Financial assets at amortised cost

The breakdown of this heading is as follows:

• 14.1

  Debt securities

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

  Breakdown of debt securities (Millions of euros)
  	31-12-2019	31-12-2018	31-12-2017 (*)
  Spanish government debt securities	12,699	13,947	141
  Other Spanish issuers	1,246	1,270	862
  Other foreign issuers	3,444	1,843	1,573
  Total	17,389	17,060	2,576

  (*) Corresponds to the balances of "Loans and receivables - Debt securities".

  The breakdown of changes in the gross carrying amount (amount on balance sheet without considering allowances for impairment of assets) of debt securities at amortised cost is as follows:

  Changes in debt securities - 2019 (Millions of euros)
  	To Stage 1:	To Stage 2:	To Stage 3:	Total
  Opening balance	17,035	16	13	17,064
  Transfers		(1)	1	0
  From stage 2		(1)	1
  New financial assets	1.296			1.296
  Financial asset disposals (other than write-offs)	(875)	(9)		(884)
  Changes in interest accrual	(81)			(81)
  Closing balalnce	17,375	6	14	17,395
  Impairment allowances *	(2)		(4)	(6)

  (*) There were no significant changes in the period.

  Changes in debt securities - 2018 (Millions of euros)
  	To Stage 1:	To Stage 2:	To Stage 3:	Total
  Opening balance	2,616		13	2,629
  1st application IFRS 9 (Note 1)	10,172	9		10,181
  Adjusted balance at start of the year	12,788	9	13	12,810
  New financial assets	6,195	8	0	6,203
  Financial asset disposals (other than write-offs)	(1,840)	(9)	(13)	(1,862)
  Changes in contractual cash flows	0	8	13	21
  Changes in interest accrual	(108)	0	0	(108)
  Closing balance	17,035	16	13	17,064
  Impairment allowances *	(1)	0	(3)	(4)

  (*) The 1st application of IFRS 9, entailed a movement to release EUR 31 million on 1 January 2018.

• 14.2

  Loans and advances

• Loans and advances – Credit institutions

  The breakdown of the gross balances of this heading is as follows:

  Breakdown of loans and advances to credit institutions by type (Millions of euros)
  	31-12-2019	31-12-2018	31-12-2017
  Demand	3,581	6,154	5,099
  Other accounts	3,581	6,154	5,099
  Term	1,560	1,392	2,270
  Deposits with agreed maturity	1,560	1,392	2,270
  Reverse repurchase agreement			961
  Assets in stage 3 (non-performing assets in 2017)		12	12
  Total	5,141	7,546	7,369

  Loans and advances - Loans and advances to customers

  The breakdown of changes in the gross carrying amount (amount on balance sheet without considering allowances for impairment of assets) of loans and advances to customers is as follows:

  Changes in loans and advances to customers - 2019 (Millions of euros)
  	To Stage 1:	To Stage 2:	To Stage 3:	Total
  Opening balance	196,634	16,328	10,718	223,680
  Transfers	(1,643)	745	898	0
  From stage 1:	(4,555)	4,044	511	0
  From stage 2:	2,873	(3,855)	982	0
  From stage 3:	39	556	(595)	0
  New financial assets	48,829	1,386	502	50,717
  Financial asset disposals (other than write-offs)	(40,896)	(2,918)	(1,627)	(45,441)
  Write-offs			(2,104)	(2,104)
  Closing balance	202,924	15,541	8,387	226,852

  Changes in loans and advances to customers - 2018 (Millions of euros)
  	To Stage 1:	To Stage 2:	To Stage 3:	Total
  Opening balance	209,337	0	13,797	223,134
  1st application IFRS 9 (Note 1)	(16,113)	15,664	(16)	(465)
  Adjusted balance at start of the year	193,224	15,664	13,781	222,669
  Transfers	(2,254)	1,794	460	0
  From stage 1	(4,718)	4,150	568	0
  From stage 2	2,437	(3,211)	774	0
  From stage 3	27	855	(882)	0
  New financial assets	45,675	1,795	871	48,341
  Financial asset disposals (other than write-offs)	(40,011)	(2,925)	(3,015)	(45,951)
  Write-offs	0	0	(1,379)	(1,379)
  Closing balance	196,634	16,328	10,718	223,680

  The movement of hedges of "Financial assets at amortised cost – Loans and advances to customers" is as follows:

  Changes in impairment allowances of loans and advances to customers - 2019 (Millions of euros)
  	To Stage 1:	To Stage 2:	To Stage 3:	Total
  Opening balance	695	741	4,277	5,713
  Net allowances	21	(13)	400	408
  From stage 1:	(116)	32	219	135
  From stage 2:	(19)	(105)	142	18
  From stage 3:	(8)	(21)	(125)	(154)
  New financial assets	183	112	344	639
  Disposals	(19)	(31)	(180)	(230)
  Amounts used			(1,308)	(1,308)
  Transfers and other	(142)	(20)	47	(115)
  Closing balance	574	708	3,416	4,698

  Changes in impairment allowances of loans and advances to customers - 2018 (Millions of euros)
  	To Stage 1:	To Stage 2:	To Stage 3:	Total
  Opening balance	1,412	-	5,404	6,816
  1st application IFRS 9 (Note 1)	(440)	589	614	763
  Adjusted balance at start of the year	972	589	6,018	7,579
  Net allowances	(203)	(204)	475	68
  From stage 1:	52	23	180	255
  From stage 2:	(10)	(60)	(38)	(108)
  From stage 3:	(4)	(27)	55	24
  New financial assets	134	77	415	626
  Disposals	(375)	(217)	(137)	(729)
  Amounts used			(1,777)	(1,777)
  Transfers and other	(74)	356	(439)	(157)
  Closing balance	695	741	4,277	5,713

  Changes in impairment allowances of loans and advances to customers - 2017 (Millions of euros)
  	Balance at 31-12-2016	Additions due to business combinations	Net allowances	Amounts-used	Transfers and other	Balance at 31-12-2017
  Credit risk allowance of the borrower	6,679	1,088	554	(971)	(544)	6,806
  Loans and advances	6,679	1,088	554	(971)	(544)	6,806
  Credit institutions	0	0	4	0	(4)	0
  Public sector	4	0	62	0	11	77
  Other sectors	6,675	1,088	488	(971)	(551)	6,729
  Country risk allowance	10	0	0	0	0	10
  Loans and advances to customers	10	0	0	0	0	10
  Total	6,689	1,088	554	(971)	(544)	6,816