments Derivatives (***) Financial assets held for trading and Financial assets designated Financial Loans and Balances Reverse at fair value assets advances to Total net with central repurchase through profit or available-for- Loans and customers direct Other than banks agreements loss sale receivables (Note 10) (*) exposure CDSs CDSs Spain 2,349 15,739 1,545 4,166 1,143 153,863 178,805 3,367 (42) Portugal 2,938 — 159 992 2,999 29,928 37,016 1,729 — Italy 5 — 167 813 — 6,713 7,698 35 5 Greece — — — — — 44 44 32 — Ireland — — 63 239 40 734 1,076 300 — (*) Also, the Group has off-balance-sheet exposure other than derivatives -contingent liabilities and commitments- amounting to €64,159 million, €6,374 million, €3,746 million, €17 million and €387 million to counterparties in Spain, Portugal, Italy, Greece and Ireland, respectively. (**) Presented excluding Other comprehensive income and impairment losses recognized (€11,641 million). (***) “Other than CDSs” refers to the exposure to derivatives based on the location of the counterparty, irrespective of the location of the underlying. “CDSs” refers to the exposure to CDSs based on the location of the underlying. |
Schedule of credit default swaps | 31/12/17 Millions of euros Notional amount Fair value Bought Sold Net Bought Sold Net Spain Sovereign — — — — — — Other 324 499 (175) (3) 5 2 Portugal Sovereign 25 128 (103) (1) 1 — Other 1 1 — — — — Italy Sovereign 25 450 (425) — 5 5 Other 225 201 24 (3) 8 5 31/12/16 Millions of euros Notional amount Fair value Bought Sold Net Bought Sold Net Spain Sovereign — — — — — — Other 534 751 (217) (3) (13) (16) Portugal Sovereign 28 290 (262) 1 (1) — Other — 6 (6) — — — Italy Sovereign 78 503 (425) — 2 2 Other 317 362 (45) (1) 7 6 31/12/15 Millions of euros Notional amount Fair value Bought Sold Net Bought Sold Net Spain Sovereign — — — — — — Other 724 991 (267) (3) (39) (42) Portugal Sovereign 28 187 (159) — 1 1 Other 71 77 (6) — — — Italy Sovereign 183 448 (265) (1) 5 4 Other 553 618 (65) 3 2 5 |
Geographical and business se108
Geographical and business segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Geographical and business segment reporting | |
Schedule of condensed balance sheet and income statements of various geographical and business segments | The condensed balance sheets and income statements of the various geographical segments are as follows: Millions of euros 2017 Continental United Latin United Corporate Intra-Group (Condensed) balance sheet Europe Kingdom America States center eliminations Total Total Assets 694,697 361,230 290,818 114,388 133,353 (150,181) 1,444,305 Loans and advances to customers 382,855 243,616 146,133 71,963 5,326 (978) 848,915 Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions 128,185 56,762 55,935 13,300 400 (66,157) 188,425 Debt instruments 100,188 26,188 57,364 13,843 1,768 — 199,351 Other financial Assets (*) 39,918 24,690 14,226 3,368 2,117 — 84,319 Other asset accounts 43,551 9,974 17,160 11,914 123,742 (83,046) 123,295 Total Liabilities Customer deposits 354,272 230,504 141,543 51,189 222 — 777,730 Central Banks and Credit institutions 172,987 27,833 39,212 15,884 1,533 (67,135) 190,314 Debt instruments 61,214 61,112 34,434 26,176 35,030 — 217,966 Other financial liabilities (**) 45,920 21,167 36,084 2,503 1,625 — 107,299 Other liabilities accounts 17,331 4,310 10,994 3,437 8,091 — 44,163 Total Equity 42,973 16,304 28,551 15,199 86,852 (83,046) 106,833 Other Customer funds under management 74,314 8,657 80,732 2,871 — — 166,574 Investment funds 52,320 8,543 74,435 452 — — 135,750 Pension funds 11,566 — — — — — 11,566 Assets under management 10,428 114 6,297 2,419 — — 19,258 (*) Including Trading derivatives and Equity instruments. (**) Including Trading derivatives, Short positions and Other financial liabilities. Millions of euros 2016 Continental United Latin United Corporate Intra-Group (Condensed) balance sheet Europe Kingdom America States center eliminations Total Total Assets 520,134 354,960 320,768 137,391 132,154 (126,282) 1,339,125 Loans and advances to customers 297,214 251,251 152,187 85,389 4,429 — 790,470 Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions 77,232 36,643 67,400 16,970 2,640 (47,744) 153,141 Debt instruments 80,639 28,045 63,314 17,940 1,374 — 191,312 Other financial Assets (*) 40,689 26,819 18,696 3,566 2,803 — 92,573 Other asset accounts 24,360 12,202 19,171 13,526 120,908 (78,538) 111,629 Total Liabilities Customer deposits 269,934 212,113 143,747 64,460 857 — 691,111 Central Banks and Credit institutions 105,152 21,590 47,585 22,264 552 (47,745) 149,398 Debt instruments 53,064 71,108 47,436 26,340 30,921 — 228,869 Other financial liabilities (**) 49,042 27,913 41,395 2,907 2,633 — 123,890 Other liabilities accounts 9,452 5,221 11,291 4,770 12,424 — 43,158 Total Equity 33,490 17,015 29,314 16,650 84,767 (78,537) 102,699 Other Customer funds under management 65,834 8,564 81,034 3,828 — — 159,260 Investment funds 46,229 8,446 74,554 701 — — 129,930 Pension funds 11,298 — — — — — 11,298 Assets under management 8,307 118 6,480 3,127 — — 18,032 (*) Including Tangible assets and Other intangible assets. (**) Including, in addition to liability items not broken down, the balances of Non-controlling interests. Millions of euros 2015 Continental United Latin United Corporate Intra-Group (Condensed) balance sheet Europe Kingdom America States center eliminations Total Total Assets 538,645 383,155 267,885 130,584 148,134 (128,143) 1,340,260 Loans and advances to customers 287,252 282,673 133,139 84,190 3,594 — 790,848 Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions 92,414 38,509 51,275 11,527 17,536 (50,980) 160,281 Debt instruments 85,665 20,308 50,085 19,693 4,379 — 180,130 Other financial Assets (*) 46,681 32,871 15,489 3,187 2,200 — 100,428 Other asset accounts 26,633 8,794 17,897 11,987 120,425 (77,163) 108,573 Total Liabilities Customer deposits 263,462 231,947 122,413 60,115 5,205 — 683,142 Central Banks and Credit institutions 132,688 23,610 42,395 26,170 1,490 (50,980) 175,373 Debt instruments 51,103 74,260 39,526 23,905 37,366 — 226,160 Other financial liabilities (**) 49,798 29,000 30,417 2,772 2,668 — 114,655 Other liabilities accounts 5,748 6,975 9,160 4,465 15,829 — 42,177 Total Equity 35,846 17,363 23,974 13,157 85,576 (77,163) 98,753 Other Customer funds under management 64,433 9,703 59,065 7,540 — — 140,741 Investment funds 44,393 9,564 54,426 645 — — 109,028 Pension funds 11,376 — — — — — 11,376 Assets under management 8,664 139 4,639 6,895 — — 20,337 (*) Including Tangible assets and Other intangible assets. (**) Including, in addition to liability items not broken down, the balances of Non-controlling interests. Millions of euros 2017 (Condensed) Continental United Latin United Corporate income statement Europe Kingdom America States center Total INTEREST INCOME / (CHARGES) 9,270 4,364 15,944 5,569 (851) 34,296 Income from equity instruments 274 1 44 20 45 384 Income from companies accounted for using the equity method 378 32 369 (11) (64) 704 Net fee and commission income (expense) 4,171 1,003 5,490 971 (38) 11,597 Other income(*) 626 282 1,012 (29) (226) 1,665 Other operating income (expenses) (256) 34 (386) 401 (84) (291) TOTAL INCOME 14,463 5,716 22,473 6,921 (1,218) 48,355 Administrative expenses and depreciation (7,688) (2,862) (8,694) (3,274) (475) (22,993) Provisions or reversal of provisions (990) (429) (1,145) (174) (320) (3,058) Impairment losses on financial assets (1,111) (205) (5,014) (2,878) (51) (9,259) Impairment losses on other assets (189) (50) (112) (27) (895) (1,273) Other income and charges (115) 14 (31) 16 435 319 OPERATING PROFIT/(LOSS) BEFORE TAX 4,370 2,184 7,477 584 (2,524) 12,091 Income tax (1,158) (661) (2,380) 116 199 (3,884) PROFIT FROM CONTINUING OPERATIONS 3,212 1,523 5,097 700 (2,325) 8,207 Profit (Loss) from discontinued operations — — — — — — CONSOLIDATED PROFIT FOR THE YEAR 3,212 1,523 5,097 700 (2,325) 8,207 Attributable to non-controlling interests 381 25 813 368 (1) 1,588 PROFIT ATTRIBUTABLE TO THE PARENT 2,831 1,498 4,284 332 (2,326) 6,619 (*) Millions of euros 2016 2015 (Condensed) Continental United Latin United Corporate Continental United Latin United Corporate income statement Europe Kingdom America States center Total Europe Kingdom America States center Total INTEREST INCOME / (CHARGES) 8,161 4,405 13,345 5,917 (739) 31,089 8,006 4,942 13,752 6,116 (4) 32,812 Income from equity instruments 272 1 78 30 32 413 277 1 57 48 72 455 Income from companies accounted for using the equity method 168 16 309 2 (51) 444 120 10 285 3 (43) 375 Net fee and commission income (expense) 3,497 1,031 4,581 1,102 (31) 10,180 3,417 1,091 4,452 1,086 (13) 10,033 Other income (*) 818 319 806 22 136 2,101 1,186 302 517 231 150 2,386 Other operating income (expenses) (110) 44 (355) 460 (34) 5 (178) 37 (308) 316 (33) (166) TOTAL INCOME 12,806 5,816 18,764 7,533 (687) 44,232 12,828 6,383 18,755 7,800 129 45,895 Administrative expenses and depreciation (6,781) (2,967) (7,692) (3,197) (464) (21,101) (6,735) (3,357) (7,906) (3,025) (697) (21,720) Provisions or reversal of provisions (444) (276) (800) (72) (916) (2,508) (352) (351) (831) (164) (1,408) (3,106) Impairment losses on financial assets (1,383) (58) (4,912) (3,187) (86) (9,626) (2,083) (107) (5,108) (3,103) (251) (10,652) Impairment losses on other assets (36) (64) (42) (35) 37 (140) (172) (9) 20 — (931) (1,092) Other income and charges (150) 1 59 (6) 7 (89) (120) 5 78 16 243 222 OPERATING PROFIT/(LOSS) BEFORE TAX 4,012 2,452 5,377 1,036 (2,109) 10,768 3,366 2,564 5,008 1,524 (2,915) 9,547 Income tax (1,083) (736) (1,363) (355) 255 (3,282) (887) (556) (1,219) (517) 966 (2,213) PROFIT FROM CONTINUING OPERATIONS 2,929 1,716 4,014 681 (1,854) 7,486 2,479 2,008 3,789 1,007 (1,949) 7,334 Profit (Loss) from discontinued operations — — — — — — — — — — — — CONSOLIDATED PROFIT FOR THE YEAR 2,929 1,716 4,014 681 (1,854) 7,486 2,479 2,008 3,789 1,007 (1,949) 7,334 Attributable to non-controlling interests 330 36 628 286 2 1,282 261 37 596 329 145 1,368 PROFIT ATTRIBUTABLE TO THE PARENT 2,599 1,680 3,386 395 (1,856) 6,204 2,218 1,971 3,193 678 (2,094) 5,966 (*) Following is the detail of revenue by the geographical segments used by the Group. For the purposes of the table below, revenue is deemed to be that recognized under Interest and similar income, Income from equity instruments, Fee and commission income, Other income (without considering exchange differences, net) and Other operating income in the consolidated income statements for 2017, 2016 and 2015. Revenue (Millions of euros) Revenue from external Inter-segment customers revenue Total revenue 2017 2016 2015 2017 2016 2015 2017 2016 2015 Continental Europe 19,041 16,567 17,653 504 236 422 19,545 16,803 18,075 United Kingdom 8,837 9,626 10,970 (130) 390 416 8,707 10,016 11,386 Latin America 37,623 36,972 32,927 230 54 (776) 37,853 37,026 32,151 United States 8,663 9,322 9,364 186 281 157 8,849 9,603 9,521 Corporate center 18 1,672 982 4,018 4,507 6,643 4,036 6,179 7,625 Inter-segment revenue adjustments and eliminations — — — (4,808) (5,468) (6,862) (4,808) (5,468) (6,862) 74,182 74,159 71,896 — — — 74,182 74,159 71,896 The condensed income statements are as follows: Millions of euros 2017 Santander Global Real estate Commercial Corporate operations in Corporate (Condensed) income statement banking Banking Spain center Total INTEREST INCOME / (CHARGES) 32,704 2,478 (35) (851) 34,296 Income from equity instruments 77 262 — 45 384 Income from companies accounted for using the equity method 781 (13) — (64) 704 Net fee and commission income (expense) 10,007 1,627 1 (38) 11,597 Other income (*) 667 1,224 — (226) 1,665 Other operating income (expenses) (210) (26) 29 (84) (291) TOTAL INCOME 44,026 5,552 (5) (1,218) 48,355 Administrative expenses and depreciation (20,323) (1,988) (207) (475) (22,993) Provisions or reversal of provisions (2,718) (24) 4 (320) (3,058) Impairment losses on financial assets (8,440) (690) (78) (51) (9,259) Net impairment losses on other assets (206) (51) (121) (895) (1,273) Other non-financial gains/(losses) (74) 5 (47) 435 319 OPERATING PROFIT/(LOSS) BEFORE TAX 12,265 2,804 (454) (2,524) 12,091 Income tax (3,417) (802) 136 199 (3,884) PROFIT FROM CONTINUING OPERATIONS 8,848 2,002 (318) (2,325) 8,207 Profit (Loss) from discontinued operations — — — — — CONSOLIDATED PROFIT FOR THE YEAR 8,848 2,002 (318) (2,325) 8,207 Attributable to non-controlling interests 1,421 181 (15) 1 1,588 PROFIT ATTRIBUTABLE TO THE PARENT 7,427 1,821 (303) (2,326) 6,619 (*) Millions of euros 2016 2015 Santander Santander Global Real estate Global Real estate Commercial Corporate operations Corporate Commercial Corporate operations Corporate (Condensed) income statement banking Banking in Spain center Total banking Banking in Spain center Total INTEREST INCOME / (CHARGES) 29,090 2,781 (43) (739) 31,089 30,027 2,830 (41) (4) 32,812 Income from equity instruments 131 250 — 32 413 124 259 — 72 455 Income from companies accounted for using the equity method 505 (7) (3) (51) 444 434 (6) (10) (43) 375 Net fee and commission income (expense) 8,745 1,465 1 (31) 10,180 8,621 1,425 — (13) 10,033 Other income (*) 663 1,293 9 136 2,101 1,346 739 151 150 2,386 Other operating income (expenses) (79) 43 75 (34) 5 (194) 24 37 (33) (166) TOTAL INCOME 39,055 5,825 39 (687) 44,232 40,358 5,271 137 129 45,895 Administrative expenses and depreciation (18,475) (1,951) (211) (464) (21,101) (18,730) (2,058) (235) (697) (21,720) Provisions or reversal of provisions (1,547) (40) (5) (916) (2,508) (1,656) (51) 9 (1,408) (3,106) Impairment losses on financial assets (8,713) (660) (167) (86) (9,626) (9,462) (688) (251) (251) (10,652) Net impairment losses on other assets (97) (59) (21) 37 (140) 2 (37) (126) (931) (1,092) Other non-financial gains/(losses) (22) 22 (96) 7 (89) 117 4 (142) 243 222 OPERATING PROFIT/(LOSS) BEFORE TAX 10,201 3,137 (461) (2,109) 10,768 10,629 2,441 (608) (2,915) 9,547 Income tax (2,799) (876) 138 255 (3,282) (2,663) (695) 179 966 (2,213) PROFIT FROM CONTINUING OPERATIONS 7,402 2,261 (323) (1,854) 7,486 7,966 1,746 (429) (1,949) 7,334 Profit (Loss) from discontinued operations — — — — — — — — — — CONSOLIDATED PROFIT FOR THE YEAR 7,402 2,261 (323) (1,854) 7,486 7,966 1,746 (429) (1,949) 7,334 Attributable to non-controlling interests 1,105 172 3 2 1,282 1,112 120 (9) 145 1,368 PROFIT ATTRIBUTABLE TO THE PARENT 6,297 2,089 (326) (1,856) 6,204 6,854 1,626 (420) (2,094) 5,966 (*) |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related parties | |
Schedule of related party transactions | Millions of euros 2017 2016 2015 Members Members Members Associates of the Other Associates of the Other Associates of the Other and joint Board of Executive related and joint Board of Executive related and joint Board of Executive related ventures Directors vice-presidents parties ventures Directors vice-presidents parties ventures Directors vice-presidents parties Assets: 6,048 — 21 300 5,884 — 22 307 6,542 — 28 573 Loans and advances: Credit institutions 472 — — — 223 — — - 8 — — — Loans and advances: Customers 5,081 — 21 279 5,209 — 22 286 5,997 — 28 293 Debt instruments 473 — — 21 452 — — 21 537 — — 280 Others 22 — — — — — — — — — — — Liabilities: 748 19 14 63 824 27 10 124 1,122 25 16 103 Financial liabilities: Credit institutions 309 — — — 155 — — — 501 — — — Financial liabilities:Customers 414 19 14 63 669 27 10 124 620 25 16 103 Marketable debt securities 4 — — — — — — — 1 — — — Others 21 — — — — — — — — — — — Income statement: 1,020 — — 14 609 — — 13 802 — — 24 Interest income 57 — — 8 67 — — 10 98 — — 17 Interest expense (3) — — — (15) — — (1) (15) — — — Gains/losses on financial assets and liabilities and others 302 — — — 15 — — — 73 — — — Commission income 735 — — 6 561 — — 4 664 — — 8 Commission expense (71) — — — (19) — — — (18) — — (1) Other: 3,881 7 3 597 4,146 1 3 846 4,123 2 4 2,682 Contingent liabilities and others 6 6 1 352 19 — — 139 46 — — 191 Contingent commitments 301 1 2 60 17 1 3 417 95 2 4 132 Derivative financial instruments 3,574 — — 185 4,110 — — 290 3,982 — — 2,359 |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risk management | |
Main credit risk aggregates arising on customer business | Credit risk with customers 1 Non ‑ performing rate Coverage rate (millions of euros) (%) (%) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Continental Europe 337,768 331,706 321,395 4.50 5.92 7.27 58.0 60.0 64.2 Spain 172,176 172,974 173,032 4.72 5.41 6.53 45.9 48.3 48.1 Santander Consumer Finance 92,589 88,061 76,688 2.50 2.68 3.42 101.4 109.1 109.1 Portugal 32,816 31,922 5.71 8.81 7.46 59.1 63.7 99.0 Poland 24,391 21,902 20,951 4.57 5.42 6.30 68.2 61.0 64.0 UK 247,625 255,049 282,182 1.33 1.41 1.52 32.0 32.9 38.2 Latin América 165,683 151,302 4.50 4.81 4.96 84.6 87.3 79.0 Brasil 83,076 89,572 72,173 5.29 5.90 5.98 92.6 93.1 83.7 Mexico 28,939 29,682 32,463 2.69 2.76 3.38 97.5 103.8 90.6 Chile 40,406 40,864 35,213 4.96 5.05 5.62 58.2 59.1 53.9 Argentina 8,085 7,318 6,328 2.50 1.49 1.15 100.1 142.3 194.2 US 91,709 90,727 2.79 2.28 2.13 170.2 214.4 225.0 Puerto Rico 2,944 3,843 3,924 7.13 7.13 6.96 55.2 54.4 48.5 Santander Bank 44,237 54,089 1.21 1.33 1.16 102.2 99.6 114.5 SC USA 24,079 5.86 3.84 3.66 212.9 328.0 337.1 Total Grupo excluding Banco Popular 832,655 850,909 3.38 3.93 4.36 70.8 73.8 73.1 Banco Popular 88,313 — — 10.75 — — 48.7 — — Total Grupo 920,968 850,909 4.08 3.93 4.36 65.2 73.8 73.1 (1) Includes gross lending to customers, guarantees and documentary credits. |
Schedule of reconciliation of portfolio | Millions of euros 2017 2016 2015 Balance at beginning of year 498 291 144 Net impairment losses for the year (*) 348 380 211 Of which: Impairment losses charged to income 386 423 223 Impairment losses reversed with a credit to income (38) (43) (12) Exchange differences and other items (116) (172) (64) Balance at end of year 730 498 291 Of which: By geographical location of risk: European Union 30 40 34 Latin America 700 458 257 (*) Of which: Loans and advances 348 405 92 Financial assets available for sale — (25) 119 |
Schedule of on and off-balance sheet assets provided as security in transactions to obtain liquidity | On-balance-sheet encumbered assets Carrying amount of non- Carrying amount of encumbered Thousands of millions of euros encumbered assets assets Loans and advances 224.9 803.9 Equity instruments 16.3 10.8 Debt securities 89.8 109.6 Other assets 18.6 170.5 Total assets 349.6 1,094.7 Encumbrance of collateral received Fair value of Fair value of collateral received encumbered or own debt collateral received securities issued or own debt available for Thousands of millions of euros securities issued encumbrance Collateral received 86.7 27.2 Loans and advances — — Equity instruments 3.2 5.5 Debt securities 81.6 21.7 Other collateral received 1.9 — Own debt securities issued other than own covered bonds or ABSs — 3.6 Encumbered assets and collateral received and matching liabilities Assets, collateral received Matching liabilities, and own debt securities contingent liabilities or issued other than covered bonds Thousands of millions of euros securities lent and ABSs encumbered Total sources of encumbrance (carrying amount) 330.7 436.3 |
Schedule of regulatory capital | Reconciliation of accounting capital with regulatory capital (Millions of Euros) 2017 2016 Subscribed capital 8,068 7,291 Share Premium account 51,053 44,912 Reserves 52,577 49,244 Treasury shares Attributable profit 6,619 6,204 Approved dividend Shareholders’ equity on public balance sheet 116,265 105,978 Valuation Adjustments Non-controlling interests 12,344 11,761 Total Equity on public balance sheet 106,833 102,699 Goodwill and intangible assets Eligible preference shares and preferred securities 7,635 6,469 Accrued dividend Other adjustments (*) Tier I (Phase-in) 77,283 73,709 (1) The following table shows the Phase-in capital coefficients and a detail of the eligible internal resources of the Group: 2017 2016 Capital coefficients Level 1 ordinary eligible capital (millions of euros) 74,173 73,709 Level 1 additional eligible capital (millions of euros) 3,110 — Level 2 eligible capital (millions of euros) 13,422 12,628 Risk-weighted assets (millions of euros) 605,064 588,088 Level 1 ordinary capital coefficient (CET 1) 12.26 % 12.53 % Level 1 additional capital coefficient (AT1) 0.51 % — Level 1 capital coefficient (TIER1) 12.77 % 12.53 % Level 2 capital coefficient (TIER 2) 2.22 % 2.15 % Total capital coefficient 14.99 % 14.68 % Eligible capital (Millions of Euros) Eligible capital 2017 2016 Common Equity Tier I 74,173 73,709 Capital 8,068 7,291 (-) Treasure shares and own shares financed Share Premium 51,053 44,912 Reserves 52,241 49,234 Other retained earnings Minority interests 7,991 8,018 Profit net of dividends 3,621 3,735 Deductions Goodwill and intangible assets Others Additional Tier I 3,110 — Eligible InstrumentsAT1 8,498 6,469 T1-excesses-subsidiaries 347 351 Residual value of dividends Others — Tier II 13,422 12,628 Eligible Instruments T2 9,901 9,039 Gen. Funds and surplus loans loss prov. IRB 3,823 3,493 T2-excesses - subsidiaries 96 Others — Total eligible capital 90,706 86,337 |
Schedule of leverage capital and ratios | Millions of Euros 31-12-2017 31-12-2016 Leverage Level 1 Capital 77,283 73,709 Exposure 1,463,090 1,364,889 Leverage Ratio 5.28 % 5.40 % |
Forborne loan portfolio | |
Risk management | |
Schedule summarising risk profile | 31-12-2017 Total Of which: Non‑performing/Doubtful Without real guarantee Impairment Impairment (a) With real guarantee of Without real guarantee With real guarantee of Maximum amount of the accumulated Maximum amount of the accumulated actual collateral that can value or actual collateral that can value or be considered. accumulated be considered. accumulated Amounts in millions of euros, except Real Rest of losses in fair Real Rest of losses in fair number of operations that are in Number of Gross Number of Gross estate real value due to Number of Gross Number of Gross estate real value due to units. transactions amount transactions amount guarantee guarantees credit risk transactions amount transactions amount guarantee guarantees credit risk Credit entities — — — — — — — — — — — — — — Public sector 55 89 21 22 11 5 2 22 8 13 7 7 — 2 Other financial institutions and: individual shareholder 248 45 120 60 40 10 25 79 2 59 22 8 7 13 Non-financial institutions and individual shareholder 259,792 9,631 45,746 13,663 9,255 1,075 7,106 109,973 5,522 21,265 7,839 5,531 414 6,233 Of which: Financing for constructions and property development 1,259 236 2,861 2,612 2,125 30 1,111 803 130 2,099 1,718 1,363 24 847 Other warehouses 1,919,831 4,568 878,272 19,627 9,480 3,896 4,408 755,948 1,819 126,086 4,824 3,234 428 2,864 Total 2,179,926 14,333 924,159 33,372 18,786 4,986 11,541 866,022 7,351 147,423 12,692 8,780 849 9,112 Financing classified as non-current assets and disposable groups of items that have been classified as held for sale 2,921 1,255 4,110 4,893 2,140 69 3,497 2,895 1,253 4,000 4,853 2,102 69 3,496 |
Schedule of reconciliation of portfolio | Millions of euros 2017 Beginning balance 37,365 Refinancing and restructuring of the period 12,675 Memorandum item: Impact recorded in the income statement for the period 2,406 Debt repayment Foreclosure Derecognized from the consolidated balance sheet Others variations (*) 1,515 Balance at end of year 36,164 (*) Included €7,020 million refinancing loans from Grupo Banco Popular Acquisition. |
Foreclosed properties | |
Risk management | |
Schedule summarising risk profile | 31/12/17 Of which: Impairment Gross losses on assets carrying Valuation since time of Carrying Millions of euros amount adjustments foreclosure amount Property assets arising from financing provided to construction and property development companies 2,343 Of which: Completed buildings 781 Residential 311 Other 470 Buildings under construction 51 Residential Other — — Land 1,511 Developed land 287 Other land 1,224 Property assets from home purchase mortgage loans to households 379 Other foreclosed property assets 54 Total property assets 2,776 |
Schedule of reconciliation of portfolio | Thousands of millions of euros (*) 2017 2016 2015 Gross additions 1.4 1.3 1.7 Disposals (1.9) (1.3) (1.1) Difference (0.5) — 0.6 (*) Without considering the Blackstone operation (See Note 3). |
Real estate operations in Spain | |
Risk management | |
Schedule summarising risk profile | 12/31/17 Excess over collateral Specific Millions of euros Gross amount value allowance Financing for construction and property development recognized by the Group's credit institutions (including land) (business in Spain) 6,472 1,513 1,131 Of which:Watchlist/ Non-performing 1,939 708 751 Memorandum items: Written-off assets 3,133 Memorandum items: Data from the public consolidated balance sheet 12/31/17 Carrying Millions of euros amount Total loans and advances to customers excluding the public sector (business in Spain) 235,140 Total consolidated assets 1,444,305 Impairment losses and credit risk allowances. Coverage for unimpaired assets (business in Spain) 1,289 |
Schedule of reconciliation of portfolio | Millions of euros 31/12/17 31/12/16 31/12/15 Balance at beginning of year 5,515 7,388 9,349 Foreclosed assets (27) (28) (62) Banco Popular (Perimeter) 2,934 — — Reductions (1) (1,620) (1,415) (1,481) Written-off assets (330) (430) (418) Balance at end of year 6,472 5,515 7,388 (1) Includes portfolio sales, cash recoveries and third-party subrogations. |
Disclosure of concentrations | Loans: Gross amount Millions of euros 12/31/17 1. Without mortgage guarantee 664 2. With mortgage guarantee 5,808 2.1 Completed buildings 3,684 2.1.1 Residential 1,726 2.1.2 Other 1,958 2.2 Buildings and other constructions under construction 995 2.2.1 Residential 562 2.2.2 Other 433 2.3 Land 1,129 2.3.1 Developed consolidated land 900 2.3.2 Other land 229 Total 6,472 |
Spain | Home purchase loans | |
Risk management | |
Schedule summarising risk profile | 31/12/17 Gross Of which: In millions of euros amount Non - performing Home purchase loans to families 64,588 2,594 Without mortgage guarantee 532 147 With mortgage guarantee 64,056 2,447 |
Disclosure of concentrations | 31/12/17 Loan to value ratio More than More than More than 40% and 60% and 80% and Less than or less than less than less than or More than In millions of euros equal to 40% 60% 80% equal to 100% 100% Total Gross amount 14,430 17,434 19,232 7,899 5,061 64,056 Of which: Watchlist /Non-performing 224 354 591 504 774 2,447 |
Credit risk | |
Risk management | |
Disclosure of concentrations | 31/12/17 (*) Other EU Rest of the Millions of euros Total Spain countries America world Central banks and Credit institutions 243,319 56,369 95,749 81,566 9,635 Public sector 196,358 76,011 49,208 66,537 4,602 Of which: Central government 166,926 62,707 37,416 62,244 4,559 Other central government 29,432 13,304 11,792 4,293 43 Other financial institutions (financial business activity) 81,392 16,250 39,440 19,393 6,309 Non-financial companies and individual entrepreneurs (Non-financial business activity) (broken down by purpose) 377,314 128,818 113,384 124,118 10,994 Of which: Construction and property development 30,451 8,179 5,003 17,077 192 Civil engineering construction 5,399 3,769 1,180 448 2 Large companies 206,250 54,517 65,606 76,691 9,436 SMEs and individual entrepreneurs 135,214 62,353 41,595 29,902 1,364 Households – other (broken down by purpose) 477,882 89,821 272,612 107,659 7,790 Of which: Residential 309,068 63,355 207,575 37,539 599 Consumer loans 145,619 16,288 62,584 62,248 4,499 Other purposes 23,195 10,178 2,453 7,872 2,692 Total (*) 1,376,265 367,269 570,393 399,273 39,330 (*) For the purposes of this table, the definition of risk includes the following items in the public balance sheet: Loans and advances to credit institutions, Loans and advances to Central Banks, Loans and advances to Customers, Debt Instruments, Equity Instruments, trading Derivatives, Hedging derivatives, Investments and financial guarantees given. |
Sovereign Risk | |
Risk management | |
Schedule summarising risk profile | 31/12/17 Millions of euros Portfolio Financial assets held for trading and Financial assets designated at fair Financial assets Held-to Total value through profit available-for- Loans and maturity net direct Country or loss (*) sale receivables investments exposure Spain 4,928 37,748 18,055 1,906 62,637 Portugal 53 5,220 3,541 3 8,817 Italy 1,479 4,613 16 — 6,108 Greece — — — — — Ireland — — — — — Rest of Eurozone 497 81 — United Kingdom 2 1,751 7,236 7,414 16,403 Poland 1,034 5,566 40 — 6,640 Rest of Europe 172 358 40 — 570 United States 2,548 2,616 765 — 5,929 Brazil 3,202 20,201 1,171 2,720 27,294 Mexico 1,780 5,152 2,586 — 9,518 Chile 428 2,985 312 — 3,725 Other American countries 147 424 940 — 1,511 Rest of the world 3,422 512 920 — 4,854 Total 18,003 87,643 35,703 12,043 153,392 (*) Includes short positions. In addition, at December 31, 2017 the Group had net direct derivative exposures the fair value of which amounted to €1,681 million and net indirect derivative exposures the fair value of which amounted to €15 million. 31/12/16 Millions of euros Portfolio Financial assets held for trading and Financial assets designated at fair Financial assets Held-to Total value through profit available-for- Loans and maturity net direct Country or loss (*) sale receivables investments exposure Spain 9,415 23,415 11,085 1,978 45,893 Portugal 5,982 1,143 4 7,072 Italy 1,453 492 7 — 1,952 Greece — — — — — Ireland — — — — — Rest of Eurozone 751 79 — United Kingdom 475 1,938 7,463 7,764 17,639 Poland 287 5,973 30 — 6,290 Rest of Europe — 502 289 — 791 United States 1,174 3,819 720 — 5,713 Brazil 4,044 16,098 1,190 2,954 24,286 Mexico 2,216 5,072 3,173 — 10,461 Chile 428 2,768 330 — 3,525 Other American countries 134 497 541 — 1,172 Rest of the world 1,903 889 683 — 3,475 Total 20,300 68,197 26,732 12,701 127,930 (*) Includes short positions. In addition, at December 31, 2016 the Group had net direct derivative exposures the fair value of which amounted to €2,505 million and net indirect derivative exposures the fair value of which amounted to €2 million. 31/12/15 Millions of euros Portfolio Financial assets held for trading and Financial assets designated at fair Financial assets Held-to Total value through profit available-for- Loans and maturity net direct Country or loss (*) sale receivables investments exposure Spain 8,954 26,443 11,272 2,025 48,694 Portugal 104 7,916 1,987 — 10,007 Italy 2,717 — — — 2,717 Greece — — — — — Ireland — — — — — Rest of Eurozone 143 69 — 1 United Kingdom 5,808 141 — 5,163 Poland 13 5,346 42 — 5,401 Rest of Europe 120 312 238 — 670 United States 280 4,338 475 — 5,093 Brazil 7,274 13,522 947 2,186 23,929 Mexico 6,617 3,630 272 — 10,519 Chile 193 1,601 3,568 — 5,362 Other American countries 155 1,204 443 — 1,802 Rest of the world 3,657 1,687 546 — 5,890 Total 29,087 71,950 20,000 4,211 125,248 (*) Includes short positions. |
Trading market risk | |
Risk management | |
Schedule summarising risk profile | Balance sheet Main market risk metric Millions of euros amount VaR Other Main risk factor for "Other" balance Assets subject to market risk 1,444,305 167,943 1,276,362 Cash and deposits at central banks 110,995 110,995 Interest rate Trading portfolio 125,458 124,924 534 Interest rate, spread Other financial assets at fair value 34,782 34,500 282 Interest rate, spread Available-for-sale financial assets 133,271 — 133,271 Interest rate, Equity market Participations 6,184 — 6,184 Equity market Hedging derivatives 8,537 8,519 18 Interest rate, exchange rate Investments 916,504 — 916,504 Interest rate Other financial assets 1 47,390 — 47,390 Interest rate Other non-financial assets 2 61,184 — 61,184 Liabilities subject to market risk 1,444,305 175,088 1,269,217 Trading portfolio 107,624 107,442 182 Interest rate, spread Other financial liabilities at fair value 59,616 59,609 7 Interest rate, spread Hedging derivatives 8,044 8,037 7 Interest rate, exchange rate Financial liabilities at amortized cost (3) 1,126,399 — 1,126,399 Interest rate Provisions 14,489 — 14,489 Interest rate Other financial liabilities 8,709 — 8,709 Interest rate Equity 106,833 — 106,833 Other non-financial liabilities 12,591 — 12,591 (1) Includes adjustment to macro hedging, non-current assets held for sale, reinsurance assets, and insurance contracts linked to pensions and fiscal assets (2) Includes intangible assets, material assets and other assets. (3) Macro-hedging adjustment. |
Disclosure of concentrations by risk factor | 2017 2016 2015 ES VaR (99%) (97.5%) VaR VaR Millions of euros Min Average Max Latest Latest Average Latest Average Latest Total 9.7 21.5 63.2 10.2 11.5 18.3 17.9 15.6 13.6 Diversification effect Interest rate 7.7 16.2 70.4 7.9 10.0 15.5 17.9 14.9 12.7 Equities 1.0 3.0 5.9 1.9 2.1 1.9 1.4 1.9 1.1 Exchange rate 2.1 6.6 15.7 3.3 2.8 6.9 4.8 4.5 2.6 Credit spread 2.3 3.6 5.1 4.6 4.6 4.2 3.3 5.2 2.9 Commodities 0.0 0.0 0.1 0.0 0.1 0.1 0.2 0.1 |
Structural risks | |
Risk management | |
Disclosure of concentrations by risk factor | Millions euros, VaR at a 99% over a one day horizon 2017 2016 2015 Min Average Max Latest Average Latest Average Latest Structural VaR Diversification Effect VaR Interest rate* VaR Exchange rate VaR Equities (*) Includes VaR for credit spread in ALCO portfolios. |
Other Disclosures - Separate111
Other Disclosures - Separate Financial Statements and Preference Shares and Preferred Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Parent Company Financial Statements And Preference Shares And Preferred Securities [Abstract] | |
Condensed Balance Sheet [Table Text Block] | CONDENSED BALANCE SHEETS (Parent company only) December 31, 2017 December 31, 2016 December 31, 2015 (Millions of Euros) Assets Cash and due from banks 76,690 49,979 63,790 Of which: To bank subsidiaries 20,818 11,442 10,471 Trading account assets 64,326 70,437 79,474 Investment securities 49,194 45,702 54,807 Of which: To bank subsidiaries 6,474 8,326 12,191 To non-bank subsidiaries 3,729 3,662 2,978 Net Loans and leases 197,591 195,532 200,046 Of which: To non-bank subsidiaries 33,113 35,085 36,204 Investment in affiliated companies 85,428 80,614 80,822 Of which: To bank subsidiaries 65,567 63,210 68,681 To non-bank subsidiaries 19,861 17,404 12,141 Premises and equipment, net 1,929 1,834 1,781 Other assets 17,257 17,146 17,554 Total assets 492,415 461,244 498,274 Liabilities Deposits 256,389 265,565 277,058 Of which: To bank subsidiaries 20,391 19,179 18,365 To non-bank subsidiaries 13,115 40,082 43,954 Short-term debt 40,540 19,110 36,353 Long-term debt 53,023 34,499 41,248 Total debt 93,563 53,609 77,601 Of which: To bank subsidiaries 1,138 - 770 To non-bank subsidiaries 2,966 14,062 17,310 Other liabilities 71,896 78,835 81,756 Total liabilities 421,848 398,009 436,415 Stockholders' equity Capital stock 8,068 7,291 7,217 Retained earnings and other reserves 62,499 55,944 54,642 Total stockholders' equity 70,567 63,235 61,859 Total liabilities and Stockholders’ Equity 492,415 461,244 498,274 |
Condensed Income Statement [Table Text Block] | CONDENSED STATEMENTS OF INCOME (Parent company only) December 31, 2017 December 31, 2016 December 31, 2015 (Millions of Euros) Interest income Interest from earning assets 5,733 6,023 6,948 Dividends from affiliated companies 3,320 3,459 3,235 Of which: From bank subsidiaries 2,580 2,686 2,786 From non-bank subsidiaries 740 773 449 9,053 9,482 10,183 Interest expense (3,204) (3,113) (3,582) Interest income / (Charges) 5,849 6,369 6,601 Provision for credit losses (451) (528) (1,002) Interest income / (Charges) after provision for credit losses 5,398 5,841 5,599 Non-interest income: 3,872 3,403 3,268 Non-interest expense: (6,293) (7,115) (6,836) Income before income taxes 2,977 2,129 2,031 Income tax expense 29 352 246 Net income 3,006 2,481 2,277 |
Condensed Statement of Comprehensive Income [Table Text Block] | CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parent company only) December 31, 2017 December 31, 2016 December 31, 2015 (Millions of Euros) NET INCOME 3,006 2,481 2,277 OTHER COMPREHENSIVE INCOME (356) 364 (356) Items that may be reclassified subsequently to profit or loss (341) 439 (293) Available-for-sale financial assets: (625) 619 (416) Revaluation gains/(losses) (283) 830 34 Amounts transferred to income statement (342) (211) (450) Other reclassifications - - - Cash flow hedges: (7) 4 (1) Revaluation gains/(losses) (7) 4 (1) Amounts transferred to income statement - - - Amounts transferred to initial carrying amount of hedged items - - - Other reclassifications - - - Hedges of net investments in foreign operations: - - (1) Revaluation gains/(losses) - - (1) Amounts transferred to income statement - - - Other reclassifications - - - Exchange differences: - - - Non-current assets held for sale: - - - Income tax 291 (184) 125 Items that will not be reclassified to profit or loss: (15) (75) (63) Actuarial gains/(losses) on pension plans (23) (106) (90) Income tax 8 31 27 TOTAL COMPREHENSIVE INCOME 2,650 2,845 1,921 |
Condensed Cash Flow Statement [Table Text Block] | CONDENSED CASH FLOW STATEMENTS (Parent company only) December 31, 2017 December 31, 2016 December 31, 2015 (Millions of Euros) 1. Cash flows from operating activities Consolidated profit 3,006 2,481 2,277 Adjustments to profit 1,824 1,245 3,081 Net increase/decrease in operating assets (10,430) 36,393 (2,367) Net increase/decrease in operating liabilities 21,915 (36,632) (4,585) Reimbursements/payments of income tax (839) 151 (21) Total net cash flows from operating activities (1) 15,476 3,638 (1,615) 2. Cash flows from investing activities Investments (-) (8,818) (4,419) (2,149) Divestments (+) 4,995 7,249 1,696 Total net cash flows from investment activities (2) (3,823) 2,830 (453) 3. Cash flows from financing activities Issuance of own equity instruments 7,072 - 7,500 Disposal of own equity instruments 1,004 957 2,240 Acquisition of own equity instruments (972) (943) (2,224) Issuance of debt securities 2,894 2,346 2,849 Redemption of debt securities (764) (5,333) (935) Dividends paid (2,665) (2,308) (1,498) Issuance/Redemption of equity instruments - - - Other collections/payments related to financing activities 532 - (72) Total net cash flows from financing activities (3) 7,101 (5,281) 7,860 4. Effect of exchange rate changes on cash and cash equivalents (4) (655) 289 (496) 5. Net increase/decrease in cash and cash equivalents (1+2+3+4) 18,099 1,476 5,296 Cash and cash equivalents at beginning of period 15,635 14,159 8,863 Cash and cash equivalents at end of period 33,734 15,635 14,159 |
Schedule of preferred shares and securities | 2017 2016 2015 (Millions of Euros) Preference shares 404 413 449 Preferred securities 8,369 6,916 6,749 Total at period-end 8,773 7,329 7,198 |
Schedule of preferred shares and securities by issuer | Outstanding at December 31, 2017 Amount in Preference Shares currency Redemption Issuer/Date of issue Currency (million) Interest rate Option (1) Santander UK plc, October 1995 Pounds Sterling 80.3 10.375% No option Santander UK plc, February 1996 Pounds Sterling 80.3 10.375% No option Santander UK plc, May 2006 Pounds Sterling 13.8 6.222% (2) May 24, 2019 Santander Bank, National Association, August 2000 US Dollar 153.0 12.00% May 16, 2020 Santander Holdings USA, Inc, May 2006 (*) US Dollar 75.5 7.30% May 15, 2011 Outstanding at December 31, 2017 Amount in Preferred Securities currency Issuer/Date of issue Currency (million) Interest rate Maturity date Banco Santander, S.A. Banco Español de Crédito, October 2004 Euro 36.5 €CMS 10 + 0.125% Perpetuity Banco Español de Crédito (1), November 2004 Euro 106.5 5.5% Perpetuity Banco Santander, S.A., March 2014 Euro 1,500.0 6.25% (3) Perpetuity Banco Santander, S.A., May 2014 US Dollar 1,500.0 6.375% (4) Perpetuity Banco Santander, S.A., September 2014 Euro 1,500.0 6.250% (5) Perpetuity Santander Finance Capital, S.A. (Unipersonal), March 2009 US Dollar 18.2 2.0% Perpetuity Santander Finance Capital, S.A. (Unipersonal), March 2009 US Dollar 25.0 2.0% Perpetuity Santander Finance Capital, S.A. (Unipersonal), March 2009 Euro 306.9 2.0% Perpetuity Santander Finance Capital, S.A. (Unipersonal), March 2009 Euro 153.4 2.0% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), March 2004 (*) US Dollar 89.3 6.41% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), September 2004 Euro 144.0 €CMS 10 +0.05% subject to a maximum distribution of 8% per annum Perpetuity Santander Finance Preferred, S.A. (Unipersonal), October 2004 Euro 155.0 5.75% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), November 2006 (*) US Dollar 161.8 6.80% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), January 2007 (*) US Dollar 109.5 6.50% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), March 2007 (*) US Dollar 210.4 US3M + 0.52% Perpetuity Santander Finance Preferred, S.A. (Unipersonal), July 2007 Pounds Sterling 4.9 7.01% Perpetuity Santander International Preferred S.A. (Sociedad Unipersonal), March 2009 US Dollar 979.7 2.0% Perpetuity Santander International Preferred S.A. (Sociedad Unipersonal), March 2009 Euro 8.6 2.0% Perpetuity Santander UK Group Abbey National Plc, February 2001(6) Pounds Sterling 39.5 7.04% Perpetuity Abbey National Plc, August 2002 Pounds Sterling 1.8 Fixed to 6.984% until February 9, 2018, and thereafter, at a rate reset semi-annually of 1.86% per annum + Libor GBP (6M) Perpetuity Abbey National Plc, June 2015 Pounds Sterling 650.0 7.38% Perpetuity Banco Santander (Brasil), S.A. January 2014 US Dollar 129.6 7.38% October 29, 2049 Banco Popular Pastor FRN, June 2004 Euro 11.5 2.07% Perpetuity (1) From this date the issuer can redeem the shares, subject to prior authorization by the national supervisor. (2) That issuance is a Fixed/Floating Rate Non-Cumulative Callable Preference Shares. Dividends will accrue on a principal amount equal to £1,000 per Preference Share at a rate of 6.222% per annum in respect of the period from (and including) May 24, 2006 (the Issue Date) to (but excluding) May 24, 2019 (the First Call Date) and thereafter at a rate reset quarterly equal to 1.13% per annum above the London interbank offered rate for three-month sterling deposits. From (and including) the Issue Date to (but excluding) the First Call Date, dividends, if declared, will be paid annually in arrears on May 24, in each year. Subject as provided herein, the first such dividend payment date will be May 24, 2007 and the last such dividend payment date will be the First Call Date. From (and including) the First Call Date, dividends, if declared, will be paid quarterly in arrears on May 24, August 24, November 24 and February 24, in each year. Subject as provided herein, the first such dividend payment date will be August 24, 2019. (3) Payment is subject to certain conditions and to the discretion of the Bank. The 6.25% interest rate is set for the first five years. After that, it will be reviewed by applying a margin of 541 basis points on the five-year Mid-Swap Rate. (4) Payment is subject to certain conditions and to the discretion of the Bank. The 6.375% interest rate is set for the first five years. After that, it will be reviewed by applying a margin of 478.8 basis points on the five-year Mid-Swap Rate. (5) Payment is subject to certain conditions and to the discretion of the Bank. The 6.25% interest rate is set for the first five years. After that, it will be reviewed by applying a margin of 564 basis points on the five-year Mid-Swap Rate. (6) From February 14, 2026, this issue will bear interest at a rate, reset every five years, of 3.75% per annum above the gross redemption yield on a five-year specified United Kingdom government security. (*) Listed in the U.S. |
Introduction, Presentation, and
Introduction, Presentation, and Other Information - Changed Accounting Policy (Details) - EUR (€) € in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of voluntary change in accounting policy [line items] | |||||
Cash and cash equivalents | € 110,995 | € 76,454 | € 77,751 | € 69,853 | |
Cash flows from (used in) operating activities | 40,188 | 21,823 | 5,678 | ||
Effect of exchange rate changes on cash and cash equivalents | (5,845) | (3,611) | (522) | ||
Increase (decrease) in net change in cash and cash equivalents | € 34,541 | € (1,297) | 7,898 | ||
Mexican peso | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Change in foreign currency exchange rate (as a percent) | (7.98%) | ||||
Foreign Currency Exchange Rate, Change In Average Rate, As A Percent | (3.07%) | ||||
U.S. dollar | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Change in foreign currency exchange rate (as a percent) | (12.11%) | ||||
Foreign Currency Exchange Rate, Change In Average Rate, As A Percent | (1.88%) | ||||
Brazilian real | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Change in foreign currency exchange rate (as a percent) | (13.65%) | ||||
Foreign Currency Exchange Rate, Change In Average Rate, As A Percent | 6.58% | ||||
Pound sterling | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Change in foreign currency exchange rate (as a percent) | (3.50%) | ||||
Foreign Currency Exchange Rate, Change In Average Rate, As A Percent | (6.74%) | ||||
Chilean peso | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Change in foreign currency exchange rate (as a percent) | (3.98%) | ||||
Foreign Currency Exchange Rate, Change In Average Rate, As A Percent | 2.18% | ||||
Polish zloty | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Change in foreign currency exchange rate (as a percent) | 5.59% | ||||
Foreign Currency Exchange Rate, Change In Average Rate, As A Percent | 2.49% | ||||
In accordance with IFRS 9 | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Impact Of New IFRS On Common Equity Tier 1, Fully Loaded Basis, As A Percent | (0.20%) | ||||
New IFRS Phase-in Period | 5 years | ||||
Impact Of New IFRS On Common Equity Tier 1, Impairment Model, As A Percent | (0.01%) | ||||
IFRS 9 impact, as a percent | 5.00% | ||||
New IFRS Increase (Decrease) In Impairment Provisions | € 2,200 | ||||
Change In Measurement Of Financial Instruments | Financial Assets Held For Trading And Financial Assets Designated At Fair Value Through Profit Or Loss | Debt instruments | In accordance with IFRS 9 | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Portion reclassified, as a percent | 0.20% | ||||
Change In Measurement Of Financial Instruments | Financial Assets Held For Trading And Financial Assets Designated At Fair Value Through Profit Or Loss | Loans and advances | In accordance with IFRS 9 | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Portion reclassified, as a percent | 0.30% | ||||
Change In Measurement Of Financial Instruments | Financial assets measured at fair value through other comprehensive income, category | Debt instruments | In accordance with IFRS 9 | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Portion reclassified, as a percent | 5.10% | ||||
Change In Measurement Of Financial Instruments | Financial assets measured at fair value through other comprehensive income, category | Loans and advances | In accordance with IFRS 9 | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Portion reclassified, as a percent | 0.20% | ||||
Change In Definition Of Cash And Cash Equivalents | |||||
Disclosure of voluntary change in accounting policy [line items] | |||||
Cash and cash equivalents | (3,578) | ||||
Cash flows from (used in) operating activities | (7,179) | ||||
Effect of exchange rate changes on cash and cash equivalents | 3,176 | ||||
Increase (decrease) in net change in cash and cash equivalents | € (4,003) |
Introduction, Presentation, 113
Introduction, Presentation, and Other Information - Capital Management (Details) € in Millions | Mar. 26, 2018 | Dec. 17, 2017EUR (€) | Dec. 31, 2017EUR (€)item | Sep. 08, 2017EUR (€) |
Intro, basis of presentation of the consolidated financial statements and other information | ||||
Percentage of assets weighted by risk | 13.50% | |||
Planned coverage percentage of loan portfolio under advanced internal ratings based approach | 90.00% | |||
Number of key markets | item | 10 | |||
Fidelity Bonds, redemption period | 7 years | |||
Fidelity Bonds, percent accepted | 77.88% | |||
Fidelity Bonds, nominal value | € 764 | € 981 | ||
Fidelity Bonds, market value | € 525 | € 525 | € 686 | |
Stake in entity that is under agreement to be sold (as a percent) | 49.00% |
Accounting policies - Translati
Accounting policies - Translation of foreign currency balances (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2017EUR (€)item | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Foreign currency transactions | |||
Number of consecutive stages | item | 2 | ||
Adjustment to correct for effect of inflation | € | € 0 | € 0 | € 0 |
Accounting policies - Exposure
Accounting policies - Exposure to foreign currency risk (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sensitivity of consolidated profit and consolidated equity | |||
Appreciation variation (as a percent) | 1.00% | 1.00% | 1.00% |
Depreciation variation (as a percent) | 1.00% | 1.00% | 1.00% |
U.S. dollar | |||
Sensitivity of consolidated profit and consolidated equity | |||
1 % appreciation of euro, Effect on consolidated equity | € (157.9) | € (187.1) | € (167.2) |
1 % appreciation of euro, Effect on consolidated profit | (1.4) | (4.5) | (8.7) |
1 % depreciation of euro, Effect on consolidated equity | 161.1 | 190.8 | 170.5 |
1 % depreciation of euro, Effect on consolidated profit | 1.5 | 4.5 | 8.8 |
Chilean peso | |||
Sensitivity of consolidated profit and consolidated equity | |||
1 % appreciation of euro, Effect on consolidated equity | (29) | (27.9) | (23.7) |
1 % appreciation of euro, Effect on consolidated profit | (1.8) | (4.2) | (5) |
1 % depreciation of euro, Effect on consolidated equity | 29.6 | 28.4 | 24.1 |
1 % depreciation of euro, Effect on consolidated profit | 1.8 | 4.3 | 5.1 |
Pound sterling | |||
Sensitivity of consolidated profit and consolidated equity | |||
1 % appreciation of euro, Effect on consolidated equity | (176.6) | (184.9) | (194.2) |
1 % appreciation of euro, Effect on consolidated profit | (3.1) | (10) | (13) |
1 % depreciation of euro, Effect on consolidated equity | 180.2 | 188.7 | 198.2 |
1 % depreciation of euro, Effect on consolidated profit | 3.2 | 10.2 | 13.2 |
Mexican peso | |||
Sensitivity of consolidated profit and consolidated equity | |||
1 % appreciation of euro, Effect on consolidated equity | (16) | (16.2) | (19.7) |
1 % appreciation of euro, Effect on consolidated profit | (1.2) | (5.4) | (5.9) |
1 % depreciation of euro, Effect on consolidated equity | 16.3 | 16.5 | 20.1 |
1 % depreciation of euro, Effect on consolidated profit | 1.2 | 5.5 | 6 |
Brazilian real | |||
Sensitivity of consolidated profit and consolidated equity | |||
1 % appreciation of euro, Effect on consolidated equity | (93.1) | (122.3) | (93.1) |
1 % appreciation of euro, Effect on consolidated profit | (6.5) | (6.3) | (13.6) |
1 % depreciation of euro, Effect on consolidated equity | 95 | 124.7 | 94.9 |
1 % depreciation of euro, Effect on consolidated profit | 6.6 | 6.5 | 13.8 |
Polish zloty | |||
Sensitivity of consolidated profit and consolidated equity | |||
1 % appreciation of euro, Effect on consolidated equity | (34.5) | (31.5) | (32.8) |
1 % appreciation of euro, Effect on consolidated profit | (1.5) | (3.3) | (3.9) |
1 % depreciation of euro, Effect on consolidated equity | 35.2 | 32.1 | 33.4 |
1 % depreciation of euro, Effect on consolidated profit | € 1.5 | € 3.3 | € 4 |
Accounting policies - Basis of
Accounting policies - Basis of consolidation (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Luri 1, S.A. | |
Subsidiaries and joint ventures | |
Ownership interest (as a percent) | 31.00% |
Luri 2, S.A. | |
Subsidiaries and joint ventures | |
Ownership interest (as a percent) | 30.00% |
Maximum | Luri 1, S.A. | |
Subsidiaries and joint ventures | |
Voting rights (as a percent) | 50.00% |
Maximum | Luri 2, S.A. | |
Subsidiaries and joint ventures | |
Voting rights (as a percent) | 50.00% |
Accounting policies - FV of fin
Accounting policies - FV of financial assets and liabilities (Details) € in Millions | Dec. 31, 2017EUR (€)division | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) |
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets available-for-sale | € 133,271 | € 116,774 | € 122,036 | |
Number of independent divisions | division | 2 | |||
Liabilities Under Insurance Contracts [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities | € 1,117 | 652 | 627 | |
Equity instruments | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets | 27,076 | 20,530 | 23,704 | |
Financial assets available-for-sale | 4,790 | 5,487 | 4,849 | € 5,001 |
Level 2 and 3 | Liabilities Under Insurance Contracts [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 1,117 | 652 | 627 | |
Financial assets held for trading | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets | 125,458 | 148,187 | 146,346 | |
Financial assets held for trading | Credit risk derivatives | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 0 | 1 | 46 | |
Financial assets held for trading | Level 1 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 58,215 | 64,259 | 65,849 | |
Financial assets held for trading | Level 2 and 3 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 67,243 | 83,928 | 80,497 | |
Financial assets designated at fair value through profit or loss | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets | 34,782 | 31,609 | 45,043 | |
Financial assets designated at fair value through profit or loss | Level 1 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 3,823 | 3,220 | 3,244 | |
Financial assets designated at fair value through profit or loss | Level 2 and 3 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 30,959 | 28,389 | 41,799 | |
Financial assets available for sale | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets | 132,060 | 115,425 | 120,246 | |
Financial assets available for sale | Level 1 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 113,258 | 89,563 | 92,284 | |
Financial assets available for sale | Level 2 and 3 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 18,802 | 25,862 | 27,962 | |
Hedging derivatives, category | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets | 8,537 | 10,377 | 7,727 | |
Hedging derivatives, category | Level 1 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 216 | 271 | ||
Hedging derivatives, category | Level 2 and 3 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 8,537 | 10,161 | 7,456 | |
Financial assets at amortized cost, category | Equity instruments | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets available-for-sale | 1,211 | 1,349 | 1,790 | |
Financial liabilities held for trading | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities | 107,624 | 108,765 | 105,218 | |
Financial liabilities held for trading | Level 1 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 21,828 | 20,906 | 17,058 | |
Financial liabilities held for trading | Level 2 and 3 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 85,796 | 87,859 | 88,160 | |
Financial liabilities designated at fair value through profit or loss | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities | 59,616 | 40,263 | 54,768 | |
Financial liabilities designated at fair value through profit or loss | Level 1 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 769 | |||
Financial liabilities designated at fair value through profit or loss | Level 2 and 3 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 58,847 | 40,263 | 54,768 | |
Hedging derivatives, category | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities | 8,044 | 8,156 | 8,937 | |
Hedging derivatives, category | Level 1 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 8 | 9 | 400 | |
Hedging derivatives, category | Level 2 and 3 | Financial Assets And Liabilities Category [Member] | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | € 8,036 | € 8,147 | € 8,537 |
Accounting policies - Valuation
Accounting policies - Valuation adjustment (Details) € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Accounting policies | |
Amount of CVA | € 322.5 |
Change in CVA (as a percent) | (49.90%) |
Amount of DVA | € 219.6 |
Change in DVA (as a percent) | (43.70%) |
Financial Instruments Valuation Adjustment Threshold, As A Percent | 40.00% |
Accounting policies - Levels 2
Accounting policies - Levels 2 and 3 FV (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | € 124,178 | € 146,991 | € 155,233 | |
Financial liabilities, at fair value | 153,600 | 136,835 | 151,768 | |
Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 1,363 | 1,349 | 2,481 | € 2,587 |
Financial liabilities, at fair value | 196 | 86 | 324 | 552 |
Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 437 | 341 | 950 | 1,191 |
Hedging derivatives, category | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 18 | 27 | 18 | |
Financial assets designated at fair value through profit or loss | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 282 | 325 | 514 | 680 |
Financial assets available for sale | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 626 | 656 | 999 | 716 |
Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 182 | 69 | 302 | 536 |
Hedging derivatives, category | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 7 | 9 | 11 | |
Financial liabilities designated at fair value through profit or loss | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 7 | 8 | 11 | 16 |
Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 66,806 | 83,587 | 79,547 | |
Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 437 | 341 | 950 | |
Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 8,519 | 10,134 | 7,438 | |
Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 18 | 27 | 18 | |
Financial Assets And Liabilities Category [Member] | Financial assets designated at fair value through profit or loss | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 30,677 | 28,064 | 41,285 | |
Financial Assets And Liabilities Category [Member] | Financial assets designated at fair value through profit or loss | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 282 | 325 | 514 | |
Financial Assets And Liabilities Category [Member] | Financial assets available for sale | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 18,176 | 25,206 | 26,963 | |
Financial Assets And Liabilities Category [Member] | Financial assets available for sale | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 626 | 656 | 999 | |
Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 85,614 | 87,790 | 87,858 | |
Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 182 | 69 | 302 | |
Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 8,029 | 8,138 | 8,526 | |
Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 7 | 9 | 11 | |
Financial Assets And Liabilities Category [Member] | Financial liabilities designated at fair value through profit or loss | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 58,840 | 40,255 | 54,757 | |
Financial Assets And Liabilities Category [Member] | Financial liabilities designated at fair value through profit or loss | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 7 | 8 | 11 | |
Liabilities Under Insurance Contracts [Member] | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 1,117 | 652 | 627 | |
Loans and advances - Credit institutions | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 1,696 | 3,220 | 1,352 | |
Loans and advances - Credit institutions | Financial Assets And Liabilities Category [Member] | Financial assets designated at fair value through profit or loss | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 9,889 | 10,069 | 26,403 | |
Loans and advances - Customers | Financial assets designated at fair value through profit or loss | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 72 | 74 | 81 | 78 |
Loans and advances - Customers | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 8,815 | 9,504 | 6,081 | |
Loans and advances - Customers | Financial Assets And Liabilities Category [Member] | Financial assets designated at fair value through profit or loss | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 20,403 | 17,521 | 14,213 | |
Loans and advances - Customers | Financial Assets And Liabilities Category [Member] | Financial assets designated at fair value through profit or loss | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 72 | 74 | 81 | |
Debt and equity instruments | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 32 | 40 | 43 | 85 |
Debt and equity instruments | Financial assets designated at fair value through profit or loss | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 433 | 602 | ||
Debt and equity instruments | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 335 | 798 | 650 | |
Debt and equity instruments | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 32 | 40 | 43 | |
Debt and equity instruments | Financial Assets And Liabilities Category [Member] | Financial assets designated at fair value through profit or loss | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 385 | 474 | 669 | |
Debt and equity instruments | Financial Assets And Liabilities Category [Member] | Financial assets designated at fair value through profit or loss | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 210 | 251 | 433 | |
Debt and equity instruments | Financial Assets And Liabilities Category [Member] | Financial assets available for sale | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 18,176 | 25,206 | 26,963 | |
Debt and equity instruments | Financial Assets And Liabilities Category [Member] | Financial assets available for sale | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 626 | 656 | 999 | |
Derivatives | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 405 | 301 | 907 | 1,106 |
Derivatives | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 55,960 | 70,065 | 71,464 | |
Derivatives | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 405 | 301 | 907 | |
Swaps | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 189 | 55 | 54 | 116 |
Swaps | Hedging derivatives, category | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 18 | 27 | 18 | |
Swaps | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 44,766 | 53,499 | 52,904 | |
Swaps | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 189 | 55 | 54 | |
Swaps | Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 7,896 | 9,737 | 6,437 | |
Swaps | Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 18 | 27 | 18 | |
Exchange rate options | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 5 | 2 | ||
Exchange rate options | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 463 | 524 | 1,005 | |
Exchange rate options | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 5 | 2 | ||
Interest rate options | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 162 | 173 | 619 | 768 |
Interest rate options | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 4,747 | 5,349 | 8,276 | |
Interest rate options | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 162 | 173 | 619 | |
Interest rate options | Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 13 | 13 | 19 | |
Interest rate futures | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 2 | 1,447 | 84 | |
Index and securities options | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 5 | 26 | 120 | 111 |
Index and securities options | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 1,257 | 1,725 | 1,585 | |
Index and securities options | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 5 | 26 | 120 | |
Other | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 44 | 45 | 114 | 111 |
Other | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 4,725 | 7,521 | 7,610 | |
Other | Financial Assets And Liabilities Category [Member] | Financial assets held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 44 | 45 | 114 | |
Other | Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial assets, at fair value | 610 | 384 | 982 | |
Deposits - Central banks | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 282 | 1,351 | 2,178 | |
Deposits - Credit institutions | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 292 | 44 | 76 | |
Deposits - Customers | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 28,179 | 9,996 | 9,187 | |
Derivatives | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 182 | 69 | 302 | 536 |
Derivatives | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 56,860 | 73,481 | 74,893 | |
Derivatives | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 182 | 69 | 302 | |
Swaps | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 100 | 1 | 1 | 49 |
Swaps | Hedging derivatives, category | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 7 | 9 | 11 | |
Swaps | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 45,041 | 57,103 | 55,055 | |
Swaps | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 100 | 1 | 1 | |
Swaps | Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 7,573 | 6,676 | 7,971 | |
Swaps | Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 7 | 9 | 11 | |
Exchange rate options | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 9 | |||
Exchange rate options | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 497 | 413 | 901 | |
Exchange rate options | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 9 | |||
Interest rate options | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 19 | 21 | 194 | 294 |
Interest rate options | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 5,402 | 6,485 | 9,240 | |
Interest rate options | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 19 | 21 | 194 | |
Interest rate options | Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 287 | 10 | 12 | |
Index and securities options | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 41 | 46 | 107 | € 193 |
Index and securities options | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 1,527 | 1,672 | 2,000 | |
Index and securities options | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 41 | 46 | 107 | |
Interest rate and equity futures | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 1 | 1,443 | 101 | |
Short positions | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 1 | 2,918 | 1,524 | |
Other | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 13 | 1 | ||
Other | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 4,392 | 6,365 | 7,596 | |
Other | Financial Assets And Liabilities Category [Member] | Financial liabilities held for trading | Level 3 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | 13 | 1 | ||
Other | Financial Assets And Liabilities Category [Member] | Hedging derivatives, category | Level 2 | ||||
Measurement of financial assets and liabilities and recognition of fair value changes | ||||
Financial liabilities, at fair value | € 169 | € 1,452 | € 543 |
Accounting policies - Levels 3
Accounting policies - Levels 3 Change in Assumptions (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Projected shift in HPI spot rate, Assets (as a percent) | 10.00% | ||
Projected shift in HPI spot rate, Liabilities (as a percent) | 10.00% | ||
Level 3 | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Net (loss) gain recognized in profit or loss arising from models whose significant inputs are unobservable market data | € (116) | € 60 | € (28) |
Loans and advances - Customers | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of European HPI Options using Black-Scholes model | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (6.7) | ||
Impact on financial assets, Favourable scenario | 6.3 | ||
Debt and equity instruments | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of HPI forwards, using the present value model, HIP forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (7.6) | ||
Impact on financial assets, Favourable scenario | 8.2 | ||
Debt and equity instruments | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of HPI forwards, using the present value model, HPI spot rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (12.5) | ||
Impact on financial assets, Favourable scenario | 12.5 | ||
Debt and equity instruments | Financial assets available for sale | Present Value Method And Other, Default And Prepayment Rates, Etc. [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (3) | ||
Impact on financial assets, Favourable scenario | 3 | ||
Debt and equity instruments | Financial assets available for sale | Present Value Method And Other Valuation, Litigation Contingencies [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (22) | ||
Impact on financial assets, Favourable scenario | € 11.8 | ||
Derivatives | Financial assets held for trading | Present Value Method | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Change of plus or (minus) basis points, Assets (as a percent) | 1.00% | ||
Derivatives | Financial assets held for trading | Present Value, Curves On TAB Indices Approach [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | € (0.2) | ||
Impact on financial assets, Favourable scenario | 0.2 | ||
Derivatives | Financial assets held for trading | Present Value Long Term Volatility In MXN Approach [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (0.1) | ||
Impact on financial assets, Favourable scenario | 0.1 | ||
Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, HPI forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (25.9) | ||
Impact on financial assets, Favourable scenario | 27.7 | ||
Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, HPI spot rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (9.4) | ||
Impact on financial assets, Favourable scenario | 9.4 | ||
Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, FX Volatility In Long Term [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (1.8) | ||
Impact on financial assets, Favourable scenario | 0.3 | ||
Derivatives | Financial assets held for trading | Standard Gaussian Copula Model, Probability Of Default [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (2.4) | ||
Impact on financial assets, Favourable scenario | 2.1 | ||
Derivatives | Financial assets held for trading | Standard Gaussian Copula Model, Reversal To The Average Interest Rate [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial assets, Unfavourable scenario | (1.1) | ||
Impact on financial assets, Favourable scenario | € 1.1 | ||
Minimum | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Potential downward movement from current parameter of mean reversion of interest rates, Liabilities (as a percent) | 0.0001% | ||
Minimum | Loans and advances - Customers | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of European HPI Options using Black-Scholes model | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Assets (as a percent) | 0.00% | ||
Minimum | Debt and equity instruments | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of HPI forwards, using the present value model, HIP forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Assets (as a percent) | 0.00% | ||
Minimum | Debt and equity instruments | Financial assets available for sale | Present Value Method And Other Valuation, Litigation Contingencies [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Litigation contingencies, Assets (as a percent) | 0.00% | ||
Minimum | Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, HPI forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Assets (as a percent) | 0.00% | ||
Minimum | Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, FX Volatility In Long Term [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
FX Volatility in long-term, Assets (as a percent) | 11.00% | ||
Minimum | Derivatives | Financial assets held for trading | Standard Gaussian Copula Model, Probability Of Default [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Probability of default, Assets (as a percent) | 0.00% | ||
Minimum | Derivatives | Financial assets held for trading | Standard Gaussian Copula Model, Reversal To The Average Interest Rate [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Mean reversion of interest rates, Assets (as a percent) | (2.00%) | ||
Maximum | Hedging derivatives, category | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Potential downward movement from current parameter of mean reversion of interest rates, Liabilities (as a percent) | 0.03% | ||
Maximum | Loans and advances - Customers | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of European HPI Options using Black-Scholes model | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Assets (as a percent) | 5.00% | ||
Maximum | Debt and equity instruments | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of HPI forwards, using the present value model, HIP forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Assets (as a percent) | 5.00% | ||
Maximum | Debt and equity instruments | Financial assets available for sale | Present Value Method And Other Valuation, Litigation Contingencies [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Litigation contingencies, Assets (as a percent) | 100.00% | ||
Maximum | Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, HPI forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Assets (as a percent) | 5.00% | ||
Maximum | Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, FX Volatility In Long Term [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
FX Volatility in long-term, Assets (as a percent) | 21.00% | ||
Maximum | Derivatives | Financial assets held for trading | Standard Gaussian Copula Model, Probability Of Default [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Probability of default, Assets (as a percent) | 5.00% | ||
Maximum | Derivatives | Financial assets held for trading | Standard Gaussian Copula Model, Reversal To The Average Interest Rate [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Mean reversion of interest rates, Assets (as a percent) | 2.00% | ||
Weighted average | Loans and advances - Customers | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of European HPI Options using Black-Scholes model | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Assets (as a percent) | 2.57% | ||
Weighted average | Debt and equity instruments | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of HPI forwards, using the present value model, HIP forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Assets (as a percent) | 2.42% | ||
Weighted average | Debt and equity instruments | Financial assets designated at fair value through profit or loss | Probability-weighted set (per forecast mortality rates) of HPI forwards, using the present value model, HPI spot rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI spot rate, Assets | 772.64 | ||
Weighted average | Debt and equity instruments | Financial assets available for sale | Present Value Method And Other Valuation, Litigation Contingencies [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Litigation contingencies, Assets (as a percent) | 35.00% | ||
Weighted average | Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, HPI forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Assets (as a percent) | 2.42% | ||
Weighted average | Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, HPI spot rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI spot rate, Assets | 772.64 | ||
Weighted average | Derivatives | Financial assets held for trading | Present Value Method, Modified Black-Scholes Model, FX Volatility In Long Term [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
FX Volatility in long-term, Assets (as a percent) | 15.70% | ||
Weighted average | Derivatives | Financial assets held for trading | Standard Gaussian Copula Model, Probability Of Default [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Probability of default, Assets (as a percent) | 2.32% | ||
Weighted average | Derivatives | Financial assets held for trading | Standard Gaussian Copula Model, Reversal To The Average Interest Rate [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Mean reversion of interest rates, Assets (as a percent) | 0.00% | ||
Derivatives | Financial liabilities held for trading | Present Value Method, Modified Black-Scholes Model, HPI forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial liabilities, Unfavourable scenario | € (9.4) | ||
Impact on financial liabilities, Favourable scenario | 8.1 | ||
Derivatives | Financial liabilities held for trading | Present Value Method, Modified Black-Scholes Model, HPI spot rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Impact on financial liabilities, Unfavourable scenario | (9.2) | ||
Impact on financial liabilities, Favourable scenario | € 10 | ||
Derivatives | Financial liabilities held for trading | Present Value Method, Modified Black Scholes Model Approach, Curves On Tab Indices [Member] | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Change of plus or (minus) basis points, Liabilities (as a percent) | 1.00% | ||
Derivatives | Financial liabilities held for trading | Advanced multi-factor interest rate models | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Mean reversion of interest rates, Liabilities (as a percent) | 0.01% | ||
Impact on financial liabilities, Unfavourable scenario | € (0.6) | ||
Impact on financial liabilities, Favourable scenario | € 0.6 | ||
Derivatives | Minimum | Financial liabilities held for trading | Present Value Method, Modified Black-Scholes Model, HPI forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Liabilities (as a percent) | 0.00% | ||
Derivatives | Minimum | Financial liabilities held for trading | Advanced multi-factor interest rate models | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Mean reversion of interest rates, Liabilities (as a percent) | (2.00%) | ||
Derivatives | Minimum | Hedging derivatives, category | Advanced multi-factor interest rate models | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Mean reversion of interest rates, Liabilities (as a percent) | 0.0001% | ||
Derivatives | Maximum | Financial liabilities held for trading | Present Value Method, Modified Black-Scholes Model, HPI forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Liabilities (as a percent) | 5.00% | ||
Derivatives | Maximum | Financial liabilities held for trading | Advanced multi-factor interest rate models | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Mean reversion of interest rates, Liabilities (as a percent) | 2.00% | ||
Derivatives | Maximum | Hedging derivatives, category | Advanced multi-factor interest rate models | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Mean reversion of interest rates, Liabilities (as a percent) | 0.03% | ||
Derivatives | Weighted average | Financial liabilities held for trading | Present Value Method, Modified Black-Scholes Model, HPI forward growth rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI forward growth rate, Liabilities (as a percent) | 2.32% | ||
Derivatives | Weighted average | Financial liabilities held for trading | Present Value Method, Modified Black-Scholes Model, HPI spot rate | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
HPI spot rate, Assets | 727.14 | ||
Derivatives | Weighted average | Hedging derivatives, category | Advanced multi-factor interest rate models | |||
Measurement of financial assets and liabilities and recognition of fair value changes | |||
Mean reversion of interest rates, Liabilities (as a percent) | 0.01% |
Accounting policies - Changes i
Accounting policies - Changes in Level 3 (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Level 3 | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | € 1,349 | € 2,481 | € 2,587 |
Purchases | 46 | 37 | 25 |
Sales | (271) | (431) | (394) |
Settlements | (5) | (132) | (72) |
Changes in fair value recognized in profit or loss | (156) | 71 | (39) |
Changes in fair value recognized in equity | 59 | (11) | 271 |
Level reclassifications into Level 3 | 194 | 154 | |
Level reclassifications (out of) Level 3 | (520) | ||
Other | 147 | (146) | (51) |
Assets at end of period | 1,363 | 1,349 | 2,481 |
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 86 | 324 | 552 |
Purchases | 33 | 4 | |
Sales | (3) | (37) | (255) |
Changes in fair value recognized in profit or loss | (40) | 11 | (11) |
Level reclassifications into Level 3 | 126 | 5 | |
Level reclassifications (out of) Level 3 | (199) | ||
Other | (6) | (13) | 29 |
Liabilities at end of period | 196 | 86 | 324 |
Level 3 | Financial assets held for trading | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 341 | 950 | 1,191 |
Purchases | 45 | ||
Sales | (21) | (157) | (272) |
Changes in fair value recognized in profit or loss | (129) | 52 | 24 |
Level reclassifications into Level 3 | 200 | ||
Level reclassifications (out of) Level 3 | (489) | (2) | |
Other | 1 | (15) | 9 |
Assets at end of period | 437 | 341 | 950 |
Level 3 | Hedging derivatives, category | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 27 | 18 | |
Sales | (2) | (4) | |
Changes in fair value recognized in profit or loss | (7) | 13 | 1 |
Level reclassifications into Level 3 | 17 | ||
Assets at end of period | 18 | 27 | 18 |
Level 3 | Financial assets designated at fair value through profit or loss | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 325 | 514 | 680 |
Purchases | 7 | ||
Sales | (9) | (7) | (47) |
Settlements | (104) | ||
Changes in fair value recognized in profit or loss | (20) | 6 | (64) |
Level reclassifications (out of) Level 3 | (2) | ||
Other | (14) | (82) | (62) |
Assets at end of period | 282 | 325 | 514 |
Level 3 | Financial assets available for sale | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 656 | 999 | 716 |
Purchases | 1 | 37 | 18 |
Sales | (239) | (263) | (75) |
Settlements | (5) | (28) | (72) |
Changes in fair value recognized in equity | 59 | (11) | 271 |
Level reclassifications into Level 3 | 139 | ||
Level reclassifications (out of) Level 3 | (6) | (29) | |
Other | 160 | (49) | 2 |
Assets at end of period | 626 | 656 | 999 |
Level 3 | Financial liabilities held for trading | |||
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 69 | 302 | 536 |
Purchases | 33 | 4 | |
Sales | (3) | (34) | (230) |
Changes in fair value recognized in profit or loss | (38) | 10 | (15) |
Level reclassifications into Level 3 | 126 | ||
Level reclassifications (out of) Level 3 | (199) | ||
Other | (5) | (10) | 7 |
Liabilities at end of period | 182 | 69 | 302 |
Level 3 | Hedging derivatives, category | |||
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 9 | 11 | |
Sales | (3) | (16) | |
Changes in fair value recognized in profit or loss | (2) | 1 | 8 |
Level reclassifications into Level 3 | 5 | ||
Other | 14 | ||
Liabilities at end of period | 7 | 9 | 11 |
Level 3 | Financial liabilities designated at fair value through profit or loss | |||
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 8 | 11 | 16 |
Sales | (9) | ||
Changes in fair value recognized in profit or loss | (4) | ||
Other | (1) | (3) | 8 |
Liabilities at end of period | 7 | 8 | 11 |
Level 3 | Loans and advances - Customers | Financial assets designated at fair value through profit or loss | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 74 | 81 | 78 |
Sales | (2) | (5) | |
Changes in fair value recognized in profit or loss | 3 | 5 | 2 |
Other | (3) | (12) | 6 |
Assets at end of period | 72 | 74 | 81 |
Level 3 | Debt and equity instruments | Financial assets held for trading | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 40 | 43 | 85 |
Sales | (7) | (5) | (38) |
Changes in fair value recognized in profit or loss | (1) | 3 | (3) |
Level reclassifications (out of) Level 3 | (2) | ||
Other | (1) | 1 | |
Assets at end of period | 32 | 40 | 43 |
Level 3 | Debt and equity instruments | Financial assets designated at fair value through profit or loss | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 433 | 602 | |
Purchases | 7 | ||
Sales | (42) | ||
Changes in fair value recognized in profit or loss | (66) | ||
Other | (68) | ||
Assets at end of period | 433 | ||
Level 3 | Debt instruments | Financial assets designated at fair value through profit or loss | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 237 | 283 | |
Sales | (7) | (7) | |
Changes in fair value recognized in profit or loss | (21) | 1 | |
Other | (10) | (40) | |
Assets at end of period | 199 | 237 | 283 |
Level 3 | Equity instruments | Financial assets designated at fair value through profit or loss | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 14 | 150 | |
Settlements | (104) | ||
Changes in fair value recognized in profit or loss | (2) | ||
Level reclassifications (out of) Level 3 | (2) | ||
Other | (1) | (30) | |
Assets at end of period | 11 | 14 | 150 |
Level 3 | Derivatives | Financial assets held for trading | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 301 | 907 | 1,106 |
Purchases | 45 | ||
Sales | (14) | (152) | (234) |
Changes in fair value recognized in profit or loss | (128) | 49 | 27 |
Level reclassifications into Level 3 | 200 | ||
Level reclassifications (out of) Level 3 | (489) | ||
Other | 1 | (14) | 8 |
Assets at end of period | 405 | 301 | 907 |
Level 3 | Swaps | Financial assets held for trading | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 55 | 54 | 116 |
Purchases | 1 | ||
Sales | (6) | (63) | |
Changes in fair value recognized in profit or loss | (59) | (3) | 2 |
Level reclassifications into Level 3 | 200 | ||
Other | (2) | 4 | (1) |
Assets at end of period | 189 | 55 | 54 |
Level 3 | Swaps | Hedging derivatives, category | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 27 | 18 | |
Sales | (2) | (4) | |
Changes in fair value recognized in profit or loss | (7) | 13 | 1 |
Level reclassifications into Level 3 | 17 | ||
Assets at end of period | 18 | 27 | 18 |
Level 3 | Exchange rate options | Financial assets held for trading | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 2 | ||
Purchases | 5 | ||
Changes in fair value recognized in profit or loss | (2) | 2 | |
Assets at end of period | 5 | 2 | |
Level 3 | Interest rate options | Financial assets held for trading | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 173 | 619 | 768 |
Sales | (52) | (119) | |
Changes in fair value recognized in profit or loss | (11) | 39 | (28) |
Level reclassifications (out of) Level 3 | (433) | ||
Other | (2) | ||
Assets at end of period | 162 | 173 | 619 |
Level 3 | Index and securities options | Financial assets held for trading | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 26 | 120 | 111 |
Sales | (1) | (30) | (45) |
Changes in fair value recognized in profit or loss | (18) | (3) | 51 |
Level reclassifications (out of) Level 3 | (56) | ||
Other | (2) | (5) | 3 |
Assets at end of period | 5 | 26 | 120 |
Level 3 | Other | Financial assets held for trading | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 45 | 114 | 111 |
Purchases | 39 | ||
Sales | (7) | (70) | (7) |
Changes in fair value recognized in profit or loss | (38) | 14 | 2 |
Other | 5 | (13) | 8 |
Assets at end of period | 44 | 45 | 114 |
Level 3 | Derivatives | Financial liabilities held for trading | |||
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 69 | 302 | 536 |
Purchases | 33 | 4 | |
Sales | (3) | (34) | (230) |
Changes in fair value recognized in profit or loss | (38) | 10 | (15) |
Level reclassifications into Level 3 | 126 | ||
Level reclassifications (out of) Level 3 | (199) | ||
Other | (5) | (10) | 7 |
Liabilities at end of period | 182 | 69 | 302 |
Level 3 | Swaps | Financial liabilities held for trading | |||
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 1 | 1 | 49 |
Sales | (47) | ||
Changes in fair value recognized in profit or loss | (26) | (1) | |
Level reclassifications into Level 3 | 126 | ||
Other | (1) | ||
Liabilities at end of period | 100 | 1 | 1 |
Level 3 | Swaps | Hedging derivatives, category | |||
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 9 | 11 | |
Sales | (3) | (16) | |
Changes in fair value recognized in profit or loss | (2) | 1 | 8 |
Level reclassifications into Level 3 | 5 | ||
Other | 14 | ||
Liabilities at end of period | 7 | 9 | 11 |
Level 3 | Exchange rate options | Financial liabilities held for trading | |||
Changes in financial instruments, Liabilities | |||
Purchases | 21 | ||
Changes in fair value recognized in profit or loss | (11) | ||
Other | (1) | ||
Liabilities at end of period | 9 | ||
Level 3 | Interest rate options | Financial liabilities held for trading | |||
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 21 | 194 | 294 |
Sales | (19) | (71) | |
Changes in fair value recognized in profit or loss | (2) | 1 | (30) |
Level reclassifications (out of) Level 3 | (155) | ||
Other | 1 | ||
Liabilities at end of period | 19 | 21 | 194 |
Level 3 | Index and securities options | Financial liabilities held for trading | |||
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 46 | 107 | 193 |
Purchases | 4 | ||
Sales | (3) | (15) | (112) |
Changes in fair value recognized in profit or loss | 8 | 16 | |
Level reclassifications (out of) Level 3 | (44) | ||
Other | (2) | (10) | 6 |
Liabilities at end of period | 41 | 46 | 107 |
Level 3 | Other | Financial liabilities held for trading | |||
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 1 | ||
Purchases | 12 | ||
Changes in fair value recognized in profit or loss | 1 | 1 | |
Other | (1) | ||
Liabilities at end of period | 13 | 1 | |
Level 2 | |||
Changes in financial instruments, Assets | |||
Assets at beginning of period | 146,991 | 155,233 | |
Assets at end of period | 124,178 | 146,991 | 155,233 |
Changes in financial instruments, Liabilities | |||
Liabilities at beginning of period | 136,835 | 151,768 | |
Liabilities at end of period | € 153,600 | € 136,835 | € 151,768 |
Accounting policies - Offsettin
Accounting policies - Offsetting of financial instruments (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets offset in the consolidated balance sheets | |||
Gross amount of financial assets | € 160,441 | € 180,838 | € 186,175 |
Gross amount of financial liabilities offset in the balance sheet | (45,105) | (47,472) | (44,632) |
Net amount of financial assets presented in the balance sheet | 115,336 | 133,366 | 141,543 |
Financial liabilities offset in the consolidated balance sheets | |||
Gross amount of financial liabilities | 214,849 | 210,327 | 225,086 |
Gross amount of financial assets offset in the balance sheet | (45,105) | (47,472) | (44,632) |
Net amount of financial liabilities presented in the balance sheet | 169,744 | 162,855 | 180,454 |
Gross amount of other items offset in the balance sheet | 1,645 | 1,742 | 2,036 |
Assets subject to netting and collateral arrangements on balance sheet | 97,017 | 110,445 | |
Liabilities subject to netting and collateral arrangements on balance sheet | 153,566 | 137,097 | |
Derivatives | |||
Financial assets offset in the consolidated balance sheets | |||
Gross amount of financial assets | 103,740 | 127,679 | 127,017 |
Gross amount of financial liabilities offset in the balance sheet | (37,960) | (45,259) | (42,566) |
Net amount of financial assets presented in the balance sheet | 65,780 | 82,420 | 84,451 |
Reverse repurchase agreements | |||
Financial assets offset in the consolidated balance sheets | |||
Gross amount of financial assets | 56,701 | 53,159 | 59,158 |
Gross amount of financial liabilities offset in the balance sheet | (7,145) | (2,213) | (2,066) |
Net amount of financial assets presented in the balance sheet | 49,556 | 50,946 | 57,092 |
Derivatives | |||
Financial liabilities offset in the consolidated balance sheets | |||
Gross amount of financial liabilities | 103,896 | 127,784 | 127,917 |
Gross amount of financial assets offset in the balance sheet | (37,960) | (45,259) | (42,566) |
Net amount of financial liabilities presented in the balance sheet | 65,936 | 82,525 | 85,351 |
Repurchase agreements | |||
Financial liabilities offset in the consolidated balance sheets | |||
Gross amount of financial liabilities | 110,953 | 82,543 | 97,169 |
Gross amount of financial assets offset in the balance sheet | (7,145) | (2,213) | (2,066) |
Net amount of financial liabilities presented in the balance sheet | € 103,808 | € 80,330 | € 95,103 |
Accounting policies - Impairmen
Accounting policies - Impairment of financial assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Impairment of financial assets | |
Past due threshold | 90 days |
Minimum period of time from refinancing date in which entity may reclassify debt instrument from non-performing to standard | 2 years |
Minimum period from which recovery considered remote | 4 years |
Minimum period before seniority | 2 years |
Time horizon used in measuring PD | 1 year |
Accounting policies - Assets he
Accounting policies - Assets held for sale (Details) € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Non-current assets held for sale | |
Maximum percentage of appraisal company's total billings to Group | 15.00% |
Fair value less costs to sell of non-current assets held for sale exceeding carrying amount | € 613 |
Spain | |
Non-current assets held for sale | |
Percentage of entity's total non-current assets held for sale | 91.53% |
Accounting policies - Property,
Accounting policies - Property, plant and equipment for own use (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings for own use | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual rate (as a percent) | 2.00% |
Furniture | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual rate (as a percent) | 7.70% |
Fixtures | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual rate (as a percent) | 7.00% |
Office and IT equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual rate (as a percent) | 25.00% |
Leasehold improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual rate (as a percent) | 7.00% |
Santander Group - Banco Popular
Santander Group - Banco Popular Acquisition (Details) - EUR (€) € in Millions | Jun. 07, 2017 | Dec. 31, 2017 | Dec. 17, 2017 | Sep. 08, 2017 | Jul. 06, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair values of the identifiable assets acquired and liabilities assumed at date of combination | ||||||||
Goodwill | € 25,769 | € 26,724 | € 26,960 | € 27,548 | ||||
Fidelity Bonds, market value | € 525 | € 525 | € 686 | |||||
Banco Popular Espanol, S.A. | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Percentage of voting equity interests acquired | 100.00% | |||||||
Fair values of the identifiable assets acquired and liabilities assumed at date of combination | ||||||||
Cash and balances with central banks | € 1,861 | |||||||
Financial assets available-for-sale | 18,974 | |||||||
Deposits from credit institutions | 2,971 | |||||||
Loans and receivables - Loans and advances to customers | 82,057 | |||||||
Investments | 1,815 | |||||||
Intangible assets | 133 | |||||||
Tax assets | 3,945 | |||||||
Non-current assets held for sale | 6,531 | |||||||
Other assets | 6,259 | |||||||
Total assets | 124,546 | |||||||
Deposits from central banks | 28,845 | |||||||
Deposits from credit institutions | 14,094 | |||||||
Customer deposits | 62,270 | |||||||
Marketable debt securities | 12,919 | |||||||
Provisions | 1,816 | |||||||
Other liabilities | 4,850 | |||||||
Total liabilities | 124,794 | |||||||
Net asset value | (248) | |||||||
Goodwill | 248 | |||||||
Provisional fair value adjustments for loans and receivables | (3,239) | |||||||
Provisional fair value adjustments for foreclosed assets | (3,806) | |||||||
Provisional fair value adjustments for intangible assets | (2,469) | |||||||
Provisional fair value adjustments for deferred tax assets | (1,711) | |||||||
Expected cost | € 680 | |||||||
Fidelity Bonds, market value | € 535 |
Santander Group - Sale of Banco
Santander Group - Sale of Banco Popular's real estate business (Details) € in Billions | Mar. 22, 2018EUR (€) |
Banco Popular real estate business | |
Disclosure of detailed information about business combination [line items] | |
Proportion of ownership interest in subsidiary | 49.00% |
Banco Popular real estate business | Blackstone Fund | |
Disclosure of detailed information about business combination [line items] | |
Percentage of voting equity interests acquired | 51.00% |
Value of Spanish assets | € 10 |
Aliseda Servicios De Gestion Inmobiliaria, S.L. [Member] | |
Disclosure of detailed information about business combination [line items] | |
Percentage of voting equity interests acquired | 100.00% |
Santander Group - Purchase of s
Santander Group - Purchase of shares SCUSA (Details) - DDFS LLC € in Millions, $ in Millions | Nov. 15, 2017EUR (€) | Jul. 02, 2015 | Nov. 15, 2017USD ($) | Nov. 15, 2017EUR (€) |
Disclosure of detailed information about business combination [line items] | ||||
Proportion of ownership interest under purchase agreement | 9.65% | |||
Consideration transferred, acquisition-date fair value | $ 942 | € 800 | ||
Decrease in non-controlling interest | € 492 | |||
Decrease in reserve | € 307 | |||
Proportion of ownership interest held following purchase transaction | 68.12% |
Santander Group - Agreement wit
Santander Group - Agreement with Santander Asset Management (Details) - EUR (€) € in Millions | Nov. 21, 2017 | Mar. 07, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 16, 2016 | Dec. 31, 2014 |
Disclosure of detailed information about business combination [line items] | |||||||
Goodwill | € 25,769 | € 26,724 | € 26,960 | € 27,548 | |||
Proceeds from sale of equity method investment | € 883 | € 459 | € 422 | ||||
Allfunds Bank, S.A. | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Proportion of ownership interest not held by entity | 50.00% | ||||||
Proportion of ownership interest in joint venture to be sold | 100.00% | ||||||
Proportion of share capital in disposal group sold | 25.00% | ||||||
Proceeds from sale of equity method investment | € 501 | ||||||
Net gain on disposal of investment | € 297 | ||||||
Santander Asset Management | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of voting equity interests acquired | 50.00% | ||||||
Consideration transferred, acquisition-date fair value | € 545 | ||||||
Assumed financing | 439 | ||||||
Goodwill | 1,173 | ||||||
Identifiable intangible assets recognised as of acquisition date | 320 | ||||||
Financial assets recognised as of acquisition date | 181 | ||||||
Deferred tax assets recognised as of acquisition date | € 176 |
Santander Group - Agreement 130
Santander Group - Agreement with Banque PSA Finance (Details) € in Millions | Oct. 01, 2015EUR (€) | May 01, 2015EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2014country | Aug. 03, 2015EUR (€) | Feb. 03, 2015EUR (€) | Feb. 02, 2015EUR (€) |
Acquisitions Per Agreement To Operate Vehicle And Insurance Financing Business [Member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Number of European countries included in agreement for the operation of the vehicle and insurance financing business | country | 12 | ||||||
Profit (loss) of acquiree since acquisition date | € 79 | ||||||
Profit (loss) of combined entity as if combination occurred at beginning of period | 118 | ||||||
Socit Financire de Banque - SOFIB (actually PSA Banque France) | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of voting equity interests acquired | 50.00% | ||||||
Consideration paid | € 462 | ||||||
PSA Finance UK Limited | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of voting equity interests acquired | 50.00% | ||||||
Consideration paid | € 148 | ||||||
PSA Insurance Europe Limited and PSA Life Insurance Europe Limited | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Consideration paid | € 23 | ||||||
Share capital contributed (as a percent) | 50.00% | ||||||
PSA Gestao Comercio E Aluguer de Veiculos S.A. | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Consideration paid | € 10 | ||||||
Banque PSA Finance Portuguese Branch Loan Portfolio | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Consideration paid | € 25 | ||||||
PSA Financial Services, Spain, EFC, SA | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Consideration paid | € 181 | ||||||
Share capital contributed (as a percent) | 50.00% | ||||||
PSA Financial Services, Spain, EFC, SA | PSA Finance Suisse, S.A. | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Proportion of ownership interest in associate | 100.00% | ||||||
Aggregated Under Framework Agreement In Other Countries | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Consideration paid | € 464 | ||||||
Proportion of ownership interest in subsidiary | 50.00% | ||||||
P SA Finance Arrendamento Mercantil SA | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Proportion of ownership interest in subsidiary | 100.00% |
Santander Group - Carfinco Fina
Santander Group - Carfinco Financial Group (Details) - EUR (€) € in Millions | Sep. 16, 2014 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 06, 2015 | Dec. 31, 2014 |
Disclosure of detailed information about business combination [line items] | ||||||
Goodwill | € 26,960 | € 25,769 | € 26,724 | € 27,548 | ||
Carfinco Financial Group Inc. | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Profit (loss) of acquiree since acquisition date | 6 | |||||
Profit (loss) of combined entity as if combination occurred at beginning of period | € 7 | |||||
Santander Holding Canada Inc. | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Proportion of ownership interest not held by entity | 3.60% | |||||
Santander Holding Canada Inc. | Banco Santander S.A. | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Proportion of ownership interest in subsidiary | 96.40% | |||||
Santander Holding Canada Inc. | Carfinco Financial Group Inc. | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Consideration paid | € 209 | |||||
Goodwill | € 162 |
Santander Group - Metrovacesa (
Santander Group - Metrovacesa (Details) - EUR (€) € in Millions | Oct. 26, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about business combination [line items] | ||||
Increase in investments in joint ventures and associates participation of the business received | € (582) | € 1,457 | € 21 | |
Merlin Properties, SOCIMI, S.A. | ||||
Disclosure of detailed information about business combination [line items] | ||||
Proportion of ownership interest in associate | 21.95% | |||
Increase in investments in joint ventures and associates participation of the business received | 1,168 | |||
Testa Residencial, SOCIMI, S.A. | ||||
Disclosure of detailed information about business combination [line items] | ||||
Proportion of ownership interest in associate | 46.21% | |||
Increase in investments in joint ventures and associates participation of the business received | 307 | |||
Metrovacesa Promocion Y Arrendamiento [Member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Proportion of ownership interest in associate | 70.27% | |||
Metrovacesa, S.A. | ||||
Disclosure of detailed information about business combination [line items] | ||||
Decrease in real estate investment | 3,800 | |||
Non-Controlling interest | Metrovacesa, S.A. | ||||
Disclosure of detailed information about business combination [line items] | ||||
Decrease in minority interest due to operations | € 621 |
Santander Group - Banco Interna
Santander Group - Banco International do Fuchal, etc. (Details) - EUR (€) € in Millions | Dec. 14, 2017 | Dec. 21, 2015 |
BANIF - Banco International do Funchal, S.A. | ||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||
Cash and balances with central banks | € 2,510 | |
Loans and advances to credit institutions | 424 | |
Debt instruments | 1,824 | |
Loans and advances to customers | 5,320 | |
Other assets | (218) | |
Total assets | 10,296 | |
Deposits from central banks | 2,110 | |
Deposits from credit institutions | 1,052 | |
Customer deposits | 4,430 | |
Marketable debt securities | 1,697 | |
Other liabilities | 574 | |
Total liabilities | 9,863 | |
Net asset value | 433 | |
Consideration paid | 150 | |
Negative goodwill on the acquisition | € 283 | |
Retail and Private Banking Business of Deutsche Bank Polska SA | ||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | ||
Consideration paid | € 305 |
Santander Group - Off-shore ent
Santander Group - Off-shore entities (Details) € in Millions | Jan. 23, 2018country | Dec. 05, 2017countrycompanyitem | Dec. 31, 2017EUR (€)employeesubsidiarycompanyitem | Dec. 31, 2016EUR (€)employee | Dec. 31, 2015EUR (€)employee |
Disclosure of detailed information about business combination [line items] | |||||
Profit (loss) | € | € 8,207 | € 7,486 | € 7,334 | ||
Number of employees | employee | 202,251 | 188,492 | 193,863 | ||
Off-shore entities | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of subsidiaries resident in off-shore territories | subsidiary | 3 | ||||
Number of subsidiaries in process of liquidation | item | 1 | ||||
Number of branches | item | 4 | ||||
Number of employees | employee | 138 | ||||
Number of subsidiaries domiciled in off-shore territories not considered to be off-shore entities | item | 4 | ||||
Number of jurisdictions that comply with OECD standards on transparency and exchange of information for fiscal purposes. | item | 4 | ||||
Number of countries blacklisted | country | 17 | ||||
Number of countries transferred from blacklist to gray list | country | 8 | ||||
Number of territories included in blacklist in which entity has no presence | item | 9 | 9 | |||
Number of countries affected by hurricanes which received grace period | country | 8 | ||||
Number of subsidiaries in-process of closing | company | 7 | ||||
Number of subsidiaries in liquidation | company | 1 | ||||
Number of tax resident | company | 1 | ||||
Number of branches in-process of closing | item | 1 | ||||
Number of jurisdictions gray-listed | item | 47 | 55 | |||
Number of jurisdictions in which entity has presence | item | 4 | ||||
Cayman Islands | Off-shore entities | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of branches | item | 2 | ||||
Jersey And Isle Of Man | Off-shore entities | |||||
Disclosure of detailed information about business combination [line items] | |||||
Profit (loss) | € | € 2.7 | ||||
Isle Of Man | Off-shore entities | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of subsidiaries resident in off-shore territories | subsidiary | 1 | ||||
Number of subsidiaries that have been liquidated | subsidiary | 1 | ||||
Number of branches | item | 1 | ||||
Jersey | Off-shore entities | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of subsidiaries resident in off-shore territories | subsidiary | 2 | ||||
Number of branches | item | 1 | ||||
HONG KONG | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of branches | company | 1 | ||||
Number of subsidiaries | company | 2 | ||||
PERU | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of subsidiaries in liquidation | company | 1 | ||||
Number of subsidiaries | company | 5 | ||||
SWITZERLAND | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of subsidiaries | company | 6 | ||||
URUGUAY | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of subsidiaries in liquidation | company | 7 | ||||
Number of subsidiaries | company | 13 | ||||
PANAMA | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of subsidiaries | company | 1 | ||||
United Kingdom | Off-shore entities | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of subsidiaries resident in off-shore territories | subsidiary | 4 |
Distribution of the Bank's p135
Distribution of the Bank's profit, etc. - Distributions (Details) € / shares in Units, € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€)€ / shares | |
Distributions, Shareholder Remuneration and Earnings Per Share [Abstract] | |
First and third interim dividends and final dividend | € 2,898 |
Acquisition, with a waiver of exercise, of bonus share rights | 99 |
Total proposed distributions, dividends proposed or declared | 2,997 |
Approved at December 31, 2017 | 2,029 |
Final dividend | 968 |
To voluntary reserves | 9 |
Net profit for the year | 3,006 |
Amount of shares allocated to the remuneration of shareholders under the shareholder remuneration scheme. | € 543 |
Total remuneration per share | € / shares | € 0.22 |
Distribution of the Bank's p136
Distribution of the Bank's profit, etc. - EPS Basic (Details) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic earnings per share [abstract] | |||
Profit (loss), attributable to owners of parent | € 6,619 | € 6,204 | € 5,966 |
Remuneration of contingently convertible preference shares (PPC) (millions of euros) | (395) | (334) | (276) |
Net profit for the year | 6,224 | 5,870 | 5,690 |
Profit or Loss from continuing operations (net of non-controlling interests) (millions of euros) | € 6,224 | € 5,870 | € 5,690 |
Weighted average number of shares outstanding | 15,394,458,789 | 14,656,359,963 | 14,349,578,605 |
Total basic earnings (loss) per share | € 0.404 | € 0.401 | € 0.397 |
Basic earnings per share from discontinued operations (euros) | 0 | 0 | 0 |
Basic earnings per share from continuing operations (euros) | € 0.404 | € 0.401 | € 0.397 |
Distribution of the Bank's p137
Distribution of the Bank's profit, etc. - EPS Diluted (Details) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Diluted earnings per share [abstract] | |||
Profit (loss), attributable to owners of parent | € 6,619 | € 6,204 | € 5,966 |
Remuneration of contingently convertible preference shares (PPC) (millions of euros) | (395) | (334) | (276) |
Profit attributable to ordinary equity holders of parent including dilutive effects | 6,224 | 5,870 | 5,690 |
Profit or Loss from continuing operations (net of non-controlling interests) (millions of euros) | € 6,224 | € 5,870 | € 5,690 |
Weighted average number of shares outstanding | 15,394,458,789 | 14,656,359,963 | 14,349,578,605 |
Dilutive effect of options/rights on shares | 50,962,887 | 45,754,981 | 27,227,606 |
Adjusted number of shares | 15,445,421,676 | 14,702,114,944 | 14,376,806,211 |
Total diluted earnings (loss) per share | € 0.403 | € 0.399 | € 0.396 |
Diluted earnings per share from discontinued operations (euros) | 0 | 0 | 0 |
Diluted earnings per share from continuing operations (euros) | € 0.403 | € 0.399 | € 0.396 |
Remuneration and other benef138
Remuneration and other benefits paid to the Bank's directors and senior managers - Emoluments (Details) | 12 Months Ended | |
Dec. 31, 2017EUR (€)component | Dec. 31, 2016EUR (€)component | |
Remuneration of key personnel | ||
By-law stipulated emoluments | € 4,700,000 | € 4,600,000 |
Bank's directors and senior managers | ||
Remuneration of key personnel | ||
Remuneration of directors approved by the board of directors | € 6,000,000 | € 6,000,000 |
Number of remuneration components | component | 2 | 2 |
Members of the Board of Directors | ||
Remuneration of key personnel | ||
Annual emoluments | € 1,675,000 | € 1,645,000 |
Annual emoluments, per director | 87,500 | 85,000 |
Members of the executive committee | ||
Remuneration of key personnel | ||
Annual emoluments | 1,345,000 | 1,360,000 |
Annual emoluments, per director | 170,000 | 170,000 |
Members of the audit committee | ||
Remuneration of key personnel | ||
Annual emoluments | 160,000 | 190,000 |
Annual emoluments, per director | 40,000 | 40,000 |
Members of the appointments committee | ||
Remuneration of key personnel | ||
Annual emoluments | 125,000 | 143,000 |
Annual emoluments, per director | 25,000 | 25,000 |
Members of the remuneration committee | ||
Remuneration of key personnel | ||
Annual emoluments | 123,000 | 143,000 |
Annual emoluments, per director | 25,000 | 25,000 |
Members of the risk supervision, regulation and compliance oversight committee | ||
Remuneration of key personnel | ||
Annual emoluments | 280,000 | 277,000 |
Annual emoluments, per director | 40,000 | 40,000 |
Chairman of the audit committee | ||
Remuneration of key personnel | ||
Annual emoluments, per director | 50,000 | 50,000 |
Chairman of the appointments committee | ||
Remuneration of key personnel | ||
Annual emoluments, per director | 50,000 | 50,000 |
Chairman of the remuneration committee | ||
Remuneration of key personnel | ||
Annual emoluments, per director | 50,000 | 50,000 |
Chairman of the risk, regulation and compliance oversight committee | ||
Remuneration of key personnel | ||
Annual emoluments, per director | 50,000 | 50,000 |
Coordinating director | ||
Remuneration of key personnel | ||
Annual emoluments, per director | 110,000 | 110,000 |
Non-executive deputy chairman | ||
Remuneration of key personnel | ||
Annual emoluments, per director | € 30,000 | € 30,000 |
Remuneration and other benef139
Remuneration and other benefits paid to the Bank's directors and senior managers - Attendance fees (Details) - EUR (€) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Members of the Board of Directors | ||
Remuneration of key personnel | ||
Attendance fees and commissions, per meeting | € 2,600 | € 2,500 |
Audit committee and risk supervision, regulation and compliance oversight committee | ||
Remuneration of key personnel | ||
Attendance fees and commissions, per meeting | 1,700 | 1,700 |
Other committees | ||
Remuneration of key personnel | ||
Attendance fees and commissions, per meeting | € 1,500 | € 1,500 |
Remuneration and other benef140
Remuneration and other benefits paid to the Bank's directors and senior managers - Salaries (Details) - Deferred variable compensation plan linked to multiannual objectives | 12 Months Ended | |
Dec. 31, 2017installment | Dec. 31, 2016payment | |
Remuneration of key personnel | ||
Immediate payment percentage | 40.00% | |
Deferred percentage | 60.00% | |
Variable Remuneration or bonus deferral period | 5 years | |
Number of payments subject to fulfilment of specific objectives | payment | 5 | |
Percentage paid in cash | 50.00% | |
Percentage paid in shares | 50.00% | |
Directors | ||
Remuneration of key personnel | ||
Immediate payment percentage | 40.00% | |
Deferred percentage | 60.00% | |
Variable Remuneration or bonus deferral period | 5 years | 5 years |
Number of payments subject to fulfilment of specific objectives | installment | 3 |
Remuneration and other benef141
Remuneration and other benefits paid to the Bank's directors and senior managers - Remuneration by Director (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Remuneration of key personnel | ||
Total | € 25,551 | |
Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Total | 7,279 | |
Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Total | 6,006 | |
Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Total | 3,824 | |
Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Total | 4,474 | |
Mr. Guillermo de la Dehesa Romero | ||
Remuneration of key personnel | ||
Total | 461 | |
Mr. Bruce Carnegie-Brown | ||
Remuneration of key personnel | ||
Total | 721 | |
Mr. Ignacio Benjumea Cabeza de Vaca | ||
Remuneration of key personnel | ||
Total | 945 | |
Francisco Javier Botin Sanz De Sautuola Y O'Shea | ||
Remuneration of key personnel | ||
Total | 115 | |
Mrs. Sol Daurella Comadran | ||
Remuneration of key personnel | ||
Total | 191 | |
Mr. Carlos Fernandez Gonzalez | ||
Remuneration of key personnel | ||
Total | 254 | |
Mrs. Esther Gimenez-Salinas i Colomer | ||
Remuneration of key personnel | ||
Total | 122 | |
Mr. Angel Jado Becerro de Bengoa | ||
Remuneration of key personnel | ||
Total | 231 | |
Mrs. Belen Romana Garcia | ||
Remuneration of key personnel | ||
Total | 219 | |
Mrs. Isabel Tocino Biscarolasaga | ||
Remuneration of key personnel | ||
Total | 442 | |
Mr. Juan Miguel Villar Mir | ||
Remuneration of key personnel | ||
Total | 235 | |
Mr. Homaira Akbari | ||
Remuneration of key personnel | ||
Total | 32 | |
Mr. Ramiro Mato Garca Ansorena | ||
Remuneration of key personnel | ||
Total | 0 | |
Bank's Directors | ||
Remuneration of key personnel | ||
Other remuneration | € 2,387 | 2,536 |
Total | 26,470 | |
Bank's Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Other remuneration | 689 | |
Total | 7,874 | |
Bank's Directors | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Other remuneration | 1,203 | |
Total | 6,436 | |
Bank's Directors | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Other remuneration | 201 | |
Total | 4,281 | |
Bank's Directors | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Other remuneration | 188 | |
Total | 4,266 | |
Bank's Directors | Mr. Guillermo de la Dehesa Romero | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 473 | |
Bank's Directors | Mr. Bruce Carnegie-Brown | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 731 | |
Bank's Directors | Mr. Ignacio Benjumea Cabeza de Vaca | ||
Remuneration of key personnel | ||
Other remuneration | 106 | |
Total | 550 | |
Bank's Directors | Francisco Javier Botin Sanz De Sautuola Y O'Shea | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 124 | |
Bank's Directors | Mrs. Sol Daurella Comadran | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 207 | |
Bank's Directors | Mr. Carlos Fernandez Gonzalez | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 285 | |
Bank's Directors | Mrs. Esther Gimenez-Salinas i Colomer | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 162 | |
Bank's Directors | Mr. Angel Jado Becerro de Bengoa | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 0 | |
Bank's Directors | Mrs. Belen Romana Garcia | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 297 | |
Bank's Directors | Mrs. Isabel Tocino Biscarolasaga | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 418 | |
Bank's Directors | Mr. Juan Miguel Villar Mir | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 170 | |
Bank's Directors | Mr. Homaira Akbari | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 159 | |
Bank's Directors | Mr. Ramiro Mato Garca Ansorena | ||
Remuneration of key personnel | ||
Other remuneration | 0 | |
Total | 36 | |
Members of the Board of Directors | ||
Remuneration of key personnel | ||
Annual emoluments | 1,675 | 1,645 |
Attendance fees | 972 | 859 |
Members of the Board of Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 44 | |
Members of the Board of Directors | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 44 | |
Members of the Board of Directors | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 38 | |
Members of the Board of Directors | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Annual emoluments | 80 | |
Attendance fees | 41 | |
Members of the Board of Directors | Mr. Guillermo de la Dehesa Romero | ||
Remuneration of key personnel | ||
Annual emoluments | 118 | |
Attendance fees | 95 | |
Members of the Board of Directors | Mr. Bruce Carnegie-Brown | ||
Remuneration of key personnel | ||
Annual emoluments | 378 | |
Attendance fees | 94 | |
Members of the Board of Directors | Mr. Ignacio Benjumea Cabeza de Vaca | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 97 | |
Members of the Board of Directors | Francisco Javier Botin Sanz De Sautuola Y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 36 | |
Members of the Board of Directors | Mrs. Sol Daurella Comadran | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 69 | |
Members of the Board of Directors | Mr. Carlos Fernandez Gonzalez | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 93 | |
Members of the Board of Directors | Mrs. Esther Gimenez-Salinas i Colomer | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 54 | |
Members of the Board of Directors | Mr. Angel Jado Becerro de Bengoa | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Attendance fees | 0 | |
Members of the Board of Directors | Mrs. Belen Romana Garcia | ||
Remuneration of key personnel | ||
Annual emoluments | 138 | |
Attendance fees | 80 | |
Members of the Board of Directors | Mrs. Isabel Tocino Biscarolasaga | ||
Remuneration of key personnel | ||
Annual emoluments | 80 | |
Attendance fees | 87 | |
Members of the Board of Directors | Mr. Juan Miguel Villar Mir | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 44 | |
Members of the Board of Directors | Mr. Homaira Akbari | ||
Remuneration of key personnel | ||
Annual emoluments | 88 | |
Attendance fees | 51 | |
Members of the Board of Directors | Mr. Ramiro Mato Garca Ansorena | ||
Remuneration of key personnel | ||
Annual emoluments | 8 | |
Attendance fees | 6 | |
Members of the executive committee | ||
Remuneration of key personnel | ||
Annual emoluments | 1,345 | 1,360 |
Members of the executive committee | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 170 | |
Members of the executive committee | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Annual emoluments | 170 | |
Members of the executive committee | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Annual emoluments | 170 | |
Members of the executive committee | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Annual emoluments | 155 | |
Members of the executive committee | Mr. Guillermo de la Dehesa Romero | ||
Remuneration of key personnel | ||
Annual emoluments | 170 | |
Members of the executive committee | Mr. Bruce Carnegie-Brown | ||
Remuneration of key personnel | ||
Annual emoluments | 170 | |
Members of the executive committee | Mr. Ignacio Benjumea Cabeza de Vaca | ||
Remuneration of key personnel | ||
Annual emoluments | 170 | |
Members of the executive committee | Francisco Javier Botin Sanz De Sautuola Y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the executive committee | Mrs. Sol Daurella Comadran | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the executive committee | Mr. Carlos Fernandez Gonzalez | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the executive committee | Mrs. Esther Gimenez-Salinas i Colomer | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the executive committee | Mr. Angel Jado Becerro de Bengoa | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the executive committee | Mrs. Belen Romana Garcia | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the executive committee | Mrs. Isabel Tocino Biscarolasaga | ||
Remuneration of key personnel | ||
Annual emoluments | 155 | |
Members of the executive committee | Mr. Juan Miguel Villar Mir | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the executive committee | Mr. Homaira Akbari | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the executive committee | Mr. Ramiro Mato Garca Ansorena | ||
Remuneration of key personnel | ||
Annual emoluments | 15 | |
Members of the audit committee | ||
Remuneration of key personnel | ||
Annual emoluments | 160 | 190 |
Members of the audit committee | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mr. Guillermo de la Dehesa Romero | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mr. Bruce Carnegie-Brown | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mr. Ignacio Benjumea Cabeza de Vaca | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Francisco Javier Botin Sanz De Sautuola Y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mrs. Sol Daurella Comadran | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mr. Carlos Fernandez Gonzalez | ||
Remuneration of key personnel | ||
Annual emoluments | 40 | |
Members of the audit committee | Mrs. Esther Gimenez-Salinas i Colomer | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mr. Angel Jado Becerro de Bengoa | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the audit committee | Mrs. Belen Romana Garcia | ||
Remuneration of key personnel | ||
Annual emoluments | 40 | |
Members of the audit committee | Mrs. Isabel Tocino Biscarolasaga | ||
Remuneration of key personnel | ||
Annual emoluments | 36 | |
Members of the audit committee | Mr. Juan Miguel Villar Mir | ||
Remuneration of key personnel | ||
Annual emoluments | 19 | |
Members of the audit committee | Mr. Homaira Akbari | ||
Remuneration of key personnel | ||
Annual emoluments | 21 | |
Members of the audit committee | Mr. Ramiro Mato Garca Ansorena | ||
Remuneration of key personnel | ||
Annual emoluments | 4 | |
Members of the appointments committee | ||
Remuneration of key personnel | ||
Annual emoluments | 125 | 143 |
Members of the appointments committee | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mr. Guillermo de la Dehesa Romero | ||
Remuneration of key personnel | ||
Annual emoluments | 25 | |
Members of the appointments committee | Mr. Bruce Carnegie-Brown | ||
Remuneration of key personnel | ||
Annual emoluments | 25 | |
Members of the appointments committee | Mr. Ignacio Benjumea Cabeza de Vaca | ||
Remuneration of key personnel | ||
Annual emoluments | 25 | |
Members of the appointments committee | Francisco Javier Botin Sanz De Sautuola Y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mrs. Sol Daurella Comadran | ||
Remuneration of key personnel | ||
Annual emoluments | 25 | |
Members of the appointments committee | Mr. Carlos Fernandez Gonzalez | ||
Remuneration of key personnel | ||
Annual emoluments | 25 | |
Members of the appointments committee | Mrs. Esther Gimenez-Salinas i Colomer | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mr. Angel Jado Becerro de Bengoa | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mrs. Belen Romana Garcia | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mrs. Isabel Tocino Biscarolasaga | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mr. Juan Miguel Villar Mir | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mr. Homaira Akbari | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the appointments committee | Mr. Ramiro Mato Garca Ansorena | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | ||
Remuneration of key personnel | ||
Annual emoluments | 123 | 143 |
Members of the remuneration committee | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mr. Guillermo de la Dehesa Romero | ||
Remuneration of key personnel | ||
Annual emoluments | 25 | |
Members of the remuneration committee | Mr. Bruce Carnegie-Brown | ||
Remuneration of key personnel | ||
Annual emoluments | 25 | |
Members of the remuneration committee | Mr. Ignacio Benjumea Cabeza de Vaca | ||
Remuneration of key personnel | ||
Annual emoluments | 25 | |
Members of the remuneration committee | Francisco Javier Botin Sanz De Sautuola Y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mrs. Sol Daurella Comadran | ||
Remuneration of key personnel | ||
Annual emoluments | 25 | |
Members of the remuneration committee | Mr. Carlos Fernandez Gonzalez | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mrs. Esther Gimenez-Salinas i Colomer | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mr. Angel Jado Becerro de Bengoa | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mrs. Belen Romana Garcia | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mrs. Isabel Tocino Biscarolasaga | ||
Remuneration of key personnel | ||
Annual emoluments | 23 | |
Members of the remuneration committee | Mr. Juan Miguel Villar Mir | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mr. Homaira Akbari | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the remuneration committee | Mr. Ramiro Mato Garca Ansorena | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the risk supervision, regulation and compliance oversight committee | ||
Remuneration of key personnel | ||
Annual emoluments | 280 | 277 |
Members of the risk supervision, regulation and compliance oversight committee | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Guillermo de la Dehesa Romero | ||
Remuneration of key personnel | ||
Annual emoluments | 40 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Bruce Carnegie-Brown | ||
Remuneration of key personnel | ||
Annual emoluments | 40 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Ignacio Benjumea Cabeza de Vaca | ||
Remuneration of key personnel | ||
Annual emoluments | 40 | |
Members of the risk supervision, regulation and compliance oversight committee | Francisco Javier Botin Sanz De Sautuola Y O'Shea | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the risk supervision, regulation and compliance oversight committee | Mrs. Sol Daurella Comadran | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Carlos Fernandez Gonzalez | ||
Remuneration of key personnel | ||
Annual emoluments | 40 | |
Members of the risk supervision, regulation and compliance oversight committee | Mrs. Esther Gimenez-Salinas i Colomer | ||
Remuneration of key personnel | ||
Annual emoluments | 21 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Angel Jado Becerro de Bengoa | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the risk supervision, regulation and compliance oversight committee | Mrs. Belen Romana Garcia | ||
Remuneration of key personnel | ||
Annual emoluments | 40 | |
Members of the risk supervision, regulation and compliance oversight committee | Mrs. Isabel Tocino Biscarolasaga | ||
Remuneration of key personnel | ||
Annual emoluments | 36 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Juan Miguel Villar Mir | ||
Remuneration of key personnel | ||
Annual emoluments | 19 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Homaira Akbari | ||
Remuneration of key personnel | ||
Annual emoluments | 0 | |
Members of the risk supervision, regulation and compliance oversight committee | Mr. Ramiro Mato Garca Ansorena | ||
Remuneration of key personnel | ||
Annual emoluments | 4 | |
Directors | ||
Remuneration of key personnel | ||
Fixed salary | 7,568 | 7,710 |
Variable compensation, immediate payments, cash | 3,699 | 3,340 |
Variable compensation, immediate payments, in shares | 3,699 | 3,340 |
Deferred variable compensation, cash | 2,219 | 2,004 |
Deferred variable compensation, in shares | 2,219 | 2,004 |
Total Short-term and deferred (not subject to long term goals) salaries | 19,404 | € 18,398 |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Fixed salary | 2,500 | |
Variable compensation, immediate payments, cash | 1,370 | |
Variable compensation, immediate payments, in shares | 1,370 | |
Deferred variable compensation, cash | 822 | |
Deferred variable compensation, in shares | 822 | |
Total Short-term and deferred (not subject to long term goals) salaries | 6,884 | |
Directors | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Fixed salary | 2,000 | |
Variable compensation, immediate payments, cash | 916 | |
Variable compensation, immediate payments, in shares | 916 | |
Deferred variable compensation, cash | 550 | |
Deferred variable compensation, in shares | 550 | |
Total Short-term and deferred (not subject to long term goals) salaries | 4,932 | |
Directors | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Fixed salary | 1,500 | |
Variable compensation, immediate payments, cash | 714 | |
Variable compensation, immediate payments, in shares | 714 | |
Deferred variable compensation, cash | 428 | |
Deferred variable compensation, in shares | 428 | |
Total Short-term and deferred (not subject to long term goals) salaries | 3,785 | |
Directors | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Fixed salary | 1,568 | |
Variable compensation, immediate payments, cash | 698 | |
Variable compensation, immediate payments, in shares | 698 | |
Deferred variable compensation, cash | 419 | |
Deferred variable compensation, in shares | 419 | |
Total Short-term and deferred (not subject to long term goals) salaries | 3,803 | |
Directors | Mr. Guillermo de la Dehesa Romero | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mr. Bruce Carnegie-Brown | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mr. Ignacio Benjumea Cabeza de Vaca | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Francisco Javier Botin Sanz De Sautuola Y O'Shea | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mrs. Sol Daurella Comadran | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mr. Carlos Fernandez Gonzalez | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mrs. Esther Gimenez-Salinas i Colomer | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mr. Angel Jado Becerro de Bengoa | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mrs. Belen Romana Garcia | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mrs. Isabel Tocino Biscarolasaga | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mr. Juan Miguel Villar Mir | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mr. Homaira Akbari | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | 0 | |
Directors | Mr. Ramiro Mato Garca Ansorena | ||
Remuneration of key personnel | ||
Fixed salary | 0 | |
Variable compensation, immediate payments, cash | 0 | |
Variable compensation, immediate payments, in shares | 0 | |
Deferred variable compensation, cash | 0 | |
Deferred variable compensation, in shares | 0 | |
Total Short-term and deferred (not subject to long term goals) salaries | € 0 |
Remuneration and other benef142
Remuneration and other benefits paid to the Bank's directors and senior managers - Remuneration by Director - Multiannual (Details) - Directors - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Compensation received as a non-executive director of U.C.I., S.A. | € 42 | € 42 |
Deferred variable compensation plan linked to multiannual objectives | ||
Remuneration of key personnel | ||
Variable compensation subject to Long-term objectives, in cash | 2,330 | |
Variable compensation subject to Long-term objectives, in shares | 2,330 | |
Total | 4,660 | 4,208 |
Deferred variable compensation plan linked to multiannual objectives | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Variable compensation subject to Long-term objectives, in cash | 863 | |
Variable compensation subject to Long-term objectives, in shares | 863 | |
Total | 1,726 | 1,518 |
Deferred variable compensation plan linked to multiannual objectives | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Variable compensation subject to Long-term objectives, in cash | 577 | |
Variable compensation subject to Long-term objectives, in shares | 577 | |
Total | 1,154 | 1,026 |
Deferred variable compensation plan linked to multiannual objectives | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Variable compensation subject to Long-term objectives, in cash | 450 | |
Variable compensation subject to Long-term objectives, in shares | 450 | |
Total | 900 | 760 |
Deferred variable compensation plan linked to multiannual objectives | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Variable compensation subject to Long-term objectives, in cash | 440 | |
Variable compensation subject to Long-term objectives, in shares | 440 | |
Total | € 880 | € 904 |
Remuneration and other benef143
Remuneration and other benefits paid to the Bank's directors and senior managers - Post-employment (Details) € in Thousands | 12 Months Ended | |||
Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€)period | Dec. 31, 2014EUR (€) | |
Related party transactions key personnel | ||||
Period for investment in bank shares from date of termination | 5 years | |||
Disbursed for payment of civil liability insurance premium | € 10,500 | € 9,300 | ||
Directors | ||||
Related party transactions key personnel | ||||
Employer contributions to welfare system | 0 | 0 | € 0 | € 0 |
Balances held under the welfare system | 75,906 | 120,787 | ||
Provisions for employee benefits | 5,163 | 4,770 | ||
Directors | Life insurance | ||||
Insurance | ||||
Life insurance, Insured sum | 18,000 | 23,131 | ||
Other directors | Life insurance | ||||
Insurance | ||||
Life insurance, Insured sum | 0 | 0 | ||
Other directors | Provision for pensions and other employment defined benefit obligations | ||||
Related party transactions key personnel | ||||
Contributions to plan | € 900 | 900 | ||
Mrs. Ana Botin-Sanz de Sautuola y O'Shea | Directors | ||||
Related party transactions key personnel | ||||
Annual contribution, percentage of variable remuneration | 30.00% | |||
Balances held under the welfare system | € 45,798 | 43,156 | ||
Provisions for employee benefits | 2,707 | 2,521 | ||
Mrs. Ana Botin-Sanz de Sautuola y O'Shea | Directors | Life insurance | ||||
Insurance | ||||
Life insurance, Insured sum | 7,500 | 7,500 | ||
Mr. Jose Antonio Alvarez Alvarez | Directors | ||||
Related party transactions key personnel | ||||
Balances held under the welfare system | 16,151 | 15,107 | ||
Provisions for employee benefits | 2,456 | 2,249 | ||
Mr. Jose Antonio Alvarez Alvarez | Directors | Life insurance | ||||
Insurance | ||||
Life insurance, Insured sum | 6,000 | 6,000 | ||
Mr. Rodrigo Echenique Gordillo | ||||
Related party transactions key personnel | ||||
Annual contribution, percentage of fixed annual remuneration | 55.00% | |||
Annual contribution, percentage of variable remuneration | 30.00% | |||
Number of annual periods used for contribution calculation | period | 3 | |||
Pensionable base, expressed as a percent of fixed remuneration | 100.00% | |||
Mr. Rodrigo Echenique Gordillo | Directors | ||||
Related party transactions key personnel | ||||
Balances held under the welfare system | 13,957 | 14,294 | ||
Mr. Rodrigo Echenique Gordillo | Directors | Life insurance | ||||
Insurance | ||||
Life insurance, Insured sum | 4,500 | 4,500 | ||
Mr. Rodrigo Echenique Gordillo | The Bank Senior management | ||||
Related party transactions key personnel | ||||
Annual contribution, percentage of fixed annual remuneration | 55.93% | |||
Pensionable base, expressed as a percent of fixed remuneration | 100.00% | |||
Mr. Matias Rodriguez Inciarte | Directors | ||||
Related party transactions key personnel | ||||
Balances held under the welfare system | 48,230 | |||
Mr. Matias Rodriguez Inciarte | Directors | Life insurance | ||||
Insurance | ||||
Life insurance, Insured sum | € 5,131 |
Remuneration and other benef144
Remuneration and other benefits paid to the Bank's directors and senior managers - Deferred variable remuneration systems (Details) | 12 Months Ended | 60 Months Ended | |
Dec. 31, 2017EUR (€)itemperiodshares | Dec. 31, 2016itemperiodcompany | Dec. 31, 2015 | |
Senior management | |||
Related party transactions key personnel | |||
Award, number of shares | 1,430,143 | 1,596,248 | |
Long-term and deferred compensation | € | € 4,650,000 | ||
Maximum number of shares to be delivered | shares | 648,457 | ||
Deferred variable compensation plan linked to multiannual objectives | |||
Related party transactions key personnel | |||
Deferred percentage | 60.00% | ||
Variable Remuneration or bonus deferral period | 5 years | ||
Variable Remuneration Immediate Payment Percentage | 40.00% | ||
Number of trading sessions | 15 | 15 | |
Percentage paid in cash | 50.00% | ||
Percentage paid in shares | 50.00% | ||
Number of credit institutions included in reference group | 35 | 17 | |
Deferred variable compensation plan linked to multiannual objectives | Maximum | |||
Related party transactions key personnel | |||
Variable Remuneration or bonus deferral period | 5 years | ||
Deferred variable compensation plan linked to multiannual objectives | Directors | |||
Related party transactions key personnel | |||
Deferred percentage | 60.00% | ||
Variable Remuneration or bonus deferral period | 5 years | 5 years | |
Variable Remuneration Immediate Payment Percentage | 40.00% | ||
Deferred variable compensation plan linked to multiannual objectives | Other directors | |||
Related party transactions key personnel | |||
Variable Remuneration or bonus deferral period | 3 years | ||
Deferred conditional variable remuneration plan | |||
Related party transactions key personnel | |||
Deferred percentage | 60.00% | ||
Variable Remuneration or bonus deferral period | 5 years | ||
Number of trading sessions | 15 | 15 | |
Deferred conditional variable remuneration plan | Directors | |||
Related party transactions key personnel | |||
Number of trading sessions | period | 15 | ||
Bonus plans approved up to 2014 | |||
Related party transactions key personnel | |||
Variable Remuneration or bonus deferral period | 3 years | ||
ILP | |||
Related party transactions key personnel | |||
Variable Remuneration or bonus deferral period | 3 years | ||
ILP | Directors | Maximum | |||
Related party transactions key personnel | |||
Award, number of shares | 406,899 | ||
ILP | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | Directors | Maximum | |||
Related party transactions key personnel | |||
Award, number of shares | 187,070 | ||
ILP | Mr. Jose Antonio Alvarez Alvarez | Directors | Maximum | |||
Related party transactions key personnel | |||
Award, number of shares | 126,279 | ||
ILP | Mr. Rodrigo Echenique Gordillo | Directors | Maximum | |||
Related party transactions key personnel | |||
Award, number of shares | 93,540 | ||
ILP | Mr. Matias Rodriguez Inciarte | Directors | Maximum | |||
Related party transactions key personnel | |||
Award, number of shares | 145,922 |
Remuneration and other benef145
Remuneration and other benefits paid to the Bank's directors and senior managers - Share-based Variable Remuneration (Details) | 12 Months Ended | |
Dec. 31, 2017iteminstallment$ / sharesshares | Dec. 31, 2016itempaymentshares | |
Disclosure of transactions between related parties [line items] | ||
Theoretical value per right | $ / shares | $ 0.1047 | |
Deferred variable compensation plan linked to multiannual objectives | ||
Share-based variable remuneration | ||
Immediate payment percentage | 40.00% | |
Deferred percentage | 60.00% | |
Variable Remuneration or bonus deferral period | 5 years | |
Number of payments subject to fulfilment of specific objectives | payment | 5 | |
Deferred variable compensation plan linked to multiannual objectives | Maximum | ||
Share-based variable remuneration | ||
Variable Remuneration or bonus deferral period | 5 years | |
ILP | ||
Share-based variable remuneration | ||
Variable Remuneration or bonus deferral period | 3 years | |
Mr. Ignacio Benjumea Cabeza de Vaca | Deferred variable compensation plan linked to multiannual objectives | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at end of period | 199,234 | |
Directors | ||
Disclosure of transactions between related parties [line items] | ||
Percentage of plan accrued | 33.33% | |
Directors | Deferred variable compensation plan linked to multiannual objectives | ||
Share-based variable remuneration | ||
Immediate payment percentage | 40.00% | |
Deferred percentage | 60.00% | |
Variable Remuneration or bonus deferral period | 5 years | 5 years |
Number of payments subject to fulfilment of specific objectives | installment | 3 | |
Directors | 2012 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (100,533) | |
Directors | 2012 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 100,533 | |
Maximum number of shares to be delivered at end of period | ||
Directors | 2013 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (87,228) | (87,227) |
Directors | 2013 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 87,228 | 174,455 |
Maximum number of shares to be delivered at end of period | 87,228 | |
Directors | 2014 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (133,419) | (133,419) |
Shares arising from the capital increase of July 2017 | 1,985 | |
Directors | 2014 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 266,839 | 400,258 |
Maximum number of shares to be delivered at end of period | 135,405 | 266,839 |
Directors | 2015 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (600,745) | |
Shares delivered (deferred payment variable remuneration) | (180,224) | |
Shares arising from the capital increase of July 2017 | 10,727 | |
Directors | 2015 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 901,118 | 1,501,863 |
Maximum number of shares to be delivered at end of period | 731,621 | 901,118 |
Directors | 2016 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (656,031) | |
Shares arising from the capital increase of July 2017 | 14,644 | |
Directors | 2016 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 1,640,077 | |
Maximum number of shares to be delivered | item | 1,640,077 | |
Maximum number of shares to be delivered at end of period | 998,690 | 1,640,077 |
Directors | 2017 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered | item | 1,550,610 | |
Maximum number of shares to be delivered at end of period | 1,550,610 | |
Directors | ILP | ||
Share-based variable remuneration | ||
Shares arising from the capital increase of July 2017 | 5,967 | |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2012 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (34,958) | |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2012 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 34,958 | |
Maximum number of shares to be delivered at end of period | ||
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2013 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (33,120) | (33,121) |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2013 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 33,120 | 66,241 |
Maximum number of shares to be delivered at end of period | 33,120 | |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2014 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (60,814) | (60,814) |
Shares arising from the capital increase of July 2017 | 905 | |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2014 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 121,630 | 182,444 |
Maximum number of shares to be delivered at end of period | 61,721 | 121,630 |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2015 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (211,534) | |
Shares delivered (deferred payment variable remuneration) | (63,460) | |
Shares arising from the capital increase of July 2017 | 3,777 | |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2015 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 317,300 | 528,834 |
Maximum number of shares to be delivered at end of period | 257,617 | 317,300 |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2016 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (236,817) | |
Shares arising from the capital increase of July 2017 | 5,286 | |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2016 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 592,043 | |
Maximum number of shares to be delivered | item | 592,043 | |
Maximum number of shares to be delivered at end of period | 360,512 | 592,043 |
Directors | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | 2017 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered | item | 574,375 | |
Maximum number of shares to be delivered at end of period | 574,375 | |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2012 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (24,046) | |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2012 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 24,046 | |
Maximum number of shares to be delivered at end of period | ||
Directors | Mr. Jose Antonio Alvarez Alvarez | 2013 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (19,561) | (19,560) |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2013 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 19,561 | 39,121 |
Maximum number of shares to be delivered at end of period | 19,561 | |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2014 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (26,242) | (26,242) |
Shares arising from the capital increase of July 2017 | 390 | |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2014 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 52,484 | 78,726 |
Maximum number of shares to be delivered at end of period | 26,632 | 52,484 |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2015 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (140,609) | |
Shares delivered (deferred payment variable remuneration) | (42,183) | |
Shares arising from the capital increase of July 2017 | 2,511 | |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2015 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 210,914 | 351,523 |
Maximum number of shares to be delivered at end of period | 171,242 | 210,914 |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2016 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (159,843) | |
Shares arising from the capital increase of July 2017 | 3,568 | |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2016 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 399,607 | |
Maximum number of shares to be delivered | item | 399,607 | |
Maximum number of shares to be delivered at end of period | 243,332 | 399,607 |
Directors | Mr. Jose Antonio Alvarez Alvarez | 2017 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered | item | 384,118 | |
Maximum number of shares to be delivered at end of period | 384,118 | |
Directors | Mr. Rodrigo Echenique Gordillo | 2015 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (104,155) | |
Shares delivered (deferred payment variable remuneration) | (31,247) | |
Shares arising from the capital increase of July 2017 | 1,860 | |
Directors | Mr. Rodrigo Echenique Gordillo | 2015 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 156,233 | 260,388 |
Maximum number of shares to be delivered at end of period | 126,846 | 156,233 |
Directors | Mr. Rodrigo Echenique Gordillo | 2016 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (118,389) | |
Shares arising from the capital increase of July 2017 | 2,643 | |
Directors | Mr. Rodrigo Echenique Gordillo | 2016 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 295,972 | |
Maximum number of shares to be delivered | item | 295,972 | |
Maximum number of shares to be delivered at end of period | 180,226 | 295,972 |
Directors | Mr. Rodrigo Echenique Gordillo | 2017 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered | item | 299,346 | |
Maximum number of shares to be delivered at end of period | 299,346 | |
Directors | Mr. Matias Rodriguez Inciarte | 2012 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (41,529) | |
Directors | Mr. Matias Rodriguez Inciarte | 2012 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 41,529 | |
Maximum number of shares to be delivered at end of period | ||
Directors | Mr. Matias Rodriguez Inciarte | 2013 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (34,547) | (34,546) |
Directors | Mr. Matias Rodriguez Inciarte | 2013 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 34,547 | 69,093 |
Maximum number of shares to be delivered at end of period | 34,547 | |
Directors | Mr. Matias Rodriguez Inciarte | 2014 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (deferred payment variable remuneration) | (46,363) | (46,363) |
Shares arising from the capital increase of July 2017 | 690 | |
Directors | Mr. Matias Rodriguez Inciarte | 2014 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 92,725 | 139,088 |
Maximum number of shares to be delivered at end of period | 47,052 | 92,725 |
Directors | Mr. Matias Rodriguez Inciarte | 2015 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (144,447) | |
Shares delivered (deferred payment variable remuneration) | (43,334) | |
Shares arising from the capital increase of July 2017 | 2,579 | |
Directors | Mr. Matias Rodriguez Inciarte | 2015 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 216,671 | 361,118 |
Maximum number of shares to be delivered at end of period | 175,916 | 216,671 |
Directors | Mr. Matias Rodriguez Inciarte | 2016 variable remuneration | ||
Share-based variable remuneration | ||
Shares delivered (immediate payment variable remuneration) | (140,982) | |
Shares arising from the capital increase of July 2017 | 3,147 | |
Directors | Mr. Matias Rodriguez Inciarte | 2016 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered at beginning of period | 352,455 | |
Maximum number of shares to be delivered | item | 352,455 | |
Maximum number of shares to be delivered at end of period | 214,620 | 352,455 |
Directors | Mr. Matias Rodriguez Inciarte | 2017 variable remuneration | Maximum | ||
Share-based variable remuneration | ||
Maximum number of shares to be delivered | item | 292,771 | |
Maximum number of shares to be delivered at end of period | 292,771 |
Remuneration and other benef146
Remuneration and other benefits paid to the Bank's directors and senior managers - Share-based Variable Remuneration - Cash Delivery (Details) - Directors - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
2016 variable remuneration | ||
Remuneration of key personnel | ||
Cash paid | € 3,339 | |
2016 variable remuneration | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Cash paid | 1,205 | |
2016 variable remuneration | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Cash paid | 814 | |
2016 variable remuneration | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Cash paid | 603 | |
2016 variable remuneration | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Cash paid | 718 | |
2015 variable remuneration | ||
Remuneration of key personnel | ||
Cash paid | € 2,386 | |
2015 variable remuneration | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Cash paid | 840 | |
2015 variable remuneration | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Cash paid | 558 | |
2015 variable remuneration | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Cash paid | 414 | |
2015 variable remuneration | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Cash paid | 574 | |
Deferred payments for multi-year variable remuneration awards | ||
Remuneration of key personnel | ||
Cash paid | 2,099 | 2,058 |
Deferred payments for multi-year variable remuneration awards | Mrs. Ana Botin-Sanz de Sautuola y O'Shea | ||
Remuneration of key personnel | ||
Cash paid | 825 | 826 |
Deferred payments for multi-year variable remuneration awards | Mr. Jose Antonio Alvarez Alvarez | ||
Remuneration of key personnel | ||
Cash paid | 461 | 448 |
Deferred payments for multi-year variable remuneration awards | Mr. Rodrigo Echenique Gordillo | ||
Remuneration of key personnel | ||
Cash paid | 124 | |
Deferred payments for multi-year variable remuneration awards | Mr. Matias Rodriguez Inciarte | ||
Remuneration of key personnel | ||
Cash paid | € 690 | € 784 |
Remuneration and other benef147
Remuneration and other benefits paid to the Bank's directors and senior managers - Share-based Variable Remuneration - Former directors (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retired executive directors | Performance shares plan ILP (2015) | Maximum | ||
Remuneration of key personnel | ||
Maximum number of shares to be delivered | 51,447 | 50,693 |
Retired executive directors | Deferred conditional variable remuneration plan | ||
Remuneration of key personnel | ||
Cash paid | € 1,224 | € 1,931 |
Retired executive directors | Deferred conditional variable remuneration plan | 2012 variable remuneration | Maximum | ||
Remuneration of key personnel | ||
Number of shares delivered | 0 | 120,297 |
Retired executive directors | Deferred conditional variable remuneration plan | 2013 variable remuneration | Maximum | ||
Remuneration of key personnel | ||
Maximum number of shares to be delivered | 0 | 80,718 |
Number of shares delivered | 80,718 | 80,718 |
Retired executive directors | Deferred conditional variable remuneration plan | 2014 variable remuneration | Maximum | ||
Remuneration of key personnel | ||
Maximum number of shares to be delivered | 101,537 | 200,097 |
Number of shares delivered | 100,049 | 100,049 |
Retired executive directors | Deferred conditional variable remuneration plan | 2015 variable remuneration | Maximum | ||
Remuneration of key personnel | ||
Maximum number of shares to be delivered | 67,472 | 83,103 |
Number of shares delivered | 16,621 | 55,402 |
Retired senior managers | ||
Remuneration of key personnel | ||
Number of Share Options Earned in Share Based Payment Arrangement through Capital Increase | 3,233 |
Remuneration and other benef148
Remuneration and other benefits paid to the Bank's directors and senior managers - Loans (Details) - EUR (€) € in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | € 88 | € 74 |
Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 88 | 74 |
Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Mrs. Ana Botin-Sanz de Sautuola y O'Shea | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 10 | |
Mrs. Ana Botin-Sanz de Sautuola y O'Shea | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 10 | |
Mrs. Ana Botin-Sanz de Sautuola y O'Shea | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Mr. Jose Antonio Alvarez Alvarez | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 9 | 9 |
Mr. Jose Antonio Alvarez Alvarez | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 9 | 9 |
Mr. Jose Antonio Alvarez Alvarez | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Mr. Bruce Carnegie-Brown | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 2 |
Mr. Bruce Carnegie-Brown | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 2 |
Mr. Bruce Carnegie-Brown | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Mr. Matias Rodriguez Inciarte | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | |
Mr. Matias Rodriguez Inciarte | Loans and credits | ||
Direct risk exposure | ||
Total direct risk exposure | 13 | 16 |
Mr. Matias Rodriguez Inciarte | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | |
Mr. Matias Rodriguez Inciarte | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Mr. Rodrigo Echenique Gordillo | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 22 | 21 |
Mr. Rodrigo Echenique Gordillo | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 22 | 21 |
Mr. Rodrigo Echenique Gordillo | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Francisco Javier Botin Sanz De Sautuola Y O'Shea | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 17 | 4 |
Francisco Javier Botin Sanz De Sautuola Y O'Shea | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 17 | 4 |
Francisco Javier Botin Sanz De Sautuola Y O'Shea | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Mrs. Sol Daurella Comadran | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 27 | 25 |
Mrs. Sol Daurella Comadran | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 27 | 25 |
Mrs. Sol Daurella Comadran | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Mr. Ignacio Benjumea Cabeza de Vaca | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 2 |
Mr. Ignacio Benjumea Cabeza de Vaca | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 2 |
Mr. Ignacio Benjumea Cabeza de Vaca | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Mrs. Belen Romana Garcia | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 3 | |
Mrs. Belen Romana Garcia | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 3 | |
Mrs. Belen Romana Garcia | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 0 |
Mr. Guillermo de la Dehesa Romero | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 11 |
Mr. Guillermo de la Dehesa Romero | Loans and credits | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | 0 | 11 |
Mr. Guillermo de la Dehesa Romero | Guarantees | Bank's Directors | ||
Direct risk exposure | ||
Total direct risk exposure | € 0 | € 0 |
Remuneration and other benef149
Remuneration and other benefits paid to the Bank's directors and senior managers - Senior Managers Remuneration - Short-term (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017EUR (€)itememployee | Dec. 31, 2016EUR (€)itememployee | Dec. 31, 2015employee | |
Remuneration of key personnel | |||
Number of persons | employee | 202,251 | 188,492 | 193,863 |
Total | € 25,551 | ||
Senior management | |||
Remuneration of key personnel | |||
Number of persons | employee | 19 | 18 | |
Fixed salary | € 17,847 | € 17,258 | |
Other remuneration | 7,348 | 4,430 | |
Total | 51,058 | 45,430 | |
Other remuneration, life insurance premiums | € 692 | € 557 | |
Award, number of shares | item | 1,430,143 | 1,596,248 | |
Senior management | Banco Santander (Mexico), S.A., Institucion De Banca Multiple, Grupo Financiero Santander Mexico | |||
Remuneration of key personnel | |||
Award, number of shares | item | 225,564 | ||
Deferred conditional variable remuneration plan | Senior management | |||
Remuneration of key personnel | |||
Variable compensation, immediate payments, cash | € 4,052 | € 3,745 | |
Variable compensation, immediate payments, in shares | 4,052 | 3,745 | |
ILP | Senior management | |||
Remuneration of key personnel | |||
Variable compensation, immediate payments, cash | 8,879 | 8,126 | |
Variable compensation, immediate payments, in shares | € 8,879 | € 8,126 |
Remuneration and other benef150
Remuneration and other benefits paid to the Bank's directors and senior managers - Senior Managers Remuneration - Multiannual (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2017EUR (€)employee | Dec. 31, 2016EUR (€)employee | Dec. 31, 2015employee | |
Remuneration of key personnel | |||
Number of persons | employee | 202,251 | 188,492 | 193,863 |
Senior management | |||
Remuneration of key personnel | |||
Number of persons | employee | 19 | 18 | |
Retired senior managers | |||
Remuneration of key personnel | |||
Salaries and other remuneration related to retirement | € 5,237 | ||
Deferred variable compensation plan linked to multiannual objectives | Senior management | |||
Remuneration of key personnel | |||
Number of persons | employee | 19 | 18 | |
Variable compensation subject to Long-term objectives, in cash | € 4,255 | € 3,933 | |
Variable compensation subject to Long-term objectives, in shares | 4,255 | 3,933 | |
Total | 8,510 | € 7,866 | |
Deferred variable compensation plan linked to multiannual objectives | Retired senior managers | |||
Remuneration of key personnel | |||
Salaries and other remuneration related to retirement | € 999 |
Remuneration and other benef151
Remuneration and other benefits paid to the Bank's directors and senior managers - Share-based Variable Remuneration - Senior Managers - Shares Delivered (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Remuneration of key personnel | |||
Net charge to income | € 88 | € 81 | € 96 |
Amount paid for retirement pension benefit | € 260 | 20 | |
Senior management | |||
Remuneration of key personnel | |||
Shares arising from the capital increase of July 2017 | 66,339 | ||
Maximum number of shares to be delivered | 648,457 | ||
Holding period for shares issued in settlement of pension obligations | 5 years | ||
Pension system balance | € 118.7 | 99.3 | |
Net charge to income | € 14.5 | € 12.9 | |
Executive vice presidents | 2012 variable remuneration | |||
Remuneration of key personnel | |||
Number of shares delivered | 0 | 251,445 | |
Executive vice presidents | 2013 variable remuneration | |||
Remuneration of key personnel | |||
Number of shares delivered | 226,766 | 271,996 | |
Executive vice presidents | 2014 variable remuneration | |||
Remuneration of key personnel | |||
Number of shares delivered | 318,690 | 379,978 | |
Executive vice presidents | 2015 variable remuneration | |||
Remuneration of key personnel | |||
Number of shares delivered | 349,725 | 0 | |
Retired senior managers | |||
Remuneration of key personnel | |||
Shares arising from the capital increase of July 2017 | 3,233 | ||
Amount paid for retirement pension benefit | € 0 | € 6.7 | |
Capital insured by life and accident insurance | € 53.6 | € 59.1 | |
Maximum | Senior management | 2013 variable remuneration | |||
Remuneration of key personnel | |||
Maximum number of shares to be delivered | 0 | 271,996 | |
Maximum | Senior management | 2014 variable remuneration | |||
Remuneration of key personnel | |||
Maximum number of shares to be delivered | 323,424 | 759,950 | |
Maximum | Senior management | 2015 variable remuneration | |||
Remuneration of key personnel | |||
Maximum number of shares to be delivered | 1,296,424 | 1,981,670 | |
Maximum | Senior management | Performance shares plan ILP (2015) | |||
Remuneration of key personnel | |||
Maximum number of shares to be delivered | 1,050,087 | 1,339,506 | |
Maximum | Senior management | Deferred conditional variable remuneration plan and linked to objectives (2016) | |||
Remuneration of key personnel | |||
Maximum number of shares to be delivered | 1,854,495 | 1,954,431 | |
Maximum | Senior management | Deferred conditional variable remuneration plan and linked to objectives (2017) | |||
Remuneration of key personnel | |||
Maximum number of shares to be delivered | 1,779,302 | 0 | |
Maximum | Banco Santander S.A. (Mexico) | Senior management | 2017 variable remuneration | |||
Remuneration of key personnel | |||
Maximum number of shares to be delivered | 225,564 | ||
Minimum | Senior management | |||
Remuneration of key personnel | |||
Discretionary pension contribution percentage | 15.00% |
Remuneration and other benef152
Remuneration and other benefits paid to the Bank's directors and senior managers - Share-based Variable Remuneration - Post-employment - former directors and executive vice presidents (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Remuneration of key personnel | ||||
Amounts paid for post-employment benefits and settlements | € 260,000 | € 20,000 | ||
Period provision for pension and similar obligations | 88,000 | 81,000 | € 96,000 | |
Provisions | 14,489,000 | 14,459,000 | € 14,494,000 | € 15,376,000 |
Former directors of the bank | ||||
Remuneration of key personnel | ||||
Amounts paid for post-employment benefits and settlements | 26,200 | 7,300 | ||
Period provision for pension and similar obligations | 500 | 300 | ||
Former directors of the bank | Provision for post-employment defined benefit obligations | ||||
Remuneration of key personnel | ||||
Provisions | 81,800 | 96,800 | ||
Former executive vice presidents | ||||
Remuneration of key personnel | ||||
Amounts paid for post-employment benefits and settlements | 17,700 | 134,700 | ||
Period provision for pension and similar obligations | 5,600 | 500 | ||
Former executive vice presidents | Provision for post-employment defined benefit obligations | ||||
Remuneration of key personnel | ||||
Provisions | 175,800 | 171,000 | ||
Former Members of Bank | ||||
Remuneration of key personnel | ||||
Contribution to insurance policies | 500 | 660 | ||
Former Managing Directors | ||||
Remuneration of key personnel | ||||
Contribution to insurance policies | € 5,500 | € 6,600 |
Remuneration and other benef153
Remuneration and other benefits paid to the Bank's directors and senior managers - Pre-retirement and retirement (Details) | 12 Months Ended |
Dec. 31, 2017period | |
Remuneration of key personnel | |
Period for Malus and Clawback | 5 years |
Mrs. Ana Botin-Sanz de Sautuola y O'Shea | Directors | |
Remuneration of key personnel | |
Annual contribution, percentage of average variable remuneration | 30.00% |
Pre-retirement age | 60 years |
Number of months required to remain available under terms of employment contract | 4 months |
Mrs. Ana Botin-Sanz de Sautuola y O'Shea | Directors | Maximum | |
Remuneration of key personnel | |
Number of annual periods used as basis for variable remuneration | 3 |
Percentage reduction in emolument for pre-retirement | 16.00% |
Remuneration and other benef154
Remuneration and other benefits paid to the Bank's directors and senior managers - Conflicts of interest and other (Details) | 12 Months Ended |
Dec. 31, 2017individualVoteshares | |
Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of key personnel with conflicts of interest | individual | 0 |
Other directors | |
Conflict of interest and other information | |
Number of abstentions | Vote | 86 |
Number of abstentions, appointments | Vote | 27 |
Number of abstentions, remuneration or extension of loans | Vote | 25 |
Number of abstentions, financing transactions | Vote | 22 |
Number of abstentions, status verification | Vote | 12 |
Mrs. Ana Botin-Sanz de Sautuola y O'Shea | Bankinter, S.A. | Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of shares | 5,179,932 |
Mr. Bruce Carnegie-Brown | Moneysupermarket.com Group plc | Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of shares | 0 |
Mr. Bruce Carnegie-Brown | Lloyd's Of London Ltd | Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of shares | 0 |
Mr. Rodrigo Echenique Gordillo | Mitsubishi UFJ Financial Group | Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of shares | 17,500 |
Mr. Guillermo de la Dehesa Romero | The Goldman Sachs Group, Inc. | Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of shares | 19,546 |
Francisco Javier Botin Sanz De Sautuola Y O'Shea | Bankinter, S.A. | Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of shares | 6,929,853 |
Francisco Javier Botin Sanz De Sautuola Y O'Shea | JB Capital Markets Sociedad de Valores, S.A. | Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of shares | 2,077,198 |
Mrs. Esther Gimenez-Salinas i Colomer | Gawa Capital Partners, S.L. | Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of shares | 0 |
Mr. Ramiro Mato Garca Ansorena | BNP Paribas | Members of the board of directors and persons related to them | |
Conflict of interest and other information | |
Number of shares | 13,806 |
Loans and advances to centra155
Loans and advances to central banks and credit institutions (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial assets [line items] | |||
Financial assets held for trading | € 125,458 | € 148,187 | € 146,346 |
Financial assets designated at fair value through profit or loss | 34,782 | 31,609 | 45,043 |
Loans and receivables | 903,013 | 840,004 | 836,156 |
Loans and advances | |||
Disclosure of financial assets [line items] | |||
Financial assets held for trading | 10,511 | 12,725 | 7,433 |
Financial assets designated at fair value through profit or loss | 30,364 | 27,665 | 40,696 |
Loans and receivables | 885,470 | 826,767 | 825,249 |
Loans and advances - Central banks and credit institutions | |||
Disclosure of financial assets [line items] | |||
Total financial assets | 77,430 | 76,687 | 82,530 |
Loans and advances - Central banks and credit institutions | Euro | |||
Disclosure of financial assets [line items] | |||
Total financial assets | 23,286 | 24,278 | 42,666 |
Loans and advances - Central banks and credit institutions | Pound sterling | |||
Disclosure of financial assets [line items] | |||
Total financial assets | 5,582 | 4,337 | 3,684 |
Loans and advances - Central banks and credit institutions | U.S. dollar | |||
Disclosure of financial assets [line items] | |||
Total financial assets | 15,325 | 11,996 | 14,395 |
Loans and advances - Central banks and credit institutions | Brazilian real | |||
Disclosure of financial assets [line items] | |||
Total financial assets | 28,140 | 32,013 | 20,341 |
Loans and advances - Central banks and credit institutions | Other currencies | |||
Disclosure of financial assets [line items] | |||
Total financial assets | 5,097 | 4,063 | 1,444 |
Loans and advances - Central banks | |||
Disclosure of financial assets [line items] | |||
Loans and receivables | 26,278 | 27,973 | 17,337 |
Time deposits | 17,359 | 14,445 | 9,958 |
Reverse repurchase agreements | 8,919 | 13,528 | 7,379 |
Total financial assets | 26,278 | 27,973 | 17,337 |
Loans and advances - Credit institutions | |||
Disclosure of financial assets [line items] | |||
Financial assets held for trading | 1,696 | 3,221 | 1,352 |
Financial assets designated at fair value through profit or loss | 9,889 | 10,069 | 26,403 |
Loans and receivables | 39,567 | 35,424 | 37,438 |
Time deposits | 8,169 | 6,577 | 7,875 |
Reverse repurchase agreements | 21,765 | 20,867 | 37,744 |
Non- loans advances | 21,232 | 21,281 | 19,580 |
Impaired assets | 4 | 4 | 13 |
Valuation adjustment for impairment | (18) | (15) | (19) |
Total financial assets | 51,152 | 48,714 | 65,193 |
Loans and advances - Credit institutions | Country risk | |||
Disclosure of financial assets [line items] | |||
Valuation adjustment for impairment | € (10) | € (12) | € (12) |
Debt Instruments - Summary (Det
Debt Instruments - Summary (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instruments | |||
Financial assets held for trading | € 125,458 | € 148,187 | € 146,346 |
Financial assets designated at fair value through profit or loss | 34,782 | 31,609 | 45,043 |
Financial assets available-for-sale | 133,271 | 116,774 | 122,036 |
Loans and receivables | 903,013 | 840,004 | 836,156 |
Held-to-maturity investments | 13,491 | 14,468 | 4,355 |
Debt instruments | |||
Debt Instruments | |||
Financial assets held for trading | 36,351 | 48,922 | 43,964 |
Financial assets designated at fair value through profit or loss | 3,485 | 3,398 | 3,717 |
Financial assets available-for-sale | 128,481 | 111,287 | 117,187 |
Loans and receivables | 17,543 | 13,237 | 10,907 |
Held-to-maturity investments | 13,491 | 14,468 | 4,355 |
Total financial assets | 199,351 | 191,312 | 180,130 |
Gross carrying amount | Debt instruments | |||
Debt Instruments | |||
Total financial assets | 200,081 | 191,810 | 180,422 |
Gross carrying amount | Debt instruments | Impaired financial assets | |||
Debt Instruments | |||
Total financial assets | 1,017 | 773 | 218 |
Gross carrying amount | Debt instruments | Euro | |||
Debt Instruments | |||
Total financial assets | 93,250 | 73,791 | 81,196 |
Gross carrying amount | Debt instruments | Pound sterling | |||
Debt Instruments | |||
Total financial assets | 16,203 | 16,106 | 10,551 |
Gross carrying amount | Debt instruments | U.S. dollar | |||
Debt Instruments | |||
Total financial assets | 25,191 | 31,401 | 27,011 |
Gross carrying amount | Debt instruments | Other currencies | |||
Debt Instruments | |||
Total financial assets | 65,437 | 70,512 | 61,663 |
Gross carrying amount | Spanish government debt securities | |||
Debt Instruments | |||
Total financial assets | 59,186 | 45,696 | 45,787 |
Gross carrying amount | Foreign government debt securities | |||
Debt Instruments | |||
Total financial assets | 99,424 | 103,070 | 88,346 |
Gross carrying amount | Debt securities issued by financial institutions | |||
Debt Instruments | |||
Total financial assets | 12,155 | 16,874 | 18,843 |
Gross carrying amount | Other fixed income debt securities | |||
Debt Instruments | |||
Total financial assets | 28,299 | 25,397 | 27,227 |
Impairment losses | Debt instruments | |||
Debt Instruments | |||
Total financial assets | € (730) | (498) | € (291) |
Santander UK plc | UK government debt securities | |||
Debt Instruments | |||
Held-to-maturity investments | € 7,765 |
Debt Instruments - Origin of Is
Debt Instruments - Origin of Issuer (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt instruments | |||
Debt Instruments | |||
Financial assets | € 199,351 | € 191,312 | € 180,130 |
Financial assets (as a percent) | 100.00% | 100.00% | 100.00% |
Private fixed income | |||
Debt Instruments | |||
Financial assets | € 40,741 | € 42,546 | € 45,997 |
Public fixed income | |||
Debt Instruments | |||
Financial assets | 158,610 | 148,766 | 134,133 |
Spain | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 64,458 | € 51,849 | € 53,174 |
Financial assets (as a percent) | 32.33% | 27.10% | 29.52% |
Spain | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 5,272 | € 6,153 | € 7,387 |
Spain | Public fixed income | |||
Debt Instruments | |||
Financial assets | 59,186 | 45,696 | 45,787 |
United Kingdom | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 15,056 | € 15,441 | € 10,202 |
Financial assets (as a percent) | 7.55% | 8.07% | 5.66% |
United Kingdom | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 4,339 | € 3,531 | € 3,746 |
United Kingdom | Public fixed income | |||
Debt Instruments | |||
Financial assets | 10,717 | 11,910 | 6,456 |
Portugal | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 11,864 | € 11,757 | € 13,864 |
Financial assets (as a percent) | 5.95% | 6.15% | 7.70% |
Portugal | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 3,972 | € 4,068 | € 3,889 |
Portugal | Public fixed income | |||
Debt Instruments | |||
Financial assets | 7,892 | 7,689 | 9,975 |
Italy | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 8,458 | € 4,582 | € 5,735 |
Financial assets (as a percent) | 4.24% | 2.40% | 3.18% |
Italy | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 1,287 | € 1,035 | € 1,312 |
Italy | Public fixed income | |||
Debt Instruments | |||
Financial assets | 7,171 | 3,547 | 4,423 |
Ireland | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 3,149 | € 518 | € 342 |
Financial assets (as a percent) | 1.58% | 0.27% | 0.19% |
Ireland | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 3,147 | € 518 | € 342 |
Ireland | Public fixed income | |||
Debt Instruments | |||
Financial assets | 2 | ||
Poland | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 7,391 | € 6,972 | € 6,272 |
Financial assets (as a percent) | 3.71% | 3.64% | 3.48% |
Poland | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 772 | € 707 | € 802 |
Poland | Public fixed income | |||
Debt Instruments | |||
Financial assets | 6,619 | 6,265 | 5,470 |
Other European Countries | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 8,928 | € 8,939 | € 11,045 |
Financial assets (as a percent) | 4.48% | 4.67% | 6.13% |
Other European Countries | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 7,195 | € 7,203 | € 7,912 |
Other European Countries | Public fixed income | |||
Debt Instruments | |||
Financial assets | 1,733 | 1,736 | 3,133 |
United States | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 19,656 | € 23,617 | € 21,672 |
Financial assets (as a percent) | 9.86% | 12.34% | 12.03% |
United States | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 7,986 | € 10,559 | € 11,919 |
United States | Public fixed income | |||
Debt Instruments | |||
Financial assets | 11,670 | 13,058 | 9,753 |
Brazil | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 39,669 | € 45,134 | € 30,993 |
Financial assets (as a percent) | 19.90% | 23.59% | 17.21% |
Brazil | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 4,729 | € 5,364 | € 5,405 |
Brazil | Public fixed income | |||
Debt Instruments | |||
Financial assets | 34,940 | 39,770 | 25,588 |
Mexico | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 9,939 | € 11,215 | € 16,019 |
Financial assets (as a percent) | 4.99% | 5.86% | 8.89% |
Mexico | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 461 | € 587 | € 723 |
Mexico | Public fixed income | |||
Debt Instruments | |||
Financial assets | 9,478 | 10,628 | 15,296 |
Chile | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 4,133 | € 4,958 | € 3,059 |
Financial assets (as a percent) | 2.07% | 2.59% | 1.70% |
Chile | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 62 | € 1,315 | € 1,027 |
Chile | Public fixed income | |||
Debt Instruments | |||
Financial assets | 4,071 | 3,643 | 2,032 |
Other American Countries | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 1,668 | € 2,044 | € 2,373 |
Financial assets (as a percent) | 0.84% | 1.07% | 1.32% |
Other American Countries | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 755 | € 782 | € 762 |
Other American Countries | Public fixed income | |||
Debt Instruments | |||
Financial assets | 913 | 1,262 | 1,611 |
Rest of World | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 4,982 | € 4,286 | € 5,380 |
Financial assets (as a percent) | 2.50% | 2.24% | 2.99% |
Rest of World | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 764 | € 724 | € 771 |
Rest of World | Public fixed income | |||
Debt Instruments | |||
Financial assets | € 4,218 | € 3,562 | € 4,609 |
Debt Instruments - Issuer Ratin
Debt Instruments - Issuer Rating (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt instruments | |||
Debt Instruments | |||
Financial assets | € 199,351 | € 191,312 | € 180,130 |
Financial assets (as a percent) | 100.00% | 100.00% | 100.00% |
Private fixed income | |||
Debt Instruments | |||
Financial assets | € 40,741 | € 42,546 | € 45,997 |
Public fixed income | |||
Debt Instruments | |||
Financial assets | 158,610 | 148,766 | 134,133 |
Standard & Poors AAA Rating | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 17,163 | € 19,924 | € 26,139 |
Financial assets (as a percent) | 8.61% | 10.41% | 14.51% |
Standard & Poors AAA Rating | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 16,239 | € 18,916 | € 16,975 |
Standard & Poors AAA Rating | Public fixed income | |||
Debt Instruments | |||
Financial assets | 924 | 1,008 | 9,164 |
Standard & Poors AA Rating | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 26,236 | € 31,271 | € 16,620 |
Financial assets (as a percent) | 13.16% | 16.35% | 9.23% |
Standard & Poors AA Rating | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 2,714 | € 1,632 | € 3,452 |
Standard & Poors AA Rating | Public fixed income | |||
Debt Instruments | |||
Financial assets | 23,522 | 29,639 | 13,168 |
Standard & Poors, A Rating | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 12,410 | € 6,213 | € 16,499 |
Financial assets (as a percent) | 6.23% | 3.25% | 9.16% |
Standard & Poors, A Rating | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 4,373 | € 2,928 | € 7,379 |
Standard & Poors, A Rating | Public fixed income | |||
Debt Instruments | |||
Financial assets | 8,037 | 3,285 | 9,120 |
Standard & Poors BBB Rating | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 97,461 | € 74,534 | € 73,718 |
Financial assets (as a percent) | 48.89% | 38.96% | 40.92% |
Standard & Poors BBB Rating | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 6,449 | € 7,579 | € 8,011 |
Standard & Poors BBB Rating | Public fixed income | |||
Debt Instruments | |||
Financial assets | 91,012 | 66,955 | 65,707 |
Standard & Poors below BBB Rating | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 37,502 | € 52,623 | € 38,148 |
Financial assets (as a percent) | 18.81% | 27.51% | 21.18% |
Standard & Poors below BBB Rating | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 2,393 | € 4,751 | € 2,575 |
Standard & Poors below BBB Rating | Public fixed income | |||
Debt Instruments | |||
Financial assets | 35,109 | 47,872 | 35,573 |
Unrated | Debt instruments | |||
Debt Instruments | |||
Financial assets | € 8,579 | € 6,747 | € 9,006 |
Financial assets (as a percent) | 4.30% | 3.53% | 5.00% |
Unrated | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 8,573 | € 6,740 | € 7,605 |
Unrated | Public fixed income | |||
Debt Instruments | |||
Financial assets | € 6 | € 7 | € 1,401 |
Debt Instruments - Private Fixe
Debt Instruments - Private Fixed-Income Securities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt instruments | |||
Debt Instruments | |||
Financial assets | € 199,351 | € 191,312 | € 180,130 |
Private fixed income | |||
Debt Instruments | |||
Financial assets | 40,741 | 42,546 | 45,997 |
Private fixed income | Floating interest rate | |||
Debt Instruments | |||
Financial assets | 13,756 | 11,818 | 16,633 |
Private fixed income | Fixed interest rate | |||
Debt Instruments | |||
Financial assets | 18,535 | 26,341 | 24,181 |
Securitized mortgage bonds | Private fixed income | |||
Debt Instruments | |||
Financial assets | 2,458 | 1,584 | 2,110 |
Other asset back bonds | Private fixed income | |||
Debt Instruments | |||
Financial assets | € 5,992 | € 2,803 | € 3,073 |
Debt Instruments - Impairment L
Debt Instruments - Impairment Losses (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instruments | |||
Net impairment losses for the year | € 9,259 | € 9,626 | € 10,652 |
Financial assets available for sale | |||
Debt Instruments | |||
Net impairment losses for the year | 10 | (11) | 230 |
Loans and receivables category | |||
Debt Instruments | |||
Net impairment losses for the year | 9,241 | 9,557 | 10,194 |
Debt instruments | |||
Debt Instruments | |||
Balance at beginning of year | 498 | 291 | 144 |
Net impairment losses for the year | 348 | 380 | 211 |
Impairment losses charged to income | 386 | 423 | 223 |
Impairment losses reversed with a credit to income | (38) | (43) | (12) |
Exchange differences and other changes | (116) | (172) | (64) |
Balance at end of year | 730 | 498 | 291 |
Debt instruments | European Union | |||
Debt Instruments | |||
Balance at beginning of year | 40 | 34 | |
Balance at end of year | 30 | 40 | 34 |
Debt instruments | Latin America | |||
Debt Instruments | |||
Balance at beginning of year | 458 | 257 | |
Balance at end of year | 700 | 458 | 257 |
Debt instruments | Financial assets available for sale | |||
Debt Instruments | |||
Net impairment losses for the year | (25) | 119 | |
Debt instruments | Loans and receivables category | |||
Debt Instruments | |||
Net impairment losses for the year | 348 | 405 | 92 |
Impairment losses reversed with a credit to income | € (1,620) | € (1,582) | € (1,375) |
Debt Instruments - Other Info (
Debt Instruments - Other Info (Details) - Debt instruments € in Millions | Dec. 31, 2017EUR (€) |
Debt Instruments | |
Government debt securities | € 81,801 |
Other debt instruments | 7,981 |
Financial assets pledged as security for certain commitments | 89,782 |
1 day | |
Debt Instruments | |
Government debt securities | 3,076 |
Other debt instruments | 810 |
Financial assets pledged as security for certain commitments | 3,886 |
1 week | |
Debt Instruments | |
Government debt securities | 42,213 |
Other debt instruments | 853 |
Financial assets pledged as security for certain commitments | 43,066 |
1 month | |
Debt Instruments | |
Government debt securities | 18,624 |
Other debt instruments | 529 |
Financial assets pledged as security for certain commitments | 19,153 |
3 months | |
Debt Instruments | |
Government debt securities | 9,614 |
Other debt instruments | 689 |
Financial assets pledged as security for certain commitments | 10,303 |
6 months | |
Debt Instruments | |
Government debt securities | 5,895 |
Other debt instruments | 257 |
Financial assets pledged as security for certain commitments | 6,152 |
1 year | |
Debt Instruments | |
Government debt securities | 1,222 |
Other debt instruments | 804 |
Financial assets pledged as security for certain commitments | 2,026 |
More than 12 months | |
Debt Instruments | |
Government debt securities | 1,157 |
Other debt instruments | 4,039 |
Financial assets pledged as security for certain commitments | € 5,196 |
Equity instruments - Detail by
Equity instruments - Detail by classification and type - (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial instruments | ||||
Financial assets held for trading | € 125,458 | € 148,187 | € 146,346 | |
Financial assets designated at fair value through profit or loss | 34,782 | 31,609 | 45,043 | |
Financial assets available-for-sale | 133,271 | 116,774 | 122,036 | |
Equity instruments | ||||
Financial instruments | ||||
Financial assets held for trading | 21,353 | 14,497 | 18,225 | |
Financial assets designated at fair value through profit or loss | 933 | 546 | 630 | |
Financial assets available-for-sale | 4,790 | 5,487 | 4,849 | € 5,001 |
Total financial assets | 27,076 | 20,530 | 23,704 | |
Shares of Spanish companies | ||||
Financial instruments | ||||
Total financial assets | 4,199 | 3,098 | 2,479 | |
Shares of foreign companies | ||||
Financial instruments | ||||
Total financial assets | 20,448 | 15,342 | 19,077 | |
Investment fund units and shares | ||||
Financial instruments | ||||
Total financial assets | € 2,429 | € 2,090 | € 2,148 |
Equity instruments - Changes -
Equity instruments - Changes - (Details) - EUR (€) € in Millions | Jun. 21, 2016 | Jun. 30, 2015 | May 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial instruments | ||||||
Balance at beginning of year | € 116,774 | € 122,036 | ||||
Valuation adjustment and other items | 1,137 | 2,192 | € (555) | |||
Balance at end of year | 133,271 | 116,774 | 122,036 | |||
Equity instruments | ||||||
Financial instruments | ||||||
Balance at beginning of year | 5,487 | 4,849 | 5,001 | |||
Net additions (disposals) | (331) | (294) | (392) | |||
Valuation adjustment and other items | (366) | 932 | 240 | |||
Balance at end of year | 4,790 | 5,487 | 4,849 | |||
Equity instruments | Bank of Shanghai Co., Ltd | ||||||
Financial instruments | ||||||
Net additions (disposals) | € 109 | € 109 | ||||
Interest acquired (as a percent) | 8.00% | |||||
Consideration paid | € 396 | |||||
Valuation adjustment | € 340 | 675 | ||||
Equity instruments | Visa Europe, Ltd. | ||||||
Financial instruments | ||||||
Net additions (disposals) | € (263) | |||||
Net gain on sale of asset classified as available-for-sale | € 227 |
Derivatives (assets and liab164
Derivatives (assets and liabilities) and Short positions - Derivatives (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial instruments | |||
Financial assets at fair value through profit or loss, classified as held for trading | € 125,458 | € 148,187 | € 146,346 |
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 107,624 | 108,765 | 105,218 |
Derivatives | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 57,892 | 74,369 | 76,414 |
Derivatives | Interest rate risk | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 37,582 | 48,124 | 49,095 |
Derivatives | Currency risk | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 18,014 | 23,500 | 23,444 |
Derivatives | Price risk | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 2,040 | 2,402 | 3,343 |
Derivatives | Other risks | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss that meet definition of held for trading | 256 | 343 | 532 |
Derivatives | |||
Financial instruments | |||
Financial assets at fair value through profit or loss, classified as held for trading | 57,243 | 72,043 | 76,724 |
Derivatives | Interest rate risk | |||
Financial instruments | |||
Financial assets at fair value through profit or loss, classified as held for trading | 38,030 | 47,884 | 51,576 |
Derivatives | Currency risk | |||
Financial instruments | |||
Financial assets at fair value through profit or loss, classified as held for trading | 16,320 | 21,087 | 21,924 |
Derivatives | Price risk | |||
Financial instruments | |||
Financial assets at fair value through profit or loss, classified as held for trading | 2,167 | 2,599 | 2,598 |
Derivatives | Other risks | |||
Financial instruments | |||
Financial assets at fair value through profit or loss, classified as held for trading | € 726 | € 473 | € 626 |
Derivatives (assets and liab165
Derivatives (assets and liabilities) and Short Positions (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial instruments | |||
Financial liabilities held for trading | € 107,624 | € 108,765 | € 105,218 |
Short positions | |||
Financial instruments | |||
Financial liabilities held for trading | 20,979 | 23,005 | 17,362 |
Debt instruments | Short positions | |||
Financial instruments | |||
Borrowed securities | 2,447 | 2,250 | 3,098 |
Short sales | 16,861 | 19,613 | 13,274 |
Debt instruments | Short positions | Santander UK plc | |||
Financial instruments | |||
Borrowed securities | 1,557 | 1,319 | 1,857 |
Debt instruments | Short positions | Banco Santander (Mexico), S.A., Institucion De Banca Multiple, Grupo Financiero Santander Mexico | |||
Financial instruments | |||
Short sales | 46 | 1,872 | 1,290 |
Debt instruments | Short positions | Banco Santander (Brasil) S.A | |||
Financial instruments | |||
Short sales | 8,188 | 9,197 | 4,619 |
Equity instruments | Short positions | |||
Financial instruments | |||
Borrowed securities | 1,671 | 1,142 | 990 |
Equity instruments | Short positions | Santander UK plc | |||
Financial instruments | |||
Borrowed securities | 1,500 | 991 | 905 |
Banco Santander S.A. | Debt instruments | Short positions | |||
Financial instruments | |||
Short sales | € 8,621 | € 7,472 | € 6,953 |
Loans and advances to custom166
Loans and advances to customers - Summary (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans And Advances To Customers Line Items | ||||
Financial assets held for trading | € 125,458 | € 148,187 | € 146,346 | |
Financial assets designated at fair value through profit or loss | 34,782 | 31,609 | 45,043 | |
Loans and receivables | 903,013 | 840,004 | 836,156 | |
Loans and advances to customers | 848,915 | 790,470 | 790,848 | |
Loans and advances | ||||
Loans And Advances To Customers Line Items | ||||
Financial assets held for trading | 10,511 | 12,725 | 7,433 | |
Financial assets designated at fair value through profit or loss | 30,364 | 27,665 | 40,696 | |
Loans and receivables | 885,470 | 826,767 | 825,249 | |
Loans and advances - Customers | ||||
Loans And Advances To Customers Line Items | ||||
Financial assets held for trading | 8,815 | 9,504 | 6,081 | |
Financial assets designated at fair value through profit or loss | 20,475 | 17,596 | 14,293 | |
Loans and receivables | 819,625 | 763,370 | 770,474 | |
Impairment losses | (23,934) | (24,393) | (26,517) | € (27,217) |
Loans and advances to customers | 848,915 | 790,470 | 790,848 | |
Loans and advances - Customers | Gross carrying amount | ||||
Loans And Advances To Customers Line Items | ||||
Loans and receivables | 843,559 | 787,763 | 796,991 | |
Loans and advances to customers | 872,849 | 814,863 | 817,365 | |
Loans and advances - Customers | Impairment losses | ||||
Loans And Advances To Customers Line Items | ||||
Loans and receivables | 23,934 | 24,393 | 26,517 | |
Loans and advances - Customers | Country risk | Impairment losses | ||||
Loans And Advances To Customers Line Items | ||||
Loans and receivables | € 18 | € 15 | € 12 |
Loans and advances to custom167
Loans and advances to customers - Breakdown (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | € 848,915 | € 790,470 | € 790,848 |
Without considering the Public Administration | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | € 837,802 | ||
Without considering the Public Administration | Standard & Poors AAA Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 5.40% | ||
Without considering the Public Administration | Standard & Poors AA Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 14.20% | ||
Without considering the Public Administration | Standard & Poors, A Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 19.70% | ||
Without considering the Public Administration | Standard & Poors BBB Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 26.70% | ||
Without considering the Public Administration | Standard & Poors below BBB Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 34.10% | ||
Rest of World | Public sector | Standard & Poors AAA Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 9.50% | ||
Rest of World | Public sector | Standard & Poors AA Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 50.00% | ||
Rest of World | Public sector | Standard & Poors, A Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 0.90% | ||
Rest of World | Public sector | Standard & Poors BBB Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 36.00% | ||
Rest of World | Public sector | Standard & Poors below BBB Rating | |||
Loans And Advances To Customers Line Items | |||
Credit exposure percentage | 3.70% | ||
Financial instruments credit-impaired | Without considering the Public Administration | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | € 801,640 | ||
Gross carrying amount | Fixed interest rate | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 447,788 | 417,448 | 407,026 |
Gross carrying amount | Floating interest rate | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 425,061 | 397,415 | 410,339 |
Gross carrying amount | Spain | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 227,446 | 161,372 | 167,856 |
Gross carrying amount | Spain | Public sector | Standard & Poors BBB Rating | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 16,470 | 14,127 | 13,993 |
Gross carrying amount | European Union (excluding Spain) | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 390,536 | 379,666 | 401,315 |
Gross carrying amount | United States and Puerto Rico | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 75,777 | 87,318 | 88,737 |
Gross carrying amount | Other OECD countries | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 74,463 | 74,157 | 69,519 |
Gross carrying amount | Latin America (non-OECD) | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 88,302 | 93,207 | 77,519 |
Gross carrying amount | Rest of World | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 16,325 | 19,143 | 12,419 |
Gross carrying amount | Rest of World | Public sector | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 18,577 | 16,483 | 7,772 |
Gross carrying amount | Loans and advances - Customers | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 872,849 | 814,863 | 817,365 |
Gross carrying amount | Commercial credit | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 29,287 | 23,894 | 18,486 |
Gross carrying amount | Secured loans | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 473,936 | 454,677 | 481,221 |
Gross carrying amount | Reverse repurchase agreements | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 18,864 | 16,609 | 12,022 |
Gross carrying amount | Other term loans | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 257,441 | 232,288 | 217,829 |
Gross carrying amount | Finance lease loans | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 28,511 | 25,357 | 22,900 |
Gross carrying amount | Receivable on demand | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 6,721 | 8,102 | 8,504 |
Gross carrying amount | Credit cards receivables | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | 21,809 | 21,363 | 20,270 |
Gross carrying amount | Financial instruments credit-impaired | |||
Loans And Advances To Customers Line Items | |||
Loans and advances to customers | € 36,280 | € 32,573 | € 36,133 |
Loans and advances to custom168
Loans and advances to customers - Loans to customers, net of impairment losses (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | € 830,031 | ||
Advances to customers | 18,884 | ||
Loans and advances to customers | 848,915 | € 790,470 | € 790,848 |
Refinanced and restructured transactions | 36,164 | ||
Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 110,908 | ||
Refinanced and restructured transactions | 3,495 | ||
More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 122,539 | ||
Refinanced and restructured transactions | 3,377 | ||
More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 117,789 | ||
Refinanced and restructured transactions | 3,704 | ||
More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 107,741 | ||
Refinanced and restructured transactions | 4,431 | ||
More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 57,987 | ||
Refinanced and restructured transactions | 12,663 | ||
Public sector | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 33,008 | ||
Public sector | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 1,245 | ||
Public sector | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 2,254 | ||
Public sector | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 4,719 | ||
Public sector | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 3,052 | ||
Public sector | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 127 | ||
Other financial institutions (Financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 35,036 | ||
Other financial institutions (Financial business activity) | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 862 | ||
Other financial institutions (Financial business activity) | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 887 | ||
Other financial institutions (Financial business activity) | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 331 | ||
Other financial institutions (Financial business activity) | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 21,347 | ||
Other financial institutions (Financial business activity) | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 679 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 288,912 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 25,599 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 18,426 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 14,183 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 38,049 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 24,695 | ||
Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 473,075 | ||
Households - other | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 83,202 | ||
Households - other | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 100,972 | ||
Households - other | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 98,556 | ||
Households - other | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 45,293 | ||
Households - other | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 32,486 | ||
With property collateral | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 394,230 | ||
Refinanced and restructured transactions | 16,694 | ||
With property collateral | Public sector | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 8,565 | ||
With property collateral | Other financial institutions (Financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 1,166 | ||
With property collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 65,864 | ||
With property collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 318,635 | ||
Without collateral | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 313,067 | ||
Refinanced and restructured transactions | 8,494 | ||
Without collateral | Public sector | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 21,611 | ||
Without collateral | Other financial institutions (Financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 10,930 | ||
Without collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 167,960 | ||
Without collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 112,566 | ||
With other collateral | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 122,734 | ||
Refinanced and restructured transactions | 10,976 | ||
With other collateral | Public sector | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 2,832 | ||
With other collateral | Other financial institutions (Financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 22,940 | ||
With other collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 55,088 | ||
With other collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 41,874 | ||
Construction and property development | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 26,996 | ||
Construction and property development | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 9,032 | ||
Construction and property development | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 5,745 | ||
Construction and property development | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 4,224 | ||
Construction and property development | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 2,906 | ||
Construction and property development | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 2,447 | ||
Construction and property development | With property collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 22,849 | ||
Construction and property development | Without collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 2,642 | ||
Construction and property development | With other collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 1,505 | ||
Civil Engineering Construction Loans Member | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 3,422 | ||
Civil Engineering Construction Loans Member | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 128 | ||
Civil Engineering Construction Loans Member | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 294 | ||
Civil Engineering Construction Loans Member | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 158 | ||
Civil Engineering Construction Loans Member | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 281 | ||
Civil Engineering Construction Loans Member | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 461 | ||
Civil Engineering Construction Loans Member | With property collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 441 | ||
Civil Engineering Construction Loans Member | Without collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 2,100 | ||
Civil Engineering Construction Loans Member | With other collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 881 | ||
Large companies | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 137,775 | ||
Large companies | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 5,275 | ||
Large companies | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 3,823 | ||
Large companies | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 3,194 | ||
Large companies | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 15,592 | ||
Large companies | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 11,221 | ||
Large companies | With property collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 11,729 | ||
Large companies | Without collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 98,670 | ||
Large companies | With other collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 27,376 | ||
SMEs and individual entrepreneurs | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 120,719 | ||
SMEs and individual entrepreneurs | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 11,164 | ||
SMEs and individual entrepreneurs | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 8,564 | ||
SMEs and individual entrepreneurs | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 6,607 | ||
SMEs and individual entrepreneurs | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 19,270 | ||
SMEs and individual entrepreneurs | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 10,566 | ||
SMEs and individual entrepreneurs | With property collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 30,845 | ||
SMEs and individual entrepreneurs | Without collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 64,548 | ||
SMEs and individual entrepreneurs | With other collateral | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 25,326 | ||
Residential loans | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 308,985 | ||
Residential loans | Households - other | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 76,300 | ||
Residential loans | Households - other | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 94,654 | ||
Residential loans | Households - other | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 93,403 | ||
Residential loans | Households - other | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 34,788 | ||
Residential loans | Households - other | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 8,078 | ||
Residential loans | With property collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 306,701 | ||
Residential loans | Without collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 1,762 | ||
Residential loans | With other collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 522 | ||
Consumer loans | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 144,846 | ||
Consumer loans | Households - other | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 3,590 | ||
Consumer loans | Households - other | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 4,036 | ||
Consumer loans | Households - other | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 3,150 | ||
Consumer loans | Households - other | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 5,207 | ||
Consumer loans | Households - other | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 22,644 | ||
Consumer loans | With property collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 2,592 | ||
Consumer loans | Without collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 106,219 | ||
Consumer loans | With other collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 36,035 | ||
Other purposes | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 19,244 | ||
Other purposes | Households - other | Less than or equal to 40% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 3,312 | ||
Other purposes | Households - other | More than 40% and less than or equal to 60% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 2,282 | ||
Other purposes | Households - other | More than 60% and less than or equal to 80% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 2,003 | ||
Other purposes | Households - other | More than 80% and less than or equal to 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 5,298 | ||
Other purposes | Households - other | More than 100% | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 1,764 | ||
Other purposes | With property collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 9,342 | ||
Other purposes | Without collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | 4,585 | ||
Other purposes | With other collateral | Households - other | |||
Loans And Advances To Customers Line Items | |||
Loans to customers, net of impairment losses | € 5,317 |
Loans and advances to custom169
Loans and advances to customers - Impairment losses (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Net impairment losses for the year | € 9,259 | € 9,626 | € 10,652 |
Debt instruments | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Balance at beginning of year | 498 | 291 | 144 |
Net impairment losses for the year | 348 | 380 | 211 |
Impairment losses charged to income | 386 | 423 | 223 |
Impairment losses reversed with a credit to income | (38) | (43) | (12) |
Exchange differences and other changes | (116) | (172) | (64) |
Balance at end of year | 730 | 498 | 291 |
Loans and advances - Customers | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Balance at beginning of year | 24,393 | 26,517 | 27,217 |
Net impairment losses for the year | 10,513 | 10,734 | 11,477 |
Impairment losses charged to income | 19,006 | 17,081 | 16,461 |
Impairment losses reversed with a credit to income | (8,493) | (6,347) | (4,984) |
Change of perimeter | (136) | ||
Write-off of impaired balances against recorded impairment allowance | (13,522) | (12,758) | (12,361) |
Exchange differences and other changes | 2,550 | 36 | 184 |
Balance at end of year | 23,934 | 24,393 | 26,517 |
Loans and receivables category | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Net impairment losses for the year | 9,241 | 9,557 | 10,194 |
Loans and receivables category | Debt instruments | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Net impairment losses for the year | 348 | 405 | 92 |
Impairment losses reversed with a credit to income | (1,620) | (1,582) | (1,375) |
Impaired financial assets | Loans and advances - Customers | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Balance at beginning of year | 15,331 | 17,421 | |
Balance at end of year | 16,207 | 15,331 | 17,421 |
Individually assessed | Loans and advances - Customers | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Balance at beginning of year | 6,097 | 9,673 | |
Balance at end of year | 5,311 | 6,097 | 9,673 |
Collectively assessed | Loans and advances - Customers | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Balance at beginning of year | 18,296 | 16,844 | |
Balance at end of year | 18,623 | 18,296 | 16,844 |
Other assets | Loans and advances - Customers | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Balance at beginning of year | 9,062 | 9,096 | |
Balance at end of year | 7,727 | 9,062 | 9,096 |
Country risk | Impaired financial assets | Loans and advances - Customers | |||
Disclosure of reconciliation of changes in loss allowance of financial instruments | |||
Balance at beginning of year | 15 | 12 | |
Balance at end of year | € 18 | € 15 | € 12 |
Loans and advances to custom170
Loans and advances to customers - Impaired assets (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Balance at beginning of year | € 790,470 | € 790,848 | |
Balance at end of year | 848,915 | 790,470 | € 790,848 |
Impaired financial assets | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Written-off assets | 43,508 | 40,473 | 36,848 |
Loans and receivables category | Financial instruments credit-impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Net additions | 8,409 | 7,393 | 7,862 |
Written-off assets | (13,522) | (12,758) | (12,361) |
Changes in the scope of consolidation | 9,618 | 661 | 106 |
Exchange differences and other | (798) | 1,144 | 154 |
Gross carrying amount | Financial instruments credit-impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Balance at beginning of year | 32,573 | 36,133 | |
Balance at end of year | 36,280 | 32,573 | 36,133 |
Gross carrying amount | Loans and receivables category | Financial instruments credit-impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Balance at beginning of year | 32,573 | 36,133 | 40,372 |
Balance at end of year | 36,280 | 32,573 | 36,133 |
Gross carrying amount | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Balance at beginning of year | 32,573 | 36,133 | |
Balance at end of year | € 36,280 | € 32,573 | € 36,133 |
Loans and advances to custom171
Loans and advances to customers - By geographical location and age (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | € 848,915 | € 790,470 | € 790,848 | |
Gross carrying amount | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 36,280 | 32,573 | 36,133 | |
Gross carrying amount | Loans and receivables category | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 36,280 | 32,573 | 36,133 | € 40,372 |
Gross carrying amount | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 36,280 | 32,573 | 36,133 | |
Gross carrying amount | With no past due balances or less than 90 days past due | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 11,724 | 11,141 | 11,929 | |
Gross carrying amount | 90 to 180 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 4,977 | 4,664 | 4,640 | |
Gross carrying amount | 180 to 270 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 2,521 | 2,551 | 2,494 | |
Gross carrying amount | 270 days to 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 2,128 | 2,175 | 2,042 | |
Gross carrying amount | More than 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 14,930 | 12,042 | 15,028 | |
Gross carrying amount | Spain | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 227,446 | 161,372 | 167,856 | |
Gross carrying amount | Spain | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 18,200 | 13,347 | 17,019 | |
Gross carrying amount | Spain | With no past due balances or less than 90 days past due | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 6,012 | 4,845 | 6,623 | |
Gross carrying amount | Spain | 90 to 180 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 938 | 508 | 894 | |
Gross carrying amount | Spain | 180 to 270 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 793 | 360 | 622 | |
Gross carrying amount | Spain | 270 days to 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 814 | 625 | 551 | |
Gross carrying amount | Spain | More than 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 9,643 | 7,009 | 8,329 | |
Gross carrying amount | European Union (excluding Spain) | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 390,536 | 379,666 | 401,315 | |
Gross carrying amount | European Union (excluding Spain) | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 8,747 | 9,224 | 9,675 | |
Gross carrying amount | European Union (excluding Spain) | With no past due balances or less than 90 days past due | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 2,023 | 2,648 | 1,854 | |
Gross carrying amount | European Union (excluding Spain) | 90 to 180 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 1,526 | 1,783 | 1,720 | |
Gross carrying amount | European Union (excluding Spain) | 180 to 270 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 811 | 877 | 916 | |
Gross carrying amount | European Union (excluding Spain) | 270 days to 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 558 | 654 | 791 | |
Gross carrying amount | European Union (excluding Spain) | More than 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 3,829 | 3,262 | 4,394 | |
Gross carrying amount | United States and Puerto Rico | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 75,777 | 87,318 | 88,737 | |
Gross carrying amount | United States and Puerto Rico | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 2,146 | 1,979 | 1,784 | |
Gross carrying amount | United States and Puerto Rico | With no past due balances or less than 90 days past due | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 1,221 | 805 | 1,305 | |
Gross carrying amount | United States and Puerto Rico | 90 to 180 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 641 | 833 | 135 | |
Gross carrying amount | United States and Puerto Rico | 180 to 270 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 42 | 38 | 58 | |
Gross carrying amount | United States and Puerto Rico | 270 days to 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 50 | 61 | 29 | |
Gross carrying amount | United States and Puerto Rico | More than 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 192 | 242 | 257 | |
Gross carrying amount | Other OECD countries | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 74,463 | 74,157 | 69,519 | |
Gross carrying amount | Other OECD countries | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 2,758 | 2,859 | 3,278 | |
Gross carrying amount | Other OECD countries | With no past due balances or less than 90 days past due | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 1,523 | 1,601 | 721 | |
Gross carrying amount | Other OECD countries | 90 to 180 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 563 | 481 | 894 | |
Gross carrying amount | Other OECD countries | 180 to 270 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 166 | 145 | 232 | |
Gross carrying amount | Other OECD countries | 270 days to 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 128 | 158 | 194 | |
Gross carrying amount | Other OECD countries | More than 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 378 | 474 | 1,237 | |
Gross carrying amount | Latin America (non-OECD) | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 88,302 | 93,207 | 77,519 | |
Gross carrying amount | Latin America (non-OECD) | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 4,429 | 5,164 | 4,322 | |
Gross carrying amount | Latin America (non-OECD) | With no past due balances or less than 90 days past due | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 945 | 1,242 | 1,418 | |
Gross carrying amount | Latin America (non-OECD) | 90 to 180 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 1,309 | 1,059 | 995 | |
Gross carrying amount | Latin America (non-OECD) | 180 to 270 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 709 | 1,131 | 666 | |
Gross carrying amount | Latin America (non-OECD) | 270 days to 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 578 | 677 | 477 | |
Gross carrying amount | Latin America (non-OECD) | More than 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 888 | 1,055 | 766 | |
Gross carrying amount | Rest of World | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | € 16,325 | € 19,143 | 12,419 | |
Gross carrying amount | Rest of World | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 55 | |||
Gross carrying amount | Rest of World | With no past due balances or less than 90 days past due | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 8 | |||
Gross carrying amount | Rest of World | 90 to 180 days | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 2 | |||
Gross carrying amount | Rest of World | More than 1 year | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | € 45 |
Loans and advances to custom172
Loans and advances to customers - Assets, allowances and collateral (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | € 848,915 | € 790,470 | € 790,848 | |
Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Estimated collateral value | 13,113 | |||
With property collateral | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Estimated collateral value | 11,945 | |||
With other collateral | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Estimated collateral value | 1,168 | |||
Gross carrying amount | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 36,280 | 32,573 | 36,133 | |
Gross carrying amount | Loans and receivables category | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 36,280 | 32,573 | 36,133 | € 40,372 |
Gross carrying amount | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 36,280 | € 32,573 | € 36,133 | |
Gross carrying amount | Without collateral | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 15,127 | |||
Gross carrying amount | With property collateral | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 17,534 | |||
Gross carrying amount | With other collateral | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 3,619 | |||
Impairment losses | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 16,207 | |||
Impairment losses | Without collateral | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 9,303 | |||
Impairment losses | With property collateral | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | 5,128 | |||
Impairment losses | With other collateral | Loans and receivables category | Impaired financial assets | Financial instruments credit-impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Loans and advances to customers | € 1,776 |
Loans and advances to custom173
Loans and advances to customers - Standard loans past due 90 days or less (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Loans and advances to customers | € 848,915 | € 790,470 | € 790,848 |
Less than 1 month | Loans and receivables category | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Loans and advances to customers | 1,381 | ||
1 to 2 months | Loans and receivables category | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Loans and advances to customers | 623 | ||
2 to 3 months | Loans and receivables category | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Loans and advances to customers | 373 | ||
Public sector | Less than 1 month | Loans and receivables category | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Loans and advances to customers | 1 | ||
Public sector | 1 to 2 months | Loans and receivables category | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Loans and advances to customers | € 1 |
Loans and advances to custom174
Loans and advances to customers - Securitization (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of transferred financial assets that are not derecognized in their entirety [line items] | |||
Derecognized securitized loans | € 241 | € 477 | € 685 |
Securitized loans retained on the balance sheet | 91,208 | 100,675 | 107,643 |
Securitizations | 91,449 | 101,152 | 108,328 |
United Kingdom | |||
Disclosure of transferred financial assets that are not derecognized in their entirety [line items] | |||
Securitized loans retained on the balance sheet | 15,694 | 20,969 | 30,833 |
Santander Holding USA, Inc. | |||
Disclosure of transferred financial assets that are not derecognized in their entirety [line items] | |||
Original assets before transfer | 113 | 324 | 506 |
Retained credit risk liabilities of derecognized securitized loans | 1 | 3 | 6 |
Mortgage assets | |||
Disclosure of transferred financial assets that are not derecognized in their entirety [line items] | |||
Derecognized securitized loans | 241 | 477 | 685 |
Securitized loans retained on the balance sheet | 36,844 | 44,311 | 54,003 |
Other securitised assets | |||
Disclosure of transferred financial assets that are not derecognized in their entirety [line items] | |||
Securitized loans retained on the balance sheet | € 54,364 | € 56,364 | € 53,640 |
Hedging derivatives (Details)
Hedging derivatives (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about hedging instruments [line items] | |||
HEDGING DERIVATIVES, ASSETS | € 8,537 | € 10,377 | € 7,727 |
HEDGING DERIVATIVES, LIABILITIES | 8,044 | 8,156 | 8,937 |
Fair value hedges | |||
Disclosure of detailed information about hedging instruments [line items] | |||
HEDGING DERIVATIVES, ASSETS | 3,607 | 4,678 | 4,620 |
HEDGING DERIVATIVES, LIABILITIES | 6,968 | 5,696 | 5,786 |
Portfolio hedges | |||
Disclosure of detailed information about hedging instruments [line items] | |||
HEDGING DERIVATIVES, ASSETS | 1,058 | 1,525 | 426 |
HEDGING DERIVATIVES, LIABILITIES | 1,920 | 2,329 | 2,168 |
Cash flow hedges | |||
Disclosure of detailed information about hedging instruments [line items] | |||
HEDGING DERIVATIVES, ASSETS | 4,416 | 5,349 | 2,449 |
HEDGING DERIVATIVES, LIABILITIES | 947 | 1,324 | 3,021 |
Hedges of net investment in foreign operations | |||
Disclosure of detailed information about hedging instruments [line items] | |||
HEDGING DERIVATIVES, ASSETS | 514 | 350 | 658 |
HEDGING DERIVATIVES, LIABILITIES | € 129 | € 1,136 | € 130 |
Non-current Assets (Details)
Non-current Assets (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Tangible assets | € 22,974 | € 23,286 | € 25,320 |
Other assets | 9,766 | 8,447 | 7,675 |
Total non-current assets held for sale | 15,280 | 5,772 | 5,646 |
Non-current assets held for sale | |||
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Tangible assets | 11,661 | 5,743 | 5,623 |
Foreclosed assets | 11,566 | 5,640 | 5,533 |
Other tangible assets held for sale | 95 | 103 | 90 |
Other assets | 3,619 | 29 | 23 |
Total non-current assets held for sale | 15,280 | 5,772 | 5,646 |
Banco Popular Espanol, S.A. | Non-current assets held for sale | |||
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Foreclosed assets | 5,943 | ||
Spain | Non-current assets held for sale | |||
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Foreclosed assets | € 10,533 | € 4,902 | € 4,983 |
Non-current Assets - Allowances
Non-current Assets - Allowances and other information (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Net charges recorded against valuation allowances | € 306 | € 212 | € 222 |
Proceeds from sale of assets held for sale | 1,382 | 1,147 | 940 |
Gains on disposals of non-current assets | € 577 | € 161 | € 208 |
Non-current assets held for sale | |||
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Allowances recognized for non-current assets (as percentage) | 50.00% | 51.00% | 51.00% |
Net charges recorded against valuation allowances | € 347 | € 241 | € 253 |
Recoveries | 41 | 29 | 31 |
Foreclosed assets | 11,566 | 5,640 | 5,533 |
Gains on disposals of non-current assets | 111 | € 71 | € 51 |
Foreclosed assets | Non-current assets held for sale | |||
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Proceeds from sale of assets held for sale | 1,295 | ||
Foreclosed assets | 2,168 | ||
Foreclosed assets provision | 968 | ||
Gains on disposals of non-current assets | 95 | ||
Other assets Member | Non-current assets held for sale | |||
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Proceeds from sale of assets held for sale | 87 | ||
Gains on disposals of non-current assets | € 8 |
Investments (Summary of Investm
Investments (Summary of Investments by company) (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Investment [Line Items] | |||
Investments in associates | € 4,197 | € 3,242 | € 1,659 |
Investments in joint ventures | 1,987 | 1,594 | 1,592 |
Wizink Bank, S.A. | |||
Investment [Line Items] | |||
Investments in joint ventures | 1,017 | ||
Union De Creditos Inmobiliarios SA EFC [Member] | |||
Investment [Line Items] | |||
Investments in joint ventures | 207 | 177 | 184 |
Aegon Santander Seguros | |||
Investment [Line Items] | |||
Investments in joint ventures | 186 | 197 | 240 |
SAM Investment Holdings Limited | |||
Investment [Line Items] | |||
Investments in joint ventures | 525 | 514 | |
Other joint venture companies | |||
Investment [Line Items] | |||
Investments in joint ventures | 577 | 695 | 654 |
Merlin Properties, SOCIMI, S.A. | |||
Investment [Line Items] | |||
Investments in associates | 1,242 | 1,168 | |
Zurich Santander Insurance America S.L. | |||
Investment [Line Items] | |||
Investments in associates | 988 | 1,011 | 873 |
Testa Residencial, SOCIMI, S.A. | |||
Investment [Line Items] | |||
Investments in associates | 651 | 307 | |
Allianz Popular, S.L. | |||
Investment [Line Items] | |||
Investments in associates | 438 | ||
Santander Insurance | |||
Investment [Line Items] | |||
Investments in associates | 358 | 325 | 301 |
Other associated companies | |||
Investment [Line Items] | |||
Investments in associates | € 520 | € 431 | € 485 |
Investments (Changes in Investm
Investments (Changes in Investments) (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment [Line Items] | |||
Balance at beginning of year | € 4,836 | € 3,251 | € 3,471 |
Acquisitions (disposals) and capital increases (reductions) | 1,893 | (72) | (72) |
Changes in the consolidation method (Note 3) | (582) | 1,457 | 21 |
Effect of equity accounting (Note 41) | 704 | 444 | 375 |
Dividends paid and reimbursements of share premium | (376) | (305) | (227) |
Exchange differences and other changes | (291) | 61 | (317) |
Balance at end of year | 6,184 | 4,836 | 3,251 |
SAM Investment Holdings Limited | |||
Investment [Line Items] | |||
Effect of equity accounting (Note 41) | 87 | 79 | € 64 |
Wizink Bank, S.A. | |||
Investment [Line Items] | |||
Acquisitions (disposals) and capital increases (reductions) | 1,017 | ||
Effect of equity accounting (Note 41) | 36 | ||
Allianz Popular, S.L. | |||
Investment [Line Items] | |||
Acquisitions (disposals) and capital increases (reductions) | 438 | ||
Effect of equity accounting (Note 41) | 15 | ||
Merlin and Testa | |||
Investment [Line Items] | |||
Changes in the consolidation method (Note 3) | € 1,475 | ||
Santander Insurance | SAM Investment Holdings Limited | |||
Investment [Line Items] | |||
Changes in the consolidation method (Note 3) | € (494) |
Investments (Summary on compani
Investments (Summary on companies using the equity method) (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | ||||
Total assets | € 1,444,305 | € 1,339,125 | € 1,340,260 | |
Total liabilities | (1,337,472) | (1,236,426) | (1,241,507) | |
Goodwill | 25,769 | 26,724 | 26,960 | € 27,548 |
Total revenue | 74,182 | 74,159 | 71,896 | |
Total profit | 8,207 | 7,486 | 7,334 | |
Group's share of profit | 704 | 444 | 375 | |
Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | ||||
Investment [Line Items] | ||||
Total assets | 63,093 | 55,791 | 42,510 | |
Total liabilities | (51,242) | (45,623) | (38,118) | |
Net assets | 11,851 | 10,168 | 4,392 | |
Total revenue | 12,536 | 11,766 | 11,430 | |
Total profit | 1,699 | 984 | 935 | |
Investments accounted for using equity method | ||||
Investment [Line Items] | ||||
Net assets | 6,184 | 4,836 | 3,251 | |
Net assets excluding goodwill | 4,194 | 3,381 | 1,904 | |
Goodwill | 1,990 | 1,455 | 1,347 | |
Wizink Bank, S.A. | ||||
Investment [Line Items] | ||||
Goodwill | 553 | |||
Group's share of profit | 36 | |||
Wizink Bank, S.A. | Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | ||||
Investment [Line Items] | ||||
Total assets | 5,235 | |||
Total liabilities | (4,054) | |||
Total revenue | 947 | |||
Total profit | 73 | |||
Zurich Santander Insurance America S.L. | ||||
Investment [Line Items] | ||||
Goodwill | 526 | 526 | 526 | |
Group's share of profit | 241 | 223 | 183 | |
Zurich Santander Insurance America S.L. | Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | ||||
Investment [Line Items] | ||||
Total assets | 16,049 | |||
Total liabilities | (15,105) | |||
Total revenue | 4,696 | |||
Total profit | 491 | |||
Allianz Popular, S.L. | ||||
Investment [Line Items] | ||||
Goodwill | 347 | |||
Group's share of profit | 15 | |||
Allianz Popular, S.L. | Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | ||||
Investment [Line Items] | ||||
Total assets | 1,053 | |||
Total liabilities | (826) | |||
Total revenue | 481 | |||
Total profit | 38 | |||
Santander Insurance | ||||
Investment [Line Items] | ||||
Goodwill | 205 | € 205 | € 205 | |
Santander Insurance | Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | ||||
Investment [Line Items] | ||||
Total assets | 2,161 | |||
Total liabilities | (1,852) | |||
Total revenue | 843 | |||
Total profit | € 63 |
Investments (Summary on the mai
Investments (Summary on the main associates and joint ventures) (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment [Line Items] | |||
Total assets | € 1,444,305 | € 1,339,125 | € 1,340,260 |
Total liabilities | (1,337,472) | (1,236,426) | (1,241,507) |
Total revenue | 74,182 | 74,159 | 71,896 |
Total profit | 8,207 | 7,486 | 7,334 |
Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | |||
Investment [Line Items] | |||
Total assets | 63,093 | 55,791 | 42,510 |
Total liabilities | (51,242) | (45,623) | (38,118) |
Total revenue | 12,536 | 11,766 | 11,430 |
Total profit | 1,699 | € 984 | € 935 |
Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | Joint ventures [member] | |||
Investment [Line Items] | |||
Total assets | 25,789 | ||
Total liabilities | (23,072) | ||
Total revenue | 3,833 | ||
Total profit | 330 | ||
Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | Union De Creditos Inmobiliarios SA EFC [Member] | |||
Investment [Line Items] | |||
Total assets | 12,318 | ||
Total liabilities | (11,905) | ||
Total revenue | 345 | ||
Total profit | 10 | ||
Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | Wizink Bank, S.A. | |||
Investment [Line Items] | |||
Total assets | 5,235 | ||
Total liabilities | (4,054) | ||
Total revenue | 947 | ||
Total profit | 73 | ||
Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | Aegon Santander Seguros | |||
Investment [Line Items] | |||
Total assets | 654 | ||
Total liabilities | (424) | ||
Total revenue | 382 | ||
Total profit | 30 | ||
Associates [member] | Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | |||
Investment [Line Items] | |||
Total assets | 37,304 | ||
Total liabilities | (28,170) | ||
Total revenue | 8,703 | ||
Total profit | 1,369 | ||
Zurich Santander Insurance America S.L. | Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | |||
Investment [Line Items] | |||
Total assets | 16,049 | ||
Total liabilities | (15,105) | ||
Total revenue | 4,696 | ||
Total profit | 491 | ||
Allianz Popular, S.L. | Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | |||
Investment [Line Items] | |||
Total assets | 1,053 | ||
Total liabilities | (826) | ||
Total revenue | 481 | ||
Total profit | 38 | ||
Santander Insurance | Aggregate Amounts For Entities Accounted For Using The Equity Method [Member] | |||
Investment [Line Items] | |||
Total assets | 2,161 | ||
Total liabilities | (1,852) | ||
Total revenue | 843 | ||
Total profit | € 63 |
Insurance contracts linked t182
Insurance contracts linked to pensions (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Insurance contracts linked to pensions | |||
Assets arising from insurance contracts | € 239 | € 269 | € 299 |
Banco Santander S.A. | |||
Insurance contracts linked to pensions | |||
Assets arising from insurance contracts | 238 | € 269 | € 299 |
Banco Popular Espanol, S.A. | |||
Insurance contracts linked to pensions | |||
Assets arising from insurance contracts | € 1 |
Liabilities and Assets under183
Liabilities and Assets under insurance contracts and Reinsurance assets (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Direct insurance and reinsurance assumed | € 1,117 | € 652 | € 627 |
Reinsurance ceded | (341) | (331) | (331) |
Total (balance payable) | 776 | 321 | 296 |
Unearned premiums and unexpired risks | |||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Direct insurance and reinsurance assumed | 50 | 61 | 62 |
Reinsurance ceded | (41) | (46) | (39) |
Total (balance payable) | 9 | 15 | 23 |
Life insurance | |||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Direct insurance and reinsurance assumed | 483 | 159 | 149 |
Reinsurance ceded | (151) | (138) | (136) |
Total (balance payable) | 332 | 21 | 13 |
Claims outstanding | |||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Direct insurance and reinsurance assumed | 423 | 358 | 335 |
Reinsurance ceded | (115) | (98) | (112) |
Total (balance payable) | 308 | 260 | 223 |
Bonuses and rebates | |||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Direct insurance and reinsurance assumed | 29 | 19 | 18 |
Reinsurance ceded | (11) | (8) | (9) |
Total (balance payable) | 18 | 11 | 9 |
Other technical provisions | |||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Direct insurance and reinsurance assumed | 132 | 55 | 63 |
Reinsurance ceded | (23) | (41) | (35) |
Total (balance payable) | € 109 | € 14 | € 28 |
Tangible assets (Details)
Tangible assets (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | € 23,286 | € 25,320 | |
Transfers, exchange differences and other items | € (1,593) | ||
Balance, at the end of the period | 22,974 | 23,286 | 25,320 |
Gross carrying amount | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | 39,815 | 39,708 | 35,241 |
Additions / disposals (net) due to change in the scope of consolidation | 1,945 | (4,008) | (48) |
Additions/ disposals (net) | 3,126 | 3,079 | 4,647 |
Transfers, exchange differences and other items | (3,795) | 1,036 | (132) |
Balance, at the end of the period | 41,091 | 39,815 | 39,708 |
Accumulated depreciation and amortization | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | (15,577) | (13,108) | (10,951) |
Additions / disposals (net) due to change in the scope of consolidation | 123 | (22) | |
Additions/ disposals (net) | 1,125 | 797 | 630 |
Charge for the year | (1,190) | (1,089) | (1,172) |
Transfers, exchange differences and other items | (1,571) | (2,300) | |
Balance, at the end of the period | (17,213) | (15,577) | (13,108) |
Impairment losses | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | (952) | (1,280) | (1,034) |
Impairment charge for the year | (79) | (117) | (151) |
Releases | 7 | 62 | 23 |
Additions / disposals (net) due to change in the scope of consolidation | (3) | 310 | 1 |
Transfers, exchange differences and other items | 123 | 73 | (119) |
Balance, at the end of the period | (904) | (952) | (1,280) |
Property, plant and equipment for own use | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | 7,860 | 7,949 | |
Transfers, exchange differences and other items | 296 | ||
Balance, at the end of the period | 8,279 | 7,860 | 7,949 |
Property, plant and equipment for own use | Gross carrying amount | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | 18,112 | 17,442 | 17,351 |
Additions / disposals (net) due to change in the scope of consolidation | 1,740 | (17) | (22) |
Additions/ disposals (net) | 781 | 763 | 878 |
Transfers, exchange differences and other items | (1,357) | (76) | (765) |
Balance, at the end of the period | 19,276 | 18,112 | 17,442 |
Property, plant and equipment for own use | Accumulated depreciation and amortization | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | (10,211) | (9,448) | (8,979) |
Additions / disposals (net) due to change in the scope of consolidation | 5 | (27) | |
Additions/ disposals (net) | 478 | 311 | 423 |
Charge for the year | (1,165) | (1,079) | (1,161) |
Transfers, exchange differences and other items | (22) | ||
Balance, at the end of the period | (10,920) | (10,211) | (9,448) |
Property, plant and equipment for own use | Impairment losses | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | (41) | (45) | (48) |
Impairment charge for the year | (16) | (12) | (5) |
Releases | 4 | 1 | 3 |
Additions / disposals (net) due to change in the scope of consolidation | 1 | 5 | |
Transfers, exchange differences and other items | (24) | 14 | |
Balance, at the end of the period | (77) | (41) | (45) |
Property, plant and equipment leased out under an operating lease | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | 12,910 | 11,386 | |
Transfers, exchange differences and other items | (1,794) | ||
Balance, at the end of the period | 12,371 | 12,910 | 11,386 |
Property, plant and equipment leased out under an operating lease | Gross carrying amount | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | 18,238 | 14,921 | 10,466 |
Additions / disposals (net) due to change in the scope of consolidation | 205 | 287 | 1 |
Additions/ disposals (net) | 2,445 | 2,380 | 3,857 |
Transfers, exchange differences and other items | (2,215) | 650 | 597 |
Balance, at the end of the period | 18,673 | 18,238 | 14,921 |
Property, plant and equipment leased out under an operating lease | Accumulated depreciation and amortization | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | (5,169) | (3,376) | (1,778) |
Additions / disposals (net) due to change in the scope of consolidation | (3) | ||
Additions/ disposals (net) | 639 | 457 | 196 |
Transfers, exchange differences and other items | (1,574) | (2,247) | |
Balance, at the end of the period | (6,104) | (5,169) | (3,376) |
Property, plant and equipment leased out under an operating lease | Impairment losses | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | (159) | (159) | (123) |
Impairment charge for the year | (42) | (43) | (37) |
Releases | 1 | ||
Additions / disposals (net) due to change in the scope of consolidation | (2) | ||
Transfers, exchange differences and other items | 5 | 42 | 1 |
Balance, at the end of the period | (198) | (159) | (159) |
Investment property [Member] | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | 2,516 | 5,985 | |
Transfers, exchange differences and other items | (95) | ||
Balance, at the end of the period | 2,324 | 2,516 | 5,985 |
Investment property [Member] | Gross carrying amount | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | 3,465 | 7,345 | 7,424 |
Additions / disposals (net) due to change in the scope of consolidation | (4,278) | (27) | |
Additions/ disposals (net) | (100) | (64) | (88) |
Transfers, exchange differences and other items | (223) | 462 | 36 |
Balance, at the end of the period | 3,142 | 3,465 | 7,345 |
Investment property [Member] | Accumulated depreciation and amortization | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | (197) | (284) | (194) |
Additions / disposals (net) due to change in the scope of consolidation | 121 | 5 | |
Additions/ disposals (net) | 8 | 29 | 11 |
Charge for the year | (25) | (10) | (11) |
Transfers, exchange differences and other items | 25 | (53) | |
Balance, at the end of the period | (189) | (197) | (284) |
Investment property [Member] | Impairment losses | |||
Changes in property, plant and equipment [abstract] | |||
Balance, at the beginning of the period | (752) | (1,076) | (863) |
Impairment charge for the year | (21) | (62) | (109) |
Releases | 3 | 60 | 20 |
Additions / disposals (net) due to change in the scope of consolidation | (1) | 309 | (4) |
Transfers, exchange differences and other items | 142 | 17 | (120) |
Balance, at the end of the period | € (629) | € (752) | € (1,076) |
Tangible assets - Property, pla
Tangible assets - Property, plant and equipment for own use (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment for own use | |||
Carrying amount | € 20,650 | € 20,770 | € 19,335 |
Property, plant and equipment for own use | |||
Property, plant and equipment for own use | |||
Carrying amount | 8,279 | 7,860 | 7,949 |
Property, plant and equipment for own use | Group | |||
Property, plant and equipment for own use | |||
Carrying amount | 5,455 | 5,906 | 5,870 |
Property, plant and equipment for own use | Gross carrying amount | |||
Property, plant and equipment for own use | |||
Carrying amount | 19,276 | 18,112 | 17,442 |
Property, plant and equipment for own use | Accumulated depreciation and amortization | |||
Property, plant and equipment for own use | |||
Carrying amount | (10,920) | (10,211) | (9,448) |
Property, plant and equipment for own use | Impairment losses | |||
Property, plant and equipment for own use | |||
Carrying amount | (77) | (41) | (45) |
Land and buildings | |||
Property, plant and equipment for own use | |||
Carrying amount | 3,801 | 3,705 | 3,817 |
Land and buildings | Gross carrying amount | |||
Property, plant and equipment for own use | |||
Carrying amount | 5,892 | 5,713 | 5,754 |
Land and buildings | Accumulated depreciation and amortization | |||
Property, plant and equipment for own use | |||
Carrying amount | (2,014) | (1,967) | (1,892) |
Land and buildings | Impairment losses | |||
Property, plant and equipment for own use | |||
Carrying amount | (77) | (41) | (45) |
IT equipment and fixtures | |||
Property, plant and equipment for own use | |||
Carrying amount | 1,186 | 1,064 | 1,057 |
IT equipment and fixtures | Gross carrying amount | |||
Property, plant and equipment for own use | |||
Carrying amount | 5,608 | 5,225 | 4,984 |
IT equipment and fixtures | Accumulated depreciation and amortization | |||
Property, plant and equipment for own use | |||
Carrying amount | (4,422) | (4,161) | (3,927) |
Furniture and vehicles | |||
Property, plant and equipment for own use | |||
Carrying amount | 2,822 | 2,940 | 2,813 |
Furniture and vehicles | Gross carrying amount | |||
Property, plant and equipment for own use | |||
Carrying amount | 7,213 | 6,963 | 6,374 |
Furniture and vehicles | Accumulated depreciation and amortization | |||
Property, plant and equipment for own use | |||
Carrying amount | (4,391) | (4,023) | (3,561) |
Construction in progress and other items | |||
Property, plant and equipment for own use | |||
Carrying amount | 470 | 151 | 262 |
Construction in progress and other items | Gross carrying amount | |||
Property, plant and equipment for own use | |||
Carrying amount | 563 | 211 | 330 |
Construction in progress and other items | Accumulated depreciation and amortization | |||
Property, plant and equipment for own use | |||
Carrying amount | € (93) | € (60) | € (68) |
Tangible Assets - Investment Pr
Tangible Assets - Investment Property (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment property | |||
Fair value of investment property | € 2,435 | € 2,583 | € 6,097 |
Gross unrealized gains | € 128 | € 67 | € 112 |
Tangible assets - Sale of prope
Tangible assets - Sale of properties - (Details) € in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2008item | |
Sale of properties | ||||
Number of hallmark properties sold | item | 10 | |||
Number of bank branches sold in Spain | item | 1,152 | |||
Rental expense | € 330 | € 297 | € 297 | |
Within one year | ||||
Sale of properties | ||||
Minimum lease payments payable under non-cancellable operating lease | 246 | |||
Between one and five years | ||||
Sale of properties | ||||
Minimum lease payments payable under non-cancellable operating lease | 672 | |||
More than five years | ||||
Sale of properties | ||||
Minimum lease payments payable under non-cancellable operating lease | € 1,461 | |||
Hallmark properties | Minimum | ||||
Sale of properties | ||||
Term of operating lease | 12 years | |||
Hallmark properties | Maximum | ||||
Sale of properties | ||||
Term of operating lease | 15 years | |||
Branch offices | Minimum | ||||
Sale of properties | ||||
Term of operating lease | 24 years | |||
Branch offices | Maximum | ||||
Sale of properties | ||||
Term of operating lease | 26 years | |||
Santander Business Campus | ||||
Sale of properties | ||||
Term of operating lease | 40 years |
Intangible assets - Goodwill -
Intangible assets - Goodwill - Summary (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash-generating units information | ||||
Goodwill | € 25,769 | € 26,724 | € 26,960 | € 27,548 |
Santander UK plc | ||||
Cash-generating units information | ||||
Goodwill | 8,375 | 8,679 | 10,125 | |
Banco Santander (Brasil) S.A | ||||
Cash-generating units information | ||||
Goodwill | 4,988 | 5,769 | 4,590 | |
Santander Consumer USA Holdings Inc. | ||||
Cash-generating units information | ||||
Goodwill | 2,007 | 3,182 | 3,081 | |
Bank Zachodni WBK S.A. | ||||
Cash-generating units information | ||||
Goodwill | 2,473 | 2,342 | 2,423 | |
Santander Bank, National Association | ||||
Cash-generating units information | ||||
Goodwill | 1,712 | 1,948 | 1,886 | |
Santander Consumer Germany | ||||
Cash-generating units information | ||||
Goodwill | 1,217 | 1,217 | 1,217 | |
Santander Asset Management | ||||
Cash-generating units information | ||||
Goodwill | 1,173 | |||
Banco Santander Totta SA | ||||
Cash-generating units information | ||||
Goodwill | 1,040 | 1,040 | 1,040 | |
Banco Santander - Chile | ||||
Cash-generating units information | ||||
Goodwill | 676 | 704 | 644 | |
Santander Consumer Bank AS | ||||
Cash-generating units information | ||||
Goodwill | 518 | 537 | 546 | |
Banco Santander S.A. (Mexico) | ||||
Cash-generating units information | ||||
Goodwill | 413 | 449 | 517 | |
Other cash-generating companies | ||||
Cash-generating units information | ||||
Goodwill | 1,177 | € 857 | € 891 | |
Banco Popular Espanol, S.A. | ||||
Cash-generating units information | ||||
Goodwill | € 248 |
Intangible assets - Goodwill189
Intangible assets - Goodwill - Changes (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in goodwill | |||
Goodwill at beginning of period | € 26,724 | € 26,960 | € 27,548 |
Additions | 1,644 | 235 | |
Impairment losses | (899) | (50) | (115) |
Disposals or changes in scope of consolidation | (2) | (172) | |
Exchange differences and other items | (1,700) | (184) | (536) |
Goodwill at end of period | 25,769 | 26,724 | 26,960 |
Loss related to measurement of goodwill | (105) | 1,627 | (3,156) |
Santander Asset Management | |||
Changes in goodwill | |||
Additions | 1,173 | ||
Banco Popular Espanol, S.A. | |||
Changes in goodwill | |||
Additions | 248 | ||
Santander Consumer USA Holdings Inc. | |||
Changes in goodwill | |||
Impairment losses | (799) | ||
Carfinco Financial Group Inc. | |||
Changes in goodwill | |||
Additions | 162 | ||
Goodwill. | |||
Changes in goodwill | |||
Loss related to measurement of goodwill | € 1,704 | € 185 | € 514 |
Intangible assets - Goodwill190
Intangible assets - Goodwill - Assumptions (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash-generating units information | |||
Percentage increase in designated risk component | 0.50% | ||
Percentage decrease in designated risk component | 0.50% | ||
Impairment loss recognised in profit or loss, goodwill | € 899 | € 50 | € 115 |
CANADA | |||
Cash-generating units information | |||
Impairment loss recognised in profit or loss, goodwill | € 100 | ||
Santander UK plc | |||
Cash-generating units information | |||
Projected period | 5 years | ||
Discount rate (as a percent) | 8.40% | ||
Nominal perpetual growth rate (as a percent) | 2.50% | ||
Banco Santander (Brasil) S.A | |||
Cash-generating units information | |||
Projected period | 5 years | ||
Discount rate (as a percent) | 14.60% | ||
Nominal perpetual growth rate (as a percent) | 8.30% | ||
Santander Bank, National Association | |||
Cash-generating units information | |||
Projected period | 3 years | ||
Discount rate (as a percent) | 10.10% | ||
Nominal perpetual growth rate (as a percent) | 3.70% | ||
Santander Consumer Germany | |||
Cash-generating units information | |||
Projected period | 3 years | ||
Discount rate (as a percent) | 8.60% | ||
Nominal perpetual growth rate (as a percent) | 2.50% | ||
Santander Consumer USA Holdings Inc. | |||
Cash-generating units information | |||
Projected period | 3 years | ||
Discount rate (as a percent) | 10.70% | ||
Nominal perpetual growth rate (as a percent) | 2.50% | ||
Impairment loss recognised in profit or loss, goodwill | € 799 | ||
Impairment loss, net of tax, goodwill | € 504 | ||
Banco Santander Totta SA | |||
Cash-generating units information | |||
Projected period | 5 years | ||
Discount rate (as a percent) | 10.00% | ||
Nominal perpetual growth rate (as a percent) | 2.50% | ||
Santander Consumer Bank AS | |||
Cash-generating units information | |||
Projected period | 5 years | ||
Discount rate (as a percent) | 9.00% | ||
Nominal perpetual growth rate (as a percent) | 2.50% |
Intangible assets - Other in191
Intangible assets - Other intangible assets (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible assets - Other intangible assets | |||
Intangible assets, beginning balance | € 2,697 | € 2,470 | € 2,853 |
Net additions and disposals | 1,538 | 1,768 | 1,568 |
Change in scope of consolidation | 414 | (124) | (7) |
Amortization and impairment | (1,577) | (1,286) | (1,832) |
Exchange differences and other | (158) | (131) | (112) |
Intangible assets, end balance | 2,914 | 2,697 | 2,470 |
Impairment losses | 174 | 11 | 586 |
Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Intangible assets, beginning balance | (4,848) | (3,873) | (3,623) |
Change in scope of consolidation | (64) | 20 | |
Amortization and impairment | (1,403) | (1,275) | (1,246) |
Application of amortization and impairment | 694 | 716 | 663 |
Exchange differences and other | 235 | (416) | 313 |
Intangible assets, end balance | (5,386) | (4,848) | (3,873) |
Impairment losses | |||
Intangible assets - Other intangible assets | |||
Intangible assets, beginning balance | (297) | (423) | (229) |
Amortization and impairment | (174) | (11) | (586) |
Application of amortization and impairment | 111 | 185 | 386 |
Exchange differences and other | 120 | (48) | 6 |
Intangible assets, end balance | (240) | (297) | (423) |
Brand names | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Intangible assets, beginning balance | 39 | 49 | 61 |
Net additions and disposals | 1 | ||
Change in scope of consolidation | (2) | ||
Application of amortization and impairment | (11) | (17) | |
Exchange differences and other | (4) | 7 | |
Intangible assets, end balance | € 35 | € 39 | € 49 |
IT developments | Minimum | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 3 years | 3 years | 3 years |
IT developments | Maximum | |||
Intangible assets - Other intangible assets | |||
Estimated useful life | 7 years | 7 years | 7 years |
IT developments | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Intangible assets, beginning balance | € 6,558 | € 5,411 | € 5,350 |
Net additions and disposals | 1,470 | 1,726 | 1,481 |
Change in scope of consolidation | 42 | (25) | |
Application of amortization and impairment | (679) | (890) | (951) |
Exchange differences and other | (446) | 311 | (444) |
Intangible assets, end balance | 6,945 | 6,558 | 5,411 |
IT developments | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Intangible assets, beginning balance | (4,240) | (3,353) | (3,096) |
Change in scope of consolidation | (14) | 20 | |
Amortization and impairment | (1,310) | (1,168) | (1,138) |
Application of amortization and impairment | 627 | 716 | 613 |
Exchange differences and other | 216 | (435) | 248 |
Intangible assets, end balance | (4,721) | (4,240) | (3,353) |
Other intangibles | Gross carrying amount | |||
Intangible assets - Other intangible assets | |||
Intangible assets, beginning balance | 1,245 | 1,306 | 1,294 |
Net additions and disposals | 68 | 41 | 87 |
Change in scope of consolidation | 436 | (124) | |
Application of amortization and impairment | (126) | (81) | |
Exchange differences and other | (63) | 22 | 6 |
Intangible assets, end balance | 1,560 | 1,245 | 1,306 |
Other intangibles | Accumulated depreciation and amortization | |||
Intangible assets - Other intangible assets | |||
Intangible assets, beginning balance | (608) | (520) | (527) |
Change in scope of consolidation | (50) | ||
Amortization and impairment | (93) | (107) | (108) |
Application of amortization and impairment | 67 | 50 | |
Exchange differences and other | 19 | 19 | 65 |
Intangible assets, end balance | € (665) | € (608) | € (520) |
Other Assets (Details)
Other Assets (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets Abstract | |||
Transactions in transit | € 206 | € 431 | € 323 |
Net pension plan assets (note 25) | 604 | 521 | 787 |
Prepayments and accrued income | 2,326 | 2,232 | 1,976 |
Other | 4,427 | 3,878 | 3,277 |
Other assets, total | € 7,563 | € 7,062 | € 6,363 |
Deposits from central banks 193
Deposits from central banks and credit institutions (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Line Items] | |||
Financial liabilities held for trading | € 107,624 | € 108,765 | € 105,218 |
Financial liabilities designated at fair value through profit or loss | 59,616 | 40,263 | 54,768 |
Financial liabilities at amortized cost | 1,126,069 | 1,044,240 | 1,039,343 |
Deposits from banks and credit unions | 190,314 | 149,398 | 175,373 |
Deposits from central banks at amortised cost due to participation in the refinancing operations program | 58,550 | ||
Deposits | |||
Deposits [Line Items] | |||
Financial liabilities held for trading | 28,753 | 11,391 | 11,442 |
Financial liabilities designated at fair value through profit or loss | 55,971 | 37,472 | 51,394 |
Financial liabilities at amortized cost | 883,320 | 791,646 | 795,679 |
Deposits - Central banks | |||
Deposits [Line Items] | |||
Financial liabilities held for trading | 282 | 1,351 | 2,178 |
Financial liabilities designated at fair value through profit or loss | 8,860 | 9,112 | 16,486 |
Financial liabilities at amortized cost | 71,414 | 44,112 | 38,872 |
Deposits On Demand | 5 | 5 | 5 |
Time deposits | 78,801 | 46,278 | 41,872 |
Reverse Repurchase Agreements | 1,750 | 8,292 | 15,659 |
Deposits from banks and credit unions | 80,556 | 54,575 | 57,536 |
Deposits - Credit institutions | |||
Deposits [Line Items] | |||
Financial liabilities held for trading | 292 | 44 | 77 |
Financial liabilities designated at fair value through profit or loss | 18,166 | 5,015 | 8,551 |
Financial liabilities at amortized cost | 91,300 | 89,764 | 109,209 |
Deposits On Demand | 6,444 | 4,220 | 4,526 |
Time deposits | 54,159 | 61,321 | 71,244 |
Reverse Repurchase Agreements | 49,049 | 29,277 | 42,064 |
Subordinated deposits | 106 | 5 | 3 |
Deposits from banks and credit unions | 109,758 | 94,823 | 117,837 |
Euro | |||
Deposits [Line Items] | |||
Deposits from banks and credit unions | 119,606 | 74,746 | 92,062 |
Pound sterling | |||
Deposits [Line Items] | |||
Deposits from banks and credit unions | 14,820 | 12,237 | 5,961 |
U.S. dollar | |||
Deposits [Line Items] | |||
Deposits from banks and credit unions | 33,259 | 40,514 | 48,586 |
Brazilian real | |||
Deposits [Line Items] | |||
Deposits from banks and credit unions | 16,485 | 16,537 | 16,410 |
Other currencies | |||
Deposits [Line Items] | |||
Deposits from banks and credit unions | € 6,144 | € 5,364 | € 12,354 |
Customer deposits (Details)
Customer deposits (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Customer Deposits [Line Items] | |||
Financial liabilities held for trading | € 107,624 | € 108,765 | € 105,218 |
Financial liabilities designated at fair value through profit or loss | 59,616 | 40,263 | 54,768 |
Financial liabilities at amortised cost | 1,126,069 | 1,044,240 | 1,039,343 |
Total deposits from customers | 777,730 | 691,111 | 683,142 |
Deposits | |||
Customer Deposits [Line Items] | |||
Financial liabilities held for trading | 28,753 | 11,391 | 11,442 |
Financial liabilities designated at fair value through profit or loss | 55,971 | 37,472 | 51,394 |
Financial liabilities at amortised cost | 883,320 | 791,646 | 795,679 |
Deposits - Customers | |||
Customer Deposits [Line Items] | |||
Financial liabilities held for trading | 28,179 | 9,996 | 9,187 |
Financial liabilities designated at fair value through profit or loss | 28,945 | 23,345 | 26,357 |
Financial liabilities at amortised cost | 720,606 | 657,770 | 647,598 |
Current accounts | 328,217 | 279,494 | 257,192 |
Savings accounts | 189,845 | 180,611 | 180,415 |
Other demand deposits | 7,010 | 7,156 | 5,489 |
Fixed-term deposits and other term deposits | 195,285 | 176,581 | 196,965 |
Home-purchase savings accounts | 45 | 50 | 59 |
Discount deposits | 3 | 448 | 448 |
Hybrid financial liabilities | 4,295 | 3,986 | 5,174 |
Subordinated liabilities | 21 | 24 | 20 |
Repurchase agreements | 53,009 | 42,761 | 37,380 |
Total deposits from customers | 777,730 | 691,111 | 683,142 |
Deposits - Customers | Spain | |||
Customer Deposits [Line Items] | |||
Total deposits from customers | 260,181 | 181,888 | 183,778 |
Deposits - Customers | European Union (excluding Spain) | |||
Customer Deposits [Line Items] | |||
Total deposits from customers | 318,580 | 295,059 | 311,314 |
Deposits - Customers | United States and Puerto Rico | |||
Customer Deposits [Line Items] | |||
Total deposits from customers | 50,771 | 63,429 | 59,814 |
Deposits - Customers | Other OECD countries | |||
Customer Deposits [Line Items] | |||
Total deposits from customers | 62,980 | 62,761 | 57,817 |
Deposits - Customers | Latin America (non-OECD) | |||
Customer Deposits [Line Items] | |||
Total deposits from customers | 84,752 | 87,519 | 69,792 |
Deposits - Customers | Rest of World | |||
Customer Deposits [Line Items] | |||
Total deposits from customers | € 466 | € 455 | € 627 |
Marketable debt securities - Br
Marketable debt securities - Breakdown (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Marketable debt securities | ||||
Financial liabilities held for trading | € 107,624 | € 108,765 | € 105,218 | |
Financial liabilities designated at fair value through profit or loss | 59,616 | 40,263 | 54,768 | |
Financial liabilities at amortized cost | 1,126,069 | 1,044,240 | 1,039,343 | |
Marketable debt securities | ||||
Marketable debt securities | ||||
Financial liabilities designated at fair value through profit or loss | 3,056 | 2,791 | 3,373 | |
Financial liabilities at amortized cost | 214,910 | 226,078 | 222,787 | |
Total financial liabilities | 217,966 | 228,869 | 226,160 | |
Marketable debt securities | Bonds and Debentures and Subordinated Liabilities and Notes and Other Securities | ||||
Marketable debt securities | ||||
Total financial liabilities | 217,966 | 228,869 | 226,160 | |
Marketable debt securities | Bonds and debentures | ||||
Marketable debt securities | ||||
Total financial liabilities | 176,719 | 183,278 | 182,073 | € 178,710 |
Marketable debt securities | Subordinated liabilities | ||||
Marketable debt securities | ||||
Total financial liabilities | 21,382 | 19,873 | 21,131 | |
Marketable debt securities | Notes and other securities | ||||
Marketable debt securities | ||||
Total financial liabilities | € 19,865 | € 25,718 | € 22,956 |
Marketable debt securities - Bo
Marketable debt securities - Bonds and Debentures Maturities (Details) - Marketable debt securities - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Marketable debt securities | ||||
Financial liabilities | € 217,966 | € 228,869 | € 226,160 | |
Bonds and Debentures and Subordinated Liabilities | ||||
Marketable debt securities | ||||
Financial liabilities | 198,101 | |||
Bonds and Debentures and Subordinated Liabilities | Within one year | ||||
Marketable debt securities | ||||
Financial liabilities | 34,278 | |||
Bonds and Debentures and Subordinated Liabilities | 1 to 3 years | ||||
Marketable debt securities | ||||
Financial liabilities | 54,560 | |||
Bonds and Debentures and Subordinated Liabilities | 3 to 5 years | ||||
Marketable debt securities | ||||
Financial liabilities | 44,090 | |||
Bonds and Debentures and Subordinated Liabilities | More than five years | ||||
Marketable debt securities | ||||
Financial liabilities | 65,173 | |||
Subordinated liabilities | ||||
Marketable debt securities | ||||
Financial liabilities | 21,382 | 19,873 | 21,131 | |
Subordinated liabilities | Within one year | ||||
Marketable debt securities | ||||
Financial liabilities | 463 | |||
Subordinated liabilities | 1 to 3 years | ||||
Marketable debt securities | ||||
Financial liabilities | 8 | |||
Subordinated liabilities | 3 to 5 years | ||||
Marketable debt securities | ||||
Financial liabilities | 6 | |||
Subordinated liabilities | More than five years | ||||
Marketable debt securities | ||||
Financial liabilities | 20,905 | |||
Bonds and debentures | ||||
Marketable debt securities | ||||
Financial liabilities | 176,719 | € 183,278 | € 182,073 | € 178,710 |
Bonds and debentures | Within one year | ||||
Marketable debt securities | ||||
Financial liabilities | 33,815 | |||
Bonds and debentures | 1 to 3 years | ||||
Marketable debt securities | ||||
Financial liabilities | 54,552 | |||
Bonds and debentures | 3 to 5 years | ||||
Marketable debt securities | ||||
Financial liabilities | 44,084 | |||
Bonds and debentures | More than five years | ||||
Marketable debt securities | ||||
Financial liabilities | 44,268 | |||
Covered bonds | ||||
Marketable debt securities | ||||
Financial liabilities | 86,272 | |||
Covered bonds | Within one year | ||||
Marketable debt securities | ||||
Financial liabilities | 14,439 | |||
Covered bonds | 1 to 3 years | ||||
Marketable debt securities | ||||
Financial liabilities | 21,338 | |||
Covered bonds | 3 to 5 years | ||||
Marketable debt securities | ||||
Financial liabilities | 22,638 | |||
Covered bonds | More than five years | ||||
Marketable debt securities | ||||
Financial liabilities | 27,857 | |||
Other bonds and debentures | ||||
Marketable debt securities | ||||
Financial liabilities | 90,447 | |||
Other bonds and debentures | Within one year | ||||
Marketable debt securities | ||||
Financial liabilities | 19,376 | |||
Other bonds and debentures | 1 to 3 years | ||||
Marketable debt securities | ||||
Financial liabilities | 33,214 | |||
Other bonds and debentures | 3 to 5 years | ||||
Marketable debt securities | ||||
Financial liabilities | 21,446 | |||
Other bonds and debentures | More than five years | ||||
Marketable debt securities | ||||
Financial liabilities | € 16,411 |
Marketable debt securities -197
Marketable debt securities - Bonds and Debentures by Currency (Details) - Marketable debt securities - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Marketable debt securities | ||||
Financial liabilities | € 217,966 | € 228,869 | € 226,160 | |
Bonds and debentures | ||||
Marketable debt securities | ||||
Financial liabilities | 176,719 | 183,278 | 182,073 | € 178,710 |
Bonds and debentures | Euro | ||||
Marketable debt securities | ||||
Financial liabilities | 83,321 | 77,231 | 88,922 | |
Outstanding issue amount in foreign currency | € 83,321 | |||
Annual interest rate (as a percent) | 1.51% | |||
Bonds and debentures | U.S. dollar | ||||
Marketable debt securities | ||||
Financial liabilities | € 48,688 | 48,134 | 46,463 | |
Outstanding issue amount in foreign currency | € 56,841 | |||
Annual interest rate (as a percent) | 2.67% | |||
Bonds and debentures | Pound sterling | ||||
Marketable debt securities | ||||
Financial liabilities | € 13,279 | 15,098 | 16,757 | |
Outstanding issue amount in foreign currency | € 11,181 | |||
Annual interest rate (as a percent) | 2.69% | |||
Bonds and debentures | Brazilian real | ||||
Marketable debt securities | ||||
Financial liabilities | € 17,309 | 27,152 | 19,125 | |
Outstanding issue amount in foreign currency | € 62,592 | |||
Annual interest rate (as a percent) | 8.14% | |||
Bonds and debentures | Hong Kong dollars | ||||
Marketable debt securities | ||||
Financial liabilities | 40 | 74 | ||
Bonds and debentures | Chilean peso | ||||
Marketable debt securities | ||||
Financial liabilities | € 5,876 | 6,592 | 3,634 | |
Outstanding issue amount in foreign currency | € 4,180,799 | |||
Annual interest rate (as a percent) | 4.54% | |||
Bonds and debentures | Other currencies | ||||
Marketable debt securities | ||||
Financial liabilities | € 8,246 | € 9,030 | € 7,098 |
Marketable debt securities - Ch
Marketable debt securities - Changes in Bonds and Debentures (Details) - Marketable debt securities - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Balance at beginning of year | € 228,869 | € 226,160 | |
Balance at year-end | 217,966 | 228,869 | € 226,160 |
Bonds and debentures | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Balance at beginning of year | 183,278 | 182,073 | 178,710 |
Net inclusion of entities in the Group | 11,426 | 1,009 | 5,229 |
Issues | 62,260 | 57,012 | 66,223 |
Redemptions and repurchases | (66,871) | (59,036) | (69,295) |
Exchange differences and other movements | (13,374) | 2,219 | 1,206 |
Balance at year-end | 176,719 | 183,278 | 182,073 |
Bonds and debentures | Banco Popular Espanol, S.A. | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 11,426 | ||
Redemptions and repurchases | (983) | ||
Bonds and debentures | Banif Banco Santander Totta SA | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 1,729 | ||
Bonds and debentures | Auto ABS UK Loans PLC | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 1,358 | ||
Bonds and debentures | Auto ABS DFP Master Compartment France 2013 | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 550 | ||
Bonds and debentures | Auto ABS2 FCT Compartiment 2013A | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 514 | ||
Bonds and debentures | PSA Financial Services, Spain, EFC, SA | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 401 | ||
Issues | 726 | ||
Bonds and debentures | Auto ABS FCT Compartiment 20121 | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 274 | ||
Bonds and debentures | Auto ABS FCT Compartiment 20132 | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 205 | ||
Bonds and debentures | PSA Finance Suisse, S.A. | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 200 | ||
Bonds and debentures | Banca PSA Italia S.P.A. | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 500 | ||
Bonds and debentures | PSA Bank Deutschland GmbH | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Net inclusion of entities in the Group | 497 | ||
Bonds and debentures | Santander UK plc | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 7,625 | 12,815 | 16,279 |
Redemptions and repurchases | (13,303) | (13,163) | (18,702) |
Bonds and debentures | Santander Consumer USA Holdings Inc. | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 11,242 | 11,699 | 11,330 |
Redemptions and repurchases | (10,264) | (11,166) | (7,556) |
Bonds and debentures | Banco Santander (Brasil) S.A | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 16,732 | 7,699 | 16,910 |
Redemptions and repurchases | (23,187) | (7,579) | (14,718) |
Bonds and debentures | Santander Consumer Finance, S.A. | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 2,508 | 4,567 | 5,070 |
Redemptions and repurchases | (1,618) | (4,117) | (2,838) |
Bonds and debentures | Banco Santander - Chile | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 579 | 3,363 | 1,198 |
Redemptions and repurchases | (1,442) | (516) | (2,136) |
Bonds and debentures | Santander Holding USA, Inc. | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 4,133 | 2,798 | 1,921 |
Redemptions and repurchases | (759) | (1,786) | (494) |
Bonds and debentures | Banco Santander (Mexico), S.A., Institucion De Banca Multiple, Grupo Financiero Santander Mexico | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 118 | 1,840 | 1,874 |
Redemptions and repurchases | (224) | (1,453) | (789) |
Bonds and debentures | Santander Consumer Bank AG | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 749 | ||
Bonds and debentures | Santander Consumer Bank A.S. | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 1,117 | 1,537 | 1,328 |
Redemptions and repurchases | (337) | (710) | (163) |
Bonds and debentures | SCF Rahoituspalvelut KIMI VI DAC | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 635 | ||
Bonds and debentures | Socit Financire de Banque - SOFIB (actually PSA Banque France) | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 1,032 | ||
Bonds and debentures | Auto ABS French Lease Master Compartiment 2016 | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 635 | ||
Bonds and debentures | Santander International Products, Plc. | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 588 | 371 | 402 |
Bonds and debentures | Emisora Santander Espana, S.A. Unipersonal | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 67 | 158 | 745 |
Bonds and debentures | Banco Santander Totta SA | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 1,999 | 749 | |
Redemptions and repurchases | (998) | (856) | (130) |
Bonds and debentures | Santander Bank, National Association | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 910 | ||
Redemptions and repurchases | (886) | ||
Banco Santander S.A. | Bonds and debentures | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Issues | 10,712 | 6,385 | 5,265 |
Redemptions and repurchases | € (8,973) | € (12,837) | € (18,581) |
Marketable debt securities - Gu
Marketable debt securities - Guarantees (Details) - Marketable debt securities - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Guarantees | |||
Face value of the outstanding mortgage loans and credits that support the issuance of mortgage-backed and mortgage bonds pursuant to Royal Decree 716/2009 (excluding | € 91,094 | € 56,871 | € 60,043 |
Loans eligible to cover issues of mortgage-backed securities | 59,422 | 38,426 | 39,414 |
Transfers of assets retained on balance sheet: mortgage-backed certificates and other securitized mortgage assets | 18,802 | 19,509 | 21,417 |
Covered bonds | |||
Guarantees | |||
Liabilities secured by asset-backed securities | 32,505 | 38,825 | 42,201 |
Liabilities secured by mortgage-backed securities | 4,034 | 8,561 | 14,152 |
Liabilities secured by other mortgage securities | 52,497 | 44,616 | 48,228 |
Liabilities secured by mortgage-backed bonds | 23,907 | 16,965 | 19,747 |
Liabilities secured by territorial covered bond | 1,270 | 592 | 1,567 |
Liabilities secured by financial assets | € 86,272 | € 84,033 | € 91,996 |
Other asset - backed securities personal loans average maturities | 5 years | ||
Other asset - backed securities SME's average maturities | 7 years | ||
Covered bonds | Minimum | |||
Guarantees | |||
Mortgage-backed securities average maturities | 10 years | ||
Mortgage-backed bonds average maturities | 10 years | ||
Covered bonds | Maximum | |||
Guarantees | |||
Mortgage-backed securities loan-to-value ratio (as a percent) | 80.00% | ||
Mortgage-backed bonds loan-to-value ratio for home loans (as a percent) | 80.00% | ||
Mortgage-backed bonds loan-to-value ratio for other assets loans (as a percent) | 60.00% |
Marketable debt securities - Mo
Marketable debt securities - Mortgage-backed bonds (Details) - Marketable debt securities - Covered bonds - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Guarantees | |||
Mortgage-backed bonds | € 23,907 | € 16,965 | € 19,747 |
Banco Popular Espanol, S.A. | |||
Guarantees | |||
Mortgage-backed bonds | 9,209 | ||
Santander Consumer Finance, S.A. | |||
Guarantees | |||
Mortgage-backed bonds | 500 | ||
Banco Santander S.A. | |||
Guarantees | |||
Mortgage-backed bonds | € 14,198 |
Subordinated Liabilities - by C
Subordinated Liabilities - by Currency of Issue (Details) - Financial liabilities at amortized cost, category € in Millions, £ in Millions, R$ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017BRL (R$) | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Disclosure of detailed information about financial instruments [line items] | |||||||
Outstanding issue amount | € 21,510 | € 19,902 | € 21,153 | € 17,132 | |||
Euro | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Outstanding issue amount | 11,240 | 8,044 | 8,001 | ||||
Annual interest rate (as percent) | 3.93% | ||||||
U.S. dollar | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Outstanding issue amount | $ 11,996 | 8,008 | 9,349 | 9,174 | |||
Annual interest rate (as percent) | 5.51% | ||||||
Pound sterling | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Outstanding issue amount | £ 250 | 874 | 949 | 851 | |||
Annual interest rate (as percent) | 8.94% | ||||||
Brazilian real | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Outstanding issue amount | R$ 146 | 131 | 136 | 1,878 | |||
Annual interest rate (as percent) | 7.00% | ||||||
Other currencies | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Outstanding issue amount | 1,257 | 1,424 | 1,249 | ||||
Preference Shares | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Outstanding issue amount | 404 | 413 | 449 | ||||
Preferred Securities | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Outstanding issue amount | € 8,369 | € 6,916 | € 6,749 |
Subordinated Liabilities - Acti
Subordinated Liabilities - Activity (Details) - Financial liabilities at amortized cost, category - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial instruments | |||
Balance at beginning of year | € 19,902 | € 21,153 | € 17,132 |
Net inclusion of entities in the Group | 11 | ||
Placements | 2,994 | 2,395 | 4,787 |
Redemptions and repurchases | (870) | (2,812) | (1,029) |
Exchange differences and other movements | (527) | (834) | 263 |
Balance at end of year | 21,510 | 19,902 | 21,153 |
Net issuances, redemptions and repurchases | 2,124 | ||
Interest paid in remuneration of issuances | 1,199 | ||
Banco Santander (Mexico), S.A., Institucion De Banca Multiple, Grupo Financiero Santander Mexico | |||
Financial instruments | |||
Placements | 59 | ||
Redemptions and repurchases | (64) | ||
Santander UK Group Holdings plc | |||
Financial instruments | |||
Placements | 1,377 | ||
Santander UK plc | |||
Financial instruments | |||
Placements | 521 | ||
Redemptions and repurchases | (60) | (51) | (466) |
Socit Financire de Banque - SOFIB (actually PSA Banque France) | |||
Financial instruments | |||
Placements | 78 | ||
Banco Santander (Brasil) S.A | |||
Financial instruments | |||
Redemptions and repurchases | (716) | (60) | |
Santander Consumer Finance, S.A. | |||
Financial instruments | |||
Redemptions and repurchases | (70) | ||
Bank Zachodni WBK S.A. | |||
Financial instruments | |||
Redemptions and repurchases | (237) | ||
Santander Bank, National Association | |||
Financial instruments | |||
Redemptions and repurchases | (285) | ||
Santander Holding USA, Inc. | |||
Financial instruments | |||
Redemptions and repurchases | (72) | ||
Banco Santander S.A. | |||
Financial instruments | |||
Redemptions and repurchases | (453) | (1,976) | (193) |
Banco Santander S.A. | Santander Issuances, SA Unipersonal | |||
Financial instruments | |||
Placements | € 2,894 | € 2,328 | € 2,878 |
Subordinated Liabilities - Othe
Subordinated Liabilities - Other (Details) £ / shares in Units, € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017EUR (€)item | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2017GBP (£)£ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Financial instruments | ||||||
Number of issuance of convertible preference shares | item | 3 | |||||
Issuance By Banco Santander S.A. In March 2014 [Member] | ||||||
Financial instruments | ||||||
Notional amount | € 1,500 | |||||
Interest rate (as a percent) | 6.25% | 6.25% | 6.25% | |||
Initial interest rate term | 5 years | |||||
Adjustment to reference rate, after initial interest rate period | 5.41% | 5.41% | 5.41% | |||
Reference rate, after initial interest rate period | 5-year Mid-Swap Rate | |||||
Issuance By Banco Santander S.A. In May 2014 [Member] | ||||||
Financial instruments | ||||||
Notional amount | $ | $ 1,500 | |||||
Interest rate (as a percent) | 6.375% | 6.375% | 6.375% | |||
Initial interest rate term | 5 years | |||||
Adjustment to reference rate, after initial interest rate period | 4.788% | 4.788% | 4.788% | |||
Reference rate, after initial interest rate period | 5-year Mid-Swap Rate | |||||
Issuance By Banco Santander S.A. In September 2014 [Member] | ||||||
Financial instruments | ||||||
Notional amount | € 1,500 | |||||
Interest rate (as a percent) | 6.25% | 6.25% | 6.25% | |||
Initial interest rate term | 7 years | |||||
Reprice term | 5 years | |||||
Adjustment to reference rate, after initial interest rate period | 5.64% | 5.64% | 5.64% | |||
Reference rate, after initial interest rate period | 5-year Mid-Swap Rate | |||||
Issuance By Banco Santander S.a. in April 2017 [Member] | ||||||
Financial instruments | ||||||
Notional amount | € 750 | |||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | |||
Initial interest rate term | 5 years | |||||
Adjustment to reference rate, after initial interest rate period | 6.803% | 6.803% | 6.803% | |||
Reference rate, after initial interest rate period | 5-year Mid-Swap Rate | |||||
Issuance By Banco Santander S.a. In September 2017 [Member] | ||||||
Financial instruments | ||||||
Notional amount | € 1,000 | |||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | |||
Initial interest rate term | 6 years | |||||
Adjustment to reference rate, after initial interest rate period | 4.999% | 4.999% | 4.999% | |||
Fixed interest rate | ||||||
Financial instruments | ||||||
Interest rate (as a percent) | 6.222% | 6.222% | 6.222% | |||
Floating interest rate | ||||||
Financial instruments | ||||||
Interest rate (as a percent) | 1.13% | 1.13% | 1.13% | |||
Convertible Subordinated Issue | Santander UK plc | ||||||
Financial instruments | ||||||
Outstanding issue amount | £ | £ 200 | |||||
Conversion rate | £ / shares | £ 1 | |||||
Subordinated liabilities | ||||||
Financial instruments | ||||||
Accrued interest | € 945 | € 934 | € 966 | |||
Increase in accrued interest | € 395 | € 334 | € 276 | |||
CCPSs | ||||||
Financial instruments | ||||||
Common Equity Tier 1 Ratio (CET1) maximum threshold percentage for conversion of the subordinated issue | 5.125% | 5.125% | 5.125% | |||
Tier 1 Perpetual Subordinated Notes | Banco Santander (Brasil) S.A | ||||||
Financial instruments | ||||||
Notional amount | $ | $ 1,248 | |||||
Percentage of perpetual subordinated notes acquired | 89.60% | 89.60% | 89.60% | |||
Common Equity Tier 1 Ratio (CET1) maximum threshold percentage for conversion of the subordinated issue | 5.125% | 5.125% | 5.125% | |||
Perpetual Subordinated Notes | Grupo Financiero Santander Mexico, S.A.B. De C.V. | ||||||
Financial instruments | ||||||
Notional amount | $ | $ 500 | |||||
Percentage of perpetual subordinated notes acquired | 88.20% | 88.20% | 88.20% | |||
Common Equity Tier 1 Ratio (CET1) maximum threshold percentage for conversion of the subordinated issue | 5.125% | 5.125% | 5.125% |
Other Financial Liabilities (De
Other Financial Liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other Financial Liabilities [Abstract] | |||
Trade payables | € 1,559 | € 1,230 | € 1,264 |
Clearing houses | 767 | 676 | 708 |
Tax collection accounts: Public Institutions | 3,212 | 2,790 | 2,489 |
Factoring accounts payable | 290 | 180 | 194 |
Unsettled financial transactions | 6,375 | 7,418 | 5,584 |
Other financial liabilities | 16,225 | 14,222 | 10,638 |
Other financial liabilities, total | € 28,428 | € 26,516 | € 20,877 |
Provisions - Summary (Details)
Provisions - Summary (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of provision matrix [line items] | ||||
Provisions | € 14,489 | € 14,459 | € 14,494 | € 15,376 |
Provision for pensions and other employment defined benefit obligations | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 6,345 | 6,576 | 6,356 | 7,074 |
Provision for other long term employee benefits | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 1,686 | 1,712 | 1,916 | 2,338 |
Provision for taxes and other legal contingencies | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 3,181 | 2,994 | 2,577 | |
Provision for commitments and guarantees given | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 617 | 459 | 618 | € 654 |
Other provisions member | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 2,660 | 2,718 | 3,027 | |
Country risk | Provision for commitments and guarantees given | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | € 3 | € 3 | € 2 |
Provisions - Changes (Details)
Provisions - Changes (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of provision matrix [line items] | |||
Balances at beginning of year | € 14,459 | € 14,494 | € 15,376 |
Net inclusion of entities in the Group | 1,754 | 28 | 187 |
Additions charged to income | 3,344 | 2,790 | 3,472 |
Provision for pension interest expense | 198 | 201 | 270 |
Personnel expenses | 88 | 81 | 96 |
Extraordinary provisions | 3,058 | 2,508 | 3,106 |
Addition | 4,727 | 3,651 | 4,096 |
Release | (1,669) | (1,143) | (990) |
Other additions arising from insurance contracts linked to pensions | (7) | (3) | (18) |
Changes in value recognized in equity | 369 | 1,275 | (575) |
Payments to pensioners and pre-retirees with a charge to internal provisions | (853) | (970) | (1,014) |
Benefits paid or payable | (260) | (20) | |
Insurance premiums paid | (1) | (1) | |
Payments to external funds | (273) | (852) | (146) |
Amounts used | (3,000) | (2,151) | (1,684) |
Transfer, exchange differences and other changes | (1,044) | (131) | (1,103) |
Balances at end of year | 14,489 | 14,459 | 14,494 |
Provision for pensions and other employment defined benefit obligations | |||
Disclosure of provision matrix [line items] | |||
Balances at beginning of year | 6,576 | 6,356 | 7,074 |
Net inclusion of entities in the Group | 59 | 11 | 16 |
Additions charged to income | 237 | 227 | 291 |
Provision for pension interest expense | 175 | 170 | 228 |
Personnel expenses | 82 | 73 | 85 |
Extraordinary provisions | (20) | (16) | (22) |
Addition | 2 | 24 | 9 |
Release | (22) | (40) | (31) |
Other additions arising from insurance contracts linked to pensions | (7) | (3) | (18) |
Changes in value recognized in equity | 369 | 1,275 | (575) |
Payments to pensioners and pre-retirees with a charge to internal provisions | (355) | (367) | (347) |
Benefits paid or payable | (260) | (20) | |
Insurance premiums paid | (1) | (1) | |
Payments to external funds | (273) | (852) | (146) |
Transfer, exchange differences and other changes | (1) | (50) | 62 |
Balances at end of year | 6,345 | 6,576 | 6,356 |
Provision for other long term employee benefits | |||
Disclosure of provision matrix [line items] | |||
Balances at beginning of year | 1,712 | 1,916 | 2,338 |
Net inclusion of entities in the Group | 184 | 8 | 1 |
Additions charged to income | 293 | 368 | 224 |
Provision for pension interest expense | 23 | 31 | 42 |
Personnel expenses | 6 | 8 | 11 |
Extraordinary provisions | 264 | 329 | 171 |
Addition | 264 | 377 | 217 |
Release | (48) | (46) | |
Payments to pensioners and pre-retirees with a charge to internal provisions | (498) | (603) | (667) |
Transfer, exchange differences and other changes | (5) | 23 | 20 |
Balances at end of year | 1,686 | 1,712 | 1,916 |
Provision for commitments and guarantees given | |||
Disclosure of provision matrix [line items] | |||
Balances at beginning of year | 459 | 618 | 654 |
Net inclusion of entities in the Group | 146 | (4) | 8 |
Additions charged to income | (49) | (40) | (1) |
Extraordinary provisions | (49) | (40) | (1) |
Addition | 606 | 226 | 238 |
Release | (655) | (266) | (239) |
Amounts used | (3) | (2) | |
Transfer, exchange differences and other changes | 64 | (113) | (43) |
Balances at end of year | 617 | 459 | 618 |
Other combined provisions | |||
Disclosure of provision matrix [line items] | |||
Balances at beginning of year | 5,712 | 5,604 | 5,310 |
Net inclusion of entities in the Group | 1,365 | 13 | 162 |
Additions charged to income | 2,863 | 2,235 | 2,958 |
Extraordinary provisions | 2,863 | 2,235 | 2,958 |
Addition | 3,855 | 3,024 | 3,632 |
Release | (992) | (789) | (674) |
Amounts used | (2,997) | (2,149) | (1,684) |
Transfer, exchange differences and other changes | (1,102) | 9 | (1,142) |
Balances at end of year | € 5,841 | € 5,712 | € 5,604 |
Provisions - Pensions and Simil
Provisions - Pensions and Similar Obligations (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of provision matrix [line items] | ||||
Provisions | € 14,489 | € 14,459 | € 14,494 | € 15,376 |
Provisions for defined benefits | 8,026 | 8,277 | 8,263 | |
Spain | ||||
Disclosure of provision matrix [line items] | ||||
Provisions for pre-retirements | 1,630 | 1,644 | 1,801 | |
Provisions For Pensions And Similar Obligations Member | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 8,031 | 8,288 | 8,272 | |
Provision for pensions and other employment defined benefit obligations | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 6,345 | 6,576 | 6,356 | 7,074 |
Provision for pensions and other employment defined benefit obligations | Spain | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 4,274 | 4,701 | 4,822 | |
Provision for pensions and other employment defined benefit obligations | United Kingdom | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 323 | 306 | 150 | |
Provision for pensions and other employment defined benefit obligations | Other Foreign Countries | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 1,748 | 1,569 | 1,384 | |
Provision for other long term employee benefits | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 1,686 | 1,712 | 1,916 | € 2,338 |
Provision for other long term employee benefits | Spain | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 1,643 | 1,664 | 1,817 | |
Provision for other long term employee benefits | Other Foreign Countries | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | € 43 | € 48 | € 99 |
Provisions - Spanish entities -
Provisions - Spanish entities - Post employment plans and other similar obligations (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2017EUR (€)employee | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Employee Benefits | |||
Number of employees accepted the pre-retirement and voluntary redundancy offers | employee | 1,100 | ||
Provisions recognized to cover expenses of pre-retirement and voluntary redundancy offers | € 248 | € 361 | € 217 |
Contributions to defined contribution pension funds | € 271 | 266 | 279 |
Domestic defined benefit plans [member] | Discount rate actuarial assumptions | |||
Sensitivity analysis for actuarial assumptions | |||
Decrease in actuarial assumption (as a percent) | 0.50% | ||
Increase in actuarial assumption (as a percent) | 0.50% | ||
Spain | |||
Employee Benefits | |||
Contributions to defined contribution pension funds | € 90 | € 93 | € 99 |
Actuarial assumptions | |||
Annual discount rate | 1.40% | 1.50% | |
Provision for pensions and other employment defined benefit obligations | Domestic defined benefit plans [member] | |||
Actuarial assumptions | |||
Annual discount rate | 1.38% | 1.50% | 1.75% |
Mortality tables | PERM/F-2000 | PERM/F-2000 | PERM/F-2000 |
Cumulative annual CPI growth | 1.00% | 1.00% | 1.00% |
Annual salary increase rate | 1.25% | 2.00% | 2.00% |
Annual pension increase rate | 1.00% | 1.00% | 1.00% |
Sensitivity analysis for actuarial assumptions | |||
Expected rate of return on plan assets | 1.40% | 1.50% | 1.75% |
Expected rate of return on reimbursement rights | 1.40% | 1.50% | 1.75% |
Provision for pensions and other employment defined benefit obligations | Domestic defined benefit plans [member] | Discount rate actuarial assumptions | |||
Sensitivity analysis for actuarial assumptions | |||
Increase or decrease on obligations if decrease in actuarial assumption (as a percent) | 5.37% | ||
Increase or decrease on obligations if increase in actuarial assumption (as a percent) | (4.92%) | ||
Provision for other long term employee benefits | Domestic defined benefit plans [member] | |||
Actuarial assumptions | |||
Annual discount rate | 1.40% | 1.50% | 1.75% |
Mortality tables | PERM/F-2000 | PERM/F-2000 | PERM/F-2000 |
Cumulative annual CPI growth | 1.00% | 1.00% | 1.00% |
Provision for other long term employee benefits | Domestic defined benefit plans [member] | Discount rate actuarial assumptions | |||
Sensitivity analysis for actuarial assumptions | |||
Increase or decrease on obligations if decrease in actuarial assumption (as a percent) | 1.05% | ||
Increase or decrease on obligations if increase in actuarial assumption (as a percent) | (1.03%) | ||
Provision for other long term employee benefits | Spain | Minimum | |||
Actuarial assumptions | |||
Annual benefit increase rate | 0.00% | 0.00% | 0.00% |
Provision for other long term employee benefits | Spain | Maximum | |||
Actuarial assumptions | |||
Annual benefit increase rate | 1.50% | 1.50% | 1.50% |
Banco Popular Espanol, S.A. | Provision for pensions and other employment defined benefit obligations | Domestic defined benefit plans [member] | |||
Actuarial assumptions | |||
Annual discount rate | 1.40% | ||
Annual salary increase rate | 1.75% |
Provisions - Spanish Entitie209
Provisions - Spanish Entities - Funding Status (Details) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||||
Total defined benefit expenses recognized in the consolidated income statements | € 88 | € 81 | € 96 | ||
Actuarial gains and losses on defined benefit pension plans | (157) | (1,172) | 695 | ||
Domestic defined benefit plans [member] | |||||
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||||
Actuarial gains and losses on defined benefit pension plans | 41 | 141 | 145 | ||
Post-Employment Plans | |||||
Disclosure of net defined benefit liability (asset) [line items] | |||||
To current employees | 138 | 50 | 48 | € 62 | € 50 |
Vested obligations to retired employees | 5,662 | 4,423 | 4,551 | 4,708 | 4,483 |
Other | 112 | 383 | 380 | 307 | 257 |
Present value of the obligations | 5,912 | 4,856 | 4,979 | 5,077 | 4,790 |
Fair value of plan assets | 1,640 | 157 | 157 | 167 | 157 |
Provisions - Provisions for pensions | 4,272 | 4,699 | 4,822 | 4,910 | 4,633 |
Internal provisions for pensions | 4,036 | 4,432 | 4,524 | 4,565 | 4,293 |
Insurance contracts linked to pensions | 238 | 269 | 299 | 345 | 342 |
Unrecognized net assets for pensions | (2) | (2) | (1) | (2) | |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||||
Current service cost | 16 | 11 | 12 | ||
Interest cost | 79 | 91 | 100 | ||
Expected return on insurance contracts linked to pensions | (4) | (5) | (6) | ||
Past service cost | 6 | 4 | |||
Pre-retirement cost | 6 | 4 | |||
Other | (2) | (21) | (28) | ||
Total defined benefit expenses recognized in the consolidated income statements | 89 | 88 | 86 | ||
Other similar obligations | |||||
Disclosure of net defined benefit liability (asset) [line items] | |||||
To pre-retirees | 1,647 | 1,644 | 1,801 | 2,220 | 2,149 |
Long-service bonuses and other benefits | 13 | 13 | 12 | 13 | 11 |
Other | 4 | 1 | |||
Present value of the obligations | 1,660 | 1,657 | 1,813 | 2,237 | 2,161 |
Fair value of plan assets | 17 | ||||
Provisions - Provisions for pensions | 1,643 | 1,657 | 1,813 | 2,237 | 2,161 |
Internal provisions for pensions | 1,642 | 1,657 | 1,813 | € 2,237 | € 2,161 |
Insurance contracts linked to pensions | 1 | ||||
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||||
Current service cost | 1 | 1 | 2 | ||
Interest cost | 21 | 27 | 37 | ||
Actuarial (gains)/losses recognized in the year | 13 | 6 | (8) | ||
Pre-retirement cost | 248 | 355 | 213 | ||
Other | (1) | (33) | |||
Total defined benefit expenses recognized in the consolidated income statements | € 283 | € 388 | € 211 |
Provisions - Spanish Entitie210
Provisions - Spanish Entities - Present Value of Obligations (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Actuarial losses (gains) arising from changes in financial assumptions, net defined benefit liability (asset) | € (157) | ||
Post-Employment Plans | Present value of defined benefit obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) at beginning of period | 4,856 | € 4,979 | € 5,077 |
Net inclusion of entities in the Group | 1,563 | ||
Current service cost | 16 | 11 | 12 |
Interest cost | 94 | 95 | 105 |
Pre-retirement cost | 6 | 4 | |
Effect of curtailment/settlement | (2) | (21) | (28) |
Benefits paid | (388) | (353) | (327) |
Benefits paid due to settlements | (260) | ||
Past service cost | 6 | 4 | |
Actuarial (gains)/losses | 57 | 136 | 124 |
Actuarial losses (gains) arising from changes in demographic assumptions, net defined benefit liability (asset) | (7) | 15 | 24 |
Actuarial losses (gains) arising from changes in financial assumptions, net defined benefit liability (asset) | 64 | 121 | 100 |
Exchange differences and other items | (24) | (3) | 8 |
Net defined benefit liability (asset) at end of period | 5,912 | 4,856 | 4,979 |
Other similar obligations | Present value of defined benefit obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) at beginning of period | 1,657 | 1,813 | 2,237 |
Net inclusion of entities in the Group | 202 | ||
Current service cost | 1 | 1 | 2 |
Interest cost | 21 | 27 | 37 |
Pre-retirement cost | 248 | 355 | 213 |
Effect of curtailment/settlement | (33) | ||
Benefits paid | (490) | (570) | (657) |
Benefits paid due to settlements | (1) | ||
Actuarial (gains)/losses | 13 | 6 | (8) |
Actuarial losses (gains) arising from changes in demographic assumptions, net defined benefit liability (asset) | 10 | (1) | (12) |
Actuarial losses (gains) arising from changes in financial assumptions, net defined benefit liability (asset) | 3 | 7 | 4 |
Exchange differences and other items | 8 | 25 | 23 |
Net defined benefit liability (asset) at end of period | € 1,660 | € 1,657 | € 1,813 |
Provisions - Spanish Entitie211
Provisions - Spanish Entities - Fair Value Of Plan Assets And Insurance Contracts Linked To Pensions (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Post-Employment Plans | |||
Insurance contracts linked to pensions | |||
Fair value of insurance contracts linked to pensions at beginning of year | € 269 | € 299 | € 345 |
Expected return on insurance contracts linked to pensions | 4 | 5 | 6 |
Benefits paid | (29) | (32) | (34) |
Paid premiums | 1 | ||
Actuarial gains/ (losses) | (7) | (3) | (18) |
Fair value of insurance contracts linked to pensions at end of year | 238 | 269 | 299 |
Other similar obligations | |||
Insurance contracts linked to pensions | |||
Incorporation of Group companies, net | 2 | ||
Benefits paid | (1) | ||
Fair value of insurance contracts linked to pensions at end of year | 1 | ||
Plan Assets | Post-Employment Plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Fair value of plan assets at beginning of year | 157 | 157 | 167 |
Net inclusion of entities in the Group | (1,507) | ||
Expected return on plan assets | 15 | 4 | 5 |
Benefits paid | (58) | (8) | (17) |
Contributions/(surrenders) | 3 | 9 | 1 |
Actuarial gains/(losses) | 24 | (2) | (3) |
Exchange differences and other items | (8) | (3) | 4 |
Fair value of plan assets at end of year | 1,640 | € 157 | € 157 |
Plan Assets | Other similar obligations | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net inclusion of entities in the Group | (18) | ||
Benefits paid | (1) | ||
Fair value of plan assets at end of year | € 17 |
Provisions - Spanish Entitie212
Provisions - Spanish Entities - Estimated Benefit Payable (Details) - Domestic defined benefit plans [member] € in Millions | Dec. 31, 2017EUR (€) |
Within one year | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | € 808 |
2,019 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 703 |
2,020 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 610 |
2,021 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 523 |
2,022 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 449 |
2023 to 2027 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | € 1,579 |
Provisions - United Kingdom ent
Provisions - United Kingdom entities - Post employment plans and other similar obligations (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Benefits | |||
Contributions to defined contribution pension funds | € 271 | € 266 | € 279 |
United Kingdom | |||
Employee Benefits | |||
Contributions to defined contribution pension funds | € 82 | € 81 | € 90 |
Actuarial assumptions | |||
Annual discount rate | 2.49% | 2.79% | |
Cumulative annual CPI growth | 3.15% | 3.12% | |
United Kingdom | Foreign defined benefit plans [member] | |||
Actuarial assumptions | |||
Annual discount rate | 2.49% | 2.79% | 3.74% |
Mortality tables | 108/86 S2 Light | 116/98 S1 Light TMC | 116/98 S1 Light TMC |
Cumulative annual CPI growth | 3.15% | 3.12% | 2.98% |
Annual salary increase rate | 1.00% | 1.00% | 1.00% |
Annual pension increase rate | 2.94% | 2.92% | 2.83% |
United Kingdom | Foreign defined benefit plans [member] | Discount rate actuarial assumptions | |||
Sensitivity analysis for actuarial assumptions | |||
Decrease in actuarial assumption (as a percent) | 0.50% | ||
Increase in actuarial assumption (as a percent) | 0.50% | ||
Increase or decrease on obligations if decrease in actuarial assumption (as a percent) | 9.50% | ||
Increase or decrease on obligations if increase in actuarial assumption (as a percent) | (9.50%) | ||
United Kingdom | Foreign defined benefit plans [member] | Inflation Rate Assumption | |||
Sensitivity analysis for actuarial assumptions | |||
Decrease in actuarial assumption (as a percent) | 0.50% | ||
Increase in actuarial assumption (as a percent) | 0.50% | ||
Increase or decrease on obligations if decrease in actuarial assumption (as a percent) | (6.29%) | ||
Increase or decrease on obligations if increase in actuarial assumption (as a percent) | 6.29% |
Provisions - United Kingdom 214
Provisions - United Kingdom Entities - Funding Status (Details) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||||
Total defined benefit expenses recognized in the consolidated income statements | € 88 | € 81 | € 96 | ||
Actuarial gains and losses on defined benefit pension plans | 157 | 1,172 | (695) | ||
United Kingdom | Foreign defined benefit plans [member] | |||||
Disclosure of net defined benefit liability (asset) [line items] | |||||
Present value of the obligations | 13,056 | 12,955 | 12,271 | € 11,959 | € 10,120 |
Fair value of plan assets | 13,239 | 13,118 | 12,880 | 12,108 | 9,455 |
Provisions - Provisions for pensions | (183) | (163) | (609) | (149) | 665 |
Internal provisions for pensions | 323 | 306 | 150 | 256 | 806 |
Net assets for pensions | (506) | (469) | (759) | € (405) | € (141) |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||||
Current service cost | 36 | 31 | 39 | ||
Interest cost, net | (6) | (22) | (5) | ||
Total defined benefit expenses recognized in the consolidated income statements | 30 | 9 | 34 | ||
Actuarial gains and losses on defined benefit pension plans | € (121) | € (621) | € 435 |
Provisions - United Kingdom 215
Provisions - United Kingdom Entities - Present Value of Obligations (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Financial actuarial (gains)/losses | € (157) | ||
United Kingdom | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Financial actuarial (gains)/losses | (121) | ||
Foreign defined benefit plans [member] | United Kingdom | Present value of defined benefit obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) at beginning of period | 12,955 | € 12,271 | € 11,959 |
Incorporation of Group companies, net | 51 | ||
Current service cost | 36 | 31 | 39 |
Interest cost | 347 | 407 | 466 |
Benefits paid | (445) | (332) | (342) |
Contributions made by employees | 20 | 20 | 25 |
Actuarial (gains)/losses | 602 | 2,315 | (656) |
Demographic actuarial (gains)/losses | (184) | (59) | (364) |
Financial actuarial (gains)/losses | 786 | 2,374 | (292) |
Exchange differences and other items | (459) | (1,757) | 729 |
Net defined benefit liability (asset) at end of period | € 13,056 | € 12,955 | € 12,271 |
Provisions - United Kingdom 216
Provisions - United Kingdom Entities - Fair Value Of Plan Assets and Plan Assets Allocation (Details) - United Kingdom - Foreign defined benefit plans [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity instruments | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets as a percentage of total plan assets | 20.00% | 25.00% | 23.00% |
Debt instruments | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets as a percentage of total plan assets | 46.00% | 49.00% | 53.00% |
Investment property [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets as a percentage of total plan assets | 13.00% | 12.00% | 15.00% |
Other assets Member | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets as a percentage of total plan assets | 21.00% | 14.00% | 9.00% |
Plan Assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Fair value of plan assets at beginning of year | € 13,118 | € 12,880 | € 12,108 |
Incorporation of Group companies, net | 66 | ||
Expected return on plan assets | 353 | 429 | 471 |
Benefits paid | (445) | (332) | (342) |
Contributions | 208 | 304 | 59 |
Actuarial gains/(losses) | 481 | 1,694 | (222) |
Exchange differences and other items | (476) | (1,857) | 740 |
Fair value of plan assets at end of year | € 13,239 | € 13,118 | € 12,880 |
Provisions - United Kingdom 217
Provisions - United Kingdom Entities - Estimated Benefit Payable (Details) - United Kingdom - Foreign defined benefit plans [member] € in Millions | Dec. 31, 2017EUR (€) |
Within one year | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | € 284 |
2,019 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 285 |
2,020 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 304 |
2,021 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 327 |
2,022 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 352 |
2023 to 2027 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | € 2,065 |
Provisions - Other Foreign Subs
Provisions - Other Foreign Subsidiaries - Post employment plans and other similar obligations (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Benefits | |||
Contributions to defined contribution pension funds | € 271 | € 266 | € 279 |
Other Foreign Countries | |||
Employee Benefits | |||
Contributions to defined contribution pension funds | € 99 | € 92 | € 90 |
Other Foreign Countries | Foreign defined benefit plans [member] | Discount rate actuarial assumptions | |||
Sensitivity analysis for actuarial assumptions | |||
Decrease in actuarial assumption (as a percent) | 0.50% | ||
Increase in actuarial assumption (as a percent) | 0.50% | ||
Increase or decrease on obligations if decrease in actuarial assumption (as a percent) | 5.14% | ||
Increase or decrease on obligations if increase in actuarial assumption (as a percent) | (5.14%) | ||
Brazil | Foreign defined benefit plans [member] | |||
Actuarial assumptions | |||
Mortality tables | AT2000 | ||
Cumulative annual CPI growth | 4.00% | ||
Minimum | Brazil | Foreign defined benefit plans [member] | |||
Actuarial assumptions | |||
Annual discount rate | 9.53% | ||
Maximum | Brazil | Foreign defined benefit plans [member] | |||
Actuarial assumptions | |||
Annual discount rate | 9.65% |
Provisions - Other Foreign S219
Provisions - Other Foreign Subsidiaries - Funding Status (Details) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||||
Total defined benefit expenses recognized in the consolidated income statements | € 88 | € 81 | € 96 | ||
Actuarial gains and losses on defined benefit pension plans | (157) | (1,172) | 695 | ||
Other Foreign Countries | Foreign defined benefit plans [member] | |||||
Disclosure of net defined benefit liability (asset) [line items] | |||||
Present value of the obligations | 9,534 | 9,876 | 8,337 | € 10,324 | € 9,289 |
Charge to the participants | 193 | 153 | 133 | 151 | 133 |
Fair value of plan assets | 7,927 | 8,445 | 7,008 | 8,458 | 7,938 |
Provisions - Provisions for pensions | 1,414 | 1,278 | 1,196 | 1,715 | 1,218 |
Internal provisions for pensions | 1,787 | 1,613 | 1,478 | 1,999 | 1,512 |
Net assets for pensions | (98) | (52) | (28) | (8) | (8) |
Unrecognized net assets for pensions | (275) | (283) | (254) | € (276) | € (286) |
Amounts recognized in the consolidated income statements in relation to the aforementioned defined benefit obligations | |||||
Current service cost | 35 | 38 | 43 | ||
Interest cost, net | 104 | 105 | 138 | ||
Actuarial (gains)/losses recognized in the year | 1 | (9) | (1) | ||
Past service cost | 3 | 18 | 1 | ||
Pre-retirement cost | (9) | ||||
Other | (19) | (37) | (1) | ||
Total defined benefit expenses recognized in the consolidated income statements | 124 | 106 | 180 | ||
Actuarial gains and losses on defined benefit pension plans | 207 | € 513 | € (285) | ||
Brazil | Foreign defined benefit plans [member] | |||||
Disclosure of net defined benefit liability (asset) [line items] | |||||
Present value of the obligations | 7,046 | ||||
Charge to the participants | 193 | ||||
Fair value of plan assets | 6,188 | ||||
Provisions - Provisions for pensions | 665 | ||||
Internal provisions for pensions | 994 | ||||
Net assets for pensions | (54) | ||||
Unrecognized net assets for pensions | € (275) |
Provisions - Other Foreign S220
Provisions - Other Foreign Subsidiaries - Present Value of Obligations (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Financial actuarial (gains)/losses | € (157) | ||
Other Foreign Countries | Foreign defined benefit plans [member] | Present value of defined benefit obligation | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Net defined benefit liability (asset) at beginning of period | 9,876 | € 8,337 | € 10,324 |
Net inclusion of entities in the Group | 165 | 171 | 26 |
Current service cost | 35 | 38 | 43 |
Interest cost | 807 | 802 | 778 |
Pre-retirement cost | (9) | ||
Effect of curtailment/settlement | (19) | (37) | (1) |
Benefits paid | (716) | (690) | (639) |
Benefits paid due to settlements | (24) | (1,352) | |
Contributions made by employees | 6 | 8 | 8 |
Past service cost | 3 | 18 | 1 |
Actuarial (gains)/losses | 404 | 1,269 | (271) |
Demographic actuarial (gains)/losses | (140) | 439 | 393 |
Financial actuarial (gains)/losses | 544 | 830 | (664) |
Exchange differences and other items | (1,003) | 1,321 | (1,932) |
Net defined benefit liability (asset) at end of period | € 9,534 | € 9,876 | € 8,337 |
Provisions - Other Foreign S221
Provisions - Other Foreign Subsidiaries - Fair Value Of Plan Assets and Plan Assets Allocation (Details) - Other Foreign Countries - Foreign defined benefit plans [member] - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity instruments | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets as a percentage of total plan assets | 6.00% | 7.00% | 12.00% |
Debt instruments | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets as a percentage of total plan assets | 84.00% | 88.00% | 84.00% |
Investment property [Member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets as a percentage of total plan assets | 3.00% | 1.00% | 1.00% |
Other assets Member | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets as a percentage of total plan assets | 7.00% | 4.00% | 3.00% |
Plan Assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Fair value of plan assets at beginning of year | € 8,445 | € 7,008 | € 8,458 |
Net inclusion of entities in the Group | 166 | 154 | 9 |
Expected return on plan assets | 732 | 732 | 667 |
Benefits paid | (683) | (637) | (594) |
Benefits paid due to settlements | (24) | (1,328) | |
Contributions | 94 | 559 | 109 |
Liquidation gains/(losses) | 1 | ||
Actuarial gains/(losses) | 203 | 687 | 43 |
Exchange differences and other items | (1,006) | 1,270 | (1,685) |
Fair value of plan assets at end of year | € 7,927 | € 8,445 | € 7,008 |
Provisions - Other Foreign S222
Provisions - Other Foreign Subsidiaries - Estimated Benefit Payable (Details) - Other Foreign Countries - Foreign defined benefit plans [member] € in Millions | Dec. 31, 2017EUR (€) |
Within one year | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | € 620 |
2,019 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 636 |
2,020 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 653 |
2,021 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 670 |
2,022 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | 689 |
2023 to 2027 | |
Disclosure of net defined benefit liability (asset) [line items] | |
Estimated future benefit payable | € 3,689 |
Provisions - Provisions for Tax
Provisions - Provisions for Taxes and Other Legal Contingencies and Other Provisions (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of provision matrix [line items] | ||||
Provisions | € 14,489 | € 14,459 | € 14,494 | € 15,376 |
Other combined provisions | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 5,841 | 5,712 | 5,604 | € 5,310 |
Provisions for taxes | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 1,006 | 1,074 | 997 | |
Provisions for other legal proceedings | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 1,307 | 1,005 | 999 | |
Provision for customer remediation | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 885 | 685 | 916 | |
Regulatory Framework-Related Provisions | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 101 | 253 | 308 | |
Provision for restructuring | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 360 | 472 | 404 | |
Other | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 1,314 | 1,308 | 1,399 | |
Spain | Other combined provisions | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 1,666 | 1,148 | 1,332 | |
Spain | Provision for customer remediation | ||||
Disclosure of provision matrix [line items] | ||||
Additional provisions charged to income statement | 223 | |||
Spain | Provision for restructuring | ||||
Disclosure of provision matrix [line items] | ||||
Additional provisions charged to income statement | 425 | 244 | ||
Offset in part by the use of the available provisions | 162 | 206 | ||
European Union (excluding Spain) | Other combined provisions | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 1,127 | 1,300 | 1,766 | |
Other Foreign Countries Not Including Countries In EU | Other combined provisions | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 3,048 | 3,264 | 2,506 | |
Brazil | Other combined provisions | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 2,504 | 2,715 | 2,016 | |
Brazil | Provisions for employment-related proceedings | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 868 | 915 | 581 | |
Additional provisions charged to income statement | 505 | 395 | 370 | |
Offset in part by the use of the available provisions | 388 | 284 | 241 | |
Brazil | Provisions for other legal proceedings | ||||
Disclosure of provision matrix [line items] | ||||
Additional provisions charged to income statement | 355 | 201 | 289 | |
Offset in part by the use of the available provisions | 203 | 239 | 273 | |
United Kingdom | Provision for customer remediation | ||||
Disclosure of provision matrix [line items] | ||||
Additional provisions charged to income statement | 164 | 179 | 689 | |
Offset in part by the use of the available provisions | 277 | 355 | 227 | |
United Kingdom | Regulatory Framework-Related Provisions | ||||
Disclosure of provision matrix [line items] | ||||
Additional provisions charged to income statement | 106 | 173 | 243 | |
Offset in part by the use of the available provisions | 151 | 169 | 233 | |
United Kingdom | Provision for restructuring | ||||
Disclosure of provision matrix [line items] | ||||
Additional provisions charged to income statement | 44 | 129 | 56 | |
Offset in part by the use of the available provisions | 50 | € 49 | € 41 | |
Poland | Provision for customer remediation | ||||
Disclosure of provision matrix [line items] | ||||
Additional provisions charged to income statement | 125 | |||
Poland | Regulatory Framework-Related Provisions | ||||
Disclosure of provision matrix [line items] | ||||
Additional provisions charged to income statement | € 99 |
Provisions - Litigation and Oth
Provisions - Litigation and Other Matters (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2017EUR (€)company | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Disclosure of provision matrix [line items] | ||||
Provisions | € 14,489 | € 14,459 | € 14,494 | € 15,376 |
Banco Santander (Brasil) S.A. And Other Group Companies In Brazil | Legal Action Filed Relating To Increase In Rate Of Brazilian Social Contribution Tax On Net Income Member | ||||
Disclosure of provision matrix [line items] | ||||
Social contribution tax rate on net income before increased | 9.00% | |||
Social contribution tax rate on net income after increased | 15.00% | |||
Banco Santander (Brasil) S.A. And Other Group Companies In Brazil | Legal Case Appeal Relating To Deduction Of Expenses In Income Tax (IRPJ and CSLL) | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | € 0 | |||
Banco Santander (Brasil) S.A. And Other Group Companies In Brazil | Legal Case Relating To Involved In Administrative And Legal Proceedings Against Several Municipalities | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | € 0 | |||
Santander Distribuidora De Titulos E Valores Mobiliarios Ltda. And Banco Santander (Brasil), S.A. | Legal Case Relating To Provisional Tax On Financial Movements (CPMF) | ||||
Disclosure of provision matrix [line items] | ||||
Number of entities appealed | company | 2 | |||
Banco Santander (Brasil) S.A | Legal Case Appeal Relating To Deduction Of Expenses In Income Tax (IRPJ and CSLL) | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | € 0 | |||
Banco Santander (Brasil) S.A | Legal Case Relating To Tax On Capital Gain Obtained In Brazil By Sterrebeeck B.V. | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 0 | |||
Banco Santander (Brasil) S.A | Legal Case Relating To Tax Deductibility Of Amortization Of Goodwill Arising On Acquisition [Member] | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 0 | |||
Banco Santander And Other Companies | Legal Case Relating To Investigation Into Illegal State Aid To The Kingdom Of Spain [Member] | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 0 | |||
Other combined provisions | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | 5,841 | 5,712 | 5,604 | € 5,310 |
Provisions for taxes | ||||
Disclosure of provision matrix [line items] | ||||
Provisions | € 1,006 | € 1,074 | € 997 |
Provisions - Other Litigation (
Provisions - Other Litigation (Details) € in Millions, £ in Millions | 12 Months Ended | |||||||
Dec. 31, 2017GBP (£)companyitem | Dec. 31, 2017EUR (€)companyitem | Dec. 31, 2016GBP (£) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Feb. 13, 2018EUR (€) | Dec. 31, 2017EUR (€)item | Dec. 31, 2014EUR (€) | |
Disclosure of provision matrix [line items] | ||||||||
Provisions | € 14,459 | € 14,494 | € 14,489 | € 15,376 | ||||
Main factors to calculate the provisions and the future forecast | ||||||||
Extraordinary provision made | € 4,727 | 3,651 | 4,096 | |||||
Extraordinary provision used | € 1,669 | 1,143 | 990 | |||||
The Plevin V. Paragon Personal Finance Ltd Case (Plevin) Member | ||||||||
Disclosure of provision matrix [line items] | ||||||||
Extension period per final rules | 2 years | 2 years | ||||||
"Planos Economicos" | ||||||||
Main factors to calculate the provisions and the future forecast | ||||||||
Number of methods of calculating economic losses that the court has excluded from the case | item | 1 | 1 | ||||||
The Intervention Of Alleged Fraud Of Bernard L. Madoff Investment Securities LLC | ||||||||
Main factors to calculate the provisions and the future forecast | ||||||||
The amount of subfund to cover the exposure of customers of the Group | 2,330 | |||||||
The amount of subfund to cover the exposure of institutional investors and international private banking customers | 2,010 | |||||||
The amount of subfund to cover the exposure of investment portfolios of the Group's private banking customers in Spain | € 320 | |||||||
Administrative Investigation, Possible Collusion, Hedge For Syndicated Loans [Member] | ||||||||
Main factors to calculate the provisions and the future forecast | ||||||||
Fine imposed, all parties | € 91 | |||||||
Fine imposed, Santander portiion | € 23.9 | |||||||
Floor Clauses | Banco Popular Espanol, S.A. | ||||||||
Main factors to calculate the provisions and the future forecast | ||||||||
Extraordinary provision made | € 223 | |||||||
Extraordinary provision used | 238 | |||||||
Maximum risk | € 900 | |||||||
Maximum risk scenario (as a percent) | 50 | 50 | ||||||
Litigation Related To Acquisition [Member] | Banco Popular Espanol, S.A. | ||||||||
Main factors to calculate the provisions and the future forecast | ||||||||
Number of procedures filed before the European Union Court | item | 103 | 103 | ||||||
Number of procedures filed before the Spanish Audienciia Nacional | item | 261 | 261 | ||||||
Santander UK plc | The Plevin V. Paragon Personal Finance Ltd Case (Plevin) Member | ||||||||
Disclosure of provision matrix [line items] | ||||||||
Number of years to be extended to file a claim as set as limitation period | 2 years | 2 years | ||||||
Banco Santander (Brasil) S.A | "Planos Economicos" | ||||||||
Disclosure of provision matrix [line items] | ||||||||
Number of years to be extended to file a claim as set as limitation period | 5 years | 5 years | ||||||
Main factors to calculate the provisions and the future forecast | ||||||||
Number of years to file a claim as sought by a claimant | 20 years | 20 years | ||||||
Number of proceedings have been brought at the High Court Of Justice (STJ) and the Federal Supreme Court (STF) | item | 2 | 2 | ||||||
Banif Banco Santander Totta SA | Legal Case To Request Court Judgment On The Validity Of The Swaps | ||||||||
Main factors to calculate the provisions and the future forecast | ||||||||
Number of other public companies as other parties in the transaction | company | 4 | 4 | ||||||
Other combined provisions | ||||||||
Disclosure of provision matrix [line items] | ||||||||
Provisions | 5,712 | 5,604 | € 5,841 | € 5,310 | ||||
Main factors to calculate the provisions and the future forecast | ||||||||
Average compensation by accepted claim | £ 1,378 | 1,222 | ||||||
Extraordinary provision made | € 3,855 | 3,024 | 3,632 | |||||
Extraordinary provision used | 992 | 789 | 674 | |||||
Provision for customer remediation | ||||||||
Disclosure of provision matrix [line items] | ||||||||
Provisions | 685 | € 916 | € 885 | |||||
Main factors to calculate the provisions and the future forecast | ||||||||
Claims received | item | 1,623,000 | 1,623,000 | ||||||
Claims received for proactive contact | item | 487,000 | 487,000 | ||||||
Percentage response to complaints received by proactive contact | 54.00% | 54.00% | ||||||
Percentage of claims accepted by the Entity | 47.00% | 47.00% | ||||||
Average compensation by accepted claim | £ | £ 1,378 | |||||||
Claims to be received as forecast | item | 660,000 | 660,000 | ||||||
Claims to be received as forecast for proactive contacts | item | 127,000 | 127,000 | ||||||
Future forecast of percentage response to complaints received by proactive contact | 100.00% | 100.00% | ||||||
Future forecast of percentage of claims accepted by the Entity | 68.00% | 68.00% | ||||||
Future forecast of average compensation by accepted claim | £ | £ 564 | |||||||
The reasonably possible increase or decrease in the number of claims received | item | 25,000 | 25,000 | ||||||
The increase (decrease) in provision that would have been caused by an increase or decrease in a assumption of number of claims received | £ | £ 9 | |||||||
The reasonably possible increase or decrease in the number of claims received for proactive contact | item | 25,000 | 25,000 | ||||||
The increase (decrease) in provision that would have been caused by an increase or decrease in a assumption of number of claims received for proactive contact | £ | £ 5 | |||||||
The reasonably possible increase or decrease in the percentage response to complaints received by proactive contact | 1.00% | 1.00% | ||||||
The increase (decrease) in provision that would have been caused by an increase or decrease in a assumption of percentage response to complaints received by proactive contact | £ | £ 0.3 | |||||||
The reasonably possible increase or decrease in the percentage of claims accepted by the entity | 1.00% | 1.00% | ||||||
The increase (decrease) in provision that would have been caused by an increase or decrease in a assumption of percentage of claims accepted by the entity | £ | £ 2.6 | |||||||
The reasonably possible increase or decrease in average compensation by accepted claim | £ | 100 | |||||||
The increase (decrease) in provision that would have been caused by an increase or decrease in a assumption of average compensation by accepted claim | £ | 50 | |||||||
Provision For Customer Remediation PPI Redress And Related Costs | Santander UK plc | ||||||||
Disclosure of provision matrix [line items] | ||||||||
Additional provisions charged to income statement | 109 | € 124 | £ 144 | 140 | ||||
Provisions | £ 356 | € 401 | ||||||
Provision for customer remediation based on August 2016 FCA papers | Santander UK plc | ||||||||
Disclosure of provision matrix [line items] | ||||||||
Additional provisions charged to income statement | 114 | 140 | ||||||
Provision for customer remediation based on past business review | Santander UK plc | ||||||||
Disclosure of provision matrix [line items] | ||||||||
Additional provisions charged to income statement | 32 | € 37 | ||||||
Provision for customer remediation portfolio based on past business review | Santander UK plc | ||||||||
Disclosure of provision matrix [line items] | ||||||||
Additional provisions charged to income statement | £ | £ 30 |
Other Liabilities (Details)
Other Liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Miscellaneous liabilities [abstract] | |||
Transactions in transit | € 811 | € 994 | € 744 |
Accrued expenses and deferred income | 6,790 | 6,507 | 6,562 |
Other | 4,990 | 3,569 | 2,915 |
Other liabilities | € 12,591 | € 11,070 | € 10,221 |
Tax matters - Years open for re
Tax matters - Years open for review by the tax authorities (Details) € in Millions | 12 Months Ended |
Dec. 31, 2015EUR (€) | |
Provision for taxes and other legal contingencies | |
Disclosure of other provisions [line items] | |
Provisions recognised | € 0 |
Tax matters - Reconciliation (D
Tax matters - Reconciliation (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated profit (loss) before tax | |||
Tax rate applicable in Spain (as a percent) | 30.00% | 30.00% | 30.00% |
From continuing operations | € 12,091 | € 10,768 | € 9,547 |
Consolidated profit (loss) before tax | 12,091 | 10,768 | 9,547 |
Income tax at tax rate applicable in Spain | 3,628 | 3,230 | 2,864 |
By the effect of application of the various tax rates applicable in each country | 539 | 312 | 158 |
Effect of profit or loss of associates and joint ventures | (211) | (133) | (111) |
Effect of deduction of goodwill in Brazil | (164) | (184) | (133) |
Effect of reassessment of deferred taxes | (282) | (20) | 30 |
Reversal of tax liabilities | (1,071) | ||
Permanent differences | 374 | 77 | 476 |
Current income tax | € 3,884 | € 3,282 | € 2,213 |
Effective tax rate (as a percent) | 32.12% | 30.48% | 23.18% |
Current taxes | € 3,777 | € 1,493 | € 4,070 |
Deferred taxes | (107) | (1,789) | 1,857 |
Taxes paid in the year | € 4,137 | 2,872 | 2,205 |
Brazil | |||
Consolidated profit (loss) before tax | |||
Tax rate applicable in Spain (as a percent) | 25.00% | ||
By the effect of application of the various tax rates applicable in each country | € 656 | 396 | 300 |
Effective tax rate (as a percent) | 45.00% | ||
United Kingdom | |||
Consolidated profit (loss) before tax | |||
By the effect of application of the various tax rates applicable in each country | € (78) | (63) | (146) |
United States | |||
Consolidated profit (loss) before tax | |||
By the effect of application of the various tax rates applicable in each country | 68 | 94 | 156 |
Chile | |||
Consolidated profit (loss) before tax | |||
By the effect of application of the various tax rates applicable in each country | € (48) | € (54) | € (60) |
Tax matters - Tax recognized in
Tax matters - Tax recognized in equity (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other comprehensive income | |||
Tax recognized in equity, Items not reclassified to profit or loss | € 60 | € 364 | € (231) |
Actuarial gains or (-) losses on defined benefit pension plans | 60 | 364 | (231) |
Tax recognized in equity, Items that may be reclassified to profit or loss | (694) | 448 | |
Cash flow hedges | 108 | (136) | 51 |
Financial assets available for sale | (97) | (552) | 384 |
Other recognized income and expense of investments in subsidiaries, joint ventures and associates | (11) | (6) | 13 |
Total | 60 | (330) | 217 |
Debt instruments | |||
Other comprehensive income | |||
Financial assets available for sale | (366) | (368) | 418 |
Equity instruments | |||
Other comprehensive income | |||
Financial assets available for sale | € 269 | € (184) | € (34) |
Tax matters - Deferred taxes (D
Tax matters - Deferred taxes (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | € 23,210 | € 21,264 | € 22,045 | € 22,164 |
Tax liabilities | 4,837 | 5,694 | 5,565 | 4,527 |
Monetizable | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 11,046 | 9,649 | 8,887 | |
Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 12,164 | 11,615 | 13,158 | |
Spain | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 10,494 | |||
Spain | Banco Popular Espanol, S.A. | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | € 3,340 | |||
Spain | Monetizable | ||||
Detail of deferred tax assets and liabilities | ||||
Annual fee to maintain the monetized portion of deferred taxes (as a percent) | 1.50% | |||
Italy | Monetizable | ||||
Detail of deferred tax assets and liabilities | ||||
Annual fee to maintain the monetized portion of deferred taxes (as a percent) | 1.50% | |||
Brazil | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | € 5,591 | |||
United States | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 1,205 | |||
Tax losses and tax credits | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 4,457 | 4,934 | 4,808 | 5,650 |
Tax losses and tax credits | Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 4,457 | 4,934 | 4,808 | |
Tax losses and tax credits | Spain | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 3,104 | |||
Tax losses and tax credits | Brazil | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 375 | |||
Tax losses and tax credits | United States | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 895 | |||
Temporary differences | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 18,753 | 16,330 | 17,237 | 16,514 |
Tax liabilities | 4,837 | 5,694 | 5,565 | 4,527 |
Temporary differences | Monetizable | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 11,046 | 9,649 | 8,887 | € 8,444 |
Temporary differences | Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | € 7,707 | 6,681 | 8,351 | |
Temporary differences | Spain | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax asset recovery period | 15 years | |||
Temporary differences | Spain | Monetizable | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | € 5,874 | |||
Temporary differences | Spain | Monetizable | Banco Popular Espanol, S.A. | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 2,036 | |||
Portion already submitted for conversion | 486 | |||
Temporary differences | Spain | Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | € 1,516 | |||
Temporary differences | Brazil | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax asset recovery period | 10 years | |||
Temporary differences | Brazil | Monetizable | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | € 2,939 | |||
Temporary differences | Brazil | Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 2,277 | |||
Temporary differences | United States | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 310 | |||
Temporary differences | Mexico | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | € 480 | |||
Deferred tax asset recovery period | 3 years | |||
Non-deductible provisions | Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | € 2,336 | 1,645 | 1,631 | |
Valuation of financial instruments | ||||
Detail of deferred tax assets and liabilities | ||||
Tax liabilities | 1,207 | 1,105 | 896 | |
Valuation of financial instruments | Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 530 | 1,042 | 2,231 | |
Loan losses | Monetizable | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 7,461 | 6,082 | 5,330 | |
Loan losses | Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 1,159 | 940 | 827 | |
Pensions | Monetizable | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 3,585 | 3,567 | 3,557 | |
Pensions | Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 723 | 641 | 475 | |
Valuation of tangible and intangible assets | ||||
Detail of deferred tax assets and liabilities | ||||
Tax liabilities | 1,256 | 1,916 | 1,727 | |
Valuation of tangible and intangible assets | Other | ||||
Detail of deferred tax assets and liabilities | ||||
Deferred tax assets | 1,077 | 537 | 686 | |
Investments in Group companies | ||||
Detail of deferred tax assets and liabilities | ||||
Tax liabilities | € 808 | € 1,265 | € 1,249 |
Tax matters - Changes in Tax as
Tax matters - Changes in Tax assets and liabilities (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
The changes in Tax assets - Deferred and Tax Liabilities - Deferred | |||
Deferred tax assets - Balances at the beginning of the period | € 21,264 | € 22,045 | € 22,164 |
(Charge)/Credit to income | (675) | (1,311) | 2,330 |
Foreign currency balance translation differences and other items | (756) | 1,355 | (2,831) |
(Charge)/Credit to asset and liability valuation adjustments | (1) | (551) | 356 |
Acquisitions for the year (net) | 3,378 | (274) | 26 |
Deferred tax assets - Balances at the end of the period | 23,210 | 21,264 | 22,045 |
Deferred tax liabilities - Balances at the beginning of the period | (5,694) | (5,565) | (4,527) |
(Charge)/Credit to income | 568 | (478) | (473) |
Foreign currency balance translation differences and other items | 414 | 98 | (200) |
(Charge)/Credit to asset and liability valuation adjustments | 19 | (26) | (73) |
Acquisitions for the year (net) | (144) | 277 | (292) |
Deferred tax liabilities - Balances at the end of the period | (4,837) | (5,694) | (5,565) |
Balances at the beginning of the period | 15,570 | 16,480 | 17,637 |
(Charge)/Credit to income | (107) | (1,789) | 1,857 |
Foreign currency balance translation differences and other items | (342) | 1,453 | (3,031) |
(Charge)/Credit to asset and liability valuation adjustments | 18 | (577) | 283 |
Acquisitions for the year (net) | 3,234 | 3 | (266) |
Balances at the end of the period | 18,373 | 15,570 | 16,480 |
Deferred tax assets not recognized | 7,550 | ||
Tax benefits not recognized | 370 | ||
Monetizable | |||
The changes in Tax assets - Deferred and Tax Liabilities - Deferred | |||
Deferred tax assets - Balances at the beginning of the period | 9,649 | 8,887 | |
Deferred tax assets - Balances at the end of the period | 11,046 | 9,649 | 8,887 |
Tax losses and tax credits | |||
The changes in Tax assets - Deferred and Tax Liabilities - Deferred | |||
Deferred tax assets - Balances at the beginning of the period | 4,934 | 4,808 | 5,650 |
(Charge)/Credit to income | (279) | 194 | (449) |
Foreign currency balance translation differences and other items | (205) | 110 | (399) |
Acquisitions for the year (net) | 7 | (178) | 6 |
Deferred tax assets - Balances at the end of the period | 4,457 | 4,934 | 4,808 |
Temporary differences | |||
The changes in Tax assets - Deferred and Tax Liabilities - Deferred | |||
Deferred tax assets - Balances at the beginning of the period | 16,330 | 17,237 | 16,514 |
(Charge)/Credit to income | (396) | (1,505) | 2,779 |
Foreign currency balance translation differences and other items | (551) | 1,245 | (2,432) |
(Charge)/Credit to asset and liability valuation adjustments | (1) | (551) | 356 |
Acquisitions for the year (net) | 3,371 | (96) | 20 |
Deferred tax assets - Balances at the end of the period | 18,753 | 16,330 | 17,237 |
Deferred tax liabilities - Balances at the beginning of the period | (5,694) | (5,565) | (4,527) |
(Charge)/Credit to income | 568 | (478) | (473) |
Foreign currency balance translation differences and other items | 414 | 98 | (200) |
(Charge)/Credit to asset and liability valuation adjustments | 19 | (26) | (73) |
Acquisitions for the year (net) | (144) | 277 | (292) |
Deferred tax liabilities - Balances at the end of the period | (4,837) | (5,694) | (5,565) |
Temporary differences | Monetizable | |||
The changes in Tax assets - Deferred and Tax Liabilities - Deferred | |||
Deferred tax assets - Balances at the beginning of the period | 9,649 | 8,887 | 8,444 |
(Charge)/Credit to income | (185) | 49 | 1,199 |
Foreign currency balance translation differences and other items | (455) | 713 | (794) |
(Charge)/Credit to asset and liability valuation adjustments | 38 | ||
Acquisitions for the year (net) | 2,037 | ||
Deferred tax assets - Balances at the end of the period | € 11,046 | € 9,649 | € 8,887 |
Tax matters - Tax reforms (Deta
Tax matters - Tax reforms (Details) - GBP (£) | Sep. 01, 2015 | Aug. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Tax reforms | ||||||||
Income tax rate (as a percent) | 30.00% | 30.00% | 30.00% | |||||
Total tax rate (as a percent) | 32.12% | 30.48% | 23.18% | |||||
United States | ||||||||
Tax reforms | ||||||||
Corporate tax rate (as a percent) | 35.00% | |||||||
Argentina | ||||||||
Tax reforms | ||||||||
Income tax rate (as a percent) | 35.00% | |||||||
Spain | ||||||||
Tax reforms | ||||||||
Limit for the integration of deferred monetized tax assets (as a percent) | 25.00% | 70.00% | ||||||
Limit of the tax rate for the application of deductions (as a percent) | 50.00% | |||||||
United Kingdom | ||||||||
Tax reforms | ||||||||
Corporate tax rate (as a percent) | 19.00% | |||||||
Surcharge on the standard income tax rate for bank profits (as a percent) | 8.00% | |||||||
Dividend exemption, generating potential tax credit | £ 2,000 | |||||||
Brazil | ||||||||
Tax reforms | ||||||||
Social contribution tax (as a percent) | 20.00% | 15.00% | ||||||
Income tax rate (as a percent) | 25.00% | |||||||
Total tax rate (as a percent) | 45.00% | |||||||
Poland | ||||||||
Tax reforms | ||||||||
Tax on certain bank assets (as a percent) | 0.0366% | |||||||
Chile | ||||||||
Tax reforms | ||||||||
First Category tax rate (as a percent) | (24.00%) | 25.50% | ||||||
Forecast | United States | Changes in tax rates | ||||||||
Tax reforms | ||||||||
Corporate tax rate (as a percent) | 21.00% | |||||||
Forecast | Argentina | Changes in tax rates | ||||||||
Tax reforms | ||||||||
Income tax rate (as a percent) | 25.00% | 30.00% | 30.00% | |||||
Dividend withholding rate | 13.00% | 7.00% | 7.00% | |||||
Forecast | Chile | Changes in tax rates | ||||||||
Tax reforms | ||||||||
First Category tax rate (as a percent) | 27.00% | |||||||
Maximum | United Kingdom | ||||||||
Tax reforms | ||||||||
Corporate tax rate (as a percent) | 20.00% | |||||||
Minimum | United Kingdom | ||||||||
Tax reforms | ||||||||
Corporate tax rate (as a percent) | 17.00% |
Non-controlling interests - NCI
Non-controlling interests - NCI Components (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-controlling interests | |||
Non-controlling interests, excluding profit (loss) for the current period | € 10,756 | € 10,479 | € 9,345 |
Profit attributable to non-controlling interests | 1,588 | 1,282 | 1,368 |
NON-CONTROLLING INTEREST | 12,344 | 11,761 | 10,713 |
Bank Zachodni WBK S.A. | |||
Non-controlling interests | |||
Non-controlling interests, excluding profit (loss) for the current period | 1,901 | 1,653 | 1,685 |
Profit attributable to non-controlling interests | 160 | 148 | 154 |
Banco Santander (Brasil) S.A | |||
Non-controlling interests | |||
Non-controlling interests, excluding profit (loss) for the current period | 1,489 | 1,784 | 1,190 |
Profit attributable to non-controlling interests | 288 | 194 | 296 |
Santander Consumer USA Holdings Inc. | |||
Non-controlling interests | |||
Non-controlling interests, excluding profit (loss) for the current period | 1,479 | 1,963 | 1,506 |
Profit attributable to non-controlling interests | 368 | 256 | 329 |
Grupo PSA | |||
Non-controlling interests | |||
Non-controlling interests, excluding profit (loss) for the current period | 1,305 | 1,149 | 801 |
Profit attributable to non-controlling interests | 206 | 171 | 122 |
Banco Santander - Chile | |||
Non-controlling interests | |||
Non-controlling interests, excluding profit (loss) for the current period | 1,209 | 1,204 | 1,037 |
Profit attributable to non-controlling interests | 264 | 215 | 191 |
Grupo Financiero Santander Mexico, S.A.B. De C.V. | |||
Non-controlling interests | |||
Non-controlling interests, excluding profit (loss) for the current period | 1,056 | 1,069 | 1,296 |
Profit attributable to non-controlling interests | 194 | 190 | 201 |
Grupo Metrovacesa | |||
Non-controlling interests | |||
Non-controlling interests, excluding profit (loss) for the current period | 836 | 449 | 560 |
Other Companies | |||
Non-controlling interests | |||
Non-controlling interests, excluding profit (loss) for the current period | 1,481 | 1,208 | 1,270 |
Profit attributable to non-controlling interests | € 108 | € 108 | € 75 |
Non-controlling interests - Cha
Non-controlling interests - Changes in NCI (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-controlling interests | |||
Equity at beginning of period | € 102,699 | € 98,753 | € 89,714 |
Total recognized income and expenses | 887 | 7,183 | 3,258 |
Profit attributable to non-controlling interests | 1,588 | 1,282 | 1,368 |
Change of perimeter | (39) | (197) | 761 |
Dividends | (3,496) | (3,189) | (2,680) |
Equity at end of period | 106,833 | 102,699 | 98,753 |
Non-Controlling interest | |||
Non-controlling interests | |||
Equity at beginning of period | 11,761 | 10,713 | 8,909 |
Equity at end of period | 12,344 | 11,761 | 10,713 |
Non-Controlling interest, Other comprehensive income | |||
Non-controlling interests | |||
Total recognized income and expenses | (583) | 374 | (572) |
Exchange differences | (653) | 360 | (520) |
Cash flow hedge | (11) | 45 | (1) |
Available for sale - equity | (2) | (30) | 22 |
Available for sale - fixed income | 71 | 38 | (100) |
Other comprehensive income, Other | 12 | (39) | 27 |
Which of: Other comprehensive income | 6 | ||
Non-Controlling interest, Other elements | |||
Non-controlling interests | |||
Other | 1,166 | 674 | 2,376 |
Profit attributable to non-controlling interests | 1,588 | 1,282 | 1,368 |
Modification of participation rates | (819) | (28) | (168) |
Change of perimeter | (39) | (197) | 761 |
Dividends | (665) | (800) | (461) |
Changes in capital and others concepts | € 1,101 | € 417 | € 876 |
Non-controlling interests - 235
Non-controlling interests - Change by Subsidiary (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-controlling interests | |||
Increases or ( ) decreases due to business combinations | € (39) | € (197) | € 761 |
Socit Financire de Banque - SOFIB (actually PSA Banque France) | |||
Non-controlling interests | |||
Percentage of voting equity interests acquired | 50.00% | ||
PSA Finance UK Limited | |||
Non-controlling interests | |||
Percentage of voting equity interests acquired | 50.00% | ||
PSA Financial Services, Spain, EFC, SA | |||
Non-controlling interests | |||
Percentage of voting equity interests acquired | 50.00% | ||
Metrovacesa, S.A. | |||
Non-controlling interests | |||
Percentage of voting equity interests acquired | 13.80% | ||
Santander Consumer USA Holdings Inc. | |||
Non-controlling interests | |||
Percentage of voting equity interests acquired | 9.65% | ||
Increases or ( ) decreases due to business combinations | € (492) | ||
Non-Controlling interest | Metrovacesa, S.A. | |||
Non-controlling interests | |||
Decrease in minority interest due to operations | 621 | ||
Non-Controlling interest | Remaining Geographies in PSA - Netherlands, Belgium, Italy, Germany, Brazil and Poland | |||
Non-controlling interests | |||
Increase in minority interest due to remaining geographies included in PSA framework agreement | 410 | ||
Non-Controlling interest, Other elements | |||
Non-controlling interests | |||
Increases or ( ) decreases due to business combinations | € (39) | € (197) | € 761 |
Non-Controlling interest, Other elements | Socit Financire de Banque - SOFIB (actually PSA Banque France) | |||
Non-controlling interests | |||
Increases or ( ) decreases due to business combinations | 462 | ||
Non-Controlling interest, Other elements | PSA Finance UK Limited | |||
Non-controlling interests | |||
Increases or ( ) decreases due to business combinations | 148 | ||
Non-Controlling interest, Other elements | PSA Financial Services, Spain, EFC, SA | |||
Non-controlling interests | |||
Increases or ( ) decreases due to business combinations | 181 | ||
Non-Controlling interest, Other elements | Metrovacesa, S.A. | |||
Non-controlling interests | |||
Increases or ( ) decreases due to business combinations | € (271) |
Non-controlling interests - Oth
Non-controlling interests - Other Information (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-controlling interests | |||
Total assets | € 1,444,305 | € 1,339,125 | € 1,340,260 |
Total liabilities | 1,337,472 | 1,236,426 | 1,241,507 |
Total gross income | 74,182 | 74,159 | 71,896 |
Total profit | 8,207 | € 7,486 | € 7,334 |
Banco Santander (Brasil) S.A | |||
Non-controlling interests | |||
Total assets | 161,690 | ||
Total liabilities | 145,040 | ||
Net assets | 16,650 | ||
Total gross income | 14,273 | ||
Total profit | 2,887 | ||
Banco Santander - Chile | |||
Non-controlling interests | |||
Total assets | 50,355 | ||
Total liabilities | 45,321 | ||
Net assets | 5,034 | ||
Total gross income | 2,523 | ||
Total profit | 859 | ||
Grupo Financiero Santander Mexico, S.A.B. De C.V. | |||
Non-controlling interests | |||
Total assets | 58,203 | ||
Total liabilities | 53,267 | ||
Net assets | 4,936 | ||
Total gross income | 3,460 | ||
Total profit | 904 | ||
Bank Zachodni WBK S.A. | |||
Non-controlling interests | |||
Total assets | 32,171 | ||
Total liabilities | 27,235 | ||
Net assets | 4,936 | ||
Total gross income | 1,419 | ||
Total profit | 432 | ||
Santander Consumer USA Holdings Inc. | |||
Non-controlling interests | |||
Total assets | 33,162 | ||
Total liabilities | 27,537 | ||
Net assets | 5,625 | ||
Total gross income | 4,257 | ||
Total profit | € 585 |
Other comprehensive income - It
Other comprehensive income - Items not reclassified to profit or loss (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Items not reclassified to profit or loss | ||
Increase (decrease) in accumulated actuarial losses/profits | € 157 | |
Spain | ||
Items not reclassified to profit or loss | ||
Increase (decrease) in accumulated actuarial losses/profits | € 41 | |
Discount rates | 1.40% | 1.50% |
United Kingdom | ||
Items not reclassified to profit or loss | ||
Increase (decrease) in accumulated actuarial losses/profits | € 121 | |
Discount rates | 2.49% | 2.79% |
Inflation rates | 3.15% | 3.12% |
Brazil | ||
Items not reclassified to profit or loss | ||
Increase (decrease) in accumulated actuarial losses/profits | € 276 | |
Discount rate actuarial assumptions | Other Regions [Member] | ||
Items not reclassified to profit or loss | ||
Increase (decrease) in accumulated actuarial losses/profits | € (281) | |
Pension benefits | Brazil | ||
Items not reclassified to profit or loss | ||
Discount rates | 9.53% | 10.92% |
Medical benefits | Brazil | ||
Items not reclassified to profit or loss | ||
Discount rates | 9.65% | 10.84% |
Other comprehensive income - Ex
Other comprehensive income - Exchange differences (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Items that may be reclassified to profit or loss | |||
Loss related to measurement of goodwill | € (105) | € 1,627 | € (3,156) |
Reserve of hedge of net investments in foreign operations and exchange differences on translation | (19,741) | (12,995) | (11,980) |
Brazilian real | |||
Items that may be reclassified to profit or loss | |||
Reserve of hedge of net investments in foreign operations and exchange differences on translation | (11,056) | (8,435) | (10,679) |
Mexican peso | |||
Items that may be reclassified to profit or loss | |||
Reserve of hedge of net investments in foreign operations and exchange differences on translation | (2,230) | (1,908) | (1,497) |
Pound sterling | |||
Items that may be reclassified to profit or loss | |||
Reserve of hedge of net investments in foreign operations and exchange differences on translation | (3,732) | (2,996) | 232 |
Argentine peso | |||
Items that may be reclassified to profit or loss | |||
Reserve of hedge of net investments in foreign operations and exchange differences on translation | (1,684) | (1,309) | (1,135) |
Chilean peso | |||
Items that may be reclassified to profit or loss | |||
Reserve of hedge of net investments in foreign operations and exchange differences on translation | (866) | (614) | (711) |
U.S. dollar | |||
Items that may be reclassified to profit or loss | |||
Reserve of hedge of net investments in foreign operations and exchange differences on translation | 555 | 2,849 | 2,342 |
Other currencies | |||
Items that may be reclassified to profit or loss | |||
Reserve of hedge of net investments in foreign operations and exchange differences on translation | (728) | (582) | (532) |
Goodwill. | |||
Items that may be reclassified to profit or loss | |||
Loss related to measurement of goodwill | € 1,704 | € 185 | € 514 |
Other comprehensive income - Fi
Other comprehensive income - Financial assets available-for-sale (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Items that may be reclassified to profit or loss | ||||
Revaluation gains | € 2,389 | € 2,108 | € 1,900 | |
Revaluation losses | (321) | (537) | (1,056) | |
Net revaluation gains/(losses) | 2,068 | 1,571 | 844 | |
Financial assets available-for-sale | € 133,271 | 116,774 | 122,036 | |
Decrease in value of quoted equity instrument to be considered impaired (as a percent) | 40.00% | |||
Period of time of a continued fall in value of an equity instrument to be considered impaired (in months) | 18 months | |||
Debt instruments | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | € 1,460 | 944 | 1,131 | |
Revaluation losses | (306) | (521) | (1,033) | |
Net revaluation gains/(losses) | 1,154 | 423 | 98 | |
Financial assets available-for-sale | 128,481 | 111,287 | 117,187 | |
Impairment loss recognized in profit or loss | 119 | |||
Private-sector debt securities | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 90 | 117 | 165 | |
Revaluation losses | (128) | (162) | (253) | |
Net revaluation gains/(losses) | (38) | (45) | (88) | |
Financial assets available-for-sale | 20,888 | 25,683 | 29,409 | |
Equity instruments | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 929 | 1,164 | 769 | |
Revaluation losses | (15) | (16) | (23) | |
Net revaluation gains/(losses) | 914 | 1,148 | 746 | |
Financial assets available-for-sale | 4,790 | 5,487 | 4,849 | € 5,001 |
Impairment loss recognized in profit or loss | 10 | 14 | 111 | |
Reversal of impairment loss recognized in profit or loss | 25 | |||
Listed | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 828 | 999 | 436 | |
Revaluation losses | (5) | (11) | (15) | |
Net revaluation gains/(losses) | 823 | 988 | 421 | |
Financial assets available-for-sale | 2,900 | 3,200 | 1,986 | |
Unlisted | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 101 | 165 | 333 | |
Revaluation losses | (10) | (5) | (8) | |
Net revaluation gains/(losses) | 91 | 160 | 325 | |
Financial assets available-for-sale | 1,890 | 2,287 | 2,863 | |
Spain | Government debt securities and debt instruments issued by central banks | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 660 | 610 | 641 | |
Revaluation losses | (25) | (26) | (62) | |
Net revaluation gains/(losses) | 635 | 584 | 579 | |
Financial assets available-for-sale | 48,217 | 32,729 | 35,283 | |
Spain | Domestic | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 5 | 48 | 66 | |
Revaluation losses | (2) | (5) | (5) | |
Net revaluation gains/(losses) | 3 | 43 | 61 | |
Financial assets available-for-sale | 1,373 | 1,309 | 1,140 | |
Rest of Europe | Government debt securities and debt instruments issued by central banks | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 306 | 50 | 283 | |
Revaluation losses | (24) | (170) | (47) | |
Net revaluation gains/(losses) | 282 | (120) | 236 | |
Financial assets available-for-sale | 20,244 | 16,879 | 20,310 | |
Rest of Europe | International | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 166 | 284 | 438 | |
Revaluation losses | (2) | (4) | (14) | |
Net revaluation gains/(losses) | 164 | 280 | 424 | |
Financial assets available-for-sale | 979 | 1,016 | 1,338 | |
Latin America and rest of the world | Government debt securities and debt instruments issued by central banks | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 404 | 167 | 42 | |
Revaluation losses | (129) | (163) | (671) | |
Net revaluation gains/(losses) | 275 | 4 | (629) | |
Financial assets available-for-sale | 39,132 | 35,996 | 32,185 | |
Latin America and rest of the world | International | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 744 | 811 | 251 | |
Revaluation losses | (6) | (7) | (2) | |
Net revaluation gains/(losses) | 738 | 804 | 249 | |
Financial assets available-for-sale | 1,878 | 2,390 | 1,391 | |
United States | International | ||||
Items that may be reclassified to profit or loss | ||||
Revaluation gains | 14 | 21 | 14 | |
Revaluation losses | (5) | (2) | ||
Net revaluation gains/(losses) | 9 | 21 | 12 | |
Financial assets available-for-sale | € 560 | € 772 | € 980 |
Other comprehensive income - Eq
Other comprehensive income - Equity Method Entities (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Items that may be reclassified to profit or loss | |||
Balance at beginning of year | € (8,070) | € (8,383) | |
Balance at end of year | (15,430) | (8,070) | € (8,383) |
Investments accounted for using equity method | |||
Items that may be reclassified to profit or loss | |||
Balance at beginning of year | (153) | (232) | (85) |
Revaluation gains/(losses) | (84) | 79 | (156) |
Net amounts transferred to profit or loss | 15 | 9 | |
Balance at end of year | (222) | (153) | (232) |
Investments accounted for using equity method | Zurich Santander Insurance America S.L. | |||
Items that may be reclassified to profit or loss | |||
Balance at beginning of year | (84) | (136) | |
Balance at end of year | € (145) | € (84) | € (136) |
Issued Capital - Changes (Detai
Issued Capital - Changes (Details) € / shares in Units, € in Millions | Jul. 03, 2017EUR (€)item€ / sharesshares | Dec. 31, 2017EUR (€)€ / sharesshares | Nov. 01, 2017EUR (€)shares | Dec. 31, 2016EUR (€)shares | Nov. 04, 2016EUR (€)shares | Dec. 31, 2015EUR (€)shares | Nov. 04, 2015EUR (€)shares | Apr. 29, 2015EUR (€)shares | Jan. 29, 2015EUR (€)shares | Jan. 08, 2015EUR (€)shares | Dec. 31, 2014EUR (€)shares |
Issued capital abstract | |||||||||||
Share capital (in shares) | shares | 16,136,153,582 | 14,582,340,701 | 14,434,492,579 | 12,584,414,659 | |||||||
Share capital | € | € 729 | € 8,068 | € 48 | € 7,291 | € 74 | € 7,217 | € 59 | € 128 | € 131 | € 607 | € 6,292 |
Total capital increase | € | € 7,072 | € 7,500 | |||||||||
New shares issued (in shares) | shares | 1,458,232,745 | 95,580,136 | 147,848,122 | 117,859,774 | 256,046,919 | 262,578,993 | 1,213,592,234 | ||||
Nominal value per share | € / shares | € 0.50 | € 0.50 | |||||||||
Premium per share | € / shares | 4.35 | ||||||||||
Total price per share | € / shares | € 4.85 | ||||||||||
Share premium | € | € 6,343 | € 51,053 | € 44,912 | € 45,001 | € 6,893 | ||||||
Shares issued as a percentage of shared capital | 0.60% | 1.02% | 0.82% | 1.82% | 1.90% | ||||||
Number of subscription rights required for each new share | item | 10 |
Issued Capital - Major Sharehol
Issued Capital - Major Shareholders (Details) | Aug. 09, 2017 | Dec. 31, 2017shareholdershares |
Other capital disclosures | ||
Number of shares equivalent to a Crest Depositary Interest (CDI) | 1 | |
Number of shares equivalent to an American Depositary Receipt (BDR) | 1 | |
Minimum shareholders' ownership percentage threshold for reporting | 3.00% | |
Number of third party owners of interests held in custody which exceed the minimum shareholders' ownership percentage threshold for reporting | shareholder | 0 | |
Minimum tax haven participation threshold for reporting | 1.00% | |
State Street Bank and Trust Company | ||
Other capital disclosures | ||
Shareholder ownership interest in entity (as percent) | 13.32% | |
Bank of New York Mellon Corporation | ||
Other capital disclosures | ||
Shareholder ownership interest in entity (as percent) | 8.83% | |
Chase Nominees Ltd. | ||
Other capital disclosures | ||
Shareholder ownership interest in entity (as percent) | 7.41% | |
EC Nominees Limited | ||
Other capital disclosures | ||
Shareholder ownership interest in entity (as percent) | 3.43% | |
Clearstream Banking S.A. | ||
Other capital disclosures | ||
Shareholder ownership interest in entity (as percent) | 3.10% | |
BNP Paribas | ||
Other capital disclosures | ||
Shareholder ownership interest in entity (as percent) | 3.03% | |
Blackrock, Inc. | ||
Other capital disclosures | ||
Minimum shareholders' ownership percentage threshold for reporting | 3.00% | |
Voting rights asserted, as a percent | 5.94% | |
Further stake held, as a percent | 0.158% |
Issued Capital - Other Consider
Issued Capital - Other Considerations (Details) - EUR (€) shares in Millions | Mar. 18, 2016 | Dec. 31, 2017 | Apr. 07, 2017 | Mar. 27, 2015 |
Other considerations | ||||
Authorized additional share capital | € 500,000,000 | € 3,645,585,175 | ||
Limit to disapply pre-emption rights | € 1,458,234,070 | |||
Shares owned by third parties and managed by Group management companies | 52 | |||
Shares owned by third parties and managed by Group management companies as a percentage of shared capital | 0.32% | |||
Shares owned by third parties and received as security | 217 | |||
Shares received as security as a percentage of shared capital | 1.35% | |||
Maximum | ||||
Other considerations | ||||
Authorized convertible fixed-income securities | € 10,000,000,000 | |||
Authorized period in which to exercise capital increase | 1 year |
Share Premium (Details)
Share Premium (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Jul. 03, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 08, 2015 |
Share Premium Abstract | |||||
Share premium | € 51,053 | € 6,343 | € 44,912 | € 45,001 | € 6,893 |
Decrease in share premium related to Santander Dividendo Eleccion Scrip dividend scheme | 48 | 74 | 318 | ||
Transfer of share premium to Legal reserve | € 154 | € 15 | € 185 |
Accumulated retained earnings -
Accumulated retained earnings - Reserve Breakdown (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Reserve breakdown | |||
Reserves of subsidiaries | € 36,862 | € 34,568 | € 31,275 |
Investments accounted for using equity method | |||
Reserve breakdown | |||
Restricted reserves | 2,880 | 2,686 | 2,708 |
Legal reserve | 1,614 | 1,459 | 1,444 |
Own shares | 1,212 | 1,173 | 1,210 |
Revaluation reserve Royal Decree-Law 7/1996 | 43 | 43 | 43 |
Reserve for retired capital | 11 | 11 | 11 |
Unrestricted reserves | 11,368 | 11,285 | 11,486 |
Voluntary reserves | 6,904 | 7,192 | 3,230 |
Consolidation reserves attributable to the Bank | 4,464 | 4,093 | 8,256 |
Reserves of subsidiaries | 36,862 | 34,568 | 31,275 |
Reserves of entities accounted for using the equity method | 725 | 465 | 291 |
Accumulated retained earnings and other reserves | € 51,835 | € 49,004 | € 45,760 |
Accumulated retained earning246
Accumulated retained earnings - Legal Reserve (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Legal reserve | |||
Percentage of annual net profit required to be transferred to the legal reserve | 10.00% | ||
Percentage of share capital required to be maintained in the legal reserve before annual transfers can be discontinued | 20.00% | ||
Minimum percentage of increased share capital required to be maintained in the legal reserve if reserves are used to increase capital | 10.00% | ||
Transfer of share premium to Legal reserve | € 154 | € 15 | € 185 |
Accumulated retained earning247
Accumulated retained earnings - Reserves of Subsidiaries (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Reserve breakdown | |||
Reserves of subsidiaries | € 36,862 | € 34,568 | € 31,275 |
Restricted portion of Reserves of subsidiaries | 2,777 | 2,730 | 2,445 |
Banco Santander (Brasil) S.A | |||
Reserve breakdown | |||
Reserves of subsidiaries | 9,874 | 8,993 | 8,408 |
Santander UK plc | |||
Reserve breakdown | |||
Reserves of subsidiaries | 7,724 | 6,887 | 6,457 |
Santander Holding USA, Inc. | |||
Reserve breakdown | |||
Reserves of subsidiaries | 4,150 | 4,091 | 3,440 |
Banco Santander (Mexico), S.A., Institucion De Banca Multiple, Grupo Financiero Santander Mexico | |||
Reserve breakdown | |||
Reserves of subsidiaries | 3,229 | 3,255 | 2,977 |
Banco Santander Totta SA | |||
Reserve breakdown | |||
Reserves of subsidiaries | 2,821 | 2,593 | 2,165 |
Banco Santander - Chile | |||
Reserve breakdown | |||
Reserves of subsidiaries | 2,764 | 2,630 | 2,534 |
Santander Consumer Finance, S.A. | |||
Reserve breakdown | |||
Reserves of subsidiaries | 2,465 | 2,027 | 1,549 |
Banco Santander Rio, S.A. | |||
Reserve breakdown | |||
Reserves of subsidiaries | 1,639 | 1,326 | 965 |
Bank Zachodni WBK S.A. | |||
Reserve breakdown | |||
Reserves of subsidiaries | 1,093 | 967 | 578 |
Santander Seguros y Reaseguros, Compania Aseguradora, S.A. | |||
Reserve breakdown | |||
Reserves of subsidiaries | 638 | 824 | 754 |
Banco Santander (Suisse), S.A. | |||
Reserve breakdown | |||
Reserves of subsidiaries | 381 | 354 | 346 |
Santander Investment, S.A. | |||
Reserve breakdown | |||
Reserves of subsidiaries | 202 | 349 | 367 |
Cartera Mobiliaria, S.A. SICAV | |||
Reserve breakdown | |||
Reserves of subsidiaries | 377 | 363 | |
Exchange differences, consolidation adjustments and other companies | |||
Reserve breakdown | |||
Reserves of subsidiaries | € (118) | € (105) | € 372 |
Other equity instruments and248
Other equity instruments and own shares (Details) - EUR (€) € / shares in Units, € in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 17, 2017 | Sep. 08, 2017 | |
Other equity instruments and own shares | |||||
Fidelity Bonds, nominal value | € 764 | € 981 | |||
Fidelity Bonds, market value | € 525 | € 525 | € 686 | ||
Bank's shares owned by consolidated companies as percentage of issued shared capital | 0.024% | 0.01% | 0.279% | ||
Average purchase price of Bank shares | € 5.48 | ||||
Average selling price of Bank shares | € 5.63 | ||||
Net effect on equity from purchase and sale of Bank shares | € 26 | € 15 | € 16 |
Memorandum items - Commitments
Memorandum items - Commitments and Contingencies (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of contingent liabilities [line items] | |||
Contingent Liabilities | € 49,117 | € 44,434 | € 39,834 |
Contingent Commitments | 237,970 | 231,962 | 221,738 |
Provision for commitments and guarantees given | |||
Disclosure of contingent liabilities [line items] | |||
Other provisions | 617 | 459 | 618 |
Financial guarantees | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Liabilities | 14,499 | 17,244 | 14,648 |
Financial bank guarantees | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Liabilities | 14,287 | 17,244 | 14,648 |
Sold Credit Derivatives [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Liabilities | 212 | ||
Non-financial guarantees | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Liabilities | 31,396 | 24,477 | 23,047 |
Technical guarantees | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Liabilities | 30,273 | 23,684 | 22,526 |
Unconditionally cancellable guarantees | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Liabilities | 1,123 | 793 | 521 |
Irrevocable documentary credits | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Liabilities | 3,222 | 2,713 | 2,139 |
Irrevocable documentary credits. | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Liabilities | 3,222 | 2,713 | 2,139 |
Doubtful irrevocable documentary credits | |||
Disclosure of contingent liabilities [line items] | |||
Other provisions | 1,327 | 1,078 | 968 |
Drawable by third parties | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Commitments | 207,671 | 202,097 | 195,647 |
Other contingent commitments | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Commitments | 30,299 | 29,865 | 26,091 |
Financial asset forward purchase commitments | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Commitments | 674 | 254 | 261 |
Regular way financial asset purchase contracts | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Commitments | 1,054 | 4,273 | 485 |
Purchase contracts of financial assets | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Commitments | 13,234 | 12,160 | 12,755 |
Documents delivered to clearing houses | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Commitments | 12,030 | 12,656 | 12,251 |
Other Contingency Commitments [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Contingent Commitments | € 3,307 | € 522 | € 339 |
Memorandum items - Other (Detai
Memorandum items - Other (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of unconsolidated structured entities [line items] | |||
Off-balance sheet assets managed by the entity and by joint ventures | € 166,574 | € 159,260 | € 140,741 |
Third party debt securities and equity instruments held in custody | 997,061 | 965,648 | 877,682 |
Investment fund units and shares | |||
Disclosure of unconsolidated structured entities [line items] | |||
Off-balance sheet assets managed by the entity and by joint ventures | 135,749 | 129,930 | 109,028 |
Pension funds | |||
Disclosure of unconsolidated structured entities [line items] | |||
Off-balance sheet assets managed by the entity and by joint ventures | 11,566 | 11,298 | 11,376 |
Assets under management | |||
Disclosure of unconsolidated structured entities [line items] | |||
Off-balance sheet assets managed by the entity and by joint ventures | € 19,259 | € 18,032 | € 20,337 |
Derivatives - held for tradi251
Derivatives - held for trading and hedging derivatives (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Trading derivatives | |||
Trading and hedging derivatives | |||
Notional amount | € 4,714,509 | € 4,761,206 | € 4,294,743 |
Market value | (649) | (2,326) | 310 |
Trading derivatives | Securities and commodities derivatives and other | |||
Trading and hedging derivatives | |||
Notional amount | 70,325 | 76,523 | 90,662 |
Market value | 529 | 290 | (697) |
Trading derivatives | Interest rate risk | Forward rate agreements | |||
Trading and hedging derivatives | |||
Notional amount | 190,553 | 370,244 | 175,661 |
Market value | (15) | (64) | (59) |
Trading derivatives | Interest rate risk | Interest rate swaps | |||
Trading and hedging derivatives | |||
Notional amount | 3,312,025 | 3,092,360 | 2,839,940 |
Market value | 974 | 804 | 3,095 |
Trading derivatives | Interest rate risk | Options, futures and other derivative | |||
Trading and hedging derivatives | |||
Notional amount | 540,424 | 565,635 | 505,655 |
Market value | (511) | (980) | (555) |
Trading derivatives | Credit risk | Credit default swap | |||
Trading and hedging derivatives | |||
Notional amount | 25,136 | 38,827 | 54,056 |
Market value | 68 | 37 | 46 |
Trading derivatives | Currency risk | Foreign currency purchases and sales | |||
Trading and hedging derivatives | |||
Notional amount | 236,805 | 259,336 | 250,596 |
Market value | (29) | 1,102 | 80 |
Trading derivatives | Currency risk | Foreign currency options | |||
Trading and hedging derivatives | |||
Notional amount | 43,488 | 36,965 | 35,772 |
Market value | (37) | 112 | 104 |
Trading derivatives | Currency risk | Currency swaps | |||
Trading and hedging derivatives | |||
Notional amount | 295,753 | 321,316 | 342,401 |
Market value | (1,628) | (3,627) | (1,704) |
Hedging derivatives | |||
Trading and hedging derivatives | |||
Notional amount | 255,271 | 259,038 | 296,293 |
Market value | 493 | 2,221 | (1,210) |
Hedging derivatives | Securities and commodities derivatives and other | |||
Trading and hedging derivatives | |||
Notional amount | 724 | 319 | 299 |
Market value | 23 | 11 | (2) |
Hedging derivatives | Interest rate risk | Interest rate swaps | |||
Trading and hedging derivatives | |||
Notional amount | 157,042 | 155,047 | 175,199 |
Market value | (2,950) | (1,410) | (1,153) |
Hedging derivatives | Interest rate risk | Options, futures and other derivative | |||
Trading and hedging derivatives | |||
Notional amount | 24,072 | 23,131 | 22,169 |
Market value | (284) | (4) | (54) |
Hedging derivatives | Credit risk | Credit default swap | |||
Trading and hedging derivatives | |||
Notional amount | 186 | 469 | |
Market value | (1) | (5) | |
Hedging derivatives | Currency risk | Foreign currency purchases and sales | |||
Trading and hedging derivatives | |||
Notional amount | 5,500 | 29,282 | 38,685 |
Market value | 448 | (1,066) | 500 |
Hedging derivatives | Currency risk | Foreign currency options | |||
Trading and hedging derivatives | |||
Notional amount | 28 | ||
Hedging derivatives | Currency risk | Currency swaps | |||
Trading and hedging derivatives | |||
Notional amount | 67,933 | 51,045 | 59,472 |
Market value | € 3,256 | € 4,691 | € (496) |
Derivatives - held for tradi252
Derivatives - held for trading and hedging derivatives - Hedges (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flow hedges | |||
Debit balances (losses) | € 152 | ||
Within one year | |||
Cash flow hedges | |||
Debit balances (losses) | 57 | ||
Between one and five years | |||
Cash flow hedges | |||
Debit balances (losses) | 69 | ||
More than five years | |||
Cash flow hedges | |||
Debit balances (losses) | 26 | ||
Fair value hedges | |||
Hedging derivatives | |||
Notional amount | 151,380 | € 146,191 | € 214,591 |
Fair value | (3,361) | (1,018) | (1,166) |
Cash flow hedges | |||
Gain (loss) on hedges | 92 | ||
Portion of the net gain (loss) on hedges attributable to hedged items | 178 | ||
Portion of the net gain (loss) on hedges attributable to hedging derivatives | (86) | ||
Fair value hedges categorized as macro-hedges | |||
Hedging derivatives | |||
Fair value | € 68,927 | ||
Fair value hedges categorized as macro-hedges | United Kingdom | |||
Cash flow hedges | |||
Percentage of the total | 79.00% | ||
Fair value hedges categorized as micro-hedges | |||
Hedging derivatives | |||
Fair value | € 82,453 | ||
Fair value hedges categorized as micro-hedges | Spain | |||
Cash flow hedges | |||
Percentage of the total | 28.00% | ||
Fair value hedges categorized as micro-hedges | United Kingdom | |||
Cash flow hedges | |||
Percentage of the total | 26.00% | ||
Cash flow hedges | |||
Hedging derivatives | |||
Notional amount | € 83,770 | 88,905 | 63,912 |
Fair value | 3,469 | 4,025 | (572) |
Cash flow hedges | |||
Equity valuation adjustment | (317) | ||
Gain on cash flow hedges | (41) | ||
Net amount reclassified from equity by interest income/ (charges) to the income statements | 854 | ||
Impact on profit and loss of the ineffectiveness of cash flow hedges | (103) | ||
Hedges of net investment in foreign operations | |||
Hedging derivatives | |||
Notional amount | 20,121 | 23,942 | 17,790 |
Fair value | 385 | (786) | 528 |
Hedging derivatives | |||
Hedging derivatives | |||
Notional amount | 255,271 | 259,038 | 296,293 |
Fair value | € 493 | € 2,221 | € (1,210) |
Derivatives - held for tradi253
Derivatives - held for trading and hedging derivatives - Foreign currency hedges (Details) $ in Thousands, € in Millions, ¥ in Millions, £ in Millions, zł in Millions, kr in Millions, SFr in Millions, R$ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2017PLN (zł) | Dec. 31, 2017NOK (kr) | Dec. 31, 2017MXN ($) | Dec. 31, 2017COP ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017CLP ($) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2017CAD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016PLN (zł) | Dec. 31, 2016NOK (kr) | Dec. 31, 2016MXN ($) | Dec. 31, 2016COP ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016CLP ($) | Dec. 31, 2016CHF (SFr) | Dec. 31, 2016CAD ($) | Dec. 31, 2016BRL (R$) | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Hedges of net investment in foreign operations | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Notional amount | € 20,121 | € 23,942 | € 17,790 | ||||||||||||||||||||||||
Net hedged positon | 20,786 | 21,680 | |||||||||||||||||||||||||
Foreign currency swaps and forwards | Hedges of net investment in foreign operations | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | 19,445 | 20,914 | |||||||||||||||||||||||||
Spot foreign currency purchases and sales | Hedges of net investment in foreign operations | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | 1,341 | 766 | |||||||||||||||||||||||||
Brazilian real | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | R$ 27850 | 7,010 | R$ 25400 | 7,404 | |||||||||||||||||||||||
Gain (loss) on hedges | € 306 | € (1,877) | |||||||||||||||||||||||||
Mexican peso | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | $ 48,523 | 2,051 | $ 46,593 | 2,140 | |||||||||||||||||||||||
Gain (loss) on hedges | 52 | 247 | |||||||||||||||||||||||||
Polish zloty | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | zł 9,725 | 2,328 | zł 8,962 | 2,032 | |||||||||||||||||||||||
Gain (loss) on hedges | (163) | 26 | |||||||||||||||||||||||||
Chilean peso | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | $ 2,206,000 | 2,994 | $ 2,670,000 | 3,773 | |||||||||||||||||||||||
Gain (loss) on hedges | 21 | (447) | |||||||||||||||||||||||||
Colombian peso | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | $ 46,973,000 | 13 | $ 103,122,000 | 33 | |||||||||||||||||||||||
Gain (loss) on hedges | 1 | (5) | |||||||||||||||||||||||||
Norwegian krone | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | kr 7,665 | 779 | kr 8,107 | 892 | |||||||||||||||||||||||
Gain (loss) on hedges | 44 | (53) | |||||||||||||||||||||||||
Chinese yuan | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | ¥ 7,714 | 912 | ¥ 8,221 | 1,123 | |||||||||||||||||||||||
Gain (loss) on hedges | (16) | 6 | |||||||||||||||||||||||||
Pound sterling | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | £ 2,980 | 3,359 | £ 3,010 | 3,516 | |||||||||||||||||||||||
Pound sterling | Spot foreign currency purchases and sales | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | £ 235 | 264 | £ 332 | 388 | |||||||||||||||||||||||
Gain (loss) on hedges | 113 | 739 | |||||||||||||||||||||||||
U.S. dollar | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | $ 1,183 | 987 | $ 321 | 304 | |||||||||||||||||||||||
Gain (loss) on hedges | (86) | (38) | |||||||||||||||||||||||||
Canadian dollar | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | $ 23 | 15 | $ 30 | 21 | |||||||||||||||||||||||
Gain (loss) on hedges | 1 | (1) | |||||||||||||||||||||||||
Swiss franc | |||||||||||||||||||||||||||
Hedging derivatives | |||||||||||||||||||||||||||
Net hedged positon | SFr 88 | € 75 | SFr 57 | € 53 | |||||||||||||||||||||||
Gain (loss) on hedges | € 6 | € (1) |
Interest income (Details)
Interest income (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income. | |||
Loans and advances - Central banks | € 1,881 | € 2,090 | € 1,392 |
Loans and advances - Credit institutions | 1,840 | 2,388 | 1,845 |
Debt instruments | 7,141 | 6,927 | 7,361 |
Loans and advances - Customers | 43,640 | 42,578 | 45,445 |
Other interest | 1,539 | 1,173 | 1,155 |
Total interest income | € 56,041 | € 55,156 | € 57,198 |
Interest expense (Details)
Interest expense (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest expense. | |||
Central banks deposits | € 216 | € 127 | € 79 |
Credit institution deposits | 2,045 | 1,988 | 2,277 |
Customer deposits | 11,074 | 12,886 | 12,826 |
Debt securities issued and Subordinated liabilities | 6,651 | 7,767 | 7,899 |
Marketable debt securities | 5,685 | 6,822 | 6,965 |
Subordinated liabilities (Note 23) | 966 | 945 | 934 |
Provisions for pensions (Note 25) | 198 | 201 | 270 |
Other interest | 1,561 | 1,098 | 1,035 |
Total interest expense | € 21,745 | € 24,067 | € 24,386 |
Dividend income (Details)
Dividend income (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [line items] | |||
Dividend income | € 384 | € 413 | € 455 |
Financial assets held for trading | |||
Disclosure of financial assets [line items] | |||
Dividend income | 234 | 217 | 266 |
Financial assets available for sale | |||
Disclosure of financial assets [line items] | |||
Dividend income | € 150 | € 196 | € 189 |
Income from companies accoun257
Income from companies accounted for using the equity method (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [line items] | |||
Income from companies accounted for using the equity method | € 704 | € 444 | € 375 |
Zurich Santander Insurance America S.L. | |||
Disclosure of associates [line items] | |||
Income from companies accounted for using the equity method | 241 | 223 | 183 |
Companhia de Credito, Financiamento e Investimento RCI Brasil | |||
Disclosure of associates [line items] | |||
Income from companies accounted for using the equity method | 19 | 12 | 28 |
Allianz Popular, S.L. | |||
Disclosure of associates [line items] | |||
Income from companies accounted for using the equity method | 15 | ||
Other Companies | |||
Disclosure of associates [line items] | |||
Income from companies accounted for using the equity method | 306 | 130 | 100 |
SAM Investment Holdings Limited | |||
Disclosure of associates [line items] | |||
Income from companies accounted for using the equity method | 87 | € 79 | € 64 |
Wizink Bank, S.A. | |||
Disclosure of associates [line items] | |||
Income from companies accounted for using the equity method | € 36 |
Commission income (Details)
Commission income (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Collection and payment services: | |||
Bills | € 368 | € 295 | € 271 |
Demand accounts | 1,490 | 1,191 | 1,074 |
Cards | 3,515 | 2,972 | 2,768 |
Orders | 449 | 431 | 412 |
Cheques and other | 154 | 133 | 134 |
Total collection and payment services | 5,976 | 5,022 | 4,659 |
Marketing of non-banking financial products: | |||
Investment funds | 751 | 696 | 805 |
Pension funds | 92 | 86 | 92 |
Insurance | 2,517 | 2,428 | 2,350 |
Total marketing of non-banking financial products | 3,360 | 3,210 | 3,247 |
Securities services: | |||
Securities underwriting and placement | 374 | 282 | 252 |
Securities trading | 302 | 287 | 303 |
Administration and custody | 359 | 297 | 265 |
Asset management | 251 | 201 | 222 |
Total securities services | 1,286 | 1,067 | 1,042 |
Other: | |||
Foreign exchange | 471 | 353 | 303 |
Financial guarantees | 559 | 505 | 494 |
Commitment fees | 283 | 286 | 314 |
Other fees and commissions | 2,644 | 2,500 | 2,983 |
Total other | 3,957 | 3,644 | 4,094 |
Total commission income | € 14,579 | € 12,943 | € 13,042 |
Commission expense (Details)
Commission expense (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commission expense | |||
Commissions assigned to third parties | € 1,831 | € 1,639 | € 1,593 |
Cards | 1,391 | 1,217 | 1,201 |
By collection and return of effects | 12 | 11 | 13 |
Other fees assigned | 428 | 411 | 379 |
Other commissions paid | 1,151 | 1,124 | 1,416 |
Brokerage fees on lending and deposit transactions | 49 | 47 | 43 |
Sales of insurance and pension funds | 205 | 204 | 159 |
Other fees and commissions | 897 | 873 | 1,214 |
Total commission expense | € 2,982 | € 2,763 | € 3,009 |
Gains or losses on financial260
Gains or losses on financial assets and liabilities (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financial instruments | |||
Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net | € 404 | € 869 | € 1,265 |
Gains or losses on financial assets and liabilities held for trading, net | 1,252 | 2,456 | (2,312) |
Gains or losses on financial assets and liabilities measured at fair value through profit or loss, net | (85) | 426 | 325 |
Gains or losses from hedge accounting, net | (11) | (23) | (48) |
Gains/losses on financial assets and liabilities, net | 1,560 | 3,728 | (770) |
Exchange differences, net | 105 | (1,627) | 3,156 |
Financial assets available for sale | |||
Financial instruments | |||
Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 472 | 861 | 891 |
Financial assets available for sale | Debt instruments | |||
Financial instruments | |||
Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 316 | 464 | 760 |
Financial assets available for sale | Equity instruments | |||
Financial instruments | |||
Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net | € 156 | € 397 | € 131 |
Gains or losses on financial261
Gains or losses on financial assets and liabilities - Financial assets (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial instruments | |||
Financial assets at fair value through profit or loss | € 160,240 | € 179,796 | € 191,389 |
Derivatives | |||
Financial instruments | |||
Financial assets at fair value through profit or loss | 57,243 | 72,043 | 76,724 |
Maximum exposure to credit risk | 34,887 | ||
Equity instruments | |||
Financial instruments | |||
Financial assets at fair value through profit or loss | 22,286 | 15,043 | 18,855 |
Debt instruments | |||
Financial instruments | |||
Financial assets at fair value through profit or loss | 39,836 | 52,320 | 47,681 |
Spanish and foreign government securities | |||
Financial instruments | |||
Financial assets at fair value through profit or loss | 34,605 | ||
Loans and advances | |||
Financial instruments | |||
Financial assets at fair value through profit or loss | 40,875 | 40,390 | 48,129 |
Loans and advances - Central banks | |||
Financial instruments | |||
Reverse repurchase agreements | 8,919 | 13,528 | 7,379 |
Loans and advances - Credit institutions | |||
Financial instruments | |||
Financial assets at fair value through profit or loss | 11,585 | 13,290 | 27,755 |
Reverse repurchase agreements | 21,765 | 20,867 | 37,744 |
Loans and advances - Customers | |||
Financial instruments | |||
Financial assets at fair value through profit or loss | 29,290 | € 27,100 | € 20,374 |
Loans and advances - credit institutions and customers | |||
Financial instruments | |||
Reverse repurchase agreements | 28,563 | ||
Mortgage backed assets | € 2,602 |
Gains or losses on financial262
Gains or losses on financial assets and liabilities - Financial liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial instruments | |||
Financial liabilities at fair value through profit or loss | € (167,240) | € (149,028) | € (159,986) |
Deposits | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss | (84,724) | (48,863) | (62,836) |
Deposits - Central banks | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss | (9,142) | (10,463) | (18,664) |
Deposits - Credit institutions | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss | (18,458) | (5,059) | (8,628) |
Deposits - Customers | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss | (57,124) | (33,341) | (35,544) |
Marketable debt securities | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss | (3,056) | (2,791) | (3,373) |
Short positions | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss | (20,979) | (23,005) | (17,362) |
Derivatives | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss | (57,892) | € (74,369) | (76,414) |
Other financial liabilities | |||
Financial instruments | |||
Financial liabilities at fair value through profit or loss | € (589) | € (1) |
Other operating income and e263
Other operating income and expenses (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of types of insurance contracts [line items] | |||
Insurance activity | € 57 | € 63 | € 98 |
Income from insurance and reinsurance contracts issued | 2,546 | 1,900 | 1,096 |
Expenses of insurance and reinsurance contracts | (2,489) | (1,837) | (998) |
Other operating income | 1,618 | 1,919 | 1,971 |
Non-financial services | 472 | 698 | 711 |
Other operating income | 1,146 | 1,221 | 1,260 |
Of which, fees and commissions offsetting direct costs | 192 | 145 | 115 |
Other operating expense | (1,966) | (1,977) | (2,235) |
Non-financial services | (302) | (518) | (590) |
Other operating expense: | (1,664) | (1,459) | (1,645) |
Of which, Deposit Guarantee Fund | (848) | (711) | (769) |
Total other operating income and expenses | (291) | 5 | (166) |
Life insurance | |||
Disclosure of types of insurance contracts [line items] | |||
Expenses of insurance and reinsurance contracts | (2,249) | (1,574) | (740) |
Insurance and reinsurance | |||
Disclosure of types of insurance contracts [line items] | |||
Income from insurance and reinsurance contracts issued | 2,350 | 1,709 | 961 |
Reinsurance | |||
Disclosure of types of insurance contracts [line items] | |||
Income from insurance and reinsurance contracts issued | 196 | 191 | 135 |
Expenses of insurance and reinsurance contracts | € (240) | € (263) | € (258) |
Personnel expenses - Breakdown
Personnel expenses - Breakdown (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Personnel expenses | |||
Wages and salaries | € 8,879 | € 8,133 | € 8,081 |
Social security costs | 1,440 | 1,291 | 1,330 |
Additions to provisions for defined benefit pension plans (Note 25) | 88 | 81 | 96 |
Contributions to defined contribution pension funds | 271 | 266 | 279 |
Other personnel expenses | 1,369 | 1,233 | 1,321 |
Total employee benefits expense | € 12,047 | € 11,004 | € 11,107 |
Personnel expenses - Headcount
Personnel expenses - Headcount (Details) - employee | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of employees | |||
Average number of employees | 195,732 | 191,635 | 189,464 |
Number of employees | 202,251 | 188,492 | 193,863 |
Average number of employees with disabilities | 3,289 | 2,941 | 3,677 |
Threshold degree of disability (as a percent) | 33.00% | ||
Banco Santander S.A. | |||
Number of employees | |||
Average number of employees with disabilities | 209 | 216 | |
Number of employees with disabilities at end of period | 211 | 213 | |
Threshold degree of disability (as a percent) | 33.00% | 33.00% | |
The Bank Personnel | |||
Number of employees | |||
Average number of employees | 21,391 | 22,284 | 23,162 |
The Bank Senior management | |||
Number of employees | |||
Average number of employees | 64 | 76 | 93 |
The Bank Other line personnel | |||
Number of employees | |||
Average number of employees | 21,327 | 20,291 | 20,909 |
The Bank Clerical staff | |||
Number of employees | |||
Average number of employees | 1,904 | 2,138 | |
The Bank General services personnel | |||
Number of employees | |||
Average number of employees | 13 | 22 | |
Rest of Spain | |||
Number of employees | |||
Average number of employees | 12,703 | 6,925 | 6,922 |
Santander UK plc | |||
Number of employees | |||
Average number of employees | 19,079 | 19,428 | 20,069 |
Banco Santander (Brasil) S.A | |||
Number of employees | |||
Average number of employees | 46,210 | 48,052 | 47,720 |
Other Companies | |||
Number of employees | |||
Average number of employees | 96,349 | 94,946 | 91,591 |
Senior executives | |||
Number of employees | |||
Number of employees - men | 1,600 | ||
Number of employees - women | 412 | ||
Percentage of employees - men | 80.00% | ||
Percentage of employees - women | 20.00% | ||
Other executives | |||
Number of employees | |||
Number of employees - men | 14,378 | ||
Number of employees - women | 7,571 | ||
Percentage of employees - men | 66.00% | ||
Percentage of employees - women | 34.00% | ||
Other personnel | |||
Number of employees | |||
Number of employees - men | 75,449 | ||
Number of employees - women | 102,841 | ||
Percentage of employees - men | 42.00% | ||
Percentage of employees - women | 58.00% | ||
Senior management | |||
Number of employees | |||
Number of employees | 19 | 18 | |
Average number of employees with disabilities | 4 | ||
Other management | |||
Number of employees | |||
Average number of employees with disabilities | 65 | ||
Other staff | |||
Number of employees | |||
Average number of employees with disabilities | 3,220 | ||
Continental Europe | Senior executives | |||
Number of employees | |||
Number of employees - men | 978 | ||
Number of employees - women | 290 | ||
Percentage of employees - men | 77.00% | ||
Percentage of employees - women | 23.00% | ||
Continental Europe | Other executives | |||
Number of employees | |||
Number of employees - men | 6,557 | ||
Number of employees - women | 2,908 | ||
Percentage of employees - men | 69.00% | ||
Percentage of employees - women | 31.00% | ||
Continental Europe | Other personnel | |||
Number of employees | |||
Number of employees - men | 27,009 | ||
Number of employees - women | 33,287 | ||
Percentage of employees - men | 45.00% | ||
Percentage of employees - women | 55.00% | ||
United Kingdom | Senior executives | |||
Number of employees | |||
Number of employees - men | 115 | ||
Number of employees - women | 31 | ||
Percentage of employees - men | 79.00% | ||
Percentage of employees - women | 21.00% | ||
United Kingdom | Other executives | |||
Number of employees | |||
Number of employees - men | 1,252 | ||
Number of employees - women | 639 | ||
Percentage of employees - men | 66.00% | ||
Percentage of employees - women | 34.00% | ||
United Kingdom | Other personnel | |||
Number of employees | |||
Number of employees - men | 8,828 | ||
Number of employees - women | 14,317 | ||
Percentage of employees - men | 38.00% | ||
Percentage of employees - women | 62.00% | ||
America | Senior executives | |||
Number of employees | |||
Number of employees - men | 507 | ||
Number of employees - women | 91 | ||
Percentage of employees - men | 85.00% | ||
Percentage of employees - women | 15.00% | ||
America | Other executives | |||
Number of employees | |||
Number of employees - men | 6,569 | ||
Number of employees - women | 4,024 | ||
Percentage of employees - men | 62.00% | ||
Percentage of employees - women | 38.00% | ||
America | Other personnel | |||
Number of employees | |||
Number of employees - men | 39,612 | ||
Number of employees - women | 55,237 | ||
Percentage of employees - men | 42.00% | ||
Percentage of employees - women | 58.00% |
Personnel expenses - Deferred c
Personnel expenses - Deferred conditional plans (Details) € in Millions | Jan. 01, 2017 | Dec. 31, 2017EUR (€)installmentitem | Dec. 31, 2016item | Dec. 31, 2015EUR (€)installment | Dec. 31, 2014EUR (€) | Dec. 31, 2013EUR (€) | Dec. 31, 2015 |
Executive Directors And Members Of Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Variable remuneration | € 2.7 | ||||||
Deferred conditional delivery share plan | |||||||
Share-based payment arrangement | |||||||
Variable Remuneration or bonus deferral period | 3 years | ||||||
Number of instalments the share-based bonus is paid | installment | 3 | ||||||
Benchmark bonus 300 or less - percentage deferred | 0.00% | ||||||
Benchmark bonus 300 to 600 - percentage deferred | 20.00% | ||||||
Benchmark bonus more than 600 - percentage deferred | 30.00% | ||||||
Deferred conditional delivery share plan | Executive Directors And Members Of Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Immediate payment percentage | 40.00% | ||||||
Deferred percentage | 60.00% | ||||||
Deferred conditional delivery share plan | Division Managers Country Heads Other Executives And Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Variable Remuneration or bonus deferral period | 5 years | ||||||
Immediate payment percentage | 50.00% | ||||||
Deferred percentage | 50.00% | ||||||
Deferred conditional delivery share plan | Other Beneficiaries | |||||||
Share-based payment arrangement | |||||||
Variable Remuneration or bonus deferral period | 3 years | ||||||
Immediate payment percentage | 60.00% | ||||||
Deferred percentage | 40.00% | ||||||
Deferred conditional variable remuneration plan | |||||||
Share-based payment arrangement | |||||||
Variable Remuneration or bonus deferral period | 5 years | ||||||
Variable remuneration fourth cycle deferral period | 3 years | ||||||
Number of instalments -fourth cycle | installment | 3 | ||||||
Variable remuneration sixth cycle immediate payment percentage | 60.00% | ||||||
Variable remuneration sixth cycle deferred percentage | 40.00% | ||||||
Variable remuneration sixth cycle deferral period | 3 years | 3 years | |||||
Number of instalments - sixth cycle | installment | 3 | ||||||
Number of instalments -Seventh cycle | installment | 3 | ||||||
Variable remuneration Seventh cycle deferral period | 3 years | ||||||
Deferred percentage | 60.00% | ||||||
Number of days following the anniversaries of the initial date in which the deferred bonus will be paid | 30 days | ||||||
Bonus paid in cash - (as a percent) | 50.00% | ||||||
Bonus paid in shares - (as a percent) | 50.00% | ||||||
Number of trading sessions | item | 15 | 15 | |||||
Deferred conditional variable remuneration plan | Executive Directors And Members Of Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Variable Remuneration or bonus deferral period | 5 years | 5 years | |||||
Variable remuneration | € 2.7 | € 2.6 | |||||
Immediate payment percentage | 40.00% | 40.00% | |||||
Deferred percentage | 60.00% | 60.00% | |||||
Variable remuneration (percent) | 100 | ||||||
Deferred conditional variable remuneration plan | Division Managers Country Heads Other Executives And Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Variable Remuneration or bonus deferral period | 5 years | ||||||
Immediate payment percentage | 50.00% | 50.00% | |||||
Deferred percentage | 50.00% | 50.00% | |||||
Variable remuneration (percent) | 100 | ||||||
Deferred conditional variable remuneration plan | Other Beneficiaries | |||||||
Share-based payment arrangement | |||||||
Variable Remuneration or bonus deferral period | 3 years | ||||||
Immediate payment percentage | 60.00% | 60.00% | |||||
Deferred percentage | 40.00% | 40.00% | |||||
Minimum | Division Managers Country Heads Other Executives And Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Variable remuneration | € 1.7 | ||||||
Percentage of country heads of countries that represent Group's economic capital | 1.00% | ||||||
Minimum | Deferred conditional delivery share plan | |||||||
Share-based payment arrangement | |||||||
Gross variable remuneration benchmark threshold | € 0.3 | ||||||
Minimum | Deferred conditional variable remuneration plan | |||||||
Share-based payment arrangement | |||||||
Variable remuneration fifth cycle deferral period | 3 years | ||||||
Number of instalments - fifth cycle | installment | 3 | ||||||
Minimum | Deferred conditional variable remuneration plan | Executive Directors And Members Of Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Variable remuneration | € 1.7 | € 2.6 | |||||
Minimum | Deferred conditional variable remuneration plan | Division Managers Country Heads Other Executives And Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Variable remuneration | 2.7 | 1.7 | 1.8 | ||||
Maximum | Division Managers Country Heads Other Executives And Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Variable remuneration | € 2.7 | ||||||
Maximum | Deferred conditional variable remuneration plan | |||||||
Share-based payment arrangement | |||||||
Variable remuneration fifth cycle deferral period | 5 years | ||||||
Number of instalments - fifth cycle | installment | 5 | ||||||
Maximum | Deferred conditional variable remuneration plan | Division Managers Country Heads Other Executives And Identified Staff With Total Variable Remuneration Specified Amount | |||||||
Share-based payment arrangement | |||||||
Variable remuneration | € 2.6 | € 2.6 |
Personnel expenses - Performanc
Personnel expenses - Performance share plan - EPS, TSR, RoTE (Details) - item | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | |
Share-based payment arrangement | |||||
Maximum number of shares to which a beneficiary is entitled (as a percent) | 20.00% | 15.00% | |||
TSR ranking - 1st to 8th, percentage of shares to be delivered | 100.00% | ||||
TSR - 9th to 12th, percentage of shares to be delivered | 50.00% | ||||
TSR ranking - 13th and below, percentage of shares to be delivered | 0.00% | ||||
ILP | |||||
Share-based payment arrangement | |||||
Maximum number of shares to which a beneficiary is entitled (as a percent) | 15.00% | ||||
EPS coefficient - greater than 90 percent | 1 | ||||
EPS coefficient - less than 75 percent | 0 | ||||
RoTE coefficient - greater than 90 percent | 1 | ||||
RoTE coefficient - less than 75 percent | 0 | ||||
Return on tangible equity Group performance coefficient (as a percent) | 91.50% | ||||
TSR ranking - 1st to 8th, percentage of shares to be delivered | 100.00% | ||||
Variable remuneration second cycle deferral period | 3 years | ||||
Number of benchmark group credit institutions | 17 | ||||
Position of EPS growth - 1st to 5th | 1 | ||||
Position of EPS growth - 6th | 0.875 | ||||
Position of EPS growth - 7th | 0.75 | ||||
Position of EPS growth - 8th | 0.625 | ||||
Position of EPS growth - 9th | 0.50 | ||||
Position of EPS growth - 10th and below | 0 | ||||
RoTE coefficient greater than 12 percent | 1.00% | ||||
RoTE coefficient less than 11 percent | 0 | ||||
Minimum | ILP | |||||
Share-based payment arrangement | |||||
EPS coefficient - between 75 and 90 percent | 0.75 | ||||
RoTE coefficient - between 75 and 90 percent | 0.75 | ||||
RoTE coefficient between 11 and 12 percent | 0.75 | ||||
Maximum | ILP | |||||
Share-based payment arrangement | |||||
Maximum number of shares to which a beneficiary is entitled (as a percent) | 20.00% | ||||
EPS coefficient - between 75 and 90 percent | 1 | ||||
RoTE coefficient - between 75 and 90 percent | 1 | ||||
RoTE coefficient between 11 and 12 percent | 1 |
Personnel expenses - Perform268
Personnel expenses - Performance share plan - Employee and Customer Satisfaction, Customer Loyalty (Details) customer in Millions | 12 Months Ended |
Dec. 31, 2017itemcustomer | |
Share-based payment arrangement | |
Business coefficient - SME and business customers less than 90 Percent | 0 |
ILP | |
Share-based payment arrangement | |
Employee coefficient - Country level, 1st to 3rd Position | 1 |
Employee coefficient, 4th or below Position | 0 |
Number of best banks to determine scale of compliance | 3 |
Employee coefficient - Santander Group, 6 or more markets | 1 |
Employee coefficient - Santander Group, 5 or less | 0 |
Customer coefficient - Country level, 1st to 3rd Position | 1 |
Customer coefficient - Country level, 4th or below | 0 |
Customer coefficient - Santander Group, 10 markets | 1 |
Customer coefficient - Santander Group, 5 or less markets | 0 |
Straight-line coefficient increase | 0.2 |
Number of customer loyalty targets individual customers at the Group level | customer | 17 |
Number of customer loyalty targets for SME and business customers at the Group level | customer | 1.1 |
Individual coefficient - Individual customers greater than 100 percent | 1 |
Individual coefficient - Individual customers less than 90 percent | 0 |
Business coefficient - SME and business customers greater than 100 Percent | 1 |
SME and Business Customers greater than 1.1 million | customer | 1.1 |
SME and Business Customers less than 1 million | customer | 1 |
Individual coefficient - Individual customers greater than 17 million | 1 |
Individual coefficient - Individual customers less than 15 million | 0 |
Business coefficient - SME and business customers greater than 1.1 million | 1 |
Business coefficient - SME and business customers less than 1 million | 0 |
Accrued Amount of the ILP - coefficient weight one | 0.25 |
Accrued Amount of the ILP - coefficient weight two | 0.25 |
Accrued Amount of the ILP - coefficient weight three | 0.2 |
Accrued Amount of the ILP - coefficient weight four | 0.15 |
Accrued Amount of the ILP - coefficient weight five | 0.075 |
Accrued Amount of the ILP - coefficient weight six | 0.075 |
Variable Remuneration or bonus deferral period | 3 years |
TSR ranking - 1st to 4th, percentage of shares to be delivered | 100.00% |
TSR ranking - 5th, percentage of shares to be delivered | 87.50% |
TSR ranking - 6th, percentage of shares to be delivered | 75.00% |
TSR ranking - 7th, percentage of shares to be delivered | 62.50% |
TSR ranking - 8th, percentage of shares to be delivered | 50.00% |
TSR ranking - 9th and below, percentage of shares to be delivered | 0.00% |
Minimum | ILP | |
Share-based payment arrangement | |
Number of markets used to determine employee satisfaction scale of compliance | 5 |
Customer coefficient - Santander Group, between 6 and 9 markets | 0.2 |
Individual coefficient - Individual customers greater than 90 and less than 100 percent | 0.5 |
Business coefficient - SME and business customers greater than 90 and less than 100 percent | 0.5 |
Number of SME and business customers | customer | 1 |
Individual coefficient - Individual customers greater than 15 and less than 17 million | 0.5 |
Business coefficient - SME and business customers greater than 1 and less 1.1 million | 0.5 |
Maximum | ILP | |
Share-based payment arrangement | |
Number of markets used to determine employee satisfaction scale of compliance | 6 |
Customer coefficient - Santander Group, between 6 and 9 markets | 0.8 |
Individual coefficient - Individual customers greater than 90 and less than 100 percent | 1 |
Business coefficient - SME and business customers greater than 90 and less than 100 percent | 1 |
Number of SME and business customers | customer | 1.1 |
Individual coefficient - Individual customers greater than 15 and less than 17 million | 1 |
Business coefficient - SME and business customers greater than 1 and less 1.1 million | 1 |
Personnel expenses - Deferred v
Personnel expenses - Deferred variable compensation (Details) € in Millions | 12 Months Ended | |
Dec. 31, 2017EUR (€)item | Dec. 31, 2016periodcompany | |
Share-based payment arrangement | ||
Number of trading sessions | 15 | |
Deferred variable compensation plan linked to multiannual objectives | ||
Share-based payment arrangement | ||
Immediate payment percentage | 40.00% | |
Deferred percentage | 60.00% | |
Variable Remuneration or bonus deferral period | 5 years | |
Number of days following the anniversaries of the initial date in which the deferred bonus will be paid | 30 days | |
BPA coefficient, BPA growth greater than 25 percent | 1 | |
BPA coefficient, BPA growth less than 0 percent | 0 | |
Number of credit institutions included in reference group | 35 | 17 |
RTA coefficient, RTA positon exceeding 66th percentile | 1 | |
RTA coefficient, RTA position less than percentile 33 | 0 | |
Common equity tier 1 compliance target percentage | 11.00% | |
Common equity tier 1 coefficient, if target percentage is met | 1 | |
Common equity tier 1 coefficient, if target percentage is not met | 0 | |
RoRWA coefficient, BPA growth greater than 20 percent | 1 | |
RoRWA coefficient, BPA growth less 10 percent | 0 | |
Number of trading sessions | 15 | 15 |
EPS coefficient - greater than 25 percent | 1 | |
EPS coefficient - less than 0 percent | 0 | |
Credit entities | 17 | |
TSR Coefficient, TSR position exceeding 66th Percentile | 1 | |
TSR Coefficient, smaller than Percentile 33 | 0 | |
CET1 coefficient - greater than 11.3 percent | 1 | |
CET1 coefficient - less than 11 percent | 0 | |
Deferred variable compensation plan linked to multiannual objectives | Minimum | ||
Share-based payment arrangement | ||
Variable Remuneration or bonus deferral period | 3 years | |
BPA coefficient, BPA growth between 0 and 25 percent | 0 | |
RTA coefficient, RTA position between 33rd and 66th percentiles | 0 | |
RoRWA coefficient, BPA growth between 10 and 20 percent | 0.5 | |
EPS coefficient - between 0 and 25 percent | 0 | |
TSR Coefficient, between 33rd and 66th Percentile | 0 | |
CET1 coefficient - between 11 and 11.3 percent | 0.5 | |
Deferred variable compensation plan linked to multiannual objectives | Maximum | ||
Share-based payment arrangement | ||
Variable Remuneration or bonus deferral period | 5 years | |
BPA coefficient, BPA growth between 0 and 25 percent | 1 | |
RTA coefficient, RTA position between 33rd and 66th percentiles | 1 | |
RoRWA coefficient, BPA growth between 10 and 20 percent | 1 | |
EPS coefficient - between 0 and 25 percent | 1 | |
TSR Coefficient, between 33rd and 66th Percentile | 1 | |
CET1 coefficient - between 11 and 11.3 percent | 1 | |
Executive Directors And Members Of Identified Staff With Total Variable Remuneration Specified Amount | ||
Share-based payment arrangement | ||
Variable remuneration | € | € 2.7 | |
Executive Directors And Members Of Identified Staff With Total Variable Remuneration Specified Amount | Deferred variable compensation plan linked to multiannual objectives | ||
Share-based payment arrangement | ||
Immediate payment percentage | 40.00% | |
Deferred percentage | 60.00% | |
Variable Remuneration or bonus deferral period | 5 years | |
Division Managers Country Heads Other Executives And Identified Staff With Total Variable Remuneration Specified Amount | Minimum | ||
Share-based payment arrangement | ||
Variable remuneration | € | € 1.7 | |
Percentage of country heads of countries that represent Group's economic capital | 1.00% | |
Division Managers Country Heads Other Executives And Identified Staff With Total Variable Remuneration Specified Amount | Maximum | ||
Share-based payment arrangement | ||
Variable remuneration | € | € 2.7 | |
Division Managers Country Heads Other Executives And Identified Staff With Total Variable Remuneration Specified Amount | Deferred variable compensation plan linked to multiannual objectives | ||
Share-based payment arrangement | ||
Immediate payment percentage | 50.00% | |
Deferred percentage | 50.00% | |
Variable Remuneration or bonus deferral period | 5 years | |
Other Beneficiaries | Deferred variable compensation plan linked to multiannual objectives | ||
Share-based payment arrangement | ||
Immediate payment percentage | 60.00% | |
Deferred percentage | 40.00% | |
Variable Remuneration or bonus deferral period | 3 years |
Personnel expenses - Santander
Personnel expenses - Santander UK plc (Details) - Santander UK plc - Sharesave plan | 12 Months Ended | ||||
Dec. 31, 2017EUR (€)item€ / £contract | Dec. 31, 2016EUR (€)item€ / £contract | Dec. 31, 2015EUR (€)item€ / £contract | Dec. 31, 2008EUR (€)item | Dec. 31, 2014€ / £ | |
Share-based payment arrangement | |||||
Number of shares outstanding, beginning of period | 28,916,000 | 24,762,000 | 19,122,000 | ||
Options granted | 3,916,000 | 17,296,000 | 14,074,000 | ||
Options exercised | (1,918,000) | (338,000) | (1,839,000) | ||
Options cancelled (net) or not exercised | (3,713,000) | (12,804,000) | (6,595,000) | ||
Number of share options outstanding, end of period | 27,201,000 | 28,916,000 | 24,762,000 | ||
Exercise price of share options granted in share-based payment arrangement | € | € 4.02 | € 4.91 | € 3.13 | ||
Exercise price of share options exercised in share-based payment arrangement | € | 3.77 | 3.67 | 3.75 | ||
Exercise price of share options cancelled in share-based payment arrangement | € | € 3.40 | € 3.51 | € 4.50 | ||
Number of persons | contract | 4,260 | 7,024 | 7,759 | ||
Exchange rate | € / £ | 1.16798 | 1.36249 | 1.36249 | 1.28386 | |
Minimum number of accounts/contracts per employee | contract | 1 | ||||
Percentage employees may reduce the average purchase and sale prices of shares under the Sharesave Scheme | 20.00% | ||||
Number of trading sessions | 3 | ||||
Minimum | |||||
Share-based payment arrangement | |||||
Employee contributions deducted from their net monthly pay | € | € 5 | ||||
Period of time the employee contributions are deducted from their net monthly pay for the voluntary Sharesave Scheme | 3 years | ||||
Period for approval of the Sharesave Scheme by UK tax authorities | 21 days | ||||
Maximum | |||||
Share-based payment arrangement | |||||
Employee contributions deducted from their net monthly pay | € | € 500 | ||||
Period of time the employee contributions are deducted from their net monthly pay for the voluntary Sharesave Scheme | 5 years | ||||
Period for approval of the Sharesave Scheme by UK tax authorities | 41 days |
Personnel expenses - Fair value
Personnel expenses - Fair value Performance Plans (Details) | 12 Months Ended |
Dec. 31, 2017item | |
ILP | |
Share-based payment arrangement | |
Number of simulations using a Monte Carlo valuation model to determine the TSR | 10,000 |
Deferred conditional variable remuneration plan and linked to objectives (2017) | |
Share-based payment arrangement | |
Fair value of plan | 70.00% |
Deferred conditional variable remuneration plan and linked to objectives (2017) | Minimum | |
Share-based payment arrangement | |
Reasonable initial achievement ratio | 60.00% |
Deferred conditional variable remuneration plan and linked to objectives (2017) | Maximum | |
Share-based payment arrangement | |
Reasonable initial achievement ratio | 80.00% |
Performance shares plan ILP (2015) | |
Share-based payment arrangement | |
Fair value of plan, initial achievement | 70.00% |
Maximum achievement level | 91.50% |
Fair value of plan | 64.05% |
Performance shares plan ILP (2015) | Minimum | |
Share-based payment arrangement | |
Reasonable initial achievement ratio | 60.00% |
Performance shares plan ILP (2015) | Maximum | |
Share-based payment arrangement | |
Reasonable initial achievement ratio | 80.00% |
Performance shares plan ILP (2014) | |
Share-based payment arrangement | |
Expected volatility | 51.35% |
Annual dividend yield based on last few years | 6.06% |
Risk-free interest rate | 4.073% |
Historical volatility period | 3 years |
Simulation Model Fair Value | 55.39% |
Personnel expenses - Fair va272
Personnel expenses - Fair value Sharesave Plans (Details) - Sharesave plan - Santander UK plc - Y | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based payment arrangement | |||
Volatility of underlying shares based on historical volatility over five years | 32.00% | ||
Historical volatility period | 5 years | 5 years | 5 years |
Minimum | |||
Share-based payment arrangement | |||
Risk-free interest rate | 0.89% | 0.31% | 1.06% |
Dividend increase | 5.48% | 5.92% | 6.91% |
Volatility of underlying shares based on historical volatility over five years | 26.16% | 31.39% | 28.54% |
Expected life of options granted (in years) | 3 | 3 | 3 |
Maximum | |||
Share-based payment arrangement | |||
Risk-free interest rate | 1.08% | 0.41% | 1.37% |
Dividend increase | 5.51% | 6.21% | 7.36% |
Volatility of underlying shares based on historical volatility over five years | 26.31% | 29.11% | |
Expected life of options granted (in years) | 5 | 5 | 5 |
Other general administrative273
Other general administrative expenses - Breakdown of other general administrative expenses (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other general administrative expenses | |||
Property, fixtures and supplies | € 1,931 | € 1,853 | € 1,943 |
Technology and systems | 1,257 | 1,095 | 1,188 |
Technical reports | 759 | 768 | 810 |
Advertising | 757 | 691 | 705 |
Communications | 529 | 499 | 587 |
Taxes other than income tax | 583 | 484 | 529 |
Surveillance and cash courier services | 443 | 389 | 413 |
Per diems and travel expenses | 217 | 232 | 278 |
Insurance premiums | 78 | 69 | 74 |
Other administrative expenses | 1,799 | 1,653 | 1,668 |
Other general administrative expenses | € 8,353 | € 7,733 | € 8,195 |
Other general administrative274
Other general administrative expenses - Technical reports and other (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other general administrative expenses | |||
Audit fees | € 76.2 | € 73.7 | € 49.6 |
Audit related fees | 13.4 | 7.2 | 46.9 |
Tax fees | 1.3 | 0.9 | 9.1 |
All other fees | 3.1 | 3.6 | 12.6 |
Total | 94 | 85.4 | 118.2 |
Commissioned services from audit firms | € 115.6 | € 127.9 | € 117.4 |
Other general administrative275
Other general administrative expenses - Number of Offices (Details) - Office | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of geographical areas [line items] | ||
Number of offices | 13,697 | 12,235 |
Banco Popular Espanol, S.A. | ||
Disclosure of geographical areas [line items] | ||
Number of offices | 1,777 | |
Spain | ||
Disclosure of geographical areas [line items] | ||
Number of offices | 4,681 | 2,911 |
Group | ||
Disclosure of geographical areas [line items] | ||
Number of offices | 9,016 | 9,324 |
Gains or losses on non-finan276
Gains or losses on non-financial assets and investments, net (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of gains losses on disposals of non-financial assets [Line items] | |||
Tangible and intangible assets, gains | € 134 | € 131 | € 104 |
Investments, gains | 443 | 30 | 104 |
Gains on disposals of tangible and intangible assets and investments | 577 | 161 | 208 |
Tangible and intangible assets, losses | (43) | (116) | (83) |
Investments, losses | (12) | (15) | (13) |
Losses on disposals of tangible and intangible assets and investments | (55) | (131) | (96) |
Gains (losses) on disposal of assets not classified as non-current assets held for sale, total | 522 | € 30 | € 112 |
Allfunds Bank, S.A. | |||
Disclosure of gains losses on disposals of non-financial assets [Line items] | |||
Investments, gains | € 425 |
Gains or losses on non-curre277
Gains or losses on non-current assets held for sale not classified as discontinued operations (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Tangible assets | € (195) | € (141) | € (171) |
Impairment (Note 12) | 306 | 212 | 222 |
Gain (loss) on sale | 577 | 161 | 208 |
Other gains and other losses | (8) | (2) | |
Net gains (losses) on noncurrent assets held for sale | (203) | (141) | (173) |
Non-current assets held for sale | |||
Gains Or Losses On Assets Held For Sale [Line Items] | |||
Impairment (Note 12) | 347 | 241 | 253 |
Gain (loss) on sale | € 111 | € 71 | € 51 |
Other disclosures - Residual ma
Other disclosures - Residual maturity periods and average interest rates (Details) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | ||||
Cash, cash balances at Central Banks and other deposits on demand | € 110,995 | € 76,454 | € 77,751 | € 69,853 |
Financial assets available-for-sale | 133,271 | 116,774 | 122,036 | |
Loans and receivables | 903,013 | 840,004 | 836,156 | |
Held-to-maturity investments | 13,491 | 14,468 | 4,355 | |
Total certain assets | 1,155,980 | 1,042,213 | 1,035,449 | |
Liabilities | ||||
Financial liabilities at amortized cost | 1,126,069 | 1,044,240 | 1,039,343 | |
Difference (assets less liabilities) | € 29,911 | € (2,027) | € (3,894) | |
Average interest rate - financial assets | 4.61% | 5.12% | 5.22% | |
Average interest rate - held to maturity investments | 1.52% | 1.70% | 2.39% | |
Average interest rate - financial liabilities | 1.98% | 2.57% | 2.56% | |
Net borrowing position with ECB | € 34,820 | |||
Deposits from central banks at amortised cost due to participation in the refinancing operations program | 58,550 | |||
Undiscounted financial liabilities at amortised cost | 1,118,461 | € 1,035,499 | € 1,029,777 | |
On demand | ||||
Assets | ||||
Cash, cash balances at Central Banks and other deposits on demand | 110,995 | 76,454 | 77,751 | |
Loans and receivables | 57,000 | 52,512 | 27,870 | |
Total certain assets | 168,321 | 129,166 | 105,793 | |
Liabilities | ||||
Financial liabilities at amortized cost | 537,604 | 480,075 | 407,925 | |
Difference (assets less liabilities) | (369,283) | (350,909) | (302,132) | |
Undiscounted financial liabilities at amortised cost | 537,546 | 476,091 | 406,155 | |
1 month | ||||
Assets | ||||
Loans and receivables | 58,686 | 48,420 | 57,666 | |
Total certain assets | 61,153 | 54,406 | 61,934 | |
Liabilities | ||||
Financial liabilities at amortized cost | 75,161 | 95,583 | 140,331 | |
Difference (assets less liabilities) | (14,008) | (41,177) | (78,397) | |
Undiscounted financial liabilities at amortised cost | 73,133 | 112,458 | 139,511 | |
3 months | ||||
Assets | ||||
Loans and receivables | 53,218 | 56,725 | 49,852 | |
Total certain assets | 54,864 | 58,732 | 52,241 | |
Liabilities | ||||
Financial liabilities at amortized cost | 87,939 | 67,282 | 68,991 | |
Difference (assets less liabilities) | (33,075) | (8,550) | (16,750) | |
Undiscounted financial liabilities at amortised cost | 110,270 | 72,048 | 68,419 | |
3 to 12 months | ||||
Assets | ||||
Loans and receivables | 96,689 | 85,521 | 82,485 | |
Held-to-maturity investments | 1,902 | 123 | ||
Total certain assets | 110,088 | 91,086 | 94,384 | |
Liabilities | ||||
Financial liabilities at amortized cost | 130,672 | 125,774 | 123,214 | |
Difference (assets less liabilities) | (20,584) | (34,688) | (28,830) | |
Undiscounted financial liabilities at amortised cost | 128,920 | 107,254 | 121,939 | |
1 to 3 years | ||||
Assets | ||||
Loans and receivables | 119,541 | 113,387 | 111,322 | |
Held-to-maturity investments | 122 | 2,075 | 2,013 | |
Total certain assets | 142,110 | 139,036 | 132,053 | |
Liabilities | ||||
Financial liabilities at amortized cost | 136,487 | 115,591 | 147,349 | |
Difference (assets less liabilities) | 5,623 | 23,445 | (15,296) | |
Undiscounted financial liabilities at amortised cost | 119,082 | 110,293 | 145,559 | |
3 to 5 years | ||||
Assets | ||||
Loans and receivables | 112,786 | 93,816 | 102,462 | |
Held-to-maturity investments | 294 | 342 | 140 | |
Total certain assets | 124,244 | 108,058 | 121,139 | |
Liabilities | ||||
Financial liabilities at amortized cost | 83,542 | 69,467 | 49,975 | |
Difference (assets less liabilities) | 40,702 | 38,591 | 71,164 | |
Undiscounted financial liabilities at amortised cost | 75,681 | 69,245 | 48,896 | |
More than five years | ||||
Assets | ||||
Loans and receivables | 405,093 | 389,623 | 404,499 | |
Held-to-maturity investments | 11,173 | 11,928 | 2,202 | |
Total certain assets | 495,200 | 461,729 | 467,905 | |
Liabilities | ||||
Financial liabilities at amortized cost | 74,664 | 90,468 | 101,558 | |
Difference (assets less liabilities) | 420,536 | 371,261 | 366,347 | |
Undiscounted financial liabilities at amortised cost | € 73,829 | € 88,110 | € 99,298 | |
Cash and deposits at central banks | ||||
Liabilities | ||||
Average interest rate - financial assets | 0.53% | 0.98% | 0.79% | |
Debt instruments | ||||
Assets | ||||
Financial assets available-for-sale | € 128,481 | € 111,287 | € 117,187 | |
Loans and receivables | 17,543 | 13,237 | 10,907 | |
Held-to-maturity investments | € 13,491 | € 14,468 | € 4,355 | |
Liabilities | ||||
Average interest rate - financial assets available-for-sale | 4.34% | 4.33% | 3.87% | |
Average interest rate - financial assets | 3.06% | 6.31% | 5.40% | |
Debt instruments | On demand | ||||
Assets | ||||
Financial assets available-for-sale | € 326 | € 200 | € 172 | |
Loans and receivables | 249 | 248 | 15 | |
Debt instruments | 1 month | ||||
Assets | ||||
Financial assets available-for-sale | 2,467 | 5,986 | 4,268 | |
Loans and receivables | 1,381 | 1,628 | 1,383 | |
Debt instruments | 3 months | ||||
Assets | ||||
Financial assets available-for-sale | 1,646 | 2,007 | 2,389 | |
Loans and receivables | 997 | 708 | 1,083 | |
Debt instruments | 3 to 12 months | ||||
Assets | ||||
Financial assets available-for-sale | 11,497 | 5,442 | 11,899 | |
Loans and receivables | 2,073 | 2,246 | 1,143 | |
Debt instruments | 1 to 3 years | ||||
Assets | ||||
Financial assets available-for-sale | 22,447 | 23,574 | 18,718 | |
Loans and receivables | 2,317 | 2,125 | 1,764 | |
Debt instruments | 3 to 5 years | ||||
Assets | ||||
Financial assets available-for-sale | 11,164 | 13,900 | 18,537 | |
Loans and receivables | 1,656 | 1,918 | 1,241 | |
Debt instruments | More than five years | ||||
Assets | ||||
Financial assets available-for-sale | 78,934 | 60,178 | 61,204 | |
Loans and receivables | 8,870 | 4,364 | 4,278 | |
Loans and advances | ||||
Assets | ||||
Loans and receivables | 885,470 | 826,767 | 825,249 | |
Loans and advances | On demand | ||||
Assets | ||||
Loans and receivables | 56,751 | 52,264 | 27,855 | |
Loans and advances | 1 month | ||||
Assets | ||||
Loans and receivables | 57,305 | 46,792 | 56,283 | |
Loans and advances | 3 months | ||||
Assets | ||||
Loans and receivables | 52,221 | 56,017 | 48,769 | |
Loans and advances | 3 to 12 months | ||||
Assets | ||||
Loans and receivables | 94,616 | 83,275 | 81,342 | |
Loans and advances | 1 to 3 years | ||||
Assets | ||||
Loans and receivables | 117,224 | 111,262 | 109,558 | |
Loans and advances | 3 to 5 years | ||||
Assets | ||||
Loans and receivables | 111,130 | 91,898 | 101,221 | |
Loans and advances | More than five years | ||||
Assets | ||||
Loans and receivables | 396,223 | 385,259 | 400,221 | |
Loans and advances - Central banks | ||||
Assets | ||||
Loans and receivables | € 26,278 | € 27,973 | € 17,337 | |
Liabilities | ||||
Average interest rate - financial assets | 5.10% | 6.54% | 7.45% | |
Loans and advances - Central banks | 1 month | ||||
Assets | ||||
Loans and receivables | € 3,948 | € 941 | € 6,305 | |
Loans and advances - Central banks | 3 months | ||||
Assets | ||||
Loans and receivables | 1,446 | 11,499 | 5,007 | |
Loans and advances - Central banks | 3 to 12 months | ||||
Assets | ||||
Loans and receivables | 4,811 | 1,117 | 2,120 | |
Loans and advances - Central banks | 1 to 3 years | ||||
Assets | ||||
Loans and receivables | 47 | |||
Loans and advances - Central banks | 3 to 5 years | ||||
Assets | ||||
Loans and receivables | 23 | 3,835 | ||
Loans and advances - Central banks | More than five years | ||||
Assets | ||||
Loans and receivables | 16,073 | 14,393 | 23 | |
Loans and advances - Credit institutions | ||||
Assets | ||||
Loans and receivables | € 39,567 | € 35,424 | € 37,438 | |
Liabilities | ||||
Average interest rate - financial assets | 1.26% | 1.96% | 1.55% | |
Loans and advances - Credit institutions | On demand | ||||
Assets | ||||
Loans and receivables | € 18,242 | € 16,632 | € 6,879 | |
Loans and advances - Credit institutions | 1 month | ||||
Assets | ||||
Loans and receivables | 4,198 | 4,938 | 11,974 | |
Loans and advances - Credit institutions | 3 months | ||||
Assets | ||||
Loans and receivables | 3,445 | 2,210 | 4,115 | |
Loans and advances - Credit institutions | 3 to 12 months | ||||
Assets | ||||
Loans and receivables | 5,708 | 2,220 | 5,294 | |
Loans and advances - Credit institutions | 1 to 3 years | ||||
Assets | ||||
Loans and receivables | 5,694 | 4,435 | 3,897 | |
Loans and advances - Credit institutions | 3 to 5 years | ||||
Assets | ||||
Loans and receivables | 939 | 1,268 | 1,240 | |
Loans and advances - Credit institutions | More than five years | ||||
Assets | ||||
Loans and receivables | 1,341 | 3,721 | 4,039 | |
Loans and advances - Customers | ||||
Assets | ||||
Loans and receivables | € 819,625 | € 763,370 | € 770,474 | |
Liabilities | ||||
Average interest rate - financial assets | 5.44% | 5.79% | 5.99% | |
Loans and advances - Customers | On demand | ||||
Assets | ||||
Loans and receivables | € 38,509 | € 35,632 | € 20,976 | |
Loans and advances - Customers | 1 month | ||||
Assets | ||||
Loans and receivables | 49,159 | 40,913 | 38,004 | |
Loans and advances - Customers | 3 months | ||||
Assets | ||||
Loans and receivables | 47,330 | 42,308 | 39,647 | |
Loans and advances - Customers | 3 to 12 months | ||||
Assets | ||||
Loans and receivables | 84,097 | 79,938 | 73,928 | |
Loans and advances - Customers | 1 to 3 years | ||||
Assets | ||||
Loans and receivables | 111,530 | 106,827 | 105,614 | |
Loans and advances - Customers | 3 to 5 years | ||||
Assets | ||||
Loans and receivables | 110,191 | 90,607 | 96,146 | |
Loans and advances - Customers | More than five years | ||||
Assets | ||||
Loans and receivables | 378,809 | 367,145 | 396,159 | |
Deposits | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 883,320 | 791,646 | 795,679 | |
Undiscounted financial liabilities at amortised cost | 878,077 | 789,637 | 792,465 | |
Deposits | On demand | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 527,499 | 471,494 | 403,579 | |
Undiscounted financial liabilities at amortised cost | 526,059 | 467,529 | 401,813 | |
Deposits | 1 month | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 59,325 | 79,446 | 122,234 | |
Undiscounted financial liabilities at amortised cost | 57,490 | 95,231 | 121,750 | |
Deposits | 3 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 66,667 | 42,583 | 47,277 | |
Undiscounted financial liabilities at amortised cost | 89,249 | 49,246 | 47,094 | |
Deposits | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 100,658 | 86,006 | 88,263 | |
Undiscounted financial liabilities at amortised cost | 99,780 | 68,830 | 87,916 | |
Deposits | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 81,169 | 69,775 | 88,808 | |
Undiscounted financial liabilities at amortised cost | 64,977 | 66,255 | 88,558 | |
Deposits | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 39,719 | 34,505 | 14,462 | |
Undiscounted financial liabilities at amortised cost | 32,365 | 34,781 | 14,406 | |
Deposits | More than five years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 8,283 | 7,837 | 31,056 | |
Undiscounted financial liabilities at amortised cost | 8,157 | 7,765 | 30,927 | |
Deposits - Central banks | ||||
Liabilities | ||||
Financial liabilities at amortized cost | € 71,414 | € 44,112 | € 38,872 | |
Average interest rate - financial liabilities | 0.24% | 0.26% | 0.17% | |
Undiscounted financial liabilities at amortised cost | € 71,512 | € 44,099 | € 38,851 | |
Deposits - Central banks | On demand | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 450 | 422 | 1,580 | |
Undiscounted financial liabilities at amortised cost | 451 | 422 | 1,579 | |
Deposits - Central banks | 1 month | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 2,015 | 2,007 | 3,874 | |
Undiscounted financial liabilities at amortised cost | 2,018 | 2,006 | 3,872 | |
Deposits - Central banks | 3 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 681 | 633 | 2,348 | |
Undiscounted financial liabilities at amortised cost | 23,801 | 633 | 2,347 | |
Deposits - Central banks | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 2,715 | 101 | ||
Undiscounted financial liabilities at amortised cost | 2,719 | 101 | ||
Deposits - Central banks | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 42,988 | 20,027 | 31,070 | |
Undiscounted financial liabilities at amortised cost | 27,138 | 20,021 | 31,053 | |
Deposits - Central banks | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 22,565 | 20,922 | ||
Undiscounted financial liabilities at amortised cost | 15,385 | 20,916 | ||
Deposits - Credit institutions | ||||
Liabilities | ||||
Financial liabilities at amortized cost | € 91,300 | € 89,764 | € 109,209 | |
Average interest rate - financial liabilities | 2.40% | 3.97% | 2.64% | |
Undiscounted financial liabilities at amortised cost | € 89,147 | € 89,639 | € 108,873 | |
Deposits - Credit institutions | On demand | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 20,870 | 16,649 | 7,043 | |
Undiscounted financial liabilities at amortised cost | 20,378 | 16,676 | 7,021 | |
Deposits - Credit institutions | 1 month | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 15,263 | 16,357 | 30,187 | |
Undiscounted financial liabilities at amortised cost | 14,903 | 15,789 | 30,094 | |
Deposits - Credit institutions | 3 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 13,350 | 10,603 | 11,801 | |
Undiscounted financial liabilities at amortised cost | 13,035 | 15,500 | 11,765 | |
Deposits - Credit institutions | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 25,406 | 23,313 | 31,843 | |
Undiscounted financial liabilities at amortised cost | 24,807 | 20,057 | 31,745 | |
Deposits - Credit institutions | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 6,501 | 13,540 | 15,926 | |
Undiscounted financial liabilities at amortised cost | 6,348 | 12,364 | 15,877 | |
Deposits - Credit institutions | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 5,247 | 5,560 | 6,295 | |
Undiscounted financial liabilities at amortised cost | 5,123 | 5,517 | 6,275 | |
Deposits - Credit institutions | More than five years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 4,663 | 3,742 | 6,114 | |
Undiscounted financial liabilities at amortised cost | 4,553 | 3,736 | 6,095 | |
Deposits - Customers | ||||
Liabilities | ||||
Financial liabilities at amortized cost | € 720,606 | € 657,770 | € 647,598 | |
Average interest rate - financial liabilities | 2.00% | 2.25% | 2.48% | |
Undiscounted financial liabilities at amortised cost | € 717,418 | € 655,899 | € 644,741 | |
Deposits - Customers | On demand | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 506,179 | 454,423 | 394,956 | |
Undiscounted financial liabilities at amortised cost | 505,230 | 450,431 | 393,213 | |
Deposits - Customers | 1 month | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 42,047 | 61,082 | 88,173 | |
Undiscounted financial liabilities at amortised cost | 40,569 | 77,436 | 87,784 | |
Deposits - Customers | 3 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 52,636 | 31,347 | 33,128 | |
Undiscounted financial liabilities at amortised cost | 52,413 | 33,113 | 32,982 | |
Deposits - Customers | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 72,537 | 62,592 | 56,420 | |
Undiscounted financial liabilities at amortised cost | 72,254 | 48,672 | 56,171 | |
Deposits - Customers | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 31,680 | 36,208 | 41,812 | |
Undiscounted financial liabilities at amortised cost | 31,491 | 33,870 | 41,628 | |
Deposits - Customers | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 11,907 | 8,023 | 8,167 | |
Undiscounted financial liabilities at amortised cost | 11,857 | 8,348 | 8,131 | |
Deposits - Customers | More than five years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 3,620 | 4,095 | 24,942 | |
Undiscounted financial liabilities at amortised cost | 3,604 | 4,029 | 24,832 | |
Marketable debt securities | ||||
Liabilities | ||||
Financial liabilities at amortized cost | € 214,910 | € 226,078 | € 222,787 | |
Average interest rate - financial liabilities | 2.56% | 3.68% | 3.70% | |
Undiscounted financial liabilities at amortised cost | € 212,545 | € 219,346 | € 216,435 | |
Marketable debt securities | On demand | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 105 | 642 | 134 | |
Undiscounted financial liabilities at amortised cost | 1,486 | 623 | 130 | |
Marketable debt securities | 1 month | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 11,927 | 12,861 | 13,142 | |
Undiscounted financial liabilities at amortised cost | 11,735 | 13,582 | 12,806 | |
Marketable debt securities | 3 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 11,638 | 14,225 | 14,900 | |
Undiscounted financial liabilities at amortised cost | 11,387 | 12,705 | 14,511 | |
Marketable debt securities | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 29,286 | 39,465 | 34,303 | |
Undiscounted financial liabilities at amortised cost | 28,412 | 38,119 | 33,375 | |
Marketable debt securities | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 54,202 | 43,985 | 57,880 | |
Undiscounted financial liabilities at amortised cost | 52,989 | 42,201 | 56,340 | |
Marketable debt securities | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 43,395 | 34,520 | 34,998 | |
Undiscounted financial liabilities at amortised cost | 42,888 | 34,022 | 33,975 | |
Marketable debt securities | More than five years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 64,357 | 80,380 | 67,430 | |
Undiscounted financial liabilities at amortised cost | 63,648 | 78,094 | 65,299 | |
Other financial liabilities | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 27,839 | 26,516 | 20,877 | |
Undiscounted financial liabilities at amortised cost | 27,839 | 26,516 | 20,877 | |
Other financial liabilities | On demand | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 10,000 | 7,939 | 4,212 | |
Undiscounted financial liabilities at amortised cost | 10,001 | 7,939 | 4,212 | |
Other financial liabilities | 1 month | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 3,909 | 3,276 | 4,955 | |
Undiscounted financial liabilities at amortised cost | 3,908 | 3,645 | 4,955 | |
Other financial liabilities | 3 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 9,634 | 10,474 | 6,814 | |
Undiscounted financial liabilities at amortised cost | 9,634 | 10,097 | 6,814 | |
Other financial liabilities | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 728 | 303 | 648 | |
Undiscounted financial liabilities at amortised cost | 728 | 305 | 648 | |
Other financial liabilities | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 1,116 | 1,831 | 661 | |
Undiscounted financial liabilities at amortised cost | 1,116 | 1,837 | 661 | |
Other financial liabilities | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 428 | 442 | 515 | |
Undiscounted financial liabilities at amortised cost | 428 | 442 | 515 | |
Other financial liabilities | More than five years | ||||
Liabilities | ||||
Financial liabilities at amortized cost | 2,024 | 2,251 | 3,072 | |
Undiscounted financial liabilities at amortised cost | € 2,024 | € 2,251 | € 3,072 |
Other disclosures - Contractual
Other disclosures - Contractual Maturities of Other Financial Assets and Liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Financial assets held for trading | € 125,458 | € 148,187 | € 146,346 | |
Financial assets designated at fair value through profit or loss | 34,782 | 31,609 | 45,043 | |
Financial assets available-for-sale | 133,271 | 116,774 | 122,036 | |
Hedging derivatives, Assets | 8,537 | 10,377 | 7,727 | |
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Assets | 1,287 | 1,481 | 1,379 | |
TOTAL FINANCIAL ASSETS | 174,854 | |||
Liabilities | ||||
Financial liabilities held for trading | 107,624 | 108,765 | 105,218 | |
Financial liabilities designated at fair value through profit or loss | 59,616 | 40,263 | 54,768 | |
Hedging derivatives, Liabilities | 8,044 | 8,156 | 8,937 | |
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Liabilities | 330 | 448 | 174 | |
TOTAL LIABILITIES | 175,614 | |||
Contingent commitments | 237,970 | 231,962 | 221,738 | |
Contingent liabilities | 49,117 | 44,434 | 39,834 | |
MEMORANDUM ITEMS | 287,087 | |||
1 month | ||||
Assets | ||||
Financial assets held for trading | 11,147 | |||
Financial assets designated at fair value through profit or loss | 9,998 | |||
Hedging derivatives, Assets | 255 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Assets | 57 | |||
TOTAL FINANCIAL ASSETS | 21,457 | |||
Liabilities | ||||
Financial liabilities held for trading | 38,976 | |||
Financial liabilities designated at fair value through profit or loss | 30,152 | |||
Hedging derivatives, Liabilities | 40 | |||
TOTAL LIABILITIES | 69,168 | |||
Contingent commitments | 87,280 | |||
Contingent liabilities | 17,065 | |||
MEMORANDUM ITEMS | 104,345 | |||
3 months | ||||
Assets | ||||
Financial assets held for trading | 5,887 | |||
Financial assets designated at fair value through profit or loss | 4,485 | |||
Hedging derivatives, Assets | 162 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Assets | 6 | |||
TOTAL FINANCIAL ASSETS | 10,540 | |||
Liabilities | ||||
Financial liabilities held for trading | 4,073 | |||
Financial liabilities designated at fair value through profit or loss | 5,166 | |||
Hedging derivatives, Liabilities | 79 | |||
TOTAL LIABILITIES | 9,318 | |||
Contingent commitments | 14,165 | |||
Contingent liabilities | 5,059 | |||
MEMORANDUM ITEMS | 19,224 | |||
3 to 12 months | ||||
Assets | ||||
Financial assets held for trading | 21,896 | |||
Financial assets designated at fair value through profit or loss | 5,032 | |||
Hedging derivatives, Assets | 519 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Assets | 33 | |||
TOTAL FINANCIAL ASSETS | 27,480 | |||
Liabilities | ||||
Financial liabilities held for trading | 7,177 | |||
Financial liabilities designated at fair value through profit or loss | 1,635 | |||
Hedging derivatives, Liabilities | 180 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Liabilities | (2) | |||
TOTAL LIABILITIES | 8,990 | |||
Contingent commitments | 54,069 | |||
Contingent liabilities | 12,599 | |||
MEMORANDUM ITEMS | 66,668 | |||
1 to 3 years | ||||
Assets | ||||
Financial assets held for trading | 24,178 | |||
Financial assets designated at fair value through profit or loss | 3,402 | |||
Hedging derivatives, Assets | 1,113 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Assets | 151 | |||
TOTAL FINANCIAL ASSETS | 28,844 | |||
Liabilities | ||||
Financial liabilities held for trading | 17,913 | |||
Financial liabilities designated at fair value through profit or loss | 1,251 | |||
Hedging derivatives, Liabilities | 493 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Liabilities | (1) | |||
TOTAL LIABILITIES | 19,656 | |||
Contingent commitments | 32,664 | |||
Contingent liabilities | 10,502 | |||
MEMORANDUM ITEMS | 43,166 | |||
3 to 5 years | ||||
Assets | ||||
Financial assets held for trading | 19,563 | |||
Financial assets designated at fair value through profit or loss | 3,922 | |||
Hedging derivatives, Assets | 1,583 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Assets | 59 | |||
TOTAL FINANCIAL ASSETS | 25,127 | |||
Liabilities | ||||
Financial liabilities held for trading | 16,989 | |||
Financial liabilities designated at fair value through profit or loss | 1,120 | |||
Hedging derivatives, Liabilities | 677 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Liabilities | 31 | |||
TOTAL LIABILITIES | 18,817 | |||
Contingent commitments | 34,011 | |||
Contingent liabilities | 2,326 | |||
MEMORANDUM ITEMS | 36,337 | |||
More than five years | ||||
Assets | ||||
Financial assets held for trading | 42,787 | |||
Financial assets designated at fair value through profit or loss | 7,943 | |||
Hedging derivatives, Assets | 4,905 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Assets | 981 | |||
TOTAL FINANCIAL ASSETS | 61,406 | |||
Liabilities | ||||
Financial liabilities held for trading | 22,496 | |||
Financial liabilities designated at fair value through profit or loss | 20,292 | |||
Hedging derivatives, Liabilities | 6,575 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk, Liabilities | 302 | |||
TOTAL LIABILITIES | 49,665 | |||
Contingent commitments | 15,781 | |||
Contingent liabilities | 1,566 | |||
MEMORANDUM ITEMS | 17,347 | |||
Derivatives | ||||
Assets | ||||
Financial assets held for trading | 57,243 | 72,043 | 76,724 | |
Derivatives | 1 month | ||||
Assets | ||||
Financial assets held for trading | 4,026 | |||
Derivatives | 3 months | ||||
Assets | ||||
Financial assets held for trading | 1,691 | |||
Derivatives | 3 to 12 months | ||||
Assets | ||||
Financial assets held for trading | 5,352 | |||
Derivatives | 1 to 3 years | ||||
Assets | ||||
Financial assets held for trading | 17,233 | |||
Derivatives | 3 to 5 years | ||||
Assets | ||||
Financial assets held for trading | 14,895 | |||
Derivatives | More than five years | ||||
Assets | ||||
Financial assets held for trading | 14,046 | |||
Equity instruments | ||||
Assets | ||||
Financial assets held for trading | 21,353 | 14,497 | 18,225 | |
Financial assets designated at fair value through profit or loss | 933 | 546 | 630 | |
Financial assets available-for-sale | 4,790 | 5,487 | 4,849 | € 5,001 |
Equity instruments | More than five years | ||||
Assets | ||||
Financial assets held for trading | 21,353 | |||
Financial assets designated at fair value through profit or loss | 933 | |||
Financial assets available-for-sale | 4,790 | |||
Debt instruments | ||||
Assets | ||||
Financial assets held for trading | 36,351 | 48,922 | 43,964 | |
Financial assets designated at fair value through profit or loss | 3,485 | 3,398 | 3,717 | |
Financial assets available-for-sale | 128,481 | 111,287 | 117,187 | |
Debt instruments | On demand | ||||
Assets | ||||
Financial assets available-for-sale | 326 | 200 | 172 | |
Debt instruments | 1 month | ||||
Assets | ||||
Financial assets held for trading | 4,253 | |||
Financial assets designated at fair value through profit or loss | 19 | |||
Financial assets available-for-sale | 2,467 | 5,986 | 4,268 | |
Debt instruments | 3 months | ||||
Assets | ||||
Financial assets held for trading | 1,706 | |||
Financial assets designated at fair value through profit or loss | 120 | |||
Financial assets available-for-sale | 1,646 | 2,007 | 2,389 | |
Debt instruments | 3 to 12 months | ||||
Assets | ||||
Financial assets held for trading | 11,850 | |||
Financial assets designated at fair value through profit or loss | 850 | |||
Financial assets available-for-sale | 11,497 | 5,442 | 11,899 | |
Debt instruments | 1 to 3 years | ||||
Assets | ||||
Financial assets held for trading | 6,529 | |||
Financial assets designated at fair value through profit or loss | 667 | |||
Financial assets available-for-sale | 22,447 | 23,574 | 18,718 | |
Debt instruments | 3 to 5 years | ||||
Assets | ||||
Financial assets held for trading | 4,662 | |||
Financial assets designated at fair value through profit or loss | 579 | |||
Financial assets available-for-sale | 11,164 | 13,900 | 18,537 | |
Debt instruments | More than five years | ||||
Assets | ||||
Financial assets held for trading | 7,351 | |||
Financial assets designated at fair value through profit or loss | 1,250 | |||
Financial assets available-for-sale | 78,934 | 60,178 | 61,204 | |
Loans and advances | ||||
Assets | ||||
Financial assets held for trading | 10,511 | 12,725 | 7,433 | |
Financial assets designated at fair value through profit or loss | 30,364 | 27,665 | 40,696 | |
Loans and advances | 1 month | ||||
Assets | ||||
Financial assets held for trading | 2,868 | |||
Financial assets designated at fair value through profit or loss | 9,979 | |||
Loans and advances | 3 months | ||||
Assets | ||||
Financial assets held for trading | 2,490 | |||
Financial assets designated at fair value through profit or loss | 4,365 | |||
Loans and advances | 3 to 12 months | ||||
Assets | ||||
Financial assets held for trading | 4,694 | |||
Financial assets designated at fair value through profit or loss | 4,182 | |||
Loans and advances | 1 to 3 years | ||||
Assets | ||||
Financial assets held for trading | 416 | |||
Financial assets designated at fair value through profit or loss | 2,735 | |||
Loans and advances | 3 to 5 years | ||||
Assets | ||||
Financial assets held for trading | 6 | |||
Financial assets designated at fair value through profit or loss | 3,343 | |||
Loans and advances | More than five years | ||||
Assets | ||||
Financial assets held for trading | 37 | |||
Financial assets designated at fair value through profit or loss | 5,760 | |||
Loans and advances - Credit institutions | ||||
Assets | ||||
Financial assets held for trading | 1,696 | 3,221 | 1,352 | |
Financial assets designated at fair value through profit or loss | 9,889 | 10,069 | 26,403 | |
Loans and advances - Credit institutions | 1 month | ||||
Assets | ||||
Financial assets held for trading | 1,216 | |||
Financial assets designated at fair value through profit or loss | 7,341 | |||
Loans and advances - Credit institutions | 3 months | ||||
Assets | ||||
Financial assets held for trading | 1 | |||
Financial assets designated at fair value through profit or loss | 2,020 | |||
Loans and advances - Credit institutions | 3 to 12 months | ||||
Assets | ||||
Financial assets held for trading | 63 | |||
Financial assets designated at fair value through profit or loss | 183 | |||
Loans and advances - Credit institutions | 1 to 3 years | ||||
Assets | ||||
Financial assets held for trading | 416 | |||
Financial assets designated at fair value through profit or loss | 32 | |||
Loans and advances - Credit institutions | 3 to 5 years | ||||
Assets | ||||
Financial assets designated at fair value through profit or loss | 77 | |||
Loans and advances - Credit institutions | More than five years | ||||
Assets | ||||
Financial assets designated at fair value through profit or loss | 236 | |||
Loans and advances - Customers | ||||
Assets | ||||
Financial assets held for trading | 8,815 | 9,504 | 6,081 | |
Financial assets designated at fair value through profit or loss | 20,475 | 17,596 | 14,293 | |
Loans and advances - Customers | 1 month | ||||
Assets | ||||
Financial assets held for trading | 1,652 | |||
Financial assets designated at fair value through profit or loss | 2,638 | |||
Loans and advances - Customers | 3 months | ||||
Assets | ||||
Financial assets held for trading | 2,489 | |||
Financial assets designated at fair value through profit or loss | 2,345 | |||
Loans and advances - Customers | 3 to 12 months | ||||
Assets | ||||
Financial assets held for trading | 4,631 | |||
Financial assets designated at fair value through profit or loss | 3,999 | |||
Loans and advances - Customers | 1 to 3 years | ||||
Assets | ||||
Financial assets designated at fair value through profit or loss | 2,703 | |||
Loans and advances - Customers | 3 to 5 years | ||||
Assets | ||||
Financial assets held for trading | 6 | |||
Financial assets designated at fair value through profit or loss | 3,266 | |||
Loans and advances - Customers | More than five years | ||||
Assets | ||||
Financial assets held for trading | 37 | |||
Financial assets designated at fair value through profit or loss | 5,524 | |||
Derivatives | ||||
Liabilities | ||||
Financial liabilities held for trading | 57,892 | 74,369 | 76,414 | |
Derivatives | 1 month | ||||
Liabilities | ||||
Financial liabilities held for trading | 3,698 | |||
Derivatives | 3 months | ||||
Liabilities | ||||
Financial liabilities held for trading | 2,070 | |||
Derivatives | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities held for trading | 5,951 | |||
Derivatives | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities held for trading | 15,634 | |||
Derivatives | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities held for trading | 14,897 | |||
Derivatives | More than five years | ||||
Liabilities | ||||
Financial liabilities held for trading | 15,642 | |||
Short positions | ||||
Liabilities | ||||
Financial liabilities held for trading | 20,979 | 23,005 | 17,362 | |
Short positions | 1 month | ||||
Liabilities | ||||
Financial liabilities held for trading | 8,060 | |||
Short positions | 3 months | ||||
Liabilities | ||||
Financial liabilities held for trading | 468 | |||
Short positions | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities held for trading | 1,226 | |||
Short positions | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities held for trading | 2,279 | |||
Short positions | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities held for trading | 2,092 | |||
Short positions | More than five years | ||||
Liabilities | ||||
Financial liabilities held for trading | 6,854 | |||
Deposits | ||||
Liabilities | ||||
Financial liabilities held for trading | 28,753 | 11,391 | 11,442 | |
Financial liabilities designated at fair value through profit or loss | 55,971 | 37,472 | 51,394 | |
Deposits | 1 month | ||||
Liabilities | ||||
Financial liabilities held for trading | 27,218 | |||
Financial liabilities designated at fair value through profit or loss | 30,083 | |||
Deposits | 3 months | ||||
Liabilities | ||||
Financial liabilities held for trading | 1,535 | |||
Financial liabilities designated at fair value through profit or loss | 4,730 | |||
Deposits | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 1,065 | |||
Deposits | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 191 | |||
Deposits | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 425 | |||
Deposits | More than five years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 19,477 | |||
Deposits - Central banks | ||||
Liabilities | ||||
Financial liabilities held for trading | 282 | 1,351 | 2,178 | |
Financial liabilities designated at fair value through profit or loss | 8,860 | 9,112 | 16,486 | |
Deposits - Central banks | 1 month | ||||
Liabilities | ||||
Financial liabilities held for trading | 282 | |||
Financial liabilities designated at fair value through profit or loss | 6,038 | |||
Deposits - Central banks | 3 months | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 2,077 | |||
Deposits - Central banks | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 745 | |||
Deposits - Credit institutions | ||||
Liabilities | ||||
Financial liabilities held for trading | 292 | 44 | 77 | |
Financial liabilities designated at fair value through profit or loss | 18,166 | 5,015 | 8,551 | |
Deposits - Credit institutions | 1 month | ||||
Liabilities | ||||
Financial liabilities held for trading | 292 | |||
Financial liabilities designated at fair value through profit or loss | 16,521 | |||
Deposits - Credit institutions | 3 months | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 1,485 | |||
Deposits - Credit institutions | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 63 | |||
Deposits - Credit institutions | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 97 | |||
Deposits - Customers | ||||
Liabilities | ||||
Financial liabilities held for trading | 28,179 | 9,996 | 9,187 | |
Financial liabilities designated at fair value through profit or loss | 28,945 | 23,345 | 26,357 | |
Deposits - Customers | 1 month | ||||
Liabilities | ||||
Financial liabilities held for trading | 26,644 | |||
Financial liabilities designated at fair value through profit or loss | 7,524 | |||
Deposits - Customers | 3 months | ||||
Liabilities | ||||
Financial liabilities held for trading | 1,535 | |||
Financial liabilities designated at fair value through profit or loss | 1,168 | |||
Deposits - Customers | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 257 | |||
Deposits - Customers | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 191 | |||
Deposits - Customers | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 328 | |||
Deposits - Customers | More than five years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 19,477 | |||
Marketable debt securities | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 3,056 | € 2,791 | 3,373 | |
Marketable debt securities | 1 month | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 69 | |||
Marketable debt securities | 3 months | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 436 | |||
Marketable debt securities | 3 to 12 months | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 570 | |||
Marketable debt securities | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 471 | |||
Marketable debt securities | 3 to 5 years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 695 | |||
Marketable debt securities | More than five years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 815 | |||
Other financial liabilities | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | 589 | € 1 | ||
Other financial liabilities | 1 to 3 years | ||||
Liabilities | ||||
Financial liabilities designated at fair value through profit or loss | € 589 |
Other disclosures - Foreign Cur
Other disclosures - Foreign Currency Balances (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash, cash balances at Central Banks and other deposits on demand | € 110,995 | € 76,454 | € 77,751 | € 69,853 |
Financial assets held for trading | 125,458 | 148,187 | 146,346 | |
Financial assets designated at fair value through profit or loss | 34,782 | 31,609 | 45,043 | |
Financial assets available-for-sale | 133,271 | 116,774 | 122,036 | |
Loans and receivables | 903,013 | 840,004 | 836,156 | |
INVESTMENTS HELD-TO-MATURITY | 13,491 | 14,468 | 4,355 | |
Investments | 6,184 | 4,836 | 3,251 | € 3,471 |
Tangible assets | 22,974 | 23,286 | 25,320 | |
Intangible assets | 28,683 | 29,421 | 29,430 | |
Other assets | 9,766 | 8,447 | 7,675 | |
TOTAL ASSETS | 1,444,305 | 1,339,125 | 1,340,260 | |
Liabilities | ||||
Financial liabilities held for trading | 107,624 | 108,765 | 105,218 | |
Financial liabilities designated at fair value through profit or loss | 59,616 | 40,263 | 54,768 | |
Financial liabilities at amortized cost | 1,126,069 | 1,044,240 | 1,039,343 | |
LIABILITIES UNDER INSURANCE CONTRACTS | 1,117 | 652 | 627 | |
Other liabilities | 12,591 | 11,070 | 10,221 | |
TOTAL LIABILITIES | 1,337,472 | 1,236,426 | 1,241,507 | |
Non-Euro | ||||
Assets | ||||
Cash, cash balances at Central Banks and other deposits on demand | 67,025 | 60,423 | 65,886 | |
Financial assets held for trading | 82,004 | 100,083 | 93,699 | |
Financial assets designated at fair value through profit or loss | 7,322 | 6,965 | 7,367 | |
Financial assets available-for-sale | 65,691 | 68,370 | 68,012 | |
Loans and receivables | 553,301 | 571,829 | 569,013 | |
INVESTMENTS HELD-TO-MATURITY | 11,490 | 12,272 | 2,342 | |
Investments | 1,121 | 1,308 | 1,191 | |
Tangible assets | 15,971 | 16,957 | 15,005 | |
Intangible assets | 23,499 | 26,338 | 26,377 | |
Other assets | 23,695 | 27,961 | 23,622 | |
TOTAL ASSETS | 851,119 | 892,506 | 872,514 | |
Liabilities | ||||
Financial liabilities held for trading | 76,459 | 70,958 | 66,576 | |
Financial liabilities designated at fair value through profit or loss | 21,766 | 16,667 | 21,546 | |
Financial liabilities at amortized cost | 638,680 | 678,542 | 668,014 | |
LIABILITIES UNDER INSURANCE CONTRACTS | 58 | 61 | 1 | |
Other liabilities | 20,989 | 23,169 | 22,626 | |
TOTAL LIABILITIES | € 757,952 | € 789,397 | € 778,763 |
Other disclosures - Fair value
Other disclosures - Fair value of financial assets (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying amount | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets | € 916,504 | € 854,472 | € 840,511 | |
Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 926,739 | 861,236 | 845,911 | |
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 10,994 | 11,529 | 4,310 | |
Level 2 | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 124,178 | 146,991 | 155,233 | |
Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 155,527 | 138,902 | 167,343 | |
Level 3 | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 1,363 | 1,349 | 2,481 | € 2,587 |
Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 760,218 | 710,805 | 674,258 | |
Loans and advances | Carrying amount | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets | 885,470 | 826,767 | 825,249 | |
Loans and advances | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 895,645 | 833,819 | 830,840 | |
Loans and advances | Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 141,839 | 127,224 | 158,010 | |
Loans and advances | Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 753,806 | 706,595 | 672,830 | |
Debt instruments | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets | 199,351 | 191,312 | 180,130 | |
Debt instruments | Carrying amount | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets | 31,034 | 27,705 | 15,262 | |
Debt instruments | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 31,094 | 27,417 | 15,071 | |
Debt instruments | Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 10,994 | 11,529 | 4,310 | |
Debt instruments | Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | 13,688 | 11,678 | 9,333 | |
Debt instruments | Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets at fair value | € 6,412 | € 4,210 | € 1,428 |
Other disclosures - Fair val282
Other disclosures - Fair value of financial liabilities (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying amount | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities | € 1,126,069 | € 1,044,240 | € 1,039,343 | |
Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 1,132,771 | 1,047,930 | 1,041,841 | |
Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 52,896 | 43,306 | 62,539 | |
Level 2 | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 153,600 | 136,835 | 151,768 | |
Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 316,448 | 276,627 | 272,314 | |
Level 3 | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 196 | 86 | 324 | € 552 |
Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 763,427 | 727,997 | 706,988 | |
Deposits | Carrying amount | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities | 883,320 | 791,646 | 795,679 | |
Deposits | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 883,880 | 792,172 | 795,301 | |
Deposits | Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 177,147 | 90,271 | 109,491 | |
Deposits | Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 706,733 | 701,901 | 685,810 | |
Debt instruments and other financial liabilities | Carrying amount | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities | 242,749 | 252,594 | 243,664 | |
Debt instruments and other financial liabilities | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 248,891 | 255,758 | 246,540 | |
Debt instruments and other financial liabilities | Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 52,896 | 43,306 | 62,539 | |
Debt instruments and other financial liabilities | Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | 139,301 | 186,356 | 162,823 | |
Debt instruments and other financial liabilities | Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||||
Disclosure of fair value measurement of liabilities [line items] | ||||
Financial liabilities at fair value | € 56,694 | € 26,096 | € 21,178 |
Other disclosures - Fair val283
Other disclosures - Fair value available-for-sale (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets available-for-sale | € 133,271 | € 116,774 | € 122,036 | |
Equity instruments | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets available-for-sale | 4,790 | 5,487 | 4,849 | € 5,001 |
Equity instruments | At cost | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Financial assets available-for-sale | € 1,211 | € 1,349 | € 1,790 |
Other disclosures - Sovereign R
Other disclosures - Sovereign Risk in Europe (Details) - Sovereign Risk - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instruments | |||
Risk exposure | € 153,392 | € 127,930 | € 125,248 |
Off-balance-sheet government debt securities | 11,673 | 10,502 | 11,273 |
Off-balance-sheet other than derivatives contingent liabilities and commitments | 3,596 | 5,449 | 3,134 |
Loans and advances - Customers | |||
Debt Instruments | |||
Other comprehensive income | 31 | 27 | 31 |
Banco Popular Espanol, S.A. | Debt instruments | |||
Debt Instruments | |||
Risk exposure | 19,601 | ||
Spain | |||
Debt Instruments | |||
Risk exposure | 62,637 | 45,893 | 48,694 |
Off-balance-sheet government debt securities | 10,079 | 9,456 | 9,892 |
Off-balance-sheet other than derivatives contingent liabilities and commitments | 3,010 | 5,349 | 3,045 |
Spain | Loans and advances - Customers | |||
Debt Instruments | |||
Risk exposure | 16,470 | 14,127 | 13,993 |
Spain | Financial Assets Held For Trading And Financial Assets Designated At Fair Value Through Profit Or Loss | Debt instruments | |||
Debt Instruments | |||
Risk exposure - long positions | 6,940 | 8,943 | 7,647 |
Risk exposure effect of short positions | (2,012) | (4,086) | (2,446) |
Spain | Financial assets available for sale | Debt instruments | |||
Debt Instruments | |||
Risk exposure | 37,748 | 23,415 | 26,443 |
Spain | Loans and receivables category | Debt instruments | |||
Debt Instruments | |||
Risk exposure | 1,585 | 1,516 | 1,032 |
Spain | Held-to-maturity investments category | Debt instruments | |||
Debt Instruments | |||
Risk exposure | 1,906 | 1,978 | 2,025 |
Spain | Hedging derivatives, category | Other Than Credit Default Swaps | |||
Debt Instruments | |||
Risk exposure | (21) | (176) | (217) |
Portugal | |||
Debt Instruments | |||
Risk exposure | 8,817 | 7,072 | 10,007 |
Off-balance-sheet government debt securities | 1,163 | 717 | 605 |
Off-balance-sheet other than derivatives contingent liabilities and commitments | 146 | 91 | 89 |
Portugal | Loans and advances - Customers | |||
Debt Instruments | |||
Risk exposure | 3,309 | 930 | 1,071 |
Portugal | Financial Assets Held For Trading And Financial Assets Designated At Fair Value Through Profit Or Loss | Debt instruments | |||
Debt Instruments | |||
Risk exposure - long positions | 208 | 154 | 278 |
Risk exposure effect of short positions | (155) | (212) | (174) |
Portugal | Financial assets available for sale | Debt instruments | |||
Debt Instruments | |||
Risk exposure | 5,220 | 5,982 | 7,916 |
Portugal | Loans and receivables category | Debt instruments | |||
Debt Instruments | |||
Risk exposure | 232 | 214 | 916 |
Portugal | Held-to-maturity investments category | Debt instruments | |||
Debt Instruments | |||
Risk exposure | 3 | 4 | |
Portugal | Hedging derivatives, category | Credit default swap | |||
Debt Instruments | |||
Risk exposure | 1 | ||
Italy | |||
Debt Instruments | |||
Risk exposure | 6,108 | 1,952 | 2,717 |
Off-balance-sheet government debt securities | 431 | 329 | 776 |
Off-balance-sheet other than derivatives contingent liabilities and commitments | 440 | 9 | |
Italy | Loans and advances - Customers | |||
Debt Instruments | |||
Risk exposure | 16 | 7 | |
Italy | Financial Assets Held For Trading And Financial Assets Designated At Fair Value Through Profit Or Loss | Debt instruments | |||
Debt Instruments | |||
Risk exposure - long positions | 1,962 | 2,211 | 3,980 |
Risk exposure effect of short positions | (483) | (758) | (1,263) |
Italy | Financial assets available for sale | Debt instruments | |||
Debt Instruments | |||
Risk exposure | 4,613 | 492 | |
Italy | Hedging derivatives, category | Other Than Credit Default Swaps | |||
Debt Instruments | |||
Risk exposure | (5) | (2) | (4) |
Italy | Hedging derivatives, category | Credit default swap | |||
Debt Instruments | |||
Risk exposure | € 5 | € 2 | 4 |
Ireland | Hedging derivatives, category | Other Than Credit Default Swaps | |||
Debt Instruments | |||
Risk exposure | € 6 |
Other disclosures - Other Expos
Other disclosures - Other Exposure to Other Counterparties (Details) - Other Counterparties Risk - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and advances - Customers | |||
Debt Instruments | |||
Other comprehensive income and impairment losses recognized | € 10,653 | € 8,692 | € 11,641 |
Banco Popular Espanol, S.A. | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 83,625 | ||
Off-balance-sheet other than derivatives contingent liabilities and commitments | 15,460 | ||
Banco Popular Espanol, S.A. | Loans and advances - Customers | |||
Debt Instruments | |||
Other comprehensive income and impairment losses recognized | 3,986 | ||
Spain | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 262,286 | 172,033 | 178,805 |
Off-balance-sheet other than derivatives contingent liabilities and commitments | 81,072 | 64,522 | 64,159 |
Spain | Cash and deposits at central banks | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 36,091 | 9,640 | 2,349 |
Spain | Reverse repurchase agreements | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 6,932 | 8,550 | 15,739 |
Spain | Loans and advances - Customers | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 210,976 | 147,246 | 153,863 |
Spain | Financial Assets Held For Trading And Financial Assets Designated At Fair Value Through Profit Or Loss | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 623 | 1,223 | 1,545 |
Spain | Financial assets available for sale | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 4,784 | 4,663 | 4,166 |
Spain | Loans and receivables category | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 2,880 | 711 | 1,143 |
Spain | Hedging derivatives, category | Other Than Credit Default Swaps | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 2,299 | 2,977 | 3,367 |
Spain | Hedging derivatives, category | Credit default swap | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 2 | (16) | (42) |
Portugal | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 41,626 | 34,150 | 37,016 |
Off-balance-sheet other than derivatives contingent liabilities and commitments | 8,936 | 6,993 | 6,374 |
Portugal | Cash and deposits at central banks | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 761 | 655 | 2,938 |
Portugal | Reverse repurchase agreements | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 178 | ||
Portugal | Loans and advances - Customers | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 35,650 | 28,809 | 29,928 |
Portugal | Financial Assets Held For Trading And Financial Assets Designated At Fair Value Through Profit Or Loss | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 160 | 84 | 159 |
Portugal | Financial assets available for sale | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 764 | 426 | 992 |
Portugal | Loans and receivables category | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 4,007 | 3,936 | 2,999 |
Portugal | Held-to-maturity investments category | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 106 | 240 | |
Portugal | Hedging derivatives, category | Other Than Credit Default Swaps | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 1,416 | 1,600 | 1,729 |
Italy | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 13,896 | 8,568 | 7,698 |
Off-balance-sheet other than derivatives contingent liabilities and commitments | 4,310 | 3,364 | 3,746 |
Italy | Cash and deposits at central banks | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 17 | 26 | 5 |
Italy | Reverse repurchase agreements | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 2,416 | ||
Italy | Loans and advances - Customers | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 10,015 | 6,992 | 6,713 |
Italy | Financial Assets Held For Trading And Financial Assets Designated At Fair Value Through Profit Or Loss | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 438 | 818 | 167 |
Italy | Financial assets available for sale | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 1,010 | 732 | 813 |
Italy | Hedging derivatives, category | Other Than Credit Default Swaps | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 211 | 161 | 35 |
Italy | Hedging derivatives, category | Credit default swap | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 5 | 6 | 5 |
Greece | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 56 | 47 | 44 |
Off-balance-sheet other than derivatives contingent liabilities and commitments | 200 | 268 | 17 |
Greece | Loans and advances - Customers | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 56 | 47 | 44 |
Greece | Hedging derivatives, category | Other Than Credit Default Swaps | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 30 | 34 | 32 |
Ireland | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 3,061 | 1,503 | 1,076 |
Off-balance-sheet other than derivatives contingent liabilities and commitments | 714 | 369 | 387 |
Ireland | Loans and advances - Customers | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 1,981 | 985 | 734 |
Ireland | Financial Assets Held For Trading And Financial Assets Designated At Fair Value Through Profit Or Loss | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 20 | 45 | 63 |
Ireland | Financial assets available for sale | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 476 | 396 | 239 |
Ireland | Loans and receivables category | Debt instruments | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | 584 | 77 | 40 |
Ireland | Hedging derivatives, category | Other Than Credit Default Swaps | |||
Debt Instruments | |||
Risk exposure associated with instruments sharing characteristic | € 79 | € 690 | € 300 |
Other disclosures - Credit Defa
Other disclosures - Credit Default Swaps (Details) - Hedging derivatives, category - Credit default swap - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Spain | Other Counterparties Risk | |||
Debt Instruments | |||
Financial assets, at fair value | € 2 | € (16) | € (42) |
Spain | Long | Other Counterparties Risk | |||
Debt Instruments | |||
Notional amount | 324 | 534 | 724 |
Financial assets, at fair value | (3) | (3) | (3) |
Spain | Short | Other Counterparties Risk | |||
Debt Instruments | |||
Notional amount | 499 | 751 | 991 |
Financial assets, at fair value | 5 | (13) | (39) |
Spain | Net Short Position | Other Counterparties Risk | |||
Debt Instruments | |||
Notional amount | 175 | 217 | 267 |
Portugal | Sovereign Risk | |||
Debt Instruments | |||
Financial assets, at fair value | 1 | ||
Portugal | Long | Sovereign Risk | |||
Debt Instruments | |||
Notional amount | 25 | 28 | 28 |
Financial assets, at fair value | (1) | 1 | |
Portugal | Long | Other Counterparties Risk | |||
Debt Instruments | |||
Notional amount | 1 | 71 | |
Portugal | Short | Sovereign Risk | |||
Debt Instruments | |||
Notional amount | 128 | 290 | 187 |
Financial assets, at fair value | 1 | (1) | 1 |
Portugal | Short | Other Counterparties Risk | |||
Debt Instruments | |||
Notional amount | 1 | 6 | 77 |
Portugal | Net Short Position | Sovereign Risk | |||
Debt Instruments | |||
Notional amount | 103 | 262 | 159 |
Portugal | Net Short Position | Other Counterparties Risk | |||
Debt Instruments | |||
Notional amount | 6 | 6 | |
Italy | Sovereign Risk | |||
Debt Instruments | |||
Financial assets, at fair value | 5 | 2 | 4 |
Italy | Other Counterparties Risk | |||
Debt Instruments | |||
Financial assets, at fair value | 5 | 6 | 5 |
Italy | Long | Sovereign Risk | |||
Debt Instruments | |||
Notional amount | 25 | 78 | 183 |
Financial assets, at fair value | (1) | ||
Italy | Long | Other Counterparties Risk | |||
Debt Instruments | |||
Notional amount | 225 | 317 | 553 |
Financial assets, at fair value | (3) | (1) | 3 |
Italy | Short | Sovereign Risk | |||
Debt Instruments | |||
Notional amount | 450 | 503 | 448 |
Financial assets, at fair value | 5 | 2 | 5 |
Italy | Short | Other Counterparties Risk | |||
Debt Instruments | |||
Notional amount | 201 | 362 | 618 |
Financial assets, at fair value | 8 | 7 | 2 |
Italy | Net Short Position | Sovereign Risk | |||
Debt Instruments | |||
Notional amount | 425 | 425 | 265 |
Italy | Net Short Position | Other Counterparties Risk | |||
Debt Instruments | |||
Notional amount | € 24 | € 45 | € 65 |
Geographical and business se287
Geographical and business segment reporting - Geographical Segments (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2017EUR (€)itemsegment | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Geographical segments | ||||
Number of segments | segment | 5 | |||
Number of operating areas | item | 4 | |||
(Condensed) balance sheet | ||||
TOTAL ASSETS | € 1,444,305 | € 1,339,125 | € 1,340,260 | |
Loans and advances to customers | 848,915 | 790,470 | 790,848 | |
Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions | 188,425 | 153,141 | 160,281 | |
Debt instruments | 199,351 | 191,312 | 180,130 | |
Other financial Assets | 84,319 | 92,573 | 100,428 | |
Other asset accounts | 123,295 | 111,629 | 108,573 | |
TOTAL LIABILITIES | 1,337,472 | 1,236,426 | 1,241,507 | |
Customer deposits | 777,730 | 691,111 | 683,142 | |
Central Banks and Credit institutions | 190,314 | 149,398 | 175,373 | |
Debt instruments | 217,966 | 228,869 | 226,160 | |
Other financial liabilities | 107,299 | 123,890 | 114,655 | |
Other liabilities accounts | 44,163 | 43,158 | 42,177 | |
Total Equity | 106,833 | 102,699 | 98,753 | € 89,714 |
Other customer funds under management | 166,574 | 159,260 | 140,741 | |
Investment funds | 135,750 | 129,930 | 109,028 | |
Pension funds | 11,566 | 11,298 | 11,376 | |
Assets under management | 19,258 | 18,032 | 20,337 | |
(Condensed) income statement | ||||
INTEREST INCOME / (CHARGES) | 34,296 | 31,089 | 32,812 | |
Income from equity instruments | 384 | 413 | 455 | |
Income from companies accounted for using the equity method | 704 | 444 | 375 | |
Net fee and commission income (expense) | 11,597 | 10,180 | 10,033 | |
Other income | 1,665 | 2,101 | 2,386 | |
Other operating income (expenses) | (291) | 5 | (166) | |
Total income | 48,355 | 44,232 | 45,895 | |
Administrative expenses and depreciation | (22,993) | (21,101) | (21,720) | |
Provisions or reversal of provisions | (3,058) | (2,508) | (3,106) | |
Impairment losses on financial assets | (9,259) | (9,626) | (10,652) | |
Impairment losses on other assets | (1,273) | (140) | (1,092) | |
Other income and charges | 319 | (89) | 222 | |
Operating profit / (loss) before tax | 12,091 | 10,768 | 9,547 | |
Income tax | (3,884) | (3,282) | (2,213) | |
Profit from continuing operations | 8,207 | 7,486 | 7,334 | |
CONSOLIDATED PROFIT FOR THE YEAR | 8,207 | 7,486 | 7,334 | |
Profit attributable to non-controlling interests | 1,588 | 1,282 | 1,368 | |
PROFIT ATTRIBUTABLE TO THE PARENT | 6,619 | 6,204 | 5,966 | |
Revenue | ||||
Total revenue | 74,182 | 74,159 | 71,896 | |
Intra-Group eliminations | ||||
(Condensed) balance sheet | ||||
TOTAL ASSETS | (150,181) | (126,282) | (128,143) | |
Loans and advances to customers | (978) | |||
Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions | (66,157) | (47,744) | (50,980) | |
Other asset accounts | (83,046) | (78,538) | (77,163) | |
TOTAL LIABILITIES | (67,135) | (47,745) | (50,980) | |
Central Banks and Credit institutions | (67,135) | (47,745) | (50,980) | |
Total Equity | (83,046) | (78,537) | (77,163) | |
Revenue | ||||
Total revenue | (4,808) | (5,468) | (6,862) | |
Continental Europe | ||||
(Condensed) income statement | ||||
INTEREST INCOME / (CHARGES) | 9,270 | 8,161 | 8,006 | |
Income from equity instruments | 274 | 272 | 277 | |
Income from companies accounted for using the equity method | 378 | 168 | 120 | |
Net fee and commission income (expense) | 4,171 | 3,497 | 3,417 | |
Other income | 626 | 818 | 1,186 | |
Other operating income (expenses) | (256) | (110) | (178) | |
Total income | 14,463 | 12,806 | 12,828 | |
Administrative expenses and depreciation | (7,688) | (6,781) | (6,735) | |
Provisions or reversal of provisions | (990) | (444) | (352) | |
Impairment losses on financial assets | (1,111) | (1,383) | (2,083) | |
Impairment losses on other assets | (189) | (36) | (172) | |
Other income and charges | (115) | (150) | (120) | |
Operating profit / (loss) before tax | 4,370 | 4,012 | 3,366 | |
Income tax | (1,158) | (1,083) | (887) | |
Profit from continuing operations | 3,212 | 2,929 | 2,479 | |
CONSOLIDATED PROFIT FOR THE YEAR | 3,212 | 2,929 | 2,479 | |
Profit attributable to non-controlling interests | 381 | 330 | 261 | |
PROFIT ATTRIBUTABLE TO THE PARENT | 2,831 | 2,599 | 2,218 | |
Revenue | ||||
Total revenue | 19,041 | 16,567 | 17,653 | |
Continental Europe | Operating segment | ||||
(Condensed) balance sheet | ||||
TOTAL ASSETS | 694,697 | 520,134 | 538,645 | |
Loans and advances to customers | 382,855 | 297,214 | 287,252 | |
Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions | 128,185 | 77,232 | 92,414 | |
Debt instruments | 100,188 | 80,639 | 85,665 | |
Other financial Assets | 39,918 | 40,689 | 46,681 | |
Other asset accounts | 43,551 | 24,360 | 26,633 | |
TOTAL LIABILITIES | 651,724 | 486,644 | 502,799 | |
Customer deposits | 354,272 | 269,934 | 263,462 | |
Central Banks and Credit institutions | 172,987 | 105,152 | 132,688 | |
Debt instruments | 61,214 | 53,064 | 51,103 | |
Other financial liabilities | 45,920 | 49,042 | 49,798 | |
Other liabilities accounts | 17,331 | 9,452 | 5,748 | |
Total Equity | 42,973 | 33,490 | 35,846 | |
Other customer funds under management | 74,314 | 65,834 | 64,433 | |
Investment funds | 52,320 | 46,229 | 44,393 | |
Pension funds | 11,566 | 11,298 | 11,376 | |
Assets under management | 10,428 | 8,307 | 8,664 | |
Revenue | ||||
Total revenue | 19,545 | 16,803 | 18,075 | |
Continental Europe | Intra-Group eliminations | ||||
Revenue | ||||
Total revenue | (504) | (236) | (422) | |
United Kingdom | ||||
(Condensed) income statement | ||||
INTEREST INCOME / (CHARGES) | 4,364 | 4,405 | 4,942 | |
Income from equity instruments | 1 | 1 | 1 | |
Income from companies accounted for using the equity method | 32 | 16 | 10 | |
Net fee and commission income (expense) | 1,003 | 1,031 | 1,091 | |
Other income | 282 | 319 | 302 | |
Other operating income (expenses) | 34 | 44 | 37 | |
Total income | 5,716 | 5,816 | 6,383 | |
Administrative expenses and depreciation | (2,862) | (2,967) | (3,357) | |
Provisions or reversal of provisions | (429) | (276) | (351) | |
Impairment losses on financial assets | (205) | (58) | (107) | |
Impairment losses on other assets | (50) | (64) | (9) | |
Other income and charges | 14 | 1 | 5 | |
Operating profit / (loss) before tax | 2,184 | 2,452 | 2,564 | |
Income tax | (661) | (736) | (556) | |
Profit from continuing operations | 1,523 | 1,716 | 2,008 | |
CONSOLIDATED PROFIT FOR THE YEAR | 1,523 | 1,716 | 2,008 | |
Profit attributable to non-controlling interests | 25 | 36 | 37 | |
PROFIT ATTRIBUTABLE TO THE PARENT | 1,498 | 1,680 | 1,971 | |
Revenue | ||||
Total revenue | 8,837 | 9,626 | 10,970 | |
United Kingdom | Operating segment | ||||
(Condensed) balance sheet | ||||
TOTAL ASSETS | 361,230 | 354,960 | 383,155 | |
Loans and advances to customers | 243,616 | 251,251 | 282,673 | |
Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions | 56,762 | 36,643 | 38,509 | |
Debt instruments | 26,188 | 28,045 | 20,308 | |
Other financial Assets | 24,690 | 26,819 | 32,871 | |
Other asset accounts | 9,974 | 12,202 | 8,794 | |
TOTAL LIABILITIES | 344,926 | 337,945 | 365,792 | |
Customer deposits | 230,504 | 212,113 | 231,947 | |
Central Banks and Credit institutions | 27,833 | 21,590 | 23,610 | |
Debt instruments | 61,112 | 71,108 | 74,260 | |
Other financial liabilities | 21,167 | 27,913 | 29,000 | |
Other liabilities accounts | 4,310 | 5,221 | 6,975 | |
Total Equity | 16,304 | 17,015 | 17,363 | |
Other customer funds under management | 8,657 | 8,564 | 9,703 | |
Investment funds | 8,543 | 8,446 | 9,564 | |
Assets under management | 114 | 118 | 139 | |
Revenue | ||||
Total revenue | 8,707 | 10,016 | 11,386 | |
United Kingdom | Intra-Group eliminations | ||||
Revenue | ||||
Total revenue | 130 | (390) | (416) | |
Latin America | ||||
(Condensed) income statement | ||||
INTEREST INCOME / (CHARGES) | 15,944 | 13,345 | 13,752 | |
Income from equity instruments | 44 | 78 | 57 | |
Income from companies accounted for using the equity method | 369 | 309 | 285 | |
Net fee and commission income (expense) | 5,490 | 4,581 | 4,452 | |
Other income | 1,012 | 806 | 517 | |
Other operating income (expenses) | (386) | (355) | (308) | |
Total income | 22,473 | 18,764 | 18,755 | |
Administrative expenses and depreciation | (8,694) | (7,692) | (7,906) | |
Provisions or reversal of provisions | (1,145) | (800) | (831) | |
Impairment losses on financial assets | (5,014) | (4,912) | (5,108) | |
Impairment losses on other assets | (112) | (42) | 20 | |
Other income and charges | (31) | 59 | 78 | |
Operating profit / (loss) before tax | 7,477 | 5,377 | 5,008 | |
Income tax | (2,380) | (1,363) | (1,219) | |
Profit from continuing operations | 5,097 | 4,014 | 3,789 | |
CONSOLIDATED PROFIT FOR THE YEAR | 5,097 | 4,014 | 3,789 | |
Profit attributable to non-controlling interests | 813 | 628 | 596 | |
PROFIT ATTRIBUTABLE TO THE PARENT | 4,284 | 3,386 | 3,193 | |
Revenue | ||||
Total revenue | 37,623 | 36,972 | 32,927 | |
Latin America | Operating segment | ||||
(Condensed) balance sheet | ||||
TOTAL ASSETS | 290,818 | 320,768 | 267,885 | |
Loans and advances to customers | 146,133 | 152,187 | 133,139 | |
Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions | 55,935 | 67,400 | 51,275 | |
Debt instruments | 57,364 | 63,314 | 50,085 | |
Other financial Assets | 14,226 | 18,696 | 15,489 | |
Other asset accounts | 17,160 | 19,171 | 17,897 | |
TOTAL LIABILITIES | 262,267 | 291,454 | 243,911 | |
Customer deposits | 141,543 | 143,747 | 122,413 | |
Central Banks and Credit institutions | 39,212 | 47,585 | 42,395 | |
Debt instruments | 34,434 | 47,436 | 39,526 | |
Other financial liabilities | 36,084 | 41,395 | 30,417 | |
Other liabilities accounts | 10,994 | 11,291 | 9,160 | |
Total Equity | 28,551 | 29,314 | 23,974 | |
Other customer funds under management | 80,732 | 81,034 | 59,065 | |
Investment funds | 74,435 | 74,554 | 54,426 | |
Assets under management | 6,297 | 6,480 | 4,639 | |
Revenue | ||||
Total revenue | 37,853 | 37,026 | 32,151 | |
Latin America | Intra-Group eliminations | ||||
Revenue | ||||
Total revenue | (230) | (54) | 776 | |
United States | ||||
(Condensed) income statement | ||||
INTEREST INCOME / (CHARGES) | 5,569 | 5,917 | 6,116 | |
Income from equity instruments | 20 | 30 | 48 | |
Income from companies accounted for using the equity method | (11) | 2 | 3 | |
Net fee and commission income (expense) | 971 | 1,102 | 1,086 | |
Other income | (29) | 22 | 231 | |
Other operating income (expenses) | 401 | 460 | 316 | |
Total income | 6,921 | 7,533 | 7,800 | |
Administrative expenses and depreciation | (3,274) | (3,197) | (3,025) | |
Provisions or reversal of provisions | (174) | (72) | (164) | |
Impairment losses on financial assets | (2,878) | (3,187) | (3,103) | |
Impairment losses on other assets | (27) | (35) | ||
Other income and charges | 16 | (6) | 16 | |
Operating profit / (loss) before tax | 584 | 1,036 | 1,524 | |
Income tax | 116 | (355) | (517) | |
Profit from continuing operations | 700 | 681 | 1,007 | |
CONSOLIDATED PROFIT FOR THE YEAR | 700 | 681 | 1,007 | |
Profit attributable to non-controlling interests | 368 | 286 | 329 | |
PROFIT ATTRIBUTABLE TO THE PARENT | 332 | 395 | 678 | |
Revenue | ||||
Total revenue | 8,663 | 9,322 | 9,364 | |
United States | Operating segment | ||||
(Condensed) balance sheet | ||||
TOTAL ASSETS | 114,388 | 137,391 | 130,584 | |
Loans and advances to customers | 71,963 | 85,389 | 84,190 | |
Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions | 13,300 | 16,970 | 11,527 | |
Debt instruments | 13,843 | 17,940 | 19,693 | |
Other financial Assets | 3,368 | 3,566 | 3,187 | |
Other asset accounts | 11,914 | 13,526 | 11,987 | |
TOTAL LIABILITIES | 99,189 | 120,741 | 117,427 | |
Customer deposits | 51,189 | 64,460 | 60,115 | |
Central Banks and Credit institutions | 15,884 | 22,264 | 26,170 | |
Debt instruments | 26,176 | 26,340 | 23,905 | |
Other financial liabilities | 2,503 | 2,907 | 2,772 | |
Other liabilities accounts | 3,437 | 4,770 | 4,465 | |
Total Equity | 15,199 | 16,650 | 13,157 | |
Other customer funds under management | 2,871 | 3,828 | 7,540 | |
Investment funds | 452 | 701 | 645 | |
Assets under management | 2,419 | 3,127 | 6,895 | |
Revenue | ||||
Total revenue | 8,849 | 9,603 | 9,521 | |
United States | Intra-Group eliminations | ||||
Revenue | ||||
Total revenue | (186) | (281) | (157) | |
Corporate center | ||||
(Condensed) income statement | ||||
INTEREST INCOME / (CHARGES) | (851) | (739) | (4) | |
Income from equity instruments | 45 | 32 | 72 | |
Income from companies accounted for using the equity method | (64) | (51) | (43) | |
Net fee and commission income (expense) | (38) | (31) | (13) | |
Other income | (226) | 136 | 150 | |
Other operating income (expenses) | (84) | (34) | (33) | |
Total income | (1,218) | (687) | 129 | |
Administrative expenses and depreciation | (475) | (464) | (697) | |
Provisions or reversal of provisions | (320) | (916) | (1,408) | |
Impairment losses on financial assets | (51) | (86) | (251) | |
Impairment losses on other assets | (895) | 37 | (931) | |
Other income and charges | 435 | 7 | 243 | |
Operating profit / (loss) before tax | (2,524) | (2,109) | (2,915) | |
Income tax | 199 | 255 | 966 | |
Profit from continuing operations | (2,325) | (1,854) | (1,949) | |
CONSOLIDATED PROFIT FOR THE YEAR | (2,325) | (1,854) | (1,949) | |
Profit attributable to non-controlling interests | (1) | 2 | 145 | |
PROFIT ATTRIBUTABLE TO THE PARENT | (2,326) | (1,856) | (2,094) | |
Revenue | ||||
Total revenue | 18 | 1,672 | 982 | |
Corporate center | Operating segment | ||||
(Condensed) balance sheet | ||||
TOTAL ASSETS | 133,353 | 132,154 | 148,134 | |
Loans and advances to customers | 5,326 | 4,429 | 3,594 | |
Cash, Cash balances at Central Banks and other deposits on demand, Central Banks and Credit institutions | 400 | 2,640 | 17,536 | |
Debt instruments | 1,768 | 1,374 | 4,379 | |
Other financial Assets | 2,117 | 2,803 | 2,200 | |
Other asset accounts | 123,742 | 120,908 | 120,425 | |
TOTAL LIABILITIES | 46,501 | 47,387 | 62,558 | |
Customer deposits | 222 | 857 | 5,205 | |
Central Banks and Credit institutions | 1,533 | 552 | 1,490 | |
Debt instruments | 35,030 | 30,921 | 37,366 | |
Other financial liabilities | 1,625 | 2,633 | 2,668 | |
Other liabilities accounts | 8,091 | 12,424 | 15,829 | |
Total Equity | 86,852 | 84,767 | 85,576 | |
Revenue | ||||
Total revenue | 4,036 | 6,179 | 7,625 | |
Corporate center | Intra-Group eliminations | ||||
Revenue | ||||
Total revenue | € (4,018) | € (4,507) | € (6,643) |
Geographical and business se288
Geographical and business segment reporting - Business Segments (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business segments | |||
INTEREST INCOME / (CHARGES) | € 34,296 | € 31,089 | € 32,812 |
Income from equity instruments | 384 | 413 | 455 |
Income from companies accounted for using the equity method | 704 | 444 | 375 |
Net fee and commission income (expense) | 11,597 | 10,180 | 10,033 |
Other income | 1,665 | 2,101 | 2,386 |
Other operating income (expenses) | (291) | 5 | (166) |
Total income | 48,355 | 44,232 | 45,895 |
Administrative expenses and depreciation | (22,993) | (21,101) | (21,720) |
Provisions or reversal of provisions | (3,058) | (2,508) | (3,106) |
Impairment losses on financial assets | (9,259) | (9,626) | (10,652) |
Net impairment losses on other assets | (1,273) | (140) | (1,092) |
Other non-financial gains/(losses) | (319) | 89 | (222) |
Operating profit / (loss) before tax | 12,091 | 10,768 | 9,547 |
Income tax | (3,884) | (3,282) | (2,213) |
Profit from continuing operations | 8,207 | 7,486 | 7,334 |
CONSOLIDATED PROFIT FOR THE YEAR | 8,207 | 7,486 | 7,334 |
Profit attributable to non-controlling interests | 1,588 | 1,282 | 1,368 |
Profit attributable to the parent | 6,619 | 6,204 | 5,966 |
Commercial banking | |||
Business segments | |||
INTEREST INCOME / (CHARGES) | 32,704 | 29,090 | 30,027 |
Income from equity instruments | 77 | 131 | 124 |
Income from companies accounted for using the equity method | 781 | 505 | 434 |
Net fee and commission income (expense) | 10,007 | 8,745 | 8,621 |
Other income | 667 | 663 | 1,346 |
Other operating income (expenses) | (210) | (79) | (194) |
Total income | 44,026 | 39,055 | 40,358 |
Administrative expenses and depreciation | (20,323) | (18,475) | (18,730) |
Provisions or reversal of provisions | (2,718) | (1,547) | (1,656) |
Impairment losses on financial assets | (8,440) | (8,713) | (9,462) |
Net impairment losses on other assets | (206) | (97) | 2 |
Other non-financial gains/(losses) | 74 | 22 | (117) |
Operating profit / (loss) before tax | 12,265 | 10,201 | 10,629 |
Income tax | (3,417) | (2,799) | (2,663) |
Profit from continuing operations | 8,848 | 7,402 | 7,966 |
CONSOLIDATED PROFIT FOR THE YEAR | 8,848 | 7,402 | 7,966 |
Profit attributable to non-controlling interests | 1,421 | 1,105 | 1,112 |
Profit attributable to the parent | 7,427 | 6,297 | 6,854 |
Santander Global Corporate Banking | |||
Business segments | |||
INTEREST INCOME / (CHARGES) | 2,478 | 2,781 | 2,830 |
Income from equity instruments | 262 | 250 | 259 |
Income from companies accounted for using the equity method | (13) | (7) | (6) |
Net fee and commission income (expense) | 1,627 | 1,465 | 1,425 |
Other income | 1,224 | 1,293 | 739 |
Other operating income (expenses) | (26) | 43 | 24 |
Total income | 5,552 | 5,825 | 5,271 |
Administrative expenses and depreciation | (1,988) | (1,951) | (2,058) |
Provisions or reversal of provisions | (24) | (40) | (51) |
Impairment losses on financial assets | (690) | (660) | (688) |
Net impairment losses on other assets | (51) | (59) | (37) |
Other non-financial gains/(losses) | (5) | (22) | (4) |
Operating profit / (loss) before tax | 2,804 | 3,137 | 2,441 |
Income tax | (802) | (876) | (695) |
Profit from continuing operations | 2,002 | 2,261 | 1,746 |
CONSOLIDATED PROFIT FOR THE YEAR | 2,002 | 2,261 | 1,746 |
Profit attributable to non-controlling interests | 181 | 172 | 120 |
Profit attributable to the parent | 1,821 | 2,089 | 1,626 |
Real estate operations in Spain | |||
Business segments | |||
INTEREST INCOME / (CHARGES) | (35) | (43) | (41) |
Income from companies accounted for using the equity method | (3) | (10) | |
Net fee and commission income (expense) | 1 | 1 | |
Other income | 9 | 151 | |
Other operating income (expenses) | 29 | 75 | 37 |
Total income | (5) | 39 | 137 |
Administrative expenses and depreciation | (207) | (211) | (235) |
Provisions or reversal of provisions | 4 | (5) | 9 |
Impairment losses on financial assets | (78) | (167) | (251) |
Net impairment losses on other assets | (121) | (21) | (126) |
Other non-financial gains/(losses) | 47 | 96 | 142 |
Operating profit / (loss) before tax | (454) | (461) | (608) |
Income tax | 136 | 138 | 179 |
Profit from continuing operations | (318) | (323) | (429) |
CONSOLIDATED PROFIT FOR THE YEAR | (318) | (323) | (429) |
Profit attributable to non-controlling interests | (15) | 3 | (9) |
Profit attributable to the parent | (303) | (326) | (420) |
Corporate product center | |||
Business segments | |||
INTEREST INCOME / (CHARGES) | (851) | (739) | (4) |
Income from equity instruments | 45 | 32 | 72 |
Income from companies accounted for using the equity method | (64) | (51) | (43) |
Net fee and commission income (expense) | (38) | (31) | (13) |
Other income | (226) | 136 | 150 |
Other operating income (expenses) | (84) | (34) | (33) |
Total income | (1,218) | (687) | 129 |
Administrative expenses and depreciation | (475) | (464) | (697) |
Provisions or reversal of provisions | (320) | (916) | (1,408) |
Impairment losses on financial assets | (51) | (86) | (251) |
Net impairment losses on other assets | (895) | 37 | (931) |
Other non-financial gains/(losses) | (435) | (7) | (243) |
Operating profit / (loss) before tax | (2,524) | (2,109) | (2,915) |
Income tax | 199 | 255 | 966 |
Profit from continuing operations | (2,325) | (1,854) | (1,949) |
CONSOLIDATED PROFIT FOR THE YEAR | (2,325) | (1,854) | (1,949) |
Profit attributable to non-controlling interests | 1 | 2 | 145 |
Profit attributable to the parent | € (2,326) | € (1,856) | € (2,094) |
Related parties (Details)
Related parties (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related parties | |||
TOTAL ASSETS | € 1,444,305 | € 1,339,125 | € 1,340,260 |
Loans and advances to customers | 848,915 | 790,470 | 790,848 |
Debt instruments | 199,351 | 191,312 | 180,130 |
Others | 9,766 | 8,447 | 7,675 |
TOTAL LIABILITIES | 1,337,472 | 1,236,426 | 1,241,507 |
Deposits from central banks and credit institutions | 190,314 | 149,398 | 175,373 |
Customer deposits | 777,730 | 691,111 | 683,142 |
Other liabilities | 12,591 | 11,070 | 10,221 |
CONSOLIDATED PROFIT FOR THE YEAR | 8,207 | 7,486 | 7,334 |
Interest income | 56,041 | 55,156 | 57,198 |
Interest expense | (21,745) | (24,067) | (24,386) |
Commission income | 14,579 | 12,943 | 13,042 |
Commission expense | (2,982) | (2,763) | (3,009) |
Insurance contracts | 239 | 269 | 299 |
Related parties member | |||
Related parties | |||
Insurance contracts | 239 | 269 | 299 |
Associates and Joint Ventures | |||
Related parties | |||
TOTAL ASSETS | 6,048 | 5,884 | 6,542 |
Loans and advances to credit institutions | 472 | 223 | 8 |
Loans and advances to customers | 5,081 | 5,209 | 5,997 |
Debt instruments | 473 | 452 | 537 |
Others | 22 | ||
TOTAL LIABILITIES | 748 | 824 | 1,122 |
Deposits from central banks and credit institutions | 309 | 155 | 501 |
Customer deposits | 414 | 669 | 620 |
Marketable debt securities | 4 | 1 | |
Other liabilities | 21 | ||
CONSOLIDATED PROFIT FOR THE YEAR | 1,020 | 609 | 802 |
Interest income | 57 | 67 | 98 |
Interest expense | (3) | (15) | (15) |
Gains/losses on financial assets and liabilities and others | 302 | 15 | 73 |
Commission income | 735 | 561 | 664 |
Commission expense | (71) | (19) | (18) |
Other | 3,881 | 4,146 | 4,123 |
Contingent liabilities and others | 6 | 19 | 46 |
Contingent commitments | 301 | 17 | 95 |
Derivative financial instruments | 3,574 | 4,110 | 3,982 |
Members of the Board of Directors | |||
Related parties | |||
TOTAL LIABILITIES | 19 | 27 | 25 |
Customer deposits | 19 | 27 | 25 |
Other | 7 | 1 | 2 |
Contingent liabilities and others | 6 | ||
Contingent commitments | 1 | 1 | 2 |
Executive vice presidents | |||
Related parties | |||
TOTAL ASSETS | 21 | 22 | 28 |
Loans and advances to customers | 21 | 22 | 28 |
TOTAL LIABILITIES | 14 | 10 | 16 |
Customer deposits | 14 | 10 | 16 |
Other | 3 | 3 | 4 |
Contingent liabilities and others | 1 | ||
Contingent commitments | 2 | 3 | 4 |
Other related parties | |||
Related parties | |||
TOTAL ASSETS | 300 | 307 | 573 |
Loans and advances to customers | 279 | 286 | 293 |
Debt instruments | 21 | 21 | 280 |
TOTAL LIABILITIES | 63 | 124 | 103 |
Customer deposits | 63 | 124 | 103 |
CONSOLIDATED PROFIT FOR THE YEAR | 14 | 13 | 24 |
Interest income | 8 | 10 | 17 |
Interest expense | (1) | ||
Commission income | 6 | 4 | 8 |
Commission expense | (1) | ||
Other | 597 | 846 | 2,682 |
Contingent liabilities and others | 352 | 139 | 191 |
Contingent commitments | 60 | 417 | 132 |
Derivative financial instruments | € 185 | € 290 | € 2,359 |
Risk management - Risk Governan
Risk management - Risk Governance (Details) | 12 Months Ended |
Dec. 31, 2017component | |
Risk management | |
Risk management and control model, number of lines of defense | 3 |
Strategic and business plans, duration | 3 years |
Risk management - Introduction
Risk management - Introduction to Credit Risk (Details) - Credit risk | 12 Months Ended |
Dec. 31, 2017customer | |
Credit risk | |
Types of customers, number | 3 |
Commercial banking | |
Credit risk | |
Total risk exposure (as a percent) | 85.00% |
Risk management - Credit Risk f
Risk management - Credit Risk from Customers (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Credit risk | |||
Credit risk decrease percentage | 3.00% | ||
Nonperforming | |||
Credit risk | |||
Credit risk with customers | € 28,104 | ||
Non-performing rate (as a percent) | 3.38% | ||
Percentage decrease in non-performing loans (NPLs) | (16.00%) | ||
Percentage decrease in non-performing loans ratio | 0.55% | ||
Allowance account for credit losses of financial assets | € 8,997 | ||
Percentage decrease in provision for credit losses | 5.50% | ||
Percentage of decrease in cost of credit | 0.06% | ||
Decrease in nonperforming coverage ratio percent | (5.50%) | ||
Cost of credit | 1.12% | ||
Total Grupo excluding Banco Popular | |||
Credit risk | |||
Credit risk with customers | € 832,655 | € 855,510 | € 850,909 |
Coverage rate (as a percent) | 70.80% | 73.80% | 73.10% |
Total Grupo excluding Banco Popular | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 3.38% | 3.93% | 4.36% |
Banco Santander S.A. | |||
Credit risk | |||
Credit risk with customers | € 920,968 | € 855,510 | € 850,909 |
Coverage rate (as a percent) | 65.20% | 73.80% | 73.10% |
Banco Santander S.A. | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 4.08% | 3.93% | 4.36% |
Banco Popular Espanol, S.A. | |||
Credit risk | |||
Credit risk with customers | € 88,313 | ||
Coverage rate (as a percent) | 48.70% | ||
Banco Popular Espanol, S.A. | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 10.75% | ||
Continental Europe | |||
Credit risk | |||
Credit risk with customers | € 337,768 | € 331,706 | € 321,395 |
Coverage rate (as a percent) | 58.00% | 60.00% | 64.20% |
Percentage of credit risk diversification | 41.00% | ||
Continental Europe | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 4.50% | 5.92% | 7.27% |
Continental Europe | Santander Consumer Finance, S.A. | |||
Credit risk | |||
Credit risk with customers | € 92,589 | € 88,061 | € 76,688 |
Coverage rate (as a percent) | 101.40% | 109.10% | 109.10% |
Continental Europe | Santander Consumer Finance, S.A. | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 2.50% | 2.68% | 3.42% |
Continental Europe | Spain | |||
Credit risk | |||
Credit risk with customers | € 172,176 | € 172,974 | € 173,032 |
Coverage rate (as a percent) | 45.90% | 48.30% | 48.10% |
Continental Europe | Spain | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 4.72% | 5.41% | 6.53% |
Percentage decrease in non-performing loans ratio | 0.69% | ||
Continental Europe | Portugal | |||
Credit risk | |||
Credit risk with customers | € 32,816 | € 30,540 | € 31,922 |
Coverage rate (as a percent) | 59.10% | 63.70% | 99.00% |
Continental Europe | Portugal | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 5.71% | 8.81% | 7.46% |
Continental Europe | Poland | |||
Credit risk | |||
Credit risk with customers | € 24,391 | € 21,902 | € 20,951 |
Coverage rate (as a percent) | 68.20% | 61.00% | 64.00% |
Continental Europe | Poland | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 4.57% | 5.42% | 6.30% |
United Kingdom | |||
Credit risk | |||
Credit risk with customers | € 247,625 | € 255,049 | € 282,182 |
Coverage rate (as a percent) | 32.00% | 32.90% | 38.20% |
Percentage of credit risk diversification | 30.00% | ||
United Kingdom | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 1.33% | 1.41% | 1.52% |
Latin America | |||
Credit risk | |||
Credit risk with customers | € 165,683 | € 173,150 | € 151,302 |
Coverage rate (as a percent) | 84.60% | 87.30% | 79.00% |
Percentage of credit risk diversification | 20.00% | ||
Latin America | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 4.50% | 4.81% | 4.96% |
Latin America | Brazil | |||
Credit risk | |||
Credit risk with customers | € 83,076 | € 89,572 | € 72,173 |
Non-performing rate (as a percent) | 5.29% | ||
Coverage rate (as a percent) | 92.60% | 93.10% | 83.70% |
Percentage decrease in non-performing loans ratio | 0.61% | ||
Latin America | Brazil | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 5.29% | 5.90% | 5.98% |
Latin America | Mexico | |||
Credit risk | |||
Credit risk with customers | € 28,939 | € 29,682 | € 32,463 |
Coverage rate (as a percent) | 97.50% | 103.80% | 90.60% |
Latin America | Mexico | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 2.69% | 2.76% | 3.38% |
Latin America | Chile | |||
Credit risk | |||
Credit risk with customers | € 40,406 | € 40,864 | € 35,213 |
Coverage rate (as a percent) | 58.20% | 59.10% | 53.90% |
Latin America | Chile | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 4.96% | 5.05% | 5.62% |
Latin America | Argentina | |||
Credit risk | |||
Credit risk with customers | € 8,085 | € 7,318 | € 6,328 |
Coverage rate (as a percent) | 100.10% | 142.30% | 194.20% |
Latin America | Argentina | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 2.50% | 1.49% | 1.15% |
United States | |||
Credit risk | |||
Credit risk with customers | € 77,190 | € 91,709 | € 90,727 |
Coverage rate (as a percent) | 170.20% | 214.40% | 225.00% |
Percentage of credit risk diversification | 9.00% | ||
United States | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 2.79% | 2.28% | 2.13% |
United States | Santander Bank, National Association | |||
Credit risk | |||
Credit risk with customers | € 44,237 | € 54,040 | € 54,089 |
Coverage rate (as a percent) | 102.20% | 99.60% | 114.50% |
United States | Santander Bank, National Association | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 1.21% | 1.33% | 1.16% |
United States | Santander Consumer USA Holdings Inc. | |||
Credit risk | |||
Credit risk with customers | € 24,079 | € 28,590 | € 28,280 |
Coverage rate (as a percent) | 212.90% | 328.00% | 337.10% |
United States | Santander Consumer USA Holdings Inc. | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 5.86% | 3.84% | 3.66% |
United States | Puerto Rico | |||
Credit risk | |||
Credit risk with customers | € 2,944 | € 3,843 | € 3,924 |
Coverage rate (as a percent) | 55.20% | 54.40% | 48.50% |
United States | Puerto Rico | Nonperforming | |||
Credit risk | |||
Non-performing rate (as a percent) | 7.13% | 7.13% | 6.96% |
Risk management - Credit Ris293
Risk management - Credit Risk from UK Customers (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
United Kingdom | |||
Credit risk | |||
Credit risk with customers | € 247,625 | € 255,049 | € 282,182 |
Total risk exposure (as a percent) | 30.00% | ||
Mortgage assets | Santander UK plc | United Kingdom | |||
Credit risk | |||
Credit risk with customers | € 174,930 | ||
Nonperforming | |||
Credit risk | |||
Credit risk with customers | € 28,104 | ||
Non-performing rate (as a percent) | 3.38% | ||
Percentage decrease in non-performing loans (NPLs) | 16.00% | ||
Nonperforming | United Kingdom | |||
Credit risk | |||
Non-performing rate (as a percent) | 1.33% | 1.41% | 1.52% |
Risk management - Spain Portfol
Risk management - Spain Portfolio Overview (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Continental Europe | |||
Credit risk | |||
Credit risk with customers | € 337,768 | € 331,706 | € 321,395 |
Spain | Continental Europe | |||
Credit risk | |||
Credit risk with customers | € 172,176 | € 172,974 | € 173,032 |
Total risk exposure (as a percent) | 20.70% | ||
Decrease in credit risk on loan commitments and financial guarantee contracts percentage | 0.50% | ||
Nonperforming | |||
Credit risk | |||
Credit risk with customers | € 28,104 | ||
Non-performing rate (as a percent) | 3.38% | ||
Percentage decrease in non-performing loans ratio | 0.55% | ||
Percentage decrease in non-performing loans (NPLs) | 16.00% | ||
Nonperforming | Continental Europe | |||
Credit risk | |||
Non-performing rate (as a percent) | 4.50% | 5.92% | 7.27% |
Nonperforming | Spain | Continental Europe | |||
Credit risk | |||
Non-performing rate (as a percent) | 4.72% | 5.41% | 6.53% |
Percentage decrease in non-performing loans ratio | 0.69% | ||
Percentage increase in non-performing loans ratio due to fall in lending | 3.00% | ||
Percentage decrease in non-performing loans ratio due to better NPL figure | 0.72% | ||
Nonperforming | Spain | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Continental Europe | |||
Credit risk | |||
Percentage decrease in non-performing loans (NPLs) | 19.00% |
Risk management - Spain Home Pu
Risk management - Spain Home Purchase Loans (Details) € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Nonperforming | |
Credit risk | |
Credit risk with customers | € 28,104 |
With property collateral | More than 60% and less than or equal to 80% | Minimum | |
Credit risk | |
Loan-to-value (LTV) ratio | 60.00% |
Spain | Home purchase loans | |
Credit risk | |
Credit risk with customers | € 64,588 |
Debt-to-income ratio (as a percent) | 28.20% |
Percentage of portfolio with LTV less than 80% | 79.80% |
Spain | Home purchase loans | Nonperforming | |
Credit risk | |
Credit risk with customers | € 2,594 |
Spain | First residence mortgages | Maximum | |
Credit risk | |
Maximum loan to value ratio allowed under credit policies | 80.00% |
Spain | Second home mortgages | Maximum | |
Credit risk | |
Maximum loan to value ratio allowed under credit policies | 70.00% |
Spain | LTV, Less than 80% | Home purchase loans | Maximum | |
Credit risk | |
Loan-to-value (LTV) ratio | 80.00% |
Spain | Without collateral | Home purchase loans | |
Credit risk | |
Credit risk with customers | € 532 |
Spain | Without collateral | Home purchase loans | Nonperforming | |
Credit risk | |
Credit risk with customers | 147 |
Spain | With property collateral | Home purchase loans | |
Credit risk | |
Credit risk with customers | € 64,056 |
Percentage secured by mortgage | 99.18% |
Spain | With property collateral | Home purchase loans | Nonperforming | |
Credit risk | |
Credit risk with customers | € 2,447 |
Spain | With property collateral | Less than or equal to 40% | Home purchase loans | |
Credit risk | |
Credit risk with customers | 14,430 |
Spain | With property collateral | Less than or equal to 40% | Home purchase loans | Nonperforming | |
Credit risk | |
Credit risk with customers | € 224 |
Spain | With property collateral | Less than or equal to 40% | Home purchase loans | Maximum | |
Credit risk | |
Loan-to-value (LTV) ratio | 40.00% |
Spain | With property collateral | More than 40% and less than or equal to 60% | Home purchase loans | |
Credit risk | |
Credit risk with customers | € 17,434 |
Spain | With property collateral | More than 40% and less than or equal to 60% | Home purchase loans | Nonperforming | |
Credit risk | |
Credit risk with customers | € 354 |
Spain | With property collateral | More than 40% and less than or equal to 60% | Home purchase loans | Minimum | |
Credit risk | |
Loan-to-value (LTV) ratio | 40.00% |
Spain | With property collateral | More than 40% and less than or equal to 60% | Home purchase loans | Maximum | |
Credit risk | |
Loan-to-value (LTV) ratio | 60.00% |
Spain | With property collateral | More than 60% and less than or equal to 80% | Home purchase loans | |
Credit risk | |
Credit risk with customers | € 19,232 |
Spain | With property collateral | More than 60% and less than or equal to 80% | Home purchase loans | Nonperforming | |
Credit risk | |
Credit risk with customers | € 591 |
Spain | With property collateral | More than 60% and less than or equal to 80% | Home purchase loans | Maximum | |
Credit risk | |
Loan-to-value (LTV) ratio | 80.00% |
Spain | With property collateral | More than 80% and less than or equal to 100% | Home purchase loans | |
Credit risk | |
Credit risk with customers | € 7,899 |
Spain | With property collateral | More than 80% and less than or equal to 100% | Home purchase loans | Nonperforming | |
Credit risk | |
Credit risk with customers | € 504 |
Spain | With property collateral | More than 80% and less than or equal to 100% | Home purchase loans | Minimum | |
Credit risk | |
Loan-to-value (LTV) ratio | 80.00% |
Spain | With property collateral | More than 80% and less than or equal to 100% | Home purchase loans | Maximum | |
Credit risk | |
Loan-to-value (LTV) ratio | 100.00% |
Spain | With property collateral | More than 100% | Home purchase loans | |
Credit risk | |
Credit risk with customers | € 5,061 |
Spain | With property collateral | More than 100% | Home purchase loans | Nonperforming | |
Credit risk | |
Credit risk with customers | € 774 |
Spain | With property collateral | More than 100% | Home purchase loans | Minimum | |
Credit risk | |
Loan-to-value (LTV) ratio | 100.00% |
Risk management - Spain Compani
Risk management - Spain Companies Portfolio (Details) € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€) | |
Nonperforming | |
Credit risk | |
Credit risk with customers | € 28,104 |
Nonperforming Ratio | 3.38% |
Spain | SMEs, companies and institutions segment | |
Credit risk | |
Credit risk with customers | € 96,726 |
Exposure to credit risk on loan commitments and financial guarantee contracts, percentage | 56.00% |
Percentage of portfolio assigned to an analyst | 95.00% |
Spain | Nonperforming | SMEs, companies and institutions segment | |
Credit risk | |
Nonperforming Ratio | 4.88% |
Risk management - Spain Real Es
Risk management - Spain Real Estate Business (Details) - Spain - Real estate operations in Spain - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in property loans | |||
Financial assets at end of period | € 6,472 | ||
Construction and property development | |||
Changes in property loans | |||
Financial assets at beginning of period | 5,515 | € 7,388 | € 9,349 |
Foreclosed assets | (27) | (28) | (62) |
Banco Popular (Perimeter) | 2,934 | ||
Reductions | (1,620) | (1,415) | (1,481) |
Written-off assets | (330) | (430) | (418) |
Financial assets at end of period | € 6,472 | € 5,515 | € 7,388 |
Risk management - Spain Real298
Risk management - Spain Real Estate Business Distribution (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Nonperforming | ||||
Distribution of portfolio | ||||
Non-performing rate (as a percent) | 3.38% | |||
Excess over collateral value | € 28,104 | |||
Specific allowance | 8,997 | |||
Spain | Real estate operations in Spain | ||||
Distribution of portfolio | ||||
Financial assets | 6,472 | |||
Specific allowance | 1,289 | |||
Spain | Real estate operations in Spain | Construction and property development | ||||
Distribution of portfolio | ||||
Financial assets | 6,472 | € 5,515 | € 7,388 | € 9,349 |
Excess over collateral value | 1,513 | |||
Specific allowance | € 1,131 | |||
Spain | Nonperforming | Real estate operations in Spain | Construction and property development | ||||
Distribution of portfolio | ||||
Non-performing rate (as a percent) | 29.96% | 61.87% | ||
Coverage rate (as a percent) | 38.73% | |||
Financial assets | € 1,939 | |||
Excess over collateral value | 708 | |||
Specific allowance | 751 | |||
Written-off assets | € 3,133 |
Risk management - Spain Real299
Risk management - Spain Real Estate Business Segment Information (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Memorandum items: Data from the public consolidated balance sheet | |||
Total loans and advances to customers excluding the public sector (business in Spain) | € 848,915 | € 790,470 | € 790,848 |
Total assets | 1,444,305 | € 1,339,125 | € 1,340,260 |
Spain | Real estate operations in Spain | |||
Memorandum items: Data from the public consolidated balance sheet | |||
Impairment losses and credit risk allowances. Coverage for unimpaired assets (business in Spain) | 1,289 | ||
Spain | Customers excluding the public sector | Real estate operations in Spain | |||
Memorandum items: Data from the public consolidated balance sheet | |||
Total loans and advances to customers excluding the public sector (business in Spain) | € 235,140 |
Risk management - Spain Real300
Risk management - Spain Real Estate Business Concentration Information (Details) - Spain - Real estate operations in Spain - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Distribution of portfolio | ||||
Financial assets | € 6,472 | |||
Construction and property development | ||||
Distribution of portfolio | ||||
Financial assets | 6,472 | € 5,515 | € 7,388 | € 9,349 |
Completed buildings | ||||
Distribution of portfolio | ||||
Financial assets | 3,684 | |||
Buildings and other constructions under construction | ||||
Distribution of portfolio | ||||
Financial assets | 995 | |||
Land | ||||
Distribution of portfolio | ||||
Financial assets | 1,129 | |||
Without collateral | ||||
Distribution of portfolio | ||||
Financial assets | 664 | |||
With property collateral | ||||
Distribution of portfolio | ||||
Financial assets | 5,808 | |||
Residential loans | Completed buildings | ||||
Distribution of portfolio | ||||
Financial assets | 1,726 | |||
Residential loans | Buildings and other constructions under construction | ||||
Distribution of portfolio | ||||
Financial assets | 562 | |||
Other purposes | Completed buildings | ||||
Distribution of portfolio | ||||
Financial assets | 1,958 | |||
Other purposes | Buildings and other constructions under construction | ||||
Distribution of portfolio | ||||
Financial assets | 433 | |||
Developed consolidated land | Land | ||||
Distribution of portfolio | ||||
Financial assets | 900 | |||
Other land | Land | ||||
Distribution of portfolio | ||||
Financial assets | € 229 |
Risk management - Spain Foreclo
Risk management - Spain Foreclosed properties (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets foreclosed | |||
Loans and advances to customers | € 848,915 | € 790,470 | € 790,848 |
Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 4,592 | ||
Changes in property loans | |||
Gross additions | 1.4 | 1.3 | 1.7 |
Disposals | (1.9) | (1.3) | (1.1) |
Difference | (0.5) | 0.6 | |
Foreclosed properties | Spain | Blackstone Fund | |||
Assets foreclosed | |||
Loans and advances to customers | 5,944 | ||
Gross carrying amount | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 227,446 | € 161,372 | € 167,856 |
Gross carrying amount | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 9,711 | ||
Gross carrying amount | Foreclosed properties | Spain | Blackstone Fund | |||
Assets foreclosed | |||
Loans and advances to customers | 16,134 | ||
Impairment losses | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 5,119 | ||
Impairment losses since time of foreclosure | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 2,776 | ||
Construction and property development | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 2,954 | ||
Construction and property development | Gross carrying amount | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 6,775 | ||
Construction and property development | Impairment losses | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 3,821 | ||
Construction and property development | Impairment losses since time of foreclosure | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 2,343 | ||
Completed buildings | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,011 | ||
Completed buildings | Foreclosed properties | Residential loans | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 545 | ||
Completed buildings | Foreclosed properties | Other purposes | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 466 | ||
Completed buildings | Gross carrying amount | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,953 | ||
Completed buildings | Gross carrying amount | Foreclosed properties | Residential loans | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 991 | ||
Completed buildings | Gross carrying amount | Foreclosed properties | Other purposes | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 962 | ||
Completed buildings | Impairment losses | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 942 | ||
Completed buildings | Impairment losses | Foreclosed properties | Residential loans | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 446 | ||
Completed buildings | Impairment losses | Foreclosed properties | Other purposes | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 496 | ||
Completed buildings | Impairment losses since time of foreclosure | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 781 | ||
Completed buildings | Impairment losses since time of foreclosure | Foreclosed properties | Residential loans | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 311 | ||
Completed buildings | Impairment losses since time of foreclosure | Foreclosed properties | Other purposes | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 470 | ||
Buildings and other constructions under construction | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 255 | ||
Buildings and other constructions under construction | Foreclosed properties | Residential loans | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 254 | ||
Buildings and other constructions under construction | Foreclosed properties | Other purposes | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1 | ||
Buildings and other constructions under construction | Gross carrying amount | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 406 | ||
Buildings and other constructions under construction | Gross carrying amount | Foreclosed properties | Residential loans | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 405 | ||
Buildings and other constructions under construction | Gross carrying amount | Foreclosed properties | Other purposes | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1 | ||
Buildings and other constructions under construction | Impairment losses | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 151 | ||
Buildings and other constructions under construction | Impairment losses | Foreclosed properties | Residential loans | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 151 | ||
Buildings and other constructions under construction | Impairment losses since time of foreclosure | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 51 | ||
Buildings and other constructions under construction | Impairment losses since time of foreclosure | Foreclosed properties | Residential loans | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 51 | ||
Land | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,688 | ||
Land | Foreclosed properties | Developed consolidated land | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 527 | ||
Land | Foreclosed properties | Other land | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,161 | ||
Land | Gross carrying amount | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 4,416 | ||
Land | Gross carrying amount | Foreclosed properties | Developed consolidated land | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,406 | ||
Land | Gross carrying amount | Foreclosed properties | Other land | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 3,010 | ||
Land | Impairment losses | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 2,728 | ||
Land | Impairment losses | Foreclosed properties | Developed consolidated land | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 879 | ||
Land | Impairment losses | Foreclosed properties | Other land | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,849 | ||
Land | Impairment losses since time of foreclosure | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,511 | ||
Land | Impairment losses since time of foreclosure | Foreclosed properties | Developed consolidated land | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 287 | ||
Land | Impairment losses since time of foreclosure | Foreclosed properties | Other land | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,224 | ||
Home purchase loans | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 961 | ||
Home purchase loans | Gross carrying amount | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,824 | ||
Home purchase loans | Impairment losses | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 863 | ||
Home purchase loans | Impairment losses since time of foreclosure | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 379 | ||
Other loans | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 677 | ||
Other loans | Gross carrying amount | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 1,112 | ||
Other loans | Impairment losses | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | 435 | ||
Other loans | Impairment losses since time of foreclosure | Foreclosed properties | Spain | |||
Assets foreclosed | |||
Loans and advances to customers | € 54 |
Risk management - United States
Risk management - United States - Santander Bank, N.A. (Details) - United States - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Credit risk | |||
Credit risk with customers | € 77,190 | € 91,709 | € 90,727 |
Credit exposure, percentage of total loans | 9.00% | ||
Santander Bank, National Association | |||
Credit risk | |||
Credit risk with customers | € 44,237 | 54,040 | 54,089 |
Santander Consumer USA Holdings Inc. | |||
Credit risk | |||
Credit risk with customers | 24,079 | € 28,590 | € 28,280 |
Santander Holding USA, Inc. | |||
Credit risk | |||
Credit risk with customers | € 11 | ||
With property collateral | Santander Bank, National Association | |||
Credit risk | |||
Percentage of loans secured | 59.00% | ||
Decrease in lending (as a percent) | 16.00% | ||
Retail and commercial banking | Santander Bank, National Association | |||
Credit risk | |||
Credit risk with customers | € 44,237 | ||
Credit exposure, percentage of total loans | 57.00% | ||
Individuals | Santander Bank, National Association | |||
Credit risk | |||
Credit exposure, percentage of total loans | 38.00% | ||
Companies | Santander Bank, National Association | |||
Credit risk | |||
Credit exposure, percentage of total loans | 62.00% |
Risk management - United Sta303
Risk management - United States - SC USA (Details) - United States - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Credit risk | |||
Credit risk with customers | € 77,190 | € 91,709 | € 90,727 |
Credit exposure, percentage of total loans | 9.00% | ||
Santander Consumer USA Holdings Inc. | |||
Credit risk | |||
Credit risk with customers | € 24,079 | € 28,590 | € 28,280 |
Automobile Loan | Santander Consumer USA Holdings Inc. | |||
Credit risk | |||
Credit risk with customers | € 24,079 | ||
Credit exposure, percentage of total loans | 31.00% | ||
Vehicle leasing | Santander Consumer USA Holdings Inc. | |||
Credit risk | |||
Credit risk with customers | € 9,439 |
Risk management - United Sta304
Risk management - United States - Other (Details) - United States - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Credit risk | |||
Credit risk with customers | € 77,190 | € 91,709 | € 90,727 |
Credit exposure, percentage of total loans | 9.00% | ||
Banco Santander Puerto Rico (BSPR) | |||
Credit risk | |||
Credit risk with customers | € 2,944 | ||
Credit exposure, percentage of total loans | 4.00% | ||
Santander Investment Securities (SIS) | |||
Credit risk | |||
Credit risk with customers | € 2,451 | ||
Credit exposure, percentage of total loans | 3.00% | ||
Banco Santander International | |||
Credit risk | |||
Credit risk with customers | € 3,471 | ||
Credit exposure, percentage of total loans | 4.00% |
Risk management - Brazil (Detai
Risk management - Brazil (Details) - Latin America - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Credit risk | |||
Credit risk with customers | € 165,683 | € 173,150 | € 151,302 |
Coverage rate (as a percent) | 84.60% | 87.30% | 79.00% |
Brazil | |||
Credit risk | |||
Credit risk with customers | € 83,076 | € 89,572 | € 72,173 |
Decrease in portfolio (as a percent) | 7.00% | ||
Non-performing rate (as a percent) | 5.29% | ||
Coverage rate (as a percent) | 92.60% | 93.10% | 83.70% |
Percentage decrease in non-performing loans ratio | 0.61% | ||
Brazil | Banco Santander (Brasil) S.A | |||
Credit risk | |||
Credit exposure, percentage of total loans | 10.00% | ||
Percentage of growth rate in local currency | 7.50% |
Risk management - Credit ris306
Risk management - Credit risk from other standpoints (Details) | 12 Months Ended |
Dec. 31, 2017component | |
Risk management | |
Number of methods used to measure exposure to counterparty credit risk | 2 |
Risk management - Concentration
Risk management - Concentration risk (Details) - "Large Exposures" Customers - Credit risk € in Millions | 12 Months Ended |
Dec. 31, 2017EUR (€)customer | |
Concentration of risk | |
Large exposure threshold percentage | 10.00% |
Maximum percentage of eligible capital allowed under regulation | 25.00% |
Number of largest groups | customer | 20 |
Credit exposure, percentage of total loans | 4.70% |
Concentration of credit risk | € 1,376,265 |
Spain | |
Concentration of risk | |
Concentration of credit risk | 367,269 |
Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 570,393 |
America | |
Concentration of risk | |
Concentration of credit risk | 399,273 |
Rest of World | |
Concentration of risk | |
Concentration of credit risk | 39,330 |
Central banks and Credit institutions | |
Concentration of risk | |
Concentration of credit risk | 243,319 |
Central banks and Credit institutions | Spain | |
Concentration of risk | |
Concentration of credit risk | 56,369 |
Central banks and Credit institutions | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 95,749 |
Central banks and Credit institutions | America | |
Concentration of risk | |
Concentration of credit risk | 81,566 |
Central banks and Credit institutions | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 9,635 |
Public sector | |
Concentration of risk | |
Concentration of credit risk | 196,358 |
Public sector | Spain | |
Concentration of risk | |
Concentration of credit risk | 76,011 |
Public sector | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 49,208 |
Public sector | America | |
Concentration of risk | |
Concentration of credit risk | 66,537 |
Public sector | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 4,602 |
Central government | |
Concentration of risk | |
Concentration of credit risk | 166,926 |
Central government | Spain | |
Concentration of risk | |
Concentration of credit risk | 62,707 |
Central government | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 37,416 |
Central government | America | |
Concentration of risk | |
Concentration of credit risk | 62,244 |
Central government | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 4,559 |
Other central government | |
Concentration of risk | |
Concentration of credit risk | 29,432 |
Other central government | Spain | |
Concentration of risk | |
Concentration of credit risk | 13,304 |
Other central government | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 11,792 |
Other central government | America | |
Concentration of risk | |
Concentration of credit risk | 4,293 |
Other central government | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 43 |
Other financial institutions (Financial business activity) | |
Concentration of risk | |
Concentration of credit risk | 81,392 |
Other financial institutions (Financial business activity) | Spain | |
Concentration of risk | |
Concentration of credit risk | 16,250 |
Other financial institutions (Financial business activity) | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 39,440 |
Other financial institutions (Financial business activity) | America | |
Concentration of risk | |
Concentration of credit risk | 19,393 |
Other financial institutions (Financial business activity) | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 6,309 |
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | |
Concentration of risk | |
Concentration of credit risk | 377,314 |
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Spain | |
Concentration of risk | |
Concentration of credit risk | 128,818 |
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 113,384 |
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | America | |
Concentration of risk | |
Concentration of credit risk | 124,118 |
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 10,994 |
Construction and property development | |
Concentration of risk | |
Concentration of credit risk | 30,451 |
Construction and property development | Spain | |
Concentration of risk | |
Concentration of credit risk | 8,179 |
Construction and property development | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 5,003 |
Construction and property development | America | |
Concentration of risk | |
Concentration of credit risk | 17,077 |
Construction and property development | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 192 |
Civil Engineering Construction Loans Member | |
Concentration of risk | |
Concentration of credit risk | 5,399 |
Civil Engineering Construction Loans Member | Spain | |
Concentration of risk | |
Concentration of credit risk | 3,769 |
Civil Engineering Construction Loans Member | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 1,180 |
Civil Engineering Construction Loans Member | America | |
Concentration of risk | |
Concentration of credit risk | 448 |
Civil Engineering Construction Loans Member | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 2 |
Large companies | |
Concentration of risk | |
Concentration of credit risk | 206,250 |
Large companies | Spain | |
Concentration of risk | |
Concentration of credit risk | 54,517 |
Large companies | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 65,606 |
Large companies | America | |
Concentration of risk | |
Concentration of credit risk | 76,691 |
Large companies | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 9,436 |
SMEs and individual entrepreneurs | |
Concentration of risk | |
Concentration of credit risk | 135,214 |
SMEs and individual entrepreneurs | Spain | |
Concentration of risk | |
Concentration of credit risk | 62,353 |
SMEs and individual entrepreneurs | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 41,595 |
SMEs and individual entrepreneurs | America | |
Concentration of risk | |
Concentration of credit risk | 29,902 |
SMEs and individual entrepreneurs | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 1,364 |
Households - other | |
Concentration of risk | |
Concentration of credit risk | 477,882 |
Households - other | Spain | |
Concentration of risk | |
Concentration of credit risk | 89,821 |
Households - other | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 272,612 |
Households - other | America | |
Concentration of risk | |
Concentration of credit risk | 107,659 |
Households - other | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 7,790 |
Residential loans | |
Concentration of risk | |
Concentration of credit risk | 309,068 |
Residential loans | Spain | |
Concentration of risk | |
Concentration of credit risk | 63,355 |
Residential loans | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 207,575 |
Residential loans | America | |
Concentration of risk | |
Concentration of credit risk | 37,539 |
Residential loans | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 599 |
Consumer loans | |
Concentration of risk | |
Concentration of credit risk | 145,619 |
Consumer loans | Spain | |
Concentration of risk | |
Concentration of credit risk | 16,288 |
Consumer loans | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 62,584 |
Consumer loans | America | |
Concentration of risk | |
Concentration of credit risk | 62,248 |
Consumer loans | Rest of World | |
Concentration of risk | |
Concentration of credit risk | 4,499 |
Other purposes | |
Concentration of risk | |
Concentration of credit risk | 23,195 |
Other purposes | Spain | |
Concentration of risk | |
Concentration of credit risk | 10,178 |
Other purposes | Other European Countries | |
Concentration of risk | |
Concentration of credit risk | 2,453 |
Other purposes | America | |
Concentration of risk | |
Concentration of credit risk | 7,872 |
Other purposes | Rest of World | |
Concentration of risk | |
Concentration of credit risk | € 2,692 |
Risk management - Sovereign ris
Risk management - Sovereign risk and exposure to other public sector entities (Details) - Sovereign Risk - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | € 153,392 | € 127,930 | € 125,248 |
Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 18,003 | 20,300 | 29,087 |
Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 87,643 | 68,197 | 71,950 |
Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 35,703 | 26,732 | 20,000 |
Held-to-maturity investments category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 12,043 | 12,701 | 4,211 |
Derivatives | |||
Sovereign risk and exposure to other public sector entities | |||
Fair value of net direct derivative exposures | 1,681 | 2,505 | 2,070 |
Fair value of net indirect derivative exposures | 15 | 2 | 25 |
Spain | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 62,637 | 45,893 | 48,694 |
Spain | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 4,928 | 9,415 | 8,954 |
Spain | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 37,748 | 23,415 | 26,443 |
Spain | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 18,055 | 11,085 | 11,272 |
Spain | Held-to-maturity investments category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 1,906 | 1,978 | 2,025 |
Portugal | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 8,817 | 7,072 | 10,007 |
Portugal | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 53 | (58) | 104 |
Portugal | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 5,220 | 5,982 | 7,916 |
Portugal | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 3,541 | 1,143 | 1,987 |
Portugal | Held-to-maturity investments category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 3 | 4 | |
Italy | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 6,108 | 1,952 | 2,717 |
Italy | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 1,479 | 1,453 | 2,717 |
Italy | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 4,613 | 492 | |
Italy | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 16 | 7 | |
Rest of eurozone | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | (614) | (341) | 1 |
Rest of eurozone | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | (1,192) | (1,171) | (211) |
Rest of eurozone | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 497 | 751 | 143 |
Rest of eurozone | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 81 | 79 | 69 |
United Kingdom | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 16,403 | 17,639 | 5,163 |
United Kingdom | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 2 | 475 | (786) |
United Kingdom | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 1,751 | 1,938 | 5,808 |
United Kingdom | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 7,236 | 7,463 | 141 |
United Kingdom | Held-to-maturity investments category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 7,414 | 7,764 | |
Poland | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 6,640 | 6,290 | 5,401 |
Poland | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 1,034 | 287 | 13 |
Poland | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 5,566 | 5,973 | 5,346 |
Poland | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 40 | 30 | 42 |
Rest of Europe | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 570 | 791 | 670 |
Rest of Europe | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 172 | 120 | |
Rest of Europe | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 358 | 502 | 312 |
Rest of Europe | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 40 | 289 | 238 |
United States | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 5,929 | 5,713 | 5,093 |
United States | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 2,548 | 1,174 | 280 |
United States | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 2,616 | 3,819 | 4,338 |
United States | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 765 | 720 | 475 |
Brazil | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 27,294 | 24,286 | 23,929 |
Brazil | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 3,202 | 4,044 | 7,274 |
Brazil | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 20,201 | 16,098 | 13,522 |
Brazil | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 1,171 | 1,190 | 947 |
Brazil | Held-to-maturity investments category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 2,720 | 2,954 | 2,186 |
Mexico | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 9,518 | 10,461 | 10,519 |
Mexico | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 1,780 | 2,216 | 6,617 |
Mexico | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 5,152 | 5,072 | 3,630 |
Mexico | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 2,586 | 3,173 | 272 |
Chile | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 3,725 | 3,525 | 5,362 |
Chile | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 428 | 428 | 193 |
Chile | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 2,985 | 2,768 | 1,601 |
Chile | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 312 | 330 | 3,568 |
Other American Countries | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 1,511 | 1,172 | 1,802 |
Other American Countries | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 147 | 134 | 155 |
Other American Countries | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 424 | 497 | 1,204 |
Other American Countries | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 940 | 541 | 443 |
Rest of World | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 4,854 | 3,475 | 5,890 |
Rest of World | Financial assets held for trading and Financial assets designated at fair value through profit or loss, including short positions | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 3,422 | 1,903 | 3,657 |
Rest of World | Financial assets available for sale | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | 512 | 889 | 1,687 |
Rest of World | Loans and receivables category | |||
Sovereign risk and exposure to other public sector entities | |||
Risk exposure associated with instruments sharing characteristic | € 920 | € 683 | € 546 |
Risk management - Credit risk c
Risk management - Credit risk cycle (Details) - Credit risk | 12 Months Ended |
Dec. 31, 2017item | |
Planning (Commercial Strategic Plan) | |
Scenario analysis, horizon | 3 years |
Number of phases in recovery management | 4 |
Risk management - Forborne Loan
Risk management - Forborne Loans (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2017EUR (€)loan | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Forborne Loan Portfolio | |||
Forbearance portfolio, Amount | € 47,705 | ||
Percentage of forbearance portfolio | 24.00% | ||
Average coverage (as a percent) | 58.00% | ||
Decrease in forbearance exposure ( as a percent) | 19.80% | ||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 903,013 | € 840,004 | € 836,156 |
Forborne loan portfolio | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | 36,164 | € 37,365 | |
Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (11,541) | ||
Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 2,179,926 | ||
Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 14,333 | ||
Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 924,159 | ||
Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 33,372 | ||
Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 18,786 | ||
Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 4,986 | ||
Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (3,497) | ||
Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 2,921 | ||
Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 1,255 | ||
Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 4,110 | ||
Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 4,893 | ||
Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 2,140 | ||
Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 69 | ||
Public sector | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (2) | ||
Public sector | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 55 | ||
Public sector | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 89 | ||
Public sector | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 21 | ||
Public sector | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 22 | ||
Public sector | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 11 | ||
Public sector | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 5 | ||
Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (25) | ||
Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 248 | ||
Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 45 | ||
Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 120 | ||
Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 60 | ||
Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 40 | ||
Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 10 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (7,106) | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 259,792 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 9,631 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 45,746 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 13,663 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 9,255 | ||
Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 1,075 | ||
Construction and property development | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (1,111) | ||
Construction and property development | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 1,259 | ||
Construction and property development | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 236 | ||
Construction and property development | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 2,861 | ||
Construction and property development | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 2,612 | ||
Construction and property development | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 2,125 | ||
Construction and property development | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 30 | ||
Other warehouses | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (4,408) | ||
Other warehouses | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 1,919,831 | ||
Other warehouses | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 4,568 | ||
Other warehouses | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 878,272 | ||
Other warehouses | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 19,627 | ||
Other warehouses | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 9,480 | ||
Other warehouses | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | € 3,896 | ||
Nonperforming | |||
Forborne Loan Portfolio | |||
Percentage of forbearance portfolio | 42.00% | ||
Nonperforming | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (9,112) | ||
Nonperforming | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 866,022 | ||
Nonperforming | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 7,351 | ||
Nonperforming | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 147,423 | ||
Nonperforming | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 12,692 | ||
Nonperforming | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 8,780 | ||
Nonperforming | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 849 | ||
Nonperforming | Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (3,496) | ||
Nonperforming | Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 2,895 | ||
Nonperforming | Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 1,253 | ||
Nonperforming | Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 4,000 | ||
Nonperforming | Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 4,853 | ||
Nonperforming | Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 2,102 | ||
Nonperforming | Credit risk | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 69 | ||
Nonperforming | Public sector | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (2) | ||
Nonperforming | Public sector | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 22 | ||
Nonperforming | Public sector | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 8 | ||
Nonperforming | Public sector | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 13 | ||
Nonperforming | Public sector | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 7 | ||
Nonperforming | Public sector | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 7 | ||
Nonperforming | Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (13) | ||
Nonperforming | Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 79 | ||
Nonperforming | Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 2 | ||
Nonperforming | Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 59 | ||
Nonperforming | Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 22 | ||
Nonperforming | Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 8 | ||
Nonperforming | Other financial institutions (Financial business activity) | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 7 | ||
Nonperforming | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (6,233) | ||
Nonperforming | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 109,973 | ||
Nonperforming | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 5,522 | ||
Nonperforming | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 21,265 | ||
Nonperforming | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 7,839 | ||
Nonperforming | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 5,531 | ||
Nonperforming | Non-financial corporations and individual entrepreneurs (Non-financial business activity) | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 414 | ||
Nonperforming | Construction and property development | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (847) | ||
Nonperforming | Construction and property development | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 803 | ||
Nonperforming | Construction and property development | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 130 | ||
Nonperforming | Construction and property development | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 2,099 | ||
Nonperforming | Construction and property development | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 1,718 | ||
Nonperforming | Construction and property development | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 1,363 | ||
Nonperforming | Construction and property development | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 24 | ||
Nonperforming | Other warehouses | Credit risk | Forborne loan portfolio | Impairment losses | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € (2,864) | ||
Nonperforming | Other warehouses | Credit risk | Forborne loan portfolio | Without collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 755,948 | ||
Nonperforming | Other warehouses | Credit risk | Forborne loan portfolio | Without collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 1,819 | ||
Nonperforming | Other warehouses | Credit risk | Forborne loan portfolio | With property collateral | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Number of transactions | loan | 126,086 | ||
Nonperforming | Other warehouses | Credit risk | Forborne loan portfolio | With property collateral | Gross carrying amount | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Loans and receivables | € 4,824 | ||
Nonperforming | Other warehouses | Credit risk | Forborne loan portfolio | Real estate guarantee | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | 3,234 | ||
Nonperforming | Other warehouses | Credit risk | Forborne loan portfolio | Rest of real guarantees | |||
CURRENT REFINANCING AND RESTRUCTURING BALANCES | |||
Maximum amount of the actual collateral that can be considered | € 428 |
Risk management - Forborne L311
Risk management - Forborne Loans Roll Forward (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in the portfolio | ||
Beginning balance | € 840,004 | € 836,156 |
Balance at end of year | 903,013 | 840,004 |
Forborne loan portfolio | ||
Changes in the portfolio | ||
Beginning balance | 37,365 | |
Refinancing and restructuring of the period | 12,675 | |
Memorandum item: Impact recorded in the income statement for the period | 2,406 | |
Debt repayment | (9,107) | |
Foreclosure | (950) | |
Derecognized from the consolidated balance sheet | (5,334) | |
Others variations | 1,515 | |
Balance at end of year | € 36,164 | € 37,365 |
Credit risk | Forborne loan portfolio | ||
Forborne Loan Portfolio | ||
Percentage of loans covered by specific allowance | 24.00% | |
Credit risk | Forborne loan portfolio | With property collateral | ||
Forborne Loan Portfolio | ||
Percentage of loans secured | 50.00% | |
Performing | Credit risk | Forborne loan portfolio | ||
Forborne Loan Portfolio | ||
Performing loans, number of days past due criteria | 90 days | |
Credit exposure, percentage of total loans | 58.00% | |
Nonperforming | Credit risk | Forborne loan portfolio | ||
Forborne Loan Portfolio | ||
Percentage of loans covered by specific allowance | 45.00% |
Risk management - Trading Marke
Risk management - Trading Market Risk (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2017EUR (€)item | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Balance sheet amount | ||||
Total assets | € 1,444,305 | € 1,339,125 | € 1,340,260 | |
Liabilities subject to market risk | 1,444,305 | 1,339,125 | 1,340,260 | |
Liabilities | 1,337,472 | 1,236,426 | 1,241,507 | |
Total equity | 106,833 | 102,699 | 98,753 | € 89,714 |
Market risk | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | 1,444,305 | |||
Market risk | Liabilities subject to market risk | ||||
Balance sheet amount | ||||
Liabilities subject to market risk | 1,444,305 | |||
Market risk | Equity | ||||
Balance sheet amount | ||||
Total equity | 106,833 | |||
Market risk | Financial liabilities held for trading | Liabilities subject to market risk | ||||
Balance sheet amount | ||||
Liabilities | 107,624 | |||
Market risk | Financial liabilities designated at fair value through profit or loss | Liabilities subject to market risk | ||||
Balance sheet amount | ||||
Liabilities | 59,616 | |||
Market risk | Hedging derivatives, category | Liabilities subject to market risk | ||||
Balance sheet amount | ||||
Liabilities | 8,044 | |||
Market risk | Financial liabilities at amortized cost, category | Liabilities subject to market risk | ||||
Balance sheet amount | ||||
Liabilities | 1,126,399 | |||
Market risk | Provisions | Liabilities subject to market risk | ||||
Balance sheet amount | ||||
Liabilities | 14,489 | |||
Market risk | Other financial liabilities | Liabilities subject to market risk | ||||
Balance sheet amount | ||||
Liabilities | 8,709 | |||
Market risk | Other non-financial liabilities | ||||
Balance sheet amount | ||||
Liabilities | 12,591 | |||
Market risk | Cash and deposits at central banks | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | 110,995 | |||
Market risk | Financial assets held for trading | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | 125,458 | |||
Market risk | Financial assets designated at fair value through profit or loss | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | 34,782 | |||
Market risk | Financial assets available for sale | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | 133,271 | |||
Market risk | Investments accounted for using equity method | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | 6,184 | |||
Market risk | Hedging derivatives, category | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | 8,537 | |||
Market risk | Loans | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | 916,504 | |||
Market risk | Other financial assets | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | 47,390 | |||
Market risk | Other non-financial assets | Assets subject to market risk | ||||
Balance sheet amount | ||||
Total assets | € 61,184 | |||
Trading market risk | ||||
Balance sheet amount | ||||
VaR confidence level, percent | 99.00% | |||
Time frame, historical simulation | 1 day | |||
Time frame from reference date | 2 years | |||
Number of figures calculated daily for VaR | item | 2 | |||
Main market risk metric | ||||
VaR | € 10.2 | 17.9 | 13.6 | |
Trading market risk | Minimum | ||||
Balance sheet amount | ||||
Time frame from reference date | 520 days | |||
Main market risk metric | ||||
VaR | € 9.7 | 11.1 | ||
Trading market risk | Assets subject to market risk | ||||
Main market risk metric | ||||
VaR | 167,943 | |||
Trading market risk | Liabilities subject to market risk | ||||
Main market risk metric | ||||
VaR | 175,088 | |||
Trading market risk | Financial liabilities held for trading | Liabilities subject to market risk | ||||
Main market risk metric | ||||
VaR | 107,442 | |||
Trading market risk | Financial liabilities designated at fair value through profit or loss | Liabilities subject to market risk | ||||
Main market risk metric | ||||
VaR | 59,609 | |||
Trading market risk | Hedging derivatives, category | Liabilities subject to market risk | ||||
Main market risk metric | ||||
VaR | 8,037 | |||
Trading market risk | Financial assets held for trading | Assets subject to market risk | ||||
Main market risk metric | ||||
VaR | 124,924 | |||
Trading market risk | Financial assets designated at fair value through profit or loss | Assets subject to market risk | ||||
Main market risk metric | ||||
VaR | 34,500 | |||
Trading market risk | Hedging derivatives, category | Assets subject to market risk | ||||
Main market risk metric | ||||
VaR | 8,519 | |||
Other market risk metrics | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 1,276,362 | |||
Other market risk metrics | Liabilities subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 1,269,217 | |||
Other market risk metrics | Equity | ||||
Main market risk metric | ||||
Other risk factors | 106,833 | |||
Other market risk metrics | Other non-financial liabilities | ||||
Main market risk metric | ||||
Other risk factors | 12,591 | |||
Other market risk metrics | Other non-financial assets | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 61,184 | |||
Interest rate risk | ||||
Main market risk metric | ||||
VaR | 7.9 | 17.9 | 12.7 | |
Interest rate risk | Minimum | ||||
Main market risk metric | ||||
VaR | 7.7 | |||
Interest rate risk | Financial liabilities at amortized cost, category | Liabilities subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 1,126,399 | |||
Interest rate risk | Provisions | Liabilities subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 14,489 | |||
Interest rate risk | Other financial liabilities | Liabilities subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 8,709 | |||
Interest rate risk | Cash and deposits at central banks | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 110,995 | |||
Interest rate risk | Loans | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 916,504 | |||
Interest rate risk | Other financial assets | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 47,390 | |||
Interest rate; credit spread | Financial liabilities held for trading | Liabilities subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 182 | |||
Interest rate; credit spread | Financial liabilities designated at fair value through profit or loss | Liabilities subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 7 | |||
Interest rate; credit spread | Financial assets held for trading | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 534 | |||
Interest rate; credit spread | Financial assets designated at fair value through profit or loss | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 282 | |||
Interest rate; equities | Financial assets available for sale | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 133,271 | |||
Equity price risk | ||||
Main market risk metric | ||||
VaR | 1.9 | € 1.4 | € 1.1 | |
Equity price risk | Minimum | ||||
Main market risk metric | ||||
VaR | 1 | |||
Equity price risk | Investments accounted for using equity method | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 6,184 | |||
Interest and exchange rates | Hedging derivatives, category | Liabilities subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | 7 | |||
Interest and exchange rates | Hedging derivatives, category | Assets subject to market risk | ||||
Main market risk metric | ||||
Other risk factors | € 18 |
Risk management - Trading Ma313
Risk management - Trading Market Risk - VaR (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2017EUR (€)item | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Weighted average | |||
Main market risk metric | |||
VaR | € 21.5 | ||
Trading market risk | |||
Main market risk metric | |||
VaR | € 10.2 | € 17.9 | € 13.6 |
Comparison period | 2 years | ||
ES | € 11.5 | ||
VaR confidence level, percent | 99.00% | ||
ES confidence level, percent | 97.50% | ||
Time horizon | 1 day | ||
Number of exceptions for VaE | item | 2 | ||
VaE confidence level, percent | 99.00% | ||
Trading market risk | Minimum | |||
Main market risk metric | |||
VaR | € 9.7 | 11.1 | |
Trading market risk | Weighted average | |||
Main market risk metric | |||
VaR | 21.5 | 18.3 | 15.6 |
Trading market risk | Maximum | |||
Main market risk metric | |||
VaR | 63.2 | 32.9 | |
Trading market risk | Hedge funds | |||
Main market risk metric | |||
VaR | 32.6 | ||
Trading market risk | Monolines | |||
Main market risk metric | |||
VaR | 27.3 | ||
Diversification effect | |||
Main market risk metric | |||
VaR | (7.6) | (9.6) | (5.8) |
ES | (7.9) | ||
Diversification effect | Minimum | |||
Main market risk metric | |||
VaR | (2.1) | ||
Diversification effect | Weighted average | |||
Main market risk metric | |||
VaR | (8) | (10.3) | (11.1) |
Diversification effect | Maximum | |||
Main market risk metric | |||
VaR | (39.9) | ||
Interest rate risk | |||
Main market risk metric | |||
VaR | 7.9 | 17.9 | 12.7 |
ES | 10 | ||
Interest rate risk | Minimum | |||
Main market risk metric | |||
VaR | 7.7 | ||
Interest rate risk | Weighted average | |||
Main market risk metric | |||
VaR | 16.2 | 15.5 | 14.9 |
Interest rate risk | Maximum | |||
Main market risk metric | |||
VaR | 70.4 | ||
Equity price risk | |||
Main market risk metric | |||
VaR | 1.9 | 1.4 | 1.1 |
ES | 2.1 | ||
Equity price risk | Minimum | |||
Main market risk metric | |||
VaR | 1 | ||
Equity price risk | Weighted average | |||
Main market risk metric | |||
VaR | 3 | 1.9 | 1.9 |
Equity price risk | Maximum | |||
Main market risk metric | |||
VaR | 5.9 | ||
Currency risk | |||
Main market risk metric | |||
VaR | 3.3 | 4.8 | 2.6 |
ES | 2.8 | ||
Currency risk | Minimum | |||
Main market risk metric | |||
VaR | 2.1 | ||
Currency risk | Weighted average | |||
Main market risk metric | |||
VaR | 6.6 | 6.9 | 4.5 |
Currency risk | Maximum | |||
Main market risk metric | |||
VaR | 15.7 | ||
Credit spread | |||
Main market risk metric | |||
VaR | 4.6 | 3.3 | 2.9 |
ES | 4.6 | ||
Credit spread | Minimum | |||
Main market risk metric | |||
VaR | 2.3 | ||
Credit spread | Weighted average | |||
Main market risk metric | |||
VaR | 3.6 | 4.2 | 5.2 |
Credit spread | Maximum | |||
Main market risk metric | |||
VaR | 5.1 | ||
Commodity price risk | |||
Main market risk metric | |||
VaR | 0 | 0.1 | 0.1 |
ES | 0 | ||
Commodity price risk | Minimum | |||
Main market risk metric | |||
VaR | 0 | ||
Commodity price risk | Weighted average | |||
Main market risk metric | |||
VaR | 0 | € 0.1 | € 0.2 |
Commodity price risk | Maximum | |||
Main market risk metric | |||
VaR | € 0.1 |
Risk management - Structural Ma
Risk management - Structural Market Risk - Structural VaR (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Diversification effect | |||
Main market risk metric | |||
Value at risk | € (7.6) | € (9.6) | € (5.8) |
Currency risk | |||
Main market risk metric | |||
Value at risk | 3.3 | 4.8 | 2.6 |
Equity price risk | |||
Main market risk metric | |||
Value at risk | 1.9 | 1.4 | 1.1 |
Minimum | Diversification effect | |||
Main market risk metric | |||
Value at risk | (2.1) | ||
Minimum | Currency risk | |||
Main market risk metric | |||
Value at risk | 2.1 | ||
Minimum | Equity price risk | |||
Main market risk metric | |||
Value at risk | 1 | ||
Weighted average | |||
Main market risk metric | |||
Value at risk | 21.5 | ||
Weighted average | Diversification effect | |||
Main market risk metric | |||
Value at risk | (8) | (10.3) | (11.1) |
Weighted average | Currency risk | |||
Main market risk metric | |||
Value at risk | 6.6 | 6.9 | 4.5 |
Weighted average | Equity price risk | |||
Main market risk metric | |||
Value at risk | 3 | 1.9 | 1.9 |
Maximum | Diversification effect | |||
Main market risk metric | |||
Value at risk | (39.9) | ||
Maximum | Currency risk | |||
Main market risk metric | |||
Value at risk | 15.7 | ||
Maximum | Equity price risk | |||
Main market risk metric | |||
Value at risk | 5.9 | ||
Banking Book | Structural risks | |||
Main market risk metric | |||
Value at risk | 815.7 | 922.1 | 710.2 |
Banking Book | Diversification effect | |||
Main market risk metric | |||
Value at risk | € (376.8) | (316.6) | (419.2) |
Banking Book | Interest rate; credit spread | |||
Main market risk metric | |||
VaR percentage | 99.00% | ||
Time horizon | 1 day | ||
Value at risk | € 459.6 | 327.2 | 264.2 |
Banking Book | Currency risk | |||
Main market risk metric | |||
Value at risk | 471.2 | 588.5 | 657.1 |
Banking Book | Equity price risk | |||
Main market risk metric | |||
Value at risk | 261.6 | 323 | 208.1 |
Banking Book | Minimum | Structural risks | |||
Main market risk metric | |||
Value at risk | 754.9 | ||
Banking Book | Minimum | Diversification effect | |||
Main market risk metric | |||
Value at risk | (258.9) | ||
Banking Book | Minimum | Interest rate; credit spread | |||
Main market risk metric | |||
Value at risk | 280.9 | ||
Banking Book | Minimum | Currency risk | |||
Main market risk metric | |||
Value at risk | 471.2 | ||
Banking Book | Minimum | Equity price risk | |||
Main market risk metric | |||
Value at risk | 261.6 | ||
Banking Book | Weighted average | Structural risks | |||
Main market risk metric | |||
Value at risk | 878 | 869.3 | 698.5 |
Banking Book | Weighted average | Diversification effect | |||
Main market risk metric | |||
Value at risk | (337.3) | (323.4) | (509.3) |
Banking Book | Weighted average | Interest rate; credit spread | |||
Main market risk metric | |||
Value at risk | 373.9 | 340.6 | 350 |
Banking Book | Weighted average | Currency risk | |||
Main market risk metric | |||
Value at risk | 546.9 | 603.4 | 634.7 |
Banking Book | Weighted average | Equity price risk | |||
Main market risk metric | |||
Value at risk | 294.5 | € 248.7 | € 223.2 |
Banking Book | Maximum | Structural risks | |||
Main market risk metric | |||
Value at risk | 991.6 | ||
Banking Book | Maximum | Diversification effect | |||
Main market risk metric | |||
Value at risk | (407.5) | ||
Banking Book | Maximum | Interest rate; credit spread | |||
Main market risk metric | |||
Value at risk | 459.6 | ||
Banking Book | Maximum | Currency risk | |||
Main market risk metric | |||
Value at risk | 621.1 | ||
Banking Book | Maximum | Equity price risk | |||
Main market risk metric | |||
Value at risk | € 318.4 |
Risk management - Structural In
Risk management - Structural Interest Rate Risk (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2017EUR (€)country | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Structural interest rate risk | |||
Percentage of reasonably possible increase in risk assumption | 0.50% | ||
Percentage of reasonably possible decrease in risk assumption | 0.50% | ||
Interest rate risk | |||
Structural interest rate risk | |||
Value at risk | € 7.9 | € 17.9 | € 12.7 |
Interest rate risk | 100 basis points | |||
Structural interest rate risk | |||
Percentage of reasonably possible increase in risk assumption | 1.00% | ||
Percentage of reasonably possible decrease in risk assumption | 1.00% | ||
Interest rate risk | 25 basis points | |||
Structural interest rate risk | |||
Percentage of reasonably possible increase in risk assumption | 0.25% | ||
Percentage of reasonably possible decrease in risk assumption | (0.25%) | ||
Interest rate risk | 50 basis points | |||
Structural interest rate risk | |||
Percentage of reasonably possible increase in risk assumption | 0.50% | ||
Percentage of reasonably possible decrease in risk assumption | (0.50%) | ||
Interest rate risk | 75 basis points | |||
Structural interest rate risk | |||
Percentage of reasonably possible increase in risk assumption | 0.75% | ||
Percentage of reasonably possible decrease in risk assumption | (0.75%) | ||
Market risk | Latin America | |||
Structural interest rate risk | |||
Time frame, historical simulation | 1 day | ||
VaR confidence level, percent | 99.00% | ||
Value at risk | € 261.6 | ||
Banking Book | Net interest income risk | Europe and United States | 100 basis points | |||
Structural interest rate risk | |||
Period covered by sensitivity analysis | 1 year | ||
Percentage of reasonably possible increase in risk assumption | 1.00% | ||
Percentage of reasonably possible decrease in risk assumption | 1.00% | ||
Banking Book | Net interest income risk | Europe and United States | Euro | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in profit (loss) due to reasonably possible increase in designated risk component | € 219 | ||
Increase (decrease) in profit (loss) due to reasonably possible decrease in designated risk component | 219 | ||
Banking Book | Net interest income risk | Europe and United States | Pound sterling | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in profit (loss) due to reasonably possible increase in designated risk component | 246 | ||
Increase (decrease) in profit (loss) due to reasonably possible decrease in designated risk component | 246 | ||
Banking Book | Net interest income risk | Europe and United States | U.S. dollar | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in profit (loss) due to reasonably possible increase in designated risk component | 190 | ||
Increase (decrease) in profit (loss) due to reasonably possible decrease in designated risk component | 190 | ||
Banking Book | Net interest income risk | Europe and United States | Polish zloty | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in profit (loss) due to reasonably possible increase in designated risk component | 55 | ||
Increase (decrease) in profit (loss) due to reasonably possible decrease in designated risk component | € 55 | ||
Banking Book | Net interest income risk | Latin America | 100 basis points | |||
Structural interest rate risk | |||
Period covered by sensitivity analysis | 1 year | ||
Percentage of reasonably possible increase in risk assumption | 1.00% | ||
Number of countries | country | 3 | ||
Banking Book | Net interest income risk | Brazil | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in profit (loss) due to reasonably possible increase in designated risk component | € 95 | ||
Increase (decrease) in profit (loss) due to reasonably possible decrease in designated risk component | 95 | ||
Banking Book | Net interest income risk | Chile | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in profit (loss) due to reasonably possible increase in designated risk component | 39 | ||
Increase (decrease) in profit (loss) due to reasonably possible decrease in designated risk component | 39 | ||
Banking Book | Net interest income risk | Mexico | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in profit (loss) due to reasonably possible increase in designated risk component | 36 | ||
Increase (decrease) in profit (loss) due to reasonably possible decrease in designated risk component | € 36 | ||
Banking Book | Market value of equity | Europe and United States | 100 basis points | |||
Structural interest rate risk | |||
Percentage of reasonably possible increase in risk assumption | 1.00% | ||
Percentage of reasonably possible decrease in risk assumption | 1.00% | ||
Banking Book | Market value of equity | Europe and United States | Euro | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in equity due to reasonably possible increase in designated risk component | € 4,902 | ||
Increase (decrease) in equity due to reasonably possible decrease in designated risk component | 4,902 | ||
Banking Book | Market value of equity | Europe and United States | Pound sterling | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in equity due to reasonably possible increase in designated risk component | 431 | ||
Increase (decrease) in equity due to reasonably possible decrease in designated risk component | 431 | ||
Banking Book | Market value of equity | Europe and United States | U.S. dollar | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in equity due to reasonably possible increase in designated risk component | 626 | ||
Increase (decrease) in equity due to reasonably possible decrease in designated risk component | 626 | ||
Banking Book | Market value of equity | Europe and United States | Polish zloty | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in equity due to reasonably possible increase in designated risk component | 72 | ||
Increase (decrease) in equity due to reasonably possible decrease in designated risk component | € 72 | ||
Banking Book | Market value of equity | Latin America | 100 basis points | |||
Structural interest rate risk | |||
Period covered by sensitivity analysis | 1 year | ||
Percentage of reasonably possible increase in risk assumption | 1.00% | ||
Percentage of reasonably possible decrease in risk assumption | 1.00% | ||
Banking Book | Market value of equity | Brazil | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in equity due to reasonably possible increase in designated risk component | € 521 | ||
Increase (decrease) in equity due to reasonably possible decrease in designated risk component | 521 | ||
Banking Book | Market value of equity | Chile | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in equity due to reasonably possible increase in designated risk component | 179 | ||
Increase (decrease) in equity due to reasonably possible decrease in designated risk component | 179 | ||
Banking Book | Market value of equity | Mexico | 100 basis points | |||
Structural interest rate risk | |||
Increase (decrease) in equity due to reasonably possible increase in designated risk component | 91 | ||
Increase (decrease) in equity due to reasonably possible decrease in designated risk component | € 91 |
Risk management - Structural Fo
Risk management - Structural Foreign Currency Risk (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Currency risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
VaR | € 3.3 | € 4.8 | € 2.6 |
Risk management - Liquidity and
Risk management - Liquidity and Funding Risk (Details) € in Millions | Jan. 01, 2018 | Dec. 31, 2017EUR (€)component | Dec. 31, 2016 |
Liquidity management | |||
NSFR percentage | 105.00% | ||
United Kingdom | |||
Liquidity management | |||
NSFR percentage | 121.00% | ||
Brazil | |||
Liquidity management | |||
NSFR percentage | 109.00% | ||
United States | |||
Liquidity management | |||
NSFR percentage | 110.00% | ||
Forecast | |||
Liquidity management | |||
Liquidity coverage ratio, percentage | 105.00% | ||
Liquidity risk | |||
Liquidity management | |||
Number of cornerstones | component | 3 | ||
Customer deposits as a percent of net liabilities | 66.70% | ||
Customer deposits as a percent of net loans | 92.00% | 87.00% | |
Diversified wholesale funding as a percentage to total net funding | 18.00% | ||
Stable ratio of credits over net assets, percent | 75.00% | ||
LTD ratio, percentage | 109.00% | ||
Customer deposits plus medium and long-term funding to lending ratio, percentage | 115.00% | ||
Recourse to short-term wholesale funding ratio, percent | 2.00% | ||
Structural surplus | € | € 156,927 | ||
Required initial LCR percentage (Liquidity Coverage Ratio) | 80.00% | ||
Liquidity coverage ratio, percentage | 133.00% | ||
Net stable funding ration inclusion period | 2 years | ||
Liquidity risk | Forecast | |||
Liquidity management | |||
Required initial LCR percentage (Liquidity Coverage Ratio) | 100.00% | ||
Liquidity risk | Minimum | |||
Liquidity management | |||
Required LCR percentage after phase-in period (Liquidity Coverage Ratio) | 100.00% | ||
Liquidity coverage ratio, percentage | 100.00% | ||
NSFR percentage | 100.00% | ||
Liquidity risk | Maximum | |||
Liquidity management | |||
LTD ratio, percentage | 120.00% |
Risk management - Liquidity 318
Risk management - Liquidity and Funding Risks, On and Off Balance Sheet Encumbrances (Details) € in Millions | 12 Months Ended | ||
Dec. 31, 2017EUR (€)component | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | |
Encumbered assets and collateral received and matching liabilities | |||
Assets | € 1,444,305 | € 1,339,125 | € 1,340,260 |
Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Percent of total assets encumbered | 28.00% | ||
Total assets encumbered | € 1,558 | ||
With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Matching liabilities, contingent liabilities or securities lent | 330.7 | ||
Assets, collateral received and own debt securities issued other than covered bonds and ABSs encumbered | € 436.3 | ||
Number of categories of encumbered assets | component | 2 | ||
Structural funding transactions, percentage | 13.00% | ||
With property collateral | More than 12 months | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Percent of total assets encumbered | 45.00% | ||
With property collateral | Within one year | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Percent of total assets encumbered | 55.00% | ||
On-balance-sheet assets | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | € 349.6 | ||
Percent of total assets encumbered | 64.00% | ||
On-balance-sheet assets | Without collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | € 1,094.7 | ||
On-balance-sheet assets | Loans and credits | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | 224.9 | ||
On-balance-sheet assets | Loans and credits | Without collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | 803.9 | ||
On-balance-sheet assets | Equity instruments | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | 16.3 | ||
On-balance-sheet assets | Equity instruments | Without collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | 10.8 | ||
On-balance-sheet assets | Debt instruments | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | 89.8 | ||
On-balance-sheet assets | Debt instruments | Without collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | 109.6 | ||
On-balance-sheet assets | Other assets Member | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | 18.6 | ||
On-balance-sheet assets | Other assets Member | Without collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Assets | 170.5 | ||
Off-balance-sheet assets | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Fair value of encumbered collateral received or own debt securities issued | 86.7 | ||
Fair value of collateral received or own debt securities issued available for encumbrance | 27.2 | ||
Off-balance-sheet assets | Equity instruments | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Fair value of encumbered collateral received or own debt securities issued | 3.2 | ||
Fair value of collateral received or own debt securities issued available for encumbrance | 5.5 | ||
Off-balance-sheet assets | Debt instruments | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Fair value of encumbered collateral received or own debt securities issued | 81.6 | ||
Fair value of collateral received or own debt securities issued available for encumbrance | 21.7 | ||
Off-balance-sheet assets | Other collateral received | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Fair value of encumbered collateral received or own debt securities issued | 1.9 | ||
Off-balance-sheet assets | Own debt securities issued other than own covered bonds or ABSs | With property collateral | Liquidity risk | |||
Encumbered assets and collateral received and matching liabilities | |||
Fair value of collateral received or own debt securities issued available for encumbrance | € 3.6 |
Risk management - Operational R
Risk management - Operational Risk Control and Monitoring (Details) | 12 Months Ended |
Dec. 31, 2017item | |
Risk management | |
Number of previous years | 2 |
Number of regulatory compliance committee | 4 |
Number of Meetings of Corporate Commercialization Committee | 12 |
Number of proposals of new products or services | 148 |
Number of meetings of Monitoring and Consumer Protection Committee | 23 |
Number of meetings of Anti-money Laundering or Anti-terrorism Financing Committee | 4 |
Number of meetings of Reputational Risk Steering Committee | 4 |
Number of meetings of Corporate Compliance and Conduct Committee | 9 |
Risk management - Capital Risk
Risk management - Capital Risk (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Capital risk | ||
CET1 phase-in percentage | 12.26% | 12.53% |
Tier 1 phase in capital ratio | 12.77% | 12.53% |
Percentage of countercyclical buffer on common equity Tier1 capital | 0.03% | |
Total phase-in capital | 14.99% | 14.68% |
CET1 fully loaded ratio | 10.84% | |
Minimum | ||
Capital risk | ||
CET1 phase-in percentage | 8.655% | |
Pillar 1 percentage | 4.50% | |
Pillar 2 percentage | 1.50% | |
Capital conservation buffer, percentage | 1.875% | |
Globally Systemically Important Entity percentage | 0.75% | |
Tier 1 phase in capital ratio | 1.50% | |
Total phase-in capital | 12.155% |
Risk management - Regulatory Ca
Risk management - Regulatory Capital (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Nov. 01, 2017 | Jul. 03, 2017 | Dec. 31, 2016 | Nov. 04, 2016 | Dec. 31, 2015 | Nov. 04, 2015 | Apr. 29, 2015 | Jan. 29, 2015 | Jan. 08, 2015 | Dec. 31, 2014 |
Risk management | |||||||||||
CET1 fully loaded ratio | 10.84% | ||||||||||
Reconciliation of accounting capital with regulatory capital | |||||||||||
Subscribed capital | € 8,068 | € 48 | € 729 | € 7,291 | € 74 | € 7,217 | € 59 | € 128 | € 131 | € 607 | € 6,292 |
Share premium account | 51,053 | € 6,343 | 44,912 | 45,001 | € 6,893 | ||||||
Reserves | 52,577 | 49,244 | |||||||||
Treasury shares | (22) | (7) | (210) | ||||||||
Attributable profit | 6,619 | 6,204 | 5,966 | ||||||||
Approved dividends | (2,029) | (1,667) | (1,546) | ||||||||
Total equity attributable to owners of parent | 116,265 | 105,978 | |||||||||
Valuation Adjustments | (21,777) | (15,039) | |||||||||
Non-controlling interests | 12,344 | 11,761 | 10,713 | ||||||||
TOTAL EQUITY | 106,833 | 102,699 | € 98,753 | € 89,714 | |||||||
Goodwill and intangible assets | (28,537) | (28,405) | |||||||||
Eligible preference shares and preferred securities | 7,635 | 6,469 | |||||||||
Accrued dividend | (968) | (802) | |||||||||
Other adjustments | (7,679) | (6,253) | |||||||||
Tier I (Phase-in) | € 77,283 | € 73,709 |
Risk management - Regulatory322
Risk management - Regulatory Capital Phase-in Coefficients (Details) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Capital coefficients | ||
Level 1 ordinary eligible capital (millions of euros) | € 74,173 | € 73,709 |
Level 1 additional eligible capital (millions of euros) | 3,110 | |
Level 2 eligible capital (millions of euros) | 13,422 | 12,628 |
Risks (millions of euros) | € 605,064 | € 588,088 |
Level 1 ordinary capital coefficient (CET 1) (as a percent) | 12.26% | 12.53% |
Level 1 additional capital coefficient (AT1) (as a percent) | 0.51% | |
Level 1 phase in capital ratio (as a percent) | 12.77% | 12.53% |
Level 2 capital coefficient (TIER 2) (as a percent) | 2.22% | 2.15% |
Total capital coefficient (as a percent) | 14.99% | 14.68% |
Risk management - Regulatory323
Risk management - Regulatory Capital Alternative Standard (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Nov. 01, 2017 | Jul. 03, 2017 | Dec. 31, 2016 | Nov. 04, 2016 | Dec. 31, 2015 | Nov. 04, 2015 | Apr. 29, 2015 | Jan. 29, 2015 | Jan. 08, 2015 | Dec. 31, 2014 |
Eligible Capital | |||||||||||
Common Equity Tier 1 | € 74,173 | € 73,709 | |||||||||
CAPITAL | 8,068 | € 48 | € 729 | 7,291 | € 74 | € 7,217 | € 59 | € 128 | € 131 | € 607 | € 6,292 |
(-) Treasury shares and own shares financed | (22) | (10) | |||||||||
Share premium | 51,053 | € 6,343 | 44,912 | € 45,001 | € 6,893 | ||||||
Reserves | 52,241 | 49,234 | |||||||||
Other retained earnings | (22,363) | (14,924) | |||||||||
Minority interests | 7,991 | 8,018 | |||||||||
Profit net of dividends | 3,621 | 3,735 | |||||||||
Deductions | (26,416) | (24,548) | |||||||||
Goodwill and intangible assets | (22,829) | (21,585) | |||||||||
Others | (3,586) | (2,963) | |||||||||
Additional Tier I | 3,110 | ||||||||||
Eligible instruments AT1 | 8,498 | 6,469 | |||||||||
T1 excesses - subsidiaries | 347 | 351 | |||||||||
Residual value of intangibles | (5,707) | (6,820) | |||||||||
Deductions | (27) | ||||||||||
Tier II | 13,422 | 12,628 | |||||||||
Eligible instruments AT2 | 9,901 | 9,039 | |||||||||
Gen. Funds and surplus loans loss prov. IRB | 3,823 | 3,493 | |||||||||
T2 excesses - subsidiaries | (275) | 96 | |||||||||
Deductions | (27) | ||||||||||
TOTAL ELIGIBLE CAPITAL | € 90,706 | € 86,337 |
Risk management - Regulatory324
Risk management - Regulatory Capital Other Information (Details) € in Millions | 12 Months Ended | |
Dec. 31, 2017EUR (€)companycomponent | Dec. 31, 2016EUR (€) | |
Leverage ratio | ||
Level 1 Capital (millions of euros) | € 77,283 | € 73,709 |
Exposure (millions of euros) | € 1,463,090 | € 1,364,889 |
Leverage Ratio (as a percent) | 5.28% | 5.40% |
Global systemically important banks | ||
Number of global systemically important banks (G-SIBs) | company | 30 | |
Number of criteria determining designation as global systemically important bank | component | 5 | |
Capital buffer percentage | 1.00% | |
Minimum | ||
Model roll-out | ||
Coverage of net exposure of the credit portfolio under AIRB (as a percent) | 90.00% |
Other Disclosures - Parent-Only
Other Disclosures - Parent-Only Balance Sheets (Details) - EUR (€) € in Millions | Dec. 31, 2017 | Nov. 01, 2017 | Jul. 03, 2017 | Dec. 31, 2016 | Nov. 04, 2016 | Dec. 31, 2015 | Nov. 04, 2015 | Apr. 29, 2015 | Jan. 29, 2015 | Jan. 08, 2015 | Dec. 31, 2014 |
Assets [abstract] | |||||||||||
Cash and bank balances at central banks | € 87,430 | € 54,637 | € 56,556 | ||||||||
Financial assets held for trading | 125,458 | 148,187 | 146,346 | ||||||||
Held-to-maturity investments | 13,491 | 14,468 | 4,355 | ||||||||
Loans and receivables | 903,013 | 840,004 | 836,156 | ||||||||
Investments | 6,184 | 4,836 | 3,251 | € 3,471 | |||||||
Premises and equipment, net | 20,650 | 20,770 | 19,335 | ||||||||
Other assets | 9,766 | 8,447 | 7,675 | ||||||||
TOTAL ASSETS | 1,444,305 | 1,339,125 | 1,340,260 | ||||||||
Liabilities [abstract] | |||||||||||
Other liabilities | 12,591 | 11,070 | 10,221 | ||||||||
TOTAL LIABILITIES | 1,337,472 | 1,236,426 | 1,241,507 | ||||||||
Shareholders' equity | |||||||||||
Share capital | 8,068 | € 48 | € 729 | 7,291 | € 74 | 7,217 | € 59 | € 128 | € 131 | € 607 | 6,292 |
TOTAL EQUITY | 106,833 | 102,699 | 98,753 | € 89,714 | |||||||
TOTAL LIABILITIES AND EQUITY | 1,444,305 | 1,339,125 | 1,340,260 | ||||||||
Banco Santander S.A. | |||||||||||
Assets [abstract] | |||||||||||
Cash and bank balances at central banks | 76,690 | 49,979 | 63,790 | ||||||||
Financial assets held for trading | 64,326 | 70,437 | 79,474 | ||||||||
Held-to-maturity investments | 49,194 | 45,702 | 54,807 | ||||||||
Loans and receivables | 197,591 | 195,532 | 200,046 | ||||||||
Investments | 85,428 | 80,614 | 80,822 | ||||||||
Premises and equipment, net | 1,929 | 1,834 | 1,781 | ||||||||
Other assets | 17,257 | 17,146 | 17,554 | ||||||||
TOTAL ASSETS | 492,415 | 461,244 | 498,274 | ||||||||
Liabilities [abstract] | |||||||||||
Deposits | 256,389 | 265,565 | 277,058 | ||||||||
Short-term debt | 40,540 | 19,110 | 36,353 | ||||||||
Long-term debt | 53,023 | 34,499 | 41,248 | ||||||||
Total borrowings | 93,563 | 53,609 | 77,601 | ||||||||
Other liabilities | 71,896 | 78,835 | 81,756 | ||||||||
TOTAL LIABILITIES | 421,848 | 398,009 | 436,415 | ||||||||
Shareholders' equity | |||||||||||
Share capital | 8,068 | 7,291 | 7,217 | ||||||||
Retained earnings and other reserves | 62,499 | 55,944 | 54,642 | ||||||||
TOTAL EQUITY | 70,567 | 63,235 | 61,859 | ||||||||
TOTAL LIABILITIES AND EQUITY | 492,415 | 461,244 | 498,274 | ||||||||
Bank Subsidiaries [Member] | Banco Santander S.A. | |||||||||||
Assets [abstract] | |||||||||||
Cash and bank balances at central banks | 20,818 | 11,442 | 10,471 | ||||||||
Held-to-maturity investments | 6,474 | 8,326 | 12,191 | ||||||||
Investments | 65,567 | 63,210 | 68,681 | ||||||||
Liabilities [abstract] | |||||||||||
Deposits | 20,391 | 19,179 | 18,365 | ||||||||
Total borrowings | 1,138 | 770 | |||||||||
Non-Bank Subsidiaries [Member] | Banco Santander S.A. | |||||||||||
Assets [abstract] | |||||||||||
Held-to-maturity investments | 3,729 | 3,662 | 2,978 | ||||||||
Loans and receivables | 33,113 | 35,085 | 36,204 | ||||||||
Investments | 19,861 | 17,404 | 12,141 | ||||||||
Liabilities [abstract] | |||||||||||
Deposits | 13,115 | 40,082 | 43,954 | ||||||||
Total borrowings | € 2,966 | € 14,062 | € 17,310 |
Other Disclosures - Parent-O326
Other Disclosures - Parent-Only Income Statements (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Income Statements, Captions [Line Items] | |||
Interest income | € 56,041 | € 55,156 | € 57,198 |
Dividend income | 384 | 413 | 455 |
Interest expense | (21,745) | (24,067) | (24,386) |
Non-interest income | 1,618 | 1,919 | 1,971 |
Non-interest expense | (1,966) | (1,977) | (2,235) |
Operating profit / (loss) before tax | 12,091 | 10,768 | 9,547 |
Tax expense or income from continuing operations | (3,884) | (3,282) | (2,213) |
Net income | 8,207 | 7,486 | 7,334 |
Banco Santander S.A. | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest income | 5,733 | 6,023 | 6,948 |
Dividend income | 3,320 | 3,459 | 3,235 |
Interest and dividends from affiliates | 9,053 | 9,482 | 10,183 |
Interest expense | (3,204) | (3,113) | (3,582) |
Interest income/(Charges) | 5,849 | 6,369 | 6,601 |
Provision for credit losses | (451) | (528) | (1,002) |
Interest income/ (Charges) after provision for credit losses | 5,398 | 5,841 | 5,599 |
Non-interest income | 3,872 | 3,403 | 3,268 |
Non-interest expense | (6,293) | (7,115) | (6,836) |
Operating profit / (loss) before tax | 2,977 | 2,129 | 2,031 |
Tax expense or income from continuing operations | 29 | 352 | 246 |
Net income | 3,006 | 2,481 | 2,277 |
Banco Santander S.A. | Bank Subsidiaries [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Dividend income | 2,580 | 2,686 | 2,786 |
Banco Santander S.A. | Non-Bank Subsidiaries [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Dividend income | € 740 | € 773 | € 449 |
Other Disclosures - Parent-O327
Other Disclosures - Parent-Only Comprehensive Income Statements (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Statement of Income Captions [Line Items] | |||
Profit (loss) | € 8,207 | € 7,486 | € 7,334 |
OTHER RECOGNIZED INCOME AND EXPENSE | (7,320) | (303) | (4,076) |
Other comprehensive income that will be reclassified to profit or loss, net of tax | (7,232) | 503 | (4,521) |
Financial assets available-for-sale | 683 | 1,326 | (1,216) |
Revaluation gains (losses) | 1,137 | 2,192 | (555) |
Amounts transferred to income statement | (454) | (866) | (661) |
Cash flow hedges (Effective portion) | (441) | 495 | (91) |
Revaluation gains (losses) | 501 | 6,231 | (105) |
Amounts transferred to income statement | (942) | (5,736) | 14 |
Hedges of net investments in foreign operations (Effective portion) | 614 | (1,329) | (27) |
Revaluation gain (losses) | 614 | (1,330) | (27) |
Amounts transferred to income statement | 1 | ||
Income tax relating to components of other comprehensive income that may be reclassified to profit or loss | (4) | (745) | 478 |
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (88) | (806) | 445 |
Actuarial gains and losses on defined benefit pension plans | (157) | (1,172) | 695 |
Income tax relating to items that will not be reclassified to profit or loss | 68 | 367 | (250) |
Total recognized income and expenses | 887 | 7,183 | 3,258 |
Banco Santander S.A. | |||
Condensed Statement of Income Captions [Line Items] | |||
Profit (loss) | 3,006 | 2,481 | 2,277 |
OTHER RECOGNIZED INCOME AND EXPENSE | (356) | 364 | (356) |
Other comprehensive income that will be reclassified to profit or loss, net of tax | (341) | 439 | (293) |
Financial assets available-for-sale | (625) | 619 | (416) |
Revaluation gains (losses) | (283) | 830 | 34 |
Amounts transferred to income statement | (342) | (211) | (450) |
Cash flow hedges (Effective portion) | (7) | 4 | (1) |
Revaluation gains (losses) | (7) | 4 | (1) |
Hedges of net investments in foreign operations (Effective portion) | (1) | ||
Revaluation gain (losses) | (1) | ||
Income tax relating to components of other comprehensive income that may be reclassified to profit or loss | 291 | (184) | 125 |
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (15) | (75) | (63) |
Actuarial gains and losses on defined benefit pension plans | (23) | (106) | (90) |
Income tax relating to items that will not be reclassified to profit or loss | 8 | 31 | 27 |
Total recognized income and expenses | € 2,650 | € 2,845 | € 1,921 |
Other Disclosures - Parent-O328
Other Disclosures - Parent-Only Cash Flow Statements (Details) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Profit (loss) | € 8,207 | € 7,486 | € 7,334 |
Adjustments to profit | 23,927 | 22,032 | 20,614 |
Net increase/(decrease) in operating assets | (18,349) | (17,966) | (69,587) |
Increase (decrease) in operating liabilities | 30,540 | 13,143 | 49,522 |
Income tax recovered/(paid) | (4,137) | (2,872) | (2,205) |
CASH FLOWS FROM OPERATING ACTIVITIES | 40,188 | 21,823 | 5,678 |
Investments (-) | (10,134) | (18,204) | (10,671) |
Divestments (+) | 6,126 | 4,440 | 4,453 |
CASH FLOWS FROM INVESTING ACTIVITIES | (4,008) | (13,764) | (6,218) |
Proceeds from issuance of own equity instruments | 7,072 | 7,500 | |
Proceeds from disposal of own equity instruments | 1,331 | 1,604 | 3,048 |
Payments for acquisition of own equity instrument | (1,309) | (1,380) | (3,225) |
Dividends paid | (2,665) | (2,309) | (1,498) |
Other payments related to financing activities | (1,802) | (943) | (286) |
CASH FLOWS FROM FINANCING ACTIVITIES | 4,206 | (5,745) | 8,960 |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES | (5,845) | (3,611) | (522) |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 34,541 | (1,297) | 7,898 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 76,454 | 77,751 | 69,853 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 110,995 | 76,454 | 77,751 |
Banco Santander S.A. | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Profit (loss) | 3,006 | 2,481 | 2,277 |
Adjustments to profit | 1,824 | 1,245 | 3,081 |
Net increase/(decrease) in operating assets | (10,430) | 36,393 | (2,367) |
Increase (decrease) in operating liabilities | 21,915 | (36,632) | (4,585) |
Income tax recovered/(paid) | (839) | 151 | (21) |
CASH FLOWS FROM OPERATING ACTIVITIES | 15,476 | 3,638 | (1,615) |
Investments (-) | (8,818) | (4,419) | (2,149) |
Divestments (+) | 4,995 | 7,249 | 1,696 |
CASH FLOWS FROM INVESTING ACTIVITIES | (3,823) | 2,830 | (453) |
Proceeds from issuance of own equity instruments | 7,072 | 7,500 | |
Proceeds from disposal of own equity instruments | 1,004 | 957 | 2,240 |
Payments for acquisition of own equity instrument | (972) | (943) | (2,224) |
Issuance of debt securities | 2,894 | 2,346 | 2,849 |
Redemption of debt securities | (764) | (5,333) | (935) |
Dividends paid | (2,665) | (2,308) | (1,498) |
Other payments related to financing activities | 532 | (72) | |
CASH FLOWS FROM FINANCING ACTIVITIES | 7,101 | (5,281) | 7,860 |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES | (655) | 289 | (496) |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 18,099 | 1,476 | 5,296 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 15,635 | 14,159 | 8,863 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | € 33,734 | € 15,635 | € 14,159 |
Other Disclosures - Preference
Other Disclosures - Preference Shares and Preferred Securities (Details) € in Millions, £ in Millions | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) |
Financial liabilities at amortized cost, category | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Outstanding issue amount | € 21,510 | € 19,902 | € 21,153 | € 17,132 | |
Subordinated liabilities | Financial liabilities at amortized cost, category | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Outstanding issue amount | 8,773 | 7,329 | 7,198 | ||
Preference Shares | Financial liabilities at amortized cost, category | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Outstanding issue amount | 404 | 413 | 449 | ||
Preferred Securities | Financial liabilities at amortized cost, category | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Outstanding issue amount | € 8,369 | € 6,916 | € 6,749 | ||
Santander UK plc | Convertible Subordinated Issue | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Outstanding issue amount | £ | £ 200 |
Other Disclosures - Preferen330
Other Disclosures - Preference Shares and Securities Detail (Details) £ / shares in Units, € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017GBP (£)£ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Disclosure of detailed information about financial instruments [line items] | ||||||
Dividends accrued | £ / shares | £ 1,000 | |||||
Sterling deposits term | 3 months | |||||
Financial liabilities at amortized cost, category | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 21,510 | € 19,902 | € 21,153 | € 17,132 | ||
CCPSs | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Common Equity Tier 1 Ratio (CET1) maximum threshold percentage for conversion of the subordinated issue | 5.125% | 5.125% | 5.125% | |||
Subordinated liabilities | Financial liabilities at amortized cost, category | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 8,773 | 7,329 | 7,198 | |||
Preference Shares | Financial liabilities at amortized cost, category | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | 404 | 413 | 449 | |||
Preferred Securities | Financial liabilities at amortized cost, category | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 8,369 | € 6,916 | € 6,749 | |||
Fixed interest rate | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Interest rate (as a percent) | 6.222% | 6.222% | 6.222% | |||
Floating interest rate | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Interest rate (as a percent) | 1.13% | 1.13% | 1.13% | |||
Banco Santander (Brasil) S.A | Tier 1 Perpetual Subordinated Notes | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional amount | $ | $ 1,248 | |||||
Percentage of perpetual subordinated notes acquired | 89.60% | 89.60% | 89.60% | |||
Common Equity Tier 1 Ratio (CET1) maximum threshold percentage for conversion of the subordinated issue | 5.125% | 5.125% | 5.125% | |||
Issuance By Santander UK PLC In October 1995 [Member] | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | £ | £ 80.3 | |||||
Issuance By Santander UK PLC In October 1995 [Member] | Fixed interest rate | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Interest rate (as a percent) | 10.375% | 10.375% | 10.375% | |||
Issuance By Santander UK PLC In February 1996 [Member] | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | £ | £ 80.3 | |||||
Issuance By Santander UK PLC In February 1996 [Member] | Fixed interest rate | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Interest rate (as a percent) | 10.375% | 10.375% | 10.375% | |||
Issuance By Santander UK PLC In May 2006 [Member] | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | £ | £ 13.8 | |||||
Issuance By Santander UK PLC In May 2006 [Member] | Fixed interest rate | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Interest rate (as a percent) | 6.222% | 6.222% | 6.222% | |||
Issuance By Santander Bank, National Association In August 2000 [Member] | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 153 | |||||
Issuance By Santander Bank, National Association In August 2000 [Member] | Fixed interest rate | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Interest rate (as a percent) | 12.00% | 12.00% | 12.00% | |||
Issuance By Santander Holdings USA, Inc. In May 2006 [Member] | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 75.5 | |||||
Issuance By Santander Holdings USA, Inc. In May 2006 [Member] | Fixed interest rate | Preference Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Interest rate (as a percent) | 7.30% | 7.30% | 7.30% | |||
Issuance By Banco Espanol De Credito In October 2004 [Member] | CMS 10 Interest rate [Member] | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 36.5 | |||||
Variable interest rate ( as a percent) | 0.125% | 0.125% | 0.125% | |||
Issuance By Banco Espanol De Credito In November 2004 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 106.5 | |||||
Interest rate (as a percent) | 5.50% | 5.50% | 5.50% | |||
Issuance By Banco Santander S.A. In March 2014 [Member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional amount | € 1,500 | |||||
Interest rate (as a percent) | 6.25% | 6.25% | 6.25% | |||
Initial interest rate term | 5 years | |||||
Adjustment to reference rate, after initial interest rate period | 5.41% | 5.41% | 5.41% | |||
Reference rate, after initial interest rate period | 5-year Mid-Swap Rate | |||||
Adjustment to reference rate (as a percent) | 5.41% | 5.41% | 5.41% | |||
Reference rate | 5-year Mid-Swap Rate | |||||
Issuance By Banco Santander S.A. In March 2014 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 1,500 | |||||
Issuance By Banco Santander S.A. In May 2014 [Member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional amount | $ | $ 1,500 | |||||
Interest rate (as a percent) | 6.375% | 6.375% | 6.375% | |||
Initial interest rate term | 5 years | |||||
Adjustment to reference rate, after initial interest rate period | 4.788% | 4.788% | 4.788% | |||
Reference rate, after initial interest rate period | 5-year Mid-Swap Rate | |||||
Reference rate | 5-year Mid-Swap Rate | |||||
Issuance By Banco Santander S.A. In May 2014 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 1,500 | |||||
Issuance By Banco Santander S.A. In September 2014 [Member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional amount | € 1,500 | |||||
Interest rate (as a percent) | 6.25% | 6.25% | 6.25% | |||
Initial interest rate term | 7 years | |||||
Reprice term | 5 years | |||||
Adjustment to reference rate, after initial interest rate period | 5.64% | 5.64% | 5.64% | |||
Reference rate, after initial interest rate period | 5-year Mid-Swap Rate | |||||
Issuance By Banco Santander S.A. In September 2014 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 1,500 | |||||
Issuance by Banco Santander UK in February 2026 [Member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |||
Initial interest rate term | 5 years | |||||
Reprice term | 5 years | |||||
Issuance Number One By Santander Finance Capital S.A. In March 2009 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 18.2 | |||||
Interest rate (as a percent) | 2.00% | 2.00% | 2.00% | |||
Issuance Number Two By Santander Finance Capital S.A. In March 2009 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 25 | |||||
Interest rate (as a percent) | 2.00% | 2.00% | 2.00% | |||
Issuance Number Three By Santander Finance Capital S.A. In March 2009 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 306.9 | |||||
Interest rate (as a percent) | 2.00% | 2.00% | 2.00% | |||
Issuance Number Four By Santander Finance Capital S.A. In March 2009 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 153.4 | |||||
Interest rate (as a percent) | 2.00% | 2.00% | 2.00% | |||
Issuance By Santander Finance Preferred S.A. In March 2004 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 89.3 | |||||
Interest rate (as a percent) | 6.41% | 6.41% | 6.41% | |||
Issuance By Santander Finance Preferred S.A. In September 2004 [Member] | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Notional amount | € 1,500 | |||||
Initial interest rate term | 7 years | |||||
Reprice term | 5 years | |||||
Adjustment to reference rate (as a percent) | 5.64% | 5.64% | 5.64% | |||
Issuance By Santander Finance Preferred S.A. In September 2004 [Member] | CMS 10 Interest rate [Member] | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 144 | |||||
Variable interest rate ( as a percent) | 0.05% | 0.05% | 0.05% | |||
Issuance By Santander Finance Preferred S.A. In September 2004 [Member] | CMS 10 Interest rate [Member] | Maximum | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Adjustment to reference rate (as a percent) | 8.00% | 8.00% | 8.00% | |||
Issuance By Santander Finance Preferred S.A. In October 2004 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 155 | |||||
Interest rate (as a percent) | 5.75% | 5.75% | 5.75% | |||
Issuance By Santander Finance Preferred S.A. In November 2006 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 161.8 | |||||
Interest rate (as a percent) | 6.80% | 6.80% | 6.80% | |||
Issuance By Santander Finance Preferred S.A. In January 2007 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 109.5 | |||||
Interest rate (as a percent) | 6.50% | 6.50% | 6.50% | |||
Issuance By Santander Finance Preferred S.A. In March 2007 [Member] | US 3 M Interest Rate [Member] | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 210.4 | |||||
Variable interest rate ( as a percent) | 0.52% | 0.52% | 0.52% | |||
Issuance By Santander Finance Preferred S.A. In July 2007 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | £ | £ 4.9 | |||||
Interest rate (as a percent) | 7.01% | 7.01% | 7.01% | |||
Issuance Number One By Santander International Preferred S.A. In March 2009 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 979.7 | |||||
Interest rate (as a percent) | 2.00% | 2.00% | 2.00% | |||
Issuance Number Two By Santander International Preferred S.A. In March 2009 [Member] | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 8.6 | |||||
Interest rate (as a percent) | 2.00% | 2.00% | 2.00% | |||
Issuance By Abbey National PLC In February 2001 [Member] | Santander UK plc | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | £ | £ 39.5 | |||||
Interest rate (as a percent) | 7.04% | 7.04% | 7.04% | |||
Issuance By Abbey National PLC In August 2002 [Member] | Santander UK plc | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | £ | £ 1.8 | |||||
Interest rate (as a percent) | 6.984% | 6.984% | 6.984% | |||
Issuance By Abbey National PLC In August 2002 [Member] | Santander UK plc | Libor GBP 6M Interest Rate [Member] | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Adjustment to reference rate, after initial interest rate period | 1.86% | 1.86% | 1.86% | |||
Issuance By Abbey National PLC In June 2015 [Member] | Santander UK plc | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | £ | £ 650 | |||||
Interest rate (as a percent) | 7.38% | 7.38% | 7.38% | |||
Issuance By Banco Santander (Brasil) S.A. In January 2014 [Member] | Banco Santander (Brasil) S.A | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | $ | $ 129.6 | |||||
Interest rate (as a percent) | 7.38% | 7.38% | 7.38% | |||
Issuance by Banco Popular Pastor FRN, June 2004 [Member] | Banco Popular Espanol, S.A. | Fixed interest rate | Preferred Securities | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Outstanding issue amount | € 11.5 | |||||
Interest rate (as a percent) | 2.07% | 2.07% | 2.07% |