CaixaBank

Consolidates balance sheet assets (Millions of euros)

			NOTE	31/12/2020	31/12/2019 *	31/12/2018 *
Cash and cash balances at central banks and other demand deposits			10	51,611	15,110	19,158
Financial assets held for trading			11	6,357	7,370	9,810
	Derivatives			5,301	6,194	8,707
	Equity instruments			255	457	348
	Debt securities			801	719	755
Financial assets not designated for trading compulsorily measured at fair value through profit or loss			12	317	427	704
	Equity instruments			180	198	232
	Debt securities			52	63	145
	Loans and advances			85	166	327
		Customers		85	166	327
Financial assets designated at fair value through profit or loss					1
	Debt securities				1
Financial assets at fair value with changes in other comprehensive income			13	19,309	18,371	21,888
	Equity instruments			1,414	2,407	3,565
	Debt securities			17,895	15,964	18,323
Financial assets at amortised cost			14	267,509	244,702	242,582
	Debt securities			24,670	17,389	17,060
	Loans and advances			242,839	227,313	225,522
		Central banks		4	6	5
		Credit institutions		5,847	5,153	7,550
		Customers		236,988	222,154	217,967
Derivatives - Hedge accounting			15	515	2,133	2,056
Fair value changes of the hedged items in portfolio hedge of interest rate risk			15	269	106	232
Investments in joint ventures and associates			16	3,443	3,941	3,879
	Joint ventures			42	166	168
	Associates			3,401	3,775	3,711
Assets under the insurance business			17	77,241	72,683	61,688
Tangible assets			18	6,957	7,282	6,022
	Property, plant and equipment			4,950	4,915	3,210
		For own use		4,950	4,915	3,210
	Investment property			2,007	2,367	2,812
Intangible assets			19	3,949	3,839	3,848
	Goodwill			3,051	3,051	3,051
	Other intangible assets			898	788	797
Tax assets				10,626	11,113	11,264
	Current tax assets			832	1,277	1,223
	Deferred tax assets		25	9,794	9,836	10,041
Other assets			20	2,219	2,982	2,176
	Inventories			75	54	57
	Remaining other assets			2,144	2,928	2,119
Non-current assets and disposal groups classified as held for sale			21	1,198	1,354	1,239
TOTAL ASSETS				451,520	391,414	386,546
Memorandum items
Loan commitments given			26	78,499	71,132	63,953
Financial guarantees given			26	6,360	5,982	5,735
Other commitments given			26	20,207	21,226	19,339
Financial instruments loaned or delivered as collateral with the right of sale or pledge
	Financial assets held for trading			789	165	469
	Financial assets at fair value with changes in other comprehensive income			9,167	2,544	2,801
	Financial assets at amortised cost			98,657	93,053	97,767
Tangible assets acquired under a lease			18	1,447	1,495

(*) Presented for comparison purposes only (see Note 1)

Consolidated balance sheet liabilities (Millions of euros)

		NOTE	31/12/2020	31/12/2019 *	31/12/2018 *
Financial liabilities held for trading		11	424	2,338	9,015
	Derivatives		151	1,867	8,616
	Short positions		273	471	399
Financial liabilities designated at fair value through profit or loss				1
	Other financial liabilities			1
Financial liabilities at amortised cost		22	342,403	283,975	282,460
	Deposits		300,523	241,735	247,640
	Central banks		50,090	14,418	29,406
	Credit institutions		5,266	6,238	8,034
	Customers		245,167	221,079	210,200
	Debt securities issued		35,813	33,648	29,244
	Other financial liabilities		6,067	8,592	5,576
Derivatives - Hedge accounting		15	237	515	793
Fair value changes of the hedged items in portfolio hedge of interest rate risk		15	1,614	1,474	1,244
Liabilities under the insurance business		17	75,129	70,807	61,519
Provisions		23	3,195	3,624	3,079
	Pensions and other post-employment defined benefit obligations		580	521	458
	Other long-term employee benefits		1,398	1,710	1,072
	Pending legal issues and tax litigation		556	676	714
	Commitments and guarantees given		193	220	355
	Other provisions		468	497	480
Tax liabilities			1,231	1,296	1,351
	Current tax liabilities		222	238	236
	Deferred tax liabilities	25	1,009	1,058	1,115
Other liabilities		20	1,995	2,162	2,639
Liabilities included in disposal groups classified as held for sale			14	71	82
TOTAL LIABILITIES			426,242	366,263	362,182
Memorandum items
Subordinated liabilities
	Financial liabilities at amortised cost	22	6,222	5,461	5,456

(*) Presented for comparison purposes only (see Note 1)

Equity (Millions of euros)

			NOTE	31/12/2020	31/12/2019 *	31/12/2018 *
SHAREHOLDERS' EQUITY			24	27,118	26,247	25,384
Capital				5,981	5,981	5,981
Share premium				12,033	12,033	12,033
Other equity items				25	24	19
Retained earnings				8,719	7,795	7,300
Other reserves				(1,009)	(1,281)	(1,505)
(-) Treasury shares				(12)	(10)	(10)
Profit/(loss) attributable to owners of the Parent				1,381	1,705	1,985
(-) Interim dividends			6			(419)
ACCUMULATED OTHER COMPREHENSIVE INCOME			24	(1,865)	(1,125)	(1,049)
Items that will not be reclassified to profit or loss				(2,383)	(1,568)	(1,336)
	Actuarial gains or (-) losses on defined benefit pension plans			(580)	(474)	(396)
	Share of other recognised income and expense of investments in joint ventures and associates			(70)	(83)	(75)
	Fair value changes of equity instruments measured at fair value with changes in other comprehensive income			(1,733)	(1,011)	(865)
	Failed fair value hedges of equity instruments measured at fair value with changes in other comprehensive income				0
		Fair value changes of equity instruments measured at fair value with changes other comprehensive income [hedged instrument]			(58)
		Fair value changes of equity instruments measured at fair value with changes in other comprehensive income [hedging instrument]			58
Items that may be reclassified to profit or loss				518	443	287
	Foreign currency exchange			(24)	4	2
	Hedging derivatives. Reserve of cash flow hedges [effective portion]			73	(34)	22
	Fair value changes of debt securities measured at fair value with changes in other comprehensive income			521	486	317
	Share of other recognised income and expense of investments in joint ventures and associates			(52)	(13)	(54)
MINORITY INTERESTS (non-controlling interests)			24	25	29	29
Other items				25	29	29
TOTAL EQUITY				25,278	25,151	24,364
TOTAL LIABILITIES AND EQUITY				451,520	391,414	386,546

(*) Presented for comparison purposes only (see Note 1)

Consolidated statement of profit or loss (Millions of euros)

		NOTE	31/12/2020		31/12/2019 *	31/12/2018 *
Interest income		28	6,764		7,055	6,946
	Financial assets at fair value with changes in other comprehensive income (1)		1,812		1,966	1,856
	Financial assets at amortised cost (2)		4,700		4,972	4,902
	Other interest income		252		117	188
Interest expense		29	(1,864)		(2,104)	(2,039)
NET INTEREST INCOME			4,900		4,951	4,907
Dividend income		30	147		163	146
Share of profit/(loss) of entities accounted for using the equity method		16	307		425	826
Fee and commission income		31	2,911		2,940	2,898
Fee and commission expenses		31	(335)		(342)	(315)
Gains/(losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net		32	187		240	126
	Financial assets at amortised cost		114		2	(25)
	Other financial assets and liabilities		73		238	151
Gains/(losses) on financial assets and liabilities held for trading, net		32	127		139	40
	Other gains or losses		127		139	40
Gains/(losses) on financial assets not designated for trading compulsorily measured at fair value through profit or loss, net		32	(24)		(74)	61
	Other gains or losses		(24)		(74)	61
Gains/(losses) from hedge accounting, net		32	(3)		45	39
Exchange differences (gain/loss), net			(49)		(52)	12
Other operating income		33	649		655	628
Other operating expenses		33	(1,005)		(1,041)	(1,152)
Income from assets under insurance and reinsurance contracts		33	1,107		884	939
Expenses from liabilities under insurance and reinsurance contracts		33	(509)		(328)	(388)
GROSS INCOME			8,410		8,605	8,767
Administrative expenses			(4,039)		(5,204)	(4,254)
	Personnel expenses	34	(2,841)		(3,956)	(2,958)
	Other administrative expenses	35	(1,198)		(1,248)	(1,296)
Depreciation and amortisation		18 and 19		(540)	(546)	(404)
Provisions or reversal of provisions		23		(221)	(186)	(441)
Impairment/(reversal) of impairment on financial assets not measured at fair value through profit or loss or net profit or loss due to a change		36		(1,943)	(425)	(126)
	Financial assets at fair value with changes in other comprehensive income			(1)		(2)
	Financial assets at amortised cost			(1,942)	(425)	(124)
Impairment/(reversal) of impairment on investments in joint ventures and associates.		16		(316)		(61)
Impairment/(reversal) of impairment on non-financial assets		37		(112)	(106)	(49)
	Tangible assets			(110)	(80)	(17)
	Intangible assets			(14)	(25)	(25)
	Other			12	(1)	(7)
Gains/(losses) on derecognition of non-financial assets, net		16 and 38		27	55	(476)
Profit/(loss) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations		39		334	(116)	(149)
PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS				1,600	2,077	2,807
Tax expense or income related to profit or loss from continuing operations		25		(219)	(369)	(712)
PROFIT/(LOSS) AFTER TAX FROM CONTINUING OPERATIONS				1,381	1,708	2,095
Profit/(loss) after tax from discontinued operations		1				(55)
PROFIT/(LOSS) FOR THE PERIOD				1,381	1,708	2,040
Attributable to minority interests (non-controlling interests)					3	55
Attributable to owners of the parent				1,381	1,705	1,985

(*) Presented for comparison purposes only (see Note 1)

(1) Also includes the interest on available-for-sale financial assets (IAS 39) linked to the insurance business.

(2) Also includes interest on loans and receivables (IAS 39) of the insurance business.

Consolidated statement of changes in equity (Part A) Consolidated statement of other comprehensive income (Millions of euros)

			NOTE	2020	2019 *	2018 *
PROFIT/(LOSS) FOR THE PERIOD				1,381	1,708	2,040
OTHER COMPREHENSIVE INCOME				(740)	(76)	(715)
Items that will not be reclassified to profit or loss				(815)	(232)	(517)
	Actuarial gains or losses on defined benefit pension plans			(139)	(124)	(43)
	Share of other recognised income and expense of investments in joint ventures and associates			13	(8)	(64)
	Fair value changes of equity instruments measured at fair value with changes in other comprehensive income		13	(719)	(145)	(455)
	Failed fair value hedges of equity instruments measured at fair value with changes in other comprehensive income
	Income tax relating to items that will not be reclassified			30	45	45
Items that may be reclassified to profit or loss				75	156	(198)
	Foreign currency exchange			(29)	2	(87)
		Translation gains/(losses) taken to equity		(29)	2	(229)
		Transferred to profit or loss				142
	Cash flow hedges (effective portion)			146	(54)	15
		Valuation gains/(losses) taken to equity		130	9	(60)
		Transferred to profit or loss		16	(63)	75
	Debt instruments classified as fair value financial assets with changes in other comprehensive income			65	325	(114)
		Valuation gains/(losses) taken to equity		101	523	7
		Transferred to profit or loss		(36)	(198)	(121)
	Share of other recognised income and expense of investments in joint ventures and associates			(39)	41
	Income tax relating to items that may be reclassified to profit or loss			(68)	(158)	(12)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD				641	1,632	1,325
	Attributable to minority interests (non-controlling interests)				3	76
	Attributable to owners of the parent			641	1,629	1,249

(*) Presented for comparison purposes only (see Note 1)

Consolidated statement of changes in equity (Part B) Consolidated statement of total changes in equity (Millions of euros)

	NOTE	EQUITY ATTRIBUTABLE TO THE PARENT									MINORITY INTERESTS		TOTAL
		SHAREHOLDERS' EQUITY								ACCUMULATED OTHER COMPREHENSIVE INCOME	ACCUMULATED OTHER COMPREHENSIVE INCOME	OTHER ITEMS
		CAPITAL	SHARE PREMIUM	OTHER EQUITY	RETAINED EARNINGS	OTHER RESERVES	LESS: TREASURY SHARES	PROFIT/(LOSS) ATTRIBUTABLE TO THE OWNERS OF THE PARENT	LESS: INTERIM DIVIDENDS	ACCUMULATED OTHER COMPREHENSIVE INCOME	ACCUMULATED OTHER COMPREHENSIVE INCOME	OTHER ITEMS
BALANCE AT 31-12-2017		5,981	12,033	10	6,038	(594)	(12)	1,684	(418)	(290)	(17)	451	24,866
Effects of changes in accounting policies						(538)				(23)	(4)	9	(556)
First application of IFRS 9	1					(538)				(23)	(4)	9	(556)
OPENING BALANCE AT 01-01-2018		5,981	12,033	10	6,038	(1,132)	(12)	1,684	(418)	(313)	(21)	460	24,310
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD								1,985		(736)	21	55	1,325
OTHER CHANGES IN EQUITY				9	1,262	(373)	2	(1,684)	(1)			(486)	(1,271)
Dividends (or remuneration to shareholders)					(478)				(419)			(5)	(902)
Purchase of treasury shares	24						(2)						(2)
Sale or cancellation of treasury shares	24						4						4
Transfers among components of equity					1,715			(1,684)	418			(450)	(1)
Other increase/(decrease) in equity				9	25	(373)						(31)	(370)
BALANCE AT 31-12-2018		5,981	12,033	19	7,300	(1,505)	(10)	1,985	(419)	(1,049)		29	24,364
OPENING BALANCE AT 01-01-2019		5,981	12,033	19	7,300	(1,505)	(10)	1,985	(419)	(1,049)		29	24,364
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD								1,705		(76)		3	1,632
OTHER CHANGES IN EQUITY				5	495	224		(1,985)	419			(3)	(845)
Dividends (or remuneration to shareholders)	6				(598)							(3)	(601)
Purchase of treasury shares	24						(8)						(8)
Sale or cancellation of treasury shares	24						8						8
Transfers among components of equity					1,566			(1,985)	419
Other increase/(decrease) in equity				5	(473)	224							(244)
BALANCE AT 31-12-2019		5,981	12,033	24	7,795	(1,281)	(10)	1,705		(1,125)		29	25,151
OPENING BALANCE AT 01-01-2020		5,981	12,033	24	7,795	(1,281)	(10)	1,705		(1,125)		29	25,151
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD								1,381		(740)			641
OTHER CHANGES IN EQUITY				1	924	272	(2)	(1,705)				(4)	(514)
Dividends (or remuneration to shareholders)	6				(418)							(4)	(422)
Purchase of treasury shares	24						(8)						(8)
Sale or cancellation of treasury shares	24						6						6
Transfers among components of equity					1,705			(1,705)
Other increase/(decrease) in equity				1	(363)	272							(90)
BALANCE AT 31-12-2020		5,981	12,033	25	8,719	(1,009)	(12)	1,381		(1,865)		25	25,278

Consolidated statement of cash flows (indirect method) (Millions of euros)

		NOTE	2020	2019 **	2018 **
A) CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES			37,562	(6,453)	(4,878)
Profit (loss) for the period *			1,381	1,708	2,040
Adjustments to obtain cash flows from operating activities			3,062	4,495	3,518
	Depreciation and amortisation		540	546	404
	Other adjustments		2,522	3,949	3,114
Net increase/(decrease) in operating assets			(24,832)	(8,780)	(9,438)
	Financial assets held for trading		1,013	(1,743)	(169)
	Financial assets not designated for trading compulsorily measured at fair value through profit or loss		110	277	118
	Financial assets designated at fair value through profit or loss			(1)
	Financial assets at fair value with changes in other comprehensive income		(1,488)	4,016	(1,056)
	Financial assets at amortised cost		(25,193)	(5,879)	(9,258)
	Other operating assets		726	(5,450)	927
Net increase/(decrease) in operating liabilities			58,101	(3,787)	(494)
	Financial liabilities held for trading		(1,914)	1,333	410
	Financial liabilities designated at fair value through profit or loss			1
	Financial liabilities at amortised cost		59,369	(4,687)	1,996
	Other operating liabilities		646	(434)	(2,900)
Income tax (paid)/received			(150)	(89)	(504)
B) CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES			484	(117)	5,301
Payments:			(776)	(822)	(1,219)
	Tangible assets		(403)	(525)	(512)
	Intangible assets		(287)	(232)	(224)
	Investments in joint ventures and associates			(5)	(64)
	Subsidiaries and other business units				(354)
	Non-current assets and liabilities classified as held for sale		(86)	(60)	(65)
Proceeds:			1,260	705	6,520
	Tangible assets		228	340	798
	Intangible assets			8	5
	Investments in joint ventures and associates		644	9	1,302
	Non-current assets and liabilities classified as held for sale		388	348	4,415
C) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES			(1,540)	2,521	(1,416)
Payments:			(5,277)	(2,869)	(8,006)
	Dividends	6	(418)	(602)	(902)
	Subordinated liabilities				(2,072)
	Purchase of own equity instruments		(8)	(8)	(2)
	Other payments related to financing activities		(4,851)	(2,259)	(5,030)
Proceeds:			3,737	5,390	6,590
	Subordinated liabilities	22	746		2,250
	Disposal of own equity instruments		6	8	4
	Other proceeds related to financing activities		2,985	5,382	4,336
D) EFFECT OF EXCHANGE RATE CHANGES			(5)	1	(4)
E) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C+D)			36,501	(4,048)	(997)
F) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR			15,110	19,158	20,155
G) CASH AND CASH EQUIVALENTS AT END OF YEAR (E+F)			51,611	15,110	19,158
	Cash		2,339	2,700	2,468
	Cash equivalents at central banks		48,535	11,836	15,783
	Other financial assets		737	574	907
TOTAL CASH AND CASH EQUIVALENTS AT END OF YEAR			51,611	15,110	19,158
	(*) Of which: Interest received		7,413	7,080	7,057
	Of which: Interest paid		2,123	1,951	2,100
	Of which: Dividends received		532	578	456

(**) Presented for comparison purposes only. (see note 1)

CaixaBank, SA and companies compising the Caixabank Group

Notes to the consolidated financial statements of CaixaBank Group at 31 december 2020

As required by current legislation governing the content of consolidated financial statements, these notes to the consolidated financial statements complete, extend and discuss the balance sheet, statement of profit or loss, statement of changes in equity and the statement of cash flows, and form an integral part of them to give a true and fair view of the equity and financial position of CaixaBank group at 31 December 2020, and the results of its operations, the changes in equity and the cash flows during the year then ended.

CaixaBank Group Financial Statements

at 31 December 2020, 2019 and 2018, before appropriation of profit

for the years ended 31 December 2020, 2019 and 2018

for the years ended 31 December 2020, 2019 and 2018

for the years ended 31 December 2020, 2019 and 2018

for the year ended 31 December 2020

Notes to the consolidated financial statements of CaixaBank Group at 31 december 2020