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2018 Pillar 3 Disclosures
Credit and dilution risks
The changes during the 2018 financial year in coverage of losses from credit risk due to insolvency
comply with the terms of Regulation (EU) No. 575/2013, both in the type of coverage and the
methodology applied to the calculation thereof (see Annex II).
The detail of the changes in non-performing assets in 2018 is as follows:
Coverage of non-performing assets
Balance at 31 December 2017
84,225
Provisions charged to income statement
101
Recovery credited to results
- 74
Amounts applied during the financial year
- 54,743
Impact of application of IFRS 9 (*)
- 29,247
Balance at 31 December 2018
262
Thousands of euros.
* Mainly includes the impact of transfers between portfolios made with the first application of IFRS 9 that have resulted in the
reclassification of non-performing assets to the portfolio of financial assets not held for trading at fair value through profit or
loss, and to the portfolio of financial assets at amortised cost under special monitoring.
The amount of coverage for non-performing assets has been reduced considerably compared to
December 2017, mainly due to applying the fund a matured non-performing position (-54,743
thousand euros). Funds have also been released as a result of transfers from the non-performing
portfolio to the mandatory trading book and to the credit banking book under special
monitoring (-29,247 thousand euros).
With regard to coverage of standard risk and that under special monitoring, the summary of
changes in 2018 is shown in the following table:
Coverage of standard risk and that under special monitoring
Balance at 31 December 2017
1,637
Provisions charged to income statement
960
Recovery credited to results
- 1,621
Effect of the differences in foreign currency exchange
- 13
Impact of application of IFRS 9 (*)
2,027
Balance at 31 December 2018
2,990
Thousands of euros.
* Mainly includes the impact of transfers between portfolios made with the first application of IFRS 9 that have resulted in the
reclassification of non-performing assets to the portfolio of financial assets at amortised cost under special monitoring, and
the adjustments due to impairment losses and provisions associated with the first application of Circular 4/2017.
Changes during the 2018
financial year in losses credit risk
impairment and provisions for
risks and contingent commitments
for credit risk
4 | 4.7