Financial assets at fair value with changes in other comprehensive income

The breakdown of this heading is as follows:

• 13.1

  Equity instruments

• The breakdown of the changes under this heading is as follows:

  Changes in equity instruments - 2019 (Millions of euros)
  	31-12-2018	Acquisitions and capital increases	Disposals and capital decreases	Gains(-) /losses (+) transferred to reserves	Adjustments to market value and exchange differences	Transfers and other	31-12-2019
  Telefónica (Note 15)	1,905				(288)		1,617
  Repsol (Note 16)	786		(943)	106	51		0
  Banco Fomento de Angola (Note 16)	522				(108)		414
  Other	352	2	(12)	(7)	35	6	376
  Total	3,565	2	(955)	99	(310)	6	2,407

  Changes in equity instruments - 2018 (Millions of euros)
  	31-12-2017	1st application of IFRS 9 (Note 1)	01-01-2018	Acquisitions and capital increases	Disposals and capital decreases	Gains (-) /losses (+) transferred to reserves	Adjustments to market value and exchange differences	Transfers and other	31-12-2018
  Telefónica	2,109		2,109				(204)		1,905
  Repsol (Note 16)					(337)	4	(161)	1,280	786
  Banco Fomento de Angola (Note 16)								522	522
  Others	774	(243)	531	11	(70)	(30)	(97)	7	352
  Total	2,883	(243)	2,640	11	(407)	(26)	(462)	1,287	3,565

  Changes in equity instruments - 2017 (Millions of euros)
  	31-12-2016	Additions due to business combinations (Note 7)	Acquisitions and capital increases	Disposals and capital decreases	Amounts transferred to profit or loss	Adjustments to market value and exchange differences	Transfers an other	Impairment losses *	31-12-2017
  Telefónica	2,288	0	1	0	0	(180)	0	0	2,109
  Others	658	254	7	(61)	(4)	49	11	(140)	774
  Total	2,946	254	8	(61)	(4)	(131)	11	(140)	2,883

  (*) This impairment primarily included EUR 128 million from Sociedad de Gestión de Activos procedentes de la Restructuración Bancaria, SA (Sareb) and was part of the EUR 154 million write down recognised during the period for all exposures, including subordinated debt recognised under “Loans and receivables”.

  The estimate of the recoverable value of BFA is based on a dividend discount model (DDM), subsequently compared to comparison multiple methodologies. The main assumptions used in the dividend discount model are set out below:

  Assumptions used (Percentage)
  	BFA
  	31-12-2019	31-12-2018
  Forecast periods	5 years	5 years
  Discount rate (1)	20.6%	23.3%
  Objective capital ratio	15%	15%

  (1) Calculated on the yield for the Angolan 10-year bond, plus a risk premium.

  For the stake in BFA, the exercise to determine the fair value considers the sensitivity with respect to the objective capital ratio [-1.0%; +1.0%] and the discount rate [-1.0%; +1.0%] with no significant variations concluded in the estimated fair value in the baseline scenario.

  The relevant financial information of the most relevant equity instruments classified in this section is as follows:

  Financial information on key investments (Millions of euros)
  Corporate name	Registered address	% Ownership	% Voting rights	Equity	Lastest published profit/(loss)
  Telefónica (1)	Madrid - Spain	5.00%	5.00%	25,235	1,344
  Sociedad de gestión de Activos Procedentes de la Reestructuración Bancaria (Sareb) (2)	Madrid - Spain	12.24%	12.24%	(5,135)	(878)
  Caser (2)(3)	Madrid - Spain	11.51%	11.51%	1,189	87
  Banco de Fomento Angola	Angola	48.10%	48.10%	1,025	596

  (1) Listed company. The information on equity and the last published profit/(loss) is at 30-09-2019.

  (2) Non-listed companies. The information on equity and the last published profit/(loss) is at 31-12-2018.

  (3) On 23 January 2020, the CaixaBank Group reached an agreement to sell its direct and indirect holding of 11.51% of Caser for an estimated price of EUR 128 million. There will be no material impact on equity for the Group from this operation.

• 13.2

  Debt securities

• The breakdown of the changes under this heading is as follows:

  Changes in debt securities - 2019 (Millions of euros)
  	From Stage 1:	From Stage 2:	From Stage 3:	Total
  Opening balance	18,323			18,323
  Plus:
  Additions due to business combinations				0
  Acquisitions	10,579			10,579
  Interest	0			0
  Gains/(losses) recognised with adjustments to equity (Note 24.2)	225			225
  Less:
  Sales and redemptions	(12,816)			(12,816)
  Implicit interest accrued	(184)			(184)
  Amounts transferred to statement of profit or loss (Note 32) *	(163)			(163)
  Closing balance	15,964	0	0	15,964

  (*) In 2019 there have been fixed income portfolio sales with a nominal amount of EUR 7,036 million and a profit of EUR 171 million, including the profit due to the cancellation of associated hedges.

  Changes in debt securities - 2018 (Millions of euros)
  	From Stage 1:	From Stage 2:	From Stage 3:	Total
  Balance at the start of the year - Available-for-sale financial assets	66,672			66,672
  1st application IFRS 9 (Note 1)	(49,454)			(49,454)
  Adjusted balance at start of the year	17,218			17,218
  Plus:				0
  Additions due to business combinations				0
  Acquisitions	9,234			9,234
  Interest	51			51
  Gains/(losses) recognised with adjustments to equity (Note 24.2)	(194)			(194)
  Less:				0
  Sales and redemptions (*)	(7,938)			(7,938)
  Amounts transferred to the statement of profit or loss (Note 32)	(48)			(48)
  Closing balance	18,323			18,323

  (*) In 2018 there were fixed income portfolio sales with a nominal amount of EUR 4,540 million and a profit of EUR 126 million, including the profit due to the cancellation of associated hedges.

  Changes in debt securities - 2017 (Millions of euros)
  Balance at the start of the year - Available-for-sale financial assets	62,131
  Plus:
  Additions due to business combinations (Note 7)	3,582
  Acquisitions	34,085
  Gains/(losses) recognised with adjustments to equity (Note 24.2)	126
  Less:
  Sales and redemptions	(33,093)
  Amounts transferred to the statement of profit or loss (Note 32)	(73)
  Closing balance	66,672