1.1
CaixaBank, S.A. (hereinafter, CaixaBank - its trade name - or the Entity), is a Spanish public limited company registered in the Commercial Register of Valencia, Volume 10370, Folio 1, Sheet V-178351, and in the Special Administrative Register of the Bank of Spain, under number 2100. The Legal Entity Identifier (LEI) of CaixaBank is 7CUNS533WID6K7DGFI87, and its tax ID (NIF) is A08663619. As of 1 July 2011, CaixaBank's shares are listed in on the securities exchanges of Madrid, Barcelona, Valencia and Bilbao, in their continuous markets. The registered office and tax address of CaixaBank is Calle Pintor Sorolla, 2-4 in Valencia.
The corporate purpose of CaixaBank mainly entails:
CaixaBank and its subsidiaries comprise the CaixaBank Group (hereinafter "the CaixaBank Group" or "the Group”).
CaixaBank is the parent company of the financial conglomerate formed by the Group's entities that are considered to be regulated, recognising CaixaBank as a significant supervised entity, whereby CaixaBank comprises, together with the credit institutions of its Group, a significant supervised group of which CaixaBank is the entity at the highest level of prudential consolidation.
As a listed bank, it is subject to oversight by the European Central Bank and the Spanish national securities market regulator (the Comisión Nacional del Mercado de Valores, CNMV), however, the entities of the Group are subject to oversight by supplementary and industry-based bodies.
Since CaixaBank is a Spanish commercial enterprise structured as a public limited company, it is therefore subject to the revised text of the Spanish Corporate Enterprises Act ("Corporate Enterprises Act"), enacted by Royal Legislative Decree 1/2010 of 2 July and its implementing provisions. Furthermore, given that it is a listed company, it is also governed by the revised text of the Securities Markets Act, approved by Royal Legislative Decree 4/2015, of 23 October, and its implementing provisions.
The Entity's most relevant company milestones during its period of activity are:
12/12/1980
Incorporation of Grupo de Servicios, S.A. for an indefinite period.
Notary public: Eduardo Blat Gimeno - Record number: 2,375
22/12/1983
Amendment of the trade name to GDS-Grupo de Servicios, S.A.
Notary public: Antonio-Carmelo Agustín Torres - Record number: 5,813
01/06/1992
Adjustment of the by-laws to the -then in force- Act on Public Limited Companies.
Notary: Ladislao Narváez Acero - Record number: 1,124
07/2000
Investee portfolio contribution to CaixaHolding, Caixa d’Estalvis i Pensions de Barcelona.
01/06/2000
Merger by adsorption of CaixaHolding, S.A.U., adopting this trade name.
Notary: Tomás Giménez Duart - Record number: 4,011
07/2000
Aportación de la cartera de participadas a CaixaHolding, S.A.U. por parte de Caixa d’Estalvis i Pensions de Barcelona.
10/2007
The process of Initial Public Offering for the admission to trading of the shares on the Spanish securities exchanges is completed.
02/08/2007
Amendment of the trade name to Criteria CaixaCorp, S.A
Notary public: Tomás Giménez Duart - Record number: 3,511
10/2007
Aportación de la cartera de participadas a CaixaHolding, S.A.U. por parte de Caixa d’Estalvis i Pensions de Barcelona.
27/06/11
Reorganisation of the "la Caixa" Group: Criteria CaixaCorp, S.A. receives the "la Caixa" holding in MicroBank to which the assets and liabilities comprising the Group's financial activity had previously been transferred.
Notary: Tomás Giménez Duart - Record number: 2,617
30/06/2011
Merger by adsorption of "la Caixa" MicroBank by Criteria CaixaCorp, S.A. and amendment of the resulting trade name for that of CaixaBank, S.A.
Notary: Tomás Giménez Duart - Record number: 2,685
05/2014
The General Assembly of "la Caixa" approved the transformation into a banking foundation, terminating the indirect exercise of its activity as a credit institution through CaixaBank, S.A.
05/2014
The General Assembly of "la Caixa" approved the transformation into a banking foundation, terminating the indirect exercise of its activity as a credit institution through CaixaBank, S.A.
09/2017
Fulfillment of the conditions imposed by the European Central Bank for the prudential deconsolidation of CaixaBank, which becomes the parent company of the supervisory group.
09/2017
Fulfillment of the conditions imposed by the European Central Bank for the prudential deconsolidation of CaixaBank, which becomes the parent company of the supervisory group.
1.2
The Group’s consolidated financial statements have been prepared by the directors in accordance with the regulatory financial reporting framework applicable to the Group at 31 December 2019, which is set forth in the International Financial Reporting Standards adopted by the European Union (hereinafter, "IFRS-EU"). In preparing these statements, Bank of Spain Circular 4/2017 of 27 November has been taken into account, which constitutes the adaptation of the IFRS-EU to Spanish credit institutions, and subsequent amendments in force at the end of the financial year.
The financial statements, which were prepared from the accounting records of CaixaBank and the Group's companies, are presented in accordance with the regulatory financial reporting framework applicable to them and, in particular, with the accounting principles and rules contained therein and, accordingly, present fairly the Group’s equity, financial position, results of operations and cash flows for the financial year. The accompanying financial statements include certain adjustments and reclassifications required to apply the policies and criteria used by the Group companies on a consistent basis with those of CaixaBank.
The figures are presented in millions of euros unless another monetary unit is stated. Certain financial information in these notes was rounded off and, consequently, the figures shown herein as totals may differ slightly from the arithmetic sum of the individual figures given before them. Similarly, in deciding what information to disclose in this report, its materiality was assessed in relation to the annual financial data.
On 1 January 2019 the Group adopted the following accounting standards:
Standards and interpretations |
Title |
|---|---|
IFRS 16 |
Leases |
Amendment to IFRS 9 |
Prepayment Features with Negative Compensation |
IFRIC 23 interpretation * |
Uncertainty over Income Tax Treatments |
Amendment to IAS 28 * |
Long-term Interests in Associates and Joint Ventures |
Amendment to IAS 19 * |
Plan Amendment, Curtailment or Settlement |
Annual cycle of improvements |
Annual Improvements Project for IFRS 2015-2017 |
(*) They have not had a significant effect on the Group.
This standard establishes the principles applicable to the recognition, assessment and presentation of leases, as well as the disclosures in this regard. Its date of first application is 1 January 2019, when it replaced IAS 17 “Leases” and IFRIC 4 “Determining whether an arrangement contains a lease”, which applied until 31 December 2018. There are relevant differences as regards these standards, namely the accounting treatment given to the lessee, as there are no changes in terms of how these agreements are recognised by the lessor.
The impact of the adoption of this standard on the Group is described in Note 1.4 - “Comparison of information”, after considering the transitory measures for application of the standard.
The IASB amended IFRS 9, whereby any financial assets containing early repayment or termination clauses that could lead to reasonable negative compensation for early contract termination can be measured at amortised cost or fair value through other comprehensive income.
As part of this project, the IASB has amended IAS 12 which affects the tax impacts of the distribution of the profits generated. From 1 January 2019, the tax impacts of the distribution of profits generated are recognized in the line «Tax expense or income related to profit or loss from continuing operations» in the income statement for the year, when they were previously registered in Equity». This basically affects the distribution of discretionary coupons for the issues made. This change has not had a material impact or significant impact on the presentation of the comparative financial statements, so the restatement of them was not necessary.
At the date of authorisation for issue of these consolidated financial statements, following are the main standards and interpretations issued by the IASB but not yet effective, either because their effective date is subsequent to the date of the consolidated financial statements or because they had not yet been endorsed by the European Union:
In the context of the global interest rate benchmark reform (IBORs), the IASB launched a project to review of the main IFRS standards affected, split into in two phases. The first phase focused on the accounting impacts before the replacement of the interest rate benchmarks, and finished with the publication in September 2019 of the Amendments to IAS 39, IFRS 9 and IFRS 7, which were approved at European level on 17 January 2020. It came into effect on 1 January 2020.
These amendments provide exceptions so entities do not have to abandon their hedging ratios in an environment of uncertainty regarding the long-term feasibility of some interest rate benchmarks. These exceptions are based, inter alia, on the ability to assume that the interest rate benchmark on which the hedged risk or the cash flows of the hedged item or of the hedging instrument is based, is not altered as a consequence of the reform.
The Group has decided to early apply the amendments of phase one, although due to the fact that the majority of its hedging ratios are based on the Euribor index and that the latter has not been subject to replacement – rather on 31 December 2019 only its calculation methodology was changed –, the management deems that there is no uncertainty – at the time these consolidated financial statements are being drafted – as to whether it will disappear, which is why the details of information considered in the amendments do not apply.
The standard sets out the requirements an entity must apply when accounting for insurance contracts issued and reinsurance contracts entered into. The currently approved effective date of this standard is 1 January 2021, and it will replace IFRS 4 Insurance Contracts, a temporary standard allowing for the continued use of local accounting practices, whereby insurance contracts are accounted for differently in different jurisdictions.
Through the publication of the Exposure Draft ED/2019/4 of Amendments to IFRS 17 in May 2019, the issuing agency of the IFRS has proposed – among others changes in the standard – a one-year deferral of its first application, with the effective date being established on 1 January 2022 (with a minimum of one-year comparative information). As a result of the ED consultation process, this decision – among other aspects – will be subjected to review in the IASB deliberation process, a view of which is scheduled for the end of the first quarter of 2020 and which will be implemented through the publication of the definitive ED in mid-2020.
As specified in note 2.21 for insurance operations, the Group's insurance companies have made use of the temporary exemption of the application of IFRS 9, thus, this standard is no longer in force for the insurance business by virtue of the application of EU Regulation 2017/1988. This regulation allows for the deferral of IFRS 9 for insurance companies that form part of a financial conglomerate, as stated in article 2, section 14 of Directive 2002/87/EC. This option was adopted by the CaixaBank Group for the financial investments of the Group's insurance companies (VidaCaixa and BPI Vida y Pensiones) from 1 January of 2018, as it fulfilled the conditions laid down by article 2 of the EU Regulation EU 2017/1988.
Implementation of IFRS 17 will standardise the accounting treatment for all insurance contracts, based on a measurement model using calculation assumptions updated at each reporting date (such as the discount rate, mortality and survival tables, and other variables).
Standards and interpretations |
Title |
Mandatory application for annual periods beginning on or after: |
|---|---|---|
Approved for use in the EU * |
||
Amendment to IFRS 3 |
Definition of a business |
1 January 2020 |
Amendment to IAS 39, IFRS 9 and IFRS 7 |
Interest rate benchmark reform |
1 January 2020 |
Amendment to IAS 1 and IAS 8 ** |
Definition of material |
Definition of material |
Not approved for use |
||
IFRS 17 |
Insurance Contracts |
1 January 2021 |
(*) The Group has elected not to early adopt these standards, where possible, with the exception of the amendment to IAS 39, IFRS 9 and IFRS 7.
(**) The Group does not expect any relevant impacts arising from this implementation.
The effects of changes in these assumptions could be recognised in either the income statement or in equity, based on the related nature and on whether the changes are associated with the provision of a service already rendered, or else entail a reclassification between insurance liability components recognised. With particular respect to insurance finance income or expenses as a result of changes in the discount rate, entities may choose to recognise them fully in the income statement or in equity.
For all non-onerous contracts, entities will recognise a contractual service margin over the period in which the entity provides insurance cover under a contract.
The Group launched an internal project at the end of 2017 to adapt to the new regulatory framework for insurance contracts, IFRS 17. The main aim is to take the necessary steps to adopt IFRS 17 in the affected insurance business so as to ensure compliance at the effective date, and assess the potential quantitative and qualitative impacts (e.g. on the business, infrastructure) sufficiently in advance in order to enhance their management.
The goal of the first phase of the project, conducted in the first half of 2018, was:
To draw up an approach to identify the key aspects of the new accounting standard, a diagnosis of different aspects to be analysed and an action plan to guarantee implementation of IFRS 17.
To ensure all quantitative and qualitative requirements are identified and planned to achieve implementation by the effective date.
To guarantee that the impact can be calculated before the effective date.
In the second half of 2018, the second phase of the project began, which was basically focused on the creation of a detailed implementation plan (which includes products, systems, processes, organisation, etc.), the definition of those in charge and the determination of the deadlines. During 2019, major developments have been carried out in the execution of the implementation plan in fields such as the methodological analysis of the standard and modelling of the main insurance products, development of the systems – including integrating the technology solution in which the new calculations required by IFRS 17 will be made, and necessary adjustments to the current systems – and aspects related to the organisation and governance of the project, such as internal training with regard to the standard.
A number of teams have been involved in the project (Accounts, Actuarial, Solvency and Risk Control, Systems, Financial Accounting, Accounting Policies, etc.) who oversee day-to-day management and perform the necessary tasks. As part of the process of defining the project governance model, a Monitoring Committee has also been set up, comprising officers from the aforesaid areas, which controls and oversees the project and has decision-making powers.
The Project Management Committee – headed up by VidaCaixa in coordination with the Executive Financial Accounting, Control and Capital department – is the most senior decision-making and supervisory body for the project. It is responsible for any strategic decisions that need to be made at the highest level, and is the link between the management committees of VidaCaixa and CaixaBank.
1.3
The Entity's consolidated financial statements for 2019 were authorised for issue by the Board of Directors at a meeting held on 20 February 2020. They have not yet been approved by the Annual General Meeting, while it is expected that they will be approved without any changes. The financial statements of the previous year were approved by the Ordinary Annual General Meeting on 5 April 2019.
The preparation of the consolidated financial statements required the Board of Directors to make certain judgments, estimates and assumptions in order quantify certain assets, liabilities, revenues, expenses and obligations shown in them. These judgments and estimates mainly refer to:
These estimates were made on the basis of the best information available at the date of authorisation for issue of the financial statements. However, events may occur that make it necessary for them to be changed in future periods. According to applicable legislation, the effects of these changes would be recognised prospectively in the corresponding statement of profit or loss.
1.4
The 2018 and 2017 figures presented in the accompanying 2019 Financial Statements are given for comparison purposes only. In some cases, in order to facilitate comparability, the comparative information is presented in a summarised way, and the full information is available in the 2018 and 2017 financial statements.
As stated in this note in the "Basis of presentation" section, the Group has applied IFRS 16 from 1 January 2019. Along these lines, it has opted not to reassess whether an agreement is a lease or contains a leasing component in accordance with the standard's criteria, applying it solely for agreements that had been identified as leases according to the previous standard.
For leases in which the Group intervenes as lessee, previously classified as operational leases, the Group has opted to apply the new leasing criteria retroactively through the modified retrospective approach, whereby enabling an estimation of the value of the right of use by referencing the financial liability in operations; generating no adjustment in reserves whatsoever at 1 January 2019. Additionally, the Group has decided to exclude from the scope – in accordance with the simplifications considered in the new regulatory framework on financial information – lease agreements whose underlying asset is not real estate and whose term expires within the twelve months following the initial application date.
The main type of contracts identified for which a right-of-use asset and a lease liability had to be estimated at 1 January 2019 are real estate leases (office buildings) in connection with the operating activity.
For sale transactions with subsequent leasing carried out before 1 January 2019 in which the Group has acted as a seller-lessee, the subsequent lease has been recorded as any other existing operational lease at 1 January 2019.
The breakdowns, at 31 December 2018 and 2017, of balance sheet items referring to lease agreements in this report have not been restated, which is why it cannot be compared with the information referring to 31 December 2019.
The reconciliation between operational lease commitments at 31 December 2018 and the lease liabilities recorded on 1 January 2019 in application of IFRS 16 is as follows:
|
|
|---|---|
Commitments for operational leases at 31 Dicember 2018 |
1.890 |
Different processing of the lease term |
(308) |
Separation of non-leasing components |
(66) |
Other adjustments (includes the financial discount on future payments) |
(108) |
Lease liabilities at 1 January 2019 |
1,409 |
Discount rate applied (according to the term) * |
|
Spain |
[0.10%-1.66%] |
Portugal |
[0.20%-0.90%] |
(*) The difference in the discount rate applied for businesses in Spain and Portugal is mainly due to the term of the lease agreements in each of them.
The restatement of balances formulated in the financial statements of the years ended 31 December 2016, 2017 and 2018 are set out below, as a result of the amendments that are specified below:
Balance at 31-12-2016 |
Amendment to treatment of assets help by the employee PF |
Amendment to recording of actuarial gains and losses |
Balance at 31-12-2016 restated |
|
|---|---|---|---|---|
Tax assets |
10,521 |
(40) |
10,481 |
|
Deferred tax assetss |
9,643 |
(40) |
9,603 |
|
Total assets |
347,927 |
(40) |
347,887 |
|
Liabilities under insurance contracts |
45,804 |
1,142 |
46,946 |
|
Provisions |
4,730 |
(1,492) |
3,238 |
|
Pensions and other post-employment defined benefit obligations |
2,029 |
(1,492) |
537 |
|
Tax liabilities |
1,186 |
65 |
1,251 |
|
Deferred tax liabilities |
1,186 |
65 |
1,251 |
|
Total liabilities |
324,372 |
(285) |
0 |
324,087 |
Shareholders' equity |
23,400 |
- |
453 |
23,853 |
Retained earnings |
5,239 |
220 |
5,459 |
|
Other reserves |
(717) |
233 |
(484) |
|
Accumulated other comprehensive income |
127 |
245 |
(453) |
(81) |
Items that may be reclassified to profit or loss |
127 |
245 |
(453) |
(81) |
Total equity |
23,555 |
245 |
0 |
23,800 |
Balance at 31-12-2017 |
Amendment to treatment of assets held by the employee PF |
Amendment to recording of acturial gains and losses |
Balance at 31-12-2017 restated |
1ª application IFRS 9 (appendix 7) |
Balance at 01-01-2018 |
|
|---|---|---|---|---|---|---|
Tax assets |
11,055 |
(50) |
11,005 |
243 |
11,248 |
|
Deferred tax assets |
10,255 |
(50) |
10,205 |
243 |
10,448 |
|
Total assets |
383,186 |
(50) |
383,136 |
(548) |
382,588 |
|
Liabilities under the insurance business |
49,750 |
1,248 |
50,998 |
8,241 |
59,239 |
|
Provisions |
5,001 |
(1,510) |
3,491 |
8 |
3,499 |
|
Pensions and other post-employment defined benefit obligations |
2,108 |
(1,510) |
598 |
598 |
||
Tax liabilities |
1,388 |
29 |
1,417 |
1,417 |
||
Deferred tax liabilities |
1,194 |
29 |
1,223 |
1,223 |
||
Total liabilities |
358,503 |
(233) |
0 |
358,270 |
8 |
358,278 |
Shareholders' equity |
24,204 |
- |
518 |
24,722 |
(539) |
24,183 |
Retained earnings |
5,554 |
484 |
6,038 |
6,038 |
||
Other reserves |
(628) |
34 |
(594) |
(539) |
(1,133) |
|
Accumulated other comprehensive income |
45 |
183 |
(518) |
(290) |
(23) |
(313) |
Items that will not be reclassified to profit or loss |
116 |
(518) |
(402) |
(447) |
(849) |
|
Items that may be reclassified to profit or loss |
45 |
67 |
112 |
424 |
536 |
|
Total equity |
24,683 |
183 |
0 |
24,866 |
(556) |
24,310 |
Balance at 31-12-2018 |
Amendment to trearment of assets held by the employee PF |
Amendment to recording of actuarial gains and losses |
Balance at 31-12-2018 restated |
|
|---|---|---|---|---|
Tax assets |
11,340 |
(76) |
11,264 |
|
Deferred tax assets |
10,117 |
(76) |
10,041 |
|
Total assets |
386,622 |
(76) |
386,546 |
|
Liabilities under the insurance business |
60,452 |
1,067 |
61,519 |
|
Provisions |
4,610 |
(1,531) |
3,079 |
|
Pensions and other post-employment defined benefit obligations |
1,989 |
(1,531) |
458 |
|
Tax liabilities |
1,269 |
82 |
1,351 |
|
Deferred tax liabilities |
1,033 |
82 |
1,115 |
|
Total liabilities |
362,564 |
(382) |
0 |
362,182 |
Shareholders' equity |
24,836 |
548 |
25,384 |
|
Retained earnings |
6,786 |
514 |
7,300 |
|
Other reserves |
(1.539) |
34 |
(1,505) |
|
Accumulated other comprehensive income |
(807) |
306 |
(548) |
(1,049) |
Items that will not be reclassified to profit or loss |
(904) |
116 |
(548) |
(1,336) |
Items that may be reclassified to profit or loss |
97 |
190 |
287 |
|
Total equity |
24,058 |
306 |
0 |
24,364 |
Below follow the balances of the balance sheet headings at 31 December 2019 affected by the amendment of the aforementioned accounting policies, in the event that the same had not been carried out:
Balance at 31-12-2019 |
Amendment to treatment of assets held by the employee PF |
Amendment to recording of actuarial gans and losses |
Balance at 31-12-2019 Proforma |
|
|---|---|---|---|---|
Tax assets |
11,113 |
94 |
11,207 |
|
Deferred tax assets |
9,836 |
94 |
9,930 |
|
Total assets |
391,414 |
94 |
391,508 |
|
Liabilities under the insurance business |
70,807 |
(1,196) |
69,611 |
|
Provisions |
3,624 |
1,617 |
5,241 |
|
Pensions and other post-employment defined benefit obligations |
521 |
1,617 |
2,138 |
|
Tax liabilities |
1,296 |
(42) |
1,254 |
|
Deferred tax liabilities |
1,058 |
(42) |
1,016 |
|
Total liabilities |
366,263 |
379 |
366,642 |
|
Shareholders' equity |
26,247 |
(718) |
25,529 |
|
Retained earnings |
7,795 |
(664) |
7,131 |
|
Other reserves |
(1,281) |
(54) |
(1,335) |
|
Accumulated other comprehensive income |
(1,125) |
(285) |
718 |
(692) |
Items that will not be reclassified to profit or loss |
(1,568) |
(190) |
718 |
(1,040) |
Items that may be reclassified to profit or loss |
443 |
(95) |
348 |
|
Total equity |
25,151 |
(285) |
24,866 |
|
In accordance with IAS 19, the assets of a plan that are eligible to be presented net of obligations arising out of defined benefit commitments include the assets held by an employee long-term benefit fund.
CaixaBank's defined benefit commitments have been arranged through the employees Pension Fund, which according to IAS 24 is a related party of the Group. To date, the Group did not apply the exception established in IAS 19 to consider assets held by a pension fund for employees as an eligible plan asset. For this purpose, the fund's assets can include insurance policies in which the fund acts as a policyholder and beneficiary.
At 31 December 2019 the Group has voluntarily decided to change its accounting policy with regard to the treatment of assets held by the employee Pension Fund, thus deeming them eligible plan assets, and as a result the rights of the same on the underwritten policies are considered.
The aforementioned change in accounting policy has been carried out retroactively at the start of the oldest comparison period presented, and conceptually it has involved the following:
CaixaBank's management deems the aforementioned change to offer more representative information with regard to the Group's financial situation and the way in which defined benefit guarantees are arranged. Specifically, and considering the current interest rate context, the cost in equity and volatility of the previous accounting policy applied to date merely reflected the cost of the opportunity of failing to hedge these commitments at the time of outsourcing. In other words, the greater financial disbursement that the insurer had to make in order to guarantee the payment of the defined benefit commitments using the public debt portfolio.
In order to improve the accurate picture of the Group's financial statements, during 2019, the accounting recognition criterion of the actuarial gains and losses has been amended, whereby the new presentation more suitably reflects the impacts on equity deriving from the measurement of the assets and liabilities linked to the Group's pension commitments. Following on from this, the actuarial losses and gains previously recognised at each closing date under the heading “Shareholders' equity - Retained earnings” are now shown under the heading “Accumulated Other Comprehensive Income – Items that will not be reclassified to profit or loss - Actuarial gains or losses on defined benefit pension plans”.
The Group applied IFRS 9 for the first time on 1 January 2018. This led to changes to the classification and measurement modifications of certain items on the balance sheet at 31 December 2017. The impacts of the first application are specified in Appendix 7.
1.5
The nature of the most significant operations carried out by the Group do not have a relevant cyclical or seasonal nature within a single financial year.
1.6
At year-end, the Group held no direct ownership interest equal to or greater than 5% of the capital or voting rights in any credit institution other than the investments and subsidiaries and associates listed in Appendices 1 and 3.
1.7
In this year, the Entity complied with the minimum reserve ratio required by applicable regulations.
1.8
Agreement of sale to Lone Star
On 8 June 2018, CaixaBank reached an agreement with the company SH Findel, S.À.R.L. (subsidiary company of TPG Sixth Street Partners) to repurchase 51% of the share capital of Servihabitat at a price of EUR 176.5 million. After this purchase, which obtained the necessary authorisations and which was closed on 13 July 2018, the Group now holds 100% of the share capital of Servihabitat.
As a result of the combination of businesses, Servihabitat is now consolidated through the method of global integration, for accounting purposes, from 1 July 2018. The impact on equity and profit of the difference between the acquisition date and the date that control was effectively obtained (13 July 2018) was not significant. This operation involved the emergence of the following impacts on the Group's income statement:
a
A review of the carrying amount of the prior stake in Servihabitat (49%) by virtue of the update of the valuation of this share, consistent with the sale offer accepted by the Group with regard to the operation announced on 28 June 2018 and described in the following section. It resulted in the recording of a EUR 52 million loss under the heading "Impairment/(reversal) of impairment on investments in joint ventures and associates" of the accompanying consolidated income statement.b
The recognition of a loss amounting to EUR 152 million under the heading "Provisions or reversal of provisions" in the accompanying consolidated income statement, corresponding to the difference between the transaction price (EUR 176.5 million) and the fair value of the share purchased in 51% of Servihabitat, estimated in the context of the sale of this share to Lone Star.Similarly, the result generated by this stake as a consequence of its business combination in July 2018 until sold, after the implementation of the transaction described in the following section, was classified under "Profit/(loss) after tax from discontinued operations" in the consolidated income statement.
On 28 June 2018, CaixaBank arranged to sell 80% of its real estate portfolio to a company owned by Lone Star Fund X and Lone Star Real Estate Fund V. This transaction mainly includes the portfolio of real estate assets available for sale on 31 October 2017, as well as 100% of the share capital of Servihabitat. The gross value of the real estate assets at 31 October 2017 used for the sale was approximately EUR 12,800 million, the net carrying amount of which was approximately EUR 6,700 million.
The Group transferred the aforementioned portfolio, together with 100% of Servihabitat, to a new company (Coral Homes, S.L.), 80% of which was subsequently sold to Lone Star, retaining a 20% stake through BuildingCenter. The overall impact of the sale operation on the consolidated statement of profit or loss (including, expenses, taxes and other costs) was EUR -48 million after tax and +15 basis points in the fully-loaded CET1 ratio at 31 December 2018.
The sale agreed with Lone Star comprised a representations and warranties clause as regards the ownership of the transferred assets which, under certain circumstances, may be subject to claims brought against the Group until June 2020.
At 31 December 2019 and 2018, the Group did not deem there to be a material impact on equity as a result of the existence of these clauses.
1.9
The operations – in addition to those stated in the rest of the notes – that have taken place between the close and the formulation thereof are set out below.
On 17 January 2020, CaixaBank issued preferred senior debt for the amount of EUR 1,000 million over 5 years with an annual return of 0.43%, equivalent to midswap + 58 basis points.
