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)

  	31-12-2020 **	31/12/2019	31/12/2018
  Spanish government debt securities	17,342	12,699	13,947
  Other Spanish issuers	1,237	1,246	1,270
  Other foreign issuers	6,091	3,444	1,843
  TOTAL	24,670	17,389	17,060

  (*) See Note 3.4.1., section "Concentration according to sovereign risk".

  (*) Fixed income portfolio sales have been carried out in 2020 for a nominal amount of EUR 1,054 million, with a profit of EUR 114 million, allocated to the item "Gains/(losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net", with no impact on the business model.

  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 (Millions of euros)

  		2020					2019					2018
  		STAGE 1:	STAGE 2:	STAGE 3:	TOTAL		STAGE 1:	STAGE 2:	STAGE 3:	TOTAL		STAGE 1:	STAGE 2:	STAGE 3:	TOTAL
  Opening balance		17,375	6	14	17,395		17,035	16	13	17,064		2,616		13	2,629
  1st application of IFRS 9												10,172	9		10,181
  Adjusted balance at start of the year		17,375	6	14	17,395		17,035	16	13	17,064		12,788	9	13	12,810
  Transfers								(1)	1
  	From stage 2:							(1)	1
  New financial assets		13,822	103	12	13,937		1,296			1,296		6,195	8		6,203
  Financial asset disposals (other than write-offs)		(6,645)	(6)	(13)	(6,664)		(875)	(9)		(884)		(1,840)	(9)	(13)	(1,862)
  Changes in contractual cash flows													8	13	21
  Changes in interest accrual		11			11		(81)			(81)		(108)			(108)
  Write-offs
  Exchange differences and other		2			2
  CLOSING BALANCE		24,565	103	13	24,681		17,375	6	14	17,395		17,035	16	13	17,064
  Impairment allowances*		(2)	(5)	(4)	(11)		(2)		(4)	(6)		(1)		(3)	(4)

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

• 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)

  		31/12/2020	31/12/2019	31/12/2018
  Demand		3,748	3,581	6,154
  	Other accounts	3,748	3,581	6,154
  Term		2,097	1,560	1,392
  	Deposits with agreed maturity	2,097	1,560	1,380
  	Reverse repurchase agreement
  	Assets in stage 3			12
  TOTAL		5,845	5,141	7,546

  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 (Millions of euros)

  		2020					2019					2018
  		STAGE 1:	STAGE 2:	STAGE 3:	TOTAL		STAGE 1:	STAGE 2:	STAGE 3:	TOTAL		STAGE 1:	STAGE 2:	STAGE 3:	TOTAL
  Opening balance		202,924	15,541	8,387	226,852		196,634	16,328	10,718	223,680		209,337	0	13,797	223,134
  1st application of IFRS 9												(16,113)	15,664	(16)	(465)
  Adjusted balance at start of the year		202,924	15,541	8,387	226,852		196,634	16,328	10,718	223,680		193,224	15,664	13,781	222,669
  Transfers		(4,549)	3,461	1,088	0		(1,643)	745	898	0		(2,254)	1,794	460	0
  	From stage 1:	(9,624)	9,097	527	0		(4,555)	4,044	511	0		(4,718)	4,150	568	0
  	From stage 2:	5,040	(6,045)	1,005	0		2,873	(3,855)	982	0		2,437	(3,211)	774	0
  	From stage 3:	35	409	(444)	0		39	556	(595)	0		27	855	(882)	0
  New financial assets		65,815	4,822	818	71,455		48,829	1,386	502	50,717		45,675	1,795	871	48,341
  Financial asset disposals (other than write-offs)		(49,915)	(3,758)	(1,017)	(54,690)		(40,896)	(2,918)	(1,627)	(45,441)		(40,011	(2,925)	(3,015)	(45,951)
  Write-offs				(1,020)	(1,020)				(2,104)	(2,104)				(1,379)	(1,379)
  CLOSING BALANCE		214,275	20,066	8,256	242,597		202,924	15,541	8,387	226,852		196,634	16,328	10,718	223,680

  The changes 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 (Millions of euros)

  	2020								2019								2018
  	STAGE 1:		STAGE 2:		STAGE 3:		TOTAL		STAGE 1:		STAGE 2:		STAGE 3:		TOTAL		STAGE 1:		STAGE 2:		STAGE 3:		TOTAL
  Opening balance	574		708		3,416		4,698		695		741		4,277		5,713		1,412		-		5,404		6,816
  1st application of IFRS 9 (Note 1)							-								-		(440)		589		614		763
  Adjusted balance at start of the year	574		708		3,416		4,698		695		741		4,277		5,713		972		589		6,018		7,579
  Net allowances	328		423		942		1,693		21		(13)		400		408		(203)		(204)		475		68
  From stage 1:	216		472		238		926		(116)		32		219		135		52		23		180		255
  From stage 2:	(16)		(89)		469		364		(19)		(105)		142		18		(10)		(60)		(38)		(108)
  From stage 3:	(49)		(35)		61		22		(8)		(21)		(125)		(154)		(4)		(27)		55		24
  New financial assets	165		133		328		626		183		112		344		639		134		77		415		626
  Disposals	(33)		(58)		(154)		(245)		(19)		(31)		(180)		(230)		(375)		(217)		(137)		(729)
  Amounts used					(670)		(670)						(1,308)		(1,308)						(1,777)		(1,777)
  Transfers and other	18		(67)		(63)		(112)		(142)		(20)		47		(115)		(74)		356		(439)		(157)
  CLOSING BALANCE	920		1,064		3,625		5,609		574		708		3,416		4,698		695		741		4,277		5,713
  Of which: COVID-19 fund	414		477		361		1,252