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2018 Pillar 3 Disclosures
Investments and equity instruments not included in the trading book
Equity instruments not included in the trading book include participations in the permanent
portfolio (“strategic investments”) which have been held at fair value through changes in other
comprehensive income (formerly “available-for-sale financial assets” portfolio).
Note 2 and Notes 7 and 10 to the Individual Report of the 2018 financial year include a description
of the accounting portfolios into which these equity investments and instruments owned by the
bank are classified, together with the accounting criteria for the registration and measurement
applied to each of them. These notes also indicate the models and assumptions applied for
determination of the value of instruments included in this portfolio.
The permanent portfolio comprises investments in other entities in which it has a greater or
lesser involvement in their administration and decision-making processes, used to achieve aims
aligned with the strategy and objectives of the bank as a whole where there is an intention to
maintain an ongoing shareholding relationship. At 31 December 2018, strategic investments
totalled 11,310 thousand euros.
The following table shows a breakdown of these exposures:
Amount of exposure
Equity instruments listed on organised markets
0
Equity instruments not listed on organised markets
11,310
Total
11,310
Thousands of euros.
Gains, net of the tax impact, without impairment, at 31 December 2018 and associated with
the various investments in equity instruments included in the trading book and those which are
consolidated amounted to 3,083 thousand euros.
The cost of exposures and their underlying capital gains and losses are as follows:
Amount
of exposure
Cost
Underlying
capital losses
Underlying
gains
Equity instruments listed on organised
markets
0
0
0
0
Equity instruments not listed on organised
markets
11,310
6,905
0
4,405
Total
11,310
6,905
0
4,405
Thousands of euros.
The following is a breakdown of exposures based on the issuer’s sector:
Classification by issuer
Credit institutions
0
Other financial companies
11,139
Non-financial companies
171
Total
11,310
Thousands of euros.
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