In accordance with Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of 19 July 2002, and Bank of Portugal Notice no. 5/2015 (which revoked Bank of Portugal Notice no. 1/2005), the Group’s consolidated financial statements are required to be prepared, since 2005 (in the case of the individual financial statements, since the year 2016), in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union (EU). 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 its predecessor bodies.
The consolidated and individual financial statements and the accompanying notes were approved on 26 March 2020 by the Bank’s Board of Directors.
Group’s Consolidated Financial Statements
Bank’s Individual Financial Statements
Thousand euros
Notes | 2019 | 2018 | |
---|---|---|---|
Interest and similar income | 2 | 1,991,445 | 1,889,739 |
Interest expense and similar charges | 2 | (442,917) | (466,108) |
NET INTEREST INCOME | 1,548,528 | 1,423,631 | |
Dividends from equity instruments | 3 | 798 | 636 |
Net fees and commissions income | 4 | 703,497 | 684,019 |
Net gains / (losses) from financial operations at fair value through profit or loss | 5 | 4,837 | 1,400 |
Net gains / (losses) from foreign exchange | 5 | 69,391 | 75,355 |
Net gains / (losses) from hedge accounting operations | 5 | (5,682) | 2,552 |
Net gains / (losses) from derecognition of financial assets and liabilities at amortised cost | 5 | (24,909) | (50,194) |
Net gains / (losses) from derecognition of financial assets at fair value through other comprehensive income | 5 | 99,676 | 49,435 |
Net gains / (losses) from insurance activity | 11,752 | 8,477 | |
Other operating income / (losses) | 6 | (144,400) | (135,878) |
TOTAL OPERATING INCOME | 2,263,488 | 2,059,433 | |
Staff costs | 7 | 668,232 | 592,792 |
Other administrative costs | 8 | 376,455 | 376,676 |
Amortizations and depreciations | 9 | 124,785 | 57,745 |
TOTAL OPERATING EXPENSES | 1,169,472 | 1,027,213 | |
OPERATING NET INCOME BEFORE PROVISIONS AND IMPAIRMENTS | 1,094,016 | 1,032,220 | |
Impairment for financial assets at amortised cost | 10 | (390,308) | (465,468) |
Impairment for financial assets at fair value through other comprehensive income | 11 | 2,180 | 1,092 |
Impairment for other assets | 12 | (96,034) | (79,037) |
Other provisions | 13 | (57,484) | (57,689) |
NET OPERATING INCOME | 552,370 | 431,118 | |
Share of profit of associates under the equity method | 14 | 42,989 | 89,175 |
Gains / (losses) arising from sales of subsidiaries and other assets | 15 | 31,907 | 37,916 |
NET INCOME BEFORE INCOME TAXES | 627,266 | 558,209 | |
Income taxes | |||
Current | 30 | (100,908) | (105,559) |
Deferred | 30 | (138,370) | (32,458) |
NET INCOME AFTER INCOME TAXES FROM CONTINUING OPERATIONS | 387,988 | 420,192 | |
Income arising from discontinued or discontinuing operations | 16 | 13,412 | (1,318) |
NET INCOME AFTER INCOME TAXES | 401,400 | 418,874 | |
Net income for the year attributable to: | |||
Bank's Shareholders | 302,003 | 301,065 | |
Non-controlling interests | 44 | 99,397 | 117,809 |
NET INCOME FOR THE YEAR | 401,400 | 418,874 | |
Earnings per share (in Euros) | |||
Basic | 17 | 0.018 | 0.020 |
Diluted | 17 | 0.018 | 0.020 |
See accompanying notes to the consolidated financial statements.
Thousand euros
2019
Continuing operations | Discontinued operations | Total | Attributable to | ||
---|---|---|---|---|---|
Bank's Shareholders | Non-controlling interests | ||||
NET INCOME FOR THE YEAR | 387,988 | 13,412 | 401,400 | 302,003 | 99,397 |
ITEMS THAT MAY BE RECLASSIFIED TO THE INCOME STATEMENT (NOTE 43) | |||||
Debt instruments at fair value through other comprehensive income | |||||
Gains / (losses) for the year | 183,516 | - | 183,516 | 184,115 | (599) |
Reclassification of (gains) / losses to profit or loss | (99,676) | - | (99,676) | (94,923) | (4,753) |
Cash flows hedging | |||||
Gains / (losses) for the year | 52,303 | - | 52,303 | 47,625 | 4,678 |
Other comprehensive income from investments in associates and others | 3,539 | - | 3,539 | 3,530 | 9 |
Exchange differences arising on consolidation | (24,449) | - | (24,449) | (35,952) | 11,503 |
IAS 29 application | |||||
Effect on equity of Banco Millennium Atlântico, S.A. | (4,529) | - | (4,529) | (4,529) | - |
Fiscal impact | (44,906) | - | (44,906) | (45,042) | 136 |
65,798 | - | 65,798 | 54,824 | 10,974 | |
ITEMS THAT WILL NOT BE RECLASSIFIED TO THE INCOME STATEMENT | |||||
Equity instruments at fair value through other comprehensive income | |||||
Gains / (losses) for the year (note 43) | (10,109) | - | (10,109) | (10,508) | 399 |
Changes in credit risk of financial liabilities at fair value through profit or loss (note 43) | (4,019) | - | (4,019) | (4,019) | - |
Actuarial gains / (losses) for the year | |||||
BCP Group Pensions Fund (note 50) | (285,335) | - | (285,335) | (285,335) | - |
Pension Fund - other associated companies | (3,455) | - | (3,455) | (3,369) | (86) |
Fiscal impact | (44,679) | - | (44,679) | (44,619) | (60) |
(347,597) | - | (347,597) | (347,850) | 253 | |
Other comprehensive income / (loss) for the year | (281,799) | - | (281,799) | (293,026) | 11,227 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 106,189 | 13,412 | 119,601 | 8,977 | 110,624 |
See accompanying notes to the consolidated financial statements.
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 (NOTE 43) | |||||
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 43) | 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 (note 43) | 99 | - | 99 | 176 | (77) |
Changes in credit risk of financial liabilities at fair value through profit or loss (note 43) | 2,193 | - | 2,193 | 2,193 | - |
Actuarial gains / (losses) for the year | - | - | |||
BCP Group Pensions Fund (note 50) | (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 FOR THE YEAR | 235,422 | (1,318) | 234,104 | 131,804 | 102,300 |
Thousand euros
Notes | 2019 | 2018 | |
---|---|---|---|
ASSETS | |||
Cash and deposits at Central Banks | 18 | 5,166,551 | 2,753,839 |
Loans and advances to credit institutions repayable on demand | 19 | 320,857 | 326,707 |
Financial assets at amortised cost | |||
Loans and advances to credit institutions | 20 | 892,995 | 890,033 |
Loans and advances to customers | 21 | 49,847,829 | 45,560,926 |
Debt securities | 22 | 3,185,876 | 3,375,014 |
Financial assets at fair value through profit or loss | |||
Financial assets held for trading | 23 | 878,334 | 870,454 |
Financial assets not held for trading mandatorily at fair value through profit or loss | 23 | 1,405,513 | 1,404,684 |
Financial assets designated at fair value through profit or loss | 23 | 31,496 | 33,034 |
Financial assets at fair value through other comprehensive income | 23 | 13,216,701 | 13,845,625 |
Assets with repurchase agreement | - | 58,252 | |
Hedging derivatives | 24 | 45,141 | 123,054 |
Investments in associated companies | 25 | 400,391 | 405,082 |
Non-current assets held for sale | 26 | 1,279,841 | 1,868,458 |
Investment property | 27 | 13,291 | 11,058 |
Other tangible assets | 28 | 729,442 | 461,276 |
Goodwill and intangible assets | 29 | 242,630 | 174,395 |
Current tax assets | 26,738 | 32,712 | |
Deferred tax assets | 30 | 2,720,648 | 2,916,630 |
Other assets | 31 | 1,239,134 | 811,816 |
TOTAL ASSETS | 81,643,408 | 75,923,049 | |
LIABILITIES | |||
Financial liabilities at amortised cost | |||
Resources from credit institutions | 32 | 6,366,958 | 7,752,796 |
Resources from customers | 33 | 59,127,005 | 52,664,687 |
Non subordinated debt securities issued | 34 | 1,594,724 | 1,686,087 |
Subordinated debt | 35 | 1,577,706 | 1,072,105 |
Financial liabilities at fair value through profit or loss | |||
Financial liabilities held for trading | 36 | 343,933 | 327,008 |
Financial liabilities at fair value through profit or loss | 37 | 3,201,309 | 3,603,647 |
Hedging derivatives | 24 | 229,923 | 177,900 |
Provisions | 38 | 345,312 | 350,832 |
Current tax liabilities | 21,990 | 18,547 | |
Deferred tax liabilities | 30 | 11,069 | 5,460 |
Other liabilities | 39 | 1,442,225 | 1,300,074 |
TOTAL LIABILITIES | 74,262,154 | 68,959,143 | |
EQUITY | |||
Share capital | 40 | 4,725,000 | 4,725,000 |
Share premium | 40 | 16,471 | 16,471 |
Other equity instruments | 40 | 400,000 | 2,922 |
Legal and statutory reserves | 41 | 240,535 | 264,608 |
Treasury shares | 42 | (102) | (74) |
Reserves and retained earnings | 43 | 435,823 | 470,481 |
Net income for the year attributable to Bank's Shareholders | 302,003 | 301,065 | |
TOTAL EQUITY ATTRIBUTABLE TO BANK'S SHAREHOLDERS | 6,119,730 | 5,780,473 | |
Non-controlling interests | 44 | 1,261,524 | 1,183,433 |
TOTAL EQUITY | 7,381,254 | 6,963,906 | |
TOTAL LIABILITIES AND EQUITY | 81,643,408 | 75,923,049 |
See accompanying notes to the consolidated financial statements.
Thousand euros
2019 | 2018 | |
---|---|---|
CASH FLOWS ARISING FROM OPERATING ACTIVITIES | ||
Interests received | 1,743,234 | 1,652,260 |
Commissions received | 899,938 | 880,287 |
Fees received from services rendered | 100,315 | 48,866 |
Interests paid | (426,571) | (461,280) |
Commissions paid | (171,815) | (140,956) |
Recoveries on loans previously written off | 24,269 | 13,210 |
Net earned insurance premiums | 17,418 | 17,698 |
Claims incurred of insurance activity | (6,591) | (5,393) |
Payments (cash) to suppliers and employees (*) | (1,248,720) | (1,158,346) |
Income taxes (paid) / received | (61,027) | (67,569) |
870,450 | 778,777 | |
Decrease / (increase) in operating assets: | ||
Receivables from / (Loans and advances to) credit institutions | (2,626) | 121,768 |
Deposits held with purpose of monetary control | - | 50,114 |
Loans and advances to customers receivable / (granted) | (1,901,159) | (1,254,603) |
Short term trading account securities | 165,922 | (93,688) |
Increase / (decrease) in operating liabilities: | ||
Loans and advances to credit institutions repayable on demand | (108,587) | 111,842 |
Deposits from credit institutions with agreed maturity date | (2,154,270) | 175,304 |
Loans and advances to customers repayable on demand | 5,444,107 | 5,144,519 |
Deposits from customers with agreed maturity date | (1,784,092) | (1,051,734) |
529,745 | 3,982,299 | |
CASH FLOWS ARISING FROM INVESTING ACTIVITIES | ||
Sale of shares in associated companies | 13 | 98,000 |
Acquisition of investments in subsidiaries (**) | (348,997) | - |
Dividends received | 11,003 | 67,213 |
Interest income from financial assets at fair value through other comprehensive income and at amortised cost | 291,339 | 311,001 |
Sale of financial assets at fair value through other comprehensive income and at amortised cost | 19,886,088 | 5,725,095 |
Acquisition of financial assets at fair value through other comprehensive income and at amortised cost | (50,627,555) | (56,020,038) |
Maturity of financial assets at fair value through other comprehensive income and at amortised cost | 32,096,533 | 46,049,277 |
Acquisition of tangible and intangible assets | (105,715) | (88,560) |
Sale of tangible and intangible assets | 14,475 | 39,507 |
Decrease / (increase) in other sundry assets | (231,448) | 703,905 |
985,736 | (3,114,600) | |
CASH FLOWS ARISING FROM FINANCING ACTIVITIES | ||
Sale of shares in subsidiaries companies which does not results loss control | - | (1,400) |
Issuance of subordinated debt | 647,216 | 192 |
Reimbursement of subordinated debt | (129,536) | (96,181) |
Issuance of debt securities | 545,825 | 447,007 |
Reimbursement of debt securities | (310,448) | (640,376) |
Issuance of commercial paper and other securities | 238,839 | 23,204 |
Reimbursement of commercial paper and other securities | (171,641) | (108,930) |
Issue of Perpetual Subordinated Bonds (Additional Tier 1) (note 48) | 396,325 | - |
Reimbursed of perpetual subordinated debt securities | (2,922) | - |
Dividends paid to shareholders of the Bank (note 47) | (30,228) | - |
Dividends paid of perpetual subordinated debt securities | (148) | (149) |
Dividends paid to non-controlling interests | (15,502) | (9,088) |
Interest paid of the issue of Perpetual Subordinated Bonds (Additional Tier 1) | (27,750) | - |
Increase / (decrease) in other sundry liabilities and non-controlling interests (***) | (224,200) | 266,447 |
915,830 | (119,274) | |
Exchange differences effect on cash and equivalents | (24,449) | (131,345) |
Net changes in cash and equivalents | 2,406,862 | 617,080 |
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 BEGINNING OF THE YEAR | 3,080,546 | 2,463,466 |
Cash (note 18) | 636,048 | 566,202 |
Deposits at Central Banks (note 18) | 4,530,503 | 2,187,637 |
Loans and advances to credit institutions repayable on demand (note 19) | 320,857 | 326,707 |
CASH AND EQUIVALENTS AT THE END OF THE YEAR | 5,487,408 | 3,080,546 |
(**) In 2019, this balance includes the investment in Euro Bank, S.A. (Euros 424,370,000) , net of Cash and equivalents at the time of the acquisition (Euros 75,373,000).
(***) In 2019, this balance includes the amount of Euros 56.552.000 corresponding to payments of lease liabilities’ shares of capital.
See accompanying notes to the consolidated financial statements.
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 44) | Total equity | |
---|---|---|---|---|---|---|---|---|---|---|---|
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 | |||||||||||
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 | - | - | - | - | 11,802 | - | - | (11,802) | - | - | - |
Transfers for reserves and retained earnings | - | - | - | - | - | - | 174,589 | (174,589) | - | - | - |
Share capital decrease (note 40) | (875,738) | - | - | - | - | - | 875,738 | - | - | - | - |
Reimbursement of preference shares (note 40) | - | - | (59,910) | - | - | - | 373 | - | (59,537) | - | (59,537) |
Costs related to the share capital decrease | - | - | - | - | - | - | (41) | - | (41) | - | (41) |
Constitution and acquisition of subsidiaries | - | - | - | - | - | - | - | - | - | 21,359 | 21,359 |
Dividends from preference shares | - | - | - | - | - | - | (722) | - | (722) | - | (722) |
Dividends from other equity instruments | - | - | - | - | - | - | (149) | - | (149) | - | (149) |
Dividends (a) | - | - | - | - | - | - | - | - | - | (9,088) | (9,088) |
Treasury shares | - | - | - | - | - | 219 | - | - | 219 | - | 219 |
Gains arising on sale of 10% of Setelote | - | - | - | - | - | - | 252 | - | 252 | - | 252 |
Other reserves | - | - | - | - | - | - | 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 |
Net income for the year | - | - | - | - | - | - | - | 302,003 | 302,003 | 99,397 | 401,400 |
Other comprehensive income | - | - | - | - | - | - | (293,026) | - | (293,026) | 11,227 | (281,799) |
TOTAL COMPREHENSIVE INCOME | - | - | - | - | - | - | (293,026) | 302,003 | 8,977 | 110,624 | 119,601 |
Results application (note 48): | |||||||||||
Statutory reserve (note 41) | - | - | - | - | (30,000) | - | 30,000 | - | - | - | - |
Legal reserve (note 41) | - | - | - | - | 5,927 | - | (5,927) | - | - | - | - |
Transfers for reserves and retained earnings | - | - | - | - | - | - | 301,065 | (301,065) | - | - | - |
Dividends payed (note 48) | (30,228) | - | (30,228) | - | (30,228) | ||||||
Issue of perpetual subordinated bonds (Additional Tier 1) (note 40) | - | - | - | 400,000 | - | - | - | - | 400,000 | - | 400,000 |
Interests of the perpetual subordinated bonds (Additional Tier 1) (note 40) | - | - | - | - | - | (27,750) | - | (27,750) | - | (27,750) | |
Costs with the issue of the perpetual subordinated bonds (Additional Tier 1) | - | - | - | - | - | - | (3,675) | - | (3,675) | - | (3,675) |
Taxes with interests of the perpetual subordinated bonds (Additional Tier 1) | - | - | - | - | - | - | 19 | - | 19 | - | 19 |
Reimbursed of perpetual subordinated debt securities | - | - | - | (2,922) | - | - | - | - | (2,922) | - | (2,922) |
Reversal of deferred tax assets related with expenses with the capital increase | - | - | - | - | - | - | (3,652) | - | (3,652) | - | (3,652) |
Taxes on costs with the issue of the perpetual subordinated bonds (Additional Tier 1) | - | - | - | - | - | - | 2 | - | 2 | - | 2 |
Sale of subsidiaries | - | - | - | - | - | - | - | - | - | (16,699) | (16,699) |
Dividends from other equity instruments | - | - | - | - | - | - | (148) | - | (148) | - | (148) |
Dividends (a) | - | - | - | - | - | - | - | - | - | (15,502) | (15,502) |
Treasury shares (note 42) | - | - | - | - | - | (28) | - | - | (28) | - | (28) |
Other reserves (note 43) | - | - | - | - | - | - | (1,338) | - | (1,338) | (332) | (1,670) |
BALANCE AS AT 31 DECEMBER 2019 | 4,725,000 | 16,471 | - | 400,000 | 240,535 | (102) | 435,823 | 302,003 | 6,119,730 | 1,261,524 | 7,381,254 |
(a) 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.