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2018 Pillar 3 Disclosures
Capital
Annex IV includes a conciliation of the own fund items with the audited financial statements.
Tier 2 Capital
Tier 2 capital is understood as the factors defined in Part Two, Title I, Chapter 4 of Regulation
(EU) No. 575/2013, with the limits and deductions established in this chapter. These own funds,
although they comply with the definition of equity established in the regulations in force, are
characterised by having, in principle, greater volatility and a lower degree of permanence than
those elements classified as Tier 1 capital.
At 31 December 2018, the bank holds no Tier 2 capital. In previous years, the bank’s Tier 2
capital comprised the book value of the general allowance for customer insolvency risk. The
new IFRS 9 provides a new nature to this provision, excluding it from the elements forming part
of Tier 2 capital.
3.1.2
3 | 3.1
Item
Amount 2018 Amount 2017
Tier 1 Capital
791,312
724,332
Common Equity Tier 1 capital
791,312
724,332
Equity instruments eligible as Common Equity Tier 1 capital
727,750
727,750
Paid-up equity instruments
112,257
112,257
Share premium
615,493
615,493
Retained earnings
1
266,567
211,654
Retained earnings from previous years
266,567
211,654
Eligible profit
0
0
Accumulated other comprehensive income
9,768
45,058
Other reserves (IFRS9)
5,591
Common Equity Tier 1 capital reductions due to prudential filters
- 4,774
- 4,400
Other intangible assets (-)
- 205,402
- 228,864
Pension fund assets with defined benefits
- 8,188
- 7,506
Surplus of the elements deduced from additional Tier 1 capital with regard to additional
Tier 1 capital (-)
0
- 45,812
Other transitional adjustments of the Common Equity Tier 1 capital (-)
0
26,452
Thousands of euros.
1
This heading would have been increased by €42.5 million, if the results of 2018 that the Board of Directors decided to allocate to reserves had been included.