In accordance with Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of 19 July 2002 and with Bank of Portugal Notice no. 1/2015 (which revoked Bank of Portugal Notice no. 1/2005), the Group’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union (EU) since the year 2005 (in the case of the individual financial statements, since the year 2016). IFRS comprise accounting standards issued by the International Accounting Standards Board (IASB) as well as interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) and their predecessor bodies.
The individual and consolidated financial statements presented were approved by the Bank’s Board of Directors on 26 April 2019.
Group’s Consolidated Financial Statements
Bank’s Individual Financial Statements
Thousand euros
| Notes | 2018 | 2017(*) | |
|---|---|---|---|
| Interest income | 2 | 1,889,739 | 1,914,210 |
| Interest expense | 2 | (466,108) | (522,935) |
| NET INTEREST INCOME | 1,423,631 | 1,391,275 | |
| Dividends from equity instruments | 3 | 636 | 1,754 |
| Net fees and commissions income | 4 | 684,019 | 666,697 |
| Net gains / (losses) from financial operations at fair value through profit or loss | 5 | 638 | 13,964 |
| Net gains / (losses) from foreign exchange | 5 | 75,355 | 72,460 |
| Net gains / (losses) from hedge accounting operations | 5 | 2,552 | (32,753) |
| Net gains / (losses) from derecognition of financial assets and liabilities at amortised cost | 5 | (49,432) | (8,325) |
| Net gains / (losses) from derecognition of financial assets at fair value through other comprehensive income | 5 | 49,435 | n.a. |
| Net gains / (losses) from financial assets available for sale | 5 | n.a. | 103,030 |
| Net gains / (losses) from insurance activity | 8,477 | 4,212 | |
| Other operating income / (losses) | 6 | (135,878) | (110,606) |
| TOTAL OPERATING INCOME | 2,059,433 | 2,101,708 | |
| Staff costs | 7 | 592,792 | 526,577 |
| Other administrative costs | 8 | 376,676 | 374,022 |
| Amortizations and depreciations | 9 | 57,745 | 53,582 |
| TOTAL OPERATING EXPENSES | 1,027,213 | 954,181 | |
| OPERATING NET INCOME BEFORE PROVISIONS AND IMPAIRMENTS | 1,032,220 | 1,147,527 | |
| Impairment for financial assets at amortised cost | 10 | (465,468) | (623,708) |
| Impairment for financial assets at fair value through other comprehensive income | 11 | 1,092 | n.a. |
| Impairment for financial assets available for sale | 11 | n.a. | (63,421) |
| Impairment for other assets | 12 | (79,037) | (220,973) |
| Other provisions | 13 | (57,689) | (16,710) |
| NET OPERATING INCOME | 431,118 | 222,715 | |
| Share of profit of associates under the equity method | 14 | 89,175 | 91,637 |
| Gains / (losses) arising from sales of subsidiaries and other assets | 15 | 37,916 | 4,139 |
| NET INCOME BEFORE INCOME TAXES | 558,209 | 318,491 | |
| Income taxes | |||
| Current | 31 | (105,559) | (102,113) |
| Deferred | 31 | (32,458) | 71,954 |
| INCOME AFTER INCOME TAXES FROM CONTINUING OPERATIONS | 420,192 | 288,332 | |
| Income arising from discontinued or discontinuing operations | 16 | (1,318) | 1,225 |
| NET INCOME AFTER INCOME TAXES | 418,874 | 289,557 | |
| Net income for the year attributable to: | |||
| Bank's Shareholders | 301,065 | 186,391 | |
| Non-controlling interests | 45 | 117,809 | 103,166 |
| NET INCOME FOR THE YEAR | 418,874 | 289,557 | |
| Earnings per share (in Euros) | |||
| Basic | 17 | 0.020 | 0.014 |
| Diluted | 17 | 0.020 | 0.014 |
(*) The balances for the year ended 31 December 2017 consider the alignment with the new presentation requirements established by IFRS 9. These balances are presented exclusively for comparative purposes and have not been restated following the adoption of IFRS 9, with reference to 1 January 2018, as allowed by IFRS 9 (note 59).
See accompanying notes to the consolidated financial statements.
See accompanying notes to the consolidated financial statements.
Chief AccountantThe Executive Committee
Thousand euros
2018
| Continuing operations | Discontinued operations | Total | Attributable to | ||
|---|---|---|---|---|---|
| Bank's Shareholders | Non-controlling interests | ||||
| NET INCOME FOR THE YEAR | 420,192 | (1,318) | 418,874 | 301,065 | 117,809 |
| ITEMS THAT MAY BE RECLASSIFIED TO THE INCOME STATEMENT | |||||
| Debt instruments at fair value through other comprehensive income | |||||
| Gains / (losses) for the year | 17,720 | - | 17,720 | 7,131 | 10,589 |
| Reclassification of (gains) / losses to profit or loss | (49,435) | - | (49,435) | (47,222) | (2,213) |
| Cash flows hedging | |||||
| Gains / (losses) for the year | 97,955 | - | 97,955 | 92,720 | 5,235 |
| Other comprehensive income from investments in associates and others | (2,737) | - | (2,737) | (2,681) | (56) |
| Exchange differences arising on consolidation | (131,345) | - | (131,345) | (104,937) | (26,408) |
| IAS 29 application | |||||
| Effect on equity of Banco Millennium Atlântico, S.A (note 44) | 14,914 | - | 14,914 | 14,914 | - |
| Fiscal impact | (21,410) | - | (21,410) | (18,824) | (2,586) |
| (74,338) | - | (74,338) | (58,899) | (15,439) | |
| ITEMS THAT WILL NOT BE RECLASSIFIED TO THE INCOME STATEMENT | |||||
| Equity instruments at fair value through other comprehensive income | |||||
| Gains / (losses) for the year | 99 | - | 99 | 176 | (77) |
| Changes in credit risk of financial liabilities at fair value through profit or loss | 2,193 | - | 2,193 | 2,193 | - |
| Actuarial gains / (losses) for the year | |||||
| BCP Group Pensions Fund | (97,922) | - | (97,922) | (97,922) | - |
| Pension Fund - other associated companies | 536 | - | 536 | 545 | (9) |
| Fiscal impact | (15,338) | - | (15,338) | (15,354) | 16 |
| (110,432) | - | (110,432) | (110,362) | (70) | |
| Other comprehensive income / (loss) for the year | (184,770) | - | (184,770) | (169,261) | (15,509) |
| TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR | 235,422 | (1,318) | 234,104 | 131,804 | 102,300 |
See accompanying notes to the consolidated financial statements.
Chief AccountantThe Executive Committee
Thousand euros
2017 (*)
| Continuing operations | Discontinued operations | Total | Attributable to | ||
|---|---|---|---|---|---|
| Bank's Shareholders | Non-controlling interests | ||||
| NET INCOME FOR THE YEAR | 288,332 | 1,225 | 289,557 | 186,391 | 103,166 |
| ITEMS THAT MAY BE RECLASSIFIED TO THE INCOME STATEMENT | |||||
| Available-for-sale financial assets | |||||
| Gains / (losses) for the year | 438,181 | - | 438,181 | 419,821 | 18,360 |
| Reclassification of (gains) / losses to profit or loss | (103,030) | - | (103,030) | (100,041) | (2,989) |
| Cash flows hedging | |||||
| Gains / (losses) for the year | (36,618) | - | (36,618) | (43,856) | 7,238 |
| Exchange differences arising on consolidation | 54,808 | - | 54,808 | 200 | 54,608 |
| IAS 29 application | |||||
| Effect on equity of Banco Millennium Atlântico, S.A (note 44) | 28,428 | - | 28,428 | 28,428 | - |
| Others | (3,965) | - | (3,965) | (3,965) | - |
| Fiscal impact | (67,182) | - | (67,182) | (63,202) | (3,980) |
| 310,622 | - | 310,622 | 237,385 | 73,237 | |
| ITEMS THAT WILL NOT BE RECLASSIFIED TO THE INCOME STATEMENT | |||||
| Actuarial gains / (losses) for the year | |||||
| BCP Group Pensions Fund | 28,994 | - | 28,994 | 28,994 | - |
| Pension Fund - other associated companies | 4,135 | - | 4,135 | 1,864 | 2,271 |
| Fiscal impact | (46,965) | - | (46,965) | (46,019) | (946) |
| (13,836) | - | (13,836) | (15,161) | 1,325 | |
| Other comprehensive income / (loss) for the year | 296,786 | - | 296,786 | 222,224 | 74,562 |
| TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR | 585,118 | 1,225 | 586,343 | 408,615 | 177,728 |
(*) The balances for the year ended 31 December 2017 consider the alignment with the new presentation requirements established by IFRS 9. These balances are presented exclusively for comparative purposes and have not been restated following the adoption of IFRS 9, with reference to 1 January 2018, as allowed by IFRS 9 (note 59).
Chief AccountantThe Executive Committee
Thousand euros
| Notes | 2018 | 2017 (*) | |
|---|---|---|---|
| ASSETS | |||
| Cash and deposits at Central Banks | 18 | 2,753,839 | 2,167,934 |
| Loans and advances to credit institutions repayable on demand | 19 | 326,707 | 295,532 |
| Financial assets at amortised cost | |||
| Loans and advances to credit institutions | 20 | 890,033 | 1,065,568 |
| Loans and advances to customers | 21 | 45,560,926 | 45,625,972 |
| Debt securities | 22 | 3,375,014 | 2,007,520 |
| Financial assets at fair value through profit or loss | |||
| Financial assets held for trading | 23 | 870,454 | 897,734 |
| Financial assets not held for trading mandatorily at fair value through profit or loss | 23 | 1,404,684 | n.a. |
| Financial assets designated at fair value through profit or loss | 23 | 33,034 | 142,336 |
| Financial assets at fair value through other comprehensive income | 23 | 13,845,625 | n.a. |
| Financial assets available for sale | 23 | n.a. | 11,471,847 |
| Financial assets held to maturity | 24 | n.a. | 411,799 |
| Assets with repurchase agreement | 58,252 | - | |
| Hedging derivatives | 25 | 123,054 | 234,345 |
| Investments in associated companies | 26 | 405,082 | 571,362 |
| Non-current assets held for sale | 27 | 1,868,458 | 2,164,567 |
| Investment property | 28 | 11,058 | 12,400 |
| Other tangible assets | 29 | 461,276 | 490,423 |
| Goodwill and intangible assets | 30 | 174,395 | 164,406 |
| Current tax assets | 32,712 | 25,914 | |
| Deferred tax assets | 31 | 2,916,630 | 3,137,767 |
| Other assets | 32 | 811,816 | 1,052,024 |
| TOTAL ASSETS | 75,923,049 | 71,939,450 | |
| LIABILITIES | |||
| Financial liabilities at amortised cost | |||
| Resources from credit institutions | 33 | 7,752,796 | 7,487,357 |
| Resources from customers | 34 | 52,664,687 | 48,285,425 |
| Non subordinated debt securities issued | 35 | 1,686,087 | 2,066,538 |
| Subordinated debt | 36 | 1,072,105 | 1,169,062 |
| Financial liabilities at fair value through profit or loss | |||
| Financial liabilities held for trading | 37 | 327,008 | 399,101 |
| Financial liabilities at fair value through profit or loss | 38 | 3,603,647 | 3,843,645 |
| Hedging derivatives | 25 | 177,900 | 177,337 |
| Provisions | 39 | 350,832 | 324,158 |
| Current tax liabilities | 18,547 | 12,568 | |
| Deferred tax liabilities | 31 | 5,460 | 6,030 |
| Other liabilities | 40 | 1,300,074 | 988,493 |
| TOTAL LIABILITIES | 68,959,143 | 64,759,714 | |
| EQUITY | |||
| Share capital | 41 | 4,725,000 | 5,600,738 |
| Share premium | 41 | 16,471 | 16,471 |
| Preference shares | 41 | - | 59,910 |
| Other equity instruments | 41 | 2,922 | 2,922 |
| Legal and statutory reserves | 42 | 264,608 | 252,806 |
| Treasury shares | 43 | (74) | (293) |
| Reserves and retained earnings | 44 | 470,481 | (38,130) |
| Net income for the year attributable to Bank's Shareholders | 301,065 | 186,391 | |
| TOTAL EQUITY ATTRIBUTABLE TO BANK'S SHAREHOLDERS | 5,780,473 | 6,080,815 | |
| Non-controlling interests | 45 | 1,183,433 | 1,098,921 |
| TOTAL EQUITY | 6,963,906 | 7,179,736 | |
| TOTAL LIABILITIES AND EQUITY | 75,923,049 | 71,939,450 |
(*) The balances for the year ended 31 December 2017 consider the alignment with the new presentation requirements established by IFRS 9. These balances are presented exclusively for comparative purposes and have not been restated following the adoption of IFRS 9, with reference to 1 January 2018, as allowed by IFRS 9 (note 59).
See accompanying notes to the consolidated financial statements.
See accompanying notes to the consolidated financial statements.
Chief AccountantThe Executive Committee
Thousand euros
| 2018 | 2017 (*) | |
|---|---|---|
| CASH FLOWS ARISING FROM OPERATING ACTIVITIES | ||
| Interests received | 1,652,260 | 1,699,189 |
| Commissions received | 880,287 | 836,581 |
| Fees received from services rendered | 48,866 | 60,514 |
| Interests paid | (461,280) | (522,214) |
| Commissions paid | (140,956) | (128,186) |
| Recoveries on loans previously written off | 13,210 | 16,966 |
| Net earned insurance premiums | 17,698 | 19,847 |
| Claims incurred of insurance activity | (5,393) | (10,891) |
| Payments (cash) to suppliers and employees | (1,158,346) | (1,086,602) |
| Income taxes (paid) / received | (67,569) | (118,676) |
| 778,777 | 766,528 | |
| Decrease / (increase) in operating assets: | ||
| Receivables from / (Loans and advances to) credit institutions | 121,768 | 28,747 |
| Deposits held with purpose of monetary control | 50,114 | (37,653) |
| Loans and advances to customers receivable / (granted) | (1,254,603) | (244,376) |
| Short term trading account securities | (93,688) | 36,195 |
| Increase / (decrease) in operating liabilities: | ||
| Loans and advances to credit institutions repayable on demand | 111,842 | (51,702) |
| Deposits from credit institutions with agreed maturity date | 175,304 | (2,380,305) |
| Loans and advances to customers repayable on demand | 5,144,519 | 3,430,158 |
| Deposits from customers with agreed maturity date | (1,051,734) | (970,378) |
| 3,982,299 | 577,214 | |
| CASH FLOWS ARISING FROM INVESTING ACTIVITIES | ||
| Sale of shares in associated companies | 98,000 | - |
| Acquisition of investments in subsidiaries and associated companies | - | (787) |
| Dividends received | 67,213 | 102,759 |
| Interest income from financial assets at fair value through other comprehensive income and at amortised cost | 311,001 | - |
| Sale of financial assets at fair value through other comprehensive income and at amortised cost | 5,725,095 | - |
| Acquisition of financial assets at fair value through other comprehensive income and at amortised cost | (56,020,038) | - |
| Maturity of financial assets at fair value through other comprehensive income and at amortised cost | 46,049,277 | - |
| Interest income from financial assets available for sale and financial assets held to maturity | - | 253,783 |
| Sale of financial assets available for sale and financial assets held to maturity | - | 8,046,852 |
| Acquisition of financial assets available for sale and financial assets held to maturity | - | (42,160,122) |
| Maturity of financial assets available for sale and financial assets held to maturity | - | 33,937,652 |
| Acquisition of tangible and intangible assets | (88,560) | (88,393) |
| Sale of tangible and intangible assets | 39,507 | 8,014 |
| Decrease / (increase) in other sundry assets | 703,905 | (304,789) |
| (3,114,600) | (205,031) | |
| CASH FLOWS ARISING FROM FINANCING ACTIVITIES | ||
| Sale of shares in subsidiaries companies which does not results loss control | (1,400) | - |
| Issuance of subordinated debt | 192 | 472,742 |
| Reimbursement of subordinated debt | (96,181) | (852,386) |
| Issuance of debt securities | 447,007 | 1,312,759 |
| Reimbursement of debt securities | (640,376) | (1,994,444) |
| Issuance of commercial paper and other securities | 23,204 | 188,076 |
| Reimbursement of commercial paper and other securities | (108,930) | (9,674) |
| Share capital increase | - | 1,295,148 |
| Dividends paid to non-controlling interests | (9,088) | (7,787) |
| Increase / (decrease) in other sundry liabilities and non-controlling interests | 266,298 | (384,203) |
| (119,274) | 20,231 | |
| Exchange differences effect on cash and equivalents | (131,345) | 48,915 |
| Net changes in cash and equivalents | 617,080 | 441,329 |
| Cash (note 18) | 540,608 | 540,290 |
| Deposits at Central Banks (note 18) | 1,627,326 | 1,033,622 |
| Loans and advances to credit institutions repayable on demand (note 19) | 295,532 | 448,225 |
| CASH AND EQUIVALENTS AT THE BEGINNING OF THE YEAR | 2,463,466 | 2,022,137 |
| Cash (note 18) | 566,202 | 540,608 |
| Deposits at Central Banks (note 18) | 2,187,637 | 1,627,326 |
| Loans and advances to credit institutions repayable on demand (note 19) | 326,707 | 295,532 |
| CASH AND EQUIVALENTS AT THE END OF THE YEAR | 3,080,546 | 2,463,466 |
(*) The balances for the year ended 31 December 2017 consider the alignment with the new presentation requirements established by IFRS 9. These balances are presented exclusively for comparative purposes and have not been restated following the adoption of IFRS 9, with reference to 1 January 2018, as allowed by IFRS 9 (note 59).
See accompanying notes to the consolidated financial statements.
See accompanying notes to the consolidated financial statements.
Chief AccountantThe Executive Committee
Thousand euros
| Share capital | Share premium | Preference shares | Other equity instruments | Legal and statutory reserves | Treasury shares | Reserves and retained earnings | Net income for the year attributable to Bank's Shareholders | Equity attributable to Bank's Shareholders | Non-controlling interests (note 45) | Total equity | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BALANCE AS AT 31 DECEMBER 2016 | 4,268,818 | 16,471 | 59,910 | 2,922 | 245,875 | (2,880) | (232,938) | 23,938 | 4,382,116 | 883,065 | 5,265,181 |
| Net income for the year | - | - | - | - | - | - | - | 186,391 | 186,391 | 103,166 | 289,557 |
| Other comprehensive income | - | - | - | - | - | - | 222,224 | - | 222,224 | 74,562 | 296,786 |
| TOTAL COMPREHENSIVE INCOME | - | - | - | - | - | - | 222,224 | 186,391 | 408,615 | 177,728 | 586,343 |
| Results application: | |||||||||||
| Legal reserve | - | - | - | - | 6,931 | - | - | (6,931) | - | - | - |
| Transfers for Reserves and retained earnings | - | - | - | - | - | - | 17,007 | (17,007) | - | - | - |
| Share capital increase | 1,331,920 | - | - | - | - | - | - | - | 1,331,920 | - | 1,331,920 |
| Costs related to the share capital increase | - | - | - | - | - | - | (36,772) | - | (36,772) | - | (36,772) |
| Tax related to costs arising from the share capital increase (a) | - | - | - | - | - | - | (8,264) | - | (8,264) | - | (8,264) |
| Dividends (b) | - | - | - | - | - | - | - | - | - | (7,787) | (7,787) |
| Treasury shares | - | - | - | - | - | 2,587 | 1,083 | - | 3,670 | - | 3,670 |
| Other reserves | - | - | - | - | - | - | (470) | - | (470) | 45,915 | 45,445 |
| BALANCE AS AT 31 DECEMBER 2017 (*) | 5,600,738 | 16,471 | 59,910 | 2,922 | 252,806 | (293) | (38,130) | 186,391 | 6,080,815 | 1,098,921 | 7,179,736 |
| Transition adjustments IFRS 9 (note 59) | |||||||||||
| Gross value | - | - | - | - | - | - | (218,184) | - | (218,184) | (36,999) | (255,183) |
| Taxes | - | - | - | - | - | - | (155,472) | - | (155,472) | 6,888 | (148,584) |
| - | - | - | - | - | - | (373,656) | - | (373,656) | (30,111) | (403,767) | |
| BALANCES AS AT 1 JANUARY 2018 | 5,600,738 | 16,471 | 59,910 | 2,922 | 252,806 | (293) | (411,786) | 186,391 | 5,707,159 | 1,068,810 | 6,775,969 |
| Net income for the year | - | - | - | - | - | - | - | 301,065 | 301,065 | 117,809 | 418,874 |
| Other comprehensive income | - | - | - | - | - | - | (169,261) | - | (169,261) | (15,509) | (184,770) |
| TOTAL COMPREHENSIVE INCOME | - | - | - | - | - | - | (169,261) | 301,065 | 131,804 | 102,300 | 234,104 |
| Results application: | |||||||||||
| Legal reserve (note 42) | - | - | - | - | 11,802 | - | - | (11,802) | - | - | - |
| Transfers for reserves and retained earnings | - | - | - | - | - | - | 174,589 | (174,589) | - | - | - |
| Share capital decrease (note 41) | (875,738) | - | - | - | - | - | 875,738 | - | - | - | - |
| Reimbursement of preference shares (note 41) | - | - | (59,910) | - | - | - | 373 | - | (59,537) | - | (59,537) |
| Costs related to the share capital increase | - | - | - | - | - | - | (41) | - | (41) | - | (41) |
| Constitution and acquisition of subsidiaries | - | - | - | - | - | - | - | - | - | 21,359 | 21,359 |
| Preferred shares dividends | - | - | - | - | - | - | (722) | - | (722) | - | (722) |
| Dividends from other equity instruments | - | - | - | - | - | - | (149) | - | (149) | - | (149) |
| Dividends (a) | - | - | - | - | - | - | - | - | - | (9,088) | (9,088) |
| Treasury shares (note 43) | - | - | - | - | - | 219 | - | - | 219 | - | 219 |
| Gains arising on sale of 10% of Setelote | - | - | - | - | - | - | 252 | - | 252 | - | 252 |
| Other reserves (note 44) | - | - | - | - | - | - | 1,488 | - | 1,488 | 52 | 1,540 |
| BALANCE AS AT 31 DECEMBER 2018 | 4,725,000 | 16,471 | - | 2,922 | 264,608 | (74) | 470,481 | 301,065 | 5,780,473 | 1,183,433 | 6,963,906 |
(*) The balances for the year ended 31 December 2017 consider the alignment with the new presentation requirements established by IFRS 9. These balances are presented exclusively for comparative purposes and have not been restated following the adoption of IFRS 9, with reference to 1 January 2018, as allowed by IFRS 9 (note 59).
(a) Includes the derecognition of deferred taxes related to tax losses from previous years associated to costs arising from the share capital increase.
(b) Dividends of BIM - Banco Internacional de Moçambique, S.A. and SIM - Seguradora Internacional de Moçambique, S.A.R.L.
See accompanying notes to the consolidated financial statements.
(a) Includes the derecognition of deferred taxes related to tax losses from previous years associated to costs arising from the share capital increase.
(b) Dividends of BIM - Banco Internacional de Moçambique, S.A. and SIM - Seguradora Internacional de Moçambique, S.A.R.L.
See accompanying notes to the consolidated financial statements.
Chief AccountantThe Executive Committee