UNICAJAUNICAJA BANCO,BANCO, S.A.S.A. -- SOCIEDAD UNIPERSONALUNIPERSONAL ANDAND ITS SUBSIDIARIESSUBSIDIARIES Auditor’sAuditor's report,report, consolidated annualannual accountsaccounts and consolidated directors’directors' reportreport at 31 DecemberDecember 2013 P. upwcpwc
AfreeAfree translationtransiaHon ofof thetite report on thetite consolidated annual accounts originally issued in SpanishSpanish andpreparedand prepared ittin aecordanceaccordance withwith generally accepted accountingaeeounftng principiesprinciples in Spain. In titethe eventevent of aa discrepancy,discrepancy, titethe SpmzishSpanish languagelanguage versionversionprevalis prevails
AUDITOWSAUDITOR'S REPORT ON THE CONSOUDATEDCONSOLIDATED ANNUALANNUAL ACCOUNTS
To thethe Sole Shareholder of Unicaja Banco, SA.S.A. -- SociedadSociedad Unipersonal,Unipersonal,
We havehave auditedaudited thethe consolidated annual accountsaccounts ofof UnicajaUnicaja Banco, S.A.SA. -- SociedadSociedad UnipersonalUnipersonal (the(the ParentParent Company) andand its subsidiañessubsidiaries (the Group), consisfingconsisting of thethe consolidated balancebalance sheetsheet at 31 December 2012, thethe consolidated incomeincome statement,statement, the consolidated statement ofof recognised income and expenses, thethe consolidated statement of changes in equity, the consolidated cash flowflow statementstatement and related notes to the consolidated annual accountsaccounts forfor theme yearyear then ended.ended. AsAs identifiedidenfified inlii Note 1.3 toto methe accompanying consolidatedconsolidated annualannual accounts,accounts, methe Parent Company'sCompany’s DfrectorsDirectors areare responsibleresponsible forfor methe preparation of methe Group’sGroup's financialfinancial statementsstatements inin accordance withwith InternationalInternational Financial ReportingReporting Standards,Standards, adopted by methe European Union, and otheromer provisions of thethe financialfinancial reportingreporting frameworkframework applicable toto methe Group.Group. OurOur responsibiityresponsibility isis toto expressexpress anan opinionopinion onon methe consolidatedconsolidated annual accounts taken as a whole, basedbased on methe work performedperformed in accordance with legislafionlegislation governing methe auditaudit pracficepractice in Spain, whichwhich requiresrequires methe examination, on a test basis, of evidence supporfingsupporting methe consolidated annual accounts and an evaluation of whetherwhether meirtheir overalloverall presentation,presentation, methe accounting principlesprinciples andand criteria applied andand methe esümatesestimates made are in accordance withwith methe applicable financialfinancial reporfingreporting framework.framework.
IiiIn our opinion, thethe accompanying consolidatedconsolidated annual accounts for 2013 presentpresent fafrly,fairly, inin aliall materialmaterial
respects,respects, methe consolidated financial position ofof Unicaja Banco, SA.S.A. --Sociedad SociedadUnipersonal Unipersonal andand itsits subsidiaries at 31 DecemberDecember 20132013 andand methe consolidatedconsolidated resultsresults of itsits operaüonsoperations andand consolidated cash flowsflows forforme theyear yearthen then ended,ended, inin accordanceaccordancewith withInternational International FinancialFinancial ReportingReporting Standards,Standards, adopted by titethe European Union, and omerother provisions of methe applicable financialfinancial reportingreporting framework.
The accompanyingaccompanying consolidatedconsolidated directors’directors' reportreport forfor 2013 containscontains methe explanafionsexplanations whichwhich methe ParentParent Company’sCompany's DirectorsDirectors considerconsider appropriateappropriate regardingregarding the situation of methe Group, methe development of itsits businessbusiness and other matters, and does not form an integral part of methe consolidated annualannual accounts. We havehaveverified verifiedmat thatthe the accounfingaccountinginformaflon information containedcontained inin methe consolidatedconsolidated directors’directors' reportreport is liiin agreement dmwith matthat of the consolidated annual accounts for 2013. Our work asas auditorsauditors is limitedlimited toto checldngchecking ffiethe consolidatedconsolidated directors’directors' reportreport inin accordanceaccordance wimwith thethe scopescope menfionedmentioned inin ffiisthis paragraphparagraph and does not include a review ofofinformation informationomer other manthan matthat obtained from methe accounting records of meGroup.the Group. acE:>'5 0-) PricewaterhouseCoÑPricewaterhouseCoffers 4#cuRrefr,4Øttø& S.L. .\-cv r. 60 Oñ1i%4hnedOrigirt‘ ht b‘signed byby Alejandro rMklorrietaElorrieta PartuerPartner -0‘‘V6'
7 MarchMarch 20142014
PricewaterhonsecoopersPrieewaterhouseCoopers Auditores,Auditores, S.L., Torre PwC,PwC, P°deP° de lala CastellanaCastellana2598, 259 B,28046 28046Madrid, Madrid, EspañaEspana TeL:Tel.: +34 915915684 684400 400/ / +34 902 021021 111,111, Fax:Fax: +34+34913 9.13083566, 083 566,www.pwc.com/es www.pwe.com/es
R.R. M. Madrid,Madrid, hojahoja 87.250-1, follofolio 75.75, tomo 9.267,9.267,11brolibro 6054,8.054, secciónseociOn 3’ InscritaInscrIteen enel elROSO. R.O.A.C.con canel etnúmero dimero 50242.S0242 - OIP:CIF: 8-799-79 031290031290 Li
UNICAJA BANCO, S.A.S.A. -- SOCIEDADSOCIEDAD UNIPERSONAL AND ITS SUBSIDIARIES (UNICAJA BANCO GROUP)GROUP)
ConsolidatedConsolidated AnnualAnnual AccountsAccounts atat 3131 DecemberDecember 2013 and ConsolidatedConsolidated Director’sDirectors Report 2013 UNICAJAUNICAJA BANCO,BANCO, S.A.SA - SOCIEDAD UNIPERSONAL AND ITSITS SUBSIDIARIESSUBSIDIARES (UNICAJA BANCOBANCO GROUP)
BALANCEBALANCE SHEETSHEETAS AS ATA? 31 DE DECEMBER 2013213 AND 2012 (Thousands(Thousands ofof auras)euros)
ASSETSflSETI Natelisa 2013ICU 30130511 LIABILMESuAIaJTin ANDMIO EQUITY!0500fl NoteNc 7013mi, 2012mit CASHCAESI ANDÑO BALANCESBÑ.N4CU ATAl CENTRALCEWRAL BANKSONdAS 7 11113257 013 257 516Sa 482402 LIABILITIESUA0?UTIU
FINANCIALRNMOAL ASSETSASTS HELD0501.0 FORPOR TRADINGTRAO4FC a 29177120? 771 124124 633833 FINANCIALFINWIOAL LIABILITIESUALflES HELDt€LO FORFON TRADING1RAND 1 11‘1051 051 77580 580 LoamIon end.nd advance.dv.nca tois creditsoso 1notrorionsbwlIuta,. - - DepositsDe fromfrsn —central —bank. - LoamLoa,. endsil askances8*eiI tois other45W debtaro - - DepositsD.pod* ssofromusd1 wait Martutlane?.tbn - - Debt0 aastsse:utile* 277377 1001 116110 717idi DappidteD sso hemfl othersida,. mato" - - EibityEØl Instrumentsjifle* 0800 420 57545704 DebtO— securitiese issued—— - - Tmdlts)Tnns derivativesdr?vflm 65237 237 22 112112 TradingTmla0 derivativesdelydva 11,, 951 7 68058 MemorandumMei”son&jm ten,:lam LootedLoa,.l crn, advanced.dv.nced ases corleteraliol.tw,? 108lOO 816055 22 676378 Shen5001 poollonsposare CherOlor Itnenrosi5ml ladollitlimOsblSn - •
OTHERDIMEN FINANCIALFIMfl4CIAL ASSETSASOSTO ATAl FAIRFMN VALUE OTHEROTIlEN FINANCIALF?NM3CML UAS?UTIEOLABIUM& ATAT FAIRFMR VALUEVALUE THROUGHTKROUGH PROFITPROFIT ORDR LOSSWSS - - THROUGHTHROUGH PROFITPROFII ORDR LOSSLOSO - MemorandumMemc,endum kern:len,. LoanedLoened orsr advanced,dv.nced ases cotaferarroten.,.?
F1NANC1ALFWW4CLAL UASLOT1EOLIABILITIESAT ATÑ.40Rfl000 AMORTISED COSICOST 1815 3835542300 542 300 37 927027 576878 AVAILABLE-FOR-SALEAVMLASLE-FDR-SALP FINANCIALFINN4CSAJ. ASSETSASESTO 0 23500 558 037 22745058 745 656 DeportsDopo.??. fromOso cenUalteol.? banksben?. 4 0112502 045 60017080 017 BBB DebtDibi seourroes..ro,O.. 11001000 051 OH 11034250 024 2513 DepositsDepcs?a fromSoso creditcodo Inedrollonsdesisto,,. 1 858050 514 11 030030620 621 EquityCØÁt4 Instrumentsamsma* 6145,450, 061 631‘21 69900) Deposita— fromSosn other— oredtars— 2625 712712001 061 2871T1M 717 165 MemorandumMwnarar Mumla,,: LoanedLoa,.d orsr advancedelvri eaa collateralfl 11W 387 108100 11n535 309 838 DebtDe1 socurtiaoa Mimed— 22 503503 646845 33 122‘U 101101 Subordinated— liabilities— 60ion 079 204392204503 OtherOSen financial llakilidesL0s5 611515005 055 838835004 604 LOANSLonm ANDMIO RECEIVABLESNECENASLES 10 2528805000 885 050 272730520 363 523 Loam0-sn endsil advances.d,w,cn toa emeltsedl Modtationsj,sfljls,s 68011033 011 025 2317400 174 an Loan*Un andsil advances.d,.ra. toa other*., debtorslibio,. 2121 761780386 390 242411000? 118 gat CHANGESDIMIDOS INP4 THET050 HAIRFMR VALUE OF TOSETHE HEDGED€nD rItMoITEMS INII - Debto- securities— 11100644 105 644 11005703 DU 712 PORTFOLIOPORTFDUO HEDGESMEDOES OF0€ INTERESTwirENnT RATERATE RISKOOJÇ MemorandumM.muenosm tem'Sen,. LoanedLoenil oru advancedldlenrod atIt =Deem!mOlr.? B5 682853353 363 88100511 100511 HEDGINGHE001NO DERIVATIVESDERIVAT1VEO 11II 4444088 085 16415400 41111
UABILEIIESUASIU1105 ASSOCIATEDAS5000ATEDWNN WITH NON-CURRENTNON.CUNNENr ASSETSASESTO HELDMOLO FORFON SALESALE - - HELD-TO-MATURfTYHELO-TO-MATUNOTY INVESTMENTSIMSIMENTS 9 44242658 242 650 05325 325 911IdI MemorandumMemos en&m Nom:Sen,: LoanedLamed oru advancededvenced eaes cordderalmbls.W 33013404 916 484 80 180150 867087 INSURANCEINSURNICE CONTRACTSCONTRACTO LIABILITIESUASIUT105 1010 55 740740 68514 514
CHANGESCOW000S IN0N THETKE FAIRFA VALUE OPTHEOF THE HEDGEDHE0000 ITEMSITSMO INli • - PROVISIONSPROV0010NS 1717 345345 161IdI 335335 274 PORTFOLIOPORTPOUO HEDGESMOnDES OFOF INTERESTINTSREST RATERATO RISKM05 ProvisionsPooolln forlo, pensions.pindooe andenlomO?., td miler m134019=1eOIs.dn 163583 000RN 1114184 207287 PareilomP1v. for— tares—a andes.? other— legal?.i contingent:1a - HEDGINGME0GJ0 DERIVATIVESOAT1VEB 11 543843745 745 745745 061501 Pro/IslamRosbes,. forfo, pollinator°“-0 I8.45ta ebillies oldsol commihnents.aoo..4. 212508 615 383086 1103 OtherOS-pi— provisions 132132540 546 112112 044044
NON-CURRENTNON-CURRENTASSETS ASSETS HELD0450.0 FORFON SALESALE 15 283016253058 263283554 564 TAXTXUASILmES LIABIUTIES 2323 111III 611510 117II, 707707 CurrantQn” 2528417 417 14‘43,5 215 INVESTMENTSIWMOh7S 12 279vino 752 5338663335- Deferred 6383009 009 103103403 402 AssociatesA.ssdtn 275vino no 333333 586505 Jointly-controlledJdnlycotrled soiS..angles GroupGmo mISeswrites - - WELFAREWELFME FUNDSFUNDO -
INSURANCEINSURMICE CONTRACTS00N1RACT5 LINKEDLINKED TOlo PENSIONSPENS4ONS 1B 132132 097007 110110358 351 OTHEROTIlEN LIABILITIESUASIUT100 16?8 aa90050 6513 123123751 711
REINSURANCEREINSURMICE ASSETSAbETO - -
TANGII3LElk400 OLE ASESTOASSETS 13 753753 691501 770778530 020 TOTAL IJABILETIESUA0ILfl1ES 31,.In,.2 151 712 3138803180 683 160 Property,Rop.ny, plantpliso endinI equipment.lpmeoit 591501 311311 529030203 283 ForFo ownorn osowe 591MIII’ 311 120830201 203 LeasedL5a80 outSt —under opntngopening lease— - EQUITYEOLITO AsalgnedAed toOs welfareeÉlrs projectsca - investmentbwnw4 propertiespispe1.. 162,n 30030 148lun; 727 MemorandumLbnonnam ten,:Item AcquiredAcqen.d inidprorar anent.frrce —ham 55413 413 11 747747 SHAREHOLDERS'SRREHO(L€RS EQUITY000-Sn 2121 9yfl 22 23 0815- 94104? 22 047547500 596 Amigned— capitalnpkM 100800860 000 50000)860 COO Registered 600800000 000 800086000 000 Li INTANGIBLEINTflS ASSETSAltEro 14 33800 6139 335,5 015 Leas:Len. Non-demanded— capita!rold - GoodwillO soleO?? - ShareO?,.,, premiumpiw” 15490441 040 044 1 649 044 Other00SF Intangiblenar4b?e omotseses?. 36693 560 3105315 ReservesRnewn ( 453513)451513) 178175508005 AostoolotodA0310I.Ied reservesInsoles Qona)(loons) ( 32853540 354) 254078284 078 ReservesReserves (losses)(Iei) of eoliamites accountedsorounlel forfol winou&n theIle equity.splIy methodmeO,ol ( 127159)127150) ( 70173)7017) TMTAl ASSETSASESTO 23 662003425 426 127027034 124 OtherOSitr equity Inliolmen?.itatititnents CurrentCusen? 3030515 515 3333 574574 EquityE41y oomponerrtronrocneot ciof osopowidcompound InsolOfinancial nelsonInoturrismi . - Deterred0.103)1 031631 011III 594504 050050 NormaingNno-etna equityoern unitsola andinI associatedenodeted fundssmli (avIo,(awing* boots)benOs) . - OtherOS - - Lem:Lsa TrastoryTrneoq shamstAimo - OTHEROTIlEN ASSETSASOETS 15 702703054 014 715715 37B370 ProMPoommoo or lose attributed.tI.dIoS,. lathe groupTDUP 7171410 410 (5 517253)577253) Inventoryo.-.--, 67357367? 671 635830184 134 LewLa,fl Dividend* end— remunerationwnisi - OtherDr- 2920243 243 6000185 165 VALUATIONVAUIAT1teÍ ADJUSTMENTSaMSUeeTO 1111734 734 ( 10111)081550 Available-for-saleAsdsbie4s. financialbenI.? ease%.aa 9o 3737004 014 2232400 405 CashC’ howIon hedgesh.4q, ( 2424303) 302) ((l254 12 540) HedgesHelga ofos netbol investments%w.nmt jiin abortionscfln abroadtosed - Exchange—— &terms. ( 120)?20) ( 07)rl EntitiesSitea .fledamounted fario using Pathe seyequity meladmoiled 22 ( 641)“II ( 2128321) 221) NoncurrentNoncn,flpntle estate held801W,..?. for sale ( 22412240 ( 735)738) OtherOSoso valuationo.?u.100 adjuebnents.*tb11a* ( 3513)
MINORITYMONORITY INTERESTSONTERESTO 44484 484 22800 598 ValuationVMu.ino adjustmentsedAsttenS (O 33705) 785) ( 3143)3543) OtherOOor 2020 15250 269 6O 534535
TOTAL EQUITY500.51V 11553 0e315*180 a2 rim531 111104, TOTAL ASSETSAflETO 4141242121 142 621 IC40714244 784 254 TOTALTOTAL LIABILITIESUABILJT1EI ANDANO EQUITY50011V 41 242242821 321 4040714254 714 264
MEMORANDUMMSMORANOUM ITEMS07)655 CONTINGENTCn,soOmEomJrmS EXPOSURES 30.130.1 892052551 651 1“03504 103 014 CONTINGENTCONTIF53OW COMMITMENTSCaIIMTMENTO 33400320 450 329 33 333333 150550 U Theni. acoompartylna.rçafltç 0Norm 1ISa to 4041 andrl4p.n&a Appendices SOI fiendrl OlIII tom,fn, ensi integreOteo,.? pertp.1 atcnt,. the consolidatedoo,.oil.i.d balanceb.?radoal sheet et.031 31 Dm:ember,Der.b, 20112013 Ii
UNICAJAUNICMA BANCO, SAS.A. - SOCIEDAD UNIPERSONAL AND lisITS SUBSIDIARIES (UNICMA(UNICAJA BANCO GROUP)
CONSOUDATEDCONSOLIDATED INCOME STATEMENT FOR TNETHE VEARSYEARS ENOEDENDED 31 DECEMBER 2013 ANOAND 20112012 (Thousands(thousands cfof eulos)euros)
(D.bft)(Debit Credit NateNato 2013 2012
INTERESTINTERESTAND AND SIMILAR INCOMEINCOME 31al 11103257 103 287 11186687 166 687 INTERESTINTEREST EXPENSE AND SIMILAR CHARGES 32 ( 491 201) ((557061) 557 061) II NET INTEREST INCOME 612066612 066 609609626 626
RETURN QNON EQUITYEQUIW INSTRUMENTS 33 24 889 28 732 LOSS/PROFITLQSSIPROFIT OF COMPANIES VALUED AT EQUITYEQUIW METHOD 34 15 827627 ( 2 128) U FEE ANOAND COMMISSION INCOME 35 156156436 436 156158776 775 FEEFEEAND AND COMMISSION EXPENSE 36 ( 1919497) 497) ( 20024)20 824) GAINS/(LOSSES) QNON FINANCIALFINANCLAL ASSETS ANOAND LLABILÍrIESLIABILITIES (NEI)(NET) 37 241 406 11 717 Financial assetsasso6 heldhd fcrüadingfor trading 29662 956 ( 1515675) 675) QifiermiandalOther financial assflassets stat f&rfair value through profitpmfit ocor lasaloss Financialflnanvl& instrumentsInatrumenta natnot canledcarried atst fafair value mrcughthrough pmfltprofit Dror lasaloss 23492;234 922 2711427 114 Other 35103 518 278 EXCHANGE DIFFERENCES (NEfl(NET) 2.4 ( 237) 802 OTHER OPERATING INCOME 38 6868705 705 4343793 793 Insurance mdand reinsurance premiums collected - Sales andsnd Income (mmfrom the provisionpmvlsfon cfof non-financlalnon-financial servlcesservices 33 088 27 320 Li Other operangoperating Incomeincome 35 617 1616473 473 OTHER OPERATING EXPENSE 39 ( 57 738) ( 73 998) Expenses relating,elating to insurance and relnsurancareinsurance contractacontracts VañaUonVariation Inin inventoriesInventaries ( 785) OtherOdiar operaUngoperating expenses ( 6656953) 953) ( 7373998) 998)
GROSS OPERA11NGOPERATING INCOME 1 041 667 764 498
ADMINISTRATIVEkOMlNlSTRATiE EXPENSES 40 (( 359 025)026) ( 370 228)226) StaffStsff costacosts ( 269269939) 939) ( 273273536) 536) Other general adminlatrativeadministrative expenses ( 89 067)087) ( 96 692) DEPRECIATION AND AMORTIZATION 13 y 14 ( 34792)34 792) ( 3737181) 181) PROVISIONS (NET) 17 ( 4048 769) ( 37 805) IMPAIRMENT LOSSES QNON FINANCIAL ASSETS (NET)(NET) ( 454566)464 566) ( 807807571) 571) LoansLaans and receivablesrecelvaNes 10 y 26 ( 446 008) ( 898698 443) OdiarOther financial instrumentsInstrumente not measured at (sirfair value through pretilprofit ocor loasloss 9 ( 8 558) ( 109 128)120)
PROFITI(LOSS)PROFITRLOSS) FROMFROMOPERATING OPERATINGACIWrnES ACM/TIES 144144604 504 1( 498267)498 257)
IMPAIRMENT LOSSES QNON OTHER ASSETS (NEfl(NET) 41 ( 61 852) ( 338 225) GoodwillGoodwfll and adirother intangiNeintangible assets OdiarOther asanassets ( 61 652)852) ( 338335 225) GAINS/(LOSSES)GAINS1(LOSSES) ONQN DISPOSAL OF ASSETS NOT CLASSIFIED AS NON-CURRENTNON-CURRENTASSETS ASSETS HELD FOR SALE 42 205 750 NEGATIVENEGATWE GOODWILL QNON BUSSINESS COMBINATIONS GAINS/(LOSSES) QNON DISPOSAL OF NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCOUNTED OPERATIONS 43 ({ 1313295) 295) ( 21 560)558)
PROFITALOSS)PROFITI(LOSS) BEFORE TAX 6956268 652 1( 867330)857 330)
INCOMEINCOME TAX 23 22157 157 280200125 125
MANDATORY TRANSFER TO COMMUNITY PROJECTS AND WELFARE FUNDS -
PROFIV(LOSS)PROFITI(LOSS) FROM CON11NUINGCONTINUING OPERATICNSOPERATIONS 71 719 ( 677 206)205)
INCOME FROM DISCONTINUEDDISCONT1NUED OPERATIONSOPERXflONS (NEfl(NET) - -
NET PROFIT FOR THErilE VEARYEAR 71 719 (1 677577 205) Profit/LossPmfivLoss attribulableattributable to parent entity 71 410 ( 577 253) Profit/LossProflULoss aftdbutsbleattributable to minoritymlnorlty InterestsInteresa 20 309 48
TireThe açce,w.nirtaccompanying NalnNotes lEs1ic 4345 and.nd Appendicesftaialcn I, It sndend III fsmform eaan trnm.IIntegralperi partofa Orel certsolldetedeadIdal.d ir,m.abEeit.nlIncome statement.131 et 31 OioembeDecember 2013.2013. UNICAJA BANCO,BANCO SAS.A. -SOCIEDAD UNIPERSONAL AND ITSff5 SUBSIDIARIES (UNICAJA BANCO GROUP)
PECOGNISEDRECOGNISED CONSOLIDATEDCOMSOUOATED INCOME ANOAND EXPENSESEXPENSES FOR THEfl4E YEARS ENDED 31 DECEMBER2013 2013 ANOAND 20122012 (Thousands of euros)
Note 2013 2012 A) CONSOLIDATEDCONSOUDATED PROFIT FOR WETHE YEAR 71 719 (577(5V 205)
B)6) OTHER RECOGNISED INCOME ANOAND EXPENSES 3030922 922 6664566 645 8.1) Items net tobe reclasslfled 9.1) Items not to be reclassified to profit orDr leasloss ( 363) - Aduadal Actuarial galnslQosses)gaInsgiosses) on deflned•benefitdefined-benefit pension plans 40 ( 519) - Non-current assetsassets heldheid for sofsalee - - CompaniesCompanles accounted forfor using the equityequlty methodrnethod - Income Iax Income tax on ¡temsitems not tolo be reclassifiedreclasslfied tolo profitprofil or Iossloss 156 -
B.2)6.2) Items elIgIblaeligible teto be reclasslfiedreclassified to profltprofit or loss 31 285 66 645
Avallable-for-saleAvailable-for-sale financlalfinancial assets 9 21 827 94 359 ValuallonValuation galnsgains (loases)(losses) 123123652 652 117117519 519 Amounts transferredtransferred loto thethe bicorneincome statementstatement (101 825) ( 2323 180)160) Other reclasslficaflonsreclassifications - -
Cash flowtlow hedgeshedoes 11 ( 1616803) 803) ( 99599) 599) Revaluation galnsl(losses)gains/(losses) ( 28530)26 530) ( 99599) 599) Ñnounts transfened Amounts transferred loto bicorneincome statementstatement 1111727 727 - ÑnountsAmounts transferred tolo the initialinilial valuevalue of hedgedhedged Itemsftems - - Other reclasslficallonsreclassifications -
Hedges of net Invsstnentsinvestments In eperaflonsoperations abitadabroad - - Valuation galnsgains (losses) - Amounts transferred to thethe income statement - - Other reclassificationsreclasslficallons - -
Exchange diferentesdifferences 2.4 ( 33) ( 167) ValuallonValuation galrisgains (losses) ( 33) ( 167) MiountsAmounts transferredtransferred loto thethe income staternentstatement - - Other reclassificatlonsreclassifications - -
Non-current assets heidheld for sale 15 730 ( 982) ValuationValuahon galnsgains Qosses)(losses) 730 ( 882)082) Amounts transferredtransferred loto thethe incorneincome statementstatement - - Other reclassificationsreclasslficaüons - -
EquityEqulty rnethodmethod enHilasentities 22 3838971 971 1111596 596 ValuaflonValuation galnsgains (losses) 3838971 971 1111596 598 MicuntsAmounts transferredtransferred toto titethe income staternentstatement - .. Other reclassificationsreclasslficallons - -
Other recognisedrecegnlsed IncomeInterne and expenses - -
IncomeInterne tax 23 ( 1313407) 407) ( 2826562) 562)
C) TOTAL INCOME AND EXPENSES RECOGNISED (A+B)(4+6) 102102841 641 (510660)(510 560)
C.1)CI) AttrlbutedAttributed to the parent cornpanycompany 102 332 (510 608) C.2)Attributed AMbUtad teto mlnodtyminority lntemstsinterests 309 48
fi.The aceofrapsnyfnaftTcwfti9 NA*n Notes 1 toto 4648 end.,d Appendicespidoes I,1,6 II yay III formm inkti.g IMeprefpan panelsa of ther.o.7nad recognisediwo6dnd consolidatedkcon. Inoomerel andi.pn saponify.131 et 31D.tvraer December 2012013.3,
U :.flr)r rzDrrDrDcor.rJrrDrcczDcDczDrrjrrDrzDrrDcDczDrz
UNICAJAUNICMA BANCO.BANCO, SAS.A. --SOCIEDADSOCIEDAD UNIPERSONALUNIPERSONAL AND ITSLIS SUBSIDIARIES (UNICAJA(UNICMA BANCO GROUP)
STATEMENT OF CHANGES ININ CONSOLIDATED EQUITYEQULTV FOR WETHE YEARS ENDED 31 DECEMBER 20132013 ANOAND 2012 (Thousands(Thousands of euros)sums)
EQUITYEomnAnmeuTAaLETo ATTRIELTTABLE TOPAPENT PARENTCDMANY DOWNY EQUITY Minorityllhiorlly HeRn.rvn Erin's ProlitPmmtar for 6ethe Valustion TotalTela1 EquityEquIty Capital/ Lest: TotalT Ial Interestslobresi. yearyesrsIIHboted attributed Total OwnOso sdjosfrieob EndowmentEne asni R....r...Reserves EquilYEqoey Dividends and adlusvo..t. (AccumulatedlAetoinabled methodeeffiod entitieseoliO.. to6 penolP....0 ouJ FundsFund. trimlload F.Y...rds losses!besad Reserves companyCOIIWY
BalanceB.I.nco atst 31112120113111212011 2 449 044 62 2 449 044 149145 004 ( 52 649) 105105 815 (22 000) 2 626525 214 I6 SS85533) 533) 2 642 381 3 578575 2 545 669969 AdjustmentsAdjuslnmnts duedueto to changeschangos inlo accountingaccountinq policylicy (Nola 1.12)112) ------AdjustmentsAdjustrrients modomade loto correctcoged anuraerrors ------— Adjusted begInninobeginning belencebalance 2 2 449 044 14s145 004 ( 5252 549) 105 515815 (22 000) 2 625528 214 ( 8585 033) 2 542 381311 3 570670 2 545 969959
Total racognisedrecognised bromeIncome mdand espermaexpense - - - - (577(5fl 253) - ( 577677 253) 5859 645545 ( 510 608) 4948 [( 610510 560)550)
OtherDthnchaiigslnequfty changes In equity - 106105974 22524) (1115 974 (( 26 624) (105515)815) 2222000 000 (( 33355) 365) - (( 33355) 365) (( 930) (( 44226) 295) Capitalcsplaiinaaas53 increases ------CapitalCmüuicliorra reductions ------Cmwedoon of Snw Conversion of financial liabilities0)hies intotilo equityeiIy - - _------Increases‘nansas InIn othero11 equityeqWy instrumentsinsbim*rds ------ReclassificationRedasdlcalion ofof Onanciallnaetd habitasliabilities loto oflerother aqiityequity lnslninsntsinstruments ------ReclassificationReclsselcaton 0fof oltsmother equityeqdly instrumentsblatnnhs tolo finandalftnwia liabilities)tddtaa ------Distributionffibtonofdiidenda(c) of dividends (c) - - 22000 - - - - ( 22fl) ODD) 22 040 ------TransactionsTranarorve involvingi,wohirig genown eqwlyequity trmtarwlsinstruments (mal)(net) ------TransfersTransferabelwaensilályilamn between equity items - 1061%974 974 ( 2628524) 524) 83815) ( ( 93 615) - ( 33365) 365) - ( 33365) 365) - (( 33365) 365) Increase!(lrteaa0sgo) Decrease) deladue loto busmesabusiness combinationscomhirmtons ------
Optona lo vealfas — Optional transfertansfa to welfare fus1sfunds — — - - — ------— -- -— -— Equity-loshaJ000l.based Equity-instrument-based paymentpaymonl ------Otheramor increaseslidecreases)inasasesí(deaeasos) inti equityoquiy ------(( 930)030) (1 930)
BalanceSsI.nce atst 31112!20123161212012 2 2 449 044 264254 975 ( 7971 173)173) (677(677 253)253) - 22047505 047 595 (( 1919 1118)158) 22028 029 400408 2 696595 2 031 104104 AdjustmentsAdjustmonla dueduelo to changeschangos inIn accountingaccounling policypo)cy (Note(Nola 1.12) - - - — - -— - - - - AdjustmentsAusllranls maderilado tolo correctcogect anuraerrors - - - - - ..- - - - - AdJusled boglnnlng 2 Adjusted beginning bslencebalance 2 449 044 264254 670976 ( 7979 173)173) (677253)(577 253) - 2 047 596595 ( 19188)19 185) 2 028025 408 2 586555 2 031 104104
Total racognlzedrecognized income and expense - brome aM --- -— 1141071410 - 71 410 3030922 922 102102 332 309308 102102541 141 Other01h51 changoschanges Inlo equityeqully - (601(551 332) 47 985) 577 253 ( 47 986) 577 263 - {{ 52 065)055) - ( 52 095)055) 1 479 ( SO50 588)556) CapitalCspet Increasesincreases ------Capital radeicbonoreductions ------Convorajon of Conversion of financialfinandal Liabilitieslabílilles mbinto oçityequity ------lo oqiály Increases in otherolher equity Inslnnenlsinstniments ------Peclassmflcation of Reclassification of financialInandal sobibitesliabilities loto oloorother oqtityequity inabunanlainstruments ------ReclassificationRoclaulcatai of othero9, equityOflsJW instrumentsiislonrn tola financiallnaM liabilitiestatites ------Distribution0ilhtistonofdeadn(c) of cfividends (c) - -. - -. ------TransactionsTrsnsadions involvinghwvivtnig 0*11own aqu3yequity Insbunsnlsinstruments (i*l)(net) ------TransfersTranalafsbolseeneqlilyitenla between equity items - (581 332) - (5131 332) (( 47479) 996) 577577253 253 -(- ( 5252005) 065) - - 11 479 ( 50505&) 586) Increase/(Decrease)lnaeased(Doaaasa) duedeja tolo businessbLotnoss combinationsontrónabais _------OptbricilOpIlonol transferIronsfer lo welfomawelfare lundihinds ------.- - - Equity-Instrument-basedEqeity4nsfrnnl-baaed paymentpaynsnt ------Orne Other increases/(decnsases)Inansesl(&aassos) Inti equityoc7ily ------..- -
BalanceBsltncest3Ul2l20l3 at 3111212013 22449043 449 044 (326(328354) 354) (127159) 7171410 410 -- ;20559410136 941 1111734 734 22078573 078 678 44434 484 22053 083 159159
TheDe accampanyingeenawsy*nq NotesNaln 11 In 4345.M and Appendicesl.pedrn I,1.1 II andW IbIIIloira tomso en negralIntegralpsn padaldea et thesbtna stidemental ofd.sog.s changes k,cflolfrdtqid1in consogdated equity .111at 31 Ooça.rieaDecember 2013. ______
UNICAJA BANCO, SAS.A. - SOCIEDAD UNIPERSONAL AND ITS175 SUBSIDIARIES (UNICAJA BANCO GROUP)
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEARS ENDED 31 DECEMBEROECEMBER 2013 ANOAND 2012 (Thousands of euros)
NoteNata 2013 2012
A) CASH FLOWS FROMFROfd OPERATINOOPERATING ACTM11ESACTIVITIES ( 639 686)685) 113 539) ii ( ( 113 639) NetN.tprofltfarüieyear profit for the year 7171971 719 ( 577206)677 206) AdJusbnenteAdjustments bto profitprafit sudand loseloes 134 250260 ( 102 638) DepmcialionDepreciation sodand amortizationamarlizaoo 13 y 14 3479234 792 37 181161 U OtherOtheradjuslmsnta adjustments 2.19 9999458 458 ( 139 619) Net Increase/decreaserncreaseldecmaso inlo operatingopamllng anoteassets (1 289 611) (2 696 035)036) Financial asaeteassets heldheid forfarfrading trading 6.19.1 ( 167 138) ( 72120)72 120) Other financlal Other financial asaeteassets atat fairfair value throughmmugh profitprnfit Gror loasloss - - Available-for-sale financlalfinancialasaete assets 9.1 179 921 (3438(3 436 268) Loan,Loans and receivablesrecelvables 10 (1 503 436) 642 244 OtheroperatingOther operating asaeteassets 201 042 7110971 109
Net lncreaswdecmsnincrease/decrease In operaUngoperating liabilitiesIIabIIWes 462482 793 30273 027 514614 FlnanclalFinancial habilitasliabilities heidheld forfradingfor trading 8.2 44014 401 40414 041
OtherOthier financialfinaridal liabilitiesIlablhfias alat fair valuevalue ltroughthrough profit arlaseor loss - - Fb,anctelFinancial habilitesliabilitiesal at anoqtsedamortised tcost 16 614 422 28864812 886 451 OffierOther operatingoperatng liabilitieshisbilita ( 136 030) 136138 992 Collections/PaymentsCollscUonslPaymonte of IncomeIncoen. teztax ( 38836)38 836) 133 626825
B)8) CASH FLOWS FROM INVESTMENTINWSTMENT ACTIVrnESACTIVITIES 21832 182 296 ( 62994)82 994) PaymentsPaymenta ( 1313646) 646) ( 146 676) 9 Tangible ascetaassets 13 ( 11 753) ( 70701)70 701) Intangible asaete assets 14 ( 1 661) ( 23) bnvestmentsInvestments 12 ( 232) ( 33350) 350) Other bualness unita Other business units - - Non-current asaete Non-current assets and associatedsasociated liabilitieshiabulues for sale 15 - - Held-to-matudtyMeld-to-maturitylnvestments investments 9.4 - ( 72601)72 601) Ollier paymente Other payments relatedrelatad toto Investinglnvestlng activitiesactviUea - -
CollectlonaCollections 21969412 196 941 6368163 681 TwigibleassetsTangible assets 13 1212324 324 1515799 799 Intangible asaete assets 14 - 121 InvealinenteInvestments 12 500 851651 Othier buslneaa unte Other business units - - Non-current asaete Non-current assets andend associatedassoclated liabilitieshabilites for sale 15 - - H&d-ta-mebidtyHeld-to-maturity investilenteinvestments 9.4 21831172 183 117 4691046 910 Other Other paymentspaymente related tolo investinginvestng activitiesactvffies - - (Contnuedl(Continued)
7bslb. peertmpanying.ampsnyIng NotesNsj.. 11 tols4E 4E and.nd AppersEces4midon 1,1I1,1 .ndand HlIlljons formon anlsjafl tMagrolpan bedst ofe. then.&dt.d consolidated55* cashja, flow.1.j.mrd statement.13’ at 3t D.s.mberDecember 20132013. ______
UNICAJA BANCO, SAS.A. -SOCIEDAD-SOCIEDAD UNIPERSONAL ANOAND ITSlIS SUBSIDIARIES (UNICAJA BANCO GROUP) CONSOLIDArEnCONSOLIDATED CASH FLOW STATEMENT FOR THE YEARS ENDED 31 DECEMBER 2a132013 Y 2012 frhousands(Thousands of cutos)euros)
NotaNote 2013 2012
C)CASHFLOWSFROMF1NANCINGACVVESC) CASH FLOWS FROM FINANCING ACTIVITIES ( 113113413) 413) 69216 921 PaymentsP.ymsnb ( 113413)113 413) ( 2222000) 000) DMdendsDividends 3 -_ ( 22 000) Subordinated liabilitiesIIabIWn 16.5 (( 113413) - Rodempuon Redemption of ownovni equity Instrumentslnsmiments - - Auishion of ovni equfty Acquisition of own equity lnsbumentsInstruments - - relatad OtIierOther paymentspaymfl related tot financingtnancing activitiesactvitles - -
CoIleoflonaCollections - 28 921 SubordlneledSubordinated liabilitiesIiibflitlcs 18.516,5 - 2892128 921 aqully Issuance of own equity instrumentsinstmments - - Disposal of own aquity Disposal of own equity InstmmentsInstruments - - GIbar lIocIons related lo flnancing Other collections related to financing aclividesactivities - -
O)D) EFFECT OF EXCHANGE RAFERATE FLUCTUATIONS -
E) NET INCREASE (DECREASE) IN CASH ANOAND CASH EQUIVALENTS (A+B+G+D)(A+B+C+D) 1 421429 197 (109(189 612)
9F) CASH ANOAND CASH EQUIVALNETS AlAT SEGINNINGBEGINNING OF PERIOD 618518 482 708 094094
G) CASH ANOAND CASH EQUIVALENTS AlAT ENOEND OF PERIOD 1 947 678679 618518 452482
MEMORANDUM ITEMS:
COMPONENTS OF CASH ANOAND CASH EQUIVALENTS FOR TIIETHE PERIOD Cash 2.19 211 754 220487220 487 Cash equlvaleniequivalent balances at central bank.banks 2.19 1 701 503 297 995 Olberfinancial caseta Other financial assets 2.192,19 34 422 - Lose:Less: bank ovordmftsoverdrafts rapayablorepayable on demand Total shcash and caslicash equlvalontsequivalents atat analend ofof podadperiod 2.19 1 947 679 518 482482 Of which heid by consolidated Of which held by consolidated antillesentitles but fbInot drawabledrawable by oroupgroup - - ni.The .onpayInoaccompanying NotalNotes 1 to4tto 43 .ndftcidc..and Appendices 1.111, II andM IIItmm.ntot.w.IIII form an trrtegrelp.iiolfia pert of theiisoIId.t.d.h consolidated seen !lowniaamrfltll statement a 31O.o.ah•rZDhi. December 2013. Moreover, the Bank is the parentpamnt ofoía a subgroup of subsidiariessubsidiarias that engage Inin diverse activihesactivities and rnakemake up Unicaja Banco Group. In accordanceaccordance withwith Article 6 ofof RoyalRoyal DecreeDecree 1159/20101159/2010 (17(17 September)September) whichwhlch approves the Rules for PreparingPrepañng Consolidated Annual Accounts and amends methe General Accounting Plan approved by Royal Decree 1514/2007 (16 November) and methe General Accounting Plan for SMEs approved by Royal Decree 1515/2007 (16 November), the Bank is obilgatedobligated to preparaprepare consoildatedconsolidated annual accounts as it has issuedissued securitiessecurites that are traded on a regulatedregulated marketmarlet in any European Union Member State, applying Internationalinternational financial reporting standards adopted by European Union Regulations. Consequently,Consequentiy, ffiethe Bank
has preparedpreparad theffie consolidatedconsolidated annual accounts forfor Unicaja BancoBanco, S.A. - SociedadSociedad UnipersonalUnipersonal and itslis subsidiadessubsidiaries (Unicaja(Unicaja BancoBanco Group),Group), inin additionaddition toto its ownown annualannual accounts,accounft, in accordanceaccordance withwiffi currentcurrent legislation.
The companies that form papipart of Unicaja Banco Group at 31 December 2013 are as follows:
Company flamaname ActlvltyActivity
PitaríaAlteria CorporaciónCorporecion unicaja,UnicaJa, S.L.U.S.L.U. investmeniInvestment on assets, real asistaestate and financialfinandal societiessodeties Altos dede JontoyeJontoya ResidenciaResidencia parapare Mayores,Mayores, S.L.u.S.L.U. GadabicGertatdc calecare MailsiesAnalishis Econ6nto’sEcon6micos dade Pafliucla,Andalucia, S.LU.S.L.U. StalinStudies amiand anetpisanalysis PJvi&LAndaluza deTrantiladasiesde Tramitecionesy yGestiones. Gestiones,SAO. SAU. MngemsnlManagement of documentsdoannont, amiand desdideeds CarteraCarters de Inventaresinversions Agroatimentaries,Agroamentadaa, S.L Food Industryimiusty ConstitasConsultors TécÑcaTeenIcaTASF., TASA, S.LU.S.L.U. ConMiting,Consulting, advismy.advisory, managnntmanagement and tedmitechnical davalopnienidevelopment of iand,land, urbesurban planningpleining andami buildingbuiidlr,g ccepasdónCorpotaciOn Urtinnr,Uninser, SAU.S.A.U. Bnwid&Financial sarrÁcasservices EscueleEameia Superior dede EstudiosEstudlosde deEmpresa, Empress,SA SA. Siudie.Studies amiand aneiysisanalysis GestiónGodOn de ActIvIdadesActividades yy ServidosServiciosEmpresariales, Empresarlares,SAU. SAU, ElectronicEieofronic recordinorecording amiand dataprocessingdata-processing GestiónGestien de Inmuebles Adquiridos,Adquirtdos, S.LU.S.L.U. Real estateasiste inmobtiadaActnipo,Inmobiiiaria Actnipo, S.L.u.S.L.U. RealRaai estateestete inmobiliariainmobillaria UniexUntex Sur,Sur, S.L.U.S.L.U. RealRaai asisteestate MllesMijes SotSol Resod,Resort, SL!).S.L.U. RaaiReal asisteestate PamueParque Industrialindustriai Humilladero,HumIllarlera,S.L S. L Industrial landami developmentdevelopment PdvándaiusPrivandalus inversionesInver:dories1 SICAV,I SICAV,SA SA CofledveCollective invesimeniInvestment InstitutionInatitution PromotoraPromoa GuX&neM&i,Guadainervien, S.LU.S,L.U. Real estateasiste RentsRenta Porfolio,Pocfdio, S.LU.S.L.U. RentalRenta) propertypmperty SegLEándalusSegurandalus Mediadón,MedleciOn, CoimdudaCorreduria dade Seguros, SAU, insurancaInsurance broteregebrokerage Ta,adesTasaclones Mdaiums,Andaluzas, SAU. Real estateasiste valuation UrdcaJaUnicaja GestiónGaston dedo ActivesActvos Inmobillarios,ImnoDados. SAO.S.A.U. Ra&Real estateasiste UnicadaraUnicartera CajaCaja 2.2, S.L.U. PromolionPromotion amiand nancingfinancing ofof R&OR&D Inin dv.the eldfield of medicine UnicarteraUnloartera GestiónGordian dede Activos, S.L.U.S.L.U. Debt recoveryrsvery and litiaionlitigation manapemantmanagement Unicartera Internacional, S.L.U.S.L.U. InvesimaniInvestment inIn assats,assets, securities amiand financafinance companieacompanies UnicaderaUnicartera Renta,Rents, S.L.U, investmantInvestment inIn assets, securitiassecurities andand financefinance compeniescompanies Unicas PromoctonasPromocionas Inmoblllarlas,inmobulariaa, S.L. Real estetaestate UniwrpUnicorp CorporaciónCorporacien Financiera,Financiers, S.L. PrestaciónPrestacion de serviclosservidos Unicorp Patrimonio,Patdmonle, Sociedad de Vaioraa,Valores, SAO. AzsetAsset managamenimanagement Unigest, S.G.1.1,C.,S.G,i.i.C., SAu. MielAsset nansgemantmanagement Urdmedlación,Unimedlaciort, S.LU.S.L.U. lnsinncaInsurance brokragebrokerage UnimeditenÉneoUnimeditemkneo dede Inversjmws,Inverslones, S.LS.L. investmentinveslmem Innana, assets, sevjluassecurities amiand Ñiarafinance ompanlescompanies UniwindetUaietndet PaqueParque EdlicoEólico Las Lomillas,Lomita,, S.L RenewableRenewabie ene,wenergy UnkvimietUniwindet PaqueParqua EólicoEdlico Loma deAy&a.de Ayala, S.L.S.L. RenewabiaRenewable energy UrflvAnd&Uniwindet PanlueParque EólicoEdlico LosLosJwalae, Jarales,S.L S.L RenewableRenewebie ermrpyenergy UnkvirwistUniwindet PamueParque EólicoEdlico Tres Was,Villas, S.LS.L. Renewable energyenery Uniwindet,Unh’Andet, S.L. RenewableRanewabte enarwenergy Urbasur ActuacionesActuacionesUrtanlsilcas, Urbanisticas,S.L. St. ReatReal estateesteta
2 In accordance with current legislation,legislation, thethe BoardBoard ofof DirectoraDirectorsof ofthe the ParentParent CornpanyCompany has prepared ffiethe Bank'sBanks individual annualannual accounts.accounts.The The effecteffect Qnon consolidationconsolidationon onthe theaccornpanylng accompanyingbalance balancesheet sheetst at 3131 December 2013 andand 2012,2012, thethe incometricorne statement,statement, thethe statementstatement ofof changeschanges InIn equityequity and theffie cashcash flowflow statementstatement for 2013 andand 2012 isis summarisedsummarised below:
Thousands of euros 2013 2012 Individualindividual ConsolidatadConsolidated IndivIdualIndividual Consolidated
Assets 41 796 027 41 242 921 41 278 164 4071440 714 264 EquityEqulty 22367382 236 738 20831592 083 159 21322742 132 274 20311042 031 104 Incomencomeforlheyear for the year 107017107 017 7171971 719 ( 531491)531 491) ( 577205)577 205) Total incomeIncome aridand expense In the statement of changeslnequitychanges in equity 104464104 464 102102641 641 ( 462889)462 889) ( 510560)510 560) Net Increase/(decrease)lncrease/(decrease) Inin cash and cash equivalentsequlvalents 1 413497413 497 1 429 197 ( 189 265) ( 189 612)
The Group'sGroups consolidated annual accounftaccounts forfor 20132013 and the annualannual accountsaccounts of mostrnost ofof itsita subsidiariessubsidiades amare pendlngpending approval by itaits respective GeneralGeneral AssemblyAssembly oror GeneralGeneral Meeting,Meeting. Nonetheless, methe Entity'sEntitys Board of DirectorsDirectora expecisexpects these annual accounts to be approvedapproved withoutwithout significantslgnificant changes.
Set out belowbelow isis aa summarysummary ofof theme ParentParent entity'sentitys individualindividual balancebalance sheet,sheet, IndividualIndividual incomeincome statement,statement individual statementstatement ofof changeschanges Inin equityequityand and individualindividualcash cashflow flowstatement statementfor forffie theyen yearsended ended31 31 DecemberDecember 2013 andand 20122012 whichwhich havehave beenben preparedprepared inin accordanceaccordance withwffli theme samesarne accountingaccounting principlesprincipIes andand measurement rnethods,methods,gathered gatheredIn inthe the CIrcularCircular4/2004 4/2004 ofof thethe Bank of Spain, as thosethose appliedapplied in thesemese consolidated annual accounts:
3 a) IndividualBalance Balancesheets sheets forforIhe the yearsyears endedended 31 December 2013 and 2012:
Thousands of euros 2013 2012
Cash and depositsdeposlffi atat central banks 11 913 155 518 419 TradingTradlng portfolioportfollo 282 514 117 975 Available-for-saleAvallable-for-sale financlalfinancialassets assets 2 446 549 2 578 661 Loans and receivables 29 839 261 28 354 547 fi To-maturityTo-matudty investment portfolioportfolio 4 239 667 86 322 382 Hedging derIvativasderivatives 543 745 758 990 Non-currentNon-cuaent assetsassets heldheid for sale 263 918 293 554 ShareholdingsShareholdlngs 715 734 781 031 Insurance contracts linkedllnked toto penslonspensions 132132 097 119 359 Property, plant and equipment 530 376 549 272 Intangible assetsassets 1 000 1 724 TaxassetsTax assets 822822988 988 815815287 287 Other assetsassets 65 023 66 963
Total assetsnieta 41 796 027 41 278 164
Trading portfolioportfolio 11 981 7 580 AnancialFinancial liabilitiesliabilWes atat amortizadamortized ctcost 38 636 801 38 092 046 HedgingdeñvatÑesHedging derivatives 2525157 157 156156461 461 ProvlsionsProvisions 358 599 350 488 TaxTez liabilitiesliabIlities 102102 358 109 143143 Welfare funds 424 393 430 172
Total liabilitiesllablIltIes 39 559 289 39 145 890
ValuatlonValuation adjustments 20 078 22 631 Equity: 22218660 216 660 22109843 109 643 ShareShere capitalcapital or assignedasalgned capitalcapItal 800 000 800 000 Share premiumpremium 1 762 616 1 762 616 Reserves ( 452452973) 973) 7878518 518 Other equlty irtwments Other equity Instruments ..- - lncomefortheyearIncome for the year 107107017 017 ( 531 491) Less: Diuidends and remunerati, - Less: Dividends and remuneration - -
TotalTotalequlty equity 22236738 236 738 22132274 132 274
Total liabilitiesllablilties and equityequlty 41 796 027 41 278 164
Contingent risksrlsks 886 839 1 088 665 Contingent commltmentscommitments 3 548 087 3 442 608
Total memorandum accountsaccounta 4 434 925926 4 531 273
4 b) Individual incomeincomestatemenft statementsfar forthe theyears yearsended ended31 31December December2013 2013 anóand 2012:2012:
Thousands of euros 2013 2012
Interest and similarsImilar Incomeincome 1 106 729 1 170 524 lnterestInterest expenseexpense and similar chargescharges ( 486 888) ( 556 155) F. Net lnterestInterest Incomeincome 619 841 614 369
RetumReturn mion equltyequity instwmentsinstruments 60 686586 59 075 Fee and commissioncommisslon Income 143 297 146 722 FasFee and commissioncommslon expenseexpense ( 19 625) ( 21 409) Gainsfllosses)Gains/(losses) onmi financial assets andand liabilitiesNabililles (net) 239 725 11 151 ExcbangeExchange dlffemncesdifferences (net) ( 237) 802 CtherOther operating Incomeincome 33 403 10 647 Other operating expenseexpense ( 38 432) ( 41 375)
GroasGross operallngoperating Income 1 038 558 779 982
AdmlnlstratlveAdministrativeexpenses expenses ( 333 528) ( 345 147) DepreclationDepreciation and amortizationamortlzatlon ( 25 524) ( 28 813) ProvislonsProvisions (net) ( 50 275) ( 45 246)248) U lmpairmentImpairment losseslosses Qnon financlalfinancialassets assets (net) ( 452 994) (1 045 754) Profit/(lose)ProtlUQoss) from operatlngoperating actlvitiesactivities 176 237 ( 684 980)
lmpalrmentImpairmentlosses losses onon otherother assetsassets (net) ( 55 969) ( 84 287) GalnslQosses)Gains/(losses) Qnon dlsposaldisposal ofof assetsassets not classlfledclassified asas non•currentnon-current assetsassets held for salesale 234 483 Negatlve Negative goodwill on onbusiness business comblnatlonscombinations - - GalnslQosses)Gains/(losses) on dlsposaldisposal of non-curTentnon-current assetsassets heldh&d for sale notnot classifiedclasstfled as discounteddlscounted operations ( 13 294) ( 21 568)
Profit/(lose)Proflt4loss) before taztax 107101 208 ( 790 372)
IncameIncome taxtax ( 191) 258 881 Mandatory transfertransfer to communltycommunity proJectsprojects andand welfare funds - -
Profit/(iose)ProfluOoss) fronfrom contlnulngcontinuing operatlonsoperations 107 017 ( 531 491)
U ProfiV(loss)Profit/(loss) fromfromdiscounted discounted operatlonsoperations (net) - - NetNetprofltfortheyear profit for the year 107107017 017 ( 531491)531 491)
5
Li
o)c) Individual statements of changes in equity brfor the years ended 31 December 2013 and 2012:
Thousands of eurosauras 2013 2012
ProfitProfltfortheyear for the year 107017107 017 (531491)(531 491)
OtberOther incomeIncome and expenses ( 2 553) 68 602
llame that wIII not be reclasslfled to Income Items that will not be reclassified to income ( 363) - Mtuarlal galns (boses) orn pension plano Actuarial gains (losses) on pension plans ( 519) - assets Non-currentNon-curmnl assets held brfor satosale - - Tax benefitobenefits mbatedrelated loto ltemsitems thaithat wiIlwill nolnot bemdassifledtoincome be reclassified to Income 156 -
ItameItems that may be reclaselfiedreclassified toto Income ( 2 190) 68 602 FinancialFinanclal assets avallabbeavailable for sale 13 188 73 943 Hedges ofcashflowsof cash flows ( 1717013) 013) ( 4 179)
Hedges of net in fomlgn - Hedges of net Investmentsinvesimento In foreign opaaUonsoperations - - Exchange differencesdiffemnces ( 32) ( 168) Non-currentNon-cunent assets heidheld brfor sale 729 ( 961)981)
EnHIles accounted uslng Ihe parlidpallon - Entitles accounted for using the participation meihodmethod - - Other income and expenses Other Income and expenses - - Income tax related tolo Itemsblems thaIthat may be reclassifledreclassified loto income 938 ( 13)
Total Incomoincome and expenses recognlzedrecognized 104 464464 (462 889)
d) Individual statement of changes In equity brfor thethe years ended 31 December 2013 and 2012:
Thousands of of.wo. turas EQUITY60017V eCapital! b,doaqwtEndowment 5anShare FrontPmm —for —the Dividends00v1d.”ds —and S,W,old.nShareholder; VfliValuation TOTAL ‘,dfund memium R.wvnSeamen 9year rfiala,s110TIMENISIMS .q.bequity adjustament ED,rTECOSTY
B.t.nesatSIofOecent.r2011Science at 34 of December 2011 500000000 000 1 712511792 816 - 100115100 515 (22000)(22 000) 25412 641 134194 (40551)(40 651) 26003532 600 263
AdIustIlenteAdjustments duedue (oto changoschanges intri auntngaccounting ------x(cypolicy - - - • - - - -
A4ssÜnonts nade (o 00fret orn - - - - Adjustments made to correct errors ------• - -
Ad)uetedAdjusted be2lmgngbeginning balance 6-00000600 000 17521111 762 616 - 100516100 518 (23000)(22 000) 21411342 641 134 (41501)(40 851) 32 BOO600 353263
ToW reconbsd ktoin. aM - - (511 Total recognized Income and .wennexpense - - - (531 491)491) - (( 531 411)491) 55ea 102602 (( 462443635) 999)
Oth.,equltyOther equity change.changes .- • IIla 61!510 (100000 519)51!) 32000 22 000 - ( 5120)512*) ( 5120)
Transton botween oqulty teim - - - Transfers between equity items - 7570 5143515 1( 7078 515)518) - - -
mo-sosos (decreases) by - Increases (decreases) by combinationscontLnatlons . _ - businesabusiness - . . DMdendsDividends dtetdbutonsldistributions/ PoymenlPayment - - - { 22 000000) 22 0000 1E1 - - - loto PertieraPartners (Note(Ne 3) -
Optmon& fransfr lo watfn funde - - - - Optional transfer to welfare funds ------• odiorlnceaseaOther increases (decreoses)(decreases) ------( 5120)5 120) {( 5 120)
Balance Itat 31 of December 20122012 500600 000 1 762762 511616 75516TB 516 (531 491)491) - 2 109 543643 22 531631 2 132 274 AdjuItnontsAdjustments duetodue to changoschanges in accountngaccounting - - - - • - *- potcypolicy - - -- -
Adjustments nade lo conecl oTrora - - - - Adjustments made in correct errors - • - • - - - AdjuslIdAdjusted be*Innlngbeginning balance 500800 000NO 17626111 712 610 7551679 516 (531(531 491)491) - 21061402 109 eta 2263122 631 2 132 ¡74274
Total raconl2ed bncome - - - Total recognized Income mrdand capeneeexpense ---- 107*1?107 017 - 10710701? 017 (( 22553)553) 104464104 464
OttinquftyctangnOther equity changes - • (531451)(631 491) 531451531 401 - - - -•
Trsnd&s betwew - - Transfers between equityoqrity)lent Items - (531 431)491) $31531 431491 —- - - -
Ircijaes (deaes) by o-RitffiItons - - - - - Increases (decreases) by combinations . . . - - bjrnbusiness - - . .
DIdfla sU1teJImOn,1 Paywenl - - - - - Dividends distributions/ Payment . -. -_ - toto Patinar,Partners (Note(Ne 3) - '
Qptfl ,SfbWe1fWefUrIdI - - - Optional transfer to welfare funds - - - - - • *• -
OWiflflfiflIWa) - - - Other increases {decreases) ------• - -- 1 762 BalinesBalance Itat 31 of DecentarDecember 2013 500000aoo ooe (452973)(452 973) 107 017011 - 2 216 650 20 071 818 - 2 216 600 20 079 32 236238 73’739
6 U li
e)e) IndividualIndividualcash cashflow flowstatemenls statementsfor forthe theyears yearsended ended 3131 DecemberDecember 20132013 andand 2012:2012:
ThousandsThousands ofof eurosauras 20132013 20122012
Cash flows from operaflngoperating acuvlUesactivities (( 823623 177) (( 171 958)958) NetprofitforllieyearNet profit for the year 107017107 017 (( 531491)531 491) MjustmentsAdjustments loto profilprofitand and Iossloss 176 991991 (( 211211 804) NetNet ncreas&deaea5eincrease/decrease Inin operaungoperatingassets assets (1(1 312 693)693) (2(2 209209 814)814) NetNet Increas&deaeaseincrease/decrease inIn operatingoperaUng liabilitiesliablIflies 420420 184 22 879879 218218 Goilectlons/PaymentsCollections/Payments of Incomeincome taxtax (( 14 676)676) (( 9698 067)067) Cash flows framfrom lnvestmentInvestment actlvitlesactivities 2 148146 449449 (( 2424 228)228) PaymentsPayments (( 7171 937)937) (( 7676 034)034) Collections 22 218218 386386 5151 806
Cash flows fromfrom flnanclngfinancing actlvitiesactivities (( 109 775) 66 921921 PaymentaPayments (( 109 775) (( 2222 000)000) ColiecdonsCollections - 2828 921921
Effect of oxchangeexchange ratarate fluctuaUonsfluctuations -- -
Net Increaseincrease (decrease)(decrease) Inin cashcash andand cnhcash equlvalentsequivalents 1 413413 497497 (( 189 265)265) -e CashCash and cash equivalentsequNalents atal beginningbeglnnlng of peñadperiod 518419518 419 707707 664684 CashCash and cash equivalentsequivalente atal end of periodparlad 1 931931 916916 518518 419419
1.1.2 SegregationSegregation ofof thethe financialfinancial husmeasbusiness
QnOn 2424 March 2011 Unicaja'sUnlcaja’s Board of Directors approved anan "Action“Action ProtocolProtacol for tethe Adaptation of Unicaja toto IndirectlyIndirectlycanying carryingout outfinancial financialactMties” activities"Subsequently, Subsequently,on on25 25June June2011 2011,te the SavlngsSavings Bank'sBank’s General AssemblyAssembly approved tethe aforementionedaforementioned indirectindirect carryingcanying out of financial activity byby UnicajaUnicaja ffiroughthrough aa Bank, whlchwhich ¡ais conceivedconceived asas an instrumentinstrument to betterbefler and moremore flexiblyflexibly adaptadapt to tethe currentcurmnt economic environment of newnew regulatoryregulatory requirements whflewhile allowing ititto tosimultaneously simultaneously maintainmaintainte the basicbasic Identitydentity of ofa a SavingsSavings Bank, sud,such as thete CommunityCommunity Projects Fund,Fund, thete associationassociafion withwit a certaincertain territoryterritory and mixmrx thethe business efficiencyefflciency objectiveobjective with socialsocial commitmentcommitment.
Once the relevantrelevant authorisationsauthoñsations were obtainedoblained and thete periodpeñad duringduring whichwhich creditors could objectobJect altarafter publishingpublishingthe the mlevantrelevant notices,notices, onon 1 December 2011 the publicpubllc document executing the incorporationincorporaUon ofof thethe BankBank waswas signed andand isla whollywhofly ownedowned byby UnicajaUnicaja inin orderorder toto IndirectlyIndirectly canycarry outmit financialfinanclal activities andand to whlchwhich thethe ¡nstitutionsinstitutionssegregates segregates itaIts financlalfinancialhusmees. business. TheThe SavlngsSavings Bank continues to exist and maintainsmalntamns ItsIta CommunltyCommunityProjects Projects FundFund (“Obra("ObraSocial Socialy y MonteMontede de Piedad”).Piedad"). TheThe mncorporationincorporationdocument documentwas was enteredentered intomb tethe Mercantile ReglstryRegistry onon 22 DecemberDecember 2011.2011. U InIn accordanceaccordance with tethe provisionsprovlsions of ArlicleArticle5 5 ofof RoyalRoyalDecree-Law Decree-Law 11/2010(911/2010 (9July), July),ante on the goveminggoverning bodiesbodies andand other aspects ofof thete legallegal systemsystem governinggoveming SavingsSavings BanksBanks andand ArticleArticle 16 bis ofof LawLaw 15/199915/1999 (15 December)December) onon SavingsSavings Banks inin Andalusia,Andalusia,their theirgoveming governingbodies bodiesand andoter otheraspects aspects ofof tethe legal system goveminggoverning Savings Banks, Unicaja transrredtransferred allalI of itaIts ascetaassets andand liabilitiesliabilities making upup itaIts financialfinancialbusineas business toto thethe newly Incoporatedincorporatedbank bank whichwhichacquired acquiredthem themthrough throughuniversal universalsuccesslon, succession,based based onon thethe content of Piethe Segregation Project approved by thethe Savings Bank'sBank’s govemlnggoverning bodles.bodies.
TheThe Bank commencedcommenced operations tethe day followlngfollowingthe thedate date ononwhich whichdesegregation desegregationdocument documentwas was executed,executed, le.i.e. onon 2 December 2011, andand thlsthis does not represent any change inin thethe productsproducta and servicescervices offeredofred to customers,customers, or theirIheir contractual relationship with thethe entity,entity, oror tethe employmentemployment conditionsconditions ofofemployees. employees.
7 The segregation involved the the financialfinancialDuslness businesscariled carriedout outby by Unicaja,Unicaja,considered consideredto tobe be thethe main and secondary group ofof assets andand liabilitiesllabilwes that makemake upup thatthat financialfinancial business,buslness, whichwhich constituteconstitute aa financialfinancial unitunft with thethe exception of the following:following:
(i)(1) The asaeteassets andand liabilitiesliabilities associated withwith Unicaja'sUnicaja’s “Monte"Monte dede Piedad”Piedad" (“savings("savings bankbank securedsecured loan portfolio”).portfolio"). (ü)(ii) The assets andand liabilitiesliabilities associated withwith Unicaja'sUnicaja’s CommunityCommunfty PmjectProject and Cultural Fund. (ifl)(iii) The interest held in methe basketball team "Club“Club Baloncesto Malaga,Málaga, S.A.D."SAD.” (iv) Trademarks, brand names andand otherother distinctivedistinctive symbols. (y)(v) TheThe items classified by methe Savings Bank as theme artisticartistic patrimonypatrimony of Unicaja. (vi) Sufficient cash cash to aftendattend to theme liquidityliquldity needsneeds of Unicaja. (vii)(vii) TheThe assets andand liabilitieshabilities that, duñngduring thethe time elapsed untiluntil methe registration ofof methe Segregation may havehave been acquiredacqulred by Unicaja asas compensation or as a replacement of the aforementioned items.
The asset andand liabilityliabllity isIs excluded from thethe calculation ofof methe Segregated EquityEqulty areare characterizedcharactedred by not belngbeing associated withwith financial actjvitles,activities, butbut ratherrather are of a benefit-foundationbenefit-foundation type, sponsorshlpsponsorship or similarsimilar activities.
ForFor thethe purposes ofof thethe provisionsprovisions ofof ArticleArticle 36.1 andand 73.173.1 ofof LawLaw 3/20093/2009(3 (3 April)AprA) on StructuralStructural ModificationsModifications ofof Mercantile Companies Companies(herelnafter (hereinafterSMMC), SMMC),desegregation desegregationbalance balancesheet sheetwas was consideradconsidered toto be Unicaja'sUnicaja’s individualIndividualbalance balancesheet sheetat at 3131 December 20102010 includedIncludedin Inthe the annualannual accounteaccounts forfor 20102010 preparedprepared byby the BoardBoard of DirectoraDirectors of methe Institution onon 2424 MarchMarch 2011.2011.
InIn additlon,addition,me the transactiontransaction isis subject to the system establishedestablished byby ArticleArUcle 49 ofof theme SMMC,SMMC, which isis applicableapplicable toto methe general spln-offspin-off systemssystems throughthrough methe misslonmission toto anUdearticle73 73of ofme theSMMC SMMCand, and,as asa aconsequence, consequence, aa report on the segregationsegnegabon project is not required. Since theme transfertransffir of theme SegregatedSegregated EquityEqufty constitutes,constitutes, from methe pointpoint ofof viewviewof ofUnicaja, Unicaja,a anon-monetary non-monetarycontribution contributionserving servingas asme theshara share capitalcapital ofof UnicajaUnicaja BancoBanco atat methe time of Incorporation,incorporation,me thevalue value hashas beenbeen verifiedvehfled byby enan independent expert designated byby theme MercantileMercantile RegistryReglstry forthefor the purposes ofof Article 6767 ofofthe the SpanishSpanish Companies ActAct2OlD. 2010.
lnIn compliancecompliance withwiththe the provisionsprovisionsof ofRoyal RoyalDecree Decree 1159/20101159/2010(17 (17 September)September) whichwhichapproves approves thethe Rules for PrepadngPreparing ConsolidatedConsolidatedAnnual AnnualAccounts Accountsand and amendsamends ifiethe General AccountingAccounting Plan approved by RoyalRoyal Decree 1514/2007 (16 November) andand the General AccountingAccounting PlanPlan for SMEs approved by Royal Decree 1515/2007(161515/2007 (16 November), the thedate date ofofme theSegregation Segregationfon foraccounting accountingpurposes purposeswas wasestablished establishedas as 11 JanuaryJanuary 2011,2011, which isIs understoodunderstood toto bebe thethe date as fromfrom whlchwhich allall ofof Unlcaja’sUnicaja'stransactions transactions relatingrelatingto tothe theSegregated Segregated EquityEquityare are recordedrecorded by Unicaja Banco.Banco.
Unicaja Banco,Banco, SA.S.A. -- Sociedad Unipersonal waswas incorporatedIncorporatedwith witha a shareshare capital of €800000€800,000 mousand,thousand, cvnsistingconsisting ofof 800800 mllllonmillionahajes shareswith witha apar par valuevalue ofof 11 euroeuro each, fullyftilly subscñbedsubscribed andand paid in by Monte dede PiedadPledad y Caja de AhorrosAhorros de Ronda,Ronda, Cadiz,Cádiz, Almeria,Almería, Malaga,Málaga, Antequera y JaénJaen throughthrough theme contributioncontnibubon of methe Segregated Equity,Equity, as wellwell as aa shareshare premiumpremium totallingtotalling €1762616€1,762,616 ffiousand,thousand, which has also been fullyMly paidpaid in throughthrough methe contñbufioncontributionof ofthe theSegregated Segregated Equity.
lnIn compliancecompliance withwith RecognitionRecognitionand and MeasurementMeasurement RuleRule 2121 of the GeneralGeneral AccountingAccounting Plan (GAP),(GAP), with thethe amendments introducedintroduced by Royal Preview 1159/2010, whichwhich approvesapproves thethe Rules for PreparingPrepañng Consolidated Annual AccountsAccounts(RPCM), (RPCAA),the theitems itemsmaklng makingup upthe theSegregated SegregatedEquity Equityhave havebeen beenmeasured measured atat thethe amount recognizedrecognizedin in methe Group'sGroups or subsub group'sgroup’s consolidatedconsolidated annualannual accountsaccounts inin accordanceaccordance with the aforementionedaforementioned RPCAA, aftertheafter the transactlon.transaction.
8 The segregation transactiontransaction appliedapplied theffie specialspecial taxtax systemsystem describeddescribed in inTitleTale VII,VII, ChapterChapter VIIIVIII andand AdditionalAdditional Provision TwoTwoof ofthe the CorporateCorporate Income TaxAct,Tax Act, approvedapproved by Legislative-Royal. 4/2004(54/2004 (5 March) (hereinafler(hereinafter thethe CITA),regarding regardingme thespeclal special systemsystem forfor mergersmergers spin-offs,spin-offs,contdbutions contributionsof ofasseft assetsand and shareshare swaps.swaps. InIn accordance with the aboye,above, UnicajaUnicaja informed methe Tax AuthoritiesAuthoritieson on 1313 JanuaryJanuary 20122012 itsits choicechoice toto apply thethe taxtax neutrality systemsystem withlnwithinthe thedeadline deadlineestablished established byby regulationsregulations afterafter registeñngregisteringme the segregationsegregation documentdocument with fuethe Mercantile Registry,Registry, InInaccordance accordance with currentcurrent taztax leglslation.legislation.
PorFor methe purposespurposes ofof ArticleArticIe 93.1 ofof theme CorporateCorporate IncomeIncome TaxTax ActAtt (hereinafter(hereinafter CITA)CITA) asas theme accountingaccounting reportingreporting obligationsobligationswhen when consideñngconsidering andand applyingapplying methe Special Tax System regulatedregulated byby TitleTale VII, ChapterChapter VIII of ofme theCITA, CITA,mese thesenotes noteslo tofue theannual annualaccounts accountspmvide providedetails detailsof ofme thesegregated segregated propertiesproperties ffiatthat maymay bebe depreciated grouped togethertogether byby yearyear (Appendix(Appendix IV) andand thethe Iatestlatest closed balance sheetsheet forbr UnicajaUnicaja (Appendix(Appendix y).V). ThereThere areare no assetsassets thatthat havehaya beenbeen includedincluded inin the accountingaccounting records at aa valuevalue otherofuer than that atal whichwhich theythey were recognized in the transferringtransrring entity'sentitys accounts prior to the transaction. The restmst ofof thethe informationinformation requiredrequired byby thatthat ArticleArticleis isnot notapplicable applicablelo tothe theBank Bankand andmerefore thereforehas has notnotbeen been includedIncludedIn inthese these notesnotes toto thethe annual accounts.
InIn addition,addition, methe transactiontransaction isis not subjectsubject to value added taxtax inin accordanceaccordance withwfth thethe provisionsprovislons ofof ArticleArticle 7 of LotLot 37/137/1992992 (28(28 December)December) onon Value AddedAdded Tax,Tax, oror TransferTransfer TaxTax andand Stamp DutyDuty applicable to Corporate Operations in accordance withwith Article 19.2 and 15.I.B)15.l.B) 10 ofof methe Law onon TransferTransfer TaxTax andand Stamp Duty.
1.1.3 RestructuringRestructuñng ofof the management of real estate assetsasseft atst UnicajaUnicaja Group.
On 31 QctoberOctober 2012 Law 8/20128/2012 (30(30 October)October) onon thethe wñte-downwrite-downand andsale sale ofofreal realestate estate assets inin the financialfinancial sector (hereinafter(hereinaifer Law B/2012)5/2012) waswas published and it stipulates that creditcredit institutionsinsfltutions mustmust contribute toto aa publlcpublic limitedlimitedliability liabilitycompany, company,in Inthe thetemis termsestablished establishedin inChapter ChapterII, II,all allforeclosed foreclosedassets assets oror mosethose receivedrecelved inin lieulieu ofof paymentpayment asas referred to by ArticleAnide 1.1.1.1. ofof RoyalRoyal Decree-LawDecree-Law2/2012(3 2/2012 (3 February)February) i.e.i.e. mosethose relating toto realreal estateestate developments and real estate constructionconstwctlan or developments.
InIn general,general, methe contñbutionscontributionsto tothe the assetasset management companycompany willwilI bebe recognizedrecognized at fairfair valuevalue andand mustmust havehave habhad been completedcompleted at 3131 DecemberDecember 2012.2012. InIn theme absenceabsence ofof aa fairfair valuevalue oror whenwhen itit isis difficultdifficult to obtain misthis value, theyffiey will bebe recognized atst theirmeir carryingcanying value, whichwhich will bebe calculated taking into consideration the provisions createdcreated for the assets inin accordanceaccordance withwim ArticleArticle 1.1.1.1. ofof RoyalRoyal Decree-Law 212012212012(3 (3 Febmary)February) and Article 1.11.1of of RoyalRoyalDecree-Law Decree-Law18/2012 18/2012(11 (11May). May).In Inthe theevent eventthat thatat at methe timetime theythey areare conffibutedcontributed tometo the Company fuethe assetsassets havehave notnot beenbeen coveredcovered byby thefue provisionsprovisions mentionedmentioned in methe preceding paragraph, methe provisions musi must bebe created by thefue companycompany benefitingbenefibng from fuethe contributioncontnibution bu) by fuethe dates requiredrequired inin accordance wimwith bothboth RoyalRoyal Decrees.Decrees. PorFor thethe purposes of thethe provisionsprovislons of Article 6767 of the SpanishSpanlsh CompanlesCompanies Act 2010,2010, thethe measurementmeasurement established inin accordance withwim theme preceding paragraphs willwlll replacereplace thethe measurementmeasurement carfiedcarried out by anan independentindependent expertexpert calledcalled forfor byby thatfiat legislation,legislation, provided thatthat the contribution takestakes place within methe provislonprovision scheduleschedule loto which the contributingcontñbuting entity isis bound.bound.
In compliance withwiththe the provisionsprovisions ofof LawLaw 8/2012,8/2012, UnicajaUnicajaBanco, Banco,S.A.U. S.A.U.has has decideddecided toto restructure the managementmanagement ofof jisits realreal asisteestate assets, concentratingconcentraling fuethe management of lisits foreclosed assetsassets owned by UnlcajaUnicaja Banco,Banco, S.A.U.S.A.U.and and otherother companiescompanies pertaining toto Unicaja GroupGroup inin lsits investeeinvestee companycompany GestiónGestion dede Inmuebles Adquiridos,Adqulridos,S.L.U. S.L.U.through throughseveral several transactionstransactions ofof vañousvarious types. WithinWahin methe framework ofof this restructuñngrestructuringand and Inin accordanceaccordance withwithfue the provisionsof of LawLaw8/2012, 8/2012,fue the sharesshares inIn GestionGestión de InmueblesInmuebles Adquiridos, S.L.U. S.L.U.were weresubsequently subsequentlytransferred transferredto toan an assetasset management companycompany calledcailed UnicajaUnicaja GestionGestión de Activos Inmobiliarios,Inmobiliarios,S.A.U., S.A.U.,created createdlar formis thispurpose purposeon on26 25 DecantenDecember 2012.
9 TheThe tax system established in TilleTitle VII, Chapter VIII of LegislativeLegislative Royal Decree 4/2004 (5 March), which approvedapproved thethe Corporate Income TaxTax Act,Act, brfor thethe transactlonstransactions menfionedmentioned inin ArticleArticle 8383 ofof thatthat Law, including thethe effecteffect Qnon other taxes, willwill be applledapplied to methe transfers of real estate assets pertaining toto the financial sector oveneven iftheyif they do not relate to the transactions mentioned in Article 83 and 94 of thatmat Law.Law. Accordingly, GestiOnGestión dede Inmuebles Adquiridos,Adquiridos, S.L.U.S.L.U. -as-as methe buyerbuyer ofof thethe assets- reported toto thethe TaxTax Authorities on 27 February 20132013 ofof its choicechoice toto applyapply thethe taxtax neutralityneutrality systemsystem withinwithin thethe deadlinedeadline establishedestablished byby regulations.regulations.
InIn 2013, ffiethe BankBank continuedcontinued to segregatesegregate assets acquired through debt recovery processes, in compliancecompllance withwith Law 8/2012, transferñngtransferring the assetsasseft to theme investeeinvestee GestiOnGestión dede Inmuebles Adquiridos,Adquiridos, S.L.U., whichwhich lsis whollywholly ownedowned by Unicaja GestiónGestiOn dedeActivos Activos Inmobiliarios,Inmobiliarios, SA.U.S.A.U. (Note(Note 15.a)15.a)
1.2 AcquiswonAcquisition processprocess ofof Banco dede CajaCaja EspañaEspana dede Inversiones, SalamancaSalamanca yy Soda,Soria, SAS.A. L.; On 15 JuIyJuly 2013, methe Board of Directors of Unicaja Banco, SA.S.A. agreed to initiate the necessary formalities toto submitsubmit anan QiferOffer to the shareholders and holders of necessarily and contingently convertible bonds of Banco dede Caja EspanaEspaña de inversiones,Inversiones, Salamanca yy Soria, S.A.SA. ("BancoÇ’Banco CEISS").CEISSh). Subsequently, the the BoardBoard ofof DlrectorsDirectors of Unicaja Banco Con(on 5 October 2013) and the General Shareholders’Shareholders' Meeting ofof Unicaja Banco Con(on 11 October 2013) approved anan Offer to exchange the shares and convertibleconvertible securWessecurities of Banco CEISS resultingresulting fromfrom thethe actionaction forfor thethe management ofof hybridhybrid instrumentsInstruments resolvedresolvedby by tilothe FRQBFROB inin itsits wlingsrulings ofof 16 May andand 15 JulyJuly 2013.2013.
InIn relationrelation toto thisIbis Offer,Qifer, onon 1111 OctoberOclober 20132013 UnicajaUnlcaja Banco'sBancos GeneralGeneral MeetingMeeting adoptedadopted theIbe followingfoilowing resolutions,resolutions, subjectsubject tomato the termsterms andand conditionsconditions describeddescribed inin methe relevantrelevant factfact publishedpublished onon thatthat samesame date:date:
oo lncreaseincrease methe Bank’sBank's shareshare capital, estimatingestimating anan Incompleteincomplete subscdption,subscription, inin thethe amountamount ofof €€ 86,258 thousand,thousand, throughthrough methe issueissue ofof 86,258,48686,258,486 ordinaryordinary registeredregistered sharesshares wimwith aa parpar valuevalue oneone euroeuro eacheach andand a unit share premium of 0.18827 euros per share (total share premium of € 16,24016,240 thousand),mousand), entailingentailing a maximum capital increase of€of E 102498102,498 thousandthousand (inciuding(including shareshare premiun).premium).
o• Issue bonds necessarily andand contingently convertible IntoInto newnew sharesshares inin Unicaja Banco, estimating anan incomplete subscdption,subscription, terfor aa maximum amountamount ofof €€ 115,754 thousand, Inin accordance withwith the termsterms andand conditions, andand subjectsubject toto thethe conversation regulationsregulations andand typestypes statedstated inin thethe relevant factfact publishedpublished byby Unicaja Banco.
oo Issue perpetual bonds contingently convertibleconvertibleinto into newnew sharesshares Inin Unicaja Banco, estimating an incompletoincomplete subscription,subscription, brfor aa maximummaximum amountamount ofof €E 1151754115,754 thousand,thousand, inin accordanceaccordance withwith thethe temisterms andand conditions, andand subjectsubject loto Ibethe conversation regulationsregulationsand andtypes types statedstated inin Ibathe relevant fact published by Unicaja Banco.
TheThe Prospectus brfor theme OfferQifer toto exchangeexchange shares,shares, necessarilynecessadly andand contingentlycontingentiy convertible bonds and contngentlycontingentlyconvertible convertibleperpetual perpetualbonds bondsof ofUnicaja UnicajaBanco, Banco,to tobe be subscribedsubscribedby by holdersholders ofof shares and U necessañlynecessarily andand contingentlycontingently convertibleconvertiblebonds bondsof of BancoBanco CEISS,CEISS, waswas autbodzedauthorized byby methe Spanish National SecuritiesSecurities MarketMarket CommisslonCommission (CNMV)(CNMV) oiton 2626 NovemberNovember 2013;2013; anan addendumaddendum waswas subsequentiysubsequently authodzedauthorized enon 3030 December 2013.2013,
AccordingAccording toto thethe temisterms of theIbe Prospectus,Prospectus, methe exchange Offer was made conditional onon acceptance byby at least:least: (i)(i) 75%75% ofof methe sharesshares inin Banco CEISSCEISS (the(the Minimum'Minimum Share Acceptance Condition9;Condition"); andand (b)(b) 75%75% ofof thethe sumsum ofof thethe shares in Banco CEISS and methe necessarilynecessañly and contingently convertible bondsbonds of Banco CEISS targetedtargeted (the(the Mlnimum"Minimum TotalTotal Securities AcceptanceAcceptance Condition”),Condition"), UnicajaUnicaja BancoBanco reservingreserving thethe possibilitypossibility ofof waivingwaiving fulfllmentfulfilment ofof thethe MinlmumMinimum TotalTotal SecuritiesSecurities AcceptanceAcceptance Condition.Condition.
10 Li U U
U it OnceOnce thethe Offer acceptanceacceptance pedodperiod hadhad elapsed,elapsed, on 20 January 2014, the OfferOffer was accepted by holders of 334,384,366334,384,366 sharesshares in BancoBanco CEISSCEISS andand 339,673,152339673,152 necessarilynecessadly andand contingentlycontingently convertible bondsbonds of BancoBanco CEISS,CEISS. Accordingly, en on20 20 January,January, in viewview ofofthe the result:result (i) theme MinimumMinimum ShareShare Acceptance Condition waswas fulfilled, acceptance acceptance amountingamountingto to99.16% 99.16%of ofthe the sharesshares in Banco CEISS (including 18,35605618,356,056shares shares ownedowned directly andand indirectlyindirecUy byby UnicajaUnicaja Banco);Banco); (u)(ii)the the MinimumMinimumTotal TotalSecuñties SecuritiesAcceptance Acceptance Condition waswas E, notfulfihled, acceptance totalling and and not fulfilled, acceptance totalling60.66% 60.66%of ofme thesum sumof offfie theshares shares and necessadlynecessarily and contingentlyconüngently convertible bondsbonds of Banco CEISS (including18356,055 18,356,056shares shares andand 7,543,033 bondsbonds owned by Unicaja Banco and excludlngexcluding 5396,0345,396,034 bondsbonds owned by Banco CEISS itself).itaelü.
U Addwonally, in connection wim me exchange Offer, Unicaja Banco received a lefter from the FROB statng (i) Additionally, in connection with the exchange Offer, Unicaja Banco received a letter from the FROB stating (i) thatthat ltsits GovemingGoverning BoardBoard hashas agreedagreed on the basicbasic aspectsaspects ofof thethe modificationmodification ofof theme BancoBanco CEISSCEISS resolutionresolution planplan and,and, consequently, of thethe TermTerm SheetSheet attached toto the EuropeanEuropean Commission'sCommisslon’s decisiondecision of 1313 May 2013; andand (U)(ii) thatthat itit lntendsIntendsto tosubmit submitthis thischange change teto thethe BankBank ofof SpainSpain andand the European Commission for approval. TheThe letterleller was accompaniedaccompanled byby thethe notificationnotification recelvedreceived by theme FROBEROS from the EuropeanEuropean Commission'sCommlssion’s DirectorateDirectorate GeneralGeneral for CompetitionCompetition lndlcatingindicatingthat, that,almough althoughthe thelinal finaldecision decisionmust mustbe be takentaken byby thethe College of Commissloners,Commissioners,the the plannedplanned modification to tothe the BancoBanco CEISS resolution planplan is compatible withwith thethe EU’sEU's statestate aid rules,rules, basedbasad onQn itsIta preliminarypmliminary analysis. Unicaja Banco hashas received a letterleifer from thethe Bank of Spain Li informingInformingit itmat thatthe theBank Bankof ofSpain’s Spain'sExecufive ExecutiveCommiftee Committeehas hasaccepted accepted thethe modificatons,modifications, forforme the purposespurposes of ffielrtheir inclusioninclusionin inthe the modihcationsmodificationsto toffie the BancoBanco CEISSCEISS resoluflonresolutionplan planmat thatffie the FROB willwillbe be askedasked to approve.approve.
AddWonally,Additionally,on on29 29January January2014, 2014,Banco BancoCEISS CEISSaccepted, accepted,by bymeans meansof ofa a mlevantrelevantfact, fact,me thebasic basic aspectaaspects of thethe modifications to toits itsresolution resolutionplan. plan.Moreover, Moreover,as asBanco BancoCEISS CEISSstates states inin itaits relevantrelevant fact,fact, twotwoagreementa agreements supplemenüngsupplementingIhe the TermTerm SheetSheet are to bebe adopted:adopted: (€)(i) between Banco CEISS and SAREB,SAREB, toto establishestablish thethe adjustmentsadjustments derivedderivedfrom fromthe the agreementagreement forfor methe transfertransfer ofof assets betweenbetween SAREBSAREB and BancoBanco CEISS,CEISS, U concludedconcluded onon 28 February 2013; and (ii)(ji) betweenbetween Banco CEISS and FROB, to regulate an Offset Mechanism Inin connectionconnection withwithme the securitiessecurities ofof BancoBanco CEISSCEISS thatthat thethe FROB willwillacquire acquireas as aa result of claims from thethe holdersholders ofof necessarilynecessarily and contingently convertible bondsbonds of Banco CEISS in respect of which the OfferQifer laIs not accepted.accepted. U InIn accordanceaccordance with methe above-mentioned communications andand relevant fact, methe modificationmodification ofof methe Banco CEISSCEISS resolution planplan andand musthus of methe Term Sheet wouldwould be formalizedformalized in accordance withwith the followingfollowing basicbasic aspecta:aspects: U a)a) DistñbutionDistributionbetween betweeniba theEROS FROBand and BancoBanco CEISSCEISS ofof anyany negative effects of claimclaim proceedings instigatedinstigated byby holders ofof necessarily and contingentlycontingentiy convertibleconvertible bondsbonds ofof BancoBanco CEISS whowho dodo not accept the Offer, suchsuch that the FROBFRQB will absorb absorb 71%71% ofof suchsuch impactsimpacts upup toto a maximum ofof €€ 319 millionmillion(€ (€241 241 millionmillionnet netof ofthe the compensation that that thethe FROB maymay receive under the OffsetOffset Mechanism,Mechanism, asas defined below), BancoBanco CEISSCEISS assumingassuming the remainingremalning 29%.
b)b) Acceptance of certain commitments and restrictionsrestrictions in connection with the futurefuturo activities ofof Banco CEISSCEISS whichwhich nodifymodifyIba theones ones Initiallyinitiallyenvisaged envisagedin iniba the TermTerm Sheet,Sheet, consisting basicallybaslcally otof: (1)(i) ihethe maximummaximumvoluma volumeof ofiba the loanloan perifolloportfoliois isreduced reduced byby aa ftrtherfurther 10%; (U)(ii) ibethe maximummaximumsize size ofof mathe balancebalance sheet isis reducedreduced byby anan additionaladditional 15%;15%; (iii)(iü) thethe targettarget ratio of loansloans to deposits Isis 10% lower manthan Initiallylnitially envisaged envisaged ininBanco Banco CEISS’CEISS' mainmain businessbusiness regions; (iv)(iv) methe organisational restructuringrestructudng willwillindude includeme theclosure closure ofof anan additonaladditional 5%5% ofof itaits offlcesoffices andand methe woddorceworkforce reductionreduction plannedplanned toto 31 DecemberDecember 20142014 isis maintained, althoughalthoughIbere there willwillbe be aa further reductionreductionof of 5%5% byby 3131 December 2016.2016. Additional restrictions restrictionsare are imposedImposed onon thethe distribution ofof dividendsdividends byby BancoBanco CEISSCEISS dudngduring thethe resolutionresolution period.period.
11 Moreover, as as declaraddeclared in BancoBanco CEISS'CEISS relevant fact and inin theffie communicationscommunications received, the twotwo agreemenisagreements referred to aboyeabove areare expected to be adoptad:adopted:
a) A basic agreement, yet toto becomebecome definitive,definitive, between the FROBFROB and BancoBanco CEISSCEISS inin connectionconnection with thethe secudtlessecurities of Banco CEISSCEISS thatthat thethe FROB laIs toto acquire as aa resultresult ofof thethe claimclaim thatthai itit willwlll assume underunder paragraphpamgraph (a)(a) aboveaboye (the(the "Offset‘Offset Mechanism"),Mechanism”), wherebywhereby thethe FROBFROB willwill receive,roceive, inIn exchange for thethe securities, an amount not lower thanthan thethe valuevalue ofofthe the securitiessecurities asas appraisedappraised by thethe consultant ONverOliverWyman, Wyman,which whichconcluded concludedthat that100% 100%of ofBanco Banco0H55 CEISShad hadan an equityequityvalue valueof of€ f 334334 million.million.lfthe If themaximum maximumoutlay outlaystated statedin inparagraph paragraph a)a) aboyeabove (€319(€ 319 million)mUllan) isis reached,reached, the maximum amount receivable byby FROBFROB willwilI bebe € 78 million,million, withoutwithout anyany obligationobligationfor forBanco Banco CEISSCEISS toto acquireacquire thethe securities inin question prior toto 1 January 2018.2018, The agreementagreement stipulatesstipulates thatthai thethe FROBFROB willwill not in any circumstances become a shareholdershareholder ofof UnicajaUnicaja Banco as a resultmsult of misthis mechanism.
b) The transactonaltransactional seWementsettlement agreement loto be concludedconcluded byby BancoBanco CEISSCEISS and SAREBSAREB to establish thethe adjustmenftadjustments deriveddehved from methe assetasset transfer agreement betweenbetween SAREBSAREB and Banco CEISS of 2828 FebwaryFebruary 20132013 (referred toto in thethe "Risk“Risk Factors"Factors” sectionsachan ofof theffie RegistrationRegistration Document).Document). The conclusion ofofffiis this transactionaltransactionalagreement, agreement, asas indicatedIndicated by Banco CEISS in itaits relevant factfact of 29 U of 29 JanuaryJanuary 2014, willnot notin inany anyevent eventmean mean thatthat methe amount chargedcharged loto Banco CEISSCEISS representarepresents aa significant departure departurefrom fromme thefigures figurescontained containedin inffie theTerm TermSheet Sheet aflachedattached toto theffie EuropeanEuropean Commission’sCommission's decision ofof 1313 MayMay 2013 ("State(“State AidAid SA36249 (2013/N)").(2013!N)).
The basic agreements andand proposalsproposals referredreferred tolo aboveaboye aream subjectsubject toto ratificationratification andand definitivedefinitive fomialisationformalisation by Banco 0H55,CEISS, FROB, BankBank ofof SpainSpain andand SAREB, asas well asas definitivedefinitivo approvalapprovalby bythe the SpanishSpanish and EUEl) authoritles.authorities.
On the basis ofof thesethese agreements,agreements, andand inin viewview ofof UnicajaUnicaja Banco'sBancos Interestlnterest inin completingcompleting the acquisitionacqulsition of Banco CEISS,CEISS, UnicajaUnicajaBanco Bancoundertakes, undertakes,as as statedstated Inin thethe relevant factfact ofof 2929 January 2014, loto waive the MlnlmumMinimumTotal TotalSecurities SecuritiesAcceptance AcceptanceCondition Conditiononce onceah allthe thenecessary necessary authorizationsauthorizationshave have beenbeen obtained,obtalned, includlngincludingdefinitivo definitiveapproval approvalby byBanco Banco0H55, CEISS, FROB,FROB,Bank Bankof of SpainSpain andand SAREB of the above-mentioned agreements andand proposalspmposals inin thetlie termstemis explained,explained, andanti EUEU authorization,authodzation, where appllcable.applicable.
InIn thethe relevantrelevant factfact ofof 2929 JanuaryJanuary 2014,2014, Unicaja BancoBancodeclared declared matthat, alsoalso inin thethe eventevent of acceptanceacceptance below 75% of thethe Total Securities, methe modification of ofme theResolution ResolutionPlan Planand andof offfie theTerm TermSheet, Sheet, andand dispensatondispensation fromfrom compliance withwith thethe MinimumTotal TotalSecurities SecuritiesAcceptance AcceptanceCondWon, Condition,the thepurpose purposestated stated inIn the Prospectus, i.e.e. notnot tolo requestrequest theme exemptionexempton fromfrom fulfilmentftilfilment ofofme the capitalcapital adequacyadequacy ratoratio by Banco CEISS on an individual basis,basis, is maintained.
Accordingly, the the followtngfollowingsteps stepswere wereagmed agreed to complete methe Offer:Qifer.
a) Registration atat thethe CNMVof ofan anAddendum Addendumto toffie the OfferOfferProspectus Prospectus andand openingopening ofof aa pehodperiod of threethree buslnessbusiness days inIn which new Offer acceptanceacceptance orders may be submitted, as wellwell as ordersorders revokingrevoking U thethe acceptance orders already received.recelved.
b) When methe above-mentioned agreementsagreements andand proposals are approved and formalizedformalized in thethe temisterms explained, Unicaja Banco willwiIl waivewaive ihethe Minimum Total TotalSecurities Securities AcceptanceAcceptance Condition,Condition.
c) lf,If, byby 3131 MarchMarch 2014,2014, suchsuch approval has notnot beenbeen obtained,obtained, UnicajaUnicaja BancoBanco willwill waive dispensatondispensation forfor thethe MinimumMlnlmum Total TotalSecurities Securities AcceptanceAcceptance Condition andand the Offer will bebe automaticallyautomatically renderedrendered ineifective.ineffective.
12 The Prospectus AddendumAddendum waswas approvedapproved andand registeredregistered byby thethe CNMVCNMV onon 30 January 2014, ffiethe pedodperiod for submitting new QiferOffer acceptance orders and revoklngrevoking acceptance orders already received being 31 January, 3 February and 44 February 2014.
AsAs indicated in ffiethe relevant fact of 29 January 2014, Unicaja Banco undertakes to announce toto methe rnarketmarket, at thethe earliest opportunity andand asas soonsoon as itit becornesbecomes awareaware ofof it,it, any decision thatthat may be takentaken by thethe Spanish or EVEU authorftesauthorities in relationretallan to methe rnattersmatters described.
At methe preparation date of mesethese 2013 consolidated annual accounts, methe conditions precedent defined frsfor methe purposes ofof methe integrationintegrallon wimwith Banco CEISS have not benbeen fulfilledfalifiled and no formalformal notificationnotificallon has been received frornfrom thethe competent aumaritiesauthorities in relation toto misthis process. U 1.3 Basis of presentation of methe consolidated annual accounts fleThe Group'sGroup’s ConsolidatedConsolidated annual accaunisaccounts areare presented in accordanceaccordance with thatthat establishedestablished underunder
International Financial Reporting Standards adaptedadapted by thethe EuropeanEuropean UnionUnlon (hereinafter,(hereinafter, "IFRS“IFRS —— EU"),EU), beañngbearing in mindmmd Circular 4/2004 ofof ffiethe Bank of Spain,Spain, ofof 2222 December,December, whichwhich isma theme developmentdevelopment and H adaptation to the Spanish credit entity sector of the Internationalinternational Financial Reporting Standards approved by thethe European Unlon,Union, and its subsequentsubsequent amendments.
In this report the abbreviations IASh"IAS" and "IFRS"lFRS are ernployedemployed toto refer to InternationalInternational Accounting Standards and toto internationalInternational Financial RaportingReporting Standards, respectlvely,respectively, and methe abbreviations 1CIFRS’"ICIFRS" and "CAS",CAS, tato refer interpretations of theme Interpretationslnterpretations CommitteeCommiftee on International Financial Reporting Standards andand methe formerformer Interpretationslnterpretations CommitteeCommitteerespectively, respectively,ah allof of ffiesethese havinghaving beenbeen approved by methe EuropeanEuropean Union (hereinafter, MEU’),"EU"), isis methe basicbasis on whichwhich mesethese consolidated annualannual accounftaccounts werewere prepared.
The present consolidated annual accounftaccounts wemwere preparedprepared appiyingapplying methe totaltotal of methe accounting principiesprinciples and normanorms and ffiethe valuation principiesprinciples of abligatoryobligatory application matthat have a significant effect on these,these, so thatthat they refiectreflect thethe true imageirnage of methe equity and of thethe financial situabonsituation of methe Group as at 31 December 2013 and thethe results of operations, changes Inin net equityequity and cash flowsflows matthat have arisen inin thethe Group in thethe financial year ended on matthat date,date.
Note 2 summarisessummarises methe principlesprincipIes and policespohices and the mostrnost significantsigniflcant valuation criteria appiledapplied Inin the H preparation of consoiidatedconsolidated annual accounts of the Group for the year 2013. The consolidatedconsohdated annualannual accountsaccounts havehave beenbeen preparedprepared basedbased onon thethe accounting recordsrecords ofof methe Bank and other Group entities. Nonetheless, andand gÑengiven thatthat methe accounting principiesprinciples and standards appiledapplied inin the preparation of methe Group'sGroup’s consohdatedconsolidated annual accountsaccounts forfor 20132013 may differ fromfrom mosethose used by sornesome of the consolidated entities, duñngduring methe consolidation process methe necessary adjustmentaadjustments and reclassificationsreclassiflcations have been made to standardise such principiesprinciples and standards and bñngbring memthem into lineme wimwith methe 1FRS-EUIFRS-EU apphedapplied by methe Entity.
UniessUnless omerwiseotherwise stated, these consohdatedconsolidated annual accountaaccounts are presented In mousandthousand euros.auras.
U
Li
[1] 13
1.4 Responsibility forthefor the informationinformationand andestimates estimates
The Informationinformationcontained contained inin methe presentpresent consoNdatedconsolidated annual accounts isis theme responsibilityresponslbllity of the DirectorsDlrectors of thethe Bank.
InIn methe consoudatedconsolidated financialfinancialstaternents statements ofof methe GroupGroup forforme theyear year 2013,2013, esümatesestimates were occaslonallyoccasionally mademade by methe Directors ofof methe Group to quantifyquantify sornesome of theme assets,asseft, liabilities,UabflWes, income,¡ncome, expenses andand obligationsobligaUons reportedreported herein. Basically,these these esumatesestimates refer to:
- lmpalrrnentImpairmentlosses losses onon certaincertain assetsassets (Notes 9, 10, 12, 13, 14 and 15).
- Assumptions usadused Inin actuarialactuañal calculationscalculations of liabilitiesliabflities andand commitmentscornmitments relatlngrelating toto postpost- employment benefltsbenefits and other long-term commitmentscommitments withwithemployees employees (Notes(Notes 2.122.12 andand 40).40).
- Useful lifolifeof ofproperty, property,plant plantand andequipment equipmentand andIntangible intangibleassets assets (Notes(Notes 2.14,2.14, 2.15,2.15, 13 andand 14).
- Measurement of goodwill onon consolidationconsolidation (Notes(Notes 2.162.16 andand 4).
- EstimafionEstimation ofof methe pmbabilityprobabilityof ofDccurrence occurrenceof of eventaevents classed asas contingentcontingent liabilitiesliabilWes and, Ifif appHcable,applicable, esUmationestimation ofofthe theprovisions provisionsnecessary necessary totocoverthese cover these eventsevents (Notes 2.182.18 andand 17).
- Reversal pehodperiod of temporarytemporary differencesdifferences (Notes(Notes 2.132.13 andand 23.4).
- Fair valuevalue ofofcertain certain unlistedunlistedassets assets (Note 25).
- The reaNsablerealisable value of certaincertain guaranteesguarantees related to the collection ofof assetsassets (Note 45).
These estimatesesUmates were made basedbasad onon thethe bestbest informationlnformaUon availableavailable at 3131 DecemberDecember 2013 concerning the factsfacts analysed. Nonetheless,Nonetheless, futurefutura eventsevents couldcould generategenerate significantsignificant adjustmentsadjustments (upward(upward oror downward)downward) in coming years,years, WhiChwhich wouldwould bebe mademade prospectively,prospectlvely, in accordance with prevailing mgulaüons,regulations, toto recognizerecognize thethe impactimpact ofofme the changechange inin methe esfimateestimate on methe consolidated Incomeincame statementstatement for methe yeamyears in quesUon.question.
lnIn 20132013 merethere wemwere no changes toto theme Group'sGroup’s accountingaccounfing estimatesesUmates havinghaving aa significantsignificant impadimpact on either methe consolidated resultaresults forforme the yearyear ororme the consolidatedconsolidatedbalance balance sheet.sheet.
1.5 Comparability of methe information
As required by lAS 1, theme informationinformation containedcontained Inin misthis consoildatedconsolidatedreport reportreferred referredto tothe the yearyear 2013 is¡5 presented only for comparison purposespurposes withwiththe the informationinformationon onthe theyear year 20122012 andand therefore doesdoes not constitute methe GroupsGroup's consolidated financial statementsstatements for methe yearyear 2012.2012.
The legislative developmentsdevelopments during 2013 have notnot affectedaffected thefre comparabilitycomparabihty ofof theIba financialfinanclal informationinformation of Ibethe Group, so Itit was notnot necessary anyany adjustmentadjustment oror reclassificationreclassiflcation ofof theme quantitativequanfitative informationinformation for 2012 which waswas publishedpublished inInthe the annualannual accountsaccounts of Ibethe previous year.year.
As regardsregards methe seasonal naturenature ofof incomeincome and expenses,expenses, theme mostmost significantsigniflcant transactionsflnsacfions completedcompletad by methe UnicalaUnicaja BancaBanco Group entitiesentities relate basicallybaslcally to theIbe typicaltypical activitiesaclivities ofof financial institutions,institutions,so sothat that thesethese consolidated annual accountaaccounts are notnot significantlyslgniflcantly affectedaffected bybyseasonal seasonal factors.
14 1.6 Investmentslnvestments in credit institutionslnstitutions
In accordance with ArticleMide 20 of Royal Decree 1245/1995124511995 (14 JuIy),July), frierethere foltowsfollows a [stlist of theme Group'sGroup’s share Inin domestic and foreignreign creditCredit institutions that exceed 5% of ffieirtheir capital or voting rightsdghft at 31 December 2013:
EntityEntfty % share
Banco Europeo de Flnanzas,Finanzas, S.A.SA. (*)() 40,7% EBN, SocledadSociedad EspanolaEspañola de BenceBanca de Negoclos,Negados, SAS.A. 21,1% Banco de CalaCaja EspanaEspaña de Inversiones, Salamanca y Soda,Soria, S.A. 5,0% (*) (1 Direct investment ofcfi 1,2%2% and indirectindlrect investmentInvestment of 39,5%39.5% through AltedaAlterla CorporacienCorporación Unicaja, S.LU.S.L.U.
At 31 December 2013, no domestic or forelgnforeign credit institutioninstituton (ar(or groups as defined in AnideArticle 4 of theme Stock Market Law ffiatthat includeinciude a domesticdornesüc or reignforeign credit Institution)lnsbtuflon) ownsowns aa shareshare ofof 5% or more in methe capital or voting rightsñghta of any credit institution that should be regarded as a Group entity.
1.7 AgencyAgency agreementsagreementa
At 31 December 2013, the following agents of methe Group'sGroup’s Parent entity meet the requirernentsrequirements of Article 22 of RD 1245/19951245)1995 and Bank of Spain Circular 412010:4/2010:
1) Entity'sEnUty’s AuthodzedAuthorized Signatories Name GeographicalGeographlcal acopescope
Angel Maigler UnguetflUnguetti MontizenMonuzón y Venta dedeles los Santos (Jaen)(Jaén) Aplagest Consulting,Consufting, S.LS.L. Campo de Criptana (Ciudad Real) Construcciones y Promociones Taberna,Tabemo, GestionesGestlones Inmobillarlas,Inmobiliarias, S.L. TabemoTaberna (Almeria)(Almería) MariaMaría Eugenia SanchezSánchez Berjaga HomosHornos de Segura (Jaen)(Jaén) MarlaMaria Dolores Asensio AguilaAgulia PatemaPaterna del Rio y BayarcalBayárcal (Almeria)(Almería) Contaestrella,Contaestrelia, S.LS.L Puebla de los Infanteslnfantes (Sevilla) Pablo FernandezFernández Rivera Fonder'Fondón (Almería)(Almeria) Antonio SánchezSanchez Ruiz Villarodrigo (Jaén)(Jaen)
Antonio SánchezSanchez Escobar La Joya (Antequera - Malaga)Málaga)
JoseJosé Antonio ArrabolaArrebola BenitezBenítez EstacienEstación de Salinas (Archidona(Axchidona - Malaga)Málaga) GestiónGestion 3 Uleila, S.LS.L. UleilaUlelia del Campo (Almería)(Almeria) Pablo FernándezFernandez EnríquezEnriquez Alcolea (Almería)(Almeria) JoséJose Manuel Alcaraz Forte Rego!Ragol e InstinciOnlnstirción (Almería)(Almeria) Antonia CastellanoCasteflano Yeste HijateHate (Almerla)(Almeria) MarfaMaría Isabel JuarezJuárez Padilla Rioja (Almeria)(Almería) MarfaMaria Dolores AbellanAbelian Berruezo MolnarMojacar (Almeria)(Almería)
15 2) ListList of ofBankBank nomineesnominees forfor customercustomer retentionretenUon oror promotionpromotion andand marketingmarketing operationsoperations or services.seMces.
Name GeopraphlcaiGeographical scope
Viada Asesores, S.L. PuertoIlanoPuerlollano (Ciudad Real) Sistemas Interactivos MalagueñosMalagueflos S.LS.L. Torremolinos (Málaga)(Malaga) Avances TecnológicosTecnologicos y DiseñoDisello S.LS.L. MarbellaMarbelia (Málaga)(Malaga) Sistema Asesores Málaga,Malaga, S.LS.L. MálagaMalaga Manuela JuradoJurado OlleroOiler° MarmolejoMarnalelo (Jaen)(Jaén) MañoMario Navarro Diaz Estepona (Málaga)(Malaga) Sur Finanz Agentes,Agentes, S.L Fuengirola (Málaga)(Malaga) Grupo InmobiliarioInmobillario Soto Jimenez, S.L. Pinos-Puente (Granada) Francisco Javier BazánBazar' Virtudes MálagaMalaga Francisco Javier Arroyo Lorca Valverde Del Camino (Huelva) Antonio Acosta OllerOiler TijoisTijola (Almeria) Manuela Joyar Montilla JaénJaen Matilde Cuerva Tortosa Almeria Jara-InversionesJara-Inverslones ea Intermediación,Intermediacion, S.LS.L. AjmeriaAlmeria Carlos Lorente MañinezMartinez Deifontes(Granada)Delfontes(Granada) Gestem PlanificaciónPlanificacion yy DesarrolloDesarollo Integralintegral de Empresas, S.L. MálagaMetoga Catalina Castro Jurado Torrox (Málaga)(Malaga) MariaMarla del Carmen Avila AndrésAndres Granada JoséJose MeleroMeier° Verdejo, S.L CórdobaCdrdoba Del FerTioFerrio Inversiones, S.L Estepona (Málaga)(Malaga) Manuel AngelAngel GanidoGarrido Rengel Moguer (Huelva) OiveiOrvel 21, S.LS.L. Vélez-MálagaVelez-Malaga (Málaga)(Malaga) DalmielDaimiel Asesores Inmobiliarios,Inmobillarlos, S.L. DaimielDalmiel (Ciudad Real) Jarava Barrera, S.LS.L. Ciudad Real Antonia Maria Manso SánchezSanchez FadnasFacinas (Cádiz)(Cadiz) Explotaciones de Mingos Verdes, S.L AlceláAloela de Henares (Madrid)
1.8 Environmental impact
The Unicaja Banco GroupGroup entities globalglobal transactionstransacüons areare subjectsubject toto environmentalenvironmental protectionprotection regulationsregulations (environmental laws). laws).The The EntityEntity consideraconsiders thatthat ffiethe GroupGroup substantiallysubstantially meets theme requirementsrequirements of environmental laws and that Itit has procedures lnin place to guarantee and encoumgeencourage compliance.
The EntityEnfity considersconsidera that methe Group has adopted theffie necessary measures wimwith respect to ffiethe protection and improvement ofof methe environmentenvironment and theifie minimisationmlnimlsabon ofof environmentalenvironmental impact,impact. wherewhem applicable,applicable, in accordance withwith currentcurrent environmentalenvironmentallaws. laws.ln In2013 2013and and 20122012 thethe Entity did not makemake anyany significantsigniflcant environmentelenvironmental investmenftinvestmentsand anddid did notnot identfyidentify anyany need to make provisionprovision for environmentalenvironmental risks and charges or any significant confingenciescontingencies inin connectionconnection withwith environmentalenvironmental protectionprotection andand improvement.improvement
1.9 Minimum ratios
1.9.1 MinimumMinimum capitalcapital requirementrequirement
QnOn 22 MayMay 2008,2008, theifie BankBank ofof SpainSpain issuedissued CircularCircular 312008,3)2008, on theme determinationdetermlnation and control of minimum capital requirement, partiallypartially modifledmodified byby Circular 9)20109/2010 (22 December)December) regulates ifiethe minimum equftyequity thatthat Spanish credit institutonsinstitutions mustmust maintainmaintain andand methe mannermanner inin ffiatthat equity must be calculated, as well as methe variousvañous capital self-assessment processes mustmust be carfiedcarried out bgethertogether withwith the publlcpublic information thatthat must bebe providedprovided toto methe marketmarket
16 I Additionally,Additionally,Royal RoyalDecree DecreeLaw Law2)2011, 2/2011,of of FebruaryFebruary 18,18, on StrengtheningStrengthening methe FinancialFinancial System requiredrequired thatthat banksbanks count with a minimum ratioratio ofof 8%8% corecore capitalcapital (obtained(obtained byby dividlngdividingthe theresaurces resources cfof higilerhigher quality,quality,with withcertain certaindeductions, deductions,and and ñsk-weightedrisk-weightedassets). assets). TNsThis ralloratio shouidshould bebe 10% jIif methe entityentity hadhad no private investors inin ffieirtheir capitalcapitalby byan an amountamount greatergreater manthan 20% or if tilothe enbtyentity heldheld aa dependence onQn wholesalewholesale fundingfunding more manthan 20%.
InIn 2012,2012, thethe LawLaw 912012,9(2012, ofof 14 November, restmctuhngrestructuring andand resolution of credit institutionslnstituions repesisrepeals Decree-Law 24/2012,2412012,of ofFebmary February 18,18, 1crfor strengtheningstrengthening thethe financial system, transformed generally establishedestablished requirements of 8% core capital and 10%10% set forfor entitiesentiles with limitadlimitedaccess access to capital and marketsmarkets forfor wholesalewholesaleftnding fundingpredominates, predominates,in ina aunique uniquerequirement requirementof of9% 9%to tobe be metmet byby the aforementianedaforementioned entitiesentitiesand and groupsgroups fromfromJanuary January 1,1,2013. 2013.The The aboyeabove ActActalso alsoentalls entailsa a changechange toto thethe definitiondefinitionof ofcore core capitalcapital teto conform Itit toto ffiethe one usedused byby thethe EuropeanEuropean BankingBanking AuthorityAuthoñty (EBA).(EBA). CircularCircular7/2012, 7/2012,of of NovemberNovember30 30 ofof the BankBank ofof Spain,Spain, toto creditcredit institutionsinstitutions onon minimummlnlmum capitalcapital requirementarequirements principaldevelops develops ffiethe regimeregime establishedestablished by fiatthat law.
InIn 2013,2013, by means ofof CircularCircular 4/20134)2013 (27(27 September),September), thefle definitiondefinWon ofof smallsmall andand medium-sizedmedium-sized companiescompanies waswas changeddianged forlar capitalcapital adequacy purposes.purposes. TheThe definitiondeflnWon of SMEs was extended,extended, bñngingbringing itit intoInto unelinewith withfle the EuropeanEuropean concept contained in RecommendationRecommendation 2003/361/EC of tilothe Commission (6 (6 May)May)an on methe definition ofof micro,micro,small small andand medium-slzedmedium-sized enterpñses.enterprises. ThlsThis changechange meansmeans that a largerlarger numbernumber ofof credit institutionInstitution exposures exposures cauldcould bebe reclasslfiedreclassified toto thethe retailretail exposuresexposures regulataryregulatory category,category, whichwhich Isis affardedaffordedfavourable favourabletreaffiient treatment whenwhen calculatingcalculating ñsk-welghtedrisk-weightedexposures. exposures.
Finally,Finally,on on 55 February 2014,2014, Bank cfof Spain Circular 2/2014212014(31 (31January) January)was was issuedissued teto creditcredit lnstitutions,Institutions,on onIhe the exerciseexercise of vañousvarious regulatory optiansoptions contained Inin Regulation (EU) No. 575/2013575/2013 of methe EuropeanEumpean ParliamentPadiament and ofcf thefle CouncilCouncil (26 JuneJuno 2013)2013) (CRR)(CRR) onon prudentialpwdenilal requirementsrequirementa for creditcredit inslltullonsinstitutionsand and investmentinvestment firms,firms,and and amendingamending Regulation (EU)(EU) No.No.648/2012. 648/2012.‘rile The purposepurpose Isis toto establish which optionsapilone must bebe fulfilledfulfihled immediately byby SpanishSpanish credit institutlons,Institutions,as as fromfrom methe effectiveeffectivedate date ofofme the newnew capitalcapitaladequacy adequacy regulatoryregulatory frameworlçframework,and andthe thescope scope ofoftieso these opicns.options.
The management of the Group adjustaadjusts Its own resourcos,resources, as conceptualconceptual definitionsdeflnitions areare concemedconcerned, to whatwhat isIs gathered Inin flethe Circular 3/20083/2008 ofof BankBank ofof SpainSpain andand its subsequent amendments. In this regard,regard, thethe Bank considersconslders asas eligibleeligible capitalcapital specifiedspecifled inin Rule 8 ofof CircularCircular 3/2008 of Bank of Spain andand itste subsequentsubsequent amendments.amendments.
AtAt 3131 DecemberDecember 20132013 and 2012, theme Entity'sEnútys equity,equfty, takíngtaking lntoInto accountaccount methe distñbuteddistributed surplussurplus (Note 3) amountedamounted toto €2109750€2,109,750 thousandthousand and €2211260€2,211,260 flousand,thousand, respectively.respecbvely. TusThis representarepresents aa surplus, inin respect toto theme minimumminimum amount required by Bank of SpainSpain CircularCircular 5/1993 and subsequent amendments,amendments, amountingamounüng toto €828408€828,408 thousandthousand andand €765348€765,348 mousand,thousand, respectively.respecbvely.
ThousandsThousands ofof euroseuros 2013 2012
BasIcBasic equltyequity 22 080060 621621 1 981981 027027 O(whlch:Of which: CoreCore capital 20603262 060 326 11 980980 901901 AdditionalAdditional equltyequity 4949 129 230230 233
Total eligibleeligible equltyequity 21092 109 750750 22112 211 260
Total oqultyequity requlrementrequirement 1 281281 342 1 445445 912912
17 The EntityEntty canjescarries miiout ñgorousrigorous actonaction toto maintain aa prudent and balanced riskñsk profile,proNa, preseMngpreserving Ihethe objecbvesobjectives of solvency,solvency, profltabilftyprofitabilityand andadequate adequate Iiquldity.liquidity.Rlsk Riskmanagement managementprocesses processes areare guided by Ibathe followingfollowing basicbasic principIes:principles:
• Permanent rigorous action to maintain a prudentpwdent andand balancedbalanced riskiisk profile,profile, preserving the objectives of solvency, profitabilityprofitabllity andand adequate liquidity.hquldity.
• Active participationparticipationand and supeMslonsupervisionby by SenlorSenior Management, whichwhich approvesapproves Ibethe general buslnessbusiness strategiesstrategles andand policiespoilcies appliedapplied by the Entity andand establishes the generalgeneral linesfines ofof riskiisk management andand controlcontrol atst the Entity.Entily.
• General internalIntemal control environmentenvironment
• Segregation ofof duties and thethe processprocess ofof measuringmeasuñng andand controllingcontrolling the Entity'sEnUtys risk isla completely lndependentIndependent fromfrom theIbe riskñsk taking function.
• Minimization of ofdoubfful doubtfulasaete assets throughthrough prudentprudent ñskrisk management, particularlypartlculady by avoidingavoidlng of uncertain viability and and quanUtativequantitative limitatonslimitationsof ofInvestmente investmentsbased based onon sufflcientsufficient guaranteeguarantee parametera.parameters.
• Selection of adequateadequate risk measurement methodologies.methodologles.
The Entity'sEntiWs policies,policies, meIbodsmethods andand procedures relating loto OverallOverali RIskRisk ManagementManagement amare appmvedapproved by the BoardBoard ofof Directors.Directora. TheTbe ControlControl Committee,Commiffee, the AuditAudit Committee,Commiftee, the Asset, LiabilityLlabllity andand Budget Committee (ALBC)(ALBC)and andthe the lntemaiInternal SupeMslonSupervisionand and RlskRisk Control DepartmentDepartmentat at the EntityEntity is responsibleresponsible forfor ensuñngensuring adequateadequate compliance with thosethose policies, methodsmethods andand procedures, ensuñngensuring thatthat theythey are adequate, areare effectivelyeffectively implemented andand revlewedreviewed onon aa regularregular basis.basis.
1.9.2 MinimumMinimum reserves ratiorabo
At 3131 December 2013 and 2012,2012, andand throughoutthroughout 20132013 andand 2012,2012, thethe EntityEntity compliedcompilad withwiffi thetie minimumminimum reserves ratiorallo imposed by applicable Spanish regulations.
On 21 DecemberDecember 20112011 thethe OfficialQificlal JournalJoumal of the EuropeanEuropean UnionUnlon (OJEU)(OJEU) publishedpublished RegulationRegulation (EU)(EU) 1358120111358/2011 ofofthe the EuropeanEuropean Central Bank (14 December), whlchwhich amends RegulationRegulation (EC) 1745/2003, relatingrelating loto thethe application ofof minimumminimumreserves. reserves. TheThe aforementioned amendment consistsconsiste ofof includinglncludlng thethe reduction from 2%2% loto 1%,1%, approvedapproved byby thethe Board ofof Governors ofof thethe European Central Bank onon 8 December 2011, affectingaffecfing ifiethe mlnlmumminimumreserve reserve ratoratio loto bebe held by entIlesentities subject to the regulations.regulatons. This amendment entered intoInto torceforce asas from Ibethe reserve maintenance periodpehod starbngstarting onon 18 January 2012.
1.10 DepositDeposit GuaranteeGuarantee FundFund
The Entity isis aa member of the Deposit Guarantee Fund. In thethe years 2013 and 2012,2012, expensesexpenses incurredIncurred throughthrough thethe ordinary andand extraordinaryextraordlnary contributionscontributons toto thisthis bodybodyamounted amounted toto€27477 €27,477 thousandthousand andand €31807€31,807 thousand,thousand, respectively, thatthat werewere booked under the headingheadlng 'OtherOther operatingoperating chargescharges -- ContributionContribution toto the DepositeDeposits Guarantee Fund"Fund” in tbethe attacbedattached consolidatedconsohdated profitpmflt and loss account (Note(Note 39).
18 Royal Decree-Law 16/201116/2011(14 (14October) October)enterad enteredinto intoforce forceon on 1515 OctoberOctober 20112011 andand created the DepositDeposit Guarantee Fund forfor CreditCredit Institutionslnstitutlons (RD 16/2001). ArboleArticle2 2 ofof that RoyalRoyal Decree-LawDecree-Law declares the cancellation ofof thethe Deposit Guarantee Fund forbr Savings Banks,Banks, theIhe DepositDeposit GuaranteeGuarantee FundFund forbr BankingBanking Establishments and theme DepositDeposit Guarantee FundFund forbr Credit Cooperatives, methe balances ofof whichwhlch amare integrated Into ffiethe Deposit Guarantee FundFund forbr CreditCredit Institutions,Institutions, which subjugatessubjugates tob allah of methe rightsñghts and obligationsobllgations of methe cancelled funds. As a result,resuft, as fromfmm ffiatthat date theffie SavingsSavinga BankBank joined ffiethe new DepositDepasit Guarantee Fund for Credit Institutions.lnstitutions.
Onto December 2011 Royal Decree-Law 19/201119/2011 (2(2 December) enteredentered into forneforce and amendedamended RoyalRoyal Decree 16/2011 which established that theme amountamount ofof theffie contributionscontributions by EntitiesEntibes toto the Deposit Guarantee Fund for Credit lnstitutionsInstitutionswould wouldincrease increaseto to2 2 perper ffiousandthousand of theme calculationcalculation base. TheThe aforementionedaforementioned Royal DecreeDecree is5 applicable to the contributionscontñbutions mademade as fromfrom methe date onon whichwhich itit entered intointo force.forne. InIn 2011 the amount of contrlbutionscontributionswas was setset atat 1 perper thousandthousand of methe calculationcalculation base.base.
OnQn 4 JulyJuly 20112011 CircularCircular LetterLeter 3/2011 (30 June) entered intointo forceforne forbr entitiesentities belonging toto a depositdeposit guarantee fund andand coverscovers additionaladdftional contributionsconffibutions to depositdeposft guaranteeguarantee funds.ffinds. ThatThat CircularCircular LetterLeifer establishes mandatorymandatory quarterlyquartedy additionaladditional contributionscontñbubons brfor membermember entitiesentitles ffiatthat obtainobtain termterm depositedeposits or settle lnterest-bearingInterest-bearing currentcurrent accountsaccounts cedlngceding certain lnterestInterest rate,rate, basedbased on theme term of methe deposit or methe naturenatura of the onon demanddemand account.account ThisThis contributioncontribution would derive from thethe weighting,welghting, ofof 500%,500%, ofof depositedeposits obtained or settledseifled that exceed thosethose rates,rates ofof thethe calculationcalculation basebase thatthat maymay bebe determineddetermined byby ordinaryordinary contributions.contributlons. On 31 AugustAugust 20122012 thethe additionaladditionah contributionscontributlons to the DepositDeposit GuaranteeGuarenteo FundFund were repealedrepealed withwith the publication of Royal Decree-Law 24/2012.24/2012.
The DepositDeposit Guarantee FundFund ManagementManagement Committee,Commiftee, Inin oidororder toLo restorerestore theme Fund'sFund’s financialfinancial positionposition pursuant to Article 6.26.2 of Royal Decree-Law 16/201116/2011(14 (14 October),October),resolved resolvedon on 3030 JulyJuly 20122012 to request conffibutionscontributions fromfrom ifiethe member institutions, apportionedapportioned usingusing ffiethe calculafloncalculation basebase for the contributionsconffibubons at 31 December 2011,2011 payable in ten equal annual instalments.instalmente. The amount of methe instalmentinstalment payablepayable onon eacheach datedate may be deducted fromfrom theme ordinaryordinary annual contributioncontñbution paid by methe institution, ififapplicable, applicable,Qn onmat thatsame same date,date, up to the amount ofof theme ordinaryordinary contribution.contribution.
Additionally, in inorder orderfor forthe the DepositDeposit GuaranteeGuarantee Fund'sFunda financialfinancial position toto remain balanced, allowingallowing the proper performance of ltsits ñinctionsfunctions toto ensureensure theme stability of Spain’sSpain's financlalfinancial system,system, and pursuantpumuant to RoyalRoyal Decree-Law 6/2013(226/2013 (22 March),March),a a one-offone-offspeclal special contributioncontributionwas wasstipulated, stipulated,equal equalto tothree three oneone thousandthsthousandths of the qualifying deposits.deposits. This contribution isis arrangedarranged in two phases. InitialInitial 40% contribution,contrlbution, for which therethere are aa numbernumber ofof deductionsdeductions relatedrelated toto theme sizesize ofof theffie institution,instituton, itsita contributionsconffibuflons toto methe SAREB andand thethe recelptreceipt of state aid.aid. AA secondsecond 60%60% contributionconffibution payable as fromfrom 2014 and withinwithln a maximummaximum ofof seven years, inIn accordance with methe payment schedule to be establishedestablished byby theme DepositDeposit GuaranteeGuarantee FundFund ManagementManagement Commfttee.Committee.
The expense incurredincurred inin 20132013 includesincludes thethe additionaladdibonal contributioncontribution of€of € 15551,555 thousand required byby Royal Decree-Law 6/2013.
1.11 SubsequentSubsequent eventsevents
During 2014,2014,tome to thelssue Issue datedate ofofmese these consoildatedconsolidated annualannual accounta,accounts, merethere hayahave been newnew developmentsdevelopments inin connectonconnection wimwith ffiethe acquisibonacquisitionof ofBanco Bancode de CajaCaja EspañaEspafla dede Inversiones, Salamanca yy Soria, S.A.SA (Banco CEISS) described in Note 1.2.
DuñngDuringme the pedodperiod fromfrom31 31December December2013 2013to tome the issueissue datedate of mesethese consolidatedconsohidated annual accounts,accounft, theremere have been nono particularlyparticularly relevantrelevant eventsevents that are not referred to In the the notesnotes toto thethe accounts,accounts.
19
1.12 ChangesChanges inin accountingaccounting criteria.critefla.
InIn 2013,2013, newnew accountingaccounUng normsnorma became eftcUveeffective andand hayo,have, therefom,therefore, beenbeen takentaken intointo account Inin thethe preparaUonpreparation armeof the GroupsGroup's consolidated annual accounts for 2013:
Norms,Norma, modificallonamodifications and ObflgatoryObligatory appllcaUonapplication to InterpretationsInterpretatians DescriptionDescripUon financlalfinancial yeanyears beAlnnlngbeginning fromfrom
IASAS 1 PresentabonPresentation of financial atatementa:statements: proaentatlonpresentation of Itemaitems of otlierother 1 July 20122012 comprehenalvecomprehensive Incomeincome lASIAS 12 Deferred tattax: RecoveryReccvory of underlyingundedylng asaeteassets 1 January 20132013 IASlAS 191 EmployeeEmp1oyee benefitsboflaflls 1 JanuwyJanuary 2013 IFRSFRS 1 SeveroSevere hyperinflationhyperinflaon and removal of fixedficad dates forforfrst4me first-time adopteroadopters IFRSFRS 1 GovenunentlosnsGovernment loans 1 January 20132013 IFRSFRS 7 OffseWnOffsetting flnandfinancial asaeteassets and flnanalfinancial liabilitiesliabflhties 1 January 20132013 IFRS 13 FairFaIr value massurementmeasurement 1 January 2013 IFRIC 20 StñpplngStripping costacosts lnin Uiethe productionproduction phaaephase of aa surtacesurface minemIne 1 January 2013 VadousVarious IFRSFRS MinorMinar modificationsmodlficahlona of a set of rules 1 Janua,yJanuary 2013
QnOn the date of the preparation of these consolidatedconsohdated annual accounts, methe followingfoIiowng normanorms and lnterpretationsinterpretations (the most important applied 01on thatthat date) matthat had been published by thethe IASB had not comecome intainto effect, elthereither because theirUieir effective daladata Isis after ffiethe date of ifiesathese consolidated annual accounft,accounts, or because they hayahave not yet been adapted by methe European Union:
Non,,.Norms, modfflcaUon.modifications .ndand ObllgatoryObligatory .ppllcaUonapplication to Interprat.tlonsInterpretations DncdpflonDescription flnanctalfinancial yenyears beAlaninabeginning tmmfrom
IFRSFRS 1 First-timeFimt-Ume adoption:adoplion: oficialofficial Ioansloans 1 January 2014 IFRSFRS? FinancialFlnandal Instruments:instrumente: disclosuresdlsdosures 1 January 20142014 OffsettlngOffsetting financial asaeteassets and liabilitiesliabilWes IFRSFRS 9 FinancialFlnancial instrumentsInstrumente 1 January 20142014 IFRSFRS 10 ConsohidatsdfinancialConsolidated financial statements 1 January 20142014 IFRSFRS 11 JolntnngementsJoint arrangements 1 January2al4January 2014 IFRSFRS 12 DetailsDetaila of interestsInterests inlo other entltiesentities 1 January 20152015 IFRSFRS 13 FairFalrvaiuemeasuremont value measurement 1 JsnuaryJanuary 2014 ModificationModificaflonoflAs of lAS 19 Employee salariessalades 1 January 20142014 ModificadonModification ofof lASlAS 1 PresentationPresentaton of finandalfinancial statement 1 January 2014 ModificationModificatlon ofof lASIAS 27 SepareteSeparate financialflnanclal statements 1 JanuaryJanuaiy 201132018 ModificationModlfication ofof lASIAS 28 investmentsInvesbnents In assodatasassociates and joint venturosventures 1 January 2014 ModificationModificstlon ofof lASIAS 32 FinancialAnanclal Instruments:Instrumente: presentatlonpresentation 1 January 2014 OffseülngOffsetting financial essotsassets and liabilitiesIlabillties ImprovementsImprevemenis toto IFRSsIFRSs Minor modlffcationsmodificationsto toee set of rules 1 July 20142014 ModificationModlfication ofofIFRS IFRS 10,10, 11 and ClasslfpcatlonClassification of franaltiontransition rules of these rules 1 January 20142014 12 C IFRS 1 First-timeFflt-Ume adoption:adoptan: oficialofficial loanaloans 1 July 20142014
()The(•)The GroupGmup has applledapplied IFRICIFRIC 21 eadyearly lnin 2013,2013, [1 The AdministratorsAdmlnlstrators ofof the Savings Bank belieyebelieve that the applicationappllcaUon of thetbe majoritymajoñty of these normsnorma wIIlwill not have an Importantimportant impact on methe GroupsGroup's consolidated annual accounts Inin the following years.
20 Standards and ¡nterpretaüonsinterpretations Inin forneforce ¡siin the current yenyear
InIn 20132013 ffiethe followingbllowing amendments amendments toto International Financial ReportingReporting StandardsStandards (IFRS) or interpretationsinterpretaflons of IFRSFRS (IFRIC)(IFRIC)carne came Intointoeffect effectand anddid didnot nothave havea a signiflcantsignificantimpact impacton onthe theconsolidated consolidatedannual annual accounts:accounts:
o lASIAS 11 (Amendment)(Amendment)Presentefion 'Presentation ofof financialfinancialstatements’: statements":This Thisamendment amendmentto to lASIAS1 1changos changes thethe pmsentationpresentation ofof ffiethe other statement ofof comprehensivecomprehensive income (called methe statement ofof recognizedrecognized incomeincome andand expenses inin BankBank ofof SpainSpain CircularCircular 4/2004), requiringrequiñng thatthat ffiethe itemsteme included in amarother comprehensive incomeIncome bebe gmupedgrouped in twotwo categodescategories based on whether or not theymey willW!U bebe takentaken to methe incomeincome statementstatement. Itemsteme thatthat wilIwill notnot flnallyfinallybe beteken takento to methe Incomeincome statement,statement, suchsuch asas restatements of property, piantplant and equipment, must be presentedpresented separatelyseparately fromfrom itemsitems thatthat willwill affect thethe income statementstatementin inthe the future,future,such suchas as losses and gains onon cashcash flowflow hedges. ThisThis amendment isis mandatory forfor allaH financial yearsyears startingstarting on or afterafter 1 July 2012.2012.
This standardstandard has notnot had aa materialmaterial impactimpact on the Group'sGroup’s consolidated annual accounts, althoughaithough thethe presentation of certain itemsteme inin methe consolidatedconsolidated statementstatement of recognizedrecognized IncomeIncomeand and expensesexpenses has been changed.
o lASIAS 1212 (Amendment)TMDeferred "Deferredtax tax:Recovery Recoveryof ofunderiying underlyingassets”: assets":fle The amendmentamendment toto IASlAS 12 provides aa practical approachapproach toto methe measurement of deferred tax assets andand liabilitiesliabilities relatadrelated to investnentinvestment pmpertypropertycarded carriedat at fairfair value,value, aneone of methe measurementmeasurement optionsoptions providedprovided by IASlAS 40 “lnvesfrnent"Investment property”.property". AlthoughAlthoughmis thisamendment amendment waswas mandatorymandatory brfor al!all annualannual peñodsperiods commencing on or after 01 JanuaryJanuary 2012,2012, asas perpor thethe effectiveeffective datedate stipulatedstipu!ated byby thethe IASB,IASB, forbr EuropeanEuropean UnionUnion purposes the effective date refers to periodspeñods commencing on or afterafter 11 JanuaryJanuary 2013,2013.
o lASIAS 1919 (Amendment)(Amendment)‘Employee "Employeebenefits”: benefits":The Theamendment amendmentto to lASIAS19 19changes changes thethe recognitionrecognitian and measurement of defined benefltbenefit pensionpension costecosts and of termination benefite,benefits, asas well asas disclosures of alIall empioyeeemployee benefits.benefits. TheThe faHowingfollowingaspects aspectsof oflAS IAS19 19haya havebeen beenchanged, changed, amongamong others:others:
- Actuada!Actuarial gainsgains andand Iossoslosses (now(now calledcalied "recalculations")“recalculabons”) maymay onlyonly bebe recognized in other comprehonsivecomprehensive income,Income, Le.i.e. ininme thestatement statement ofof recognizedrecognizedincome incomeand andexpenses, expenses, as Itemsitems thatthat wil!willnot notbe betaken taken toto thethe incomeincome statementstatement. The optiansoptions ofof deferringdeferring actuada!actuariallosses losses and gains throughffirough methe corridorcorridor appmachapproach and ofof recognizingrecogn!zing themmem directlydirectiy in theme Incomeincome statenientstatement havehave beenbeen eliminated.e!im!nated. RevaluationsRevaluations recognizedrecognized inin otheramar comprehensive income may not bebe takentaken to tI,ethe incomeIncome statement.statement.
- The cost of past servicesseMces mustmust bebe recognizedrecognized inin theme periodperiod inin whichwhich theme planplan isis modifiedmadifled and benefits notnot vestedvested Inin a serviceservica periodpedod may not be deferreddeferred toto futurefutura periods.periads. ReductionsReductions only occur when methe number of employeesemployees includedincluded inin the planplan fallsfalls significantly.significantly. LossesLosses and gainsgalns deriveddedved from reductionsreductionsmust mustbe be recognizedrecognizedin inme thesama same wayway asas past service coste.costs.
- This annual expense of a financedfinanced benefitbeneflt plan must Includeinclude methe netnet interestInterest expenseexpense or income,income, calculated by app!yingapplying methe discount rate to methe net defined benefitbenefit asset oror liability.liability.
- BenefltsBenefits requidngrequiring methe provisionprovision ofofMure futurecervices services willwillnot notbe betreated treated asas termination benefita.benefits.
The amended IASlAS 19 is mandatory on a retroactiveretroactive basis forfor allal! financialfinancia! yearsyears starting on or altarafter 1 January 2013.
21 J
o IFRSFRS 11 (Amendment) “Sevem"Severe hypeñnflationhyperinflation andand removalremoval ofof fixedfixed datesdates forbr first-timeflrst-Ume adopters”:adopters": TheThe amendmentsamendments related toto severe hyperinflationhypednflation provide guidance on how to present forfor the firstflrst time,time, oror summaHsesummarise when presenting financial statementsstatements underunder IFRS,FRS, followingfollowing aa periodpedod duringduñng which thethe entityentity waswas unable to fulfilIFRS IFRSrequirementa requirementsbecause because itaits functionalfunctionalcurrency currencywas wassubject subjectto to seversever hypoñnflation.hyperinflation.Although Althoughthis thisamendment amendmentwas wasmandatory mandatorybr forah allannual annual pedodaperiods commenclngcommencing onon oror altarafter 1 July 2011,2011, asas per theVie effectiveeffective date stipulatedatipulated by theVie IASB,IASB, brfor EuropeanEuropean Union purposespurposes methe effectiveeffective datedate mfersrefers loto peñodsperiods commencingcommencing onon oror altarafter 11 JanuaryJanuary 2013.2013.
oo IFRSIFRS 11 (Amendment)(Amendment) “Govemment"GovernmentIoans”: loans":The The IASBIASBhas has amendedamended IFRSIFRS 11 "First-time“First-time adoptionadoption of InternationalInternational FinancialFinancial ReporüngReporting Standards’Standards" loto shawallow flrst-timefirst-timeadoptera adopters toto apply Visthe pmvisionsprovisions of lASIAS 20 "AccountingAccounting for forgovemment governmentgranis grants anaand disciosuredisclosure of governmentgovemment asslstance’,assistance", applicableapphicable loto entitiesentities aireadyalready applylngapplying IFRS,IFRS, InIn cannectionconnection withwithgovemment governmentIoans loans atat below-mañcetbelow-market interestinterest rates.rates. ThisThis amendmentamendment ¡ais mandatory brfor silall financialfinancialyears yearsstarting startingmi on ororalter after 11January January 2013.2013.
oo IFRSFRS 77 (Amendment)(Amendment) ‘Offteftng'Offsetting financialfinancialasaete assets and financialfinancial liabilities":Nabihities”: The Theamendment amendment toto IFRSIFRS 77 requiresrequires disclosure of quantitative informationinformationboth bothon on recognizedrecognized financialfinancial InstrumenteinstrumentsthaI that hayahave beenbeen offtetoffset inInVie the balancebalance sheetsheet and on financial lnstrumentsinstruments subjectsubject toto mastermaster neftngnetting arrangementa,arrangements, irrespectiveirrespectiveof ofwhether whetheror ornot notffiey theyhaya havebeen beenoffset offsetin inme thebalance balancesheet. sheet. The amendment toto IFRS 77 ¡5Is mandatorymandatory forforsil allfinancial financialyears yearsstarting startingon onor oraltar after 11January January 20132013 andand lais apphcableapplicable retroactively.rebvactvely.
oo IFRSIFRS 1313 “Fair"Fair valuevalue measuremenr:measurement":IFRS IFRS13 13explains explainshow howlo tomeasure measure ¡temaitems stat fair value;value; itit ¡5is designeddesigned to improve andand extendextend fair valuevalue disclosuredisclosure requirements.requirements. ThisThisstandard standard doesdoes not establlahestablish whichwhichelemente elementsmust mustbe be measuredmeasured atat fair value or addadd anyany newnew fairfair valuevalue measurementmeasurement requiwments.requirements. ThlsThis newnew standardstandard lais mandatory larfor ahall financialfinancialyears yearsstarting startingon on oror afterafter 11 JanuaryJanuary 2013.2013. The new standard isla appliedapplled prospectivelyprospectively as fromfram the start ofof theme financialfinancial year inin whichwhlch it lais adoptedadopted for methe first time. The disclosure requirementsrequirementa do notnot applyappiy tolo theffie comparativecomparative informationinlarmafion presentedpresented forforpeñoda periods priorpriorto to theIba periodperiod of first-timefirst-Vme adaptionadoption of IFRS 13.
oo IFRICIFRIC20 20 “Stñpping"Strippingcosta costsin inthe the productionproductionphase phase ofof aa surfacesuMaca mine":mine”: IFRICIFRIC 2020 defines when stñppingstrippingcosta costsmust mustbe berecognized recognizedas asan an assetasset in thethe balancebalance sheetsheet and how Vieythey mustmust bebe measuredmeasured atat ¡niDalinitialrecognition recognitionand andsubsequent subsequent measuremenimeasurement. ThisTbis new standard is¡a mandatorymandatory forbr allaH financialfinanclal yearsyears starting onon or afterafter 11 JanuaryJanuary 2013.2013.
oo improvementeImprovementslo to IFRSIFRS CycleCycle 2009-2011:2009-2011: ThisThis IFRSIFRS improvamentimprovement projectproject bñngsbrings inin minarminor changeschanges and clarifications,clarificationa, mlafingrelating mainlymainlylo to IFRSIFRS 1 "First-time“First-time adoptionadoption ofof IFRS,IFRS", lASlAS 11 "PresentationPresentaton of financialfinancial atatements”,statements", lASlAS 16 "Property,“Property, plant andand equipment",equipmenr, lASlAS 3232 "Financial“Financial Instruments:instruments: Presentation”Presentation" and lAS 34 "Interim“lnteñm financialfinancial reporting”.reporting".The Thechanges changes are applicableapplicable retroactivelyretroactively loto financialfinancialyears years startingstarting onon oror afterafter 11January January 2013.2013.
TheThe apphicationapplication ofofabove-menfioned above-mentionedaccounting accountingstandards standards and Interpretationsinterpretatlons has hadliad nono significantsigniflcant effect on thethe Group’sGroup's consolidatedconsolidated annualannual accounts,accounts.
22 Standards and InterpretatlonsInterpretations Issued ant!and not UiIn torceforce
At thethe lssueissue datedate of these consolidated annual accounts, newnew InternationalInternational Financial ReportlngReporting StandardsStandards and interpretationsinterpretations ofofstandards standards have been publishedpublished thatthaI areare notnot mandatorymandatory forfor periods commencingcornmencing Qnon or after 1 JanuaryJanuary 2013. At methe present date, theffie analysisanalysis ofof thethe futurefuture effects,effects, iflf any, that could ariseañse from the adoptionadopUon of these standardsstandards hashas notnot yetyet beenbeen completed,completed, althoughaithough nono significantsignificant impacts are envisaged.envisaged. These standards are asas follows:foliows:
o lASIAS 2727 (Amendment)(Amendment) @Separate"Separate financialfinancial statements:statements": TheThe requirements previously cantainedcontained in lASIAS 27 relatingmlating tometo the preparationpreparafion of consoildatedconsolidated financial statements statements areare included¡neluded in methe new IFRSFRS 10. The scope ofof IASlAS 27 isis thereforeffierefore reducedreduced toto theme recognitionrecognition ofof investmentsinvestmenft inin subsidiaries,subsidiarias, jointly-joinUy confrolledcontrolled entitiesentities and associates inin theffie Investinginvesbng entity'sentitys individualindividual financialfinancialstatemenft statements under IFRS, no changes having been mademade withwith respect toto the previousprevious standard. AlthoughAithough methe amended IASlAS 27 isIs mandatorymandatory forforah allannual annualpeñada periodscomrnencing commencingon onor orafter after1 1January January2013, 2013, asas per thethe effective datedate stipulated by thethe IASB, forforEuwpean European UnjanUnionpurposes purposes methe effectiveeffectivedate date refersrefers foto peñadaperiods cornmencingcommencing on oraiferior after 1 JanuaryJanuary 2014.
o lASIAS28 28 (Arnendment)(Amendment)“lnvestments "InvestmentsIn Inassociates associatesand andJoint jointventures’: ventures":lAS IAS28 28has hasbeen been updatedupdated to includeinclude referencesreferences toto jointjoint ventures,ventures, whichwhich mustmust bebe recognizedrecognized uslngusing thethe equity rnethodmethod underunder thethe new IFRSFRS 11. AlmoughAlthoughthe the arnendedamended IASlAS 2828 is rnandatorymandatory for aHall annualannual peñodsperiods cornmencingcommencing onon or after 1 JanuaryJanuary 2013, as perper theffie effectiveeffective datedate stipulatedstipuiated byby thethe IASB,IASB, for EuropeanEuropean Union purpasespurposes thethe effective datedate refers to peñodsperiods commencing onon oror afterafter 11 JanuaryJanuary 2014.
o lASIAS 3232 (Arnendment)(Amendment) ‘Qffsetting"Offsetting financiaifinancialasseft assets andand financialfinancial liabilities":IiabilWes’: TheThe ApphcationApplication GuidanceGuidance isIs modifledmodifiedto to darifyclarifysorne some ofof methe requirementsrequirernenta for offsettingoffseffing financial assetsassets andand financialfinancial liabilitieshabihties in methe balance sheet.sheet TheThe amendmentamendrnent doesdoes notnot affectaffect theme offsetoffset modelmodei alreadyalready providedprovided Inin IASlAS 32, which isis stilistill applicabieapplicablewhen, when, amiand only when,when, anan entftyentity currentiycurrently hashas methe legally enforceableenforceable rightñght to offset methe arnountsamounts recognizedrecognized andand thethe intentonintentionlo tosettle settlethe the netnet arnountamount ororlo to realizerealizeme theasset asset and sefriesettle thethe liabilityliabflity simultaneously.simultaneously.The Theamendment amendment ciariflesclarifiesthat thatthe the offsetoffset rightright mustmust bebe availabieavailable at thethe current time, i.e.¡e. does notnot dependdepend onon a afuturefuture event.event. Additionally,Additlonaily, the rightñght mustrnust be legallyIegaily enforceable in the ordinary coursecourse of business of the counterparties InvolvedInvalved inin methe transaction,transaction, eveneven inin thethe event ofof default,defauit, insolvencyinsolvency or bankruptcy. TheThe amendment toto IASlAS 32 isis mandatoryrnandatary forfor allah financialfinancialyears years startingstarting onon or after 1 January 20142014 andand Is15 applicableapphicable retroactively.retroactively. EarlyEañy adoption isis permitted.
o lASIAS 3636 (Arnendment)(Amendment) ‘Recoverable"Recoverableamount amount disclosuresdisclosures forfor non-financialnon-financialassets”: assets": TheThe amendrnentamendment requiresrequires methe presentationpresentafion ofof supplementarysupplernentary information on onfair fairvalue valuemeasuremente measurements mademade inIn methe event of irnpairmentImpairment oror aa reversalreversal of impairneniimpairment.Arnong Amongomer otheraspecte, aspects, misthis amendmentamendment: (i) removesremoves methe requirement toto disclose theme recoverablerecoverable amountarnount when aa cash-generatingcash-generating unitunit (CGU)(CGU) contains goodwill or oran an intangible asset asset wimwith enan indefinite usefuluseful hife,life,but but nono impaimientimpairmenthosa loss hashas been recognized;recognized;(ji) (ii)requires requiresdisdosure disclosureof ofme therecoverable recoverablearnount amountof ofan anasset asset oror CGUOGU when an U impairnentimpairmentioss loss hashas been recognizedrecognized oror reversed;reversed; andand (iii)(iii) requiresrequires detaileddetaiied disclosuredisdosure ofof howhow fairfair valuevalue leasless costs loto sell or dispose of methe asset byby otherother means has beenbeen measuredmeasured when an impairmentImpairmentIoss loss hashas been recognizedrecognized oror reversed.reversed. Thisfis amendmentamendment Isis applicableapphcable retrospectivelyretrospectively inIn flnanciaifinancialyears years beginningbeginning onon oror afterafter 11 JanuaryJanuary 2014.2014. ItIt maymay bebe eañyearly adopted,adopted, but never befarebefore IFRS 13.13,
o lASIAS 3939 (Amendment)(Arnendment) ‘Novation"Novationof ofdeñvatives derivativesand and continuationcontinuationof ofhedge hedge accounting:accounting': Under thlsthis standard, an entityentity is requiredrequired teto interrupt hedgehedge accounting where where aa deñvativederivativedesignated designatedas as aa hedginghedging lnstrumentinstrument isis novatednovated toto a CentralCentral CounterpartyCounterparty CleañngClearing House (CCP), since the originaloriginal derivative ceasesceases to exist. Thefe new derivative withwiththe theCCP CCPis isrecognized recognizedal atthe the novationnovatlondate. date. TheseThese amendment will be be applicableapplicablelo to financialfinancialyears yearscomrnencing commencingon onor orafter after1 1Januaty January2014 2014 andand maymay bebe eadyearly adopted.adopted.
23 o IFRSFRS 99 ''Financial‘Financial instrumente”:instrument?: ¡FRSIFRS 9 simplifiessimphfies thethe accountingaccounting treatmenttreatment ofof financlalfinancialassets assets and brings Inin new classification andand measurementmeasurement requirements. Financial assetsassets heldheld mainlymainly to collectcoliect cash flowsflows representing principal andand interest payments must be carriedcarried atst amortizedamorüzed cost,cost, whilewhile allsil other financialfinanclal assets, assets, includingIncludingassets assetsheld held forfor trading,trading,must must bebe measured at fairfair value.value. Consequentiy,Consequently, an impairment¡mpalanent model leis required only forfor financialfinancialasaete assets carried atat amortized costcost. As pailpart of thisthis pmcess,process, though unrelated to hedge accounting,accounhng, IFRSIFRS 9 Isis alsoaiso amended toto allowailow entifiesentities to earlyeahy adopt theme requirementrequirement toto recognize,recognize, inin otherother comprehensivecomprehensive income,income, fair value changes attributable to changes inin theme entity'sentitys ownown creditcredit riskiisk forfor financialfinancial liabilitiesllabflfties carriedcarried at fair value (this(mis may be appliedapplied withoutwimout havinghavingtú to adoptadopt methe rest ofof theffie standard).standard). IFRSIFRS 99 willwiIl bebe applicableapphcable retmactively,retroactively, exceptexcept in relationmiation to hedgehedge accounting,accounting, whichwtiich willwiil bebe applicableapplicable prospectivelyprospecffvely (with(wim somesorne exceptions).exceptions). As regards the IASB,IASB, methe effective datedate of methe standard hashas beenbeen eliminated,eliminated, established forfor 11 JanuaryJanuary 2015,2015, althoughaithough entitiesentities maymay stillstiIl choosechoose toto applyapply ItIt immediately.lmmedlateiy. It hashas not yet been adopted byby the EuropeanEuropean Union.Unlon.
o• IFRSFRS 10 “Consohdated"Consolidated financlalfinancialstatements: statements': IFRSFRS 1010 bñngsbrings inin changeschanges totú theme conceptconcept ofof control,control which is5 stiiistilldefined definedas as methe factor determinlngdetermining whemerwhether anan entity mustmust oror mustmust not be included Inin the consolidated financial statements.statements. IFRSFRS 10 replaces thethe controlcontrol and consolidationconsolidation guidanceguldance providedprovided by lASIAS 2727 andand eliminates SIC 12, wfilchwhich isIs repealed.repealed. In order for control toto exist,exist, twotwo elementeelements must be identified: powerpower ayerover anan entity andand variable retums.returns. TheThe standard provides extensive guidance for cases inIn whichwhich ItIt is5 difficultdifflcuit to todetermine determinewhether whether oror notnot controlcontrol existe.exists. TheThe concept of unity of ffiethe parent entity andand ¡teits subsidiariessubsidiaries forfor ffiethe purposespurposes of methe consolidated financialfinancialstatemenft, statements, andand ‘the'the consohdationconsolidationprocedures, procedures,have have notnot changedchanged withwith respectrespect to IASlAS 27. AlthoughAittiough misthis standard isle mandatory for allall annualannual peñodsperiods commenclngcommencingon onor orafter after 11 JanuaryJanuary 2013,2013, asas per theme effectiveeffective date etipuiatedstipulated by the IASB, forforEuropean European UnionUnionpurposes purposes methe effectlveeffective datedate refers to perlodsperiods commencing on or after 1 JanuaryJanuary 2014,2014.
o !FRS¡FRS 1111 "Joint“Jolnt arrangements":arrangements’: This wlllwill repiacereplace thethe current IASlAS 31. The fundamentalfundamental change withwith respect toto theme currentcurrent standardstandard isis theme eliminationehminatlon ofof theifie proportionateproportionate consolidationconsolidation optionoptian forfor jointly-jaintly controliedcontrolled entities,entities, whichwhich willwillbe be equityequity consolidated.consolidated. AithaughAlthoughmis this standardstandard is mandatory for allsil annual periodspeñods commenclngcommencing onon oror afterafter 11 JanuaryJanuary 2013, as per theffie effectiveeffective date stipulatedstipulated by methe IASB, for forEuropean European UnionUnionpurposes purposesme the effectiveeffectivedate date raterarefers toto peñodsperiods commencing onon or after 1 January 2014.
o IFRSFRS 12 "DisclosureTMDisclosure ofof interesteinterests Inin other entities’:entities": ThisThis disclosuredisclosure standardstandard groupsgroups togeffiertogether allaH the accounting disclosure requlrementsrequirements appflcableapplicable toto interests Inin otherother entitiesentities (whether(whether subsidiaries,subsidiadas, associates, jointjoint venturesventures oror otheramor Interests)lnterests) andand Includesincludes newnew disclosuredisclosure requirements.requiremente. AlthoughAimough this standard isle mandatorymandatory for alIall annualannual periodsperiods commencingcommencingon onor orafter after1 1January January2013, 2013, asas per the effective datedate stipulated byby methe IASB, forfor EuropeanEuropean Union purposespurposes thethe efffictiveeffective datedate refers totú peñodsperiods commenclngcommencing onon or afterafter 11 JanuaryJanuary 2014.
o !FRSFRS 14 "Regulatory“Reguiatory deferraldeferral accounts”:accounts": IFRSIFRS 1414 applies aniyonly toto flrst-timefirst-timeadoptera adopters ofof ¡FRSIFRS 11 and ailowsallows themthem toto continue túto recognize amaunteamounts related to raterate regulationreguiatian inIn accordanceaccordance with the policies apphedapplied priorpriorto to methe adoptionadoption of IFRSIFRS withwiffi respectrespect toto theffie recognition,recognition, measurement,measurement, impairment andand derecognition ofof mesethese balances. However,However, inin orderorder toto enhanceenhance comparabilitycomparabiifty withwith entities already applying ¡FRS IFRSmat thatdo donot notrecognize recognizemase those amounft,amounts, methe standardstandard sfipuiatesstipulates thatthat methe C efredeffect of sudisuch rate regulation must be presented separatelyseparately fromfmm otherother items.teme. AnAn entity matthat already presentepresents itsits financial statementsstatements under !FRS¡FRS cannot apply misthis standard. This standard comes intohito force on 1 January 2016 andand maymay bebe earlyearly adopted.adopted. ItIt isis notnot mandatory,mandatory, butbut entitiesentities thatmat willwlll apply the guidance shouldshould beginbegin toto considerconsider theirmeir implicationslmpllcations inIn relationrelatlon to the adoption of IFRS.
24 oo IFRSIFRS 10 (Amendment), IFRS 11 (Amendment)(Amendment) and IFRSFRS 1212 (Amendment)(Amendment) "Consolidated“Consolidated financialfinanclal statements,statements, jointJoint arrangementearrangements andand disclosuredisclosure ofof interestsinterests inin otherother entities:entities: TransitionTransWon Guidance”:Guidance": TheThe differencesdifferences betweenbetween thethe ‘control’"control"concept concept underunder IFRSIFRS 1010 andand IASlAS 27/SIC27/SIC 1212 maymay require enan entity previouslypreviouslynot notconsolidated consolidatedto toconsolidate consolidateand andvise viceverse. versa. lfIf thethe conclusion regardingregardingthe the needneed to consolidateconsolidate changeschanges on first-timeflrst-Ume adoptionadoption ofof IFRSFRS 10,10, thethe comparativecomparative InformationInformation forfor the lmmediatelyImmediatelypreceding precedingpedod periodmust mustbe be restated,restated, unless thisthis isis impracticable.impracticable. AnyAny difference arisingañsing fromfromthe the appllcahonapplicationof ofIFRS IFRS10 10st at methe startstart of methe comparative pehodperiod 15Is taRentaken to equity. Conversely,Converse[y, whenwhen ffiethe decision on ffiethe need toto consolidateconsolidate does notnot changechange onon first-timeflrst-Ume adoptionadopflon of IFRSFRS 10, no accountingaccounting adjusbiientadjustment isis required.required. ThisThis assistanceassistance relatingrelatlng toto ffiethe flnsWontransition toto methe new regulations alsoalso applies to investees disposeddisposed ofof priorprior to theifie date ofof first-timeflrst-tlme adoption. ComparativeComparative disclosuresdisclosures areare necessary underunder IFRSFRS 1212 InIn relationrelation to subsidiaries,subsidiades, associates andaid jointjoint ventures;ventures; thisffiis isis limitedlimited toto ifiethe lmmediatelyimmediately pracedingpreceding comparativacomparative peñod.period. NoNo comparativecomparative informationinformation ciion non-consolidated struduredstructured entitiesentitiesneed need bebe disclosed.disclosed. The‘[he amendmentamendment of theme above-mentionedabove-mentioned standardsstandards Isis mandatorymandatory forfor silall penadaperiods commencingcommencingon on oror altarafter 11 JanuaryJanuary 2014, in accordance withwiffi theme effectiveefcVve datesdates of the amended standards. They must be early adopted if thethe standards Inin questonquestion areare also eadyearly adopted.adopted.
o• IFRSFRS 1010 (Amendment),(Amendment), IFRSIFRS 1212 (Amendment)(Amendment)and and lASIAS27 27 (Amendment)(Amendment)“lnvestment Investment entities":entibes”: ThlsThis includesincludes amendmentsamendments forfor entitiesentities thatthat meetmeet methe definitiondefiniton of ofan an “investnent"investmententity” entity'and and thatthat have speciflcspecific characteristios.characteristics.Amendments Amendmentshave havealso alsobeen beenmade madeto to IFRSFRS 12 toto bringbñng inin reportingreporting 4 6 mquimmentsrequirementsffiat that anan entity ofof this kind must includeInclude in itsita consolidatedconsolidated annual accounffi.accounts. The amendmentamendment of mesethese standards mandatorymandatory forlar allsil financlalfinancialyears years staftngstarting onon oror afterafter 11 JanuanyJanuary 2014. TheyThey maymay bebe eadyearly adoptad,adopted, pmvidedprovidedsil allthe theabove-montoned above-mentionedamendments amendmentsam areadoptad adoptedst atme thesame same time.time.
C oo lASIAS 1919 (Amendment)(Amendment) “Defined"Definedbeneflt benefitplans: plans: EmployeeEmployee conffibution&:contributions":‘[Ns Thisamendment amendment appliesapplies toto conffibutionscontributionsby byemployees employees oror tNrdthirdpartes parties toto defineddefined benefltbenefit plans.plans. ‘[heThe purpose isIs toto simplifysimphfy ffiethe accounungaccountingtmatment treatmentof ofconbibubons contributionsthat thatare areunrelated unrelatedto tome the numbernumberof of yearsyears ofof seMce,service, e.g.e.g. employeeemployee contributionscontributionscalculated calculatedbased based onon aa fixed percentage of their salary. IASlAS 19 (revised inIn U 2011)2011) dlstinguishesdistinguishes betweenbetween employeeemployeecontñbubons contributionsrelated relatedto toand andnot not relatadrelated toto seMce.service. ‘[heThe currentcurrent amendmentamendment sisoalso distinguishes between contributionscontñbutlons related to service only in thethe period in whichwhichthey they arisearise andand contributionecontributionsrelated relatedto toseMce serviceover overmore morethan thanono onepedod. period. The amendment allowsallows contributionscontributionslinked linkedto toseMce servicethat thatdo donot notchange changebased based onon thethe durationduraton of thethe employee’semployee's LI seMceservice to be deducted fromfrom the cost of benefitabenefits accrued inIn ffiethe periodpedod inIn which thethe relevantrelevant serviceservice lais provided.provided. ContributionsContdbutions linkedlinkedto toservice serviceand and whlchwhichvary varybased based onon thethe duration ofof thethe employee’semployee's seMceservice must be apportionedapportoned overovar the serviceservice provisionprovision period uslngusing ffiethe same allocationallocation method appliedapplied toto methe benefits; misthis means either applyingapplying methe pension plan formula sr,or, wherewhere methe plan providesprovides aa significantlysigniflcantly higher higherlevel levelof of benefltbenefit forfor serviceservice inIn later yeans,years, applyingapplying a straight-linestraight-line method.method. ibisThis amendmentamendment is5 applicable retrospectivelyretvspectvely inin financialfinancialyears years beginningbeginning onon oror afterafter 1 July 2014.2014. Early adoptionadoption isis permitted.permitted.
oo IFRICIFRIC21 21tevies”: "Levies":ibis Thisis isan aninterpretaton interpretationof oflAS IAS37 37?rovisions, "Provisions,contngent contingentasseft assets andand contngentcontingent habilites’liabilities"that thataddresses addresses methe accounting freatnenttreatment of levies imposed by publicpubhic administratons,administrations, omarother thanthan income taxtax and fines or penaltiespenaltes imposedimposed due toto theme Infringementinffingement of legislation. TheThe mainmain issueissue ralsedraised is when the entityentlty must recognizerecognize a liabilityllability duedue toto methe obligationobligaton teto pay a levylevy recognizedrecognized underunder lASIAS 37.37. IASlAS 37 stipulatesstlpulates thethe conditionsconditions forfor theme recognitionrecognition ofof aa liability,llablhity, onoone of which isis thatthat methe entity mustmust havehave aa present obligationobligaton asas a resultresult of a pastpast event.event The‘[he interpretationintenpretaton clarifiesciarifles thatthat methe eventevent requiringrequldng and giving risorise to a liabilityllability for forthe thepayment payment ofofa a levylevy isisthe the activityactivitydescribed described inin thethe rehevantrelevant legislationlegislationthat thatcauses causes the payment of theme levy.lew. The interpretationinterpretaton lais mandatory in sIlall pedodsperiods commencingcommencing onon oror afterafter 11 JanuaryJanuary 2014,2014, almoughalthough Itit maymaybe be eadyearly adoptad;adopted; thethe GnoupGroup earlyearly adoptedadopted thlsthis lnterpretatoninterpretation inIn 2013.2013.
25 2.1.2 JointJolnt venturesventuras
“Jolnt"Joint ventum&ventures" amare invesúnentsinvestments in entities thatthai areare notnot subsidiariessubsidiañes butbut areare controlledcontrolled jointlyjointly by two or more unrelated entities.entiuies.
The annual accounts ofof Investeesinvestees classifiedclassifled as jointjoint ventures aream consolidatedconsolidated withwith those ofof the EntityEntity using ffiethe proportionate consolidafionconsolidationmeffiod methodsuch suchthat thatffie the balancesbalances on the consolidatedconsolidated balance sheet andand consolidatedconsolidated income statementstatement areare aggregatedaggregated andand thethe balances and the effectseffects of the tmnsactionstransactions carriedcarñed out with Group companiescompanies are eliminated solely Inin proportionproportionto tothe the Group’sGroup's share.share.
The companycompany "LiquidambarTMLiquidámbar InversionesInversiones Financieras,Financieras, S.L.TMS.L." isis treated asas a ajointly-controlledjolntly-controlled entity,entity, despite holding aa 14.74% interest, as joint controlcontrol isis providedprovidedby bya ashamholder shareholder agreement.agreement.
Appendix II providesprovides mlevantrelevant informationinformationon onffiese these entibes.entities.
In Note 12.3 provides information on onme the mostmost significantsignificantacquisWons acquisitionsthat thathave have takentaken placeplace in 2013 jolntjoint venturasventures andand newnew shamsshares inin theme capitalcapital ofof companies,companies, thatmat already hadliad thismis wholewhole businessbusiness condition atat beginning of year.year.
2.1.3 AssociatesAssociates
"Associates"°AssociatesM areare all theffie entitiesentities overover whichwhich thethe EntityEnbty hashas significantsigniflcant influenceinfluence but notnot controlcontrol or joint control. SlgnificantSignificantinfluence influencegenerally generallyaccompanles accompanies a directdirector or indirect shareholdingshareholding of 20% or more of thethe voting rights.ñghts.
At 31 December 2013, Grupo Hoteles Playa, S.A.,SA., Alestis Aerospace,Aerospace, S.L.S.L. andand Deoleo, SA.S.A. amare deemed to be associates,associates, sincesince atat leastleast 20%20% theirffieir votingvoting rightsñghft aream heldheid byby theme Group.Group. TheThe mainmain reasons forfor consideringconsidedng that methe Group has significantsignificant influence ininmese these entitiesentities amare described below:below
o As regards theme interestinterest inin Grupo Hoteles Playa, S.A.,SA., the Unicaja Banco GroupGroup hashas enteradentered into shareholdershareholder agreements thatthat provideprovide aa qualifiedqualified majoritymajoñty vote.vote. AmongAmongother otheraspecta, aspects, thethe agmementsagreements requiresrequires unanimousunanimous supportsuppoft forfor anyany alterationalteration affecting capital,capital, thethe company and its by-laws, thethe annual budget, strategicstrategic plans,plans, financingflnancing and any relevantrelevant investmentInvestment or divestnentdivestment decisions,decisions.
o With respectrespect to AlestisAlestis Aerospace,Aemspace, S.L., methe UnicajaUnicaja Banco Group has enteredenterad Intolnto shareholder agreementsagreements allowingallowingit itto to sftsit on thethe BoardBoard ofof Directors,Directors, participateparticipate in theme organisation and and activitiesactivitiesof ofme thegoveming governingbodies bodiesand andlake takepali, part, oror inIn sornesome cases veto,veto, buslnessbusiness decisions. The‘Pie Group is alsosiso authorizedauthorized to appoint a total of threemme board directorsdiractoys designated jointly withwithother other shareholders,shareholders, mpresentngrepresenting 50%50% ofof thethe total number of board directoradirectors.
o As regartisregards the interestinterest Inln Deoleo, S.A.,SA,, the Unicaja Banco Group is entibedentitled toto a total of thmethree board directors.
In the consolidated financialfinancialstatements, statements,assodates associates areare consolidated usingusing thethe equity method, as defined Inin prevailingpmvaillng legislation (IAS(lAS 26).28). lfIf asas aa result ofof losseslosses incurredIncurred byby enan assodateassociate itaits equity isis negative,negative, ininffie theconsolidated consolidatedbalance balance sheetsheet would appearappear of the Group with a nil value,value, unless theme GroupGroup is required to provide financial suppoft.support.
Appendix III provides providesrelevant relevant informationinformationon onthese these entities.
27 The fair value of derivativasderivatives notnottraded traded inin organisedorganised markets,markets, oror tradedtraded inin organisedorganised marketsmarkets thatthat are not deep or transparent,transparent, isla equalequal toto thete sumsum ofof thete futurefuture cashcash flowsflows generatedgenerated byby thethe Instrument,instwment, discounted at thete measurementmeasuremont datedate ("present(tpresent value"valuet oror "theoreticaltflieoretical close"),ciose9, employingemploying valuationvaluation techniques acceptedaccepted byby thete financialfinancial markets:markets: "nettnet presentpresent value"value (NPV),(NPV), optionoption pricingpñcing models, etc.
AmortizadAmortized costcost is tethe acquisitionacquisftion cost of a financialfinancial assetassat oror liabilityhability adjusted (upward(upward or downward) forr capital and interestinterest repaymentsrepaymenta and,and, wherewhere applicable,applicable, forfor thete (higher(higher oror lower)ower) portionporUon (recognized(recognized inin the consolidatedconsolidated Incomeincome statement byby applyingapplying thethe effectiveeffective intemstinterest method) of thethe difference between the initialinihal amountamount and the repaymentrepayment valuevalue ofof thete financialfinancial instruments.Instrumente. TheThe amortizedamortized costcost ofof financialfinancial assets alsoalso includesincludes impairmentImpairment adjustments.
The effective lnterestInterest ratarate is the discountdiscount raterate thatthat bringsbrings thethe initialinitial valuevalue ofof aa financialfinanclal instrumentinstrument exactly into lina with total estimated cash fiows throughout ita residual li. In te case of fixed-income U exactly into line with total estimated cash flows throughout its residual life. In the case of fixed-income financial instnimenta,instruments, tethe effectiveeffective interestinterest ratarate lais equal to thete contractualcontractual raterata defineddefined onon acquisition,acquisition, adjusted forfor commissions and transaction costscosta thattat mustmust bebe Includedincluded inin thethe calculationcalculation ofof thete effectiveeffective interestInterest rata,rate, underunder IASlAS 39.39. TheThe effectiveeffective interestinterest raterata forfor variable-ratevariable-rata financialfinancial Instrumentsinstwments isa estimated Inin tethe same wayway asas forfor fixed-incomefixed-Income transactionstransactions andand jais recalcuiatadrecalculated at asciieach interestintarest reviewreview U date statedstated inin thete contract,contract, takingtaking intointo considerationconslderation changeschangas Inin the transactionstransactiona futureMure cashcash flows.¡Iowa.
2.2.4 ClassificationClassiflcahon andand valuationvaluation ofof financialfinanclal assets andand liabilitiesliabilwes
U FinanclalFinancial instrumenteinstruments areare classified into tethe followingcategohes categories inin thethe Group’sGroup's consolidated balance sheet:
- FinanclalFinancialasuets assets and liabilitiesllabilities atst fairfalr value through pmfltprofit oror lose:loss: luisThis category includesIncludes financialfinancial instwmentsinstruments forfortradlng tradingand and otherother financialfinancialassets assets and liabilitieshabilites classiñedclassified asas at fair value thmughthrough profit oror loas:loss:
- "Financial“Flnanclal assetaassets heldheld forror trading"tradlng” are assets acquiredacquired inln orderorder toto be realizedrealizad inin tethe U short termterm oror whichwhlch formform part ofof aa portfolioportfthlo ofof financialfinancial InstrumenteInstruments idantfledidentified oror managed jointy,jointly,for forwhich whichtare thereis isevidence evidence ofof recentrecent actionsactions takentaken toto obtalnobtain short-term gains, and derivativaderivative financlalfinancialInstrumente instruments notnotdesignated designated asas hedge instruments,instrumente, includinginduding instwmentsinstruments segregated from¡mm hybridhybrid financialfinancial instrumentsinstrumente (IAS(lAS 39). U - "Financial“Flnanclal llabllWesliabilities held forlar trading"tndlng” are liabilitiesliabihitias issuedissued forfor repurchaserepurchase in tethe near futurafuture or thattat formform partpart ofof aa portfolioportfolio ofof financialfinancial instrumentsinstrumente identifiedidentifled or managed jointlyjointly for whichwhich tarethere lais evidence of recent actions toto obtainobtain short-termshort-term gains,galns, shortshort positionsposltions inin securities arisingañslng ¡mmfromsales sales ofof asseftassets acquiredacqulred under non-optional repurchaserepurchase agreementeagreements and loansloana ofof securities,sacurities, andand derivativederivativo financialfinancial ¡nstrumentsinstrumentsnot not designateddesignated asas hedge instruments, includingincluding Instrumenteinstruments segregated fromfrom hybridhybrid financialfinanclal Instrumente.instruments.
- "Other“Other financialfinanclal assetsasaete oror liabilitiesllabllwes atat fair(sir valuevalue throughthrough profitprofit or loas”loss" they are dasignateddesignated asas financialfinancial assetsassets oror liabilitiesllabilities inin theirthair initialinitial recognition,recagnition, thete fairfair valuevalue ofof which can be estimated inin a reliablereliable manner and thistus designation can be applied to:
(i)(u) hybrid asseteassets andand liabilitieshiabilwes forfor whichwtiich thete implicitimplicit derivativesderÑatives cannot be separately valuedvaluad inin a reliablereliabla manner, thetha separationseparafion ofof thesetese isis obligatory,obhlgatory,
(u)(ii) hybrid financialfinancialassate assets and liabilitiesliabilwas as aa whole,wbole, designateddeslgnated fromfrom theirteir initialinftial recognition, except whenwhan thethe implicitlmplicit derivativesderivativas do notnot significantlysigniflcantly modify thathe cashcash flowsflows that, inin anotheranotar way, thete Instrumentinstwment would hayahave ganeratadgenerated oror whenwhen thete hybridhybrid Instrumentinstrument was firstflrst consideradconsidered thete prohibitionprohibition of separating from tethe implied dedvativesderivatives waswas evident,
(iii)(iü) financial assetsassets andand liabilitieshiabilWes on whichwhlch moremore relevantrelevant InformationInformation isa obtainedobtalned bacausebecause withwit thistis there isla aa significantslgnificant reductionreduction in tethe incoherenciesincoherencias inin the recognitionrecognition or valuation (also(also called accounflngaccounting asymmeffias)asymmetries) tatthat wouldwould arisearise in tethe valuationvaluabon of tethe assetsasaete oror liabilities,habilites, oror throughtrough thete recognitionrecognition ofof gainsgama oror lossesloases withwith differentdifferent criteria,criteda, 29 (iv)(iv) financlalfinancialassets assets and liabilitiesllabilities onon whlchwhich more relevant informationinformatlon ¡5is obtainedobtained duedue loto ffiethe existence of a groupgroup ofof financialfinanclal assets oror liabilitieshabilities Inin eacheach case fromfrom which moremore relevantrelevant informationinformationis isobtained obtainedbecause becausethere thereis is aa group ofof financialfinancialassets, assets, or of assetsassets and financialfinanclal Nabilitiesliabilitiesthat thatare aremanaged managed andand theirtheir yieldyieldis isvalued valuedbased based uponupon meirtheir fairfairvalue, value,in inaccoitance accordance withwitha adocumented documented managementmanagement risk oror investrnentinvestment strategystrategy andand methe informationInformationon onmis thisgmup groupLs isalso alsosupplied suppliedbased basedupon uponffie the fairfair valuevaluelo to methe key managementmanagement personnel.personnel.
-- Held-to-matirftyHeld-to-maturityInvesttienft: investments: itit includes debt securitiessecuhties withwim fixedfixed maturitiesmatuñties andand identifledidentifiedor or¡dentiflable identifiablecash cashflows flowsmat thatare areclassifled classifiedby bythe the EntttyEntity stat initial datedate and subsequently,subsequently, with the Intention andand financial capacitycapacity to hold memthem until matuñtymaturitydate. date.
TheThe debtdebt securities includedIncluded in thisthis category are Initially¡nitially carried carriedst at fairfairvalue, value,as as adjusted for transachontransactioncosts costs directydirectlyattñbutable attributableto tothe the acquisltlonacquisitionof ofIhe the financialfinancialasset, asset, whlchwhich areare recognizedrecognized inInthe the incomeincomestatement statement uslngusing methe effectiveeffectiveinterest interestmethod methodas as defineddefined Inin lASMS 39.39. TheyThey areare subsequenflysubsequently carriedcarried alat amortizadamortized cosI,cost, calculatedcalculated basedbased on methe effective interestinterest rate.rate.
-- LoanoLoans and receivables:recelvables: thisthis category includesincludes unlistedunlisted debt securities,secuñfles, financingflnancing providedprovidedlo to thlrdthirdpartes parties añsingarisingfmm fromme the ordinaryordinarycredit creditand and loanloan activibesactivitiescardad carried outout byby methe Entity,Entity,and anddebts debtsIncurred Incurredby byassel asset buyersbuyers andand byby seMceservice users.users. It alsoalso Includes financefinance leaselease fransactionstransactions wherewhere ffiethe entiliesentitiesare arethe the Iessors.lessors.
TheThe financlalfinancialassets assets included in Ihisthis category are initially carded carriedal at fairfairvalue, value,as as adjustedadjusted for commissionscommissions andand transactiontransaction costecosts directly aftdbutableattributableto to thethe acquisitionacquisition ofofthe the finandalfinancialasset asset andand which, underunder Bank ofof SpainSpain Circular 412004 4/2004(22 (22 December),December),must must bebe recognizedrecognized inin thethe incomeincome stalementstatement using theme effectiveeffective interestInterest method,method, toto maturity.maluñty. FollowingFollowing acquisition, thethe assetsassets are carried atst amortized cost.cost.
AssetsAssets acquiredacquired alat aa discount areare recordedrecorded stat methe cashcash amount paid and methe difference betweenbetween methe repayment valuevalue andand matthat cashcash amountamount isis recognizedrecognized asas financialfinandal incomeincome applyingapplying methe effecflveeffective interestinterest methodmethod duñngduring methe pedodperiod loto matudty.maturity.
InIn generalgeneral termsterms itit isis ffiethe intention ofof methe consolidatedconsolidated companiescompanies hoidholdme the loansloans andand credits grantedgranted loto maturity, and andtherefore thereforepresented presented inin methe consolidatedconsolidated balancebalance sheetsheet atal amortized cosI.cost.
TheThe inlerestinterest accmedaccrued Qnon Ihesethese assets,assets, calculatedcalculated usinguslng thethe effectiveeffective interestinterest method, ¡ais recognizedrecognized inin thethe caption “lnteresl"Interest andand Similar lncomWIncome"in inthe the incomeincome slatement.statement. Exchange differencesdifferences onon secuñtlessecurities denominateddenominated inin forelgnforeigncurrency currencyomer otherman thanlhe theEuro Euroare areregistered registeredas as mentionedmentionedin inNote Note2.4. 2,4.Posslble Possibleimpalrment impairmentlosses losseson onIhese theseassels assets areare recorded as indicated Inin Note 2.7. DebtDebI securitiessecudties Included In In fairfairvalue value hedgedhedged lransactlonstransactionsare are recordedrecorded asas menionedmentioned InIn NoteNote 2.3.2.3.
-- Avallable-for-saleAvailable-for-salefinanclal financialassete: assets: thlsthis calegorycategory includesincludes debldebt secudtiessecurities notnol classifiedclassifled asas held loto matuñly,maturity,such such asas loans and receivables, or as atal fairfair value through ProfitProflt oror loss,loss, andand equityequity inslrumentsInstrumentsowned ownedby by UnicajaUnicaja relatingrelatinglo to enhIlesentities whichwhich areare not subsidiaries,subsidiades, joint venturesventures oror associates,associates, andand whichwhich have notnol beenbeen classifiedclassified atat fairfair value through profit oror loas.loss.
TheThe ¡nslwmenlsInstruments includedincludedIn inthis this calegorycategory areare initiallymeasured measured atat fair value,value, adjusledadjusted for transacliontransactioncosts, costs, whlchwhich areare recognized until maturilymaturityin inIhe the Incomeincome slatementstatement usingusing thethe effectiveeffective¡nteresl interestmethod, method. Ininloe the casecase Inin whlchwhichthe the financialfinancialassets assets have no fixed maturihes,maturities, lheythey areare accounledaccounted loto Ihethe IncomeIncome slatementstatement when they become impairedimpaired or writtenwdtten offofflhe the balancebalance sheet.sheet. Followingacquisilion, acquisition,the thefinanclal financialassets assets includedincludedIn InIhis thiscalegory categoryare are carriedcarried alat fair value.value.
3030 Nonetheless,Nonetheless,equity equity instruments,instruments,which whichfair fairvalue valuecannot cannot bebe determined in aa sufficientlysufflciently objectiveobjectivemanner, manner,are are carriedcarriedat at costcost ininthese these annual accounts, net of impairment asas explained inin NoteNote2.7. 2.7.
BalancingBalancingentiles entries areare registered In 9nterest"Interest and Similar lncomeIncome" (calculated(calculated usingusing thethe elfectiveeffective lnterestInterestmethod) method)and and "ReturnRetum on on EquityEquityInstrumente” Instruments"in inffie theincome incomestatement, statement,with withrespect respect toto changeschanges in methe fair valuevalue ofoffinancial financialassete assets dassifledclassified asas availableavailable (vrforsale, sale, relabngrelating toto interestinterest oror dMdendsdividendsaccrued, accrued,mspecfively. respectively.lmpairment ImpairmentIosses losses01 onthese theseinstrumente instrumentsare are recordedrecordedas as menVonedmentioned inIn NoteNote 2.7.2.7. Exchange diftrencesdifferences Qnon financial assetsassets denominateddenomlnated inIn foreignforeign currencycurrencyother otherthan thanffie the euroeuro areare accountedaccounted as mentioned in Note 2.4.2.4. Changes in ifiethe fair valuevalue ofoffinancial financialassets assets coveredcovered bybyfair fairvalue valuehedges hedgesam are registeredregistered asas mentioned in Note 2.3.2.3.
AA balancngbalancing entryentry 15is mademade in “Valuation"Valuation Adjusffiients”,Adjustments",in inthe theEntitys Entity'sequity, equity,with withrespect respectlo to thethe remalningremainingchanges changes toto the fairfair valuevalue fromfrom thethe acquisitionacquisition datedate ofof available-for-saleavailable-for-sale financialfinancial asaeteassets untiluntil methe financial assetasset is wñftenwritten off,off,when whenthe the balancebalance Isis takentaken toto GaIns"Gains (Losses)(Losses) Qnon non-currentnon-currentasaete assets heldheld brfor sale notnot classifiedclasslfled asas discontinueddiscontinued operations"operatlons” in the IncomeIncome statement.statement.
-- FinanclalFinancialllablllties liabilitiesal atamortizad amortizedcost cost misthis categorycategory ofof financialfinancialinstrumente instrumentsrelates relates toto financialfinancialliabilities liabilitiesthat thatare arenot not includedincludedIn in anyany ofof thethe previous categories.categodes. FinancialFinancial liabilitiesliabilities includedincludedIn inthls thiscategory categoryare are lnitlallyInitiallycarried carriedat atfair fairvalue valueadjusted adjusted(vr fortransactlon transactioncosta coststhat thatmay may bebe dlrectlydirectly attributabieattributableLo to methe issue ofof theifie financialfinancial liability,liability, wbichwhichwill willbe be allocatedallocatedte to methe consolidatedconsolidated incomeincome statementstatement toto matiñty,maturity, usingusing methe effectiveeffective intemstinterest ratarate memodmethod defined in lASIAS39. 39.They Theyare aresubsequently subsequently valuedvalued atat amortizadamortized cost,cost, calculatedcalculated usingusing methe effacbveeffective interestInterest raterate memodmethod defineddefined in lASIAS 39.39.
TheThe llabilitiesliabilitiesissued issuedby byme the consolidatedconsolidated entitiesentities which,which,having havingme the legallegal naturenature ofof capital,capital, dodo notnot frilfilfulfilme theconditions conditionslo tobe beclassifled classifiedas asequity equity underunder ¡ASIAS32, 32,Le., i.e.,basically basicallyshams shares issuedissued byby thethe consolidated entitiesentities thatthat do not carry votlngvoting ñghtsrights andand entitleentitle thethe holders loto dividends in thethe eventevent thatthat certain conditionsconditions areare met,met, areare classifiedclassifled asas financialfinancial liabilitiesliabilities atat amortizedamortized costcost exceptexcept ifif thethe GroupGroup hashas designated them asas financialfinancial liabilities al at (sirfairvalue value throughmrough profitproflt oror lossloss andand providedprovided thatthat methe relevantrelevant conditionsconditionsare are met.met.
AccruedAccrued interestintereston on mesethese securities, calculated throughthrough methe effective interestinterest raterate methodmethod ¡ais reflectedreflected underunder “lnterest"Interestand and similarsimilarcharges charges"in inme theconsolidated consolidatedincome incomestatement. statement. ExchangeExchange differencesdifferenceson onsecurities securitiesdenominated denominated¡n ina a currencycurrencyomer otherthan than thethe euro, included inin thisthis poñfollo,portfolio,is isreflectad reflectedIn in accordanceaccordance withwith Note 2.4. FinancialFlnanclal liabilitiesliabililies inin (sirfair valuevalue hedging fransactionstransactions areare reflected inin accordanceaccordance with NoteNote 2.3.2.3.
Nonetheless,Nonetheless,financial financialinstrumente Instrumentswhich whichshould shouldbe beconsiderad consideredas asnon-current non-currentasaete assetsheld heldfor for salesale in accordanceaccordance wimwith ¡FRSIFRS 55 areare reflectadreflected ininme the consolidatedconsolidated financialfinancialstatemente statements asas mentioned inin NoteNote 2.20,2.20.
ReclassiflcationsReclassifications betweenbetween financial lnstnsmentsInstruments poftfoliosportfoliosare aremade made accordingaccording toto thethe followingfollowingassumptions: assumptions:
i. ExceptExcept InInthe thecase case iv) stetedstated below, thethe financial Instrumenteinstruments maymay notnot bebe reclassifledreclassified into oror outout ofofthe the categorycategory assessedassessed atat fairfair value through profitprofitand andloss, loss,once onceacqulred, acquired,issued issuedor orassumed. assumed.
II. AA financialfinancialasset, asset, whichwhlch intent or financialfinancial capacity changes,changes, isis classifiedclassifled from(mm "Held-to-maturity“Held-to-matudty lnvestments”Investments" teto “Available-for-sale"Available-for-salefinancial financialassete”. assets". InIn misthiscase, case, methe same treatment isla applied toto all financlalfinancialinstrumente instrumentsheld-to-maturity held-to-maturityexcept exceptunder underme theclrcumstances circumstancesstated stated byby thethe applicable lawlaw (sales(sales close to maturity date,date, oror onceonce recelvedreceived major partpart ofof methe financialfinancialassete assets principal,principal,or orsales sales atributedattributedlo to aa non-recurñngnon-recurringeveni eventthai that couldcould notnot havehave beenbeen anticipated by methe Entity).EnLity).
InIn2013 2013 ifiethe GroupGroup soldsold aa part of itsita held-to-maturityheld-to-matuñty debtdebt secuñflessecurities (Note 9.4). The flnsactiontransaction fulfilsfulflls thethe requirementsrequiremente of paragraphparagraph GA220A22 ofof IASlAS 3939 "Financial“Financial Instruments:instrumente: recognitionrecognwon and measurement”measurement"and and thereforethereforethe the remainder ofof methe held-to-maturityheld-to-matuñty debt debtsecurifies securitiesneed neednot not bebe reclassifledreclassified loto methe avallable-for-saleavailable-for-sale porifolio.portfolio. U 3131 u ti U U
‘rileThe fair valuevalue of derivativasderivativesnot notfradad traded inin organisedorganised markets,markets, oror fradadtraded inin organisedorganised marketsmarkets matthat are not deepdeep or transparent, is equal to theifie sumsum ofof thelila futureMure cashcash flowsflows generatedgenarated byby thethe Instrument,instrument, discounted alat theme measurementmeasurement datedate ("present(‘present value"value’ oror "theoretical‘tileoretical close"),ciose9, employingemploying valuationvaluation U technlquestechniques acceptedaccepted byby theffie financialfinanclal markets:markets: "net‘net presentpresent value"value’ (NPV),(NPV), option pricingpñclng models,models, etc. AmortizadAmortized costcost is the acquisition cost of a financialfinancial asset oror liabilityIiabllity adjusted (upward or downward) for capital andand interestInterest repaymentsrepaymenta and,and, wherewhere applicable,appllcable, forbr thema (higher(hlgher oror lower)lower) portionportion (recognized in ffiethe consolidatednsoIidated income statement byby applyingapplying theme effective Interestinterest method) of thethe difference between lilathe initialinihal amountamount andand thethe repayment valuevalue ofof theffie financialfinancial instruments.instrumenta. TheTile amortizedamortizad costcost ofof financialUnancial assets alsosiso includesincludes impairmentimpairment adjusfrnenft.adjustments. rl The effectiveeffechve lnterestinterest ratarate Is the discountdiscount raterata thatthat bringsbñngs thethe initialInitial valuevalue ofof aa financialfinancial InstrumentInstrument exactly mbinto uneline withwithtotal totalestimated estimated cashcash flows throughoutthroughout Itaits residual life.Nfe. lnIn thethe case ofof fixed-incomefixed-Income U financlalfinancial lnstwments,Instruments,lila the effectiveeffectiveinterest interestrata rate isis equalequal toto ffiethe contractual rate defined onon acquisition,acqulsition, adjusted forbr commlssionscommissions and transaction costscosta thatthat mustmust bebe IncludedIncluded inIn thethe calculationcalculation of ffiethe effectiveeffactive fi interestinterest rata,rate, underunder lASIAS 39. The‘rile effectiveeffective interestinterest raterata forbr variable-ratevariable-rata financialfinancial instrumentsIristrumenta isla estimated in tethe samasame way as forbr fixed-income transactionstransactions andand is recalculatedrecalculated stat eacheach interest review U date stated Inun theme contract,confract, taking intorito conslderationconsideration changeschanges in methe transactions futurefutura cash flows.
2,2.42.2.4 ClassificationClassification andand valuationvaluation ofof financialfinanclal assets andand liabilitiesliabilities
U FinanclalFinancial lnstrumentsinstruments areare classlfladclassified into thethe following categodes categories InInthe the Group’sGroup's consolidatedconsolidated balancebalance sheat:sheet:
- FlnanclalFinancialanata assets and liabilitiesllablIlbes at fairfalr value through profltprofit oror loas:loss: TiliaThis category IncludesIncludes financlalfinancialinstwments instruments brfortradlng tradingand and otilarother financialfinancialasseft assets and liabilities classifledclassified asas atat fairfair valuevalue throughthrough profit oror loas:loss:
11 - "Financial“Flnanclal asaeteassets heldheld farlar trading"tradlng” are assetsasaete acquiredacquirad inIn order tolo be realizedrealized in tilothe short termterrn or whichwhlch formform part of aa portfolioportfolio of financial instrumentsinstruments idantifledidentified oror managadmanaged Jolntly,jointly,for forwhich whichtham thereis isavidence evidenceof ofracent recent actlonsactions takantaken toto obtalnobtain short-termshort-term gains,gains, and derivativaderivative financialfinancialinstwments instrumentsnot notdesignated designated asas hedge instruments, includingindudlng lnstwmentsinstruments segregated fromfrom hybridhybrid financialfinancial instrumentsinsfrumanft OAS(lAS 39).39).
- “Flnanclal"Financial llabilitiesliabilities held forlar tradlng”trading" are liabilitiesliabilWes issued issued larforrepurchase repurchase Inin lilathe nearnear Murefuture or malthat formform part ofof aa portfoliopartfolio ofof financialhnancial instrumentsInstrumanta identifiedidentifled or managedmanagad jointlyjointly 1 for whlchwhich Iberathere IsIs evidanceevidence of recantrecent actions to obtainobtain short-termshort-term gains,gama, short positionspositions inii U sacuritiessecurities arising fromfromsalas sales ofofassats assets acquiradacquired under non-optional repurchase repurchase agreementaagreements and loansloans ofof securities,sacuvitias, andand derivativederivativa financial instrumantsinstrumentsnot notdasignatad designated asas hedgehadge instrumenta,instruments, includingincludlng instrumentsinstruments segregatadsegregated fromfrom hybridhybrid financial instrumente.instruments.
U - "Other“Other financialfinanclal assetsasseta oror liabilitiesllabllltles atat fairfalr valuevalue throughthrough profitproflt oror Ion”loss" thaythey are dasignataddesignated asas financialfinanclal assetsasaete oror liabilitiesliabilitias inin theirIbeir initiallnitial recognition,recognition, theIba fairtelr value ofof whichwhicJi can be estimated inin a reliable manner and tiliathis designation can be applied lo:to: U (i) hybrid assetsassets andand liabilitiesllabilitias forlar whichwhlch thethe implicitlmpllcit derivativesderivativas cannotcannot be saparatelyseparately valuedvaluad inin a reliablereliabla manner, thathe separation ofof thesethasa isIs obligatory,obllgatory,
¡1 (Ü)(ii) hybrid financialfinancialassate assets and liabilitiesliabilities asas a whole,whole, designateddesignated fromfrom theirmeir initialInitial U recognition,recognition, exceptexcept whanwhen thetha implicitlmplicit derivativasderivatives do not significantlysignificantly modifymodifyIba the cashcash flows thaI,that, In anotharanother way, Ibathe instrument wouldwould hayahave ganeratedgenerated or whenwhan thete hybridhybrid instrumentinstrument was firstflrst consideradconsidered theIbe prohibitionpmhibition of separatingseparating fromfmm tethe implied derivativasderivatives waswas evident,
(iii) financialfinancial assetsassets andand liabilitiesllabilities on whichwhlch more relevantrelavant informationinformation is obtainedobtalned U bacausebecause withwith tiliathis there isis aa significantsignificant reduction in Ibathe incoherenciesmncoherencies inIn the recognitionrecognition or valuation (also(also calladcalled accountingaccounting asymmetdas)asymmetries)that that wouldwouldarise arise inin thathe valuation of the ¡9 assets oror liabilities,liabilities, orar through theifie recognitionrecognition of galnsgains or lossesloases withwith different criteria,evitada, U 29 [1 u U U
(iv) financlalfinancial asselsassets andand liabilitiesliabihUes on which more relevantrelevant informationinformation Isis obtainedobtalned due to theme existenceexistence ofof aa groupgroup ofof financialfinancial assets oror liabilitiesliabillUas in each casecase fromfrom whichwhich more relevant informafloninformation15 isobtained obtainedbecause becausemere there Isis a groupgmup of financial assets,assets, or of assets andand financialfinandal liabilitiesllabilities ffiat that areare managedmanaged and theirffieir yialdyield isis valuadvalued basadbased uponupan theirmeir U fair value,value, inin accordanceaccordance with aa dacumenteddocumented management riskiisk or investment strategystrategy and thethe informationinformation on onmis thisgroup group¡5 is sIsoalso supplledsuppliedbased based uponupon Piethe fair value toto the keyRey management personnel.
U - Held-to-maturltyHeld-to-maturity investmenb:investments: Itit includesincludes debt securitiessecuritles withwith fixedfixed maturitiesmaturities and identifladidentifiedor or IdentiflableIdentifiablecash cashflows flowsthat thatam are classifledclassifiedby by mathe Entity stat initialinitial datedate andand subsequently, withwith theme IntentionIntention and financialfinancial capacitycapadty to hold ffiemthem untiluniD matuñtymaturity date.date.
The debt securitiessecuñties includedincluded Inin misthis category amare initiallyinWaIly cerned carriedst at fairfair value,value, asas adjusted for tmnsactantransaction costacosts directlydimclly attnibutableattributableto to methe acquisltionacquisitionof of thethe financial asset,asset, whichwhlch aream recognized iiiin thethe income statamentstatement usinguslng theme effective interest method as defineddefined inin lAS 39. They are subsequently carriedcarnied at amortizadamortized cost, calculated based on theffie effective Interestinterest rata.rate.
- Loans and receivables:recelvables; thisthis categorycategory includesincludes unlistedunlisted debtdebt securities,securities, financingflnancing providedprovided toto thirdthird pardasparties arising ftomfrom thethe ordinary creditcredit andand loan activities caniedcarried outout byby thethe t Entity, and and debftdebts incurredincurredby byasset asset buyersbuyers andand by service usars.users. It sIsoalso includes finance leaselease U transactonstransactions where methe entitiesentities areare methe lessors. ibaThe financial asseftassets IncludedIncluded in misthis category amare initiallyinitially cerned carriedst at fairfair value,value, asas adjusted for commissions and transaction costscosta directlydirectly attributableaftñbutable toto the acquisition of thathe financial assetasset and which, under Bank of Spain Circular 4/20044/2004 (22(22 December), mustmust bebe recognized in the incomeincome statement usingusing thethe effectiveeffective interestlntemst method,method, toto maturity.matuñty. FollowingFollowing acquisition,acquisition, the assatsassets areare carriedcarried at amortizadamortized cosicost
1 Assets acquiredacquimd at a discount are recorded at theme cash amountamount paidpaid andand theme differencedifference between U methe repaymentrepayment value and thatthat cashcash amountamount isis recognizedrecognized asas financialfinancial incomeincome applyingapplying methe effective interestinterest method duringduñng methe periodpeñod to maturity.matuñty. p4 In general terms It Is the intentionIntantion ofof thethe consolidated companiescompanies holdhold methe loans and creditscredits U granted to maturity,matuñty, andand thereforetherefore presentadpresented inIn thethe consolidatadconsolidated balancebalance shaetsheet at amortizedamortizad cosicost 1 The Interestlnterest accwedaccrued on thesethase assets,assets, calculatedcalculated usingusing thethe effectiveeffective interestinterest method,method, is U recognizedrecognized inin methe caption 9nterestInterest andand SimilarSimilar Income"lnwm& inin mathe income statementstatement ExchangeExchange differences onon secundessecurities denominateddenominated in foreignforeignoirrency currencyomer otherman thanma the EuroEuroam are registaredregistered asas mendonedmentioned InIn NoteNote2.4. 2.4.Posslble Possiblelmpalrment Impairmentlosses losseson onmese theseassets assets are recorded as indicatedindicated in Note 2.7.2.7, DebtDebt securitiessecuñdas IncludedIncluded inIn fairfair valuevalue hedgedhedged transactionstransactions amare recorded asas mentioned in Note 2.3.
- Avallable-for-saleAvailable-for-sale financlalfinancialasseft: assets: misthis catagorycategory includes debt securities notnot classifiedclasslfled t 1 as heldheld to maturity, suchsuch asas loans and receivables,raceivables, oror asas atal fairfalr valuevalue throughthrough ProfitProAl or loss,loss, andand U equity InstrumenteInstruments ownedowned byby Unicaja relatngrelating toto entities which are notnot subsidiaries,subsidiadas, jointjoint venturasventures aror associates, andand whichwhlch havehaya notnot beenbeen classifiedclassifled atat fairfair valuevalue throughlhrough profitproAl or loss.loss.
The instrumentsinstwments included inin misthis category are initiallyinitially measuredmeasured at fair value, adjusted for transactiontransaction costs,costs, which areare recognizedrecognized until maturityin in methe income statement using theme effediveeffective interestinterest method.method. Inin methe casecase inin whlchwhich thethe financial assetaassets havehaya nono fixed1xed maturities,matunities, theythey are accountedaccounted toto thethe incomeIncome statementstatement whenwhen theythey becomebecome Impairedlmpaired oror writtenwñtten off thethe balance 1) sheet. FollowingFollowing acquisitlon,acquisition,tha the Ananclalfinancialassats assets includedincluded Inin thisthis categoiycategory areare cardedcarried at fairfair U value. ¡1 30 E? u O
O
U Nonetheless, equityequity instruments,Instruments,which whichftir fairvalue value cannotcannot be determineddeterminad inin aa sufficientlysufflciently objective manner,manner, areare carñedcarried atat cost lnin these annual accounts,accounts, netnet ofof impairmentlmpaimient as explained Inin Note 2.7. U BalanclngBalancing entriesentries areare registered in interestInterest andand SimilarSimilar Income"lncomW (calculated usinguslng the effective interestinterest meted)method) and "ReturnaRetum on EquityEquity InstrumentCInstruments" inIn tethe incomeIncome statement,statement, wlthwith respectrespect to changes inin theifie fair value of financialfinancialasaete assets classified as available for sale,sale, relating teto interestinterest oror 1’ dMdendsdividends accwed,accrued, respectively.respectively.lmpalrment Impairmentloases lossesen onmese these Instrumenteinstrumentsare are recordedrecorded asas U mentonedmentioned inin Note 2.7. ExchangeExchange differencesdifferences on financialflnanclal assetsasceta denominateddenominated inin foreignforeign currency otherother thanthan thethe euroeuro areare accounted as mentionedmentioned inIn Note 2.4. Changes inin theme fair value of financialfinancialassets assets coveredcovered by fairfairvalue valuehedges hedges areare registered as mentioned in Note 2.3.
A balancingbalancing entyentry is made inIn "ValuationaValuaban Mjustmenft,Adjustments", InInte the Entity’sEntity'sequity, equity,vth withresped respect toto thethe U remainingremaining changeschanges to thethe fairfair valuevalue fromfroin theme acquisitionacquisWon datedate ofof available-for-saleavaflable-for-sale financialfinancial assets untiluntil thete financialfinancial assetasset is5 writtenwñften aif,off, whenwhen thethe balancebalance is taken tote "GainsaGains (Loases)(Losses) on non-current assets assets held for sale not,rnt classifiedclasaified asas discontinueddiscontinued operations"operations’ in the incomeincome U statement
- FinanclalFinancial liabllWesliabilitiesst atamortized amortizedcost cost misthis category of financlalfinancial instrumentsInstruments relatesrelates toto financialfinancial llabilitiesliabilitiesthat thatare are notnot includedincluded inin anyany of the previousprevious categories.categories. FinancialFinancial liabilitiesllabilities included InIn misthis categorycategory areare lnWallyinitiallycarjied carriedat atfáir fairvalue valueadjusted adjustedfor forfransaction transactioncosta costs matthat mas’may U be directly aftdbutableattributableto to methe Issueissue ofof theme financialfinancial liability,liabllity, whichwhich willwillbe be allocatedallocated teto the consolidated income statementstatement teto maturity,maturlty, uslngusing tethe effectiveeifective ¡nterestinterest ratarate method defined in lASIAS 39.39. TheyThey areare subsequentlysubsequently valuedvalued at amodizedamortized cost, calculated usingusíng the effective interest raterate memodmethod defined inin IASlAS 39.
The llabilitiesliabilitieslssued issued byby thethe consolidated entibesentities whlch,which, havinghaving methe legallegal nature of capital, do n not fulfilfulfilIba theconditions conditionsto tobe beclassifled classifiedas as equityequity under IASlAS 32,32, Le,,i.e., baslcallybasicallyañares shares Issued by tethe consolidated entibesentities matthat do notnot carrycany votingvotlng rightsdghts and entitleentibe tethe holders toto dividendsdividends inin tethe event thatmat certain conditions areare met, areare classifieddassifled asas financialfinancial liabilitiesliabilwes atat amortized costcost exceptexcept if thethe Group has designated themtem asas financialfinsncial liabilitiesliabilities atat fair valuevalue throughmrough profitproM or loasloss and provided tatthat tethe relevant conditions areare met.
U Accrued interestinterest enon thesethese securities, calculated through methe eifectiveeffective interestinterest raterate method ¡5is reflectadreflected underunder lnterest"Interest andand similarsimilarcharges’ charges" ininte the consolidatedconsolidated incomeincome statement.statement. Exchange diiferencesdifferences onon secuñtiessecurities denominateddenominatedin ina a curmncycurrency oterother manthan methe euro, includedincluded in thismis portfolio, is is reflectadreflected inin accordanceaccordance with Note 2.4.2.4. FinancialFinancial liabilitiesliabilibes in fair value hedginghedging L transactionstransactions are reflectedreflected inin accordance withwith Note 2.3.2.3.
r Nonetheless, financlalfinanciallnstruments instrumentswhich whichshould shouldbe beconsidered consideredas asnon-current non-currentassets assets heldheld forfor salesale inin accordance with IFRS 55 areare reflected Inin methe consolidated financial statementsstatements as mentioned InIn Note 2.20.
ReclassiflcationsReclassifications betweenbetween financial insfrumentsinstruments perifollosportfolios areare mademade accordingaccordlng to thete following assumpbons:assumptions:
i.i. Except Inin tethe casecase iv)iv) stated below, the financialfinandal instrumenteinstruments may not be reclassifiedreclasslfled into or out of tethe category assessed atat fairfair valuevalue throughmrough profltprofitand and loas,loss, onceonce acqulred,acquired, issuedissued oror assumed.assumed.
ñ.li. A financialfinanclal asset, whichwhich Intentlntent oror financialfinanclal capacitycapacity changes,changes, isis classifiedclassified fromfrom "Held-to-maturity‘Held-to-maturity lnvestments’investments" teto “Available-for-sale"Available-for-salefinancial financialassets°. assets".In Intus thiscase, case,te the samesame treatmenttreatment is applied tote all L1 flnancislfinancial InstrumentsInstrumentsheld-to-maturity held-to-maturityexcept exceptunder underte thecircumstances circumstancesatetad stated byby tethe applicable law (sales close tote maturitymatuñty date, orDr once receivedreceived major part of methe financialfinandal asaeteassets principal, oror salessales atributedattributed toto aa non-recurring eventevent thatthat could not have been anticipatedanucipated byby thete Entity).Entity).
In 20132013 thethe Group soidsold a partpsrt ofof itsita held-to-maturityheld-to-matuñty debtdebt securities (Note 9.4). The transaction fulfilsfulflls U thethe requirementsrequlrements of paragraphparagraph GA22GA22 ofof 1ASlAS 3939 "Financial“Financial instruments:lnstwments: recognitionrecognition andsnd measurement’measurement" andand mereforetherefore thethe remainder of the held-to-maturityheld-to-maturity debt debtsecuñhes securitiesneed need notnot be reclassifiedreclassified to the available-for-saleavallable-for-sale portfolio.porifolio. fl 31 U IL.
U InIn 20122012 Vierethere werewere no sales oror reclassificationsreclassiflcaüons ofof financial instumentainstruments inin Viethe porifoliosportfoliosaddressed addressed in thisthis pointpoint.
iii. ItIf aa rellablereliable valuationvaluation ofof aa financialfinancial assetasset or liabilityllabllity becomesbecomes avallable,available, for which nono such valuation hadhad beenbeen previously available, and ifit ItItwere wereobllgatory obligatoryto tovalue valueViern thema afair fairvalue, value,such suchas as non-quotednon-quoted capitalcapital instrumentsinstrumentsand andthe thededvatives derivativesthat thatthese thesehave haveas as underlyingunderlyingassets, assets, thesethese financialfinancialassets assets oror financlalfinancial liabilitiesliabilitieswill willbe bevalued valuedat attheir theirfair fairvalue value andand thethe difference fromfrom their carryingcarrylng amount willwill bebe freatedtreated In line withwith whatwhat isis establishedestablished for ffieirtheir porifolioportfoliociass. class.
DuñngDuringme theyears years 20132013 andand 20122012Viere there hashas been no significant reclassiflcationreclassificationas as descñbeddescribed aboye.above. TI Iv.iv. If,If,as as aa result of a change Inln thethe intentionintention ororín in theifie financialfinanclal capacltycapacity of the Entity or, thethe expiry ofof thethe twotwo yearyear penaltypenalty peñadperiod imposedimposedby bythe the appNcableapplicablenonn normfar forme thecase case ofofthe the salesale of financlalfinancialassets assets U classlfiedclassified iiiInthe the lnvestmentInvestmentportfolio portfolioas asat atdue due date,date, financial asseffiassets (debt(debt instruments)instrurnents) included in thethe category of "financial‘financlal assets assets avallableavailable for sale”sale" may be reclassifiedreclasaified toto theVie "investment‘investment portfolioportfollo atat fi duedue date’.date". In Ihisthis case, the fairfalr value ofof thesemese financialfinanclal instruments on on Viethe datedate of Viethe transfertranster becornesbecomes ffieirtheir new amorUzedamortized costcost and theVie differencedifference between misthis amount and theirVielr reimbursablereimbursable U valuevalue is charged to theme consolidatedconsalldated profit and lossIoss accountaccount applyingapplying Viethe interestinterast rate methodmethod appllcable,applicable, duñngduring methe residual lifalife ofofthe the instrurnentInstrument
DuringDuringthe theyears years 20132013 therethere hashas been nono significantsignificant reclassification asas describeddescribed aboye.above. During yearyear 2012,2012, the GroupGroup has reclassifiedreclasslfled financial assetsassets amountingarnounting to €5,290,452€5290452 thousand fromfrorn the categorycategory “financlal"financial assetsassets availableavallable forfor sale"sale’ toto "held-to-maturity"“held-to-matuñty” (Note(Note 94).9.4). 1 y.v. AA financlalfinancialasset asset Viatthat is not a derivativedeñvative may not be classified under "financialflnancial assetsassets heldheld forfor trading’trading" Li itif ceasedceased to be maintainedmaintained forfor Viethe purpose ofof shortshort temiterm salesale or repurchase, whenwhen oneone of the followingfollowingcircumstances circumstancestakes takes place:place: Sl •• InIn rarerare and exceptionalexceptional circumstances,circumstances,unless unlessthe the assetsassets couldcould havehave beenbeen susceptiblysuscepVbly includedIncludedln Inthe theheading heading“Loans "Loansand and recelvables’.receivables".Rare Rare andand exceptlonalexceptional clrcurnstancescircumstances areare thosethose thatViat ariseahse fromfrom a particularparticular event, which isIs unusual andand highlyhlghly unlikely toto recurrecur inin thethe [3 foreseeableforeseeable Mure.future.
U •• WhenWhen Viethe Entity'sEnutys intentonIntentionand and financialfinancialcapacity capacityto tornalntain maintainVie the financialfinancialasset asset in the foreseeableforeseeable futurefutura or untilunVl maturity,matuñty, providedpmvided that itit fulfilledfulfilled Viethe definitiondeflniton ofof ‘Loans"Loans andand receivablesreceivables" at Itslts initial recognition.recognition.
U InIn thesethese situations, thethe assets areare classifiedclassifled atat theme reclassificationreclassif,catlon datedate fairfair value,value, withoutwithout reversing thethe results,results, andand considedngconsideringmis thisvalue valueas astheir theircost costor oramortized amortizedcost cost.In Inno nocase casethese theseassets assets rnaymay turnturn toto bebe mclassifledreclassified as "Financial‘Financial assetsassets heldheld forfor trading".trading’.
DuñngDuringVie theyears years 20132013 andand 20122012 Vierethere hashas been no significantsigniflcant reclassiflcationreclassificationas asdescñbed described aboye.above.
2.3 HedgingHedging and mitigation ofof ñsksrisks
TheThe Group uses financiallinancial deñvatlvesderivativesas as paftpart of itaits strategy to limit itaitsexposure exposure toto interestInterest rete,rate, rnañçetmarket and forelgnforeign exchangeexchange ñsks,risks, Interinter alia.alia. WhenWhen thethe transactionstransactions fulfilfulfilthe therequirements requirementsof oflAS IAS39, 39,they theyare aretreated treated asas hedges.hedges. U WhenWhen thethe GroupGroupdesignates designatesa a flnsacUontransactionas as aa hedge, it does so asas fromfrorn thethe timetirne ofof inceptioninception of the tmnsacVonstransactions or Viethe instrumentsinstrumente included in Viethe hedge, which Isis appropñatelyappropriately documented.documented. WlienWhen documenbngdocumenting Viesethese hedgehedge transactions,tmnsacUons, theVie hedgedhedged Instrument(s)lnstrument(s) andand hedginghedglng Instrument(s)lnstwment(s) areare dulyduly identifiedIdentifled togethertogether fi withwiththe the naturanature of thethe ñskrisk whlchwhich isis intendedintended teto bebe hedged and theVie criteriacdteria or methods followedfollowed by methe Entity toto U measuremeasure the effectiveness of Viethe hedge over the hedge term,term, takingtaklng into account the ñskrisk toto bebe covered.covered. ti U 32 fi £2
-j Ti rs U OnIyOnly transactionstransactionsthat that amare considemdconsidered high[yhighlyeffectiva effectivethmughout throughoutme thehedge hedgeterm termam arefreated treated asas hedge transactions.transactions. A hedge isis consideredconsidered highlyhighly effective lfif dudngduringthe the specificspecificterm term anyany changoschanges in fair value or cash flowsflows attributedattñbuted to methe riskñsk covered byby thete hedgehedge ofof thethe financialfinancial instrumentlnstrument oror Instrumentsinstruments aream virtuallyvirtuaily fullyfullyoffset offsetby bythe thechangos changes in fairfairvalue value ororcash cash flows,flows, asas appropriate,appropriate, of thethe hedglnghedging instrumentarInstrument or lnstwments.Instruments.
InIn arderorder toto measummeasure methe effectivenesseffecUveness of designated hedges, thethe GroupGroup analysesanalyses whether,whether, fromfrom Inceptionincephon and toto the end ofof theme defineddefined hedginghedglng period,peñad, changeschanges in fair valuevalue oror cashcash flows ofof tethe hedged item thatthat are atffibutableattributable toto methe hedged riskñsk may prospectively bebe expectedexpected to be offset almost completeiycompletely byby changoschanges in fair value Dror cash flows,fiows, as applicable,appllcable, of the hedging instrumentinstrumeni or instruments and whether, retrospectively,retrospectlvely, the U hedge resultsresulta havehave fluctuatedfluctuated withinwithin a range ofof BO%80% to to 125%125%with withrespect respectto tothe the resultsresults ofof thethe itemitem hedged.hedged.
The Entity'sEntitys hedgeshedges aream classifiedclassified as follows: 11L - FaIrFair value hedges: TheseThese hedgeshedges covercover exposureexposum toto changeschanges Inin thete fairfair valuevalue ofof financialfinancial assets andand liabilitiesliabilities or of Groups'Groups’ commitmentscommitnenft not yet recognized,mcognized, oror ofof anen identifiedidenflfled portion of such 0 assets, liabilitiesliabilities and thete Group'sGroup’s commitments,commiknenft, attributableatffibutable to aa specificspecific risk,ñsk, providedproiiided itit mightmlght affect U thethe consolidated incomeIncome statement. - Cash-flow hedges:hedges: These hedges covercover changeschangos inin cashcash flowsflows attributedattñbuted to a specificspeclfic riskrisk associated withwfth a financialfinancial asset oror liabilityllabllity or a highly probable transaction, provided it may affectaffect thethe L income statement. As regardsmgards theme specificspedfic financialfinanclal instruments designateddesignated asas hedgedhedged itemstema andand hedginghedging instruments,instruments, measurement differencesdiffemnces amare racognizedrecognized as describeddescñbed below:
U - For falrfair valuevalue hedges,hedges, diffemncesdifferences InIn hedgeshedges andand hedged items (depending Qnon the type of the hedgedhedged risk) areare recognized directlydlrectly Inin thethe consolidatedconsolidated IncomeIncome statement.statement.
-.. PorFor cash flow hedges, measummentmeasurement differencesdiffemnces arisingañsing on methe effective portion ofofIhe the hedge
[ are temporarilytemporañly recorded in methe equityequity item "Valuation‘Valuation adjusftnenftadjustments - Cash flow110w hedge&.hedges". The financialfinancial instrumenteinstruments covemdcovered byby cashcash fiowflowhedges hedges areare mcognizedrecognized as explained iiiin Note 2.22.2 andand no adjustmentsadjustments amare made due tote the fact that teythey amare classifledclassified asas hedged items.
U InIn thethe latter case, measurementmeasumment differencesdiffemnces are notnot recognizedmcognized in methe Incomeincome statement until tethe gamagains or loaseslosses on the hedgedhedged itemitem are recognizedrecognized or,or, inmn the case ofof thethe hedgehedge waswas relatedmiated toto aa highlyhighly probable futurefuturo fransactiontransaction whosewhose consequence isa theme recognitionmcognition of a notnot financialfinancial asset oror liability,liability, thesethese measurementmeasumment U difffirencesdifferences would bebe recognized as partpart ofof theme acquisitionacquisition cost or until thethe matuñtymaturity datedate ofof methe hedgedhedged item. MeasummentMeasurement differencesdiffemncas on thete hedginghedging instrumentinstrument relating teto methe ineffectivemneffective portionportion ofofcash cash flowflowhedges hedges areare recognizedrecognized dimctlydirectly InIn “Gains!"Gains/(loases) (losses) onon financial assetsassets andand liabilitiesliabilities (net)"(neos Iiin the consolidatedconsolidated IncomeIncome U statement. TheThe Group Interrupisinterruptste the hedgehedge accounting vAlenwhen tethe lnstrumentInstrument exphesexpires Dror laIssold, sold,when when aa hedgehedge no longer u meets tethe criteriacñteha forforte thehedge hedgeaccounting accountingor orwhen whenme thetransaction transactionceases ceasesto tobe beclassed classed asas aa hedge. u U [•1 U 33 rl u U ufi U
L WbereWhere ffiethe hedgehedge fair valuevalue isis intermptedinterruptedas as statedstated inin methe previousprevious paragraph,paragraph, ininme the casecase of hedged iWmsitems carriedcarried atat amortized cost,cost, thethe adjustmentsadjustments mademade forfor methe hedge accounbngaccounting purposespurposes amare recognized in thethe incomeincome statementstatement untiluntilthe the matuñtymaturitydate dateof of thethe hedged items,ltems, applying methe effective interestinterestrate rate asas Li recalculatedrecalculated onon thethe Interruption date, date. WhereWhere casi,cash llowflow hedgehedge accounting isis interrupted,interrupted,me the gaingain oror Iosseslosses accumulated on methe hedginghedglng instrumentinstmment
recognizedrecognized ininthe the equityequitycaption captionWaluation "Valuationadjusfrnents adjustments- -Cash Cashliow flowhedges hedges"in inffie theconsolidated consolidatedbalance balancesheet sheet remainsremains inin thatthat headingheading unUluntilme thehedged hedged expectedexpected fransactiontransactiontakes takes place,place, whenwhen methe amount in question isis U takentaken toto methe consolidated incomeincome statementstatement or,or,when whenthe the hedgedhedged itemitem isis enan expectedexpected transactiontransaction thatthat resultsresults inin thethe recognitionrecognitionof ofa afinancial financialasset asset oror llability,liability,an anadjustment adjustmentis ismade madeto tothe theacquisition acquisitioncost costof ofthe theasset asset oror llability.liability.In Inthe thecase caseof ofexpected expectedtransactions, transactions,when whenthe thetransactlon transactionIs isnot notexpected expected toto bebe effected,effected, thethe relevantrelevant fi amountamount recognizedrecognized In thethe equftyequity itemitem “Valuation"Valuationadjustmenft adjustments- -Cash Cash llowflowhedge& hedges" isis lmmediatelyimmediatelytaken taken toto thethe consohdatedconsolidated incomeincomestatement. statement.
2.42.4 ForeignForeign currencycurrencytransactlons transactions U 2.4.12.4.1 FunctionalFunctional currencycurency TheThe GroupsGroup's ffinctlonalfunctionalcurrency currency aisthe the euro.euro. AhAllbalances balances andand transactionstransactions denominateddenominated in currenciescurrencies otherother thanthan methe euroeuro areare considered asas foreign currencycurrencybalances balances andand transactions.transactions.
U TheThe totaltotal equivalentequivalent valuevalue inin euroseuros ofofme the Entity’sEntity'sforeign foreigncurmncy currencyassets assets and habilitesliabilitiesat at31 31 DecemberDecember 20132013 waswas €38000€38,000 thousandsthousands and €14,617€14.617 thousands, respectively (€43.697(€43,697 mousandsthousands andand €14.129€14,129 thousand,thousand, respectively, atat 3131 December 2012).2012). TheThe 75%75% andand 80%, mspectivelyrespectively atat 3131 DecemberDecember 20132013 waswas denominated in US dollars (73%(73% andand 66%,66%, respectivelyrespectivelyat at 3131 DecemberDecember 2012)2012) andand 14% andand 17%, respectivelyrespectivelyat at 3131 DecemberDecember 20132013 inin poundspounds sterling (19%(19% andand 30% respectively, atat 3131 December 2012),2012), yy andand thethe remainderremainder inin otherother foreignforeigncurrencles currenciestraded tradedIn inthe theSpanish Spanishmarket. market
2.4.22.4.2 ForeignFomign currencycurrency translationtranslaton
ForeignForeign currencycurrency transactionstransactions effectedeffected by the Group aream initiallyinitiahly recognized recognized ininDio the financialfinancialstatements statements atat their equlvalentequivalentvalue valueiii ineuros, auras, usingusingme the exchangeexchange rateerates prevaillngprevailingat atme the datesdates of thethe transactions.transactions. TheThe Entity subsequently subsequently transiatestranslates theme monetary balances InIn foreignforeign currency to methe functional currencycurrency U uslngusing thethe year-endyear-end exchange rate.rate. Additionally:Additionally:
-- Non-monetaryNon-monetaryitems itemscarfied carriedat at histoñcalhistoricalcost cost areare flnslatedtranslated intointo theme functionalfunctional currency usingusing thethe exchangeexchange rate prevailing atat meirtheir acquisitonacquisitiondate. date.
-- Non-monetaryNon-monetary itemsitems carfiedcarried atat fairfair valuevalue areare transiatedtranslated into methe functional currency uslngusing n thethe exchangeexchange rate inin force at methe date onon which fairfair valuevalue waswas determined.determined. U 2.4.32.4.3 ExchangeExchange ratesrates appliedapphied TheThe exchange retesrates usedused byby thethe EntityEntity toto translatetranslate balancesbalances denominateddenominated inin theme mainmain foreignforeign f currenciescurrencies toto euroseuros whenwhen prepañngpreparingthe theannual annualaccounffi accountsat at 3131 DecemberDecember2013 2013and and2012 2012are areme the retesrates U pubhishedpublished bybyDie the EumpeanEuropean Central Bank. U U Fi U 3434 1 -.4 u
U 2.4.42.4.4 AccountingAccounting forfor exehangeexchange diferentesdifferences ExchangeExchange diferentesdifferencesañsing arisingfrom fromthe the translaUontranslationof of foreignforeigncurrency currencybalances balances intointo thethe Group'sGroup’s fi functlonalfunctionalcurrency currencyare are generallygenerally recognizedrecognized atat meirtheir net amount In Exchange"Exchange diferentesdifferences (nety’(net)" jflin the U consolidatedconsolidated interneIncome statement,statement, exceptexcept for diferentesdifferences in financial Instrumenteinstruments cardedcarried atat fair value throughthrough methe interneincome staternent,statement, whichwhichare are recognizedrecognized inin thethe consolidated interneincome statementstatement togethertogether withwith anyany otherother changechange in fair value.value.
InIn 2013,2013, exchangeexchange differencesdifferences recognizedrecognized InInthe the BanRsBank's consoildatedconsolidatedincorne incomestaternent statementtotaled totaleda a net U lossloss of€of € 237237 thousand,thousand, as compared with a net gain ofof€ E 802802 thousandthousand in 2012.2012.
ExchangeExchange differences in non-monetarynon-monetary itemsitems whichwhichfair fairvalue valueis isadjusted adjusted bybymeans means of aa balancingbalancing entryentry
InInequity equityare are recognizedrecognized in Waluaflon"Valuationadjustments adjustments ——xchange Exchangediferentes’ differences"in inme theconsolidated consolidatedbalance balance sheet,sheet, untiluntil they amare realized.realired. Exchange differencesdiferentes arisingañsing on non-monetary items whose fair valuevalue isis adjustedadjusted against the consolidated equity. 3 InIn 20132013 and 2012,2012, exchangeexchange differencesdiffemnces recognizedrecognized in the consolidatedconsolidated statement ofof recognizedrecognized incomeincome andand expensesexpenses as "Other‘Ofrer recognizedrecognized interneincomeand andexpenses’ expenses" amountedamounted toto €€ 3333 ffiousandthousand andand €€ 167 ffiousand,thousand, mspectively,respectively, relatingrelatingin inbom bothcases casesto tonet netloases losses onon measuremenimeasurement. U 2.52.5 RecognitionRecognitionof ofincome incomeand andexpense expense Set out below is a summarysurnmary ofof the mostmost significantslgnificant accountingaccountlng policies employedemployed byby thethe Group toto recegnizerecognize incomeincomeand and expense:expense:
1... 2.5.12.5.1 Interestlntemst incomeincome andand expense,expense, dividendsdMdends andand similarsimilar ¡ternaitems r InIngeneral, general, lnterestInterest interneincomeand andexpense expense andand similar itemsitems areare accountedaccounted in anan accmalsaccruals basis, applying thethe effectiveefective interestinterest method defined Inin IASlAS 39. DividendsDividends receivedreceived fromfrom otherother companies are U recognizedrecognized Inin thethe incorneincome statementstatement whenwhen ffiethe Entity becomesbecomes enUtledentitled teto receivereceive them.them.
2.5.22.5.2 Commissions,Commissions, feesfeas andand similarsimilar items
U InterneIncome andand expenseexpense relatingrelating tote commissionscornmissions and similarsimilar fees, which are notfol includedincluded in thethe calculationcalculafion of the effectiveefective interestinterest ratarate of operations and/orand!or do notnot formforrn partpaft ofof thethe acquisitionacquisition cost ofof financialfinancial assetsassets oror liabilities,llabilities, exceptexcept forforthose those cardedcarried alat fairfair valuevalue throughthroughthe the IncomeIncomestatement, statement, amare recognizedrecognized inin thethe incomeinterne statement usingusing differentdiferent methods depending on theirtheir nature.natura. TheThe mostmost significantsigniflcant methodsmethods usadused are explained below:
-- Amounts associatedassociated with methe acquisitionacquisiUon of financialfinancialasaete assets and liabilitiesliabilities cernedcarried atat fair valuevalue throughthrough thethe incomeincomestatement statement amare recognized in methe consolidatedconsolidated incomeincome staternentstatement atat thethe payrnentpayment date.date.
-- AmeuntsAmountsadslng arisingfrom fromlong-term long-termtransactions transactionsor orservices servicesare are recognized inin the censolidatedconsolidated interneincome statementstatement over methe termterm ofof thethe fransactionstransactions oror services.services.
-- AmounftAmountsrelating relatingto toa a ene-ofone-offevent eventare are recerdedrecorded in methe consolidated income stetementstatement whenwhen thatthat eventevent takestakes place. U 2.5.32.5.3 Non-financialNon-financial interneincome andand expenseexpense Tbese arnounft are accounted in an accwals basis. r These amounts are accounted in an accruals basis. U.
Li 3535
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22 5.45.4 DeferredDeferred collectionscollections and payments
DeferredDeferred collecUonscollectionsand andpayments paymentsare are carfiedcarried stat methe amount obtained by discounhngdiscountingexpected expected cashcash flowsflowsat at marketmarket rates.rates.
2.62.6 OffsetOffset ofofbalances balances
Only debtordebtor andand creditor balances arisingañsing from transactions which, under contractcontract oror legislation,legislation, provide for possiblepossible offsetoffset andand areare to be settledsett]ed atst theirffieir net amount,amount, or simultaneously realizedrealized andand paid, areare offset and thereforetherefore presentedpresented Uiin methe consolidatedconsolidatedbalance balancesheet sheet atat thelrtheir netnet amountamount 11 2.72.7 FinancialFinancialasset asset impairment TheThe carrying valuevalue ofof financialfinancialasseft assets isis generallygenerally adjustedadjusted againstagainst methe consolidated Incomeincome statementstatement when -‘ merethere jais objective evidenceevidence ffiatthat merethere areare impairmentimpairmentlosses. losses. ThisThis isisthe the casecase where:where:
- ForFor debtdebt instmmenft,instruments, i.e. loans andand debtdebt securities,sewrWes, whenwfien followingfollowing theirmeir Initialinftial recognitionrecognition merethere U lais anan event or various evenisevents which have a negativenegahve Impactimpact on thethe relevant futureMure cash flows.fiows,
rl - PorFor equityequity instruments,instruments, when following meir theirInitial initialrecognition recognitionthere thereIs Isan anevent eventor orvañous variousevents events U makingmaking ititimpossible impossibleto torecover recovermeir theircarrying carryingamount. amount InInthe the eventevent thatthat thethe recoveryrecovery ofof anyany amountamount Ininrespect respect ofof methe impairmentimpairmentrecorded recordedla isconsidered considered remote,remote, suchsuch impalrmentimpairmentla iswritten writtenoff offme theconsoildated consolidatedbalance balancesheet, sheet,slthough althoughme theGroup Groupmay maytake takeme thenecessary necessary actionsactions U toto saturesecure collection until me the finalfinalextinguishment extinguishmentof ofjis itsdebt debtclaims claimsdueto due tolapslng, lapsing,remisslon remissionor oromer otherreasons. reasons. InIn methe case of debt Instrumentsinstrumenta carñedcarried atat amortizadamortized cost,cost, methe amount ofof impairmentimpairmentloases losses leis equalequal toto methe differencedifference betweenbetween meirtheir carryingcarryingamount amountand andme the presentpresent value ofof forecastforecast Murefuture cashcash flows discounteddiscounted stat methe instwment’sInstrument's originaloriginaleffective effectiveinterest interestrate, rate,where wherea afixed fixedrete ratewas wascontracted, contracted, oror atat mathe effective interestinterest reterate U at the date ofof the financialfinancial statemenft,statements, determined basedbased on the contractual temis,terms, InIn thethe casecase of a variable rate.rate. For listed debt instruments,lnstwments, thethe market value may be used,used, providedprovided itit isla sufficientlysufficiently rellablereliable toto bebe n representativerepresentative of thethe amountamount matthat may bebe recovered by thethe Group. U ObjectiveObjective evidenceevidence of lmpairmentImpairment willwillbe be determineddetermined individually for forsil alldebt debt instrumentsInstruments matthat are significant,signiñcant, andand IndividuallyIndMdually or orcollectively collectivelyfor forgroups groupsof ofdebt debtinstrumenta instruments whichwhich areare not individuallyindMdually slgniflcant significant.Whenever Whenever aa -i speciflcspecific instrumentinstrumentcannot cannotbe be includedincluded inIn anyany group of assets withwim similarsimilar riskiisk characteristics,chamcteñsüca, it will bebe [i analysedanalysed exdusivelyexclusively onon anan individual basis basis ininorder orderto to asceñainascertain whetherwhether it IsIs impairedimpaired and,and, wheneverwhenever misthis is U thethe case,case, to estimate theme impairmentimpairrnent loss.loss.
The collective sssessment assessment of a group of financial assetsassets to estimateaclimate Impairmentimpairment losaeslosses ise as follows:follows:
U - DebtDebt lnstrumentsinstruments are includedincluded inin groupsgroups withwith similarsimilar creditcredit riskdsk characteristics,characteñstics, Indicativeindicative of debtordebtor capacitycapacity toto paypay alIall amounts, principal andand interest, In accordanceaccordance with contractualcontractual tenis.terms. TheThe characteristicacharacteristics ofofcredit creditñsk riskwhich whichare aretaken takenmb intoaccount accountin Inorder orderlo togroup grouptogemer togetherassets assets are,are, interInter alia,aft, Instrumentinstrument type, debtor'sdebtor’s business sector,sector, geographicalgeographical locationlocation ofof theme activity,actvity, typetype oof guarantee,guarantee, ageage of amounisamounts overdue and anyany otherother factorfector matthat may be relevant when estimatingestimahng futurafuture cashcash flows.
- - FuturaFuture cashcash flows inIn eacheach group of debt InstrumentsInstrumente areare estimated basadbased on theme Entity'sEntfty’s í expehenceexperience of historical loaseslosses for instrumentsinstrumenta with similarsimilarcredit creditñsk riskcharactedstics characteristicsto tothose those ofof thethe it respectiverespective group,group, followingfollowingme thenecessary necessary adjustmentsadjustmentsto to adaptadapt historical daladata to currentcurreni marketmarket conditions,conditions.
fl - ImpsiniientImpairmentloases losses InIn eacheach group are theme difference between the carryingcarrylng value of ahall thethe Entity’sEntity's U debtdebt lnstwmentsInstruments andand thethe present value of itaits estimated future cash flows.fiows.
u 3636 ri U U E U
1] DebtDebt instrumenteinstruments notnot cernedcarried alat fair value through methe IncomeIncome statement,statement contingentconUngent ñsksrisks and contingentcontingent commifrnentscommitments areare classified,classified, onon tethe basis ofof thete InsolvencyInsolvency ñskrisk attibutableattributable toto thethe customercustomer or transaction, in tethe categoñescategories defined by Exhibit IXIXof ofBank Bankof ofSpain SpainCircular Circular4/2004, 4/2004,and andte itssubsequent subsequentamendmenft. amendments. Debt rl instrumenteInstruments notnot dassifiedclassified asas ordinary tísicarisks areare specifically provisionedprovisioned forforestimated estimated impainuentimpairmentin Inaccordance accordance U withwithte the above-mentionedabove-mentioned Circular,Circular,taking takinginto intoaccount accountte theage ageof ofte the unpaldunpaid amounts,amounts, guaranteesguarantees furnishedfumished andand tethe financial situationsituationof ofte thecustomer customerand and anyanyguamntors. guarantors. (9 TheThe above-mentionedabove-mentioned financialfinancialinstruments instrumentsare are sisoalso analysedanalysed toto determine credit ñskrisk onon tethe basis of cauntrycountry U risk,risk, le.I.e.the the riskrisk incurredincurredwith withrespect respectto tocustomers customers residentresident inin aa speciflcspecific countrycountrydue dueto to circumstancescircumstances otherother thanthan ordinarvordinary comnercialcommercial hsks,risks. [i InIn addWonadditionto to tethe specificspecific provisionsprovisionsfor forimpaimient impairmentmentioned mentionedto toaboye, above,te the GroupGroup coverscovers loaseslosses affectingaffecting debtdebt instrumenteInstruments notnot carriedcarried atat fair valuevalue thmughthroughte the incomeincome slatement,statement, andand contingent tísicarisks classifledclassified asas ü ordlnaryordinaryñsks, risks,by bymeans means of aa general provision, whichwhich lais calculatedcalculated basedbased onQn historicalhistotícal impairment dala data andand otherother circumstancescircumstances knownknownst atthe the assessmentassessment date, inin respectrespect ofof inherentinherent impairment Iosseslosses incurred atat thethe n datedate of the financialfinancial statements that have yet toto bebe assignedassigned toto specificspecific transactions,transactions, calculatedcaiculated using U statisticalstatistical methods. InInthls thisregard, regard,the theGroup Grouphas hasused used thethe parametersparameters established byteby the Bank ofof Spain,Spain, basedbased on ltsIts experienceexperience andand industryIndustry date,date, whichwhichdetermine determinete the meUiodmethodand and amountamount toto bebe used to covercavar Inherentinherant lmpairmentimpairment Iosseslosses incurredincurred inin debtdebt instrumenteinstruments andand contingent tísicarisks classiffedclassified asas normal dsks,risks, whlchwhich areare changadchanged regularlyregularly on tethe basis of thete evolutionevolution of tethe daladata inin question. This Impairmentimpairment lossloss provisioningprovisioningmetod methodla isbased based Qnon thethe fixedfixedretes rates provided byby E4iibftExhibitIX IXof ofBank Bankof ofSpain SpainCircular Circular4/2004 4/2004and andita itssubsequent subsequent amendments, which n vanesvaries based onon thete riskrisk ratingrating ofof the financialfinanclal instrumenteinstruments as set outout inti AnnexAnnex IX mentioned.mentioned. U TheThe recognitionrecognition inInthe theIncome Incomestatement statementof ofinterest interestaccwed accrued onon thethe basisbasis of thethe contractual temisterms lais Interruptedinterrupted forfor ahalldebt debt instrumenteinstruments classifiedclassified lndividuallyindividuallyas asimpaired impairedand andfor forthose thosebr forwhich whichimpairment impairmentloases losseshave have beenbeen r calculatedcalculated cohiectivelycollectivelybecause becausete the amountsamounts involvedinvolvedare aremore moretan thanthree threemonts monthspast past due.due. L TheThe amount of impairment loaseslosses Incurred inin debt securitiessecutíties and equityequity Instrumentsinstrumente included in tethe Itemltem uAvailableforsale"Available-for-salefinancial financialassetC assets"la isequal equalto tothe the posWvepositive differencedifferencebetween between teirtheir acquisitionacquisitioncost cost, netnet of -, principalprincipalrepayments, repayments, andand teirtheir fairfair valuevalue lessesa any Impairmentimpairment iossloss previously recognizedrecognized inin thethe consohidatedconsolidated U incomeincome statement. WhenWhen terethere is objective evidence tatthat the decline In fair valuevalue Isis aftñbutabieattributable toto lmpairment,impairment,the thelatent latentloases losses recognizedrecognized directlydirectlyas as measurementmeasurement adjustments Inin equity are recordedrecorded immediatelyimmediateiy In the consolidatedconsohidated incomeIncomestatement statement. lfIfsubsequently subsequently alIall ororpart part ofofte the impairmentimpairmentlosses losses areare recovered, the amount involvedinvoived lais recognized,recognized, InInte thecase case of debidebt secutíties,securities, inin tethe IncomeIncomestatement statement brfor tethe recoveryrecovery pedodperiodand, and, ininte thecase case of equityequity instrumente,instruments, asas valuation adjusimenftadjustments Inin consohidatedconsolidated equity. [ InIn orderorderto todraw drawconclusions conclusions asas tateto the existenceexistence of objectiveobjecbve evidence of impairment ofof listadlistedand and unhistedunlisted debtdebt U instrumente,instruments, tethe GroupGroup analysesanalyses any Ioss-causlngloss-causing events, such asas circumstancescircumstances causingcausing significantsigniflcant financialfinancial difflcultiesdifficultiesbr forthe thelssuer issuernr orobligar, obligor,breaches breachesof ofcontractual contractualclauses, clauses,such suchas as defaultedefaults nror delaysdelays inIn thethe paymentpayment ofof principalprincipalor or interest,interest, increaseincrease in thethe probability ofofthe the lssuerissuer becomlngbecoming lnsolventinsolvent oror undergoingundergoing anyany otherother (9 typetype of financialfinancialrestructuñng, restructuring,dlsappearance disappearance ofof anan active market brfor tethe financialfinanclal instwmentinstrument Ininquestian, question, duedue U loto financlalfinancial difflcultles,difficulties, andand aa credit rating cut,cut, whlchwhich couldcould bebe a signslgn of impairmentlmpairment if consideradconsidered together with otherother avallableavailable informauon.information.
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3737 n U U U
U In lbsthe speciftspecific casecase ofof listedHsted equity Instruments,Instrumenta, Ibethe Group analyses whetherwbetber aa prolongedprolongad oror significantsignificant fallfaB in thethe investment'sinvesfrnents fair value below cost IsIs objectiveobjecuve evidence ofof Impairment.lmpalrment For thethe purposes ofof determiningdeterminlng when merethere is objectiveobjective evidence that the priceprice falltau isla duedue tolo impairment,impairment, inin thethe eventevent ofof exceptionalexceptional circumstances InIn methe marketamarkets matthat determine ffiethe price,pite, theIba pricepñce effectseffacts deriveddedved fromfrom generalgeneral marketmaricet movementamovements areare analysed separatelysepamtely fromfrom thelbe movementsmovements relatingrelating tolo factorsfactors specificallyspecifically attributableattñbutable loto methe issuer,issuer. Where there are nono exceptionalexceptional marketmarket circumstancescircumstances butbul therethere areare prolongedprolonged fallsfalis belowbelow theIhe carryingcarrying amount, representing a relevant percentage, the GroupGroup also analyses evidenceevidence ofof impairment.impalrment. Unless Iherethere fl are more specificallyspeciflcally justifiable justifiablechIcha, criteria,a astandard standard18-month 18-monthpehod periodand anda astandard standard40% 40% referencereference raterate are used. Even where there are nono exceptionalexceptional marketmarkel circumstances, an analysis is¡5 alsosIso performedperformed to determine U whether therethere are objectiveobjectlve reasonsreasons tolo consider that theIbe security'ssecurity’s price doesdaes notnot reflectreflect itslIs fairfaIr value and, merefore,therefore, Isis not a validvalid figurefigure forbr quantifying potentialpotentialimpairment impairment.ObjectÑe Objectivereasons reasonsin inIbis thiscase case maymay be related to a veryvery lowlow free float, prolongedprolonged speculativespeculative achonsactions affecting Ibethe share price,pilca, etc.,etc., allah ofof whichwhlch could j distort Ibethe piteprice of equityequity instmmenta.instruments. PorFor debt and equityequity instrumentsinstrumente classifiedclassifiedunder under non-currentnon-currentassets assets heldheld forfor sale,sale, the losseshosses recordedrecorded previously ininequity equityare areconsiderad consideredlo tobe be realizadrealized andand areare recognized in thethe consolidatedconsolidated Incomeincome statementstatement at U thethe date ofoftheirclasslficatlon. their classification. ParFor lnvestmenftInvestments in subsidiahes,subsidiaries, jolntly-controlledjointly-controlledentities entitiesand andassociates, associates, methe Institutionlnstitution estimatesestimates impairmentimpalrment r losses byby comparingcompahng Ihethe recoverable amount with Ibethe carrying amouniamount. SuchSuch impaimientImpairmentIosses losses areare recordadrecorded in Ibathe consolidatedconsolidated Incomeincome statementstatement forfor methe periodpehod in which theythey ailsearise while subsequenlsubsequent recoveriesrecoveñes are recordadrecorded in methe consolidaledconsolidated Incomeincome statement for Ibathe recovery pedod.period.
2.8 Financial guaranteesguarantees and related provisions
U FinanclalFinancial guaranteesguarantees are contracts in which anan entity undertakesundertakes toto pay specified sumssums brfor thethe account of a thirdthird partyparty inin Ibethe eventevent thatthat payment is19 notnot mademade byby thethe thirdthird party,party, irrespectiveIrrespective ofof thethe formform ofof theme obligation:obligation: guarantee deposit,deposil, financialfinancial or technical guarantee, IrrevocableIrrevocable documentary credit issued or confirmed by thethe U Entity, etc.etc. lnIn accordanceaccordance wiIbwith IFRS-EUIFRS-EUand and methe GmupGroup generallygenerally consldersconsiders Ibethe financialfinancial guaranleeguarantee contractacontracts provided loto mirdthird padiesparties as financialfinancial instrumentsInstruments within Ibathe scope ofof IASlAS 39. U AlAt thethe time of theirmeir initialInitial recognitionrecognitionme the GroupGroup reflectsreflects financlalfinancialguarantees guarantees provided under liabilitiesIlabilities onon thethe consolidaledconsolidated balancebalance sheet atal fairfair valuevalue plusplus thethe transactiontransaction costscosta thatthaI maymay bebe directlydirecty attributable,attributable, whichwhich generally Isis equal loto thethe amountamount ofof theIhe premiumpremlum received,received, plus,plus ifif appropriate,appropñate, methe present value ofof commissions andand interestinterest toto be received on suchsuch contractscontracts overover theirtheir term,lerm, withwilh a balancingbalancing entry,enlry, under assets, ofof thelbs amountamount of Ibathe likened commissions andand interestinterest collectedcollected alat InceptionInception anóand accountaaccounts receivable for methe present value of methe commissions and Interestlnterest receivable. Subsequentiy,Subsequently, mesethese contracts are carriedcarfied under liabllwesliabilitieson onme the consohidatedconsolidated balancebalance sheet atal thethe higherhlgher ofof theme followinghllowing lwotwo amounta:amounts:
U - The amount calculated in accordance with lASIAS 37.37. In misthis respect, thelbs financialfinancial guarantees, irrespective ofofthe the holder,holder, arrangementarrangement oror otherother circumstances,circumstances, are analysed regularlyregulady toto determinedetermine methe credit dskrisk toto whlchwhichthey theyare are exposedexposed and ifIf appropriate,appropriate, estimaleestimate Ihethe need forbr provision,provislon, determinaddetermined by fl applying criledacriteriasimilar similarlo tolhose those establishedestablished loto quanlifyquantify impalrmentimpairmentlosses losses onon Ibethe debt Instrumentslnslwments U valued alat amorlizedamortized cosicost.
- The amountamounl initiallyinitially reflectadreflected brfor mesethese instrumentsinslwmenta lessleas amortizationamortizaton of thismis amountamount which,wfiich, under lASIAS 18,18, lais chargedcharged on a straight-linestraighl-llne basisbasis over the lermterm of such contractscontracta to theIba consolidatedconsolidated incomeincome statemenistatement.
ProvislonsProvisions brfor financlalfinancialguarantees guarantees areare recorded inin theme itemilem "ProvisionsProvisions - ProvisionsProvlsions forbr contingent dsksrisks and ti commitmenls”commitments"under under llablilfiesliabilitiesin inthe theconsohidated consolidatedbalance balancesheel. sheet. AA balanclngbalancingentry entry isis mademade in lhethe captioncaplion U Provlsions"Provisions (net)(net)" Ininlhe theconsolldated consolidated IncomeIncomeslatement. statement.
U 38 fl u U o r’ U WhenWhen aa provisionprovision Lsis required for (handelfinancialguarantees, guarantees, commissionscommissionspending pendingacaual accrualon on methe guarantees, cernedcarried Qnon thethe habNitiesliabilitiesin inthe theconsolidated consolidatedbalance balance sheetsheet inIn (hethe caption "Accrual‘Accrual accounts’,accounts", areare reclassihedreclassified toto thethe relevantrelevant provision.
2.9.2.9. AccountingAccounting for leasesleases
2.9.12.9.1 FinanceFinance leases
EhanceFinance leasesleases are (hosathose in whichv4iich substanliallysubstantiallyal) allme therisks risksand andrewards rewardscarñed carriedby bythe theleased leasedasset asset U areare transferredtransferred tDtothe thelescee. lessee.
WheneverWheneverthe theEntity Entityacta actsas asthe the lessorlessorof ofan an assetasset in a financefinance lease transaction, ffiethe sumsum of (hethe presentpresent valuesvalues of titethe amountsamounts thatthat willwillbe bereceived received(mm fromme thelessee lessee plusplus ibathe guaranteedguaranteed residual valuevalue u (usually(usuallyifie the purchasepurchase opUonoption pnicepricewhen when methe leaselease expires) are recordedrecorded asas financingfinancing providedprovided to ffilndthird partiesparties andand therefore lncludedincluded inin methe caption ‘Loans"Loans andand receivables"receivables’ inin methe consolidatedconsolldated balance shoet,sheet, in accordanceaccordance withme thenature natureof of(he thelessee. lessee.
U WhenWhenme the EntltyEntityacts actsas asthe the lesseelessee inin aa financeAmante leaselease operation, me thecost costof of(he the leasedleased assetsassets isa recordedrecorded Ininthe the balancebalance sheetsheet amon (hethe basis ofof the(he naturenature ofof theme assetasset leasedleased andand a aliabilityNabllity IsIs carriedcarried In (hethe samasame amount (the lowerlower ofofthe thefair fairvalue valueof ofme theleased leasedasset asset andand thethe sumsum ofof (hethe presentpresent valuesvalues of (hethe amounts payable toto methe lessorlessor plus,plus, ifif appropriate,approphate, (hethe purchase optionoption exercisaexercise price).pnice). These assatsassets areare depreciateddepreciated atat similarsimilar rates toto thosethose appliedapplied toto theme Group'sGroup’s property,property, plant and equlpmentequipment forforown ownuse use (Note(Note 2.14).2.14).
InIn both cases, the(he financialfinanclal Incomeincome andand expenseexpense onon financefinance leasesleases isla creditedcredited and charged,charged, respectlvely,respectively,to tome the consolidatedconsolidated Incomeincome statementstatement capUanacaptions "Interest‘lnterest and similar income”income" andand ‘lnterest"interest expensesexpenses and similar charges”,charges', applyingthe the effectlveeffectiveinterest interestrate rate onon (hethe lease, calculatedcalculated in accordanceaccordance with (hethe newnew regulations,regulations, (otoestimate estimate accrual.accrual.
2.9.22.9.2 OperatingOporating loasesleases
InIn operatingoperatingleases, leases, ownership ofof(he the leasedleased asset andand substantiallysubstanhally allah risks and benefitsbeneflts of ownership U areare retained byby methe lessor. WhereWhere thethe GroupGroupacta acts asas (hethe lessor inIn operating leaselease agreements, the(he acquisition cosicost ofof (hethe leasedleased assetasset isla carriedcerned under "Property,?roperty, plant and equipment"equlpmenr inin ‘lnvestment"Investmentproperty property"or or‘omer "Otherassets assetsleased leased outout under operatingoperatingleases’, leases",depending dependingon onme thenature natureof of(he theleased leasedassets. assets. SuchSuch assetsassets are depreciateddepredated inin accordanceaccordance withwith theme policiespolicies adoptedadopted forfor similarsimilar property, plant and equipment for own useuse and theme revenuerevenue fromfrom lease contractscontracta isis recognizedrecognized in the consolidated income statementstatement Qnon aa straight-linestraight-line basisbasis in methe caption ‘Other"Other operatingoperating income’income" U WhereWhere methe GroupGroup actaacts asas (hethe lesser inin operatingoperating lease agreements,agreementa, the(he leaselease costs,costs, includingincludlng any incentivesincentivesgranted grantedby by(he the lessor,lessor, areare charged on aa straight-linestralght-hine basisbasls tolo the(he consolidatedconsohldated incomeincome statementstatement caption "Otheromer generalgeneral administrativeadministrativeexpenses’. expenses". U 2,102.10 ManagedManaged asaetaassets ManagedManagedasceta assets byby methe consolidatedconsolidated entitiesentitiesand and ownedowned byby thlrdthird partiesparties areare not recognizedrecognized inin (hethe fl consolidatedconsolidatedbalance balance sheet.sheet. Fees generated byby thisthis activityactivity areare recorded inini the item “Fees"Fees and commissioncommission U Income’income"ln inme theconsolidated consolidatedincome incomestatement statement. NoteNote 30.430.4 providesprovides infonmationinformationam onffilrd-party third-partyasaeta assetsmanaged managed bybyme the GmupGroupduring during(he theyears yearsended ended 3131 DecemberDecember 20132013 andand 2012.2012. u
o 39 rl L u rl j u rl U 2.112.11 InvestmentInvesknent fundsffinds managedmanaged by the GmupGroup
lnvestmentInvestmentfunde fundsmanaged managedby by thethe consolidated entitiesentities areare not recognizedrecognized Inin theme Group'sGroups consolidatedconsolidated fl balancebalancesheet sheet asas theme fundfund assets areare ownedowned byby thirdthird parties.parties. Fees accruedacemed duringduñng methe year for seMcesservices u renderedrendered toto thethe funds by thethe GroupGroup entitiesentities (asset(asset management,management, portfolioportllo depositorycervices, services,etc.) etc.) areare recordedrecorded inin ‘Fee"Fee andand commissloncommission Income’income"in inme theconsohdated consolidatedincome incomestatement statement.
2,122.12 StaffStaffcosft costs
0 2.12.12.12.1 Post-empioymentPost-employment commitmentecommitments fl 2.12.1.12.12.1.1 GeneralGeneral descriptiondescription ofof commifrnenftcommitments L UnderUnder methe prevailingprevaillng collectvecollectivebargaining bargainingagreement, agreement,ffie the Institution must must suppiementsupplementthe the social sewñtysecurity benefitsbenefits ofof jIsIts employees or theirtheir beneficiariesbeneficiades in thethe eventevent ofof retirement,retirement, widowhood,widowhood, r orphanhovd,orphanhood, permanent disabilitydisabflity or major disability. U DuñngDuring2002 2002the theInstitution Institutionreached reachedan anagreement agreement withwith itsitsemployees employees loto modifymodifyand andtransform transformthe thepre pre- existlngexisting pendanpension supplementsupplementarrangements arrangementsfor for retirementretirementand and related contingencies and and for occupationaioccupationalhazard hazardcontingencias. contingencies.As Asa aconsequence consequenceof ofthat thatagreement, agreement,a a partpart ofof the pension 4 commihientscommitmentswith withemployees employeeswere wereextemahzed externalizedto toffie the fundfund UnifondoUnifondoPensiones PensionesV, V, FondoFondo dede U Pensiones.Pensiones. The remaining pensionpension commifrnentscommitmentscovered covered bybyme the intemalinternalfund fundal at 3131 DecemberDecember 20012001 werewere coveredcovered by insuranceinsurance policies duñngduring 20042004 andand 20052005 (Note(Note 40.1).40.1).
TheThe basicbasic lermaterms of thethe agreement entail a shift from aa mlxedmixed companycompany pensionpension arrangementarrangement toto groupgroup U defineddefined contñbutioncontributionand anddefined definedbenefit benefitarrangements. arrangements.As Asa a consequence,consequence, thethe pension plan contemplatedcontemplated in thethe agreementagreement encompassesencompasses five groups mbinto which thethe employees are classifiedclassifled basadbased on theirmeir length-of-service,lenglh-of-service, postpost and applicableapplicabie collective bargainingbargainingagmement agreement. Depending onon methe group, methe benefitsbeneftts consist of minimum guaranteedguaranteed sumssums for death andand disability,disabflity, and defined U conffibutionscontributionsor orbeneflts benefits foreachfor each commibnentcommitment.
AsAs aa result ofof thethe merger of Monte dede Piedad y Caja de Ahorros de Ronda, Cadiz,Cádiz, Almeria,Almería, MálagaMalaga yy AntequeraAntequera (Unicaja)(Unicaja)and andCaja CajaProvincial Provincialde deAhorros Ahorrosde deJaén Jaen(Caja (Cajade de Jaén),Jaen), on 13 April 20112011 thethe U “Employment"EmploymentAgreement Agreementfor forme theIntegration Integrationof ofthe theEmployment EmploymentPendan PensionPlane Plansat atMonte Montede de PiedadPiedad yy CajaCaja dede AhorrosAhorros dede Ronda, Cádiz,Cadiz, Almería,Almeria, Málaga,Malaga,Antequera Antequeray yJaén’ Jaen"was was signed,signed, andand compliance waswas obtained through theme "EmploymentEmpioyment AgreementAgreement regardingregardingme the Procedure for Integratinglntegrating methe EmploymentEmploymentPension Pension PlantPlant stat MonteMontede de PiedadPiedad y Caja de Ahorros dede Ronda, Cadiz,Cádiz, Almeria,Almería, Málaga,Malaga, AntequeraAntequera yyJaén’ Jaen" dateddated 2626 JulyJuly 2011.2011.
TheThe purposepurpose of thisthis agreementagreement was to establish the foundationtundation on whlchwhich thethe Employment PensionPension Plan fl forforall allUnicaja Unicajaemployees employeeswould wouldbe beregulated regulatedas as aa msultresult of methe merger and the procedurepmcedure forfor unifyingunlfying U thethe existlngexisting EmploymentEmploymentPlans Plansal at bothboth entitiesentitles byby lntegratingintegratingthe the PensionPension PlanPlan forfor EmployeesEmployees ofof CajaCaja dede JaénJaen intomio methe UnicajaUnicaja Employee Pension Plan,Pian, whichwhlch has resultedresultad inin theme terminationtermination and liquidationliquidation ofofme the hrmerformerand and methe creationcreation ofof aa newnew groupgroup consistingconsisting ofofthe the employeesemployees of matthat entity.entity. U OnOn 2020 September 2011, the EmployeeEmployee PensionPension PlanRían ControlControl CommitteeConmiltee alat Unicaja approveapprove thethe amendmentamendmentof of methe Pension Plan SpecificationsSpecifications lo to adjustadjust toto the wordingwordlng established inin the aforemenhonedaforementioned empioymentemployment agreement,agreement, immedlatelyimmediately acceptingaccepting Ihethe mntegrationintegration ofof participanteparticipantsand and thelrtheir [7 consolidatedconsolidatedrights rightsand andthe thebeneficiades beneficiariesof ofthe theCaja Cajade deJaén Jaen Employee PensionPension PlanPlan thaIthat registeredregistered U withwiththe thenew newpian planon on26 26 OctoberOctober2011. 2011. AsAs aa resullresult ofofthe the creahoncreation ofof aa bankbank atat Unicaja, methe Unicaja EmployeeEmployee PensionPension Plan Control CommitteeCommittee r agreedagreed loto authorize theme ManagingManaging Entity loto receive contñbutionscontributions fmmfrom UnicajaUnicajaBanco, Banco,even even thoughthough itit is notnot yetyet recognlzedrecognized asas a Promoter,Prometer, and tolo startstart theifie processprocess forfor convertingconverting thethe UnicajaUnicaja EmployeeEmployee U PensionPension Plan into aa Joint Promotion PlanPlan withlnwithinme theone-year one-yeardeatiline deadline establlshedestablished by law.
u 4040 [1 u Ej u u
U AtAt 3131 DecemberDecember 20132013 andand 2012, methe actuañalactuarial study calculations forforthe the defineddefined benefitbenefitsystems systems havehave beenbeen carried out using the followingfollowlng assurnpbons: assumptions:
20132013 20122012
Ej TechnlcalTechnical InterestInterest raterate )(') See Note 40.1 4%4% WageWage rowthgrowth 2%2% 2%2% SodalsecurltycoveragegroMhSocial security coverage growth 1% 1% PensionreviewratePension review rate 1% 1% MortalityMortalitytablas tables PERMFPERMF 2000-P2000-P PERMFPERMF 2000-P2000-P (*)(*)RoIating Relatingto tothe theuninsured uninsured mmItments,commitments, U TheThe commitmentscommitmentsaccruing accruinglo toretired retiredemployees employeesor orbeneficlaries beneficiariesal at31 31Qecember December2013 2013and and 20122012 areare extemalizedexternalizedto to ffiethe fundfund UnifondoUnifondoPensiones PensionesV, V,Fondo Fondode dePensiones Pensiones andand covered by an Insuranceinsurance policypolicythat thatapplies appliesan an insuredinsured interestInterest raterate ofof6.406% 5.406%to to 1313JuIy July2041 2041and and2.5% 2.5% asas fromfrom thatthatdate, date, and methe PERMF 2000-P2000-P mortalitytablas. tables.
- DefinedDefined contributioncontribution cornmifrnentscommitments
TheThe contñbutioncontributionaccrued accruedduring duringme theyear year isis recognized underunder ffiethe caption °staffstaff costscosts" inIn Ibathe consolidatedconsolidated incomeincome statementstatement.
AtAt 3131 December 2013 and 2012 theremere werewere nono pendingpendlng contributioncontñbution toto externalextemal defineddefined contributioncontñbution plans.plans. U - DefinedDefined benefltbenefit commitmenfficommitments
InIn Ibathe heading "ProvisionsProvisions — Provisions Provisionsfor forpensions pensions andand similar llabilitieWliabilities"on onIbe the llabilitiesliabilitiessida side ofof Ibethe consolidatedconsolidated balancebalance sheetsheet (or on thethe assets side,sida, inin thethe captioncaption "OtherOther assets —— øther, Other, depending on whetherwhether Ibethe difference is positive or negative and providedprovided theme conditionscondWons laidaid downdowii inIn applicableapplicable regulationsregulations lASIAS 1919 andand tuto IFRICIFRIC 14,14, forforlIs Itsreglstry registryare arefulfilled), fulfilled),Iba theGroup Grouprecognizes recognizesIba thepmsent present valuevalue ofof itaits defined benefitbenefit pensionpension cornmitments,commitments,net netof ofme thefair fairvalue valueof ofthe theasseffi assets thatthaI qualify asas plan U assetsassets and of deferred pastpast serviceservice costa.costs. "PlanPlan asseWassets" aream assetsassets allocatedallocated toto aa specificspecific defined-benefitdefined-beneflt commitmentcommitment thatthat will bebe directly usedused toto setuesettle thesemese obligationsobligations andand thatthaI fulfilfulfil Ibathe following condWons: conditions:they theyam are notnot ownedowned byby Ibethe Group’sGroup's entity butbut ratherrather byby a legally Independentindependent mirdthirdparty, party,mey theymay mayonly onlybe beusad used toto pay or finance ernployeesemployees U post-employmentpost-employmentrernuneration remunerationand andmey theymay maynot notbe be retumedreturned toto Ibethe Group’sGroup's entity, exceptexcept whenwhen Ibethe remainlngremaining planplan assetsassets areare sufficientsufficient tolo complycomply with allall Ibethe obllgationsobligations ofofthe the planplan oror thethe entityentity relatedrelated toto n currentcurrent oror pastpast ernployeeemployee beneflts,benefits, ortoor to reimbursereimburse employeeemployee benefitsbenefits alreadyalready paid byby thethe Group.Group. U WhereWhere thethe Group isis ableable toto demand that enan insurance company pay paftpart or allalI of the disbursementdisbursernent requiredrequired loto selVasettle a defineddeflned benefitbeneflt obligation,obligation, itit beingbelng practicallypracticahy ceñaincertain thatthaI Insuranceinsurance companycornpany willwIll r reimbursereimburse sornesome or ahall ofof thethe paymentspayments required loto setuesettle that obligation, butbut methe Insuranceinsurance policypolicydoes does notnot qualifyqualifyas as aa plan asset, theIbe EntityEntity recognizes itaits reimbursement ñght righton onIbe theassets assets sidoside of the U balancebalance sheetsheet in 1nsurance"Insurance confractscontracts linkedlinkedlo topensions’ pensions' andand trealatreats thethe balancebalance in Ibisthis itemitem asas aa plan assetasset in alIall offierother raspeS.respects.
ActuañalActuarialgains gainsand and loaseslosses derive from difforencesdifferences betweenbetween priorprior actuarialactuarialassurnptions assumptions andand actualactual fact, andand fromfromchanges changes InIntite theactuadal actuarialassumptions assumptions used.used.
PursuantPursuant to lASIAS 19,19,the the GroupGroup recognizesrecognizes actuarialactuarial gainsgains oror loaseslosses that mayrnay arisealise inin connection wimwith itaits ri post-employmentpost-employmentcommiknenft commitmentswith withemployees employeesin inme thepedod periodin inwtilch whichthey theyadse, arise, byby charging oror U creditingcreditingthe the consohidatedconsolidated statementstatement ofof recognizedrecognized incomeincome andand expenses,expenses, throughthrough "Otherother recognized incomeincome andand expense?,expenses", whlchwhichare aretreated treated forforsuch such purposespurposes asas Itemsitems that will not not bebe takentaken loto thethe incomeincomestatement. statement
U 4141
rlI U. U fl U U
j TheThe Cost"Cost ofofpast past services”services" añsingarising fromfromchanges changes loto exisbngexisting post-empioymentpost-employment remuneratonremuneration aror framfromIba the inclusionInclusionof ofnew newbeneflts benefitsla isthe thecost cost ofof improvingimprovingthe thebeneñts, benefits,relating relatinglo tothe theyears yearsof ofseMce service ofof eacheach employee,employee,based based onon a linearlinear distributiondistdbution of of thethe costcost using the projectedprojected credit unuunit method; ItIt isa U recognizedrecognized immediatelyimmediatelyiii inthe theconsolidated consolidated incomeincomestatement statement for thethe peñodperiod InIn question. Post-employmentPost-employmentbeneñts benefitsam are recordedrecorded inin methe consolidatedconsolidated incomeincome statementstatement as follows:
1 •• CurmntCurrentseMce service casis,costs, ¡e.i.e. lbethe increaseIncrease in ffiethe present valuevalue ofof theme obligationsobligafions arisingañsing from U Ibethe servicesservices provided byby employeesemployees Inin methe currentcurrent year,year, are recognized inin MStaff"Staff costs”;costs";
r •• lnterestInterestcoste, costs, i.e.i.e. Ibathe Increaseincrease in Ibathe present value ofof the obligationsobligationa thaIthat occurs duñngduring thethe yearyear due to theme passpasa ofof time,time, areare recognizedrecognized inin "Interest“lnterest expenses andand similarsimilar U charges”.charges". WheneverWheneverIbe the obligationsobligationsare are presentedpresented Habilites,liabilities,net netof ofrelated relatedplan planassets, assets, Ibethe cost of theme liabilitieshabilites recordedrecorded inin methe consolidated income statement willwili correspondcorrespond solelysolely tometo the obhgatonsobligations recognizedrecognized anon Ibathe liabilities dde. side.
•• TheThe expectedexpected mturnreturn onon assetsassets assigned to cover commitmentsand and relatedrelated beseslosses andand U gama,gains, ¡esaless any administrativeadmmnistrative casiscosts and taxes, Isla recognizedrecognized under "Interest“lnterest and similar lncom&.income'. U 2.12.1.22.12.1.2 PoliesPolicies appiiedappliedlo to post-empioymentpost-employment remuneraUonremuneration HavingHavingregard regardlo toffie thepolicies policiesapplied appliedand andIbe the memodmethod brfordetermining determiningIba thediscount discountratee rates appliedappliedlo topost post- employmentemployment mmuneraVon,remuneration, thethe followingfollowingmusi mustbe beconsiderad: considered: U •• PorForinsured Insuredcommlfrnents: commitments: TheThe policiespolicies appiiedapplied areare containedcontained Inin lASIAS 1919 andand inIn Bank ofof SpainSpain regulations; speciflcally,specifically,when whendetermining determiningthe thediscount discountrate, rate, Ibethe approach El stipulatedstipulated inIn RuleRule 35,35, sectonsection B,3),B.3), point 1O.d)10.d) ofof BankBank ofof SpainSpain CircularCircular412004 4/2004 lais applied,applied, coincidingcoincidingwith withthe theprovisions provisionsof of¡AS IAS19. 19.At At31 31December December20131 2013,br forcommitments commitmentscovered covered U byby insuranceInsurancepolicies, policies,me theBank Bankhas hascaiculated calculatedme thefair fairvalue valueof ofme the asaeteassets and commilmentscommitmentsusing usinga adiscount discountrate ratebased based Qnon thethe averageaverage term of lbsthe commitments.
•• PorFornon-Insured non-Insuredcommitments: commitments: TheThe marketmarketreference referencerate rateusad used isis thethe raterate brfor ¡ssuesissues ofof U corporatecorporate bondsbonds andand debentures with highhlgh credit ratings, based onan thethe IBOXXIBOXX AAAA CorporateCorporatecurve curve (i.e.(I.e.Iba the curvecurve brfor highly-ratedhighly-ratedcarparate corporatebonds bondsIn inIba the Eurazane)Eurozone)al at 3131 DecemberDecember 2013.2013.
U 2.12.1.32.12.1.3 Defined-beneifiDefined-benefitpost-employment post-employmentcommibuenft commitments
AlAt year-endyear-end 2013, the UnicajaUnicaja BancoBanco Group'sGroup’s defined-benefitdefined-beneht post-employmentpast-empboyment commitments areare U groupedgrouped mbintotwo twoplane, plans,as as describeddescribed beiow:below: DefinitonDefinitionof ofPlan Plan 11
a)a) Defined-benefltDefined-benefitpost-employment post-employmentremuneration remunerationextemaiized externalizedunder underan anemployee employee pensionpension plan U namednamed ?lan"Plan dede Pensiones dede loslos EmpleadosEmpleados dede UnicajaUnicaja yy UnicajaUnicaja Banco",Banco, whichwhich Includesincludes serving employeesemployees andand empioyeeemployee beneficiadasbeneficiaries who aireadyalready receiving post-employmentpost-employment beneflis,benefits.
b)b) Deflned-benefitDefined-benefitpast-employment post-employmentremuneration remuneration extemalizedexternalized underunder an insurance policypolicy qualifying brfor U methe extemalizatianexternalization ofofcommitments commitmentspurauantto pursuant to RoyalRoyalDecree Decree 158811999,1588/1999, asas Ibathe legal Hmitslimitson onpension pension planplan conffibutionscontributionspreclude precludeme theflnancing financingof ofmese thesecommiknenft commitmentsunder underIbe thepensian pension plan.plan. U
U 4242 El u u Li Li
[3 DeflnwonDefinitionof ofPIan Plan 22
a)a) Defined-benefltDefined-benefitpost-employment post-employment remunerationremuneration extemalizedexternalized under anen insuranceinsurance policypoflcy qualifyingqualifying for thethe externalizationexternalization ofof commitmentscommifrnents pursuantpursuant toto RoyalRoyal DecreeDecree 1588/1999,1588/1999, coveringcoverlng pensionpension U commitmentscommitments derivedderived fromfromthe the CollectiveCollective BargainlngBargainingAgreemenft Agreementsfor forSavings SavingsBanks Banks andand for PñvatePrivate BankingBankingfor foremployees employeesnot notcovered coveredby byte thepension pensionplan plannamed named*Plan 'Plande dePensiones Penslones dede EmpleadosEmpleados dede UnicajaUnicaja yy UnicajaUnicaja Banco’.Banco". U b)b) Defined-benefitDefined-benefitpost-ernployment post-employment remunerationremuneration extemalizedexternalized under an insuranceinsurance policypolicy qualifyingqualifying for thethe externalizationexternalization ofof commitmentscommltments pursuantpursuant toto RoyalRoyal DecreeDecree 1588/1999,1588/1999, coveringcoveñng pensionpension commifrnentscommitments forforaa group of early-retiredearly-retired employees.employees.
c)c) Dened-benefitDefined-benefitpost-employment post-employmentremuneration remuneration extemailzedexternalized underunder an insurance policypolicy qualifying for U thethe externalizationextemailzation ofof commitmentscommifrnents pursuantpursuant toto RoyalRoyal DecreeDecree 1588/1999,1588/1999, coveringcovering pensionpension commllmentscommitments forfor aa groupgroup ofofeady earlyretired retiredemployees. employees.
[3 2.12.22.12.2 QtherOther long-termlong-termremuneration remuneration- -Phased Phased early retirementretirement AsAs explainedexplained inin NoteNote 40.1,40.1, thethe Institution reached reached anan agreementagreement for phased early retirementretirernent with thethe ri employeesemployees representatJvesrepresentatives for spedftcspecific situabonssituations affectlngaffectingcertain certainemplcyee employeegroups groups andand toto bdngbring Viothe lnstitubon’sInstitution'sworkforce workforceinto Intoune linewith withits itsorganlsational organisationalneeds. needs.The The agreementagreement wilIwill bebe inin force fromfrom 31 U DecemberDecember 20152015 andand employees mustrnust meetmeet thete followingfollowing requlrementsrequirements inin order to qualify ForFor tethe calculationcalculationof of commiftnentscommitmentsb toemployees employeesarislng arisingftom fromViet thatagreement, agreement,the the organizabonorganizationhas has beenbeen fl basedbased on assumptions mademade inIR accordanceaccordance withwith marketmarlçet conditions andand the characteristics of thethe gmupgroup U covered.covered. DudngDuringthe theyears years 20132013 andand 2012, tethe Group reachedmached somesorne agreementsagreements individuallyindMdually consistent, mainlyrnainly n inin earlyearly retirementretirement agreementsagreements throughthrough contractcontract suspenslons,suspensions, whose commitments ateare adequately U coveredcovered inineach each ofofte the aboyeabovedates. dates. 2.12.32.12.3 OeathDeath andand disability [1 TheThe commitmentscommitments assurnedassumed by the Group to cover current employee death and disabilitydlsablulty contingencies U byby meansmeans of insuranceInsurance policiespolicles contracted with UnlcorpUnicorpVida VidaSA. S.A.underthe under thepension pension planplan (Note 2.12.1)2.12.1) areare recognized In thethe consolidatedconsolidated Incomeincomestatement statement inin anan amountamount aquelequal teto the insuranceInsurance premiumspremlums accruedaccrued duñngduring tethe year.year.
2.12.42.12.4 Length-of-seMceLength-of-serviceawards awards
TheThe Institution has has takentaken itsits cornmitmentcommitmentto tomeetlng meetingemployees employees aa benefltbenefit toto tethe samesame amount of €1615€1 ,615 andand €2000,€2,000, updatable by the percentage ofof basicbasic salarysalary revisionrevision ofof thete CollectiveCollective Agreement inin thethe U eventevent thatthat thethe employee rneetsmeets 20 andand 3535 yearsyears ofof serviceseMce inIn thethe institution,insfitution, respectively.
Pre-reflrementPre-retirementcommitments commitmentsare arerecognized, recognized,for forah allapphicable applicablepurposes, purposes,using using thethe same criteriacñteña explainedexplained aboyeabove forfor defineddefinedbeneflt benefitcommitmenft, commitments,except exceptthat thatte theentire entirecost costof ofpast pastseMces services andand tethe actuadalactuarial gainsgains oror loaseslosses aream recorded immediatelyimmediately whenwhen teythey añse.arise.
2.12.52.12.5 SeveranceSeverance Indemnitiesindemnities U UnderUnder currentcurrent legislation,legislation,Spanlsh Spanishentibes entitiesare are requiredrequiredto to paypay severance Indemnitieslndemnibes toto employees dismisseddismissed forter no Justifiablejustifiable cause.cause. There is¡a no workforcewortcforce reduction plan in raspadrespect of which a provisionprovislon should be recordad for severance indemnities. r should be recorded for severance indemnities. Li rl U 4343 n u u u u
2.132.13 incomeIncome tax
IncomeIncometax taxexpense expense IsIs recognized InIn consolidatedconsolidatedte the incomeincomestatement, statement,except except wherewhere itit derivesderives fromfrom aa flnsactiontransactionwhose whose resultaresults amare takentaken directlydlmcfly toto equity,equity, ininwhlch whichcase case aa balancing entryentry forfor incomeincome taxtax IsIs alsoalso U mademade in tethe GroupsGroup% equfty.equity. IncomeIncome taxtax expenseexpense terfor thethe yearyear Isis calculatedcalculated asas tax payable Qnon taxabletaxable incomeIncome forforte theyear, year,as as adjustedadjusted forfor fl vahatlonsvariationsduring duringthe theyear year inin assetasset and liabilityNabllity balancesbalances arisingarisi ng from temporarytemporary differences,differences, taxtax deductionsdeductions U andand allowances,allowances, andand anyany tax-losstax-loss (Note(Note 23).23). TheThe GmupGroupconslders considers Uiatthat therethere isis a temporary difference whenwhentere there isis a differencediffemnce between thethe carrying [j amountamount andand methe taxable amount o!of an asset oror liability.llabllity. TheThe amount attñbutedattributed toto anan asset oror liabilityIiability forfortax tax U purposespurposes ¡ais treatedtreated as the taxtax base.base. AA taxabletaxable temporarytemporary differencedifference Isis a differencedifference that will genemte generate aa future obligationobligationter forthe theGroup Groupto tomake makea a paymentpayment toto thethe relevant authority. AA deductibledeductible tempomrytemporarydifference differenceIs isa a differencedifferencethat thatwill willgenerate generatea aretund refund dghtrightor ora areduction reductionIn Ina apayment paymentte tobe be mademade teto tethe relevantmlevant authority inin tethe future.future.
TaxTaxcredita creditslar fordeductions deductionsand andaliowances allowances andand taxtax creditacredits forfortax-loss tax-loss canycarry!orwards forwardsare areamounts amounts that,that, thoughthough generatedgenerated on the completioncompleUon Dfof anan activity or orobtainment obtainmentof ofa aresult, result,are are notnot applledappliedlcr fortax taxpurposes purposes inin thethe fl relevantrelevanttax tax retumreturn untiluntil thethe conditions stipulatedstipulated InIn taxtax legislation areare fulfilled,fulfihled, and and providedprovidedthe the Group U consldersconsiders thatthat apphlcationapplication inInfuture futureyears yearsIs isprobable. probable. CurrentCurrenttax taxassets assets andand liabilitiesIiabilWes am areamounts amountstat thatte the EntityEntityexpecis expectste to mcoverrecoverfmm fromor orpay payte to tethe ccrrespondlngcorrespondingtax taxautoñty authoritywithin within12 12months monthsas asfrom fromte thedate date onon whlchwhichthey they amare recognized.recognized. DeferredDeferred taxtax assetsassets and liabilitiesllabihities are are amountsamounts thatthat thethe EntityEnbty expectsexpects toto recover fromfrom oror paypay toto thethe corresponding taxtax U authodtyauthorityin Infuture futureyears. years.
DeferredDeferredtax tax habflitiesliabilitiesare arerecognized recognizedlcr foraPI alltaxable taxabletempomry temporarydiffemnces. differences.Nonetheless, Nonetheless, deferred tax liabilitieshiabilwes L resultingresultingfrom fromte therecordlng recordingof ofgoodwill goodwillam arenot not recognized. TheThe GroupGroup onlyonly recordsrecords deferreddeferred taxtax asseftassets arisingañsing fromfram deductible temporary differences,differences, taxtax creditscredits forfor q deductlonsdeductions oror allowancesallowances oror forfortax taxlosses losses whenwhen thethe fohlowingfollowingconditions conditionsare arefulfihled: fulfilled: _ U - DeferredDeferredtax taxasceta assets are onlyonly recognized in theme eventevent thatfiat thete GroupGroup willwiIl probablyprobably record sufflcientsufficienttax taxgalns gainsin Inthe theMure futureto tooffset offsette themlevant relevantamounts; amounts;and and
í - DeferredDeferredtax taxassets assets deñvingderivingfrom fromtax taxIosses losses hayahave misenarisen duedue to causes identifiedidenhfied as unlikelyunlikely toto U arisearise again.again. n DeferredDeferredtax taxasceta assets and liabilitieshiabflitles amare not recognized when an assetasset oror liabilityIiability isIs Initiallylnitiaily recorded recordedin in tethe 1 accounft,accounts, whichwhichdoes does notnot msultresult fromfroma a businessbusiness combination and, and, atat thethe recognition date, date, whichwhichdoes does notnot U affectaffectreported reportedresulta results orortaxable taxable income.income.
AtAteach each accountingaccountingclose, close,deferred deferredtax taxassets assets and liabilitiesIlablhities are are analysedanalysed toto ensureensure fiatthat they remain vahidvalid andand U anyanynecessary necessary adjustmentsadjustments amare made accordingly. U r U
U 4444 L u u
2.142.14 TangibleTangible assetsassets
2.14.12.14.1 Property, plant andand equipmentequipment brfor ownownuse use U PropertyProperty,plant plantand and equipmentequipmentbr forown ownuse usecomprtse compriseasseft assets owned or being acquired under finance leasesleases that the GroupGroup holds forbr current or futurefuture useuse brfor purposes other thanthan communitycommunity projecisprojects or forfor thethe productionproductionor orsupply supplyof ofgoods goodsand andwhlch whichare areexpected expectedto to bebe usedused barfor moremore thanthan oneone financlalfinancial year.year. fl AmongAmongother otherassets, assets, this category includes property,property,plant plantand and equlpmentequipment receivedreceived byby ffiethe GroupGroup toto U fullyfullyor orparlially partiallyseflle settlefinanclal financialassets assetsrepresenting representingdebt debtclalms claimsagainsi against tNrdthird parliesparties andand whlchwhich methe GroupGroupplans plansto touse use ftselfitselfon ona acontinuous continuousbasis. basis.
Property,Property, plantplantand and equipmentequipmentfor forown ownuse use amare carfiedcarried atat acquisition costcost Inin thethe consolidatedconsolidated balancebalance sheet,sheet, wtiichwhich IsIs thethe fair valuevalue ofof anyany consideration providedprovidedplus plusffie the totaltotalamount amountof ofcash cash paymentspayments mademade or committed,committed, lessless accumulatedaccumulated depreclationdepreciationand and anyany estimated losses determineddeternined by compadngcomparingme the carrylngcarryingamount amountof ofeach each ItemItem withwithlis itsrecaverable recoverable amountamount. TheThe acquisitionacquisitioncost cost ofof methe materialmaterialassets assets elernentselements for ownown useuse and freelyfreely available includesincludes methe valuationvaluationof offfiese these thaithat waswas mademade onon 1 JanuaryJanuary 2004 at ftirfair value,value.ibis Thisfair fairvalue valueas asat at1 1January January2004 2004was wasobtained obtainedon onme thebasis basis ofofvaluations valuationsperformed performedby byindependent independentexperts. experts. fl ToTo thisthis end,end, thethe acquisition costcost ofof assetsassets awarded to theffie GroupGroup and includedincluded Inin property, plantplant andand equlpmentequipment forforown ownuse use isis equalequal loto methe carrylngcarrying amountamount ofofthe the financialfinancialassets assets pmvidedprovided Ininexchange exchange for U ffiethe award.award.
DepreciationDepreciationis Iscalculated calculatedusing usingthe thestralght-llne straight-linemeDiad methodbasad basedop onIba theacquisition acquisitioncosi costof ofthe theasseis assets lessless theirtheir residualresidual value,value. ibaThe landland onon whichwhichDie the bulldlngsbuildingsand andother otherstructures structuresstand stand lais understoodunderstood toto Li havehave enan Indefinite lifelifeand andIs istherefore thereforenot notdepreciated. depreciated.
AA balancingbalancing entryentryfor forannual annual depreciationdepreciationdiarges charges brfor property,property, plantplant andand equipmentequipment lais recognized in ‘Depredatlon"Depreciation- -Property, Property,plant plantand and equipmenrequipment"in inthe the consolidatedconsolidated Incomeincome statementstatement. DepreclationDepreciation lais chargedcharged alat methe following rates, rates,basad based onon averageaverage estimatedestimated useful lives:lives:
AnnualAnnual reterate
BulldingsBuildings 1%1% a3%a 3% FumitureFurnitureand and lnstallaflonsinstallations 8%8% aa 13%13% MachineryMachineryand andelectronic electronicequipment equipment 13%13% aa 27%27%
U AlAteach each accountingaccounting clase,close, the Group checks for internal oror extemalexternal lndlcationsindications thatthat thethe canylngcarrying amountamount ofofproperty, property,plant plantand andequipment equipmentexceeds exceeds Ibethe recoverable amount,amount, inin whlchwhichcase case thethe cariyingcarrying amauntamount ofofDio the assetasset in question is written downdownto tolis itsrecoverable recoverableamounl amountand and Murefuturedepreciation depreciationdiarges chargesam are adjustedadjusted Inin propoWonproportionto tome the adjustedadjusted carryingcarryingamount amountand and thethe newnew residual usefuluseful lib,life, ifIfa a newnew U estimateestimate lsIs necessary. Iflf applicable, mithiss write-downof ofproperty, property,plant plantand andequipment equipmentIs Ischarged chargedto to ffiethe u consolidatedconsolidated lncomeIncomestatement statementcaption caption‘Impalrment Impairmentlosses losses onon otherother assetsassets (net)".(net)’. u 1 4545 Li u u u
Similady,Similarly,where whereViere thereare arelndicaüons IndicationsViet thatPie thevalue valueof of impairedimpairedproperty, property,plant plantand andequipment equipmenthas has beenbeen recovered,recovered, Piethe Group recognizes the reversalrevemal of Piethe impairmentlmpalrment loasloss shown inIn prevlousprevious periodsperiods byby creditingcreditingthe theincome incomestatement statementcaption caption‘lmpairment "Impairmentlosses losseson onother otherassets assets (net)”(net)" andand adjusting futurafuturedepreciation depreciationcharges chargesaccordingly. accordingly.The Thereversal reversalof ofPie thelmpalrment Impairmentlasa losson onen anasset assetIn inno noevent event U maymayentali entailen an increaseincrease InIn itsits canylngcarryingamount amountIn inexcess excessof of thethe amountamount thatthat wouldwouldbe be carñedcarried lfif ncno impalrmentimpairmentloss lossliad hadbeen been racognizedrecognized ininprior prioryears. years. í AddWonally,Additionally,Pie theesVmated estimateduseful usefullives livesof ofpmpeñy, property,plant plantand andequipment equipmentfor forown ownuse useare arereviewed reviewedat at u leasileastyeañy yearlylo todetect detectsignificant significantchanges. changes.It Ifnecessary, necessary,adjustments adjustmentsare areruado madeto todepreciation depreciationcharges charges forforfuture futureyears yearsIn inthe theincome incomestatement statementon onthe thebasis basis ofof Piethe newnew usefuluseful lives.lives. fl RepalrRepairand andmaintenance maintenancecosta costsfor forproperty, property,plant plantand andequipment equipmentfor forown ownuse, use,are arecharged chargedto to Piethe U consolidatedconsolidatedIncome Incomestatement statementduring duringPie the finandalfinancialpedod periodin inwhlch whichthey theyare are incurred,incurred, InInlbs the captioncaption ‘OPier"Othergeneral general adminlstrauveadministrativeexpenses’. expenses".Financial Financialcosta costsincurred incurredto to financefinance property,property,plant plant andand equipmentequipmentfor forown ownuse useare arerecognized recognizedin inPie theconsolidated consolidatedincome incomestatement statementwhen whenthey theyaccwe accrueand anddo do Fi notnotform formpart partof ofPie theecquisiUon acquisitioncost costof ofthe the assets. U 2.14.22.14.2 lnvestmentInvestment propertyproperty
"Investmentlnvestment property property"in inPie theconsolidated consolidatedbalance balancesheet sheetIncludes includesthe the carryingcarryingamounts amounts ofof land,land, O buildingsbuildingsand andoPier othersftuctures structuresheld heldfor forrental rentalorto or toobtaln obtaina again gainen onPie thesale saleof ofPie thepropefty propertyas asa a resultresult u ofoffuture futuremadcet marketprice priceincreases. Increases.
TheThe samesame methods applledapplied loto property,property,plant plantand and equlpmentequipmentfor forown ownuse use(Note (Note2.14.1) 2.14.1)are areused used toto recognizerecognizethe the acqulsitlonacquisitioncost, cost,depreclation, depreciation,estimated estimated useMuseful Ofelifeand andimpalrment Impairmentloases losseson oninvestment investment U property.property. o 2.14.32.14.3OPier Otherassets assets leasedleased mitout underunderoperating operatingleases leases U TheThe consolidatedconsolidatedbalance balancesheet sheetline line«Qther "Otherasseft assetsleased leased outout underunder opemtingoperatingleases’ leases"records records Piethe carryingcarryingamounts amountsof ofproperty, property,plant plantand andequipment equipmentoPier otherPian thanland landand andbuildings buildingsleased leasedout outby bythe the GroupGroupunder underoperahng operatingleases. leases.
U TheThecarne same rnethodsmethods appliedapplied loto property,property,plant plantand andequipment equipmentfor forown ownuse use(Note (Note2.14.1) 2.14.1)are areused usedto to recognizerecognizethe theacgulsltion acquisitioncost costof ofasseta assets leasedleased out, depreciation,depreciation, estirnatedestimated usefulusefullife lifeand and anyany impairmentImpairmentlosses. losses. U 2.14.42.14.4 RecovembleRecoverablearnount amountof oftangible tangibleasaete assets
n TheThe tangibletangibleassets assets for own useuse and investmentinvestment property are carried at acquisitionacqulsition cost, recognlzlngrecognizing 1 1 impairmentimpairmentadjustnents adjustmentsIf ifthe theassets assets recoverablerecoverable amountamount isa lowerlower Pianthan cost.cost. AccordlngAccordingto tolAS lAS36, 36,the the U recoverablerecoverableamount amountis isthe thehiglier higherof offair fairvalue valueless lesscosta coststo tocalI selland andPie thevalue valuein inuse useof ofthe theassete. assets. WhereWhereIbera therela Isno noreijable reliablemeasurement measurementof offair fairvalue, value,Pie thevalue valuein inuse useof ofPie theasaete assetsIs isused usedas as Piethe recoverablerecoverableamount, amount,entalllng entailingPie theestimation estimationof of futurefuture cashcash lnflowsInflowsand and outflowsoutflows dedvedderivedfrom fromthe the 1 continuedcontinueduse useof ofPie the asaeteassets and fromftorn Pielrtheir final salesale or disposal Piroughthrough offierothermeans; means; aa suftablesuitable U discountdiscountrete rate isIsPien thenapplled appliedto toPie thecasi cash flowsflowscalculated. calculated. AccordingAccordingto tolAS IAS36, 36,an anasaete assetsvalue valuein inuse use mustmust bebe determined,determined, In general,general, asas follows: U oo FutureFuture cashcash flowfiow projectionsprojections rnustmust be basedbased onon reasonablereasonable assumptionsassumptions that represent managementamanagements bestbest esfimateestimate of Piethe economic conditionscondiflons Pialthat willwillexist existovar overPie theasceta assets residual life andand onon Piethe most recent budgets or financialfinancial forecastaforecasts approved byby rnanagement,management, excludingexcludingany any F futurafutureestimated estimatedcash cash lnflowInflowor or outfiowoutflowPiat that isa expected fromfmm futureMure restructuringsrestructuñngs oror fromfrorn U lmprovementsimprovementsIn inPie thereturn returnon onassets assetsoriginally originallyplanned. planned.Tbe Theestirnates estimatesbased basedon onPiese thesebudgets budgetsor or forecastaforecasts rnustmust cover aa rnaxlmurnmaximum periodperiod ofof fivefiveyear, year,unless unless aa longerlonger peNadperiod maymay bebe justifled.justified. Fi u 4646 fi c Ej U U
oo CashCash flowsflows projectedpmjected beyondbeyond theme periodpodad coveredcovered byby theme mostmost recentmcent budgetsbudgets oror financialfinancial forecasts,forecasts, loto thethe end of the assets usefuluseful life,life, mustmust bebe estimatedestimated byby extrapolatingextrapolating the projectionsprojections referred toto
- previously,previously,applying applyinga aconstant constantor ordecreasing decreasinggrowth growthrata, rate,unless unlessan an lncreasingincreasing ratorate maymay be justifledjustifiedwhich, which,in inany anyevent, event,must mustnot notexceed exceed thethe long-termlong-term averageaverage growth raterate forfor thethe relevantrelevant Li productaproducts oror industries,Industries, thethe countrycountry ininwhich whichffie theentity entityoperates operatesand andthe the marketmarket ininwhldh whichthe theasset asset ¡5is usad,used, unless a higherhigher growthgrowm rate may be jusfifled.justified.
TheThe discount raterate usadused is a pre-taxpie-tax raterate thatthat reflectsreflecta theme currentcurmnt marketmarket evaluationevaluation of methe time value of money andand speciflcspecific ñsksrisks affectngaffectingihe theasset asset malthat llavehave nolnot already been adjustedausted inin theme estimates ofof futureMure flows.flDWS.
AA ratorate that reflects the current market evaluation of methe time value of money and specificspeclflc risksdsks affecting methe fl assetasset is deemed tolo bebe thethe yieldyleld that investors wouidwould requirerequirewere werethey theyto tochaose choosean an investnentinvestmentthat thatgenerates generates cashcash flows methe amounts, timing andand risk profile of ofwhlch whicham areequivalent equivalentlo tolb thefiows flowsthat thatIba the GroupGroupexpects expects loto U obtainobtain fromfromme the assetasset Inin queston.question. This dlscountdiscount raterate Is5 estimated Qnon methe basis ofof theme raterata implicitimplicit Inin current marketmarket flnsacfionstransactions involvinginvolvingsimilar similarassets. assets.Where Wherelbe thediscount discountrata ratefor fora a specific assetasset is notnot directlydirecty availabieavailable fwmfromlbe themarket market,substitutes substitutesare areused used loto estimateestimate Ibathe discountdiscount rete.rate.
U 2.152.15 IntangibleIntangIble assetsassets O IntangibleIntangibleassets assets areare identifiablenon-monetary non-monetaryand andnon-physlcal non-physicalassets assets thatthat alisearise fromfromlegal legalbusiness business oror havehave beenbeen developed internallyintemally byby ifiethe Group.Group. IntangibleIntangibleasseft assets are only recognized when meirtheir cost may be reliably andand objectvelyobjectivelyestJmated estimated andand lbethe GraupGroup considers they will probablyprobablygenerale generate Murefuture economiceconomic beneflts.benefits.
IntangibleIntangibleasseta assets are Initiallylnitially recognized recognizedat atacquisition acquisitionor orproduction productioncosI costand andare aresubsequently subsequentlymeasured measured atat U costcost less,less, where appropdate,appropriate, any accumulated depreciation andand impairment losses losses theythey experienced.experienced. IntangibleIntangibleassets assets areare carfiedcarried in the consolidatedconsolidated balance sheet atal acquisitionacquisition or productionproduction cost,cost, netnet of accumuiatedaccumulated amortization andand anyany Impairmentmpairment losses. losses.
IntangibleIntangibleasseft assets cancan have anan "indefinite“indeflnfte life”life"when, when,on onthe the basisbasis of anan analysis of all relevantmlevant ftctors,factors, we concludeconclude lbatthat Iberethere is no foreseeabieforeseeable limitIimit loto Ibathe pedodperiod ovaroverwhich which15 isexpected expected loto generategenerate nelnet cash flowsfiows brfor U? consolidatedconsolidated companies,companles, oror "finite“finite useftiluseful lite”life"in inthe themmaining remainingcases. cases. U IntangibleIntangibleassets assets withwithIndefinite Indefiniteuseful usefullives fivesare arenot notamortized, amortized,but butmther ratherst atthe theend endof ofeach each year,year, thethe consolidatedconsolidated companlescompanies revise their remaining usefuluseful liveslives ¡nIn orderorderto to ensureensure matthat they aream stillstilI indefiniteindefinite oror o otherwiseotherwise proceedproceed accordingly. U IntangibleIntangibleasseto assets with flnftefiniteuvas livesare areamortized amortizedovar overme the memodsmethods similarsimilar totoffiose those adoptadadopted for methe amortizationamoruzation ofof tangible ascetaassets criteria.criteña. TheTha annualannual amortizationamortization of intangibleIntangible assets withwith finitefinite useful lives Is recagnizedrecognized
underunder “Depreciation"Depreciationand and amortizationamortization- -Intangible IntangibleAssets” Assets"in inIba theconsolidated consolidatedincome incomestatement. statement U ForFor intangible assets assets with Indefiniteindefinite useful useful liveslives andand the finitefinita useful life,life, the consolidatedconsolidated companiescompanies recognizerecognize anyany Iossloss malthat may llavehave occurred inin Ibethe canyingcarryingamount amountof ofmese these assetsassets due tolo impairment,impainnent using aa balancingbalancing entryentry inin 9osses"losses impairmentimpairmentof ofother otherasseft assets (net) - Goodwilland and otberother intangible “assets "assets ofof thethe consolidatadconsolidated incomeincomestatement statement. TheThe cilIadacriteriafor forrecognizing recognizingimpairment impairmentlosses losseson onmese theseasseta assets and,and, wherewhere U appropriate,appropriate, methe reversalreversal of impairmentimpairment iosseslosses recognized inin priorprioryears years areare similar loto tbosethose used forter tangible assetsassets forfor own use (Note 2.14.1).
4747 Fi L u pu u
2.162.16 GoodwillGoodwill
2.16.12.16.1 Accounting of goodwill U TheThe excessexcess of the costcost ofof shareholdingsshareholdings in entities measured using the equityequity method ayerover their acquiredacquired carryingcarryingamounts, amounts, adjustedadjusted at ifiethe date ofof first consolidation, isis aiiocatedallocated asas follows:
-- WhereWhere ffiethe excesaexcess may be allocatedallocated to specificspedfic componentecomponents ofof methe acquired company’scompany's u equity,equity,the thevalue value ofofassets assets (or liabilities)whose whose fairfairvalues values areare higherhigher (or Iower)lower)than than methe carryingcarrying amountsamounts stat whlchwhichthey theywem wererecognized recognizedIn inme thebalance balancesheets sheets ofof methe acquired companlescompanies ¡5is increasedincreased (or(or reduced)reduced) accordingly.accordingly.
-- WhereWherethe the excessexcess may be allocatedallocated to specific intangible assets,assets, itIt isla recognized directlydirectiy U inin thethe cansolidatedconsolidatedbalance balancesheet sheet providedprovidedme the fairfairvalue valuemay maybe be reliablyreliablymeasured measuredat at thethe acquisitionacquisitiondate. date.
-- AnyAnyremalning remainingdifferences differencesare arecarfied carriedas as goodwill,goodwill,which whichis isallocated allocatedto toone one oror more U specificspecificcash-generating cash-generating units.units. E? GoodwillGoodwillis isonly onlyrecognized recognizedwhen whenacquired acquiredfor for valuablevaluable considerationconsiderationand and thereforetherefore representerepresents advanceadvance payments made byby theffie acquiringacquiñng entityentity Inin respect ofof futurefuture economiceconomic benefitsbenefite derivingdeñving from u thethe acquiredacquired entitysentity'sassets assets that cannot be individuallyindividually and and separatelyseparately identifiedidentifiedand andrecognized. recognized.
AsAs fromfrom 11 JanuaryJanuary 2013,2013, methe Group hashas recognized goodwillIn Inassociates associates asas part of theffie acquisitionacqulsition
costcost ofof thethe entuesentities acqulred,acquired, ininthe the consolidatedconsolidated balancebalance sheetsheet item¡tem "Equity“Equity investmentsinvestments -- Associates,Associates", U asas explainedexplained in Note 4.4. Exclusively for forcomparability, comparability,the theGroup Grouphas hasrestated restated thethe comparativacomparative figuresfigures inin thethe consolidatedconsolidated balancebalance sheetsheet at 3131 DecemberDecember 2012,2012, recognizingrecognlzing goodwill ininassociates associates inin thethe Item¡tem
tquity"Equitylnvestments Investments- -Associates. Associates".
U GoodwillGoodwillauIred acquiredas asfrom from1 1January January2004 2004 lais carTiedcarried atat acquisitanacquisition costcost and goodwill acquiredacquired priorprior toto thatthat datedate isIs cernedcarried stat thethe netnet amountamount recognizedrecognized atat 31 December 2003, calcuiatedcalculated in accondanceaccordance with n thethe regulations previouslypreviouslyapplied appliedby bythe the GroupGroup (Bank(Bankof of SpainSpain CircularCircular4/1991, 4/1991,14 14 June).June). InIn both cases1cases, stat each accountingaccounting close, anan estimateeshmate IsIs mademade toto identifyidentify any impairmentimpahment matthat wouldwouldreduce reducethe the recoverablerecoverableamount amount toto belowbelowthe the netnet cost recognized;recognized; if so, thethe goodwillgoodwill is whttenwritten downdown mroughthrough thethe itemitemimpairment "Impairmentlosses losseson onother otherassets assets (net)(net)"in inthe theconsolidated consolidatedincome incomestatement statement.
GoodwillGoodwillimpairment impairmentloases lossesam arenot notsubsequenfly subsequentlyreversed. reversed.
2.16,22.16.2 Negative goodwill
NegativeNegativedifferences differencesbetween betweenthe thecost costof ofthe theshareholdings shareholdings Ininconsolidated consolidatedentities entitiesand andassociates associates with U respectrespect toto thethe relevantrelevant carrylngcarryingamounts, amounts, adjustedadjusted atat thethe date of the first consolidation,consolidation,are are recognizedrecognized asas follows:follows:
¶ -- WhereWhereffie the excessexcess may be allocated to specificspecffic componentecomponents ofof ffiethe acquired company’scompany's u equity,equity,the thevalue value ofofhabilites liabilities(en (orasaete) assets)whose whose ffiirfairvalues values areare higher (or(or lower)lower)than than methe canyingcarrying amountsamounts atat whichwhichthey theywere were recognizedrecognizedin inme thebalance balancesheets sheets ofof ffiethe acquired companles,companies, lais increasedincreased (or(or reduced)reduced) accordingly. bother U -- TheThe remainingremainingamounts amountswhich whichmay maynot notbe be ahlocatedallocated areare recorded under "Other gama’gains" In thethe consolidatedconsolidated incomeincome statementstatement forfor ffiethe year in which capitalcapital ais acquiredacquired inin ffiethe consolidatedconsolidated entityentityor orassociate. associate. Li [7 Li 4648 u
L
u 2.17 Inventorieslnventoñes This categorycategory ofof thethe consolidatedconsolidated balancebalance sheetsheet records non-financial assetsassets that Ihethe Group:
EJ - Hold forforsale sale InInthe the ordinaryordinarycaurse course ofof business;business;
- lsIs currenUycurrently producing,producing, buildingbuilding orordeveloping developing forforthis thispurpose, purpose, or
U - Plans to consume inin the production process oror inIn theffie provisionprovislon of services.services. Therefore “Inventories”"Inventories"include includeland landand andother otherproperties propertiesthe theGroup Groupmaintains maintainsfor forsale saleor or forfor itsits realreal estateestate activibes.activities.
InventariesInventories areare measured atat theme lowestlowest cost,cost, whichwhich Incorporatesincorporates allall theme outlaysoutlays made forfor theirffieir acquisition and subsequent transformation;transformation; the directdirect andand indirectindirect costscosta Incurredincurred toto obtainobtain theirtheir currentcurrent conditioncondftion and location; methe financial costacosts directly aftñbutableattributableto toffiem, them, providedprovidedmey theyneed need aa peñadperiod ofof timetime longerlonger manthan eneone year forfor meirtheir sale (taking(taking intointa accountaccount theme previously-mentionedpreviously-mentioned criteriacñteña for methe capitalizationcapftallzabon of financial casiscosts of U tangibletangible asseffiassets forfor own use); and theirthelr “realisable'realisable net value".value”. The realisablerealisable net value isIs understoodunderstood toto bebe ffiethe estimated pricepilca of meirtheir disposal duñngduring methe ordlnaryordinary caursecourse ofof business,business, less theme estimatedestimated costscosts forfor finishingflnishlng thelrtheir productianproduction andand thethe necessary costscosts forfor carryingcarrying out meirtheir sale.sale.
U Both thethe reductions asas well as,as, if applicable,applicable, thethe subsequentsubsequent recoveries inIn methe realisable net value belowbelow meirtheir net bockbook value are recorded In the income statement for methe year Inin whlchwhich theythey taketake place under the caption Fi MlmpaimientImpairment losses onen rest of assetsassets (net)".(net)”. U The carrylngcarrying valuevalue ofof soldsold Inventoriesinventoriesis iswñtten writtenoff offand andrecorded recordedas as anan expenseexpense under the captioncaption "Other“Other operating expenses”expenses' onon theme consolidatedconsolidated income statementstatement. Ti The assets allocatedallocated by theme Group,Group, consldeñngconsideringthese these asas masethose assets thatmat theme GroupGroup receivesreceives fromfrom its U borrowers oror other debtors to satisfysatlsfy ,, totallytotally oror partially,partially, financial assetsassets that representrepresent collectioncollection rightsñghts against these,mese, independentlyindependenfly of theme mannermanner inin whichwhlch theme propertyproperty rightsñghts are acquired,acquired, andand that,mat, inin lineune withwim meirtheir naturanature and theme end toto whichwhich theymey are applied,applied, areare classifieddassified as inventoriesinventaries by methe Group, are bookedbooked initially at atmeir theiracquisWon acquisitioncost, cost,understanding understandingmis thisto tobe beme the netnet book value of methe debts fromfrom whichwhlch theymey U originated, calculatingcalculatingmis thisnet netvalue value inin uneline wimwithme the normnormappllcable applicableto tome the SavingsSavings Bank. AfterwardsAfterwards the allocated assetsassets aream subjectsubject toto theme estimationestimation of theme correspondingcormsponding ImpairmentaImpairmentsmat, that,as asmay maybe be methe case,case, arise on these,mese, calculatedcalculated ininline line withwim methe general determinationdetermination criteriacñteña forforme the inventoriesInventaries Indicatedindicated earlier.
U 2.18 ProvisionsPmvisions andand contingentwntingentliabilities liabilities
When prepadngpreparing the consolidated enlitiesentities annual accounts, theirmeir respective DirectorsDirectors dlstinguishdistinguish between:between:
U - Provisions: creditorcreditorbalances balances matthat covercover obllgationsobligationsin inforce forceat atme the balancebalance sheet date derivingderiving from psstpast events that couldcould give rise toto financialfinanclal loaseslosses for the entities.entities. Although such such losseslosses are regardedregarded as probable and areare specificspeciflc inin nature, the amount and/or settlement date involvedInvolved cannotcannot be ¡3 determlned,determined, and - ContlngentContingent liabilities:liabilities:possible possibleobligations obligationsdeñving derivingfrom frompast past eventsevents which may materialisematehalise r subject to one or more futureMure events beyond theme controlcontrol of methe consolidated entities. U ‘PieThe Group'sGroup’s consolidatedconsolidated annual accountsaccounts Includeinclude allall significantslgnificent provisions forfor obligahonsobligationsffiat thatam are deemeddeemed more likely toto arisearise manthan notnot toto arise.arise. ContingentContingent liabilitiesIlabllwes are notnot recognizedrecognized inin theme consolidatedconsolidated financialfinancial statements, althoughalmough informationinformation is provided in accordance withwfth applicable regulationsregulatlons InIn accordance withwith IASlAS 37 (Note 17).
PmvisionsProvisionsquanfifled quantifiedusing usingme the bestbest information avallable availableregarding regardingme theconsequences consequencesof of methe event inin question, and re-estimated at theme yearyear end,end, areare appliedapplied tote meetmeet thethe specificspeciflc obligationsobllgations forfor which meythey wemwere f originally recognized recognizedand and fullyfullyor orparüally partiallyreverted reversedshould shouldsuch suchobligations obligationscease ceaseto toexist existor ordecrease. decrease. U 49 Fi U Li ti u.
At year-end 20132013 and 2012, a numbernumber ofof legallegal proceedingsproceedlngs and claims had beenbeen instigatedinstigated against the consohdatedconsolidated entities,entities, arisingarising inin thethe ordinaryordinarycourse course ofof business.business. The Group'sGroup’s legallegal advisorsadvisors and directorsdirectors consider that methe outcomeoutcome of thesethese proceedingsproceedings andand claimsclaims willwill not havehave aa significantslgnificant impact on the consolidated annual accounts for thethe years in whichwhichthe the judgementsjudgements areare issued.issued.
Provisions deemeddeemed necessarynecessary as stated aboveaboye areare chargedcharged oror creditedcredited toto theme consolidatedconsolidated income statement capfioncaption "ProvisionsPmqisions (net)".(net).
2.19 ConsolidatedConsolidated cashcash flowflow statements
The temisterms employed in Ibathe Group consolidated cashcash flow statementsstatements corresponding loto thethe yearsyears 2013 and 2012 have theIbe followingfollowing meanings:meanings:
- Cash flows:fiows: Inflowstnflows and outflowsoutflows of cashcash andand cashcash equivalentsequivalents (short-term,(shoñ-term, highly-liquidhighly-Iiquid lnvestiientsinvestments inin respectrespect ofof whichwhich thethe riskñsk ofof valuevalue fluctuationsfluctuaUons isIs low).low).
- OperatlngOperating activities: typical typicalcredit creditinstitution institutionactivities activitiesand andother otheractivities activitiesthat thatmay may notnot be U classified as investinginvesting oror financinghnanclng activities.
- lnvestingInvesting actvities:activities:acquisWon, acquisition,sale saleor ordisposal disposaltbrough throughother othermeans means ofof non-currentnon-currentasseft assets and U other lnveslmentsinvestments not included inin cashcash andand cash equivalents. - FinanclngFinancing activWes:activities:activities activitiesthat thatcause causechanges changes inin methe size andand compositioncomposition of equityequity and llabilitiesliabilities andand dodo not rmform palipart of operatingoperating activities.activWes.
U As part of theme cashcash flowsflows fromfrom operating activities,activibes, certaincertain adjusfrnentsadjustments are included to obtain methe amount ofof mosethose flowsflows on theme basisbasis ofof consolidatedconsolidated resultsresulta forfor theIbe period.pedod. AtAt 3131 DecemberDecember 2013 andand 2012,2012, "Other‘Other adjustments”adjustments" areare Included,included, in additionaddibon to depreciationdepreciaton andand amortization,amortization, relatingrelating toto consolidatedconsolidated incomeincome U statement items¡tema that do not generate cashcash flows.fiows. When preparingprepañng the consolidated cash flowflow statement, "cashcash andand cashcash equivalents"equivalent? consistconslst ofof highly-liquidhlghly-Iiquid
,1 current investmentsinvesfrnents inin respectrespect ofof whichwhich theme riskñsk ofof valuevalue fluctuationsfluctuations isa low.low. Accordingly,Accordingly, theme GroupGroup UnicajaUnicaja U Banco tseatstreats theme followingfoNowing financial financialassets assets andand liabllwesliabilitiesas ascash cash oror cashcash equivalents: -_ The Group'sGroup’s own cash, whichwhlch ¡5is recognized Inin the consolidated balance sheet captioncaption "CashMCash and deposits atat centralcentral banks".bank?. AtAl 31 December 2013, the Group'sGroup’s own cash amountedamounted to €211,754€211754 U thousand (€220,487(€220487 thousandthousand at 31 December 2012). - The balances heldheld with Central Banks,Banks, whlchwhichare are bookedbooked underunder methe headingheading ‘Cash"Cash andand depositedeposits in Central Bank?Banks"on onffie theasset asset sideside ofof thethe consolidatedconsolidated balancebalance sheet,sheet , which asas at 31 December 2013 amounted loto €1€1,701,503701,503 thousandthousand (€297,995(€297995 thousandthousand at 31 December 2012).
- Net demand depositadeposits alat creditcredit institutionsinstitutlons other otherIban thanthe the balances alat centralcentral banks andand excludlngexcludingmutual mutualaccounts. accounts. DemandDemanddeposits depositsat at credit institutions other otherthan than centralcentral banksbanks are FI recognized, among otherotber items,tema, inin "Loans“Loans andand receivablesreceivables —— Deposits atal creditcredit institutions"instituton? Qnon ifiethe U consolidated balance sheet, amountingamounting loto €93933€93,933 thousand at 31 December 2013 (€69,374(€69374 thousand at 31 December 2012).
- Demand depositedeposits of credit institutions other otherthan than centralcentral banksbanks are recognized, among other
items, inIn ?inanclal"Financial liabilitiesliabilitiesst at amortizadamortized costcost —Credit Creditinstitution institutiondeposita” deposits"on onIbe theconsolidated consolidated balancebalance sheet, amountingamounting toto €59511€59,511 thousandthousand at 31 DecemberDecember 2013 (€175,380(€175380 thousandthousand at 31 DecemberDecember 2012).
At 31 December 2013, Ibethe netnet amountamount ofof balancesbalances receivablereceivable fromfmm andand payablepayable toto creditcredit institutions,institutions, other U than balances relatingrelating to Central Banks, totals €€ 34,422 thousand. At 31 December 2012, thlsthis waswas a negative balance of € 106,006106006 thousand (for the purposes ofof preparingprepañng the consolidated cash flowfiow statement, belngbeing a negative amount, Itit isis notnottreated treated asas "cashcash and cash equivalents").equivalents). 50 1•1 ti LI U U
2.21 BusinessBusiness combinationscomblnaions
BusinessBusiness combinations areare operations Inin which twotwo oror moremore entitiesentities oror econamiceconomic unitsunits ofof thethe samesame entity or FI group ofof companiescompanies amare combined. U ThoseThose business combinationscornbinations completedcompletad as from 1 January 20042004 inIn whichwhich the GroupGroup acquiresacqulres controlcontrol of an entityentity areare recognized as follows:follows:
- The Group estimatedestimated methe costcost of businessbusiness combinations, defineddefinedas as methe fairfairvalue valueof ofthe theassets assets U delivered,delivered, ofof methe liabilitiesliabilitiesincurred incurredand andof ofme thecapital capitalInstrumenta instrumentsissued, issued,as asmay maybe bethe thecase, case, by methe acquihngacquiring entty.entity.
- TheThe ftirfair valuevalue of ifiethe asseft,assets, liabilitiesliabilities and contingentcontingent liabilities ofofme the targettarget entity isis esfimated,estimated, U includlngincludingany anyIntangible Intangibleassets assetsthat thatmay may natnot havehave benbeen recognizedrecognlzed by target company,company, v4iichwhich areare includedincluded ininthe the consolidatedconsolidatedbalance balance sheet.sheet.
- The difference between the netnet fairfair value ofof theme assets,assets, liabilitiesliabilities andand contingentcontingent liabilitiesliabilities of thethe U targettarget entity oror economic unitunitand and methe cost ofof theme businessbusiness combinationcombination Isis recognizedrecognized ¡nin thesethese
- consolidatedconsolidated annualannual accounftaccounts as follows:follows:
• Where methe differencediffemnce betweenbetween thethe net fairfair value of theffie assets,asseta, liabilitiesliabllWes and contingentcontingent U1 liabilitiesliabilitiesof offfie thetarget targetenhty entityor oreconomic economicunit unitand andffie the costcost of theme businessbusiness combinationcombination is negativa,negative, it isis recognizedrecognized In intangibleIntangible assets —— GoodwilrGoodwill"on onifie theassets assets sideside ofof thethe consolidatedconsolidated fl balance sheet, in the eventevent thatmat thethe businessbusiness combinationcombination hashas resulted in the mergermerger or U absorption of thethe targettarget entitiesentities oranor an economiceconomic unltunitother otherman than anan enbtyentityhas has beenbeen acquired. a■ WhereWhere thethe difference betweenbetween thethe net fair value of methe assets,asaete, liabilitiesliabilities and contingentcontingent ti liabilwesliabilitiesof ofthe thetarget targetentity entityor oreconomio economicunlt unitand andthe the costcost of the businessbuslness combinationcombination isis positive,positive, willwillbe be registeradregistered a goodwill ofof consolldationconsolidation matthat in no case willwill be amortized,amortizad, butbut willwill bebe subjectsubjed toto annualannual impairmentlmpairment analysisanalysis setset outout inln theme InternationalInternational FinancialFinanclal ReportingReporting Standards. o PorFor acquisitionsacquisitions ofof sharesshares in stages overovar aa particularparticular entity,entity, for which, underunder oneone of ffiethe purchases, controlcontrol over the investee isis acquired,acquired, theme followingfollowing accounting policlespolicies applledapplied by thethe Group;Group:
E? - TheThe cost of ffiethe business combinationcombination Isis methe sum of methe cost of each individualindividual transaction.transaction.
U - PorFor eacheach acquisition of sharesshares effected to the moment in which thethe Group galnsgains control overover methe investeeinvestee entity, ffiethe goodwillgoodwill oror negafivenegative consolidation diflrencedifference¡a is calculatedcalculated separatelyseparately forfor eacheach transaction,transaction, followingme the procedureprocedure descñbeddescribed previouslypmviously InIn misthis note.note.
U - Any diflerencedifferencebetween betweenthe the fairfairvalue valueof ofthe the assetsassets and liabilitiesliabilities ofofthe the investeenvestee entity atat eacheach of thethe successlvesuccessive acquisition datesdates and their falrfair valuevalue onon methe date theme GroupGroup gains controlcontrol over methe entityentity isis recognizedrecognized asanas an adjustment to the value of thethe assets andand liabilities.Ilabilities. U El f U 52 fi L II L E.. ti 2.222.22 TransfersTransfers ofof financialfinancial assets assets TheThe accounting treatment treatmentof oftransrs transfersof offinanclal financialassets assetsIs is subjectsubject toto thethe manner in which thethe risl •• ItIfah allte theflsks risksand andbenefita benefitsof ofme theasseft assets transferredtransferred are substantiallysubstanfially transferredtransferred toto ffiirdthird parties,parties, suchsuch asas in unconditional sales, sales,sales sales under repos stat fair valuevalue onon methe repurchase date, sales ofof financialfinancial assetsassets withwit a callcali option acquiredacquired oror putput opionoption issuedIssued deeplydeeply boutout of of tethe money,money", assetasset secuhúzaflonsecuritization iiiin wbichwhich tethe assignor retainsretalns no subordinatedsubordinated financingfinancingand and nornor grantsgrants any type ofof creditcredit enhancementenhancement to theme newnew holdersholders andand otherather similarsimilar situations,sftuations, the financialfinancial lnstrumentinstrument trensfenedtransferred isis wñttenwrittenoff offthe theconsolidated consolidatedbalance balancesheet sheet anaand stat the same timetime anyany rightñght oror obligationobligation retainedretained or createdcreated as a resultrasult of methe transfer is recognized.recognized. • lfIf tethe ñsksrisks andand benefitsbenefift associated withwith methe financialfinancial asset transferredtransferred areare substantiallysubstantially retained, suchsuch as InIn sales ofof financial assetsassets under repos atat aa fixedfixed priceprice oror atat theme sellingsehling pricepdce plus interest, 1 secuñtysecurity Iendinglendingcontracta contracts underunder whichwhichte theborrower borrower15 Isrequired requiredto toretum returnte thesama same ayor similarsimilarassets, assets, thethe securitization ofof financlalfinancialassets assets inIn whlchwhich subordlnatedsubordinated financing laIs maintainedmaintained oror otherother typestypes of U creditcreditenhancement enhancement thatthat substanhallysubstantiallyabsorb absorbexpected expectedcredit creditloases losseson onsecuritized securitizedassets assets andand otherother analogousanalogous cases, thethe financialfinanclal asset transferredtransferred IsIs not wñftenwritten offoffte theconsohidated consolidatedbalance balancesheet sheet andand ti continuescontinues toto bebe measuredmeasured using thethe same criteriacriteda asas tosethose used priorprior to the transfer. Conversely, tristhe U followingfollowing¡tenis itemsare arerecognized recognized andand not offsetoffset: - AA financialfinancialllabllity liabilityassociated associatedwiffi withan anamount amountequal equalto to methe benefltbenefit received; WNdiwhich is o laterlater valuadvalued atat itaits amortizedamortized cost;cost; - BatBoth revenuerevenue fromfromthe the flnsncialfinancialasset asset transferredtransferred but not written offoffand and expenseexpense from tethe new financialfinanclal liability.liabllity. •• ifIf neitherneither tethe ñsksrisks flornor benefits associated withwfth the financialfinancial asset transferredtransferred areare substantiallysubstantially ti transferredtransferred oror retained,retained, asas in tethe sale ofof financialfinandal assetsassets with a callcali optionopilan acquired oror a put optionopion issuedissued whicliwhich areare notnot deepiydeeply Inin thethe money"monef or outout ofof thete money",money, financialfinancial asset securitizationsecuritization in n whichwhichthe the assignorassignor assumesassumes subordinatedsubordinated financingfinancing or other types of credit enhancementsenhancements for part of U thethe asset transferredtransferred andand otherother similarsimilar cases, thete followingfollowing distinctiandistinction lsis made:made: - WhereWhere tethe asslgnorassignor does notnot retainretain controlcontrol of the transferred financialfinanclal assetasset: InIii misthis case,case, theme assetasset transferredtransferred Isis writtenwñtten off tethe consolidatedconsolidated balancebalance sheetsheet and any right L oror obligaionobligationretained retainedor orcreated createdas as aa result ofof tethe transfertransfer isis recognized. - WhereWhere thethe assignor retalnsretains controlcontrolof ofthe the transferredtransferredfinancial financialasset assetthe the asset continuescontinues toto bebe recognized lnInthe the consolidatedconsolidatedbalance balancesheet sheet atat anan amount equalequal toto 1 itsitsexposure exposureto tovalue valuechanges changesthat that couldcould arise,arise, also recognizingrecognlzing anan associatedassociated U financlalfinancialllabllity. liability.The Thenet netamount amountof ofthe the assetasset transferred andand associatedassoclated liabilityliabllity willwihl bebe tethe amortized cost of tethe ñghftrights andand obhigationsobligations retainedretained lfIfme theasset asset fransferredtransferred Isis measuredmeasured atat amortized costcost ororthe the fair value of tethe rightsñghts and obligationsoblbgadons retained, if tethe asset transferred is measured at fairfair value.value. U U o U 5353 i’1 U O U u 3. DlsffibutlonDistribution of ffiethe Parent EnVty’sEntity's surplussurplus The proposal for the distribution ofof ffiethe Parent Entity’sEntity's net income forfor 2013 that ffiethe Board of DirectorsDirectora wlllwill 1 submit toto the General Assembly for approval isis setset out below alongalong withwith thethe already approved forfor 20122012 lais as follcws:follows: ‘fliousandsThousands of euros P 2013 2012 U Legal reserve 1070210 702 - CashdMdendsCash dividends 1793017 930 - ¡meInterimHm dividends paidpaid .- - DMdendsDividends pending payment 1717930 930 - Voluntary reserves 7838578 385 - Ne9allveNegative resultsresulta of prevlousprevious exemlsesexercises - (531(531 491) Net profit 107 017 017 (531(531 491)491). U In accordance with LegislativeLegislaUve Royal Decree 1120101/2010 (2(2 July),July), which approves ffiethe Spanish Companies Act 201012010, companlescompanies that obtain profits must allocate 10% of profltsprofits for ffiethe year toto a Legal reserve. AppropriaUonsAppropriations must be made until methe legal reserve reaches 20%20% ofof paid up share capital. TheThe legal reserve cancan bebe used toto Increaseincrease capital pravidedprovided thatthat methe remalningremaining reserve balancebalance doesdoes not falifall below 10% of methe increased capital U stock amount. Until ffiethe balance exceedsexceeds methe 20%20% threshold,threshold, methe legallegal reservereserve maymay onlyonly bebe used toto offset losses, in methe event of other avallableavailable reserves being lnsufficientinsufficient forfor misthis purpase.purpose. U EamlngsEarnings perper simmsham of methe Parent Basic eamingsearnings perper shareshare areare calcuiatedcalculated byby dlvidingdividing thethe netnet profitprofit forfor methe yearyear attributable toto thethe Bank by the n weightedweighted average numbernumber ofof outstandlngoutstanding sharesshares forfor methe year, excluding ffiethe averageavemge number of treasury U altaresshares held dudngduring ffiethe year.year. DhlutedDiluted eamlngsearnings per aliareshare are determined inin a similar manner toto basic eamingsearnings per altere,share, but Ihethe welghtedweighted (3 average number of outstanding altaresshares is adjusted to account for the potentialiypotentially dilutive effect of stock options, U warrants and convertible debt inIn force stat the year end. Set out below are UnicalaUnicaja Banco, S.A.’sS.A.'s basic and diluted earningsearnings perper shareshare forfor thethe financialfinancial yearsyears endedended 3131 December 2013 and 2012: U 2013 2012 Net pmflVQoss)profit/(loss) forffiefor the year (thousand euro)euro) 107 017 (531(531 491)491) WelghtedWeighted averegeaverage numberofoutstandingnumber of outstanding nrdinaiyordinary altaresshams U lessesa tmasurytreasury aharesshares (thousend)(thousand) 800 000000 800 000000 EamingsEarnings porper shareshare Qn(in euros)auras) 0,134 (0,664) U E U fi U 54 fi u U u r U 20132013 20122012 NetNet incomeIncome (Ii,(in thousandsthousands ofof minim)euros) 107 017017 (531(531 491)491) (1 FinanceFinance costacosts ofof mandatoiymandatoryemissions emissions convertibleconvertibleQn (inthousands thousands ofofeuros) euros) - AdjustedAdjusted profitprofitQn (inthousands thousands ofofeuros) euros) 107107 017017 (531(531 491)491) WeightedWeightedaverage average number ofof outstandlngoutstandingordinary ordinaryshams shares lasaless tmasurytreasury shamsshares (thousand)(thousand) 800BOO000 000 800800 000000 U AverageAverage numbernumber ofofshares shares from bondbondconversion conversion (thousand)(thousand) - AdjustedAdjusted totaltotal averageaverage number of shares forfor calculation of diluted profitprofitpar pershare share (thousand)(thousand) 800800 000000 800800 000000 fl DilutedDiluted earnlngsearnings porper shareshare Qn(in euros)Gums) 0,1340,134 (0,664)(0,664) AtAt31 31 DecemberDecember 20132013 andand 2012,2012, methe Bank had not issued potentiallypotentially dilutive instrumente instrumentsand andtherefore therefore basicbasic j eamingsearnings porper share coincidedcoincided with diluted eamingsearnings per share.sham. NoNo profit/(loss)profiW(loss) from discontinuaddiscontinued operationsoperations U waswas recognized duñngduring 20132013 or2012.or 2012. 4.4. GoodwillGoodwill ofof ffiethe GroupGroup entitiesentities AtAt31 31 DecemberDecember 20132013 andand 2012, methe Bank recorded goodwill ininassociates associates pending Impairmentimpairment inin methe amountamount ofof €€ 38,13738,137 mousandthousand and € 40,04440044 thousand,mousand, respectively.respectively. Thisibis goodwillwas was generatedgenerated basically throughthrough aa compadsoncomparison withwithffie the netnet fairfairvalue value ofofme the assets,assets, liabilitieshabilfties andand contingent liabilitiesliabilWes acquiredacquired byby methe Bank whenwhen itit investedInvested Tiinthe the companiescompanies AutopistasAutopistas deldel Sol,Sol, SA.S.A. andand Hidraha,Hidralia,Gestión Gaston Integral dede Aguas de Andalucia,Andalucla, SA.S.A. (formedy(formerlyAquagesi AquagestAndalucla, Andalucia,S.A.), S.A.),through throughme thecompany companyHidrocartera, Hidrocartera,S.L. S.L.in inme thelatter lattercase. case. At 31 DecemberDecember 2013,2013, thethe goodwillgoodwillis isrecognlzed recognizedas aspart part ofof thethe acquisitionacquisitioncost costof ofthe the targettarget companiescompanies inin thethe consolidatedconsolidated balancebalance sheet itemitem "EquityEquity investmentsinvestments -- Associates’.Associates". TheThe amountamount pending impairment atat 31 DecemberDecember 20132013 derivesderives fromfromme the pmfitsprofitsexpected expectedby byme the Bank’sBank's directoradirectorsfrom fromme thetarget targetcompanies, companies, basedbased onon methe strengmstrength ofof meirtheircustomer customerbase base andand onon ffieirtheir averageaverage income perper customercustomer. AtAt 3131 DecemberDecember 20132013 and 2012, in accordance withwith NoteNote 2.18,2.16, thethe aforementionedaforementioned goodwillgoodwiil waswas impaired inIn anan amount oi€1,907of €1,907 thousandthousand inIn bothboth fiscalfiscalyears. years. U TheThe following table tableshows showsthe the datesdates of initialinitial recognition and and thethe initial groasgross amounftamounts of the goodwillgoodwili Inin associates,associates, as wellwell as cumulativecumulativo impairment loases losses andand the net amountsamounft ofof goodwillat at 3131 DecemberDecember 20132013 andand 2012:2012: It’ ThousandsThousands ofofeuros auras AccumulatedAccumulated loseloss provlsloneprovisions NetNet amountamount InitielInitial InitialInitial registrationregistration U amountamount datedate 20132013 20122012 20132013 20122012 AutopistaAutoplsta deldel Sol,Sol, CESAC.E.S.A. 3483334 833 Sep.Sep. 20052005 (( 77646) 546) (( 6797)6 797) 2718727 187 2828 036036 Hidralla, G.IAA.,alA.A., SA.S.A. (prevlously,(previously,Aquagest Aquagest Andalucia,Andalucia, SA.)S.A.) 2020 46?487 Jun.Jun. 20052005 (( 9517)9 517) (( 86459) 459) 1095010 950 12 008008 5530055 300 (17(17153)153) (15(15 256)256) 3838 137137 4040 044044 1] AsAs thisthis goodwiligoodwillrelates relatesto toadministrative administrativeconcessions concessionsand andlicences licences heldheldby bythe thetarget target companiescompanies for aa certain peñodperiod ofoftime, time,ffie the Bank’sBank's directoradirectorsconsider consider mat,that, barñngbarring omerother evidenceevidence Dfof impairment,impairment,me the recoverablerecoverable valuevalue ofof thethe goodwillrecognized recognizeddecreases decreasesin inproportion proportionto tome thenumber numberof ofyears years remainingremainingto tome theend end ofof ffiethe administrativeadministrativeconcession concession oror licence.licence. ti U 55 11 ______u U U U 1 U B.5. Segment information The GroupGroup isis engagedengaged mainlymainly inin thethe retailretail bankingbanking business.buslness. VirtuallyVirtually allah itsita businessbusiness is conducted in Spain Ç and thethe directorsdirectors considerconsider that customercustomer types areare similarsimilar throughoutthroughout itsita territorialterritorial ayeearea ofof influence.influence. L Consequently,ConsequenUy, inin compliancecomphiance withwith prevailing mguhations,regulations,the the informaboninformationon on the Group'sGmup’s businessbusiness and geographical segmentesegments isIs not deemeddeemed to be relevant.rehevant 9 Set out below are detailsdetalhs of thethe relativerelative significancesignificance of the Unicaja Banco Group'sGroup’s operating segmentesegments stat 31 December 2013 andand 2012,2012, forfor eacheach ofof thethe segmentationsegmentarion types or parameters defined in paragraphs 3232 to 34 U of IFRS'FRS B.8. Sector information¡nfarmation (products(pmducts and services)sewlces) ThemThere follows a breakdownbreakdown of theme UnicajaUnicaja BancoBanco Group'sGroup’s consolidated balancebalancesheet sheetby by sectorsector atat 31 December 2013 andand 2012,2012, includingincluding thethe samesame sectorsector Informationinformation reportedreportad to the Bank of Spain.Spain, At DecemberDecember 31,31, 2013,2013, thethe creditcredit institutionsinsbtutions sectorsector accounts for 99.73% ofof totaltotal consolidatedconsohidated assets and U 99.96% ofof consolidatedconsoildated equity. ToTo misthis end,end, pursuant to to RuleRule 70.270.2 of Bank of Spain Circular 4/2004,4/2004, theifie Itemitem "Credit‘Credit institutions sectorsector" includesincludesme the infurmationinformation onon ffiethe consohidatedconsolidated group of creditcredit institutionsinstitubons defined in Rule 1 of Bank of Spain Circular 4/2004.4/2004. U a) ConsohidatedConsolidated balancebalance sheetsheetat at DecemberDecember 31,31, 20132013 DistributionDlstrlbutlon (thousands«bousands of euros) Insurancelnsurance Other AdjustmentsAdJuslinenta andana Assets Total Sectorbanks banks companiescompanles enflUesentities ellmlnaflonseliminations ti Casi,Cash and balances at central banks 1 913 257 1 913 225 32 - Financial assets heldhehd forfortrading trading 291 771 291 771 - - - U AvallableAvailable for sale financial assets 2 568586 037 2 562 662862 . 4 906 ( 1 531) Loans and receivables 2868628 886 959 2628 913 762 - 71 344 ( 9698 147) HeldHeId tolo maturitymalurlty Investmentslnvestments 4 242 658 4 242 656658 - Hedging derivatives 543 745 543 745 - - - U Non-currentNon-cament asseftassets held for sale 263 918 263 918 - - - InvestmentslnvestmentB 279 759 264 915 - - 14 844 insuranceInsurance contracts linkedllnked to penslonspensions 132 097 132 097 - - - - ReinsuranceRelnsurance assets - - - - Tangible assets 753 691 623 418 . 130 273 - U intangibleIntangible assets 3 689 1 336 - 2 353 Tax assetsassels 662 426 643 838 - 18 588 - Other assets 702 914 734 899 - 5751857 518 ( 89503)89 503) U Total assatsassets 4124292141 242 921 4113224441 132 244 285 014 (174 337) UL I]U. L1 U 56 H Ftu EJ DlstributionDistribution(thousands (thousandsof ofeuros) euros) SectorSector InsuranceInsurance OtherOther AdjustmentsAdjustments P LlabllWesLiabilities asidand EquftyEquity TotalTotal banksbanks companlescompanies entftiesentities asidandellmlnatlons eliminations Li FinanclalFinancialllablillies liabilitiesheld heldfor forlradlng trading 1111 981981 1111 981981 - - - olherother financlalfinancial llabflftiesliabilitiesal atfair fairvalue value throughthrough profilprofitor orlose loss - - FinanclalFinancialllabilftles liabilitiesat atamortlzed amortizedcosI cost 3838542 542300 300 3838456 456344 344 - 217217544 544 (131(131586) 588) ChangesChanges iiiin thethe fairfairvalue valueof ofIhe thehedged hedged U ¡temeitems ¡nInportfollo portfoliohedges hedgesof of¡nterest Interestrete rate riskrisk ------ HedgingHedgingderivatlves derivatives 4408844 088 2525 157157 - 1893118 931 - UabilWesLiabilitiesAssoclated Associatedwfth withnon-curmnt non-current U assetsassets held forforsale sale - .111. InsurancesInsurances ContnctsContracts LiabilitiesLlablllties 57405 740 - 55 740740 ProvlslonsProvisions 345181345 181 344344213 213 - 968988 fi TaxTax LiabllltiesLiabilities 111111516 516 108108490 490 - 30263 026 WelfareWelfareFunda Funds - OtherOther llabilitiesliabilities 9598956 956 103718103 718 - 34213 421 (( 88 183)183) TotalTotalUsbilltles Liabilities 3915976239 159 762 3904990339 049 903 - 243243 890890 (134(134031) 031) U quityEquity 20669412 068 941 20669412 066 941 - 4972749 727 (49727)( 49 727) Valuatlon adjtstements 11 734 11 734 9421 Valuation adJustements 11 734 11 734 - (( 9421)9 421) 9 421 - MlnarttylnterestMinority Interest 44844 484 36663 666 - 818818 - U TotalEqultyTotal Equity 20831592 083 159 20623412 082 341 -- 4112441 124 (40306)( 40 3061. TotalTotal LlabllltlesLiabilitiesand andEqulty Equity 4141242 242921 921 4113241 132244 244 - 285285014 014 (174(174337) 3371 1 MemorandumMemorandumkenia items Contingent exposures Contingent exposures 892892851 851 919919706 706 - (( 26855)26 855) ContingentContingentcommitments commitments 34503293 450 329 34642173 464 217 - (13888)( 13 888) U b)b) ConsolldatedConsolidatedbalance balancesheet sheetat atDecember December 3131, 20122012 DlstrlbutlonDistribution(thousands (thousandsof ofeuros) euros) AdjustmenffiAdjustments SectorSector InsuranceInsurance OtherOther andand U MasisAssets TotalTotal banksbanks companlescompanies antillesentities ellmlnaflonseliminations CashCash andand balancesbalances alat centralcentralbanks banks 518518462 482 518518449 449 - 3333 - 1 FlnanclalFinancialassets assets heidheld forfldingfor trading 124124633 633 124124633 633 - - -- AvallableAvailablefor forsale salefinanclal financialassets assets 27452 745956 958 22743 743004 004 - 77728 728 (( 44774) 774) U LoansandrecelvablesLoans and receivables 2738352327 383 523 2746591227 465 912 - 4272342 723 (125112)(125 112) HeidHeldto tomaturlty maturityinvestments investments 63256 325961 981 66325 325981 981 - HedglngHedgingdedvatlves derivatives 745745061 061 745745061 061 Non-currentNon-currentasceta assets heldheld forforsale sale 293293554 554 293293554 554 - - - lnvestmentsInvestments 293542293 542 326238328 238 - 1265512 655 (( 47351)47 351) InsuranceInsurance contractacontracts llnkedlinkedlo topenslons pensions 119119368 358 119119356 358 - - RelnsuranceReinsuranceasaeta assets ------1 TangIbleTangibleasceta assets 778778 020020 641641 148148 - 136136872 872 - IntangibleIntangibleassets assets 4343 149149 22130 130 - 975975 4040 044044 TaxassetsTax assets 627624627 624 611633811 633 -- 1599115 991 - OtherassetcOther assets 715379715 379 682479682 479 - 102708102 708 (69808)( 69 808) EJ TotalassetsTotal assets 4071426440 714 284 4060158040 601 580 - 319685319 685 (207001)(207 001) U 5757 í.i 12 12 L OlsffibuflonDistribution (thousands(thousands ofof euros)euros) SectorSector InsurancoInsurance OtherOther AdjustmentsAdjustments LlabliltiesLiabilities TotalTotal banksbanks companlescompanies ontltiesentitles andand ellmlnationeeliminations U FinanclalFinancialliabilities liabilitiesheld heldfor fortradingtrading 77 580580 77 580580 - - - otherother finarcialfinancial lIabHWesliabilitiesal atfair fairvalue value lhmughthrough profltprofitor orloss loss - - FinandalFinancialhablillas liabilitiesal atamortizad amortizedcasI cost 3792787837 927 878 3783937 839 319319 - fl8228703 703 (140(140 144)144) ChangosChanges in methe fair valuevalueof oflbs thehedged hedged u ¡lemaitems Irin porlfolioportfoliohedges hedgesof ofInterest interestrata rate dskrisk - - - n HedglngHedgingderivativas derivatives 164164496 496 145145 271271 - 1922519 225 33 LlabhlltiesLiabilitiesAssoclated Associatedwlth withnon-current non-current U assetsheldforsaleassets held for sale - - - - - InsurancesInsurances ContractaContracts LiabilitiesUabIlllIes 65146 514 - - - 66 514514 PmvlsionsProvisions 33S335274 274 334334320 320 - 954954 - TaxUabiUesTax Liabilities 117707117 707 116136116 136 - 15711 571 1. WelfareWelfareFunda Funds - - ‘0 - OlberOther liabilitieshablIllas 123123 711711 128128 528528 - (( 44 817)817) fi TotalTotal LiabhiltIesLiabilities 3868338 683 160160 3838 571571 154154 - 250250453 453 (138(138447) 447) U EqultyEquity 20475962 047 596 20475962 047 596 - 7892878 928 (78928)( 78 928) ValuationValuationadjuslemenls adJustements (( 19 188) (19188)( 19188) - (( 9696)9 696) 96969 696 MlnadtyMinoritylnterest interest 22 696696 20182 018 - 678678 12 TotalTotal EqultyEquity 20312 031 104104 20304262 030 426 - 6923289 232 (68554)(88 554) TotalTotal LlablIltIesLiabilities andand EqultyEquity 4071426440 714 264 4060140 601 580580 - 319319885 685 (207(207 001)001) MenorandumMemorandum Itemsitems - ContingentContingentexpasures exposures 11031 103 814814 11431 143 941941 - (( 40 127) ContingeniContingent commllmentscommitments 33 333333 850850 33482703 348 270 - - (14420)( 14 420) fl U GeographlcGeographic amaarea information TheThe UnicajaUnicaja BancoBanco GroupGroupoperates operates inin Spain; customer typestypes are similarsimilar throughout ibathe countiy.country. TheThe Group t thereforetherefore considersconsiders aa single geographic segment forfor itsita operations,operations, thethe informationinformation breakdown requiredrequired byby U paragmphparagraph 33 of ¡FRSIFRS 88 notnot beingbeing applicabhe.applicable. NoteNote 2626 toto methe consolidated accountsaccounft providesprovides informationInformation onon risk concentration by activity and and geographicgeographic areaarea at 31 December 20132013 andand 2012.2012. MainMain customercustomer informalioninformation TheThe UnicajaUnicaJaBanco BancoGroup Group¡a isengaged engagedmalnly mainlyIn inffie theretaN retailbankhng bankingbushness businessand andhas has nono customerscustomers accounting ¡ forfor ovarover 10% of ffiethe Group'sGroup’s ordinaryordinary income; ffiethe Group thusffius considersconsiders thatffiat theibe informationinformation breakdownbreakdown requiredrequired byby paragraphparagraph 34 of ¡FRSIFRS 88 lais notnot appiicable.applicable. u çi U 5858 O EJ .0 6.S. RemuneratlonRemunerationof of thethe BoardBoard ofof DirectoreDirectors andand SenlorSenior ManagementManagement 6.16.1 BoardBoard ofof Directors’Directors' remuneraDariremuneration TheThe following table tableprovides providesa abreakdown breakdownof ofremuneration remunerationacerued accrued toto thethe members of mathe Board of Directors ofof methe Parent Entity, Unicaja Banco,Banco, S.A.U., excluslvelyexclusivelyin intheir theircapacfty capacityas as BoardBoard directoradirectors dudngduringme the peñodsperiods 20132013 and 2012, consistingconsisUng of per diems and fixedfixed remuneration relating solely toto thelrtheir rolesroles asas non-execuüvenon-executive ¡ BoardBoard directors: U TbousandsThousands ofof eurosauras 20132013 20122012 ArcasArcas Cubero,Cubero, JavIerJavier 3232 3939 U AtenciaAtencia Robledo, Manuel 30 2828 AzuagaAzuaga Moreno, Manuel 3030 2828 BusdnduyBustinduy Barrero,Barrer°, Maria LuisaLuisa -- 27 1 CaseroCasero Dominguez, JuanJuan RamónRamon 3535 4141 CidCidJiménez, Jimenez, JoséJose Luis 3232 4040 U Dell’Dell' OlmoOlmo Garcia,Garcia, Ildefonsolidefonso M. 3232 4040 FernándezFernandez Céspedes,Cespedes, Pedro 4141 4648 FraileFraileCantón, Canton,Juan Juan 8181 7777 HerreraHerrera Núñez,Nunez, FranciscoFrancisco 3131 3939 LópezLopez López,Lopez, Antonio 7878 7676 MedelMedel Cámara,Camara, Braulio 3434 2929 MolinaMolinaMorales, Morales, AgLmtinAgustin 6767 5959 TorreTorre Colmenero,Colmenero,José Jose MM' dede la 5050 4242 U ValleValle Sánchez,Sanchez, VictorioVictorIa 8888 8484 6.26.2 SenlorSenior ManagementManagement remuneratianremuneration ForFor methe purposespurposes of preDañngpreparing thesethese consolidated annualannual accounts,accounts, seniorsenior managementmanagement ¡5is consideradconsidered toto bebe L mademade up of fourteen peoplepeople (twelve people peoplein in2012), 2012),who whohas has descñbeddescribed mesethese effects asas key personnel, inciudingincludingthreo threeExecutive ExecutiveDirectora. Directors.The Thecompensation compensationreceived receivedby byme themembers members ofofthis thisgroup group ininthe the yearsyears 41 20132013 and 2012 amauntedamounted to € 35323,532 thousand and € 3,0683068 thousand, respectively.respectively. The obligations assumedassumed basedbased on thesethese guidelinesguidelines inin termstemis ofof post-employmentpost-employment benefitsbenefits derivingdeñving exClusivelyexclusivelyfrom fromtheir theirstatus status asas U empioyeesemployees oror bankbank executivesexecutives totaledtotaledto to€409 € 409 thousandthousand in 2013,2013, having beenbeen charged €€ 309 thousand Inin 2012,2012, amounts covered entirely byby thethe reievantrelevant funds.funds. 0 6.36.3 OmerOther transactionstransactions performed wlthwith BoardBoard DimctorsDirectorsand and SenlorSenior Management NoteNote 4444 onon ralatedrelated partesparties provides the asset andand liabilityliabiIlty balances of transactions effected with methe Group’sGroup's BoardBoard DirectorsDirectorsand and seniorsenior managementmanagement at 31 December 2013 andand 2012,2012, Includinglncluding a breakdown of income 1 andand expenses recognizedrecognized ¡nin the 20132013 andand 20122012 consolidatedconsolidated income¡ncome statementsstatements Inin respect of such Li transactions,transactions, excludlngexcluding methe amountsamounts referredreferred toto ¡nin NotesNotes 6.16.1 andand 6.2.6.2. 6.46.4 Post-empioymentPost-employmentbaneÑe benefitsof offormer formermembers membersof ofthe the Group’sGroup's BoardBoard ofof DirectorsDirectors andand SeniorSenior ManagementManagement TheThe consolidated income statementsstatements for 2013 and 2012 contain no charges forfor pension andand similarsimilar obligationsobllgatians relatingrelatingto toformer formermembers membersof ofthe theGroup’s Group'sBoard Boardand andsenior seniormanagement, management, asas such commitments were entlrelyentirely coveredcovered ¡nin previousprevious yearsyears byby insuranceinsurance policies. o U. 5959 1 •? u O E L U U 7.7. CashCash andand depositsdeposits atat centralcentral banksbanks AnAn analysisanalysis ofofIba thebalances balances in Ibisthisbalance balance sheetsheet caption at 31 December 2013 and 2012 is as follows:hilows: ¡ TbousandsThousands ofof euroseuros 20132013 20122012 CashCash 211754211 754 220487220 487 DeposltsDeposits stat Bank ofof SpainSpain 11 701701 488488 297297 947947 MeasurementMeasurement adjusünentsadjustments - AconjedAccrued intemstinterest 17 4848 19132571 913 257 5184S2518 482 TheThe interest accwedaccrued dudngduringthe theyears years 20132013and and 20122012 forforIbese these depositsdeposits havehave beenbeen of €926€926 thousandthousand andand €1293€1,293 thousand,thousand, respectively,respedllvely, and are IncludedIncluded inIn "Interest“lnterest and similarsimilar income”income" inin thethe consolidated Income slaternentstatement (Note 31).31). 8.8. FinanclaiFinancial assetsassets heidheld forfor fldlngtrading 8.18.1 BreakdownBreakdownof ofthe thebalance balanceand andmaximum maximumCredit creditrisk risk— debtordebtor balancesbalances Uis TheThe followingfollowingtable tablecontalns containsa abreakdown breakdownof ofIbe thefinancial financialassets assets indudedincludedin inmis thiscategory categoryst at 3131 December 20132013 and 2012, classified by type of counterparty and by type of instrument: TboussndsThousands ofof euroseuros U 20132013 20122012 ByBycounterparty counterparty typetype -- CreditCredit insfltutlonsinstitutions 11521 152 8585 999999 Resident,Resident, pubilcpublic admlnlstrationsadministrations 258258 451451 77 127 U Non-resident.Non-resident, puNicpublic admIrsfltlonsadministrations 2424 676676 2626 662662 Resident,Resident, otherother sectorssectors 77 492492 44 845845 .fl 291771291 771 124633124 633 U ByBy InstmmontInstrument typotype -- UstedListedshams shares 64288 428 57545 754 UstedListedbonds bondsand anddebentures debentures 277277 106 118 787767 1 DerivativosDerivativestraded tradedon onorganised organised marketsmarkets 4141 11 090090 U DerivativosDerivativesnottraded not tradedon onorganised organised marketsmarkets 61966 198 11 022022 291291 771771 124124 633633 U TheThe carryingcarryingamounft amounts shownshown ininthe theaboye above tabletable representrepresent Ibethe credit tiskriskexposure exposure borneborne bybythe the GroupGroupal at eacheach yearyear end with respectrespect to the financial instmmentsinstruments indícated.indicated. [1 TheThe lnterestInterest accrued duñngduring methe years 20122012 andand 20112011 forfor debtdebt Instrumentslnstmments classifiedclassified Inin thethe tradingtradlng portfolioportfollo havehave beenbeen of €3,376€3376 thousandmousarid and €439€439 thousand,thousand, respectively,respectively, and areare includedincluded inIn "interest“lnterest and similar income”income" ininIbe theproflt profitand andioss lossaccount accountstaternent statement (Note(Note 31).31). TheThe average effective interest reterate on debt Instrumentsinstmments classifiedclasslfled Inin this portfolio at at31 31 DecemberDecember 20132013 waswas U 2.46%2.46% (3.65%(3.65% stat 3131 DecemberDecember 2012).2012). 1.• L E 60 e-’ U U Ej TheThe negatvenegative flowflow includedincluded inin thethe 2013 consdildatedconsolidated cashcash flowflow statementstatement inIn respedrespect of balances receivable fromfrom financialfinancial asseftassets andand llabilitiesliabilities heldheld fortradlngfor trading amountedamounted toto€ € 167138167,138 mousandthousand (negative(negative flowflowof€ of € 72,12072,120 thousandthousand inin 2012).2012). U 8.28.2 BreakdownBreakdown ofofthe the balancebalance- -creditor creditorbalances balances TheThe llowingfollowing tabietable containscontains aa breakdownbreakdown ofof methe financialfinancial liabilwesliabilities includedincludedin in misthis categorycategory atat 3131 DecemberDecember 20132013 andand2012, 2012,classifted classifiedby bytype typeof ofcounterparty counterpartyand andby bytype typeof ofinsfrument instrument 13. flousandsThousandsof ofeuros auras 20132013 20122012 ¿ ByBycounterpafly counterpartytype type- - U CreditCredit Institutionainstitutions 49784 978 8080 OthorOther resideMresidentsectors sectors 70057 005 75007 500 1196111 981 75807 580 U ByBy lnstrumentinstrument typetype- - DerIvativosDerivatives tradedtraded onon organisedorganised marketsmarkets - 736738 DerIvativosDerivatives notnottraded traded ononorganised organised marketsmarkets 1111981 981 66842 842 LIu 1198111 981 75807 580 TheThe positivepositive 110wflow includedincluded inin methe 20132013 consoildatedconsolidated cashcash flawflow statementstatement inIn respectrespect ofof balancesbalances payable fmmfrom financialfinancial assetsassets andand llabilitiesliabilities heldheld rfor tradingtrading amauntedamounted toto €€ 44014,401 thousandthousand (poswve(positive flowflow ofof €E 40414,041 thousandthousand U inin 2012).2012). 8.38.3 DerivativoDerivative financialfinancial Instrumentsinstruments heidheld fortradingfor trading L SetSet outout belowbelow isis aa breakdownbreakdownby bytypo typeof ofderivatiVe derivativeof ofme the fairfair valuevalue ofof methe Group’sGroup's derIvativosderivatives heldheld forfor tradingtrading andand theirtheir notional valuevalue (on(on methe basis of whichWNCh futurefutura paymentspayments and collections areare calculated) st at 3131 DecemberDecember 20132013 andand 2012:2012: Thou.andsThousandsof ofeuros euros U 2013 2012 2013 2012 DebtçDebtorbalance. balances CrodltarCreditorbalance. balances DebtarDebtor balance.balances —CreditorCreditorbalance. balances FairFair NollonalNotional FaIrFair Noüon.lNotional FaIrFair NoUonalNotional FuiFair Nofion.lNotional ValueValue ValueValue ValuoValue ValueValue ValuoValue ValueValue ValuoValue ValuoValue U 9702 Un-maturedUn-matured currancycurrency purchoae&saloe:purchasesfsales: 396396 69876 987 391391 69876 987 310310 97029 702 305306 9 702 CurrenciesCurrenciespurchued purchasedagainst againsteuro euro - - 391391 89878 987 306308 97029 702 CurrenciesCurrenciessoid soldagainst againsteuro euro 396396 89878 987 - -- 310310 97029 702 EqultyEquityand andlnternt interestrato ratefuturos futures - - - 12441 244 16809;168 091 PurchasadPurchased _ - - - SoidSold - - 11244 244 - - 158158091 091 EqultyEquityopilan.: options: 4141 1096810 968 62716 271 11782 762492 492 12031 203 4549246 492 66639 639 11850 060091 091 PuPurchasedrch asad 4141 1098810 988 - 12031 203 4549245 492 IssuedIssued -- - 62718 271 17624921 782 492 - - 88639 839 11850 85009 091 0111crOtherequfty equityflansadilon. transactions 199199 8749087 490 287287 190190676 675 635635 9692496 924 EquityEquityswaps swaps 6888 50005 000 - - 107107 99938 938 ForwsrdForward flnsactionstransactions 131131 6249092 490 267287 190190675 675 528528 8888985 986 CurrencyCurrency optlons:options: - - PurchasedPurchased lasuedIssued OlberOtherInternet Interest rataratefransactlon. transactions 66016601 5468854 588 50325 032 550456 040 699599 113845113 845 u lnWrntInterestrata rateSwaps swaps 55601 801 5454588 588 55032 032 5555040 040 599599 113845113 845 OffierOther productoproducts u 52376 237 160033160 033 1196111 981 20164382 016 438 21122 112 169039189 039 75807 680 21148082 114 808 E 6161 11 U U rl U The notional amountamount ofof methe contractscontracts concludedconcludeddoes does notnot representrepresent methe actual riskñsk assumed by theme Group,Group, since theifie netnet positionposition inin thesemese financialfinancial Instrumentsinstwments Isis obtainedobtalned byby offsettingofftetting and/orandlor combiningcomblning ffiethe relevantreievant - amounts. L Note 11 provides methe methods appliedapplled by the GroupGroup toto measuremeasure theme financialfinandal instrumentsinstruments classifiedciassified in thisff15 category. 9. Avaliable-for-saleAvailable-for-sale financlalfinancialassets assets 9.1 Breakdown ofof ffethe balancebalance and maximummaximum credit risk The foiiowingfollowingtabla tablecontains containsa a breakdownbreakdownof ofthe the financialfinancialassets assets indudedincluded inin thisthis categorycategory atat 31 December u 2013 and 2012, classifiedclasslfied by type of counterparty and by type ofof instrumentinstrument Thousands of euros 2013 2012 U By counterpaftycounterparty type Credit institutionsnstltutions 125 802 200 310319 Resldent,Resident, publicpublio administrallonsadministrations 1 094 334 11311 131 399 Non-residentNon-resident, publiopublic sdminlsfralionsadministrations 321 778 324 105 Resident, other sectomsectors 958 721 791 357 Non-residen,Non-resident, othersectorsother sectors 6678866 788 282 150 25674232 567 423 27293302 729 330 (Impairmeni(Impairment iosses)losses) (")(1 ( 66) ( 131) DiherOther measurement adjustments ( 1 320) 16 759 25660372 588 037 27459582 745 958 SyBy instrumentInstrument type OebtDebt securives:securities: 1 951 956 1 924 259 Spanish govemmentgovernment secuñtiessecurities 1 023 782 1 088 601 Treasury billsbilis - 259 536 GovenwnentGovernment bondsbonds andand debenturesdebentures 1 023 782 829 065 Other SpsnishSpanish publicpubflc administrationadmlnistration 70 552 42 798 U Foreign governmentgovernment secudtiessecurities 321 778 324 105 Issuedissued by flnanciaifinancial instltutionsinstitutions 9021790 217 198 737 Other fixed-income secudtiessecurities 447 013 253 390 O (lmpalrment(Impairment iosses)losses) (•)() ( 66) ( 131) [1 Other measurementmeasurement adjustments ( 1 320) 1618 759 Other equftyequity instwments:instruments: 614 081 821 699 Shares inin listedhsted SpanlshSpanish compariescompanies 343 688 366 490 Shares inIn unlisted SpanlshSpanish companlescompanies 161 813 152 552 Shams In listad forelgn companles 57 548 U Shares In listed foreign companies 57 768 244 548 Shares inin unlisted foreign companlescompanies 19 19 Shares inin investmentlnvestment ftjndsfunds 50 793 58 090 2 666566 037 2 745 958 flN{•)At 31 DecemberD.oemb.r 2013 asidand 2012 flúthis amoiz,tamount relatasrelates loto iinpelmmtilimpairment toasestosses rEcoç,flndrecognized loto cover w,dIIcredit risk.risk. ¡ The canyingcarrying amountamount shownshown ininme the tabletable aboyeabove represents the levelievel of credit ñskrisk exposureexposure of thethe Group at ffethe U end of those yearsyen inin relationreiation toto financialfinandal instrumentsInstruments included. The total in ffethe tabletabie aboveaboye asas "Other“Other equityequity instruments"instruments” inciudesincludesme the DecemberDecember 31,31, 20132013 aa balance of u €251719€251,719 thousand correspondingcorrespondlng to impairment losseslosses of ffiethe elementseiements includedincluded in thlsthis section (€264,398(€264398 U thousand at 3131 DecemberDecember 2012),2012), havinghaving recordedrecorded overovar exercise a netnet provisionprovision ofof thisthis correction,correction, notnot lncludlngIncludingother othermovements movementsor or flnsfers,transfers, amountingamountingto to €8.037€8,037 thousand,thousand, coNectadcollected underunder ffiethe headingheading “lmpairrnent"impairmentlosses losses onon financlalfinancialassets assets (net) “iii"in ffethe consolidated incomeincome statementstatement (€109.232(€109,232 mousandthousand at December3l,December 31, 2012). oU 62 [1 u a r u O Fi U WrthWith respectrespect toto debt securitiessecudUes classifiedclassifled as financialfinancial asseftassets availableavailable forbr sale,sale, netnet provisionpmvision ofof ImpairmentImpainnent Iosseslosses inin 2013 amounted to €521 thousand,thousand, alsoalso collectedcollected underunder thethe headingheading ofof "losses“loases impairmentimpairment (net)(net) "in“in thethe consolidated incomeincome statementstatement (net recovery ofof impalrmentimpairmentlosses losses€104 €104thousand thousand atat December 31,31, 2012).2012). AmongAmong thethe most significantslgniflcant movementsmovements in the "Available-for-sale“Available-for-sale financlal financialassets” assets" portfolloportfolioIn in2013 2013are are thethe followingfollowingGroup Grouptransactions: transactions: - SaleSale of 9,049,769 aliaresshares inin Sacyr Vallehermoso brfor €€ 19,950 ffiousand,thousand, generatinggeneraUng a profitproflt ofof €€ 4,9584,958 thousand. U- - AcquisitionAcquisitionof of2,328,740 2,328,740shares shares inin BankiaBanklafor€ for €3,150 3,150thousand thousand (dehved(derived fromfroma abond bond exchange).exchange). -- AcqulsitionAcquisitionof of3,477,551 3,477,551shares sharesin in CatalunyaCatalunyaBanc Bancfor for€ € 6,300 thousand (derived(dedved fmmfrom aa bondbond fl exchange).exchange). U - AcquisiUonAcquisitioncfi of 1,751,055,751 055 shares shares lnIn NCGNCGBanco Bancofor for€2.700 E 2,700thousand thousand (derived(derivedfrom froma abond bondexchange). exchange). - AcquisillonAcquisitionof of6,750,000 6,750,000aliares shares inin BancoBanco CISSCEISS forfor€ E6,750 6,750mousand thousand (deñved(derivedfrom froma abond bondexchange). exchange). - AcqulsitionAcquisitionof of715,990 715,990shares shares inin BancoBanco PopularPopular EspañolEspatiol forfor€ € 3,0003,000 ffiousandthousand (derived(dehved fromfrom aa bond exchange).exchange). - AcquisihonAcquisitionof of119,523 119,523shares shares ininCartera Cartera PerseldasPerseldas brfor €E 2,8932,893 thousand.thousand. U - SaleSale of 3,795,2473,796,247 shares inti Metrovacesa forbr €E 8,4918,491 thousand,thousand, generatlnggenerating a profit ofof €€ 2,7962,796 thousand.thousand. - SaleSale of 29,282 aliaresshares InIn Cea SICAVSICAV forfor €E 181,000181,000thousand, thousand, generatinggenerating a profitproflt ofof €2,51E 2,5133 thousand. thousand. fi - SaleSale of 4,005,0624,005,062 sharesshares inin QMC brfor€ E3,002 3,002thousand, thousand,generating generating aa profitprofitof of€727 f 727thousand. thousand. - Sale of 1,273,076 sharesshares inin Banco Popular EspanolEspañol forbr € 5,296 thousand, generatinggenerallng a profitpmfit ofof €829€ 829 thousand.thousand. -- SalaSale of 1457,3571,457,357 aliaresshares Inin Duro FelguereFelguera for €E7,287 7,287 mousand,thousand, generaUnggenerating a profltprofit of€of €651 651 mousand.thousand. - Sale of 1,903,2301,903,230 aliaresshares inti CIECIE AutomotiveAutomoUve forfor€ € 5,2765,276 mousand,thousand, ganeratlnggenerating aa profitproflt ofof €€ 1,209 U thousand. AmongAmong thethe most significantslgnificant movementamovements in ffiethe "Available-for-sale“Available-for-sale financial financialassets” assets" portfolloportfolioin in2012 2012are are thethe followingfollowingGroup Grouptransactions: transactions: U -- AcquisibonAcquisitionof of370,074 370,074 sharesshares Inin Campofrío,Cam pofrfo,for€2,625 for €2,625thousand. thousand. - AcquisWonAcquisitionof of80,000 80,000shares shares inti Metro AG,AG,br for€2012 €2,012thousand. thousand. - AcquisiUonAcquisitionof of93,000 93,000shams shares Inin RWE,RWE,for for€2895 €2,895thousand. thousand. - DisposalDisposal ofof 1,935,2801,935,280shares shares ¡tiin Metrovacesa, brfor €4273€4,273 thousand, gayegave riseñse toto aa profitproflt ofof €1€1371 ,371 U thousand.thousand. - DisposalDisposal ofof 34,00034,000 sharesshares in BMW for for€2,1 €2,16868 thousand, thousand,gaye gave risarise toto aa profit ofof€265 €265thousand. thousand. - DisposalDisposal ofof 145,000145,000 aliaresshares in ENI Spa,Spa, brfor€2503 €2,503Uiousand, thousand, gayegave risarise to a profitproflt ofof€238 €238ffiousand. thousand. - DisposalDisposal ofof 257,310257,310 sharesshares In PrivándalusPrivandalus Inversioneslnversiones II, SICAV,SICAV,br for€3004 €3,004thousand, thousand,gaye gave riserise toto aa U profltprofitof of€222 €222thousand. thousand. - DisposalDisposal ofof 375000375,000aliares shares in BancoBanco Popular, brfor€687 €687 thousand,thousand, whichwhichhas has resultedresulted inin aa loss of €254€254 tliausand.thousand. - DisposalDisposalof of 178,180178,180shares shares in Vivendi,Vivendi,br for€2713 €2,713thousand, thousand,which whichhas hasresulted resultedin ina a loasloss of €243 thousand.thousand. - DisposalDisposal ofof 105,250105,250 sharesshares in RWE, brfor€3351 €3,351thousand, thousand, gayegave rise to a profitproht ofof€173 €173thousand. thousand. (1 TheseThese amountaamounts aream registeredregistered underunder thethe "Gains“Gama on financialfinandal assetsassets (net)"(net)” ¡tiin thethe consolidated atat December 31, 20132013 income statement, accounting brfor equityequity instmmentsinstruments ciassifledclassifiedas as financialfinancialasseta assets available forfor salesale (Note(Note 37).37) . (7 TheThe interest accrued duñngduring tliethe years 2013 and 20122012 forbr debtdebt instrumentsinstruments classified asas financialfinanclal assetsassets U availableavailablebr forsale sale hayahave been ofof €100,770€100,770 thousandthousand andand €97,021€97.021 thousand,thousand, respectively,respectively, are includedincluded In¡ti “lnterest"Interest andand yields assimilatadassimilated “in"Inthe theconsolidated consolidated incomeincomestatement statement (Note(Note 31).31). TheThe average effective interest reterate on debt instrumentsinsfruments classifieddassified in ff15this portfolio at at31 31 DecemberDecember 20132013 waswas U 2,82%2.82% (4.03% at3lat 31 December 2012).2012). u 6363 [1 ______u o U Li E TheThe positivapositive flowflow Includedincluded Inin frsthe statement of consolidated cashcash flowsflows brfor hethe year 2013 on financlalfinancial assets available brfor sale In thisfis captioncaption amountsamaunts € 179,921179921 thousand (negaüve(negative flowflow ofof € 3,436,2583,436268 housandthousand in 2012). [1 U 9.2 Credit iiskrisk coverage Set out below are movements during 2013 and 2012 in impairmentlmpairment losaeslosses recorded toto cover credit risk and 7, cumulativecumulative lmpalrmentimpairmentlosses lossesrecognized recognizedat atfe thebeglnnlng beginningand andend endof of2013 2013 andand 20122012 inin respect ofof debt U lnstrumentsInstruments classified as available-for-sale financialfinancial assets: ThousandsThousands of euros U Balance stat 31 December 20112011 1 005 Net appropdatlonsappropriations forfor lbsthe yearyear Pdor-yearPrior-year provlslonsprovisions avallableavailable (104)( 104) Other (( no)770) O Balance st 31 December 2012 131 Balance at 31 December 2012 131 1’ Net appropriations for hethe yearyear 561 Pdor-yearPrior-year pmvisionsprovisions avallableavailable ( 40) u ornarOther 1( 586)586) Balance stat 31 December 2013 66 9.3 Measurement adjustments toto available-for-sale financialfinancial assetsassets Set out below Isis the reconciNationreconciliation of openlngopening and closing balances of measurement adjustments toto availableavailable- 11 for-salefor-sale financialfinancial assets Inin equityequity on fethe consolidated balance sheetssheets brfor 2013 and 2012, agalnstagainst fethe amounts u recognized inin fethe consolidated IncomeIncome statementstatement asas gainslØosses)gains/(losses) onon finandalfinancial assetsassets andand liabilitiesliabilities andand as impairmentimpairment losseslosses onon financialfinancial assets,assets, andand againstagainst thethe amounts recognizedrecognized inin fethe consolidated statementstatement ofof recognizedrecognized incomeIncome andand expenses.expenses. U TbousandsThousands of eurosGums 20132013 20122012 Value adjustnientsadjustments toto sssetsassets heidheld forfor sale stat JanusryJanuary 1 2240522 405 (( 4343 646)646) fl TransferTransfer toto rnularesults (101(101 825)825) (( 23160)23 160) Portion allocated toto thethe consolidatedconsolidated income statementstatement (144018)(144 018) 4372543 725 U., Change Inin klrfair valuevalue ofof methe securillessecurities saRIsold inin Ihethe yearyear fromfrom 1 JanuaryJanuary Dror fronfrom lbsthe datedate ofof pumhasepurchase toto datedate ofof salesale 4219342 193 (66865)( 68 885) Other changes lnIn falrvaluefair value 123 652 117 519519 Income taxtax (( 86 548)5481 (( 2628 306)308) ‘3 Y!!dFisPn!nt!Value adjustments toassetshoidforsaleatDecernber3lto assets held ,for sale at December 31 3768437 684 2240522 405 o u 64 rl LiU ÍD -d U SetSet out below isIs a breakdown of methe amount taken to theme consolidatedconsolidated income statement during 20132013 and 2012:2012: ThousandsThousands of suroseuros U 20132013 20122012 ResultResult ofof financlalfinancialtransactlons transactions (Note 37)37) (141(141 595)595) (( 27 114) lmpalrmentImpairment ofofavallable availableLar forsale sale registeredregistered stat faIrfair valuevalue (( 22 423)423) 7070 839839 (144018)(144 018) 43725X26 9.49.4 Held-to-maturityHeld-to-maturity investmentinvestment portfolioportfollo U AtAt 3131 DecemberDecember of 2013 and 2012 thethe headingheading "Held-to-maturity“Held-to-maturity investment portfolio"portfolio’ mainlymainlyrecords records SpanishSpanish publicpublicdebt debtand and guaranteedguaranteed debt securities issued byby creditcredit institutions.insUtutions, As a result of the recent evolutionevolutlon of debtdebt markets, as well as the Group'sGroup’s intentionintenbon and financialfinancial capacity foto maintain thosethose investmentsInvestments to maturity,matuhty, itit decideddecided toto modify itsits invesftnentinvestment skategystrategy dassifyíngclassifying assets thatIhat werewere initiallyInitially classifieddassified underunder "Available-for-“Available-for L salesale financial assets”assets" to that heading (Note 30.5).30.5). AsAs aa resultresu)t of methe recent evolutionevolution of debt markets, as wellwel) as theffie Bank'sBank’s intentionIntenVon andand financialfinancial capacity to Fi maintainmaintain mosethose investments toto matuñty,maturity, itit decideddecided toto modify its its investmentinvestment strategystrategy classi’ingclassifyingassete assets thatthat U werewere Initiallylnitially classified classifiedunder under “Avallable-for-sale"Available-for-salefinancial financialassets” assets"to tothat that heading.heading. ‘rileThe flrstfirst reclasslflcationreclassification tooktook placeplace Qnon 31 March 20112011 and involved aa total ofof €1,107496€1,107,496 thousand.thousand. Subsequenfiy,Subsequently, Qnon 1 April 20128 2012 a newnew reclasslficalionreclassificationtotalllng totalling€ €5290452 5,290,452thousand thousand waswas carriedcarried out (Note(Note 2.2.4).2.2.4). BelowBelowis Isa a bmakdownbreakdownof ofthe the financialfinancialassets assets included In in misthis categoiycategoryat at December 31,31, 20132013 and 2012, — dassifledclassified byby typetype ofof counterpartycounterparty andand type of insfrument:instrument: (1 ThousandsThousands ofof DUrOSeuros U 20132013 20122012 By counterpartycounterparty typetype CreditCredit lnstituUonsinstitutions 727727 906906 986986 258258 [ Resldent,Resident, pub&public admlnislmllonsadministrations 30273 027 150 44 802802 483483 Resident,Resident, othersectorsother sectors 461461 250250 507507 123 Non-resident.Non-resident,othersectors other sectors 2635226 352 3011730 117 [1 42426584 242 658 63259816 326 981 ByBy InstrumentInstrument typetype -- DebtDebt securitles:securities: 22 750750 070070 44 341341 271271 SpanlshSpanish govemmentgovernment secuñtlessecurities -- 9598 710710 4 TmasuryTreasury bilIsbills 22 750750 070070 44 242242 561551 U CtherOther SpanlshSpanish public adminlstrationadministration 277277 080080 461461 212212 ForeignForeign gavemmentgovernment securifiessecurities -- - lssuedissued by finfinancialanclal lnstltutionsInstitutions 727727 906906 988986 258258 fl OllerOther fixed-incomefixed-incomesecudties securities 467487 602602 537537 240240 U 44 242242 658658 66 325325 981981 fl ‘rileThe canylngcarrying amountamountshown shownIn inme thetable table aboyeabove mpresentsrepresents methe levelleve) of credit iiskrisk exposureexposure toto Ibathe BankBank stat thethe endend of ifiosethose years inin relationrelsüon to financialfinanclal instrumentsinstruments Included therein.therein. lnterestInterest accruedaccrued inin 20132013 andand 20122012 on mesethese securitiessecuñües totaled €237,663 Ibousandthousand and €165,398€165396 mousand,thousand, fl respectivelyrespectivelyand and isis included underunder the headingheading "Interest“lnterest andand similarsimilar charges"charges” inln thethe accompanyingaccompanying U consolidatedconsolidated incomeincome statementstatement (Note 31).31). TheThe effectiveeffective averageaverage interest rate of the debt instrumentslnstruments classifiedclassifled in this portfolloportfolioat at31 31 DecemberDecember 20132013 andand fl 20122012 stoodstood atat 3,77% and 3.66%,3.86%, respectlvely.respectively. U 6565 F 1 U L U InIn2013 2013 aa part of tethe held-to-maturityheld-to-maturity debt debtsecuñties, securities,at ata a bockbook costcost ofof €€ 1,261,3661,261366 thousand,thousand, werewere sold, generatinggenerating aa gaingain ofof€ 93,04493,044 thousandthousand forfor thete GroupGmup thatthat isla recognizedrecognized inin "Gains/(losses)‘Gains/(l ssaa) enon financialfinancialasseft assets andand liabilitiesliabilities- -Securities Securitiesheid heldto tomatuñty” maturity"in Inthe theconsohdated consolidatedincome incomestatement statement (Note(Note 37).37). TheThe mainmainaspects aspects cfof thethe transacUontransaction areare descñbeddescribed below: oo TheThe debtdebt secuhtiessecuritiessold soldhaya havea aface face valuevalueof of€ €1,266,0001266,000 thousandthousand andand aa selling pite priceof of€ €1,354,3791354379 thousand.thousand. oo TheThe transactiontransaction waswas completedcompletedas as partpart of thethe acqulsitionacquisitionof ofBanco Bancode deCaja Caja EspañaEspana dede Inversiones,lnverslones, SalamancaSalamanca yy Soria,Soria, SA.S.A. (Banco(BancoCEISS) CEISS)described describedin inNote Note1.2, 1.2,based baseden onte the efcteffectof ofa a businessbusiness combinationcombinationwith withan anenüty entityhaving havinga asimilar similarsize sizete toUnicaja UnicajaBanco Bancoand and ininorder orderte to maintainmaintainthe the entity’sentity's [1 riskriskpositions positionsin ininterest interestratas ratesand andlesna. loans. o• ThisThis businessbusiness combinaUonscombinationsrelates relates teto aa process which,which, due tote itsita specificspeciftc structure,structure, isla formalizedformalized throughthrough thethe CNMVsCNMV'spublicaUon publicationof ofthe therelated relatedterms termsof ofexchange. exchange.The Theterms terms werewere reviewedreviewed byby thethe CNMVCNMVprior priorto topublishing publishingte thesecurities securitiesprospectus prospectus onon 26 NovemberNovember 2013, inin compliancecompliance with U applicableapplicableleglslaUon. legislation.In Inaccordance accordancewith withte theprospectus, prospectus,a anumber numberof ofaspects aspects areare determinaddetermined thatthat causecause the process to bebe beyondbeyond thethe Bank'sBank’s control,control, asas regardsregards thete achievementachlevement ofof minimumminimum ofroffer n acceptanceacceptance rates. Li oo OnceOnce tethe prospectusprospectus waswas published, tethe initialinitialdeadlines deadlineshad hadbeen been determineddeterminedand and tethe BankBank waswas ableable toto analyse tethe business combinationcombinaUon and and itaits consequencesconsequences andand lmpadsimpacts brfor tethe purposespurposes of çi recognitionrecognitionIn inthe the2013 2013consolidated consolidatedannual annualaccounts. accounts. U oo Finally,Finally,for forreasons reasonsnot notattñbutable attributableto tothe theBank, Bank,and andsolely solelyte toachieve achievea a higherhigherrate rate ofof acceptanceacceptance andand more ftvourablefavourable circumstancescircumstances Ininthe the BancoBanco CEISSCEISS restructuñngrestructuringprocess, process,the the deadllnesdeadlines werewere extendedextended byby meanemeans of Relevant Facts submittedsubmitted teto thete CNMV,CNMV, pendingpendingfinal finalapproval approvalat atte the issueissue datedate ofof thesethese consolidatedconsolidated annualannual accounts.accounts. L oo TireThe salesale waswas completed as a one-off event and isla therefore non-recurring; ititwas waseffected effectedter forreasons reasons beyondbeyond UnicajaUnicajaBancos Banco'scontrol controland andcould couldnot notterefore thereforebe be reasonablyreasonablyforeseen foreseen byby tethe Bank'sBank’s directora.directors. Li(1 ForFor thethe reasons described,described, the Bank'sBank’s directorsdirectora considerconsider that thethe transactiontransacton fulfilsfulflls tethe requirements of paragraphparagraph GA22GA22 ofoflAS IAS39, 39,such suchthat thatte the restrest ofofthe the held-to-matuñtyheld-to-maturitydebt debtsecurities securitiesneed need notnot bebe reclasaifledreclassified toto thethe available-for-saleavailable-for-sale finandalfinancialassets assets portfolio (Note(Note 2.2.4).2.2.4). NetNet collectionscollectionsfrom fromheld-to-matuñty held-to-maturitysecurities securitiesrecognized recognizedIn Inthe the2013 2013consolldated consolidatedcash cash I9owflowstatement statement totaltotal €€ 2,183,1172,183,117 thousandthousand (net paymentspayments of€of € 25,69125,691 thousandthousand in 2012).2012). ci U UU U U 66 U a U U 10.10. LoansLoana andand receivablesrecelvables 10.110.1 BreakdownBreakdown ofof theme balancebalance andand maximummaximum credit ñskrisk U TheThe foliowingfollowingtable tablecontains containsa abreakdown breakdownof ofme thefinancial financialassets assets includedIncludedin inthis thiscategory categoryat at 3131 December 20132013 andand 2012,2012, ciassifiedclassified byby typetype ofofcounterparty counterpartyand and bybytypa typeof ofinstmment instrument 1 ThousandsThousands ofof eurosauros 20132013 20122012 u ByBy counterpartycounterparty typetype CreditCredit institutionsinstitutions 66 039039 593593 22072 207 888888 n Resldent,Resident, pubflcpublicadmlnlstratlons administrations 598598917 917 909909097 097 Non-resldent,Non-resident, pubucpublicadministratlons administrations 106106 240240 U Resldent,Resident,offier othersedora sectors 2352823 528 014014 2535343225 353 432 Non-resideni.Non-resident,albar othersectors sectors ¶01101 958958 111111 255255 3026658830 266 588 2658128 581 912912 ti (lmpairment(Impairmentloases) losses) (1( 1 377377 104)104) (1( 1 203203529) 529) L OtherOthermeasurenient measurement adjustmentsadjustments (( 2525)2 5251 55140 140 2828 886886 959959 2727 383383 523623 n ByBy lnstrumentinstrument typotype Variable-rataVariable-ratecredit creditunes linesand andloans loans 1818 044044 928928 1919924 924 409409 U Fixed-rateFixed-ratecredit creditlinee linesand andloans loans 11 271271 580580 11 429429548 548 DebtDebtsecurtties securities 11 082082 596596 11 051051 115115 SecuritiesSecuritiesacquimd acquiredunder underrepurchase repurchaseagreements agreements 99262 262 920920 55624 624 059059 f TermTerm deposltsdeposits at credit lnstih4ionsinstitutions 127127389 369 184705184 705 ornarOther depositedeposits at credit lnshtutionsinstitutions 100100 546546 8937469 374 Li OtherOtherfinancial financial asaeteassets 376376649 649 298298703 703 3026658830 266 588 2856191328 581 913 (lmpalnnent(Impairmentlosses) losses) (1( 1 377377 104)104) (1( 1 203203529) 529) U QiherOthermeasurement measurement adjustmentsadjustments (( 2525)2 525) 56 139139 2828 886888 959959 2727 383383 523623 TheThe carryingcarryingamounts amountsshown shownin inthe theaboye abovetabla table representrepresent ffiethe creditcredit iiskriskexposure exposure borneborne bybythe the GroupGroupat ateach each fl yearyear endend withwith respectrespect to thethe financlalfinancial Instrumenteinstruments indicated.indicated. TheThe InterestaInterests accwedaccrued duñngduring2013 2013and and 20122012 brfor Ioansloans toto customerscustomers hayahave been €693,907€693907 ffiousandthousand and €845171€845,171 thousand,thousand, respectively, and are includedincluded inIn "InterestMlnterest and similar income”income" ininffie the consolidatedconsolidated incomeincome L statementstatement (Note 31). Meanwhile, interestinterest eamedearned on depositsdeposite with credit institutionslnsbtutions amountedamounted toto €29376€29,376 thousandthousand and €19,519€19.519 thousand, respectively,mspectvely, and ¡ais includedincluded also inIn "Interest“lnterest and similarsimilar incom&income" inin methe accompanylngaccompanying incomeincome statementstatement (Note 31).31). rl U TheThe averageaverage effectiveeffectlve lnterestinterest ratarate of the debt Instrumentsinstrumente classified in thlsthis portblioportfolioat at DecemberDecember 31,31, 20132013 forfor customercustomer loansloans waswas 3.37% (3.70% atat December 31, 2012) and forbr depositedeposits credit institutions was was 0.81%0.81% (1.65(1.65 %% atat December3l,December 31, 2012).2012). TheThe negaUvenegative cashcash flow includedincludedin inffie the statementstatement ofof consolidatedconsolidated cashcash flowsflows brforme the yearyear 2013 by credit U investrnentsinvestments recordadrecorded under tNsthis heading amounted €1503436€1,503,436 thousand (positive(posiuve flow ofof€ €842,244 842,244thousand thousand inin 2012).2012). tl ti. U 6767 [1 ______41 u u U ReflnanclngRefinancing operatlons,operations, refinanced and mstructuredrestructured On 2 OctoberOctober 2012, theme BankBank ofof SpainSpain issuedissued CircularCircular 6/2012,6)2012, on thethe rulesrules regardingregarding public and reservedreserved r flnancingfinancing reportingreporting andand model financial statements thatthat amend CircularCircular 4/2004412004 (22(22 December),Decernber), whichwtilch U established methe obligafionobligation teto reportrepon certain information relatingrelaUng to refinanced and restructured transactions. Additionally, on 30 ApdlApril 2013 the Bank of Spain sent a letterIetter explainingexplalnlng methe approach agreed by its ExecutiveExecuUve CommitteeCommfttee in connectionconnecUon with the preparation and approvalappmval of the refinancing and accountingaccountng policies applied toto theme transactionstransacUons in question. This approach isis freatedtreated as aa referencemference frameworkframework by UnicajaUnija Banco for compliance with Bank of Spain Circular 4)2004.4/2004. ri At 31 December 2013 and 2012, the breakdown of refinanced and restructured transacflonstransactions (a) based on the L critehacriteria of Bank of SpainSpain Circular 612012,6)2012, is as follows: ThounndsThousands of euros 1 2013 .1 FullFuIl real estate moflgagemortgage U guaranweguarantee OlberOther real guarantees (c) Unsecured No. of Gres.Gross No. of Orn..Gross No. of GrossGro.. SpecificSpeclfic fln.acfion.transactions amount flnsactlon.transactions amount flnsacUonstransactions emaurliamount covemgecoverage [ NonmiNormal RI.kRisk (1)(b) y Pubeadminisfltton,Public administrations 17 186 9 195 493 6161876 876 - DiherOther Individuallegai legal personepersons and busineaseabusinesses 23062 306 313 028 1 092 303 237 11742 742 537 975 - Of which:which: FinancngFinancing forfo, [1 constnjctionconstruction and devetpmontdevelopment 64 8776187 781 78 100807100 807 22 6182661 828 - U OtberOther natural pemon.persons 35373 537 303 952 461 35 494 2 204 16 333 - 68605 860 6171k617 164 11652 562 330926338 926 44394 439 616184616 184 ...... r. - 11 Sub.prlmeSub-prime rIekrisk 1 ? Public administratianaadministrations 2 30 3 3 2 2 - Other individual legal legal personepersons and busineseesbusinesses 1 fi771 382 826 821 274 895695 1 017 117 625 ( 239239 926)928) Of which:wNcM: FinancingRnendng forfo, r consftucftonconstruction and dev&opmontdevelopment 377 291 129 90 164648184 648 87 2014820 148 ( 167167 623)523) Ii Other natural personepersons 20752 075 119 082 520 1818226 226 716 42534 253 ( 35376)35 376) 38483 848 501 930938 1 344 292 924 1 735736 121 880 ¿( 275276 302)382) fl DoubtfulDoubfful risk1.k - . - Pub1icadminletratian.Public administrations . - - - U OthorOther iialividuindividualleg& legal perto.ispersons endand busineeseabusinesses 1 896 417 198190 1 074 423 025 660860 8113381 133 ( 878678 731) Of whlch:which: FinanngFinancing forfo, constmc5onconstruction and development 387387257257 600500 253 2862138 095 88 3994439 944 1’( 408408 477)477) U OlberOther natural personepersons 2 118 182162 488 479 3091430 914 341 2 799 ( 86400)06 480) 40144 014 599665699 686 15531 663 453939463 939 10011 001 8393283 932 ¿( 768211)765 211) 13 722 1 718 788786 44694 459 1 085 789 7 175 621821 996995 (1(1 048040 513) ....iit ,...... MIIIIIII MI Mill11110 IMMINIMI! IMMIIIIII r L 12U U 68 •‘l ______U D L o ThoussndsThousands ofof euros 20122012 FuilFull malreal esWWestate morigagemortgage guarantesguarantee Other real guarantnaguarantees (a)(c) Unsecured No. of GroesGross No. ofof GroesGross No. ofof GroesGross SpeclflcSpecific fnnsactJonstransactions amountamount trsnsacUonstransactions emountamount transacdonstransactions amountamountrlrikracoveragea e Normal RlskRisk (b)(b) PublicadminlsfltionsPublic administrations 77 Isa150 88 108 488488 5394153 941 ti Otberlnvidu&Other Individual legal pemcnspersons 27402 740 595490595 490 1 155 348395348 395 18741 874 220241220 241 1 andand busineseasbusinesses Of wN&which: RnandngFinancing forfor 367357 313 892 109 112 286286 6959 8883168 631 - consbvcilonconstruction asidand dev&opmentdevelopment fl Other natural peraonspersona 3 757757 359359 724724 475475 37 689889 2 124 2020 380 U 65046604 955354956 364 16381 638 386392386 392 44554 486 294552294 562 Sub-prlmeSub•prIme ,lskrisk PubllcPublic admlnlstmtlonsadministrations 55 4648 66 5 22 1 fl OtierOther IndIvidualIndividual legallegal pesaonspersons 1 MR549 345 983 862882 223 161 1 082 123 060080 (118(118 962) 1 and businenasbusinesses U Of which:which: RnancingRnancing forfar 177 242 171 74 114 480 2525 34 063083 ( 9999923) 923) constmcftonconstruction asidand dev&apmentdevelopment Other naturalnatural personapersons 2 021 123 397 615 21 229 742 52375 237 ( 5822)5 822) U 36753 675 459426489 426 15031 503 244396244 396 18261 826 129298128 298 (124754)(124 7841 DaubifulDoubtful rlskrisk Public adminlsfltionsadministrations . ------OtIlarOther IndIvidualindividual legallegal personepersons 1 359359 342342 580HO 8V827 437 634 584 6749067 490 (476 006)006) amiand businesanbusinesses Of which:wNch: FinancingRnandng forfo, 337337 234234 261261 186188 289269 155 74 3333 142 (248 677)877) constnscffonconstruction asidand devefopmer#development n Other natural personapersons 1 303 102 043 453 23 100 340 37203 720 ( 5767225) 225) U 28522 662 444723444 723 12801 280 460734460 734 924924 7121071 210 (543231)(543 231) 1274112 741 15686131 869 613 44214 421 10911 091 621621 72367 236494494 070070 (669(66E1 015)015) 4 (a)(a) lndudesIncludes altall refinanclngrefinancing operafiona,operations,refinanced refinancedor ormabuctired restructuredas asdefined definedin In pamgmphparagraph g)g) ofof paragraphpngraph 1 ofof Annex IX of di,the Circular 4/2004. 4/2004, (b)(b) Risks desafiadclassified asas normalnormal apecialspecial monltndngmonitoringas as statadstated InIn pdnlpointa) a)of ofpngraph paragraph 77 ofof AnnexAnnex IXIX otitisof the Circular 4/2004.412004. 1 (c)(c) IndudesIncludes realreal estetaestate mortgagemoripage transactionstransacliona notfol fuIl,full, 1.e.I.e. loanloan toto valuevalue greatargreater dianthan 1, and otheraher transactionstransactlana securedsecured byby lbsthe realreal U estateestate mortgage whatever yauryour loanloan loto value,value. TheThe gross amount of additions of refinanced or restructured transactions classifledclassified as doubtfuldoubtful or substandardsubstandard [ by Unicaja Bank GmupGroup in 2013 and 2012 totaled €568770€568,770 and €€ 648,217646,217 thousand,thousand, respectively. ThousandsThousands cfof euroseuros 2013 20122012 PubNoAdministratlonsPublic Administrations 3535 4848 Other legal antillesentitles ondand indIvidualindividual onlrepreneursentrepreneurs 484484 495495 547 037 Of whlch: which: funding for constmctionconstruction andend development 323 372 395 125 RealRest of physioalphysical personapersons 8424084 240 101 132 U 568VOssa 770 648217648 217 The Bank hashas aa transactionflnsaction refinancing,refinancing, restructuring,mstructuring, renewairenewal and renegotiatingrenegotating policypolicy thatthat has been approved by ffiethe maximum governinggoverning bodybody and is Includedincluded in thethe Enüty’sEntity's credit pollcypolicy and manual. ThisThis policy U details Ihethe requirements and situationssituations under whlchwhich a range of measures are offered to assist customers thatthat amare undergoing financlalfinancial difflculties.difficulties. ti U 69 [1 L U r u U Although control over refinanced dsks has always formad pan of the Unicaja Bancos pmdential monitohng of U Although control over refinanced risks has always formed part of the Unicaja Banco's prudential monitoring of methe loanloan portfolio, me the BankBank hashas adaptadadapted ItsIta systemssystems forfor managing,managlng, identifying¡dentifying and monitoringmonftohng fransactionstransactions involvinginvolvingcredit creditexposure exposureto tothe the definitionsdefinitionscontalned contained inin BankBank ofof SpainSpain Circular 6(2012.6/2012. Speciftally,Specifically,me the BankBank hashas pollciespolicies for reflnancing,refinancing, restructuñng,restructuring,renewing renewingand and renegotiatlngrenegotiating loansloans whichwhich detalldetail thethe requirements, termsterms andand situatlonssituations ininwhlch whicha abroad broad rangerange ofof measuresmeasures are availableavallable to help customers that are InIn financial difflculties.difficulties. inIngeneral generaltenis, terms,mese these renegotiatadrenegotiated loansloans dodo folnot includeincludechangas changes loto conditionsconditionsdeemed deemedsubstantial, substantial,besides besides anan increase in theme termterm ofof loans,loans, theffie inclusionindusion or extensionextension of gracegrece periods,peñods, oror theffie Improvementimprovement of loan collateral,collateral,so somal, that, brfor accountingaccountingpurposes, purposes,mis thisdoes does notnot entail methe write-off of ofIba theoriginal originalasseft assets oror thethe recognitionrecognitionof ofnew newassets assets atat ftlrfair value.value. fi AsAs regardsregards the accountingaceounting treatment of renegotiated loans, thethe GroupGroup compliescompiles withwith Annex IX ofof Bank ofof SpainSpain CircularCircular4/2004, 4/2004,applylng applyingthe theimpalrment impairmentadjusfrnent adjustmentratas ratesstated statedin insection section17 17and and InInparagraph paragraph 88 of RuleRule29 29 ofof CircularCircular4/2004 4/2004on onchanges changes toto thethe temisterms of debt instrumentsinstrumenta caused byby financialflnanciai difficultiesdifflculties ofofthe the borrowerborroweror ordebtor, debtor, iniin hnelinewith withparagraph paragraph GAB4GAB4of oflAS IAS39. 39.According Accordinglo tome theprocedure procedureapplied appliedby byIbe the UnicajaUnicaja BancoBanco Group,Group,if ifIbe thenew newloan loaneliminates eliminatesa adoubtftl doubtfulexposure, exposure,me thenew newloan loanmust mustalways alwaysbe beclassed classedas as U doubtful,doubtful, unlessunless mathe requirements ofof AnnexAnnex IXIX of Circular 4/20044/2004 are fulfilled.fulfilied. TheThe policlespolicies andand proceduresprocedures applied when managing exposures allowailow the itemized¡tamizad monitoringmonitoñng ofof loans.loans. IniIn thlsthis regard,regard, anyany loanloan thethe temisterms of which must be modifiedmodifled duedue to the deteriorationdetenioretion of borrower solvencysolvency alreadyalready U hashas the relevant impairment provision provisionat attha thenovation novationdate. date.Consequentiy, Consequently,as as thethe transactionstransactions areare correctly measured,measured, no additional impairmentimpairmentprovisioning provisioningrequirementa requirementsare areappiicable applicableto tothe therefinanced refinancedloans. loans. fl AsAs regardsregards ffiethe accounting treaknenttreatmentof of ¡nterest,interest,Ibe the GroupGroupdoes does not recognize inin methe income statement U interestinterestaccrued accrued afterafter loansloans areare reclassifiedreclassified asas doubtful.lf Ifoutstanding outstandinginterest interestla isreceived receivedas asa a resultresult ofof aa doubtfuldoubtfulloans loansreflnsndng refinancingor orresfructudng, restructuring,Iba theinterest interestÍs isrecognized recognizedas as incomeincome lnInIba the incomeincomestatement statement brfor Ibathe year.year. U WhereWhere thethe Bank is reasonably certain thattbat theIba customercustomer willwill comply with thethe payment schedule followinghllcwing thethe refinancingrefinancingof ofa aloan, loan,the theloan loanIs Isclassed classedas as aa performing Toan. loan.Vañous Variousftctors factorsare areconsidered, considered,such suchas as thethe contribufioncontributionof ofnew neweffective effectivecollateral. collateral.Consequently, Consequently,in insuch suchcases, cases,Ibe theneed needto tohedge hedgecredit creditexposure exposure ononthe the [ loanloan mightmightbe bereduced. reduced. RenegotiatedRenegotiatedor or refinancedrefinancedioans loansare are classiñedclassified asas defined in Bank of Spain Circular 4/2004.4/2004. ItIt shouldshould bebe notadnoted thaIthat thethe Bank of Spain hashas publishedpublished criteriaevitarla for theIba reclassificationreclassiflcafion of these risksñsks whichwhich basically fl addressaddress aspects suchsuch asas thethe determinationdeterrnination ofof borrowerborrower paymentpayment capacity,capacity, discounteddlseounted value ofof collateralcollaterai u fumishedfurnishedand andother otherftctors, factors,such suchas as Toanloangrace grace peñodsperiods ororIbe the numbernumberof oftimes timesa aloan loanhas hasbeen been restructured.restructured. FollowingFollowingthe theinitial initialclassiflcation, classification,in inthe thecase caseof ofIoans loansclassed classedas asdoubtful doubtfulor orsubstandard, substandard, prudentprudent curecure critedacriteria areare applied soso thatthaI subsequentsubsequent developmentsdevelopmenta maymay allowailow reclassificationreclassiflcation loto perfomiingperformingloan loanstatus. status. TheseThese chteñacriteriaare areapplicable applicablewhere whererepayments repayments havehave efbctivelyeffectivelybeen beenmade madeon onthe the loanloan refinanced,refinanced,such suchthaI thatdoubft doubts areare disslpateddissipated asas tolo collection,collection, takingtaking intointoaccount accountbom bothme the amountamount nepaidrepaid andand methe pedodperiod in which thethe borrowerborrowerhas hasbeen been meetingmeeting paymentpayment obligations.obligations. U U u U: 7070 ji U Li Li EJ Li 10,210.2 Past-duePast-due andand impairedimpalred assetsassets Set out belowbeiow is a breakdown ofof flnancaIfinancialassets assets classlfledclassifiedas as loansloans andand receivables andand considered toto be impairedimpaired duetodue to creditcredit riskriskat at31 31 DecemberDecember2013 2013 andand 2012,2012, andand itemsitems thatthat are not considered to be impairedImpaired butbut includeincludeamounts amountsthat that areare pastpast due at that date, classifiedclassIfled by counterpartycounterparty andand byby age:age: AssotsAssets impairedImpaired at 31 December 2013 O ThousandsThousands of euros SatweenBetween Between UptoSUp to 6 Gand96 and 9 Sandl29 and 12 Overl2Over 12 months months months months TotalTotal By countsrpartycounterparty typetype Resldent, publio O Resident, public admlnistrationsadministrations 860 - 46 245246 11152 152 Resldent,Resident, otherother sectorssectors 439 406 173 376 256258 393 1 065 366 1 934 541 Nonresident,Non-resident, publiopublic administrations - - [3 Non-msldent,Non-resident, otherother sectorssectors 87;871 294 178 1 104 24472 447 441441 137 173 670670 256256 61761711 066 066 716716 1 938938 140 [3 Assets lmpalrodimpaired atat 31 December 20122012 TbousandsThousands of euros Between BotweenBetween UptoSUp to 6 Gand96 and 9 Sandl29 and 12 Overl2Over 12 montflsmonths months months montbsmonths Total O By counterp.rtycounterparty typetype Resldent. publlc Resident, public administmUonsadministrations 158 -- 859659 945945 17621 762 Re&dent,Resident, oltierother sectoffisectors 562582 150 200 244244 168 067087 724724 860880 1 875675 361361 Non-msldent,Non-resident, publiopublic admlnlslratlonsadministrations U Non-resident, otherother sectorssectors 827 223 139 10521 052 22412 241 [3 583583 135 200200 467467 168 885885 726726 877877 1 679679 364364 At 31 December 2013 and 20122012 thethe InstitutionInstitution recordsrecords reclassifiedreciassifled substandard risksrlsks relatingrelating basicallybasically to propertyproperty transacbonstransactions (Note 46).46). Past-due balances not deemed to be lmpalredimpaired at 31 December 2013 ThousandsThousands ofof euros SetweenBetween Between LenLess thanthan onoone 1 and 22 22 andand 33 Li month months months TotalTotal By counterpañycounterparty type Credit instltutions - Credit institutions 68 - - 68 Li Resident,Resident, publiopublic admlnlstratlonsadministrations 417 128 1080410 804 1134911 349 Resident,Resident, otherother sectorssectors - - - Non-resldent,Non-resident, pubucpublic admlnistratlonsadministrations 5229652 296 2517825 178 101609101 609 179083179 083 Non-resident,Non-resident,other othersectom sect= 123 18 2628 167 Li 5290452 904 2532425 324 112439112 439 190667190 667 Li Li 7171 rl u [3 Li [3 Li Past-due balanceebalances not deemed to be ImpalredImpaired at 31 December 20122012 Thousands of euros Between B.tweenBetween LessLees than onoone 1 and 2 2 and 3 U month months months Total n SyBy counterpaftycounterparty 1»etype Credit institutions 135 - 2 137 L Resldent.Resident, publicpubUc administrations 11362 362 - 12 11374 374 Realdeni,Resident, other seclorssectors 120120635 635 247B024 780 1616971 977 182162392 392 Non-resident, publicpubile adminfstratlonsadministrations Non-resldent,Non-resident, otherother sectorssectors 59 25 23 107 U 122191122 191 2480524 801 1701417 014 164010164 010 10.3 Credit risk coverage Set out below are movements for 2013 and 2012 in impairmentimpalrrnent losses recorded toto cover credit risk ciion aebtdebt instruments classifiedclassified asas lcansloans andand reIvablesreceivables atibeat the beginning andand endend of 2013 and 2012, togethertogelber wiIbwith n cumulative impairnentimpairment Iosses.losses. MovementsMovemente in impairments losses in 2013 are set below: flousandsThousands of eurosauras rl SpecIfIcSpecific General ProvlslonProvision for U provislonprovision provislonprovision substandardsubstandard riskrlsk Total Balance at 31 December 2012 10344711 034 477 1901319 013 150039150 039 1 203 529 Charged tolo the income for thethe ysaryear 871434871 434 26822 682 176176915 915 1 051 031 Recovered and credited to methe surpiussurplus for thethe yearyear ( 582465)582 485) ( 6446)6 446) (19495)( 19 495) ( 608426)608 426) U Other movemenismovements ( 269061)269 061) 31 - ( 269 030) Balances appliedapplled tolo instrumentsInstnments writtenwdtten off duringdudng thethe ycaryear Balance alat 31 Decemberbecambar 2013 10543551 054 365 1515280 280 307459307 459 11371104 377 104 U Of wblch:which: DetermlnedDetermined individuallyindlvidually 531 414 - -- 531 414 Determined collectively 522951522 951 1515280 280 307459307 459 845690845 690 10543651 054 365 1528016 280 307459307 459 13771041 377 104 L U U r r L 1272 r u u u u r U Movements in impairmentsimpairments losseslosses in 20122012 areare set below: Thousands of eurosauras fl SpeclflcSpecific General ProvlslonProvision Larfor Li pfovlslonprovision provislonprovision substandard ilskrisk Total Balance alat 31 December2OllDecember 2011 584 847 1988519 685 282300262 300 866886 632832 Charged tolo ffiethe Income for methe yearyear 1 041 433 83 6760567 605 11109 109 121 Recovered and credited loto the surplus for thethe yearyear ( 247 384) (5( 5 169) (179 866) ( 432 419) Othermovements U Other movements ( 344419)344 419) 44144 414 - (( 340005)340 005) Balances applied tolo instrumentsinstmments writtenwdtten off dudngduring meyearthe year - - - - [1 Balance stat 31 December 2012 1 034 477 1901319 013 150 039 12035291 203 529 Of which: U DetermInadDetermined individuallylndlvldually 533 704704 - - 533 704704 DeterminadDetermined collectivelycolleclively 500 773 1919013 013 150 039 669 825 10344771 034 477 1901319`013 150039150 039 12035291 203 529 Set oidout below isIs aa breakdown by naturanature of methe ltemitem ‘omer"Other mcvemenWmovements"for forme thepeñods periods2013 2013and and 2012,2012, basedbased on methe amounts presented inin theme previous table: e, U Thousands of euros 2013 2012 (1 Ullhizat\onUtilizationduo duelo toreclasswcation reclassificationlo tonon-pedormlng non-performingcharged chargedlo toanal asset inipairmeniimpairment adjuslmentsadjustments (192 363) (113 622) U Utilization dueto due torepossession repossessionof oftangible tangibleend andotherassets other assets ( 76 667) (227 497) RedassificationReclassification ofofraid rentclassed classed as doubtfuldoubfful - 11114 114 [1 (269 030)0302 (340 005) U It11. HedglngHedging derivativasderivatives (debtore(debtors andand credltors)creditors) At 31 DecemberDecember 2013 and 2012, contracted dedvativesderivativesdesignated designatedas as hedgeshedges andand methe itemsitems hedgedhedged consisted basically of:oit - lnterestInterest rate swaps hedginghedging mortgage bondsbonds issuedissued byby UnicajaUnicaja andand third-partythird-party bonds acquiredacqulred bytheGroup.by the Group. U - Futures on listadlisted equitiesequities hedginghedging changeschanges inIn methe shareshare price prior lo tome thesale sale ofofme theshares. shares. The measurement memodsmethods used to determinedetermine theme fairftir value ofof derivativesderivatives are theme discounteddiscounted cash flow(9ow method, applied loto interest taterate derivatives, and the Montecarlo technicaltechnical simulationsimulationmethod, method,used usedlo to measuremeasure U stwcturedstructured producteproducts having an optional component. EJ u p U 0 73 FI LI u ti There follows aa breakdown byby product typetype of the fairfair valuesvalues ofof receivablesreceivables andand payablespayables relatingrelahng to dedvativesderivatives designated asas hedginghedging instwmentsinstruments inIn fairfair valuevalue hedges andand cash flow hedges stat 31 DecemberDecember 2013 and 2012, Indicatingindicating hedge types, hedging instmmentsinstruments and hedged items: n,ounndaThousands of eurosauras Li Type and cauntabl.countable 2013 2012 coverhedglngcover hedging DebtorOebtortalr fair CreditorCredlturfair fair DebtorDebtorfalr fair CreditorCr.dltarftlr fair instrumentlnatmment value value NotionalNoflonal value value NotionalNoUanal HedgedHedaed item U Fair value hedgn:hedges: Buy idIsell currencincurrencies agalnstagainst Durosauras ------Sales ofor forelgnforeign Li exchange /sumseuros - - - - - Other operaVonaoperations secudünsecurities r Swaps onQn securities OptonaOptions Qnon U values OpesuonsOperations inIn tem,term - - - - - Currency opUoneoptions 37 11 471 127 - 16 639 fl Purchased currency opIlan.options 37 11Ii 471 127 - 1663918 639 Hedge exchange L Currency optionsapilan. Issuedssued - - - CiliarOther opera&nsoperations enon lnterntinterest retasrates 543643 345346 26642 664 46869484 686 948 744 934 101 677 67826 752 454 — FfranclalFinancial IntemalInterest ratarate LoandLcend aureementagreement swaps (IRS bonds)bonda) 535 291 2 664 44169484 416 948 743 361381 6987e59876 41897494 189 749 and bondsbanda lasuedIssued 1 FlnancialFinancial interest reterate swaps (IRS balances Balances wlthwith with central bank,)banks) - - - - 31 701 20000002 000 000 central banks Financiel miami rata (1 Financial Interest rate swaps (IRS(IRS bands)bonds) 80558 055 - 170 000 1 553 - 592692 705 Debt securifiessecurities U SubiatalSubtotal 543383643 383 25642 664 45984194 598 419 748061745 061 101677101 677 67990936 799 093 Cash flow hedges: FuturasFutures on aecurffleasecurities ami - - - U and lnlrnsstinterest rata - 43 694 280260 000 Sales of&futjre future interest Cash flow of reterate - - - - 43 694 250 000 Credit,Credits OdierOther opantionioperations enon interestIntemst ratesates 362 4142441 424 23612 361 404 - 1919226 225 21088962 108 896 U FinancialFinanclal Interestlntarest reterate swaps (lRS(IRS loan Cash fiowflow of porifollo)portfolio) - 1693118 931 111 404 - 1922510 225 100108 896 Credit,Credits Financial marealinterest reterate swaps (lRS(IRS balances Balances with wfthcefflrelbanks)with central banks) - 2249322 493 20000002 000 000 - - 22000000 000 000 centmlbsnkscentral banks U FinanclaiFinancial Internetinterest ratarate swaps (IRS bonds)banda) 382362 - 250 000 - - - Debt securitiessecuHlles fl SubtatalSubtotal 362352 41 424 23612 361 404 - 5262 919 23682 368 896898 U Total 543745643 745 4408844 088 69698236 959 623 745061745 061 164496164 496 91679899 167 989 r At 31 December 2013 and 2012, ffiethe Unicaja Banco Group does not record financial instrumentsinstmments ffiatthat must be U classed as hedges of net Investmentsinvestmenft in foreign operations. U U 74 H Li 13 U Ti The Unlcajalinicaja Banco Group only teMatreats hedges deemed toto bebe highlyhighly effectiveeffeclive mroughoutthroughout thethe termterm ofof methe hedgehedge as "hedginghedging transacVons’.transactions". AA hedgehedge is deemed highlyhighly effective if,if,duñng duringifie thelarecast forecasthedge hedgeterm, term,any anychanges changes inin methe fairfair value or cashcash flowsflows attributedaffñbuted to theme financialfinandal instrumentslnstruments hedged are almostalmost entirelyenUrely offset by changes Inin the fair valuevalue orcashor cash flows, asas applicable, of thethe hedging insfruments.instruments. Designated ‘cash"cash flow hedge?hedges" covercover changeschanges in the cash flowsflows attributedauributed to a specific exposure to a financialfinancial asset oror liability,llability, oror aa highly probableprobable forecastforecast transaction,transaction, provided thethe consolidated Income statement mightmlght Fi be affacted.affected. Set out below is the informationInformation requiredrequired byby paragraphparagraph 23 of IFRS 77 inin connectionconnection withwiththese these cashcash U flowhedges:flow hedges: - Periods in which methe flows areare expected toto occur.occur FlowsFlows relatingrelatirig to depositsdeposits inin centralcentral banksbanks willwill fl occur to March 2015, while flowsflowsassociated associated wimwith debtdebt securities will occuroccur toto OctoberOctober 2017. U - PeñodsPeriods inIn whichwhichme the Incomeincomestatement statement isis expectedexpected toto bebe affected: Same periodspeñods in WhiChwhich methe cash flowsflows areare expectedexpected to occur. - Amount recognizedrecognized inin thethe pastpast year in ifiethe consolidatedconsolidated income statement itemitem "Interestinterest and similarsimilar 9 income”income" toto recti&rectifyincome incomefrom fromhedging hedgingtransactions: transactions: ProfitProfitof€ of E134 134thousand thousand (loas(loss of€of E 9797 thousand Li inin 2012).2012). - Amount recognizedrecognized ininme the pastpast yearyear Inin thethe consoildatedconsolidated incomeincome statementstatement itemItem 7nterest"Interestexpense expense and similar charges’charges" toto rectifyrectifyexpense expense from hedglnghedging transactione:transactions: LasaLoss ofof €E 1151311,513 thousandthousand (lasa(loss of E€ fl 4,5834,563 ffiousandthousand in 2012). - Cash flow hedgehedge ineffectívenessIneffectiveness recognizedrecognized inin resultaresults larforthe theyear year Cash flowtlow hedge ineffectivenessineffectiveness U recognizedrecognized in methe consolidatedconsolidated income statementstatement in 2013 totals €E 3,0833,083 thousand,thousand, relatingreiating toto lnterestInterest raterate frituresfutures sales. Inln 2012, nono cashcash flowflow hedgehedge ineffectivenessineftctiveness was recognizedreco9nlzed inín the consolidatedcansolidated o income statement. U Net losseslosses on measurement recognized in ffiethe consolidated statementstatement of recognized IncomeIncomeand and expensesexpenses for 2013 and 2012 in respect of cash flowflow hedges amountedamounted to € 28,53028,530 thousand and € 9,5999,599 thousand,thousand, ri respectively.respectively.Additionaily, Additionally,in in2013 2013net netgama gainsof of€ € 11,72711,727mousand thousand wemwere takentaken to the consolidatedconsoildated incomeincome L statement. Designated “fair"fair valuevalue hedges”hedges" cavarcover exposureexposure to changes inin theme fairfair value of financial assetsassets andand liabilitiesliabilities or n of firmflrm commitments not not yetyet recognized, oror of anan identifiedidentfied portion of such assets,asaeta, liabilitiesllabflities oror firm1km commltrnents,commitments, attributableattributableto toa a particular exposure,exposure, provided thethe consolidated income statementstatement mightmlght be U affected. Set out belowbelaw is the Informationinfoiwation requiredrequired byby paragraphparagraph 24 of IFRSFRS 7 inin connection with thesethese fair value hedges:hedges: [1 - LoasesLosses and gains on hedginghedglng instruments:instwments: SaeSee accompanyingaccompanying table showing aa breekdownbreakdown ofof loaseslosses U and gamagains on hedginghedglng instrumentslnstruments during 2013 andand 2012. - Losses and gainsgama on theifie hedgedhedged item¡tem attributableatffibutable toto methe exposure hedged: See accompanyingaccompanying table showing aa breakdown ofof loaseslosses and gains on hedgedhedged itemsitems thatmat areare actuallyactually attributableattributable tato methe hedged exposure duringduñng 2013 andand 2012. - lneffectivenessIneffectiveness ofof hedgeshedges of net Investmentslnvestments Inin foreign operationsoperations recognized In resultaresults larfor thethe yearyear. The Group has no hedges ofof thismis kind. U 9 u404 U 75 (-) U U U Thousands of eurosauras o 31 de diciembredlciambre detie 2013 31 de diciembre de 2012 ResultsReeuit, Qnon hedinghedging ResultsResulta Qnon hedging Instrumentslnstmmenta HedgedHedoed msuitsresults instrumentslasfrumenta HedgedHedped resultsresulta HedalngHedging lnstrumentInstrument LoesLoss ProfitPmflt LossLoes PmfitProfit Los,Loss ProfltProfit LoesLoss ProfltProfit LI Buying mdand selllngselling of (ortigaforeign cunenclescurrencies egilnstagainst euro SolesSales of forelgnforeign cijnencycurrency enon sewñUessecurities - - - Other opersUoneoperations Qnon value,values - - 10167 - 3030930 309 2729727 297 8275462 764 6666136 135 U Swaps values - - - OpUonaOptions on Securities - - - - - OperalfonaOperations inIn terraterm - - 157 - 3030930 369 2729727 297 6275462 754 5613566 135 Currency optioneoptions 476 363 446445 661667 166165 289259 132 38 PumhasedPurchased currencycurmncy optioneoptions 476478 363 445445 557 185 259 132 3835 Currency omionsoptions suedIssued - - - - - Other openflon.operations Qnon Interestinterest rata.rates 367193367 193 188168127 127 186448186 448 336107336 107 221 643543 366407366 407 394140394 140 249185249 185 FinanolsiFinancial interestinterest ratarate swapsswaps (IRS bonds)bonds) 351 617 156 234 154 337 349 984964 160 382 354 215 381 B46546 187 592692 FinanclalFinancial lnterestInterest reterate Swapsswaps U (JHS balances wlth central (IRS balances with central - - - banks) - 30 964 398 398 30 964 Financial Interestinterest ratorate swapeswaps 1 (JHS(IRS bande)bonds) 1515575 575 3159331 893 3211132 111 1816123 123 30 197 1111794 794 11 596896 3052930 529 U 361669367 669 188490188 490 187060187 050 366664356 564 262017252 017 393963393 963 461025467 026 316368315 358 The notionalnottonal amountamount ofof thethe contracts formalizadformalizeddoes does notnot representrepresent the actual riskñsk assumed by the GroupGroup inln El relation toto suchsuch instruments. The Group applies fair valuevalue hedge accounting basically toto transactionstransactions in whlchwhich Ititis is exposedexposed toto changaschanges in methe fairfair value of certaincartain asseftassets andand liabilitiesllabilities thatthat are sensitivesensitiva toto interest ratarate fluctuations, Le.i.e. assetsassets and liabilities linked linkedto toa a fixedfixedintemst interestrata, rate,which whichis isconverted convertedinto intoa a variablevariablerata rate byby meansmeans of the relevantrelevant hedges. In methe GroupsGroup's opinlon,opinion, atat 3131 DecemberDecember 20132013 andand 20122012 Hierethere are no doubts thatthat thethe expectedexpected transactionstransactlons willwill U be completed.completad. 1212. Investmentslnvestments (1 U 12.1 InvestmentsInvestments -- associates AppendlxAppendix HlIllcontalns containsa a breakdownbreakdownof ofme theGroups Group'sshareholdings shareholdings ininassociates associates entities atat 31 December 2013 U and 2012 indicatingindicatlng thethe percentage heldheld andand otherother relevantrelevant Information.information. u U U U 76 Ej Li U U U ji TheThe contñbutioncontributionfrom fromthe themain mainassociates associates toto the consolidatedconsolidated balance sheet itemitem "EquityEquity investmentsinvesfrnents -- Assoclate&Associates" atat 3131 DecemberDecember 20132013 andand 2012 are as follows:foNows: (1 ThousandsThousands ofof euroseuros U 20132013 20122012 .estNest's Aemspace,Aerospace, SLS.L. 75257 525 12 685885 Hidralla,Hi:traria,Gestión GestionIntegral Integralde deAguas Aguas dede Andalucla,Andalucia, SA.S.A. (previously,(previously,AquagestAndalucla, Aquagest Andalucia, SA.)S.A.) 4916949 169 4986349 863 U AutopistaAutoplstadel del Guadalmedina,Guadalmedina, ConcesionariaConcesionaria Española,Espaflola, SAS.A. 2239322 393 2626 032032 AutopistaAutoplstadel delSol, Sol,Concesionaria ConcesionariaEspaña, Espana, SA.S.A. 3030 164164 3334133 341 Deoieo,Deoleo, SAS.A. 6363 223223 7171 859859 EBNEBNBanco Bancode deNegocios, Negodos, SA.S.A. 1056410 564 98839 883 GrupoGrupo HotelesHoteles Playa,Playa, SAS.A. 1111 376376 15 358 358 SacyrVallehermoso,Sacyr Vallehermoso, SA.S.A. -- 3838 815815 SociedadSociedad Municipal de deAparcamientos Aparoamientosy yServicios, Serviclos,SA SA. 88 135 77776 776 UnlcorpUnicorpVida, Vida,Compañia Comparliade deSeguros Segurosy yReaseguros, Reaseguros, SAS.A. 7593075 930 5877858 778 OtherOther entitlesentities 1 280280 68 996996 279279 759769 333333 586586 U SetSet out belowbelow is thethe reconciliationreconciliation between ffiethe openingopening and closingclosing balancesbalances ofof "EquityEquky Investmentsinvesimenis -- U AssociatesAssociates" inii thethe consoildatedconsolidated balancebalance sheetssheets for 20132013 andand 2012:2012: ThousandsThousands ofof euroseuros 20132013 20122012 NetNet bockbook valuevalue stat 11 JanuaryJanuary 293293 542542 354354 716716 n AdditiansAdditionsfor forthe theyear year 33 841841 22 260260 DisposaisDisposals forforthe theyear year (( 3939 504)504) -- U QutcomeOutcome equftyequity 1562715 627 (( 22 128)128) impairmentImpairmentlosses losses (Note(Note 41)41) (( 7937)7 937) (( 39261)39 261) DlsffibutedDistributed dMdendsdividends (( 19333)19 333) (17( 17 962)962) DifferencesDifferences ininvaluaUon valuationadjustments adjustments 2728027 280 68 116 TransferTransfers between assoclatedassociated andaid groupgwup I¡ multigroupmultigmup (( 11 974)974) 3030 OtherOther movementsmovements 82178 217 2727 815815 NatNet book valuevalue stat 3131 DecomberDecember 279279 759759 333333 586686 U ‘meThe itemItem‘Other "OthermovemenW movements"relates relatesbasicaliy basicallyto tocapital capitalincreases Increasesand and reducbonsreductionsin inassociates, associates, whichwhich areare not recognizedrecognized asas additionsadditions ordisposalsor disposals pmvidedprovidedffie thepercentage percentage shareholdingshareholdingdoes does notnot change.change. U ‘‘ AtAt 3131 DecemberDecember 20132013 andand 20122012 thethe Group recordadrecorded anan amount of €7937€7,937 thousandthousand andand €39261€39,261 thousand, U respectively,respectively, inin respectrespect ofof lmpairmentimpairmentof oflnvestmenft investments Ininassociates, associates, being recorded Iniii the captioncaption "Impairment“lmpalrment losseslosses on other asaeteassets (net)(net) "(“( Note 41).41). n M ‘meThe balancebalance of methe caption " lnvestmenftinvestments -- AssociatesAssociates " ininffie the consolidatedconsolidatedbalance balancesheeft sheets at December 31, U 20132013 andand 2012 includes €38137€38,137 thousandthousand and €40044€40,044 thousand,mousand, respectively,respectiveiy, related to goodwillgoodwili associated associated withwithmis this typetype ofofshares. shares. Note 4 setsseta outmit informationinformation relatingrelatlng to this goodwill. U U U 77 U U L U u 12.212.2 InvestmentsInveskTienta -jointly-controlled-jointly-conftolled entitiesentWes AppendlxAppendix IIII contains a breakdown of the Group'sGroup’s shareholdings in jointly-contmlledjointly-controlledentities entitiesat at31 31 DecemberDecember U 20132013 and 2012 indicatinglndicating the percentage held and other relevant Information.information. (Note(Note 44 andand AppendixAppendix II)II) 12.312.3 NotificationNotification ofof shareholdingsshareholdings acquiredacquired and soldsoid HeroHere are theme notificationsnotiflcations of acquisitionsacquisWons andand sales of shareholdungsshareholdings in gmupgroup entities, associates and jountlyjointly- controlledcontrolledentities entitiesthat thathave havebeen been subnittedsubmitted inin accordanceaccordancewith withArticle Article86 86 ofof methe SpanishSpanish CompaniesCompanies ActAct andand ArticleArticle 5353 ofof StockStockMarketAct24/1988. Market Act 24/1988. InIn 20132013 the mainmali acquisitionsacquisitlons and disposalsdisposais of shareholdings inin associatedassociated companlescompanies were as follows: 11u - AcquisihonAcquisitionon on5 5February February2013 2013and and23 23 SeptemberSeptember2013 2013 ofof 12451,245 shares in Sociedad dede GestiónGestien SanSan Caños,Carlos, S.A. (Sogescar) for €418E 418 thousand; methe Group’sGroup's interestinterestin inmis thiscompany companyat at31 31December December2013 2013 P standsstandsat at50.32%. 50.32%. -- AcquisitonAcquisitionon on11 11 FebruaiyFebruary2013 2013 of 11441,144 shares in Unic-as PromocionesPromociones Inmobiliarias,inmobiliarias, S.L.S.L. brfor U €€1,5001500 thousand;thousand; thethe Group'sGroup’s interest in thisthiscompany companyat at31 31December December2013 2013 standsstandsat at 100%.100%. -- AcquisitionAcquisitionon on28 28 FebwaryFebruary2013 2013 of 31303,130 sharesshares inin InversionesInversiones Social Docente del AhorroAhorro O BenéficoBenefico Español,Espanol,S.A. S.A.(ISDABE). (ISDABE). -- LiquidatonLiquidationen on9 9Apñl April2013 2013 affectingaffecting1,186,704 1,185,704shares sharesin inA.I.E. A.I.E. AlcioneAlcione1, I, 1,222,5461,222,546 shares in L AlE.A.I.E. Alcione II,II, 1959,0001,959,000 shares in A.I,E.A.I.E. Naviera Urania.Urania, At 31 December 2013 theffie GroupGmup holds no sharesshares inin ifiesethese companles.companies. -- AcquisitionAcquisitionQn on14 14May May 20132013 of 100,000 sharesshares inin UrbasurUrbasur ActuacionesActuaciones Urbanfsticas,Urbanisticas, S.L.S.L. brfor €€ 1 1 50,00050,000 thousand; thethe Givup’sGroup's lnterestInterestin inthis thiscompany companyat at31 31December December2013 2013 standsstands atat 100%.100%. -- SaleSale on 6 JuneJune 20132013 ofof 12,375,75512,375,755 sharesshams inin ParticipacionesParticipaciones Agrupadas,Agrupadas,S.L. S.L.br for€ € 2525 thousand,thousand, generatinggenerating aa profit ofof €E 2525 thousand.thousand. n -- SaleSale enon 12 June 2013 of 250 sharesshares inIn Hispaparking,Hispaparking, S.L. terfor €€ 13,000 thousand, generating aa profitof€l2thousand.profit of 12 thousand. U -- LiquidationLiquidationon on16 16 JulyJuly 20132013 of AndaluzaAndaluza dede ControlControl yy DispositivosDispositivas de Seguridad,Seguridad, S.A.U. CACOS),(ACDS), aftctingaffecting 10,148 shares amountingamounthng toto €€ 436436 thausand.thousand. -- AcquisltonAcquisitionen on18 18 JulyJuly2013 2013 of 3857138,571 shares in TitulizacionTitulización de Activos,Actives, Sociedad GestoraGestora dede Fondos dede Titulizaclón,Titulizacien,S.A. S.A. (TDA)(TDA) brfor €€ 2,797 thousand;thousand; theffie Group'sGroup’s Interestinterest Iiin thisthis companycompanyat at 3131 u DecemberDecember 20132013 stands at 38.57% andand itit isa now classed asas an associate. -- SaleSale on 6 NovemberNovember 20132013 of 1,5051505 shares in ServiciosGenerales Generalesde deJaén, Jaen,SA. S.A.for for€ € 33 mousand,thousand, wtiichwhich diddid notnot generategenerate aa profitprofit. -- SaleSale on 16 December 2013 ofof 7,2527,252 sharesahares iniii InversionesInversiones SocialSocial DocenteDocente del Ahorro BenéficoBenefice U Español,Espanol, S.A.S.A. (ISDABE) brfor € 379 thousand,mousand, generatinggeneratng aa loss of €€ 430 thousandmousand matthat is offset byby anan lmpalrmentImpairment provision.provision.At At31 31 DecemberDecember 20132013 the Group holds no shares inIn this company. n -- SubscdptionSubscriptionin ina acapital capitalincrease increaseon on23 23 DecemberDecember2013 2013 ofof 31,220,000 shares in UnicajaUnicaja 11 GestiónGestien dede ActivosActivosInmobiliarios, Inmobillarios,S.A.U. S.A.U.(UGAI) (UGAI)for for€31220 € 31,220 thousand. U -- Non-cashNon-cashcontribution contributionon on23 23December December2013 2013to tosubscribe subscribefor fora a totaltotal ofof 30,04030,040 shares in GestiónGest& dede InmueblesInmuebles Adquiridos,Adqulridos,S.L.U. St U. (GIA) in methe amountamountof of€31 31,206,206 thousand.thousand. -- LiquidatonLiquidationon on31 31December December2013 2013of of1,749,901 1,749,901 sharesshares ininA.I.E. A.I.E. NavieraNaviera Nerga.Nerga.At At 3131 DecemberDecember 20132013 theme Group holds no shares in misthis entity. U -- AcquisitonAcquisitionen on31 31 DecemberDecember 20132013 of 210,940 sharesshares InIi LiquidambarLiquidámbar InversionesInversiones Financieras, S.L.S.L. brfor €€ 564564 thousand; thethe Group’sGroup's interestinterestin inthis thiscompany companyat at31 31December December2013 2013 standsstandsat at14.74%. 14.74%. -- VerticalVertical mergermerger of UnlcorpUnicorp RetailRetail Properties, S.A.U.S.A.U. Intointo UnicornUnlcorp CorporaciónCorporacion Financiera,Financiera, S.L.,S.L., [1 affectingaffecting6,051 6,051 shares,shares, amountingamounting toto€3.401 € 3,401 thousand. U -- LiquldationLiquidationof ofthe the secuñtizationsecuritizationfunds fundsAYT AYTUnicaja UnicajaFinanciación Financiacion1, I,FTA, FTA, UnicajaUnicajaAndalucla Andalucia FTFT ViviendaVivienda WATDA 1,1, FTA,FTA, Unicaja AW AYT EmpresasEmpresas1, I, FTAFTA andand UnicajaUnicajaTDA TDAVPQ, VPO, FAFTA (Note(Note 30.6).30.6). U 7878 u Li U E U Also,Also, Inin 2013,2013, merethere havehaya beenbeen thethe followingfoflowing changeschanges inin classificationclasaification betweenbetween GroupGroup companies,companies, jointlyjoInUy controlled entities entitiesand andassociates: associates: - HavingHavingregard regard teto Ibethe shareholding Inin Sacyr Vallehermoso, S.A.,S.A., withwitheffect effectas as fromfrom 11 JanuaryJanuary 2013 existing shareholdershareholder agreementsagreements werewere canceliedcancelled andand methe Investmentlnvestment waswas reclassifiedreclassifled loto the available-for-sale assetsassets portfolioperifollo atat ffiatthat date.date. -• TheThe shareholding in Urbasur ActuacionesActuaciones Urbanísticas,Urbanisticas, SL.S.L. increasedincreased from 50% loto 100%, thisthis companycompany becoming a subsidiary of methe Unicaja Banco Gmup.Group. - TheThe shareholdlngshareholding in Unic-as Promociones Inmobiliarias, S.L.S.L. Increasedincreased from 49%49% to 100%, this companycompany becomlngbecoming a subsidiary of thethe Unicaja Banco Group. 1] InIn2012 2012Ibe the mainmainacquisitions acquisitionsand anddisposais disposals ofofshareholdings shareholdings ininassociated associated companlescompanies were as follows:follows: La -- AcquisihonAcquisitiondated datedJanuary January30, 30, 20122012 ofof 947439947,439 sharesshares in ALE. NavieraNaviera CaboCabo Udra terfor €947€947 thousand,thousand, and alat 31 December 2012 a 26% stake inIn methe company waswas heid.held. -- AcquisWonAcquisitiondatad datedMarch March26, 26,2012 2012of of 959,920959,920 sharesshares In A.I.E.AJE. NavieraNaviera SanSan SimonSimón terfor €960 thousand,thousand, and at 31 December 2012 a 26% stake inin the company was held. U - AcqulsitionAcquisitiondated datedApril April30, 30,2012 2012of of9750 9,750 sharesshares in Cartera dede InversionesInversiones Agroalimentarias,Agroalimentarias, S.L.S.L. terfor€160 €160thousand, thousand, atat 3131 DecemberDecember 20122012 aa 82.50% stakestake in thethe companycompany waswas held.held. fi -- AcquisiVonAcquisitiondated datedMay May10, 10,2012 2012of of 5,0995,099 sharesshares In Grupo Hoteles Playa, S.A. for €311 ffiousand,thousand, and at 31 December 2012 a 15.55%15.55% siakestake inIn Ibathe company waswas heid.held. -- AcquisihonAcquisitionof of972,399 972,399shares, shares,datad dated 2525 June 2012,2012, inUi A.I.E.A.I.E. NavieraNaviera MalpicaMalpica forter €972 thousand,thousand, at 31 December 2012 a 26% stakestake inin thethe company was heid.held. - SubscñptionSubscription dataddated December 26,26, 2012 of 56,905,40056,905,400 shares inUi UnicajaUnicaja GestiOnGestión de ActivosActivos Inmobiliarios,Inmobiliarios,S.A.U. S.A.U.ter for€ €56,905 56,905mousand, thousand,mrough through aa cash contributioncontribution at the time of incorporationincorporation of U €55379€55,379 thousand and €1,526€1.526 thousand inin cash,cash, withwith theIba percentagepercentage ofof participationparticipation in the equityequlty of thethe companycompany alat December 31,201231, 2012 the 100.00100.00% % (Note 1.1.3). n -- DispositionDispositiondated dated SeptemberSeptember 26,201226, 2012 of 260,064260,064 sharesshares inin Alcazaba Television, SL, whlcbwhich hashas ¡ E notnot bmughtbrought benefite.benefits. U -- UquidationLiquidationdatad datedJune June6, 6,2012 2012 ofof200 200 sharesshares in assetsasseta Andalusians,Andaluslans, SL, which has brought beneflts.benefits. -- Liquidation dated datedNovember November15, 15,2012 2012 ofof 6,000 shares inIn AdministrationAdministration and PersonnelPersonnel Management, ETT,EH, SAU forfor€513 E 513thousand, thousand. -- LiquldationLiquidationdated datedDecember December13, 13,2012 2012of of9,088 9,088 sharesshares Uiin Profingo, SA,SA, terforwhich whichassete assets hayohave beenbeen obtained, for€for E 1,9491,949 thousand.thousand. E? Also,Also, inIn 2012,2012, Iberothere have beenbeen thethe followingtellowing changeschanges inIn classificationclassification betweenbetween GroupGroup companies,companies, jointlyjointly U controlledcontrolledantilles entitiesand andassodates: associates: - ReclassiflcationReclassification fromfrom lnvesfrnentsinvestments inIn Uniwindet,Uniwlndet, S.L., UnlwindetUniwindetParque ParqueEólico alio:, TresTres Villas,Villas, S.L., UniwindetUniwindetParque Parque EólicoEolicoLoma Lomade de Ayala, S.L., UniwindetParque Parque EólicoEOlicoLos LosJarales, Jarales, S.L. and U UniwindetUniwindetParque Parque EólicoEttilicoLas LasLomillas, Lomillas,S.L. S.L.whlch whichwere were classifledclassified asas Jolntlyjointly controlledcontrolled entitiesentities stat DecemberDecember 31,31, 20112011 andand have come loto be classifledclassified as GroupGmup enhilesentities at December 31, 2012. fi -- ReclassificationReclassification ofofthe the ownershlpownership interestinterest inin CarteraCartera de lnversionesInversiones Agroalimentarias,Agroalimentañas, S.L. whicbwhich U waswas classifledclassifiedas as an associsteassociate entity stat December 31,31, 20112011 andand has cometocome to be classifiedclassi1ed asas GroupGmup entityentity alat December3l,December 31, 2012.2012. Fi TheThe net charges recordedrecorded inIn the consolidatedconsolidated statement of cash flows terfor Ibathe year 2013 recordedrecordad in this U caplloncaption cashcash holdings amountedamounted to €268E 268 thousandthousand (net paymenftpayments ofof€ E 2,4992,499 thousandthousand in 2012).2012), E 7979 II U 13 ‘3 ur 13. Property, plant and equlpmentequipment The movements of "property,property, plant and equipment"equlpmenr in this balance sheets of 2013 and 2012 are as follows: Thousands of euros U InvestmentInvestmsnt ForPor own use property Total Cost Balance at 31 December 2012 11168 168 900 203 951 1 372 851 U AdditionsAddltlons 99186 188 33467 487 1212655 855 DisposalsDlsposals and otherciliar write-offswdte-offs (( 1212 521) ((13 13 814)614) (( 2626335) 335) Other transfers and other movements ( 15 929) 40 368366 2424437 437 Balance atst 31 December 2013 11149638 149 638 233 970 11 383363 608 1U Accumulated depreciationdepmclatlon Balance atst 31 December 2012 ( 520 914) (16(16166) 186) ( 537 100) DisposalsDisposais andand otherciliar write-offswdte-offs 88496 496 499 8 995 Charges (( 2929918) 918) ( 33797) 797) ( 3333715) 715) U OtherOrnar transfers and other movements 11 058 ( 3 449449)) ( 2 391) Balance atst 31 December 2013 ( 541 278) ( 22 933) ( 564 2111211) Impairmentlmpalnnent lossesloases AtAl 31 December 2013 (( 1717 049) ( 48 657) ( 6565706) 708) Net property,property, plantplantand and equipmentequlpment 1 Balance at 31 December 2013 591 311 162 380 753 691 Thousands of euros n Investmentlnvestment ForPor own use property Total U Cost BalanceBalance atst 31 December 2011 11130497 130 497 163163 004 11 293 501 AdditionsAddltions 68 140140 22699 699 7070839 839 DisposalsDisposais and othercther write-offswille-offs (( 88003) 003) ((12022) 12 022) ( 2020025) 025) Li OtherQther transferslransfers and otherciliar movementsmovemenis (( 21 734) 50 270 28 536 Balance atst 31 December 2012 11168 188 900 203 951 11 372 851 Accumulated depreciationdepreclaflon Balance atst 31 December 2011 ( 484 601) ((12502) 12 502) (( 497 103) DisposalsDisposais andand otherotherwyite-offs write-offs 44209 209 1717 44226 228 Charges (( 3131577) 577) (( 44600) 600) (( 3638 177)177) Other transfers and other movements (( 8 945) 899 (( 8 046)048) Balance at 31 December 2012 ( 520 9142914) ((16 16 188)186) ((537 537 100) Impairmentlmpalnnent lossesloases AtAt31 31 DecemberDecember2ol2 2012 (( 1818693) 693) ((39038) 39 038) (( 5757731) 731) 11 Net property, plant and equipmentequlpment U Balance at 31 December 2012 629 293 148 727 778718 020 U u E. 80 ______ EJ L o U TheThe aboveaboye tablestablas identifyidenti& tther"Other transMrstransfersand and other movements”movements"in in bothboth ifiethe cost andand accumulatedaccumulated depreciationdepreciation ofofffie the assets.assets. Set outmit below lais a breakdown by naturanature of mesethese movements in 20132013 andand 2012:2012: ThousandsThousands of euroseuros 20132013 20122012 o lnvesúnentInvestment PorFor ownown lnvestmentInvestment PorFor own use PropmtyProperty use Property TransfersTransfers fmmfromnon-current non-currentassets assets held forforsale sale -- 67088 708 -- 1897018 970 U TransfemTransfers between own useuse and lnvesmientinvestment properties (15(15 273)273) 1527315 273 (20517)(20 517) 2051720 517 TransfersTransfers fronfrom inventariesinventories -- 2411024 110 -- 1903519 035 OlberOther movementsmovements 402402 (9174)( 9 174) (10162)(10162) (( 7353)7 353) (14(14 871)871) 3691736 917 (30(30 679)679) 5116961 169 TheThe GroupGroup hashas taken mitout several insurance policiespoilcies loto cover ñsksrisks thaithat are subJecisubject property, plant andand equipment.equipment. TheThe coverage of these policiespolicies is consideredconsldered sufficient. TheThe net charges recorded in methe statement of consolidated cash flows brfor thethe yearyear 20132013 byby tangibletangibleassets assets recordedrecorded underthisunder this headingheading amauntedamounted to €571E 571 mousandthousand (net payments ofof€ E 5490254.902 thousandthousand in 2012).2012). U 13.1 Property,Property, plantplant andand equipmentequipment for awnown useuse SetSet out below isis aa breakdownbreakdown byby naturanature ofofthis thisbalance balancesheet sheet captoncaption atat 3131 DecemberDecember 20132013 andand 2012:2012: TbousandsThousands ofof euroseuros U AccumulatedAccumulated ImpalrmentImpairment Net balancebalance CostCost depreclatlondepreciation losseslosses DalaData processlngprocessing equipment and lnstaflallonsinstallations 9090 389389 ( 82 598) - 77917 791 Fumiture.Furniture, vehidesvehicles andand atherother installat]onsInstallations 535535 786786 (374(374 939)939) ( 276)276) 160571160 571 BulldlngsBuildings 472472 918918 ( 7777250) 250) (13085)(13 085) 382603382 603 WorkWork inInprogress progress 904904 - - 904904 QtherOther 4964149 641 (( 6491)6 491) (3708)( 3 708) 3944239 442 U Balance stat 31 December 20132013 11491 149 638638 (541(541 276)2781 (17(17 049)049) 591591 311311 DataData processing equlpmentequipment and Installationsinstallations 8971889 718 (( 8585224) 224) -- 44944 494 U Fumlture,Furniture,vehicles vehicles andand otl,erother installatlonsinstallations 534534 960 (354(354 738)738) (( 352)352) 179 870 BuildlngsBuildings 486525486 525 (( 7474695) 695) (14228)(14 228) 397602397 602 WorkWorkIn inprogress progress Sn877 - -- 677877 46450 F :;‘ GUiarOther 5682056 820 (( 6257)6 257) (( 44113) 113) 46 450 u Balance stat 3131 December 20122012 1 1GB 900 (520(620 914)914) (18(18 693)693) 629629 293293 ..x1 .00 AsAs part ofof thethe net balance as ofof DecemberDecember 2013 containedcontalned inin thethe aboyeabove tabla,table, ffierethere are headingsheadinge brfor an amount ofof €5413€5,413 thousandthousand (€1747(€1,747 thousandthousand at December 31, 2012) correspondingcormsponding toto plant andand equipment EJ netnet worthworthsociefies societies GroupGroupare are acquiredacquired underunder leasing.leasing. AtAt 3131 December 2013,2013, property, piantplant andand equipment brfor ownown useuse having a grossgross valuevalue ofof approximatelyapproxlmataly U €355954€355,954 thousandthousand (€349907(€349,907 thousandthousand at 31 December 2012) was fully depreciated.depreciated. E’ EJ 8181 u Li o 13.2 Investmentlnvesfrnent propertyproperty TheThe consolidatedconsolidated balancebalance sheetsheet item “InvestmentInvestment property'propeñy generallygenerally reflectsreflecte the net values ofof land, buildingsbulldings andand other stwcturesstructures held inIn order to be leased.leased. Investmentlnvestment propertyproperty is5 carried In ifiethe consolidated balance U sheetsheet atal acquisitionacquisiUon cosi,cost, whlchwhich lsis formed byby methe fair valuevalue ofof anyany consideration paidpaid plusplus alIall cashcash ouUaysoutlays mademade or commiffed,committed,less less accumulatedaccumulated depreclaüondepreciation andand anyany estimatedestimated loaseslosses calculated by compañngcomparing thethe netnet valuevalue ofof eacheach Item¡ten withwith lisits recovemblerecoverable amountamount Under lAS 36,36, methe recoverable amount ¡5is theme higherhlgher of fair valuevalue lessless costecosts loto sellsell andand ffiethe valuevalue inInuse use cfofffie theasseft. assets. AsAs Ihesethese assets generategenerate rentalrental incomeincome andand theirthelr valuevalue inin use maymay bebe estimated,eslimated, theIhe GroupGroup doesdoes notnot followfollow thethe carnesame appraisedappmised valuevalue updateupdate criteriachleria applicableappNcable tolo irregularirregular propertiespropedies held exclusivelyexcluslvely rfor sale.sale. TheThe Group calculatescalculates Ihethe recoverable arnountamount ofof investmentinvestmentproperty propertybased basedon on thethe valuevalue lnin useuse deriveddedved from thethe rent u generatedgenerated bybyffie the assets. TheThe Unicaja BancoBanco doesdoes not have a reliable measurement ofof theifie fairfair value of investment pmperty.property. AsAs ffierethere ¡eis nono reliableraliable rneasurernentmeasurementof of methe fair value of Investmentlnvesbnent propefty, property,the theGroup Groupdoes doesnot not repoftreport enon the requlrementsrequirements ofof lettersletters (d)(d) andand (e)(e) ofof lASIAS40, 40,paragraph paragraph 75.75. DlrectDirect operabngoperatingexpenses expenses (includlng(includingrepairs repairs andand maintenance)malntenance) recognized in the consolidatedconsolidated incomeincome staternentsstatements for 2013 and 20122012 InIn relationrelation tolo investmentinvestment property,property, showing prcperlypropertylhat that generalesgenerates rent separatelyseparately fromfmm properlyproperty thaithat doesdoes not, are as follows:ftllows: ThousandsThousandsof ofeuros soros 2013 2012 Ç 2013 2012 U ExpensesExpenses assoclatedassociated withWIth lnvestmentInvestment propertypropertymal thatgenerales generates rentrent 44 679679 33 052062 ExpensesExpenses asscclatedassociated withwlth lnvestmentinvestment propertypropertymal thatdoes does nolnotgenerale generate rentrent 975975 456455 56545 654 35373 537 AsAs regardsregards thethe lnvesknentinvestment propertypropertyr forWfiICh whichme theGroup Groupacis actsas asa a leseor,lessor, regulationsregulationsapplicable applicablelo toeach eachlease lease areare observed, particularlyparticularly methe provisionsprovislons of Law 29/1994(2429/1994 (24 November)November) onon MunicipalMunicipalLeases Leases sndand Law 4/20134/2013 0 (4(4 June)June) on measures toto developdevelop andand enhanceenhnce theme flexibilityflexibility ofofthe thehorne homerental rental market lnin 20132013 anaand 2012, income frornfrom leasedleased out under operating lease (investment(investment property) owned byby thethe Group (Note n tolaledtotaled €6610€6,610 thousandthousand and €6460€6,460 thousand, respectivelyrespectively (Note 35),38). WithWithrespect respect toto thethe Informationinfom,ation required requiredby bylAS lAS27, 27,paragraph paragraph56, 56, inIn2013 2013and and 20122012 methe Group'sGmup’s annual U incorneincome fronfromnon-cancellable non-cancellableoperating operatingleases, leases,Le. I.e.under underffie theformer formerlease lease regirne,regime, totaledtotaled €€ 77 thousand in bat),both peñods.periods. U u o U rl U 8282 ______u O U O U 13.3 ImpairmentImpaimient Iosseslosses Set out belowbeiow is aa summarysummary ofof movementsmovements inin impairmentimpairment losses affectingaffecting property,property, plant and equipment duñngduring 20132013 aidand 2012:2012: U TbousandsThousands ofof euroseuros lnvesúnentInvestment OwnOwn useuse propertyproperty TotalTotal Balance stat 31 DecwnberDecember 20112011 2295522 956 2331123 311 4626646 266 EndowmentsEndowments 78987 898 78987 898 Recovedes,Recoveries,sales sales OtherOther recovedesrecoveries 79) 79) U (( 79) - (( 79) OtherOther transferstransfers and mclasslficatlonsreclassifications (4163)( 4183) 78297 829 36463 646 Balance stat 31 December 20122012 1869318 693 3903839 038 5773157 731 EndowmentsEndowments -- 88 009009 8 009009 Recovadas,Recoveries, salessates (( 410)410) (( 63)63) (( 473)473) Other recovedes Other recoveries (( 69)69) -- (( 69)69) U OtherOther transferstransfers aidand reclasslficatlonsreclassifications (1165)( 1 165) 1 673673 508508 Balance alat 3131 December 20132013 1717 049049 4848 657657 6570565 706 U 14.14. IntangIbleIntangibleasseta assets AlAt 3131 December 2013 and 2012, virtually methe entireentire balancebalance of intangible°Intangibleassets’ assets" InIn thethe consolidatedconsolidated balancebalance sheetsheet relates to computercomputar software usingusing Inin Ihethe course of business by theme companiescompanies ofof theme UnicajaUnicaja Banco Group.Group. MovementsMovementsIn Inintangible Intangibleassets* assets" ininthe the consolldatedconsolidatedbalance balance sheetsheet dudngduring thethe peñodsperiods endedended 31 December 20132013 andand 2012 are as follows:follows: O TbousandsThousands ofof euroseuros AccumulatedAccumulated Net book CostCost depruclationdepreciation valuevalue U Balance atat DocemberDecember 31,31, 20112011 1985019 860 (15642)(15 642) 42084 208 HlghHighcasi cost // depreclatlondepreciation 239239 (( 11 004)004) (( 765)765) LowLowcosi! cost /depreciation depreciation ( 428)428) 402402 (( 26)26) y OtherOther movementsmovements ( 255)255) (( 57)57) 1( 312)312) U Balance alat DecamberDecember 31,31, 20122012 1940619 406 (16301)(16 3011 31053 106 HlghHighcostl cost / depreclationdepreciation 11 798798 (ion)( 1 077) 721721 LowLowcost cost¡ / depredatlondepreciation ( 383)383) 375375 (( 8)8) U OllierOther movementsmovements ( 129)129) ( 129) Balance atat DocemberDecember 31,31, 20132013 2082120 821 (17(17 132)132) 36893 689 uAmortization U. TheThe amount recognized inIi methe consolidatedconsoildated income statement itemitem "Amortization- - IntangibleIntangibleassets’ assets" totalstotals €€ 10771,077 thousandthousand at3lat 31 December 20132013 (€1004(€1,004 thousand at3lat 31 December 2012).2012). { FuIly-amortizedFully-amortizedIntangible Intangibleassets assetsstill stillin inuse useat at31 31December December2013 2013and and2012 2012amount amountto to€ €14,00314003 thousand thousand andand U €€13,54513545 thousand, respectively. NetNet paymentspayments recordedrecorded Inin thethe statementstatement of consoildatedconsolidated cashcash flows forfor thethe yearyear 2013 brfor Intangibleintangibleassets assets recordedrecorded underunder misthis headingheading amountedamounted toto €€1,6611,661 thousand (net(net receiptsreceipts ofof €98E 98 thousandthousand in 2012).2012). U 8383 H U U ib-; Ti 15. OtherOther assets a) Non-current assets for sale rl Set out belowbe!ow Isis a breakdown of the itemltem "Non-currentNon-current asseftassets for sale,sale°, whchwhich Includesincludes thethe carrylngcarrying amount of U assetsasseis thaithat do notnot formfomi partpan ofof theffie Bank'sBanks operatingoperang activitiesactihes andand theme carryingcanying amountamount of whichwhlch willwill foreseeably bebe recovered throughthrough ffiethe flnsrtransfer price.price. TheseThese assetsassets amountamountto to €€ 263,918 thousandthousand atat 31 f December 2013 (E(€293554 293,554 at 31 DemberDecember 2012). The Group has estimated methe fafrfair value of theseffiese assetsassets basedbased uponupon theme valuevalue obtainedobtained in anan updatedupdated valuation, in lineUne with the content of OM/80512003,0W80512003, byby aa valuersvaluers authorized by ffiethe Bank of Spain. Set out below is aa breakdownbreakdown of non-currentnon-curmnt assets classified by purpose at ffiethe end of theme years 2013 and U 2012: flousandsThousands of euros 2013 2012 Equity Instrumentslnstruments 42 1 648846 1 ResidentialResldential assets 181 582 173 760 Finished PropertiesProperiles 41 398 5856 723123 DwellingDvIllng 1212442 442 2828873 873 f RestResI 28 956958 27 850 Properties underunderconstruction construction 1515119 119 1010409 409 DwellingDweiUng 1414279 279 99785 785 Rest 840 624824 U SoilsSolIs 25257V TT7 5050814 814 263263918 918 293293554 554 Net gains recognizedrecognized in thethe 20132013 consolidatedconsoildated statementstatement of recognizedrecognized income and expenses on equityequity instrumentsinstmmenffi classedclassed asas non-currentnon-currentassets assetsfor for salesale totaltotal €€ 730730 thousandthousand (net(net losseslosses ofof €€ 982 thousandthousand inin 2012). U U E U 84 L U E U 1 ti SetSet out below isis methe recondiliahonreconciliationbetween betweenme theopening openingand and dosingclosingbalances balances ofoftangible tangibleassets assets included inin thethe consolidatedconsolidated balancebalance sheet itemítem "Non-currentNon-current asseftassets forfor sale"sale’ (excluding(excludlng equityequlty instruments) terfor 20132013 and 2012:2012: ThousandsThousands ofof euroseuros U TangibleTangible anaassets ValueValue adjusünentzadjustments awardedawarded forfor lmpainnentimpairment NetNet bookbook valuovalue f ! U BalancesBalances atat D.cember3l,December 31, 20112011 233233 832832 (29(29 828)828) 204204 004004 AddltionsAdditionster forthe theyear year 218037218 037 (10046)(10 046) 207991207 991 DisposalsDisposals andand othertransfersother transfers (( 6060336) 336) 1342813 426 (( 4646910) 910) AllocatedAllocated tuto incomeincome (Note(Note 43)43) (( 66 907)907) (25(25 243)243) (( 32 150) TransfersTransfers loto Inventories (Note 1.1.3)1.1.3) (( 3030769) 769) 62286 228 (( 2424541) 541) Transfers to Investment property 18970) E Transfers to Investment property (( 18 970) - (( 1818970) 970) OtherOther movementsmovements 21282 128 154 22822 282 U Balances atat DecamberDecember 31, 20122012 337015337 015 (45309)(45 309) 291291 706706 AddltionsAdditionsfor forthe theyear year 126130126 130 (( 7601) 118529118 529 DisposalsDisposals andand otherother transferstransfers (( 70729)70 729) 1424014 240 (( 5658469) 489) klocatedAllocated tuto IncomeIncome (Note(Note 43)43) (( 33 334)334) (10(10401)401) (( 13 735) TransfersTransfers tuto inventariesInventories (Note 1.1,3)1.1.3) (( 8383331) 331) 63398 339 (( 7474992) 992) 42 Transfers to investment property Transfers to Investment property (( 6708)6 708) - (( 6708)6 708) OtherOther mavementsmovements 48624 882 683683 55655 565 Balances atat December 31,31, 20132013 303303 925925 (40(40 049)049) 263263 876876 DuhngDuring2013 2013 andand 20122012 no significantsigniflcant collectlonscollectionsor or paymentspayments werewere reflected fr,In Ihethe consolidated cash flowfiow rl statementstatement in respectrespect ufof non-curreninon-currentasseft assets for sale.sale. Li lmpairmentImpairmentlosses losses recagnizedrecognizedin inme theconsolidated consolidatedincome incomestatement statementin in2013 2013and and2012 2012un on non-currentnon-currentassete assets forfor salesale total € 10,40110,401 thousandthousand and €€ 25,24325,243 thousand,mousand, respectively;respectively; meythey are recognizedrecognized Inin theIhe itemibm ‘Gains/Qosses)“Gainsglosses) on non-current assetsassets forfor sale notnot classified as discontinueddiscontinued operations"operations’ (Note 43).43). U AlIAllthe the‘Non-current "Non-currentassets assetsfor forsale’ sale"in Inthe theconsolidated consolidatedbalance balancesheet sheet werewere receivedreceived byby methe Bank oror byby otherother consolidatedconsolidated companies for methe fullfulI oror partialpartial seftementsettlement of debtordebtor obligatlons.obligations. Unicaja Banco Group applies market temis in buyer flnancing granted purchase of properUes. TheThe Unicaja Banco Group applies market terms in buyer financing granted terfor methe purchase of properties. LoansLoans grantedgranted in 20132013 for initialinitialflnancing financingtotal total€ €6,062 6,062mousand. thousand.At At31 31December December2013, 2013,galns gainson onmese these loansloans pendingpending recognitionrecognition amountto€amount to € 11,30811,308 mousand.thousand. U Valuation companies TIteThe main valuafionvaluationcompany companythat thatissues issues reporisreports enon methe Unicaja Banco Group’sGroup's asseteassets Is TasacionesTasaciones Inmobiliarias,Inmobiliarias,SA. S.A.(Tinsa). (Tina).The The folIowingfollowingcompanies companiesalso alsoissue issuevaluation valuationmports reportson onme the GroupsGroup's assets:assets: SociedadSociedad de Tasacion,Tasación, S.A.SA. (Sotasa), UVEUVE Valoraciones, SA.,S.A., TécnicosTecnicos dede Tasación,Tasacion, SA.S.A. (Tecnitasa)(Tecnitasa) andand U Lurovaloraciones,Eurovaloraclones, SA.S.A. (Euroval). TheThe Unicaja BancoBanco GroupGroup hashas a procedure forter selecting valuation companlescompanies malthat restrictarestricts asslgnmentsassignments tuto (1 appraisalsappraisals that are performed solely through electronicelectronic meansmeans by valuation companies with anan intemalinternal codecode ofof U conductconduct that compliescomplies withwith applicableappllcable legislation,legislation, among otherother requirements.requirements. Pre-authorizedPre-aumorized valuationvaluation companiescompanies areare selectedselected at random. ¶1 InIngeneral, general, ffiethe appmlsalsappraisals used by methe Unicaja Banco Group,Group, boifibothfor forproperfies propertiessecuñng securingloans loansand andter forasseft assets thatthat are repossessedrepossessed oror receivedrecelved asas paymentpayment forTer debts,debts, mustmust bebe performedperformed byby aa valuationvaluation companycompany U authoñzedauthorized byby titethe Bank ofof SpainSpain andand in accordanceaccordance with the requirements of Order ECO/805/2003ECQ/805/2003 (27 March). U 8585 u Li Li b) OtherOther assetsassets AA breakdown of methe balancesbalances in thisthis cansokdatedconsolidated balancebalance sheetsheet captioncaption atat 3131 DecemberDecember 20132013 andand 20122012 i is setset El outout below: ThousandsThousands ofof euroseuros 20132013 20122012 ¡3 InventarIesInventories 673673 671671 635635 194194 OtherOther 2924329 243 8080 185185 702914702 914 115379715 379 U AtAt 31 December 2013 and 2012, thethe consolidated balance sheetsheet item Other"Other" relatesrelates baslcallybasically toto prepaymentsprepayments andand accmedaccrued Income.income. TheThe consolidated balancebalance sheetsheet Ítemitem 9nventoñeC'Inventories" includesincludes non-financialnon-financialasseft assetsthat thatare are heldheld brfor salesale byby thethe cansolidatedconsolidatedentities entitiesin Inffie the ordinaryordinary coursecourse ofof buslness,business, areare beingbeing produced,produced, builtbuilt oror developed brfor that purpose,purpose, oror are expected teto be consumedconsumed in theme productionpraduction process oror in theffie provisionpravision ofof services.seMces. Cansequentiy,Consequently, landland andand otherother propertiesproperties heidheld forfor salesale oror brfor inclusioninclusion inin aa housinghousing development,development, areare treatedtreated asas inventories.inventories. InventariesInventories areare carriedcarried atat ffiethe lowerlower ofof cost, whichwhich Includes ahall outiaysoutlays teto acquireacquire andand transformtransform thethe inventohes,inventories, dlrectdirect oror indirect castscosts incurred toto bñngbring them to theirmeir current condition and location, and directly attributable fi financlalfinancial costa,costs, providedprovided moremore manthan oneone yearyear mustmust elapseelapse befarebefore theythey areare sold,sold, and net realisable value.value. TheThe net realisable valuevalue cfof inventodesinventories isis the estimated selhingselling pilcaprice in ffiethe ordinary course of businessbusiness less estimatedestimated costacosts tobeto be incurredincurred toto completecomplete methe production and salesale of methe inventaries.Inventories. lnIn accordance withwith paragraph 22 of IASlAS 3636 Inventories",inventoñesTM, bothboU, decreasesdecreases and,and, ifif applicable,appllcable, subsequentsubsequent recoverlesrecoveries ofof thethe net realisablereahisable value of inventoriesinventories below theirtheir carrying amount areare recognized Inin the consolidatedconsolidated IncomeIncomestatement statementIn Inthe the pedodperiodin in whlchwhich theythey occur,occur, inIn thethe item °Impairmentlmpairment loaseslosses onon other assetsassets (net) -- Other assets”.assets". AA breakdown byby companycompany ofof methe asset Ítemitem "OtherOffier assets -- InventoñesInventories" onon ethe consolidatedconsolidated balancebalance sheetsheet atat 3131 December 20132013 and 20122012 is asas hllows:follows: TbousandsThousands of DurosDuras U 20132013 20122012 UnicajaUnicaja Banco,Banco,SA.U. S.A.U. -- 37723 772 r4 UnIc-asUnic-as PromocionesPromociones InmobilIarias,Mmobiliarias,SL.U. S.L.U. 2370523 705 1490814 908 1 InmobIliarIaInmobIllana Adnlpo,Acinipo, S.L.U.S.L.U. 10 961961 88668 868 U GesilónGesllon dede Inmuebles AdquiridosAdquindosS.L.U. S.L.U. 634634 277277 587587 936936 Unicaja GestiónGaston de Activos lrwnobüiados,Inmobillados,SAU. S.A.U. 11 526526 11 526526 Promotora Guadalnervión,Guadalnervion,S.LU. S.L.U. 29272 927 75137 513 fl OtherOther enHilesentitles 275275 1067310 673 U 673671673 671 635194635 194 u 13 ¡3 8686 u ti 1) ti oo WithWithrespect respect toto methe review ofof appraisalappraisal quahty,quality,ifie the UnicajaUnicajaBanco BancoGmup Grouphas haspmcedures procedures inin placeplace toto reviewreviewthe the appralsalappraisal repoft,report, particularlyin inrelation relationte tothe thedetermining determiningfactors; factors;if ifmere thereare aredoubts doubts asas loto thethe appraisedappralsed valuevalue and/orand/or determiningdeterminlng factors, It is comparedcompared with values recentlyrecenUy obtained for 1? propertiesproperties thatthat areare similar and/or and/or lninthe the samesame zone. InternalIntemal controlscontrols areare alsoalso Inin place to review thethe U cansistencyconsistency andand adequacy of the valuations performed byby eacheach valuers.valuers. o• lnIn theme professionalprofessional relationshipsrelationships withwith valuationvaluationcompanies, companies,in In arderorder loto safeguardsafeguard valuervaluer 17 independenceindependence and avoid confflctsconflictsof ofinterest, interest,ffie theGwup Grouphas hasput putin inplace placeadequate adequate mechanismsmechanisms andand barfiersbarriers loto preclude methe possibility ofof meirtheir actMtiesactivitiesbeing beinginfluenced, influenced,for forpurposes purposes unrelatedunrelated toto thethe U assuranceassurance ofof valuationvaluation quality, byby thethe Bank’sBank's operatingoperating units oror subsidlaries.subsidiaries. oo AsAs regardsregards the frequency of appmlsalappraisal reviews, pursuantpursuant to prevallingprevailingleglslatlon, legislation,the thevalues valuesof ofassets assets securingsecuring mortgagemortgage laansloans (st(at mlnimum,minimum,asseft assets securingsecuring loansloans classedclassed as doubtfuldoubtful or substandard), repossessedrepossessed asseftassets and assets receivedreceived asas paymentpayment for debts are revisedrevised every mreethree yearsyears alat minimum,minimum,depending dependingon onme thestatus statusof ofthe theloan loanand andme theasset asset type, oo ForFor appraisals that needneed notnot fulfilfulfil the requirementsrequiremenis ofof AnnexAnnex IXIX of CircularCircular 4/2004, the CreditCredit CommitteeCommittee jais responsibleresponsible forfor establlshingestablishing aa procedure that can combinecombIne bothbath valuationsvaluatlons performed underunder Order ECO 805/2003 without visWngvisitingthe the InteriorInteriorof ofthe theproperty propertyand and methe estimation ofof the appralsedappraised value usinguslng statistical or otherother memodsmethods permitted by regulations.regulations. U Finally,Finally,al at31 31 DecemberDecember 20132013 andand 20122012 methe Unicaja Banco GmupGroup records no inventoriesinventaries in methe consolidated balancebalance sheetsheet matarethat are pledged toto securesecure methe settiementsettlement of debts.debts. 16.16. FlnanclalFinancial llablilUesliabilities atamortizedat amortized costcost 16,116.1 DepositsDeposits fromfrom CentralCentral Banks U AA bmakdownbreakdown ofofmis thisconsolidated consolidatedbalance balancesheet sheet heading stat 31 December 2013 and 2012 Issas as follows:follows: ThouuandsThousands ofof BUFOSeuros ri 20132013 20122012 CentralCentral BankBank ofof SpaInSpain 44 500500 000000 88 000000 000000 MeasurementMeasurement adjustments -Aconied- Accrued InternetInterest 6204562 045 1768817 688 45620454 562 045 60176886 017 688 U ‘[heThe interestinterest acoruedaccrued duringduringthe theyeam years2013 2013and and2012 2012for formese thesedeposits depositshave havebeen been ofof€33625 €33,625 thousandthousand and €49309€49,309 thousand,thousand, respectively, andand are includedIncluded in "InterestInterest and similar charges”charges" in thethe consolidated income statementstatement (Note 32). 16,216.2 DepositsDeposite fromfrom creditcreditinstitutions institutions SetSet out below Is aa breakdown byby naturanature ofof transactionstransactions ofof methe consolidatedconsolidatedbalances balances inin thlsthis balancebalance sheetsheet U captioncaption atat 3131 DecemberDecember 20132013 andand 2012:2012: ThausandsThousands ofof eurossums 20132013 20122012 U TeinTerm deposItedeposits 159169 604504 155 423423 lnvestmentsInvestments 150000150 000 150000150 000 - AsaetaAssets soidsold underunder repumhaserepurchase agreementsagreements 11 376376 609609 546546 936936 1) OtheraocountsOther accounts 156517156 517 175380175 380 U MeasurementMeasurement adjustmentsadjustments 5 784784 22 889 1 858858 514514 1 030030 628628 II 8888 T•1 u ue E. 1) Fixed-termFixed-temi depositsdeposhs include unique mortgage bonds Issuedissued in¡n accordanceacwrdance with theme provisionspmvisions ofof LawLaw 211981211981 (25 March) on thethe mortgagernortgage marketrnarket and aa territorialterritorial bondbond issuedissued inin accordanceaccordance with LawLaw 44/200244/2002 (22(22 November), as detailed below: Thousands of eurosauras Li Nominal amount Issuelssue date Maturity date Interestlntemst raterato 2013 2012 11/03/2003 11/03/2013 (c) 4.007%4.007% - 250000250 000 02112/2003 02/12/2003 02/12/2013 (c)(o) 4.507%4.507% - 77427 742 02/12/200302112/2003 02/121201802/12/2018 (a) 4.757% 1616258 258 1616258 258 19/11/200319)11/2003 22/11/201322111/2013 (c)(o) 4.509%4.509% - 200 000 04/12/2003 04/12/2015 EurlborEudbor 3 months + 0.13% 100100000 000 100 000 25/02/2004 01/03/201601103/2016 (a) 4.385%4.365% 250 000 250 000 u 05/04/2004 05/04/201405)04/2014 (c)(o) 4.005% 250 000 250 000 05/04/2004 05)04/2014 (c) 4.005% 5000050 000 50 000 e 16/11/2004 16/11/2014 (c) 4.007%4.007% 146 341 146 341 16/11/2004 16/11/2014 (c) 4.007%4,007% 21 951 21 951 U 16/11/2004 16/11/201916111/2019 (a) 4.257% 5365953 659 5365953 659 16/11/2004 16/11/2019 (a) 4.257% 80498 049 80496 049 24/11/2004 27/11/2019 (c) 4.125%4.125% 200000200 000 200 000 29/03/200529/0312005 29/03/2015 (c) 3.753% 141 667 141 667 29/03/2005 29/03/2020 (a) 4.003%4.003% 58 333 58 333 u 18/05/2005 21)05/202521/05/2025 (a) 3.875% 200 000 200 000 15/06/2005 20/06/2017 (a) 3.500%3.500% 150150000 000 150 000 28/06/2005 28/06/202528/0612025 (a) 3.754% 76 923 76 923 ( 28/06/2005 28/06/2015 EuriborBuribor 3 months + 0.08% 73 077 73 077 U 16/11/2005 21/05/2025 (a) 3,875%3.875% 200 000 200 000 12/12/200512112/2005 12/03/2016 (a) 3.503% 7407474 074 7407474 074 12/12/200512/12)2005 12/12/2022 (a) 3.754%3.754% 51 852 51 852 ít 20/021200620/02/2006 20/02)201820/02/2018 EuriborEuñbar 3 monthsmonUis + 0.12% 9090000 000 9090000 000 10/03/2006 12/03/201612/0312016 (a) 3.503% 40 000 4000040 000 U 22/03/200622/03/2008 22/03/2021 (a) 4.005%4.005% 100 000 100 000 06/04/2006 08/04/2021 (a) 4.125% 200000200 000 200000200 000 25/05/2006 06/04/2016 (b) EurlborEudbor 3 rnonthsmonths + 0.06% 250 000 250 000 26/05/2006 24/05/2017 EurlborEudbor 3 months + 0.09% 100100000 000 100 000 09/06/2006 12/06/201812106/2018 (a) 4.255% 100 000 100100000 000 U 19/10/200619/1012006 21110/201821/10/2018 (a) 4,000%4.000% 300000300 000 300 000 23/10/2006 24/051201724/05/2017 EuriborEurlbvr3months.0.Og% 3 months + 0.09% 100100000 000 100100000 000 23/10/200623/1012006 23110/202323/10/2023 (c) 4.254% 200 000 200 000 16/03/200716/0312007 19/03/201719/03)2017 (a) 4.004%4.004% 200200000 000 200000200 000 23103/200723/03/2007 26/03/202726/0312027 (d) 4.250% 150 000 150 000 20/04/2007 08/04/202108/0412021 (a) 4.125% 200 000 200 000 23/05/2007 22)05/201922/05/2019 EurlborEuñbor 3 months + 0,09%0.09% 200 000 200 000 23/05/2007 23/05/2027 (a) 4.755%4.755% 50 000 50 000 23/05/2007 23/05/2027 (a) 4,755%4.755% 50 000 50 000 29/061200729/06/2007 08/04/2031 (a) 4.250% 400 000 400 000 25/07/2007 18/12/2016 (a) 4.005% 300 000 300 000 19/10/2007 21/10/2017 Euribor 3 months + 0.17% 250 000 250 000 19/10/2007 08/04/2021 4.125% 6000060 000 6000060 000 19/10/200719)1012007 26)03(202726/03/2027 4.250% 110110000 000 110110000 000 19/10/2007 08/041203108/04/2031 4.250% 180 000 180 000 05/12)200705/12/2007 20/02/2018 EuriborEuñbor 3 months + 0.13% 145145000 000 145 000 10/04/2008 10/04/2048 (a) 5.280% 22 000 2200022 000 59191845 919 184 63769266 376 920 (a) The fixed interest taterate borne by theiba EntityEnt]ty has beenbeen convertedconverted to a variablevariable ratevate byby contractingoontracvng swapsSW8S Qnon theibe nominal amount.amourt U (b) Issuelssue bearingbeadng interestnterest divided mioInto twotwo tranches,trenches, cornmencingcommencingwith with aa fizadfixed vaterate ofof 2.891%2.891% toSto 8 JulyJuly 2006:2006; thethe raterata thenthen changes toto thethe 3-rnonth3-month EuñborEuribor + 0.08.0.06. (c)(o) ThaThe fixed raterata supported by ibathe Bank has beenbeen made variable by financial swapsSWB5 onQn the nominal amount. These 11 swaps were canoeledcanceled dudngduring 2012. u 90 ‘fi U r L‘ 1’’ L Fi (d)(d) ThaThe fizadfixed lnterestInterest raterate paldpaid by the Bank has beenbeen convertedconverted to a variablevariable raterata byby contractingcontracting financialfinancial swaps coveñngcovering thethe nominalnominal value.value. TheThe swapswap waswas cancelledcancelled dudngduring 2013.2013. 16.4 MarketableMarketable debtdebtsecuñües securities AA breakdownbreakdown ofof ffilsthis consoNdatedconsolidated balancebalance sheetsheet heading atat 3131 December 20132013 andand 20122012 isis asas llows:follows: TbousandsThousands ofof euroseuros U 20132013 20122012 PromlssoryPromissory notasnotes and bilIsbills 8942789 427 557557 268268 Mortgage securltiessecurities 26296632 629 663 27802132 780 213 OtherOther non-convertiblenon-convertible securitiessecurities 1 450450 000000 11 450450 000000 OwnOwn securitiessecurities (1(1 737737 578)578) (1(1 778778 659)859) Measurement adjustments -- AccnedAccrued lnterestInterest 7272 134134 113479113 479 25036462 503 646 31221013 122 101 16.4.1 Promissory notes and bilisbills fi DudngDuring thethe years 20132013 and 2012 hayohave been in place four programs of notes, with the following Reykey L featuresfeatures andand balances forthefor the end:end: ThousandsThousands ofof euroseuros NominalNominal amountamount t subscflbedsubscribed U Nominal amountamount ofof MatudtyMaturity datedate issueIssue 20132013 20122012 Li First commerclalcommercial paperpaper program UnicajaUnicaja VariableVariable {1ta 1 500500 000000 9393 506506 575575 919919 9350693 506 575919675 919 1•? (2ThefliThe notesnotes werewere issuedIssued atat anyany time from one week teto elghteeneighteen months,months. TheThe ‘First"First Notes Programme ofof Unicaja Banco"Banc& was registered with the Spanish NationalNabonal SecuritiesSecudUes Market Commission (CNMV) InIn MarchMarch 2012,2012, targehngtargeting ffiethe generalgeneral public, including retail and qualifledqualified investors,investors, consistingconsistingof of notesnoteswith witha a nominalnominalvalue valueof of€ € 1,0001,000 upup toto aa maximum sumsum ofof €€ 1.5 billion, extendableextendable toto €€ 3 billion de euros. feThe progmmmeprogramme had a one-year temiterm as from registration withwith ifiethe CNMV andand is no longer in forceforce atat 3131 December 2013,2013, although therethere are unmatured notes. lnterestInterest accruedaccrued duñngduring 20132013 forfor such securities have been €12955€12,955 thousand (€25636(€25,636 thousandthousand inin 2012),2012), andand are includedIncluded in "Interest“interest expense and similar charge?charges” InIn thethe consolidatedconsolidated incomeIncome statementstatement (Note(Note 32).32). 1 • feThe averageaverage effecfiveeffective intarestinterest raterate onon ffiethe debt instrumentsInstruments classifiedclassified inin thisthis headingheading atat 3131 December ‘-e 20132013 waswas 3.71% (3.62%(3.62% atat 3131 DecemberDecember 2012).2012). u U 9191 The movements of the account of promissory notes and offierother securWessecurities ¡nin 2013 and 20122012 amare as follows:follows: Thousands ofof euroseuros 20132013 20122012 OpenlngOpening nominalnominal balance 575575 919919 282282 040 lssuesIssues 2929 072072 1 536536 663663 Redemption (511(511 485)485) (1(1 242242 784)784) CloslngClosing nominal balancebalance 9350693 506 575575 919919 Prepaid intemstinterest ( 4079)4 079) ( 18 551)651) CloslngClosing balance 8942789 427 557567 268268 MIAll Viesethese financialfinancial insfrumentsInstruments areare denominateddenominated Inin euros.euros. TheThe Issueissue prospectuses, preparedprepared inin accordance withwith Circular 2/19992/1999 fromfrom Viethe SpanishSpanish NationalNational SecuhtiesSecurities MarketMarket CommisslonCommission (CNMV), wemwere offlciallyofficially registered by Viethe CNMV. 16.4.2 Mortgage securitiessecurities detalldetail ofof thethe mortgage bonds issued at December3l,December 31, 20132013 andand 2012 isasis as follows:follows: lasueIssue Balance stat Balance .tat MaturltyMaturity lasueIssue ISIN!SIN vadecode IsatisIssue datedata lnterestInterest ratarate amount 31/12/13 31/12/12 date EuñborEuribor Orn8m ++ Ial lasue Unleaja ES04648720I 26/03/2008 1st Issue Unicaja ES04648720111 26/03/2008 5000050 000 - 50so 000coo 26/031201326/03/2013 025%0.25% 6016th ¡SSLICIssue UnlcajaUnicaja E50464572052ES0464872052 24(071200924/07/2009 5050 000000 4g49 so950 24(01(201324/01/2013 3320%3,320% 70i7th musIssue Unicaja E50464872080E50464872060 05110/200905/10/2009 1 000000 000000 994994 489489 994994 503503 05110/201405/10/2014 3125%3.125% EuribaEuriborOrn 6m ++ 61k6th lausIssue UntajaUnicaja E50484672078ES0464872078 17/12/200917/1212009 7000070 000 7000070 000 7070 000000 17/121201717/12/2017 089%0.69% EudborEuribor Orn6m ++ 9019th lausIssue UnjaUnicaja ES0464872086ES0454672086 17/12/2009 3000030 000 za30 ooa000 3000030 000 17/121202117/12/2021 0.75%0.75% 10111 laus E60464672094 10th Issue UnlcajaUnicaja ES0464872094 27/01/201027/01/2010 5000050 000 - 5000050 000 221091201327/0912013 2.875%2.575% 11k1th IsatisIssue UnljaUnicaja E30455759000ES0458759000 14/10/201014/10/2010 750750 000 744744 207207 745745 217217 14/10/201514/10/2015 4.375%4075% Eudbor6m+Euribor 6m + 2nd2nd IsatisIssue Unicaja E50458759016ES0458759018 22/11/201022/11/2010 7000070 000 7000070 000 7000070 000 22111/201822/11/2018 2.00%2,00% EuñborEuribor Orn6m ++ 3id3rd lausIssue UnlcajaUnicaja E50456759026E50456759025 22111/201022/11/2010 3000030 000 3000030 000 3000030 000 22/11/202222/11/2022 2.00%2.00% 4014th lausIssue Unicaja ES0456759034 23/03/201123/03/2011 500000500 000 490490 967967 490490 533533 23/03/201523/03/2016 5500%5.500% EudborEuribor 3m3m ++ lstlet Issuelisue Unicaja E80480907015ES0480907015 21/121201221/12/2012 200200 000000 200200 000000 200200 000000 21/121202021/12/2020 4.40%4.40% 26296632 629 663 27802132 780 213 TheseThese Issuesssues areare admiftedadmitted forfor negotiation onon thethe fixedfixed incomeincome marketmarket AIAF,AIAF, andand are guaranteed by a mortgage onon ahall thosethose thatthat atat anyany timetime are registered inin favourfavour ofof thethe issuing entityentity andand areare notnot subjectsubject toto thethe issueissue ofof mortgagemortgage bonds,bonds, inin additionaddition toto Viethe overailoverall equityequity hlabllityliability forfor these.these. lnterestInterest yieldyield fromfrom Ihethe date of issueissue ofof thesethese bondsbonds atat 3131 DecemberDecember 20132013 amountedamounted to €83,546€83546 Ihousandthousand (€89415(€89,415 thousandthousand atat 3131 December 2012),2012), andand included inin "Interest“lnterest expense and similar charges”charges" ofof Viethe consolidatedconsolidated incomeincome statementstatement (Note(Note 32).32). TheThe average effectÑeeffective interest rate forfor Viesethese debtdebt instrumentsinstruments atat 3131 December 20132013 is 3.42%3.42% (3,43%(3.43% atat 3131 December 2012).2012). 92 16.4.316.4.3 OtherOther non-convertiblenon-convertible securitiessecuñties Other non-convertiblenon-convertible securitiessecuñties at 31 December 2013 and 2012 relates to the outstanding balance of the Group'sGroup’s bondbond andand debenturedebenture Issues.lssues. SetSet outout belowbelow isis anan analysisanalysis ofof outstandingoutstanding bondbond andand debenturedebenture issuesissues at 3131 DecemberDecember 20132013 andand 2012: ThousandsThausands of auras‘urna 2013 NominalNomlnai MaturityMatiflty datadate IssueItaLia ISINSIN codecoda IssueI... date amount OutstandingOutat.p4P!fl Interestint.rnt raterata of Issuemiii TerritorialTaffitoñal bondshonda Unicajaunicaja E50480907007ES0460907007 27/03/201227/03/2012 700 000000 700 000000 4,203% 27/031201727/03/2017 BancoBanco 1stIal IssueIstue GuaranteedGuarantaed UnicajaUnicajaBanco 82=0 E50380907008E50360907006 23105/201223/0512012 300 000 300 000000 6,250%6.250% 23/05/201723/05/2017 BondsBanda 1stial Issuelasue Guaranteed UnlasjaUnicaja BancoBanco ES0380907016ES0380907016 20106/201220/06/2012 300 000 300 000000 6.900%6.900% 20/06/2017 BondsBanda 2nd Issuelasue GuaranteedGuaranteod UnicajaUnicaja BancoBanco ES0380907024ES0360907024 20/06/201220/06/2012 150 000 150150 000 6.150%6.150% 20/06/2015 BandsBonda 3rd31d issueIssue 150 000 11460000 450 000 11460000 450 GOO Thousandsthoiaands of auraseuros 2012 Nominal MaturtItyMatirltyf dauteedates Issueseuo ISINISiNcode coda IssueI.suedate date amountamount OutstandingOutatndlnp InterestInterutrata rate of IssueItalia Territorial bondsbanda Unicaja ES0460907007ES 046 0907007 27/03/201227/03/2012 700 000000 700 000000 4,203%4,203% 27/03/201727/03/20 17 BancoBanco 1st15t Issuelasue GuaranteedGuarantaed UnIcajeUnicaja Banco ES0380907008ES0380907008 23/05/201223/05/20 12 300300 000 300300 000 8,250%6,250% 23/05/201723/05120 17 BondsBanda 1stlst Issue GuaranteedGuarantaed Unicaja Banco ES0380907016E50380907016 20/06/201220/06/20 12 300300 000 300 000 6,900%6,900% 20/06/2017 BondsBonda 2nd IssueInue GuaranteedGunnteed UnicalaUnicaja Banco ES0380907024ES0380907024 20/06/201220/06/2012 150150000 000 150150000 000 6,150%6,150% 20/061201520/06/2015 BondsBonds 3rd issueItaLia 11460000 450 000 11460000 450 000 InterestInterest accruedaccmed onon theme bondsbonds duringdudng 20132013 totaledtotaled €5,021€5021 thousandthousand (€21,749(€21749 thousand inin 2012) andand IsIs includedincluded inin thethe consolidatedconsolidated incomeIncome statementstatement itemitem "Interestlnterest expenses andand similarsimilar charges"chargeC (Note(Note 32).32). The averageaverage effectiveeffective interest raterete on the debtdebt Instrumentslnstruments classifiedclasaified in thisthls headingheading at 3131 DecemberDecember 2013 was 0.35%0.35% (1.53%(1.53% atat3l 31 December 2012). AllAh these financialfinanclal instrumentsinstwmenft areare denominated inIn euros.euros. 9393 16.5 SubordinatedSubordinated liabilitiesliabilWes Set out below 19is a breakdown of the balances andand mainmain featuresfeatures ofof subordinatedsubordinated liabilitiesllabilities in the consolidated balance sheet atst 3131 DecemberDecember 2013 and 2012, consistingconslsting of thethe GroupsGroup's issueissue of subordinatedsubordinated debt:debt Euros Thounndsaf.umsThousands of gurus No. of Nominal BalancaBalance itat Baianc.Balance at Nominal IsweIssue ncuñflnsecurities amcuntamount 31/12113 31/12112 InterntntaInterest rate MawrttyMaturity TwelftbTwelfth -. 300 - 5113651 136 flintorost(")Interest ratorate ECSC + 05%0.5% 15/091201318/09/2013 Thirteenth 96 861 300 2905829 058 5071150 711 fllntarestC}Interest iterate ECSC .05%+ 0.5% 01/07/2014 FoufteonmFourteenth 6252362 523 300 1818757 757 31 904 (‘)lntetest(')Interest ratorate ECSCECSc + 0,5%0.5% 011071201401/07/2014 Fifleenu,Fifteenth 108106 161 300 31 849 5535755 357 EudborEuribor 1212 mcnthsmonths + 015%0.15% 26107/201526/07/2015 CajaCele JaénJaen FirstFlrat losueIssue 31023 102 600600 1 861 34873 487 EuhbcrEuribor 66 monthamonths ++ 025%0.25% 201121201420/12/2014 Caja JaénJean Second iaaueIssue 13901 390 10001 000 1 390 31473 147 EuñborEuribor 66 mantuamonths + 0,30%0.30% 15/121201515/12/2015 Singular cae caseJaso leen subordinstedsubordinated obligationobflgabon 1 80000008 000 000 79447 944 79447 944 EuñborEuribor 33 monthsmonths ++ 0,5575%0.8575% 06111(201608/1112016 ValuaüonValuationedjusbnents adjustments -- AcornadAccrued intarestInterest 120 706708 90 9T9919 204 392392 ()(*) SlnceSince September 2012 ceased thethe publicationpublicatlon of thehe differential,dlfferentiai, maklngmakingIt itlake take effecteffect thethe temisterms of the respectiverespective prospectusesprospectuses lotfor such clrcumstancescircumstances continue to apply hethe lnterestinterest typetype replacementreplacement. These are repaidrepaid atst parpar atst maturity.matuñty. AllAH emisslonsemissions areare targeted at retailretaN investors,investois, except for thethe issue called TMsingular"singular casecase Jaen subordinatedsubordinated obligation",obligaflon”, which is assignedasslgned toto subordinatedsubordinated debtdebt 11 AyTAyT background and it is addressed toto qualifiedqualifled investors. AhAll subordinatedsubordinated debtdebt issues areare behindbehind thethe Institution'slnstitutions commoncomman creditorscreditors inin termstemis ofof creditorcreditor priority.pñoñty. Subordinated debtsdebts are classedclassed asas computablecomputable forfor thelbs purposespurposes ofof thethe institution'sInstitution’s minimumminlmum equityequlty ratio;rabo; alffioughalthough amountsamounts exceeding ffiethe percentages ofof tier-1Uer-1 capitalcapital referredrefered to inin ArticleArbole 23.2 of RoyalRoyal Decree 1343/19921343/1992(6 (6 November) may not be includedincluded inin the calculation of equity. lnterestInterest on subordinated debt financing recognizedrecognized Inin hethe consohidatedconsolidated incomeincome statementstatement amounted to €2,671 thousandthousand inIn 2013 (€5,390(€5390 thousand inin 2012) (Note(Note 32). The average effective Interestinterest reterate on the debt instrumentsinstrumente classifiedclassifled in thisthis captioncaption atat 3131 DecemberDecember 20132013 waswas 1.66% (2.47% stat 31 December 2012). Net paymentepayments recorded in financing actvitiesactivities ofofhe the cashcash flow statement statement ConsahidatedConsolidated 2013 on subordinated llabihitiesliabilitiesrecorded recordedunder undertbis thisheading heading amountedamounted teto €€ 113413113,413 Uiousandthousand (net receiptsreceipis of €E 2892128,921 ttiousandthousand in 2012). 94 16.6 OtherOmar financialfinancial liabilitiesIlabilities This balance IriIn methe balance sheets atat 3131 DecemberDecember 20132013 andand 20122012 breaksbreaks downdown asas follows:bllows: Thousands of euros 2013 2012 NnountsAmounts payable 47 353 52 989 BailaBails Received 73 924 86 743 ColiectionCollection accountsaccounts 23 959 22 967987 SpecialSpeclal accauntaaccounts 640 730 FinandalFinancial guaranteesguarantees 669 179 672 475 816055815 055 835904835 904 The amount registered byby thethe Entity as as at 31 December 2013 and 2012 under the headingheading of guarantees received corresponds, principally,pñncipally, toto guarantees inin favourfavour ofof ffiethe Entity depositeddeposited in other financlalfinancial entitiesentities asas a result of itsits operationoperation in dedvativederivative coveragecoverage products. The positive tlowflow includedincluded ittinme the statementstatement of consolidated cash flowsflows forbr theme yearyear 20132013 onon financialfinancial liabilitiesliabilities at amortizedamoWzed cost amountsamounft toto €€ 614,422614422 thousandffiousand (positive(positive flowflow ofof€ E 2,886,4812,886,481 mousandthousand in 2012). 17. PPmvislonsrovisions Set outout belowbelow are the changeschanges inin provisionsprovislons inin 2013 and 20122012 andand thethe purposepurpose ofof theffie provisionsprovislons recordedrecorded inin the consolidatedconsofldated balance sheets atat 3131 DecemberDecember 2013 and 2012: Thousands of euros ContingentConUngent PensionsPenslons and liabilitiesllabilities and Other similar obligationsobligatlons commitmentscommlbnents provisions Total Balance at 31 December 2011 194194409 409 3131503 503 117117147 147 343343059 059 ProvlslonProvision chargedcharged to Income:income: Charge to provisionsprovlslons 55815 581 2703927 039 3333588 588 6620866 208 lnterestinterest costs (Note(Note 32) 61996 199 - - 61996 199 Recovery agalnstagainst Income ( 81) (19 909) ( 88413) 413) ( 28403)28 403) Provisiona (21841) (28777) Provisions Lzedused ( 21 841) - ( 66936) 936) ( 28 777) Other movements - 330 (1 2323342) 342) ( 23012)23 012) BalanceBabnceat3l at 31 December 2012 184184267 267 3838963 963 112112044 044 335335274 274 ProvlalonProvision chargedcharged tolo Income: ChargeChame to provisionsprovlsions 5 538 26 251 56 666 88 455 lnterestInterest costacosts (Note(Note 32) 53445 344 - - 55344 344 Recovery agalnstagainst Incomeincome - (37136) ( 2550)2 550) ( 3939686) 686) ProvisionaProvisions usadused ( 24314)24 314) - ( 22487)22 487) ( 46801)48 801) OtherQther moveinentamovements 1313115 115 607 ( 1111127) 127) 22595 595 Balance at 31 December 2013 183183950 950 2828685 685 132132545 546 345181345 181 95 The provisionsprovislons recognized byby Ihethe GroupGmup reflectmflect best estimatesestimates ofof futurefuturo obligations.obligations. The Bank'sBank’s directorsdiredors considerconalder ffiatthat theremere isis nono significantsignificant risk,iisk, taking into account ifiethe amountamount of theseffiese provisions,pmvislons, that suchsuch obligations couldcould givegive riserise toto aa materialmaterial adjusfrnentadjustment lato methe carrylngcarrying amountamount of methe GroupsGroup's assets andand liabilitiesliabilwes in theme followingfallowing accountngaccounting peñad.period. The financialfinancial effedeffect esbmatedestimated inin provisionprovision calculations and provisionsprovisions recovered InIn 2013 and 2012 were immaterial.immateñal. The Bank quantifiesquantifles provisiansprovisions taklngtaking intointoaccount accountthe the bestbest Informationinformationavallable availableon onthe thecansequences consequences of ffiethe event giving riserise toto methe provisions,provisions,whlch whicham arere-estimated re-estimatedst ateach each accountingaccounting closeclose andand areare usadused to cover the specific obligationsobilgationa for which theythey were originallyoñginally recognized.recognized. PmvlslonsProvisions are fullyfully oror partiailypartially reversedreversed if suchsuch obligationsobllgations decreasedecrease ororare are eliminated.eliminated. The Group periodicallypeñodically reassesses reassesses ffiethe risksñsks to which Itsits activities are are exposedexposed on the basisbasis ofof economiceconomlc circumstances. Followingme the lnWalinitialmeasurement measurementand and reco9nitionrecognitionof of provisions,provisions,ffiey theyare are reviewedreviewed atat each balance sheet datedate andand adjusted,adjusted, ifif applicable,appllcable, to reflectrefiectbestestimates best estimates atatthat that time. Provisions recognized are usedused toto covercover thethe specificspecific obligationsobligations forfor whichwhich they were originallyañglnally recognizedrecognized and are fully oror partlallypartiallycancelled cancelledwhen whensuch suchobligations obligationscease cease toto existexistor ordecrease. decrease. ProvlslonsProvisions for pensionepensions andand similar obligatloneobligations The breakdownbreakdown of Provisions‘Provisions forfor pensionspensions andand similarsimflar obligations"obligation& correspondscorrespondsto to the amountamount ofof commitmentscommifrnents with employeesemployees ofof methe GroupGroup descñbeddescribed in NotesNotes 2.122.12 and 40. ProvisionsProvislone forfor contingentcontlngent liabilitiesllabilities and cammitmentscommitments This caption from thethe consoildatedconsolidated balancebalance sheetsheet includes methe amount of the provisionspmvislons registered to cover conbngentcontingent risks, understood as those transactionstransactions wherewhere thethe GroupGroup securessecures third-partymird-party obligationsobllgations resultingresulting from thethe financlalfinancialguarantees guarantees grantedgranted aror otherother typestypes of contractscontracts and contingent commitments, understoodunderstood asas irrevocableIrrevocable commitmenftcommitments whicbwhich maymay leadlead toto ffiethe recognition ofof financialfinancialasseffi. assets. Set out below is a breakdownbreakdown by nature of methe balance in theme item Provisions‘Provisions forbr contingentconbngent exposures and commitments’commitments"at at 3131 December 20132013 andand 2012, and aa breakdownbreakdown ofof theme relatedrelated itemitem "OtherOther movements"movements’ during 2013 and 2012: Thousands of euros Balance atst end Other mavementsmovements 2013 2012 2013 2012 ProvislonsProvisions for contingentconlingent liabilitiesliabllWes 2828685 685 38 983963 807607 330 ProvislonsProvisions for contingentcor4ingent liabilitiesliabilftles 2866528 685 3898338 963 607 330 11111101011i NiM111111111. "OtherOther movemente’movements" baslcallybasically includeincludeincreases increases andand decreases inin theffie provisionsprovislons recognizedrecognized forbr contingentcanhngent exposures duedueto to reclassificationsreclassifications between amounts utilizedutilized andand contlngentcontingent exposures.exposures. The Itemltem "Provisions‘Provisions forfor contingentcontingentexposures” exposures" includesincludes provisionsprovisionsoperations operations Inin whichwhichffie the GroupGroup securessecures mlrd-partythird-party obligationsobligationsunder underfinancial financialguarantees guaranteesfumished furnishedor or otherother typestypes of agreements,agmements, whilewhile theffie itemitem "ProvisionsProvlsions brfor contingent commitrnenl?commitments" includesincludes provislonsprovisions brfor irrevocableirrevocable commitmentscommitments thatthat could give rise to methe recognition ofof financialfinancialassets, assets,mere there beingbeing aa zerozero balancebalance stat 31 December 2013 and 2012. 96 Other provlslonsprovisions uOmer Set out below isa a breakdownbwakdown by naturenatura of methe balance in theffie itemitem "Other provisions"provisions” at at31 31 DecemberDecember 20132013 and 2012, andand a breakdownbreakdown of methe related item Other"Other movements’movements' duñngduring2013 2013 andand 2012:2012: Thousands of euros Balance stat end Other movements 2013 2012 2013 2012 Coverage for legal contingenciesconlingencies 49 394 46 627 - (11 374) Coverage contingenciescontlngencies associatedassoclated wthwith investeainvestees 9 703 29 865 (23 865) - Coverage of other contingenciescontingencles 73 449 35 552 12 738 (11 968) 132 MG546 112044112 044 (11 127). (23342)(23 342) The main itemstema includedincluded inin "OtherOmer provisions"provision& are desdñbeddescribed below: toverage"Coverage of legal contingencies":conUngencies”: This relates to provisions rfor legallegal proceedings inti respect of which therethere is likelylikely to be anan outflowoufflow ofof fundshinds affectingaffecting profits.proflts. It covers customer claims and lawsuitslawsuits with public administratlons,administrations, amongamong offierother ¡tema.items. TheThe definutivedefinitive date of methe outflowouffiow of fundafunds depends valles;varies; in sornesome cases, obligationsobligahons have no fixed sefflernentsettlement pedodperiod and,and, inIn other cases,cases, misthis depends on legal proceedingsproceedlngs in progress. TheThe arnounftamounts to be provisioned amare calculated using best esfimatesestimates of methe sum necessary to settle ffiethe dairnclaim based, among other aspects, on enan itemizediternized analysis of methe factsfacft and on legal opinions of intemalinternal and extemalexternal advisors.ad’lsors. • «Coverage"Coverage of contingencies relating to investees":lnvestee&: ThisThis includes contingencies relatedrelated toto methe Group'sGroup’s equity Investmentsinvestmentsthat thatare are notnot duedue to impairment ofof thethe fair valuevalue oror recoverablerecoverable amount of invesünentsinvestments butbut toto otherother typestypes ofof contingenciesthat that rnaymay arisearise fromfrom thethe holding ofof thethe shares.shares. The timlngtiming of titethe outflow of fundafunds depends enon each particularparticular contingency andand is estimated by Group managementrnanagernent usinguslng theifie bestbest informationinformation avallableavailable at theme accountingaccounfing close.ciose. • "CoverageCoverage of otheromer contingencies":contingendes’: ThisThis includesIncludes vallousvarious ñsksrisks forfor wtflcliwhich provisionsprovisionshave have beenbeen made covering unresolvedunresolved aspectsaspects thatthat methe GroupGroup expects will result Inin an outlayoutiay of funds,funda, and probable outlays envisaged by the Group in theme ordinaryordlnary course of business.buslness. The amountsamounts to bebe provisionedprovisioned are calculatedcalcuiated basadbased on theme best estimate of theme fundsfunds that the Group willwlll be required to pay to settle thethe contingencies identifled,identified, alsoalso taklngtaking intotito accountaccount thethe tirningtiming ofof methe fund outflows expectedexpected toto be caused byby methe obligation. At At 3131 DecemberDecernber 2013,2013, the balancebalance inIn thethe itemitern "Coverage8Coverage of otherother contingencies”contingencies"includes includesthe thepotential potentialpayrnent paymentto toAviva AvivaEurope, Europe,S.E. S.E. (AVIVA) inti connection wimwith the purchase andand salesale of methe cornpanycompany UnicorpUnicorpVida, Vida, CompañíaCompahlade de SegurosSeguros yy Reaseguros,Reaseguros, SA.S.A. QnOn 24 February 2014,2014, Unicaja Banco and AVIVA agreedagreed thethe termstemis ofof thethe considerationconsideration payable by the Bank for methe Definitive AdjusfrnentAdjustment ofofme the FinalFinal PitePrice underunderffie the ShareShare PurchasePurchase Agreement,Agreement, based on methe amountdetemilnedamount determined by an actuarialactuaflal expert. 97 18. Other llabilitiesliabilities PaiAn analysis Dfof theme balance In thismis consolidated balance sheet caption atat 31 December 2013 and 2012 is as follows:follows: Thousands of euros 2013 2012 AccmedAccrued un-matured expenses 43 581 48 970 OperatlonsOperations In process 1818314 314 5025050 250 Other 3706137 061 2449124 491 9895698 956 123711123 111 19. Assets and liabilitiesllablilties for insuranceInsurance conúactscontracts At 31 flecemberDecember 2013 and 20122012 ‘InsuranceInsurance contract"centrad’ of theffie consolidated balance amounts €132097€132,097 thousandthousand and €119.359€119,359 thousand, respectívely,respectively, (Note 40).40). At 31 December 2013 and 2012 “Insurance"Insurance pollcypolicy llabilities”liabilities" maintainedmaintained bybythe the GroupGroup totaltotal€5.740 €5,740 thousand and €6514€6,514 thousand, respectively. 20.20, MlnorltyMinority lnterestsinterests and Incomeincome atributedattributed to mlnodtyminority InterestaInterests A breakdownbreakdown by consolidatedconsolidated company ofof theme balancesbalances inin theme captionscapbons "Minority‘Minohty Interests"lntemsft’ and "Income‘Income attñbutedattributed to minoñtyminority interests’interests" in methe consolidated balance sheetsheet and income statement forfor 20132013 and 2012 is as follows: Thousands of euros 2013 2012 lncomeIncome IncomoIncome attrlbutedattributed toto attrlbutedattributed to MlnorltyMinority mlnorityminority MlnorltyMinority mlnorltyminority Interesteinterests lntemstsInterests lntsrestsinterests Interestsinterests Escuela SupedordeSuperior de Estudios de Empresa, SAS.A. 202 (193) 261 ( 46) Pñvánd&usPrivandalus InverslonesInversIones 1,I, SICAV, SA.S.A. 35663 666 336 20182 018 126 ParquePamue Industrial Humilladero, S.LS.L. 706 ( 20)20) 753 ( 29)29) Uniwindet ParquePamue E011coEólico LasLas Lanillas,LomIllas, S.LS.L. (( 320) 38 (( 363) (( 3)3) UnWndetUniwindet PamueParqueEólica EolicoLoma Lomade deAyala, Ayala,S.L Si. ( 664)664) 34 ( 707) 6 UniwindetUniwlndet ParquePamue EifilicoEólico Los Jarales,Jarales, S.L. ( 440)440) 42 ( 504) ( 22)22) UniwindetUniwndet PamueParque EólicoEolico Tres Villas, S.L. (1 420) 108 (1 558) 7 Unlwlndel,Uniwindet, S.L. 27542 754 ( 38)36) 27962 796 9 44864 484 309 2 696 48 21. CapItalCapital and share premlumpremium The Bank’sBank's capital stock to 31 DecemberDecember 2013 amounted to 800,000 mousandthousand euro, comprisingcompñslng 800 millionmIllion issued shares of par value of one euro, fully paid up and subscñbedsubscribed by Monte de Piedad yy Caja de AhorrosAhorros de Ronda, Cádiz,Cadiz, AlmeneAlmeria , Malaga,Málaga, JaénJaen and Antequera (Unicaja). At 31 DecemberDecember 2013 and 2012 the BankBank did notnot holdhold anyany treasurytreasury shares.shares. DuringDuñng 2013 and 2012 no operations were carfiedcarried out involving treasury shares. 9698 rl The SegregatonSegregation Project reiatingrelating tometo the segregationsegregation opembonoperation descñbeddescribed inin NoteNote 11.21.1.2 establishesestablishes matthat, duetodue to methe dynamic naturenature of methe banking businessbusiness at Unicaja, as fromfrom ifiethe date of thatmat project to thethe date onon whichwhich thethe operation is effectively registered,registered, methe Segregated EquityEquity aidand itsits components maymay logicallyloglcally changechange during thethe ordinary caursecourse of thethe financialfinancialbusiness. business. In thisthis connection,connection, aidand asas is indicated jiin Note 1.1.2, anyany changechange in thethe value of thethe Segregated EquityEquity that ansasarises as aa resultresult ofof changeschanges inin itsits compositioncomposition asas a aresultresult ofof thethe dynamicdynamic naturenature ofof Unicaja'sUnicaja’s financialfinancial business, as from thethe date of methe SegregationSegregation Project laIsconsidered consideredtobe to bean anincrease increase orordecrease decrease uin methe shareshare premiumpremiumfon forthe the purposespurposes ofof methe Bank’sBank's Incorporation, and andtherefore thereforeu inno nocase case Caesdoes it affect ahareshare capitalcapital figure.figure. InIn accordanceaccordance with methe Segregation Project, theme shareshare capitalcapital ofof theme BankBank wouldwould totaltotal €800€800 million,mili jan, with a share premiumpremlum totalling €1793€1,793 million.million.These Theseamounft amounts indudeincludeme thevalue value ofofme the SegregatedSegregated Equity atat €2.470€2,470 milimillionjan aid andan an estimateestimate ofof changeschanges inIi the SegregatedSegregated EquityEquity maderiada byby thethe DirectorsDirectora ofof UnicajaUnicaja totallingtotailing €123€123 mullion.million. Between 1 January 2011 (date of accounting effects) andand 1 December 2011 (date onci which the segregation operation effectiveiyeffectivelytook tookplace), place),mere therewere were movementsmovementsthat that changedchanged thethe amount of the "Share“Share premium"premlum” ftomfrom €1793€1,793 millionas as statedstated injn the Segregation ProjectProject tote €1,763€1763 millionmillion whichwhlch was finallyfinally contributed. Taking intointo considerabanconsiderationme the restrest ofof methe Gmup’sGroup's entibes,entities, methe shareshare premium atat 3131 December 2013 aidand 2012 totaled €1649€1,649 million inin bothboth fiscalfiscal years.years. TheThe breakdown andand movementamovements recordedrecorded under methe heading "Equity"“Equfty” inIn methe consolidatedconsolidated balancebalance sheetsheet for 2013 aidand 2012 are presented Inin the accompanyingaccompanylng statement ofof total changeschangas InIn consolidated equity, togethertogether with anan explanationexplanation ofof alIallmovements movements matthat taoktookplace place ininmis thisaccount account ovenoverthe the coursecourse of 20132013 andand 2012. 22. ReservesReserves Appendix IV IVto tomese these notes to theme consolidatedcansolidated annualannual accountsaccounft presents,presents, amongamong otheromer information,information, a reconciliationreconciliationof ofthe thecanying carryingamounte amountsst atyear-end year-end2013 2013 andand 2012 recognized jiin the itemftem "Equity“Equity - Shareholders’Shareholders' equity - Reserves”Reserves" in thethe consolidated balance sheet, showingshowing allah movements duñngduring 20132013 andand 2012. DuñngDuring methe first quarterquarter of 2007, the EntityEntity reclassifiedreclasaified the balancebalance includedincluded underunder "Equity“Equity -- AccumulatedAccumulated Reserves - ReserveReserve forfor thethe revaluationrevaluation ofof fixed assets”,assets", amountingamounting to €23,614€23614 thousand, resultingresulbng from the application cfof RoyalRoyal Decree-LawDecree-Law7/1996, 7/1996,of of7 7June June 1996,1996, toto “Equity"Equity- -Accumulated AccumulatedReserves Reserves- -Other Other reserves”reserves" thatthat areare freely avallableavailable ininnature natureaid and areare carriedcarried underunder equityequityu inme thebalance balancesheet sheet. 99 22.1 ReservesReserves in infully-consolidatedfthly-consolidated oror proportionately-consolidatedproportionately-consolidated entities Uqjfty Set outout belowbelow isja aa breakdownbreakdown byby consolidatedconsoildated entityentty of the balances recognizedrecognized in "Equity- - ReservesReserves - Accumulated reservesTMreserves° in thethe consolidatedconsolidated balancebalance sheetssheets at 31 DecemberDecember 2013 and 2012, relatingrelating to the part of thatthat balance resulting from thethe consolidationconsolidation pmcess:process: Thousands of eurossoros 2013 20122912 Unicaja Banco!Banco, S.A.U. 142 308 325 179 UnlcorpUnicorp CorporaciónCorporaclon Financiera,Finandera, S.L. 1818479 479 15 798 Alteda Corporación Alteria Corporacion Unicaja,Un'cep,() S.L.U.S,L.U. 3001930 019 2568225 682 Inmobiliariainmabillarla Acinlpo, S.L.U. (100 889) ( 63670)63 670) GestiónGestiOn dede AdMdadesActividadesy ySeMclos Servidos Empresariales,Empresarlales, S.A.U. 2 694 2 685665 CorporaciónCorporacian Uninser, S.A.U.SAU. 11 828 1010526 526 Banco Europeo de Flnanzas,Finanzas. S.A.SA 8 386 71177 117 UnimedilertáneoUnimediterraneo dede Inversiones.Inversiones, S.L 92279 227 9 182 Unicartera GestiOnGestión de Activos, S.L.U. 22 184 20 705 Andaluza de TramItacionesTramitaciones y Gestiones, S.A.U. 6 594 68558 558 Unicartera Internacional, S.L.U. 4629346 293 61 293 Unlgest,Unigest, S.G.I.I.C., S.A.U. 23432 343 23122 312 UnicaneraUnicartera Renta, S.L.U. 1515429 429 11 562 Participaciones Agrupadas, S.L Particlpaciones Agrupadas, S.L. (*)( - ( 9031) MijasMiles Sol Resort, S.L.U.S.L.U. (*)) ( 1 916) ( 11751) 751) GestiónGestion de InmueblesInmuebles Adquirldos,Mqulñdos, S.L.U.S.LU. (")() (469 398) (123 292) Hidrocartera, S.L. 64266 426 5 992 PinaresPlnares del Sur,Sur, S.L.SI. (*)(1 (17531)( 17 531) ( 1111116) 116) LlquldámbarLIquIdambar InversionesInversiones Financ.iems,Financieras, S.L.() (*)() ( 8138)8 136) ( 7217)7 217) Unlc-as Promociones Inmobiliarlas,Inmobiliarias, S.L.S.L. (') ( 8816)8 816) ( 4 088) InnovaciónInnovaciOnen enDesarrollos DesarrollosUrbanos Urbanosdei delSur, Sur,SA SA (")fl ( 8696)8 696) ( 7 039) EspacioEspaclo Medina,Medina, S.L. (*)fl (16( 16 092) ( 1616 025) Unimediación.Untmedlacien, S.L.U. 26112 611 39613 961 Renta Porfollo,Porfoho, S.L.U.S.LU. fl ( 1010589) 589) ( 4689)4 689) Otras sociedades (*)(1 ( 9110) ( 55636) 636) (326 354) 254 978 (iNegative(*)Negativebalances balances representrepresent accumulatedaccumulated losses.losses. 100 22.222.2 ReservesReserves andand exchangeexchange differencesdiffemnces inin entitiesentities measuredmeasured usingusing theffie equityequity method Set out below is a breakdownbreakdown by consolidatedconsoildated entity ofof methe balancesbalances recognizedrecognized In Equity"Equity- - ReservesReserves -- ReservesReserves In entilesentities measured using theifie equityequity method°method’ in ffiethe consolidated balancebalance sheetssheets at 31 December 20132013 and 2012, relating tometo the part of matthat balance resultingresulting from the consolidation process:process: flousandsThousands ofof eurosauras 20132013 20122012 AutopistaAutopista deldel SolSol ConcesionariaConceslonaria Española,Espanola, S.A.SA. (*)(1 26112)26 112) (24(24 095)095) AutopistaAutopistadel delGuadalmedina, Guadalmedina,Concesionaria ConceslonariaEspañola, Espanola, SA.S.A.() (1 3803)3 803) (( 86)86) GrupoGrupo HotelesHoteles Playa,Playa, SA.S.A. (1(`) 8755)8 755) ( 8 234) EBNEBNBanco Bancode deNegocios, Negoclos,SA. SA.(‘) (1 8367)8 387) ( 4 591) UnlcorpUnlcorpVida, Vida,Compañia Campaniade deSeguros Segurosy yReaseguros, Reaseguros,SA S.A.(1 (1 24862 486 2222 445446 SociedadSociedad Municipal dede AparcamientosAparcamlentos yy Servidos,Servicios, SA.S.A. 44 078078 33 707707 IngenleriaIngenierla ee IntegraciónIntegraclon Avanzadas,Avanzadas, SAS.A. (Ingenia)(Ingenla) 22 025025 22 376376 Hidralia,Hldralia,Gestión Gestion IntegralIntegralde deAguas Aguas dede Andalucla,Andalucia, SAS.A. ()(•) (previously,(previously,Aquagest Aquagest() Andalucla.Andalucia, SA.)S.A.) 3941)3941) ( 2963)2 963) AtE.A.I.E. NavieraNaviera UraniaUrania r) ( 11 959) ALE.ALE. Naviera NemaNerga (•) 3 246) (*)(‘) ( 3 246) AlE.A.I.E. Naviera Attila (*) 2425) 2425) (*) 2 425) ( 2 425) AlE.A.I.E.Naviera NavieraElectra Electra (1 2425)2 425) ( 22425) 425) SacyrSacyr Vallehermoso,Vallehermoso, SA.S.A. CI (23 027) (*) £1 (23 027) Deoleo,Deoleo, S.A. (*) (62112)62112) (31(31053)053) AlestisAlestisAerospace, Aerospace, S.LS.L. O 9690)9 890) 55 348348 CreaciónCreaclon dede Suelos ae Infraestructuras,infraestruduras, S.L.S.L (*)fl 2829)2 829) ( 2103) OtrasOtras sociedadessocledades (1(.) 5069)5 069) ( 6 843) (127(127159)159) (79(79173)173) (iNegatlve(")Negativebalances balancesrepmsent represent accumulatedaccumulatedlosses. losses. 22.322.3 MeasurementMeasurement adjustmentsadjusfrnents toto equity-consolidatedequity-consolidated entitlesentities SetSet out below Isis aa breakdown ofof ifiethe consolidatedconsolidated balancebalance sheetsheet item recording measurementmeasurement adjustmentsadjustments toto equity-consolidatedequity-consolidatedantities entitiesal at31 31December December2013 2013and and2012 2012 andand ofof net gainsi(losses)gainslQosses) on measurement includedincludedIn Inme theconsolidated consolidatedstatements statementsof ofrecognized recognizedincome incomeand andexpenses expensesr for2013 2013and and 20122012 duedue toto methe eftdeffect ofof equity-consolidatedequity-consolidated entiles:entities: ThousandsThousands ofof eurossums BalanceBalance ¡ain consolldatedconsolidated statementsstatements ValuatlonValuation GamaGains (loases)(losses) 20132013 20122012 20132013 20122012 AutopistaAutopistadel delSol SolConcesIonaria ConceslonariaEspañola, Espanola,SA. SA. (4924)( 4 924) (4337)( 4 337) (( 839)839) (6197)( 6 197) AutopistaAutopistadel delGuadalmedina, Guadalmedina, ConcesionariaConceslonaria Española,Espanola, S.A. ( 5070)5 070) (( 6452)6 452) 19741 974 (( 4714)4 714) EBNEBNBanco Bancode deNegocios, Negodos,SA SA. 1 816818 258258 22 229229 22 476476 UnicorpUnlcorpVida, Vida,Companla Companfade deSeguros Segurosy yReaseguros, Reaseguros, SAS.A. 1054710 547 (13230)(13 230) 3396733 967 1159311 593 Sacyr Vallehermoso, SA.S.A. - (1793)( 1 793) 25822 562 85038 503 Deoleo,Deoleo,SA. SA. (2488)( 2 488) (2683)( 2 683) 279279 (( 90)90) AleaDaAlestisAsrospace, Aerospace, S.LS.L. ( 829)829) 12 (1202)( 1 202) -- OtherOther entltiesentities 55 44 1 2525 ( 941)941) (28221)(28 221) 3897138 971 1159611 596 101 23. TazTax sítuationsituation 23.1 ConsolidatedConsolidated taxtaxgroup group The Bank ¡ais partpart ofof ffiethe TaxTax GroupGroup numbernumber660)10 660/10which whichwas wascrestad, created, parentedparented by MonteMontede de PiedadPiedad yy CajaCala dede Ahorros dede Ronda, Cadiz,Cádiz, Almeria, Málaga,Malaga, AntequeraAntequera yy JaénJaen (Unicaja), taxedtaxed brfor methe purposespurposes of income tax under the Tax ConsolidationConsolidation Regime special as regulatedregulated byby TitleTtfle VII,VII, ChapterChapter VIIIVIII ofof thethe Corporate Income Tax Act approvedapproved by Royal Decree LegislativeLegislative 4/2004 (hereinafter(hereinafterthe the CITA).CITA). This Tax Group includes, as Investeeinvestee companies,companles, subsidiariessubsidiaries ofof UnicajaUnicaja BancoBanco S.A.U.,5AM., and which, together with Unicaja, formform partpart ofofthe the consolidatedconsolidated Tax Group in 2013: Company Monte dede PiedadPledad y CajaCala de Ahorros de Ronda, Cadiz,Cádiz, Almeria,Almería, Málaga,Malaga, Antequera y JaénJaen (UnIcala)(Unicaja) Unicorp Corporación Corporeal" Financlera,Financiera, S.L.U. InmobiliariaInmobIllarla Acinipo,Acinlpo, S.L.U,S.L.U. Unlgest, S.G.I.I.C., SAU.S.A.U. CorporaciónCorporaclOn Uninser,UnInser, S.A.U. GestiónGestiOnde de ActividadesActividadesy y ServidosServiclos Empresariales,Empresariales, S.A.U. Andaluza de TramltadonesTramitaclones y Gestiones,Gestlones, S.A.U.SA.U. AltedaAlterla CorporaciónCorporaciOn Unicaja, S.LU.S.L.U. UnfrnedfteaáneoUnimedlterraneo dede Inversiones, S.L. Analistas EconómicasEconamicos de Andalucia,Andalucía, S.L.U. UnicorpUnicorn Patrimonio,Patrlmonlo,Sociedad Socledad de Valores, S.A.U.SAI). Mijas SolSol Resort,Resort, S.L. TasacionesTasaclones Andaluzas, S.A.U. Unicartera CajaCala 2, S.L.U. InmobilIariaInmobiliaria UniexUnlex Sur,Sur, SA.U.S.A.U. UnicafleraUnicartera GestiOnGestión de Activos,Adivas, S.L.U.S.LU. Unicartera InternacIonal,Internacional, S.LU.S.L.U. Unimediaclón,UnImediaciOn, S.L.U.S.L.U. Unicartera Renta, S.L.U. GestiónGestiOn dede Inmuebles Adquirldos,Adquiridos, S.L.U. SegurándalusSegurandalus Medlacion,Mediación, SA..S.A., CorreduríaCorredurfade de SegurosSeguros Consultora TécnicaTecnIca Tase,Tasa, S.L.U. Renta Porton°,Parfollo, S.L.U.S.L.U, Parque IndustrialIndustrial Humilladero, S.LS.L. Unicaja Banco, SAU.S.A.U. Promotora GuadalnerviOn,Guadalner1ón, S.LU.S.L.U. Altos dede JontoyaJontoya ResidencialResidential parepara Mayores,Mayores, S.L.U. UnicaderaUnicartera Gestic:onGestión de de ActivosActivos Inmobiliarios,Inmobillarlos, S.A.U. Cartera de InversionesInversiones Agroalimentarias,Agroallmentarias, S.L UnFwndet,UniwIndet, S.L Baloncesto Málaga,Malaga, S.A.D.SAO. DuñngDuring 2013,2013, ifiethe companies Cartera dede InversionesInversiones Agroalimentarias,Agroalimentarias, S.L., Uniwindet, S.L. S.L. andand Baloncesto Málaga,Malaga, S.A.D.S.A.D.were were inciudedIncludedin in ffiethe tax consolidationconsofldation acope.scope. The companycampany Andaluza de ControlControl y DispositivasDispositivosde de Seguridad,Seguridad, S.A. waswas liquidated in 2013 and thema companycompany UnicorpUnicorp RetailRetail Properties,Properties, S.A.U.S.A.U. was merged intointo UnicorpUnicorp CorporacidinCorporación Financiera,Financlera, S.L.U. During fiscalfiscal 20122012 have joinedjoined theme taxtax consolidatedconsolidated theme followingfollowing companies:companies: PromotoraPromotora GuadalnerviOn,GuadalneMón, S.L.U., AltosAltos dede Jontoya ResidencialResidencial parepara Mayores,Mayores, S.L.U.S.L.U. yy UnicarteraUnicartera GestionGestión dede ActivosActivos Inmobiliarios,Inmobiliarios, S.A.U. Moreover, frethe company AdministraciOnAdministración y yGestión GestiOnde de Personal,Personal, E,T.T.,E.T.T., SAL).S.A.U. waswas liquidated on November26,November 28, 20122012 102 U U 23.2 FinancialFinancial yearsyears openopen tolo taxlax inspectionInspection At methe time of preparation ofof mesethese consolidatedconsolidated financial statemenft, statements, methe BankBank IsIs subjectsubject loto audit by tax auffioñflesauthorities allah taxtax obligafionsobligations ofof sIetestate administraton,administration, sincesince itsjis inception in 2011.2011. U As for thethe remainlngremaining laxestaxes regional and local management, isis subject tolo administrativeadministrative review thethe fiscal yearsyears 2011 and 2013. In relation to me other companies in the Group, these are pending a possible Inspection by the tax authorities U In relation to the other companies in the Group, these are pending a possible inspection by the tax authorities forfor thethe yearsyears 2009 tolo 2012 for Corporate Income Tax and for the lastIast four years forfor the restrest ofof theirIheir obligations,obhigations, inIn lineme withwitharticle article66 66 ofofme the GeneralGeneral Tax Law. Furthermore, dated July 11, 2012 theme TaxTax AdministrationAdmmnistrabon announcedannounced theme initiationinitiation ofof aa proceeding Inspector inIn relationrelation toto methe laxestaxes which areare detafleddetailed betow,below, Withwithrespect respect toto MonteMontede de PiedadPiedad yy Caja dede Ahorros dede Ronda, Cádiz,Cadiz, Almerla,Almeria, Málaga,Malaga, AntequeraAntequera y JaénJaen (Unicaja),(Unicaja), with CIFCIF G29498086G29498086 andand its consolidatedconsolidated tax group. The tax audits, which areare general in accordance withwith AñicleArticle 148148 ofofthe the TaxTax Code,Code, areare almedaimed stat checking methe followingfollowingtax taxassessments: assessments: - Corporation TaxTax regimeregime ofof corporatecorporate gmups,groups, years 20072007 toto 0512010.05/2010. - Added Value Tax, period 0606 // 2008-05/2010.2008-05 / 2010. LI - wimholdingWithholdingobhigatons obligationsTax TaxPersonal Personal IncomeIncome Tax,Tax, CorporationCorporationTax Taxand and Income TaxTax Nonresident and annual tax Informationinformation retums,returns, peñodperiod 0506 // 2008-052008-05 /2010./ 2010. QnOn 20 June 2013,2013, theme TaxTax AdministrationAdministration notifiednotifled Unicaja ofof anan additional 12-monm12-month extensionextension loto the period during whichwhichme the Inspectioninspectionproceedlngs proceedings areare performed. Due to theme differentdifferent possible interpretations ofof methe tax regulationsregulations applicable loto the businessbusiness ofof financialfinanclal institutions,institutions, taxtax liabihitiesliabilitiesmat thatmay maynot notbe beobjectively objectivelyquantifled quantifiedst atifie thepresent presenttime timemay may misearise inin methe eventevent of a Li taxtax inspection. fleThe Group'sGmup’s Directors and taxtax advisors consider,consider, however,however, thatmal theme possibilitypossibility ofof any significantsigniflcant hiabilWes,liabilities,in inaddition additiontome to theamounte amountsrecorded recorded ininme the accounis,accounts, ¡5is remote.remote. 23.3 ReconciliationReconciliation ofof theme accountingaccounting and tax resultsresulla Set out below ¡5is the reconcihiationreconciliationbetween betweenincome incometax taxexpenses expenses calculatedcalculated alat methe general tax rate applicableapphicable inIn SpainSpain andand reportedreported taxtax expenseexpense in 2013, as well asas theme comparative data forfor 2012: TbousandsThousands of euros 2013 2012 PmfitProfit beforebefore taxtax 69 562 (657(857 330) U lncomeIncome taxtax (tax ruterate of 30%) 20 869 (257 199) DuetoDue to ehimlnationseliminations ininme the consohidallonconsolidation proceus.process. (11 523) (18( 18 367) i PosltivePositive permanentpermanent dIferentesdifferences 1816407 407 1414857 857 i Negative perrnanentpermanent diferentesdifferences ( 44 775) ( 7 777) Revaluation Law 161201216/2012 (13112)(13 712) - DedudllonsDeductions and aIlowncesallowances DedudionDeduction for doubledouble taxation of dividendudividends ( 9104)9 104) ( 1111142) 142) Li Deduction forfor relnvestrnentreinvestment of extraordlnaryextraordinary gainsgains ( 319) (( 497)497) Income taxtaxexpense expense 2 157)( 2 157) (280 125) U 103 iJ As regards theffie breakdownbreakdown of the mainmain incomeincome tax expense/(credit) items,Items, thethe enüreentire amount recognized asas income Inin ifiethe consolidatedconsolidated incomeIncomestatemenft statements forfor2013 2013 atidand 20122012 (€2157(€ 2,157 ffiousandthousand inin 20132013 andand €€ 280,125280125 thousandthousand Inin 2012) relates to currentcurrent incomeincome for the period.period. No amountsamounts were recognizedrecognized Inin respect ofof adJustmenlsadjustments toto current oror deferred taxestaxes Inti thethe current year or prior years,years, or due toto otherother circumstancescircumstances envisaged in tax regulations, exceptexcept for thethe effect cmon incomeincome taxtax expenseexpense of thethe restatement pursuant to LawLaw 16/2012. Set out belowbelow isle aa breakdownbmakdown ofof incomeincome taxtax creditscredift recognizedrecognlzed in¡ti the consolidatedconsolidated income statements forfor 2013 and 2012: Thousands of eurosauras 2013 2012 Income fromfrom temporarytemporary differences ofof birthbldh (5281)(5 281) 7933879 338 IncomeIncome taxtax loss carrycany forwards foto offset (1 985) 188 775775 IncomeIncome andand deductlonsdeductions unappliedunapplled credltedcredited 94239 423 1201212 012 Total Income ¡/ (expense) Income tax 2 157 250280 125 WthWith respectrespect toto thethe incomeincome taxtax recognizedrecognized ininthe thestatements statements ofof recognizedrecognized Incomeincome andand expensesexpenses for 2013 and 2012, the GroupGroup charged to consolidatedconsoNdated eguityequity aa negative amountamount ofof €€ 13,251 thousand and € 28,56228,562 thousand, respectively,respectively, forfor thethe followingfollowing ¡tema:items: Thousands of euros 2013 2012 Actuarial gairisgains andand losses on defined benefitbeneflt plans 156 - ValuabanValuation ofoffinandat financialassets assets avallableavailable for salesale ( 66548) 548) (28 308) Valuation of derivativesderivatives hedginghedging of cash flows 5 041 28802 880 Valuation ofofthe the exohangeexchange dlfferencesdifferences 10 50 Valuation ofof non-currentnon-currentassets assets for salesale ( 219) 295 Valuation of entitiesentities uslngusing fhathe equltyequity melhodmethod (11 691) 1( 33479) 479) Total IncomeIncome!¡(expense) (expense) Income faxtax (13 251) (25(28 562) . A lowerlowerrete rate waswas not appliedapplied ¡tiInany anyof offuese these adjustmentsadjustments and fuerethere are nono deductiblededuchble timingtimíng differences, losseslosses or faxtax credits Inti respectrespect ofofwhich whichdeferred deferredfax taxassets assetshaya havenot notbeen been recognizedrecognizedin inthe thebalance balancesheet sheet 104 23.4 TemporaryTemporary differencesdifferences InIn accordanceaccordance with currentcurrent SpanishSpanish taxtax legislation,egislation, Inin previouspreviousfiscal fiscalyears years certaincertain temporanjtemporarydifferences differencesarose arose matthat must be taken into account when calculating incomeIncometez taxexpense. expense. InIn thethe consolidatedconsolidatedbalance balancesheets sheets atat 31 December 2012 andand 2011, deferred taxtax assetsassets amountamount to €631,911€631911 ffiousandthousand and €594,050€594050 thousand, respectively,respectively, and deferred taxtez liabilitiestabiQUes amountamount toto €83099€83,099 U,ousandthousand andand €103492€103,492 thousand, respectively. Set outmit below is a breakdownbmakdcwn of current andand deferred tax assets andand liabilitiesliabilities recognized In the consolidated balancebalance sheets at 31 December 2013 and 2012:2012: ThousandsThousands of euroseuros 2013 2012 AsanAssets LlabllWesLiabilities AnataAssets UabllltJesLiabilities CurrentCurrent texastaxes 3051530 515 2841728 417 3357433 674 1421514 215 DefarredDeferred texastaxes 631631 911911 8309983 099 594694 050050 103 492492 LoasLoss canyfoiwardscarryfoiwards 186 790790 - 188 775775 - UnusedUnused teztax creditscredits 33 468468 - 2826 452452 - Temporary dlfferencesdifferences -- insolvenclesinsolvencies 198 380380 - 219219 798798 - TemporaiyTemporary dlfferencesdifferences -- penstonspensions 4444 336336 - 33 503503 - TemporaryTemporary dlfferencesdifferences- -foreclosed foreclosedanda assets 15 237 -._ 33 861 -- OtherOther itemsterna 153 700700 2531025 310 121 661661 1346713 467 RevaluatlonsRevaluations -- 63 848 -- 7777 836 12189 DffferencesDifferences timlngtiming of recognition - (( 6059)6 059) 12 189 662426662 428 111 516518 627624627 624 117707117 707 The Bank’sBank's dlrectorsdirectors considerconsider thatthat thethe teztax assetsassets recordedrecorded willwilI bebe realized inin ffiethe corningcoming periods,periods,as as thethe teztax groupgroup obtalnsobtains taxabletaxable incorne,income,whlch whichla isexpected expectedto tobe be ffiethe casecase in the comingcorning years. The directorsdirectora consider thatthat methe Bank and its¡ts taxtax groupgroup willwill obtainobtain taxabletaxable income Inin thethe comingcomlng years thatthat willwitl permit methe recovery of thethe teztax assets withinwithin theme deadlinesdeadllnes stipulatedsUpulated inin taxtez legislationleglslation for ffiethe offseftingoffsetting ofoftez tax losseslosses and applicationappllcation of teztax credits.credits. TheThe effectiveness of Royal Decree-Law 14/201314/2013 (29(29 November)November)on on urgenturgent measuresmeasures toU, bringbñng Spanish law into lineme wimwith EuropeanEuropean Union regulationsregulations onon methe supervision and solvencysolvency ofof financialfinancial institutionslnsUtutions basicallybasically entailsentails thatthat certeincertain deferred teztax assets recognizedrecognized in thethe accompanyingaccompanying balancebalance sheet may,may, subjectsubject to certaincertain conditions,conditions, bebe converted Into recelvablesreceivables payable byby the TaxTez Administration.Adrninistmtion. Nonetheless, it should bebe noted thatmat the GroupGraup of which thethe Bank formaforms padpart hashas mademedo an initialinitial estimate of thethe amount of deferred taxtez assets thatmat couldcould bebe convertedconverted intoInto receivablesreceivables fromfrom thethe TaxTez AdministrationAdministrauon and areare thus guaranteed byby the Spanish authorities,authoñUes, whichwhlch totaltotal €€ 449762449,762 mousand.thousand. 23.523.5 IncomeIncome includedincluded inin theme TaxTax RegimeRegime forfor HoldingHolding EntitiesEntities of Foreign SecudUes.Securities. InIn uneline withwithwhat whatis Isestablished established inin articlearticle 118,3118.3 ofofffie the RevisadRevised TestTest of methe Corporate Incomelncome TaxTez Law, itit lais statedstated that InIn the taxtez settlementsewement ofof CIT correspondingcorresponding to ffiethe teztax pedodperiod of 20132013, exemption waswas declared fromfrorn certaincertain incorneincome obtained by UnicarteraUnicartera Internacional,Internacional, S.L.,SL, applying methe TaxTez RegimeRegime forfor HoldingHolding EntitiesEntties of ForelgnForeign Securites,Securities,amounting amountingto to€766 €766thousand. thousand.In Inthe the yearyear 2012, ffiethe corresponding amountamount waswas €493 thousand.thousand. UnicarteraUnlcartera Internacional,Internacional,S.L. S.L.has haspaid paidtaxes taxes abroadabroad amountingamounting toto €77€77 thousandthousand inin 20132013 andand €84€84 thousandthousand in 2012.2012. 105 23.623.6 ReportingReporting obligationsabligallons derivingderiving fromfmm ffiethe segregallonsegregation a)a) InformabanInformationregarding regardingthe theSpecial SpecialTax TaxSystem Systemfor forSegregation Segregationwith withrespect respect toto CorporateCorporate IncomeIncome TaxTax IiIn 20112011,• methe General AssemblyAssembly ofof MonteMontede de PiedadPiedad yy Caja de AhorrosAhorros de Ronda,Ronda, Cadiz,Cádiz, Almeria,Almería, Malaga,Málaga, AntequeraAntequera yy JaénJaen (Unicaja)(Unicaja) which approvedappmved theme indirectindirect carrying out ofof itsits financialfinancial equity through Unicaja BancoBanco SA.S.A.- SociedadSociedad UnipersonalUnipersonal andand itsita incorporationincorporaban toto thethe segregabansegregation of part of its equity, adoptedadopted aa resolutionresolutionto to applyapplythe the SpedalSpecial SystemSystem forfor Mergers, Spin-off,Spin-off,Asset AssetConffibubons Contributionsaid andShare ShareSwaps Swaps toto methe transaction,transaction, as regulatedregulated byby TitleTille VII,Vil, Chapter VIIIof ofme the CorporateCorporate IncomeIncome Tax Act.Act. TheThe choicechoice toto applyapply thethe SpecialSpecial TaxTax SystemSystem hashas been reportedreported to theffie StateState TaxTax AgencyAgency InIn accordance with thethe provisions ofof ArticleArticle42 42of ofthe theCorporate Corporate IncomeIncomeTax TaxRegulatlons. Regulations. b)b) AccounfingAccounting obligabonsobligations RegardingRegarding ffiethe fulfillment of ofthe theobligabons obligationsof ofaccounting accountingestablished established by Article 93.193.1 methe TRLIS, in relation teto thethe applicatlonapplication forfor segregabansegregation ofof the SpecialSpecial TaxTax RegimeRegime regulatedregulated inin ChapterChapter VIIIVIII ofof TitleTibe VIIVII of ffiethe TRLIS, containedcontained ininthe the notesnotes toto thethe financialfinancialstatements statements 2011.2011. 23.723.7 InformationInformation onon fixedfixed asset restatementmstatement underunder LawLaw 16/2012 TheThe Board ofof DirectorsDirectorsof ofMonte Montede dePiedad Piedad yyCaja Caja dede AhorrosAhorrosde de Ronda,Ronda, Cádiz,Cadiz, Almería,Almeria, Málaga,Malaga, AntequeraAntequera yy JaénJaen (Unicaja), inin itsitscapacity capacityas as ffiethe SIngleSingle ShamholderShareholder ofof UnicajaUnicajaBanco, Banco,held helda a GeneralGeneral MeetingMeetingon on21 21June June 20132013 loto approve the proposal by the Bank'sBank’s Board of DirectorsDlrectors toto restaterestate fixed assets underunder ArticleAdicle 9 of Law 16/2012 (27(27 December),December),whereby wherebyvañous varioustax taxmeasures measures werewere adoptedadopted to consolidate public financesfinances aidand toto encourageencourage economiceconomio activitiesactivities ("Law(Iaw onon TaxTax Measures”).Measures"). AsAs a result,result, and inIi accordanceaccordance withwith theffie proposal,proposal, revaluationrevaluation reserves recognized under Bank of Spain CircularCircular4/2004 4/2004relating relatingto to516 516own-use own-useproperbes propertiesrestated restatedu inthe the amountamount ofof €€ 5485054,850 thousand, already indudedincluded InInequfty, equity,acquired acquiredtax taxeffects, effects. TheThe fixed assetasset restatementrestatement waswas carriedcarfled outout applyingapplying thethe followingfollowing cñteñacriteria stipulatedstipulatedin in thethe Law onon Tax MeasuresMeasures for asseffiassets qualifying for forthe therestatement: restatement - AssetsAssets forming partpart ofofproperty, property,plant plantand andequipment equipmentwere wererestated. restated. - TheThe assetsassets restatedrestated werewere includedinduded inin theme firstflrst balance sheet closedclosed followingfollowing methe effective datedate of methe Law onon TaxTax Measures. Consequently,Consequentiy, as UnicajaUnicaja Banco'sBancos financialfinancial year coincides wíthwith thethe calendarcalendar year,year, thethe balancebalance sheetsheet dosedclosed atat 3131 DecemberDecember 20122012was was used.used. - AsseftAssets fully amortized amortizedat at31 31 DecemberDecember2012 2012wem were notnotrestated. restated. - TheThe restatementrestatement was applied to 516516 properties.properties. - TheThe valuevalueof ofeach eachasset asset restatedrestated does not exceedexceed its market valuevalue atat thethe restatementrestatement date,date. TheThe approachapproach adoptadadopted by UnicajaUnlcaja BancoBancolo toupdate update fixedfixedassets assets waswas methe subjectsubject maltermatter ofof aa replyreplylo toa a requestrequest forfor aa binding wlingruling fmmfromme the MinistryMinistryof ofFinance Finance andand Public AdministrabonsAdministrations DirectorateDirectorate GeneralGeneral forfor Taxation,Taxation, issuedissued onon 1919 JuneJune 2013.2013. 106 23.8 InformationInformation onon thethe procedureprocedure forbr thethe recoveryrecovery ofof statestate aidaid declareddeclared byby thethe EuropeanLuropean CommissionCommission inIn relationrelation toto thethe “tax"tax leaselease system"system” forfor the financingfinancing of shipbuildingshipbulldlng QnOn 30 October 2013, theme BankBank receivedreceived formalformal notificationnotificalion from EumpeanEuropean CommissionsCommission's Directorate General forfor CompehbonCompetition informinginformingUnicaja UnicajaBanco Bancoof ofthe thedefinifive definitiveDecislon Decisionadopted adoptedon on17 17July July2013 2013 onon thethe taxtax regimeregime applicable toto certaincertain financefinancelease lease agreementa,agreements, also known asas methe Spanish tax lease system,system, classifyingclassifying the system as "statestate aid"ai& andand urginguring Spain to taketake stepssteps toto recoverrecover thethe aidaid fromfrom theme beneficiaries,beneficiarias, whichwhich include Unicaja Banco. The Bank has filed an appeal againstagainst thisthis Decision,Deciston, together with Spain and other institutions affected,affected, atat methe European Court of Justice, which is pendlngpending a ruling. Although thethe TaxTax AdministrationAdministrationState StateAgency Agencyhas hasalready already iniflatedinitiatedprocedures procedures forforme the recoveryrecovery ofof misthis statestate aid, ffiethe lacklack of informationinforn,ahon onon methe specific criteria applicable in ffiethe calculationcalculahon predudesprecludes any quantificationquantificaflon of thethe potential efl’ect,effect, ififany, any,on onmese these consolidatedconsolidated annualannual accounts,accounts. Nonetheless,Nonetheless, thethe Bank’sBank's directors andand taxtax advisors consider thatthat theme possibilitypossibility ofof significantsignificant liabilwesliabilitiesañsing arisingfrom frommis thispmcedure, procedure, inin addWonaddition loto methe amounts already provisioned, is remote. 24. LlquldltyLiquidity rlskrisk Individual balances balancesof ofthe the ParentParent representrepresent substantially alIallof ofme the consolidatedconsolidatedassets, assets, belngbeing representativarepresentative thethe informationInformation brfor Ilquidityliquidityrisk riskof ofthe thefinanclal financialinstwments instruments inin individualindividualterms terms brforthe the Group.Group. The Asset andand LiabilityUability and Budget CommitteeGommittee (COAPP), formedformed byby seniorsenior executNes,executives, is responsibleresponsibie forlar managing hquidityliquidityiisk riskaffectng affectingme thebusiness businessand and methe financial instumentsinstrumentsfo to ensureensure matthat thereffiere isis sufficientsufficlent liquidityliquidityat atalI alltimes timesto tomeet meet paymentspayments onon itsits Ilabilitiesliabilitiesat atme the duedue datesdates without undermining Unlcaja’sUnicaja's capacltycapacity toto respond rapidlyrapidly toto strategicstrategic market opportunites.opportunities. Liquidity ñsk riskIs iscentralized centralizedusing usingintegrated integratedsoftware softwaretools toolslo to analyseanalyse Iiquidityliquidityñsk riskbased based onon cash flowsfiows estimated by the GroupGroup for assets andand liabilities,Ilabilities, and on collateral or other instruments availableavailable toto guaranteeguarantee additional sourcessources of liquidityllquidity as as neededneeded (e.g.(e.g. liquidityIlquldity uneslines not used byby thethe Bank).Bank). TheThe Bank'sBank’s liquidityliquidity risk position isis determineddetermined byby analyslnganalysinga a vañetyvarietyof ofscenarios. scenarios. TheseThese analyses taken intointo account bothboth ordinaryordinary market circumslancescircumstances and extreme conditions that could ahsearise and couldcould affectaffect thethe flowflow of collectionscollections and payments,payments, duedueto to marketmarket factorsfactors oror internalintemal factorsftctors within methe Bank. 107 ______ TheThe followingfollowingtable tableshows showscontracted contractedmatuñty maturitydates datesst at31 31 DecemberDecember 2013:2013: Thoiaand.Thousandsof ofeuros euros BetweenBetween BatwnnBetween BebsaenBetween1 1 AscetaAssets UptalUp to 1 tanda1 and 3 3andlZ3 and 12 andsand 6 MoraMorethan than DamaDemandcd and and monitimonth mondusmonths mocil,.months yenyear.65 ya.rs year. undetannlnedundetermined TotalTotal - - - - CnhCashatW andbalances balancesst atcentral centralbank, banks - - -- 19131551 913 155 19131551 913 155 FInanclalFinancialasceta assetsheld heldfo, fortmdlng trading 998998 261261907 907 1313 372372 - 276276 277277 DebtDebtsecurities securities 998998 - -- 261907261 907 1337213 372 - 276277278 277 OtherequltyOther equityInstrumente Instruments - - - - Avallablejor-salaAvailable-for-salefinanclal financialasista assets 18521 852 24962 496 65026 502 15802071 680 207 224267224 267 531531225 225 22446 446549 649 DebtDebtsecurilles securities 18521 852 24962 496 65026 502 16802071 680 207 224267224 287 11915 915324 324 OffierOtherequlty equityinstrumente instruments - - - 531531225 225 531531225 225 Loan.Loansmd andracelvablo. receivables 46866124 656 612 36906613 690 651 35765233 676 623 66186095 616 606 1104134911 041 349 11268 266490 490 2929839 839261 261 Loan.Loansand andadvances advanceslo tocredit credit hsbb,UoosInstitutions 29852922 985 292 10783621 078 362 16911 691428 428 101101 921921 2858928 569 106850108 650 55 994994 422422 Loan.Loansmd andadvanose advancesto tootl,er otherdebtora debtors 16713201 671 320 26117992 611 799 18637901 863 790 49748464 974 846 1051340010 513 400 11466401 148 640 2222761 781795 795 DebtDebtsetuñlie5 securities - 520520 2330523 305 539839539 838 499380499 380 - 11063 063044 044 lnvesbnentinvestment porff&loportfolio haidheldto tomatuñty maturity 105622106 622 8964159 641 835696836 596 31929603 192 960 1364813 848 -- 44239 239657 667 DebtDebtsectuffie securities 108622106 622 6964189 541 638596836 596 31929603 192 960 1364813 848 - 44239 239667 667 - - - - lnvtsbn.ntsInvestments - - -- 716734716 734 716716734 734 InsuranceInsurancecontracta contracts llnkedlinkedte topendan. pensions • - • - - 132097132 097 132132097 097 Propeity,Property,pl.ntand plant andequlpment equipment - - - - - 630630376 376 530530376 376 Ohio,Otherasceta assets - - • - - 11629291 152 929 11529291 152 929 TotalTotalasean assets 47664 766064 084 37826183 782 818 44214 421621 621 1076166010 751 680 1129211 292636 835 62316 231006 006 4124604541 246 046 ThoLaandsThousandsof ofculos auras 8.twnnBetween BetwnnBetween UabllWnLiabilities UptolUp to 1 land31 and 3 3andl23 and 12 BetweeniBetween 1 Mor.Morethan than D.mandDemandand and moniuimonth monffismonths month.months aludand6 6 55ynrt years undatannlnedundetermined TotalTotal 11t5Iyears FlnanchalFinancial llabIlitiesliabilities heldheldfortredlng for trading FinanchalFinancial llablIlthe.liabilities stat amartizedamortized costcost 72644497 264 449 915289916 289 56910346 691 034 1171358411 713 564 33603 360872 872 96919 691593 593 3683638 636601 801 DepositeDepositsfmm fromCentral Centralbanks banks 6262045 045 -- - 45000004 500 000 - 45620454 562 045 DepositeDeposits fmmfrom creditcredit Insututioninstitution 11248 246608 608 1148711 487 3223032 230 336727336 727 7451274 512 6547785 477 17690411 769 041 DepositeDepositsfrom fromornar othercredilora creditors 59361195 936 119 091091321 321 48884 688249 249 55807515 560 751 33028 026367 367 88798 796653 653 2828899 899460 460 DebtDebteecudtlas securities 1717599 599 1243912 439 917011917 011 12732981 273 296 259259993 993 3762037 620 26179602 517 960 SubordinatedSubordinated hablillasliabilities 7878 4242 5354453 544 4278542 78B - - 9645296 452 OtherOther fna,ahfinancial liablhtiesliabilities - - - - 791791 043843 791791 843B43 - HedglngHedgingderivativos derivatives 45804 580 -- 46804 580 PmvlsbnsProvisions - - 352599356 599 358599358 599 DfiuerlhabIIWnOther liabilities 525781526 761 526761526 761 TotalTotalIlablIltise liabilities 72697 269029 029 915915289 289 56916 691034 034 1111713 713564 564 33603 360872 872 1057694310 576 943 3939 626626731 731 DlffereDifferencenc e (2(2502 602945) 945) 28572 867629 529 (1(1259 269413) 413) (( 961961684) 884) 79317 931 964964 1 ( 4346937)4 345 937) 11719 719314 314 ThousandsThousandsof ofeuros euros BetweanBetween BetweenBetween Memor*ndumMemorandumaccount, accounts UptolUp to 1 11anda and 3 aandlZ3 and 12 SMwssnlBetween 1 MoreMoretlian than D.mandDemandmd and moihmonth monü,smonths monhusmonths mdand6 6 Sysar.5 years undetwnlnedundetermined TotalTotal years‘tare ContingentContingent dsksrisks - 886839866 839 886839886 839 Draw.bleDrawable bybythlrd thirdparVos parties - 11789 789299 299 11789 789 299299 AvailableAvailablelmmediateiy immediately - 11238 238448 448 11238 238440 446 WIthWithcondhlonahly conditionally 550851550 851 550851550 651 TotalTotalconungent contingentlIabllftlea liabilitiesmd and commlb,ienbcommitments - 26761382 676 138 26761382 676 138 108108 ______ The folIowngfollowingtable tableshows showsconfracted contractedmatuhty maturitydates datesat at 3131 DecemberDecember 2012:2012: TbausandsThousands ofof .me.sums BetaeenBetween Between Between 1 AsaeteAssets UptolUp to 1 land31 and 3 3andl23 and 12 andsand 6 MareMore thanthan Demand mdand month montitemonths montemonths yeanyears , 65 yearsyears undetennlnedundetermined TotalTotal Casi,Cash arWand balances atcentnlat central banksbanks - - -- 518419518 419 518419515 419 FlnanclalFinancial ascetaassets h&dheld forfor tradlngtrading 1717 24952 498 583683 112712112 712 62 - 116662115 862 DaDebt sacuñileasecurities 17 24982 498 583583 112712112 712 5252 -- 115862115 862 OtherequltyOther equity InstrumentaInstruments - - - - Avaflable-for’saleAvailable-for-sale financlalfinancial usaassets 356984366 984 366610355 610 1784817 648 891481891 481 222690222 890 724048724 048 25785812 678 661 Debt aecwffiessecurities 365984356 984 355610355 610 1784817 848 891481891 481 690222 690 -- 18546131 854 613 OuierOther equltyequity lnstrumentaInstruments - - 724 048 724724 048048 LoanaLoans mdand recalvablesreceivables 40248464 024 846 23936542 393 684 23316242 331 624 62068906 206 890 1232797612 327 976 1 069069 628628 2836464828 364 548 LoansLoans andand advancesadvances to credit lnstiluflonsinstitutions 1 242242 379379 497497 901901 8652166 621 204753204 753 37963 796 103073103 073 21385232 138 523 LoansLoans andand advancesadvances loto otherother debtors 27774672 777 467 1 895895 763783 22449032 244 903 55925015 592 501 1164911411 649 114 968555956 555 2525 126 323323 Debt securities 50005 000 -- -- 409636409 636 675066675 066 -- 11 089089 702702 lnvesbneotInvestment poilfolloportfolio heldheld teto matirttymaturity - 21842 184 834117834 117 46727724 672 772 813309813 309 -- 63223826 322 382 Debt securttiessecurities - 21842 184 834117834 117 46727724 672 772 813309813 309 - 66 322322 382382 InvesúnentaInvestments ------781781 031031 781781 031031 InsurenceInsurance contractacontracts Hnkedlinked loto pensIonepensions - - - - - 119366119 369 119 369359 Pmprty,Property, plantplant andand equlpmentequipment - - - - - 649272549 272 649649 272272 Qth.rOther casetaassets - - - - - 11776281 177 628 11771 177 628528 TotalTotal asaeteassets 43918474 391 847 27639762 763 976 31840723 184 072 1188386611 883 865 1336402713 364 027 49392854 939 286 4061706240 617 062 ThouaandaThousands ofof eurossums Between Between Between 11 UabllfflesLiabilities UplolUp to 1 land3I and 3 33 andand 12 aMand 66 yenyears More tanthan Demand ¡udand month montamonths montemonths 55 veanyears undateuninedundetermined TalTotal FlnanclalFinancial Ilabliluesliabilities heidheld lotfor tradlngtrading ------FinanclalFinancial Ilabllltlesliabilities mtat amorUzedamortized cosicost 62003145 200 314 13996141 390 514 37636263 753 626 1448014 460 056056 41614 161 604604 99 116116 932932 3838 092092 045046 DepositaDeposits fromfromCentral Central banksbanks 17 888888 66 000000 000000 - - 66 017017 688688 DepositeDeposits from credit institudoninstitution 390390 582582 1 580560 4141 229229 344114344 114 7979 63;637 8274882 748 939939 870 DepositeDeposits fmmfrom othercmditusother creditors 47384784 738 478 1 247247 268266 32363 236 591591 55 812612 473473 33 751751 967967 61051358 185 135 2626 971971 910910 DebiDebtsecuñtles securities 5293352 933 150643150 643 423423 836836 22 149 590890 330330 000000 4242 260 31493 149 562562 SuboidinatedSubordinated liabilitiesllablities 633633 4545 5151 970970 153 579 - 206208 227227 OtherñnnncialOther financial IiabilWesliabilities - - - 8067891:106 789 806789606 789 HedglngHedging derlntlnsderivatives 1200012 000 • - -- 1200012 000 PreviaProvisionslaos - - - 360485350 488 360488350 488 Other llablIlUesliabilities 639316539 315 639316539 316 TotalTotal IlabllWesliabilities 62123145 212 314 1 399399 614514 37533 753 626626 1446014 460 055056 41614 161 604604 10 006 736735 3899384936 993 849 DlfferenceDifference (820457)( 820 467) 11 364482364 482 (( 569 654) (2676201)( 2 576 201). 92024239 202 423 (( 55067450) 067 460) 1 623623 213213 ThousandeThousands ofof eurossums Between Between BetweonlBetween 1 M.mor8ndumMemorandum accauntaaccounts UptolUp to 1 land31 and 3 3and123 and 12 andandsyeare 5 years More Ibanthan Demand amiand moni),month montamonths manthemonths 56 yenyears undetennlnedundetermined TotalTotal GontingentContingent dsksrisks - 1 088088 665665 1 088088 665666 Drawable by thlrdthird pMiesparties - - 21540272 154 027 21640272 154 027 - AvailableAvailable immediatelyimmediately - 1 448448 700700 11 440448 700700 Mti,With cendilionallyconditionally 705705 327 705705 327 TotalTotal contingentcontingent IlabIllUesliabilities amiand commlbnent,commitments 33 242 592692 33 242 892692 ii •••••11; =1•1•11 111 109log These maturitymatuñty statements are basedhaced onen theme followingfollowing criteria:cfiteña: o The data presentedpresented areare static;staUc; estimatesesUmates dodo notnot includeinclude business growth scenados,scenarios, early repayments or loan renewals,mnewals, consideringconsideñng only contractual fiowsflows fromfrom Ioansloans actuallyactually arrangedarranged andand recognized Inin methe Bank'sBank’s balance sheet. o Accounting datadata are presented, i.e. theythey dodo notnot systematicallysystematically reflectreflect cashcash flowsfiows fromfrom operations,operations, unlike operations cardedcarried at fair value. All balances without matudtymaturity dates,dates, or with matuñtiesmaturities based on a counterparty decision, are Includedinciuded Inin theme categoriescategories "held“held atat call"cali’ or "undetermined".“undetermined”. o In theme casecase ofof derivativedeñvaUve financialfinancial Instrumentsinstrumente (me(the vast majoritymajoñty of which are subjectsubject to marginmargin requirements), methe Unicaja Banco Group reportereports methe esUmatedestimated nextnext netnet mar9inmargin sewementsettlement asas aa cash oufflow.outflow. o• The cash outflowsoutflows Includedincluded inin the aboyeabove maturitymatuñty table are the amountsamounts stipulated In the relevant contracta,contracts,and and amare based on past experienceexpeñence andand the Group'sGroup’s currentcurrentsituation, situation, so that theme probabilityprobabllity of eadyearly cancellation of depositedeposits or other liabilityliabllity posiüonspositions isis deemeddeemed very low. o The UnicajaUnicaja BancoBanco GroupGroup providesprovides informationinformation onon contingentcontingent exposuresexposures (including(includlng financialfinanclal guarantees) andand amounteamounts drawabledrawable byby thirdthird partiesparties inin methe aboyeabove table.tabie. A significantsigniflcant part of the contingent exposuresexposures WIIIwill machreach maturity withoutwithout generatinggenerating anyany payment obligafion,obligation, soso that the total balance of thesemese commitmentscommibnents cannot be regarded as anan actualactual futurefuture needneed forfor financingflnancing oror liquidityllquidity teto be grantedgranted toto thirdtNrd partiesparbes byby theme Group.Group. TheThe UnicajaUnicaja Banco'sBancos liquidityllquidity managementmanagement scenariosscenaños Include thethe utilization byby thirdthird partiesparties ofof dmwabledrawable amounts although,although, basedbased enon past experience, thismis does not significantlysignificantiy afctaffect methe Group'sGroup’s structuralstwcturai maturity profile. o Flnally,Finally, thethe aboveaboye maturitymaturity tablatable doesdoes notnot Includeinclude forecastforecast futureMure cashcash flowsflows becausebecause theirmeir presentation wouldwould requirerequire reterate curve and liabilityliabillty structure scenañosscenarios andand estimates,estimates. However, the Unicaja Banco GroupGroup doesdoes notnot considerconsider thismis Informationintermation to be essentialessential forter thethe analysisanalysis ofof itsita liquidityliquidity risk,ñsk, since interest expense and similarsimilar charges areare notnot significantsignificant in comparisoncompañson with methe balance sheet total and are well below theme interest generetedgenerated by itsita asseta.assets. The GroupGroup managesmanages liquidityllquldity risk to ensures that itsIta paymentpayment commitmentscommitmente amare honoured,honoured, by adequatelyadequateiy controlllngcontrollingcash cashflows flowsami and methe ascetaassets matthat are available to covercover anyany liquidityliquidity mismatches. EleThe Group thus considers matthat the maturitymatuñty tables present the most relevantrelevant picturepicture of itsita liquidity situationsituation ataat a givengiven date.date. The BankBank establishesestablishes productproduct policiespolicies and objectivesobjectives addressingaddresslng both ordinaryordlnary market circumstancesclrcumstances amiand contingency plans for stress or crisis situationssituations occurringoccurringlntemally internallyor orin inme the markelmarket. TbreeThree basic approad,esapproaches are combined teto meet thesemese objectives: - Asset management: analysis of maturities,maturites, possibilftypossibilityof of sale,sale, degree of liquidity,liquidity, potential use as coliateral,collateral, among other aspects. - LiabilityLlability managementmanagement analysisanalysis ofof maturities,maturities, diversificationdiversification of business sources, maturitiesmatuñties that differ from contractual maturities, behaviorbehavior inin thethe eventevent of interestinterest reterate movements, etc. - Market access: financingflnanclng capacitycapaclty In wholesale markets and timetime requiredrequlred toto obtainobtain suchsuch financing,flnancing, among other aspects. 110lb TheThe Group ensuresensures thaIthat its consolidatedconsoildated balance sheet assetsassets includeinclude aa significantsignificant volumevolume of liquldliquid assels,assets, allowingallowingliquidity liquidityñsk riskto tobe beeasily easilymanaged, managed,the themain mainliquid liquidassets assets being:being: - BalancesBalances held at callcali with centralcentral banksbanks and credit institutions.instftuflons. - AssetsAssets acquired underunder short-termshort-termrapo repoagreements. agreements. - FixedFixed incomeincomesecurities securities discountablediscountable alat thethe European Central Bank. - ListedListed equityequitysecurities. securities. TheThe GroupGroup sisoalso has the capacity to issue coveredcovered bondsbonds andand territorialterritorial bonds to obtainobtaln new fundingfundlng líifthe the needneed adses.arises. 26.25. FaIrFair valuevalue 25.125.1 FairFair valuevalue ofof financialfinancial assetsassels andand liabilitiesliabillUes notnot cardedcarried atal fair value TheThe estimate of the fair valuevalue at 31 December 2013 and 20122012 ofof theffie financialfinancial assets andand liabilitiesliabilities carriedcarded inIn thethe consolidated balance sheet atat amortizedamorUzed costcost isis performedperformed as follows:follows: - ForForfinancial financialassets assets andand liabllitiesliabilitiesreferenced referencedto toa avariable variableinterest interestrate, rate,the the GroupGroupconsidere considers thatthat Iheirtheir carryingcarrying amountamount does notnot differdiffer significantlysigniflcantly fromfrommeir theirfair fairvalue, value, asas methe initialinitial counterpartycounterparty creditcredit dskrisk condWonsconditions havehave not vadedvaried significantly.signiflcantly. - InIn methe casecase of un-hedgedun-hedged fixed-ratefixed-rate finandalfinancialassets assets and liabilities,liabilWes, teirtheirfair fairvalue valueeach each yearyear isis obtalnedobtained byby discounting cash cash flowsflowsat at Ihethe risk-freeñsk-free interestinterest raterate (the rate forbr SpanishSpanish governmentgovernment securities)securities) forfor eacheach pedod,period, adjustedadjusted toto account forfor methe creditcredit spreadspread on the instrument.instrument InIn viewview ofof thethe matuñtymaturitypeñod periodand and relativerelativebalance balance ofofffiese these lnstwments,instruments, thethe difference betweenbetween ffieirtheir amortizedamortized costcost andand fair valuovalue isis notnot slgnificantsignificantat at31 31December December2013 2013 andand 2012.2012. - UnderUnder thethe headingheading of Credit lnvestmentsInvestments isis esUmatedestimated that merethere areare nono significantsigniflcant differences betweenbetween ffieirtheir carryingcarrying valuevalue andand ffieirtheir fair valuevalue sincesince the InstitutionInsUtution hashas quantifiedquanUfled methe level ofof thethe provislonprovision forfor creditcredit ñskrisk brfor lsits creditcredit ñskrisk portfolioportfolioin inaccordance accordance wimwith thethe accounUngaccounting norm applicable andand it consideraconsiders this sufficientsuffident to to covercover thisthis creditcredit risk.risk. Nevertheless, in an environmentenvlmnment of economic andand flnancialfinancial crisiscrisisand and sincesince therethere is notanot a market for Ihesethese financial assets,assets, the amountamount forfor which theythey couldcould bebe exchangedexchanged between interestedinterested partiesparties couldcould differdiffer forforthe the netnet valuevalue registered.registered. However,However, Ininan an envlronmentenvironment ofofeconomic economicand and financlalfinancialcrisis crisislike likethe thepresent, present,and andsince since therethere is no market for suchsuch financial asseft, assets, thethe amount byby whichwhichthe the assetsassets could be exchanged between Interested parties may differdifferte tothe the carryingcarrying amountamount. 25.225,2 ListedListed instrumentsinstmments atat amortizedamortized cosIcost AtAt 3131 DecemberDecember 20132013 and 2012, frathe estimated fairfair value of financial asselsassets andand liabilitiesliabilities carried stat amortized cosIcost Inin thethe balance sheetsheet whilewhlle listedusted onon marketsmarkets doesdoes notnot differdiffer significantlyslgnificantly from thethe canyingcarrying amountsamounts of thethe instmments.instruments. However,However,in inthe the speclflcspecificcase case ofof debtdebt securitiessecurities recognizedrecognized inin thethe item Loans'Loans and receivables',recelvables’, fair value cannotcannot be determineddetermined InIn aa sufficientlysuffic’ientiy rellablereliable manner,manner, since thereIhere Isle nono sufficientlysufficientiy liquid active market brfor mesethese Instruments.lnstmments. ItIt shouldshould be noted thaIthat the Group has nono plans toto holdhold them forbr tmding.trading. 111 Set out below is a breakdown at 31 December 2013 andand 20122012 ofof theme carryingcanylng amountamount and fairfair value of theme Unicaja Banco Group'sGroups financialflnancffil Instrumentsinstrumente cernedcarried at amortized cost thaithat are listedUsted on markets:markete: Thousands of euros r. 2013 2012 Section of the balance Type of lnstrumentInstrument Book valuovalue FairFalr value BookSook value Fair value (*) (*) Credit investmentsnvestments SecudtiesSecurities representing debt 11081 108 644 (*) 1 089 702 (*) Held•to-maturityHeld-to-maturity Investmentslnvestments SecuñtlesSecurities representing debtdebt 4 242 658 4 382 525 6 325 981 86 356 087 B FinanclalFinancial liabilitiesllabilties at Marketable debt securitiessecuñiles amoytizedcostamortized cost 25036462 503 646 25036462 503 646 31221013 122 101 31221013 122 101 (*) (*) The fairfair value ofof thesethese instrumentsinstrumente cannot be determineddeterminad inin aa sufficientlysufflciently rellablereliable manner. 25.3 FinancialFinancial instrumentsinstrumente carriedcarñed atat costcosi becausebecause therethere isis nono activeactive market. The equityequity instrumentslnstwments in the portfolioportfoflo ofof avaflable-ftr-saleavailable-for-sale financlalfinancial asseftassets ffiethe fairfair valuevalue of which cannot be determined in a sufficientlysufficientiy reliable mannermanner are carriedcarnied In the UnicajaUnicaja BancoBanco Group'sGroups consolidatedconsolidated annual accounts atat cosi,cost, netnet ofof anyany impairmentimpairment loaseslosses calculatedcalculated asas descñbeddescribed Inin NoteNote 2.7.2.7. The consolidatedconsolidated canyingcarryingamount amountof ofmese theseequity equityinstrumente instrumentsat at31 31December December2013 2013and and 20122012 totals € 176,014 thousandmousand and €€ 136,277136,277 thousand,thousand, respectively.respectively. TheThe followingfollowing shouldshouid bebe notednoted inin connectionconnection withwith mesethese instruments:instrumente: o No information is disclosed inin thethe notes to the consolidated annualannual accounts onon thethe fair valuevalue of the instrumentsinstwments since it cannot be reliably calculated. o These equity instrumentsinstrumente havehave no listed pñceprice on active markets or reasonable measurement of fair value (i.e.(Le. itit is¡a notnot possibleposslbie to reliably apply a cash-flow discounting method,method, aa comparable company muftiplemultiple oror an adjustedadjusted equity value thatthat isis sufficientlysufficientiy objective),oecflve), and no marketmarket transactionsflnsactions or acquisition bidsbids havehave recenfiyrecently beenbeen completedcompleted oror made.made. ThemThere is¡a no sufficientlysufficientiy liquid activeactive marketmarket rfor thethe instrumenteinstruments inin ffiisthissituation. situation.Hawever, However, thethe GroupGroup does not plan to hold them brfor trading ortoonto seilsell or dispose of thomthem by other means. 112 25.3 FairFair valuevalue ofof thethe financialfinanclal assetsassets andand liabilitiesliabilities registeredregistered atst fairfair value The foilowingfollowingshows showsa abreakdown breakdownof ofthe thefair fairvalues valuesof ofthe theheadings headingsQn onme thebalance balancesheets sheets asas alat 31 December 2013 and 2012, divideddMded by classes ofof assetsasseft andand liabilitiesliabilities andand atst thetite followingfollowing leveis:levels: o Level 1:1: FinanclalFinancial insfrurnentsinstrumentsffie the fairfair valuevalue ofof whichwhich isis determineddetermined byby takingtakingthe the quotedquoted prices onQn active marlçetsmarkets oror ffiatthat correspond to recentmcent transactionstransactions (latest twelve months) thatthat have been updated to the current conditions.conditlons. o• Level 2:2: FjnancialFinancial instrumentsinstrumentsthe the fairfairvalue value ofofwhich whichis isestirnated estimatedQn on thethe basis of quoted prices inIn organised marketsrnarkets forfor similarsimilar instrumentsinstrumente or applyingapplying valuation technlquestechniques inin whichwhich allaB the significantsigniflcant inputsinputs ernployedemployed areare based uponupon datadata thatthat areare directlydireclly orar indirectlyindirectly observableobservable on thethe rnarket.market. o LeveiLevel 3:3: Financial instnjmentsinstrumentsthe the fairfair valuevalue ofof whichwhich isIs estimated onon theme basisbasis ofof valuationvaluation techniquestechniques in whichwhichsorne some inputsInputsare are notnotbased based Qnon daladata observable on methe market. Thousands of euros 31 de diciembrediclembra dede 2013 FalrFair valuevalue SookBook valuovalue Total Level 1 Level 2 Level 3 Asset Casi,Cash and balances with central banksbanks 1 913913 257257 1 913913 257 - 1 913 257257 - WorkingWorking portfolio 291 771 291 771 264 931 26 840 - Fixed lncomeIncome 277 106 277106277 106 258481256 481 2062520 625 - Variable Incorneincome 8 428 8 428 84288 428 - - DerivatIvosDerivatives 6 237 6 237237 22 6 215 - FinanclalFinancial assetsassets availableavallable for salesale 2 390 023 2 390 023 1 937 780 132 858 319 385 Fixed Incorneincome 1 951 956 1 951 956 1 819 098 132 858 - Variable income 438438 067 438438 067 118682118 682 - 319 385 Held-to-rnatudtyHeld-to-maturity lnvestmentsinvestments 42426584 242 658 44 382 525 43134 313 857 64 224 44444 444 Debt securitlessecurities 42426584 242 658 43824 382 525 43138574 313 857 6422464 224 44444 444 Coverage derivativosderivatives 543 745 543 745 - 543 745 - LlabllltyLiability Wo4dngWorking partfotloportfolio 1198111 981 11 981 738738 1124311 243 - DerivatIvosDerivatives 1198111 981 11 981 738 1111243 243 - Coverage derivativosderivatives 4444 088 44 088 - 44 088 - 113 ______Total______ lbousandsThousands of ()tiroseuros 31 dode diciembre dode 2012 Fair valuovalue Book value Total Total Total AssotAsset CashandbalanceswlthcentralbanksCash and balances with central banks 518482518 482 518482518 482 518 482 WorklngWorking portfolloportfolio 124 833633 124 633 117404117 404 1 040 6 189 FixedFixedlncome Income 116767116 767 116767116 767 110 560 30 6 177 Variable lncomeIncome 5 754 5 754 5 754 DerivativesDerivativas 21122 112 21122 112 1 090 1 01010 12 FinanclalFinancial assets avallableavailable for sale 2 609 681 2 609 681 2 306 413 65 263 238 005 Fixed IncomeInterne 1 924 259 1 924 259 1 681 953 65 263 177 043 Variable Incomelncmne 665685 422 685 422 624 460 6096260 962 Held-to-matuñtyHeld-to-maturity invastmentsinvestments 86 325 981 6 356 087 5 695 745 323 003 337 339 DebIDebt secuñtisecurities 6 325 981 6 356 087 5 695 145745 323 003 337 339 Coverage derlvatlvesderivatives 745 061 745 061 745 061 LlabllltyLiability WorklngWorking perifolloportfolio 17 580 7 580 738 68286 828 14 DedvatlvesDerivatives 7 560580 7 580580 738 68286 828 14 Coverage dedvailvesderivatives 164 496 164 496 184496164 496 - Set out below are movementsmovemenft duringduring2013 2013 andand 2012 Inin theme fairfair valuevalue ofof theme differentdiffeient typestypes ofof financialfinandal instrumenisinstruments classedclassed inin LevelLevel3 3 underunder IFRSIFRS 13: Thousands of euros HeHeld-to-Id-te FinanclalFinancial ascetaassets maturltymaturity TradlngTrading portfolloportfolio avallableavailable for salasale lnvestminvestmentsente Debt DerivativesDerIvativos DerivativesDerivatIvas Debt EqultyEquity securitie.securities (active) (llablIltIn)(liabilities). securifiessecurities InstrumenteInstruments DebtDebt securitiessecuritie. Balance at 31/12120123111212012 6 177 12 14 177043177 043 6096260 962 337 339338 MdltlonsAdditions teto instrwnentsinstruments CasualliesCasualties of lnstwmentsInstruments ( 175)175) (23252)( 23 252) ( 6060 962)962) - Change Inin value - (23833)( 23 833) (45110)( 45110) TransffirsTransfers lavallevel (6 002) (12) (14) (129 958) 319 385 ( 76) Transfer teto investmentInvestment credit (287 709) Transfer to portfolioportfollo to-maturltyto-maturity investmentsInvestments Balance at 31/12/20133111212013 • 319385319 385 444 444 =11.111111R 114 ______ ThcusandsThousands of auraseuros Held-to-HeId-to Financialflnanclal assflassets maturitymatudty TradlnpTrading portfolioportfollo available for sale investmentslnvestmonts Debt DerivativesDerlvatives DerivativesDerivativas Debt Equity securitlessecurities (active) (liabilities)(llabIlities) securities InstrumentsInstrumenffi Debt securltiessecurities Balance atal 31/12/20113111212011 1414783 783 - - 449 264 4545949 949 367 638 AdditionsMditions loto instrwnentsinstruments 55322 322 - 131 588568 42504 250 Casuahies of instrumenls (14 783) - - 216) Casualties of instruments (14 783) - ( 5858961) 981) (157 216) ChangeinvalueChange In value 8 12 14 ((24478) 24 478) 1501315 013 69496 949 Transfers lavallevel 847 - - ( 2323 244)244) - Transfer loto Investmentinvestment credit - - - (181 368)388) - - Transfer loto porifollaportfolio to-maturityto-maturlty Investmentslnvestments - - - (115 718) - 115 716718 Balance at 31/12/20123111212012 681V 177 12 14 177IV 043 6060962 962 337 339 25.4 ValuaUonValuation methods used The following methodsmethcds were usedusad by the Unicaja Banco Group loto calculate filethe fair value of the main financial instrumentslnstwments recognized inin the balance sheet: • Debt securities: ibaThe fair value of listedlistad debt instruments is determinaddetermined on methe basis of iheirtheir pñceprice in officialofflcial marketsmarleft (Bank of Spain'sSpain’s Book-EntryBook-Enby System), AIAF, AIAF panels (credit institutions),nsUtuhons), or by applying pilcasprices obtained from informationinforrnation service pmviders,providers, mainly Bloomberg and Reuters, whose prices are builtbuflt using methe pricespilcas notifiednotifled by conffibutors.contributors. • EquityEqulty Instruments:lnsfruments: The fair value of listedlistad equity instrumentsinstrumente is determinaddetermined based on their price in offlcialofficial markets. The fair valuevalue ofof unlistedunlisted equityequity instrumentsinsfruments is¡s determineddeterminad taking intointo accountaccount independent expert valuations performed using Piethe foliowingfollowing methods, among others: o DiscountedDiscaunted cash flows (free operating cash flows or dividends),dividends), applying a discountdiscount raterata basedbasad on eacheach investee'sInvestees operationaloperational and financial exposure, calculated using a risk-freeñsk-ftee raterata and including a riskrlsk premium. o MultipleMuitiple ofof comparablecomparable listedlistad companiescompanies (EV/EBITDA,(EV/EBITDA, PER,PER, Price/BookPñcefflook value,value, Price/Premiums),PñcelPremiums), less an illiquidity¡lliquidity discountdiscount. o NAV (Adjusted Net Asset Value): ObtainedObtalned by adding capital gains,galns, calculated as the differencedifrerence betweenbetweenPie the market valuevalue and carrying amount of assets,assets, toto reportedreported shareholders'shareholders funds.funds. For ventureventura capital antilles,entities, NAV is¡5 calculatedcalculated byby thePie managementmanagement companies and generallygenerally estimatedesfimated applyingapplying EuropeanEuropean VentureVentura CapitalCapital AssociationMsociafion regulations and theme provisionsprvvisions of CNMV Circular 5/2000512000 (19 September). o Price resulting from market transactions oror acquisition bidsbids made or receivedrecelved near to the valuation date. 115 • DedvatlveDerivative Instrumente:instruments: The fair value ofof interestinterest ratemte derivativesderivaflves isis determined,determined, forfor optionaloptional financialfinancial instrumentsinstruments (mainly(mainlyswaps), swaps), byby discountingdiscounting futurefuture flowsflows usingusing impAedimpliedmoney moneymarket market curvescurves and the swapswap curve;curve; forfor optionaleptional interest-rateinterest-rate derivatives,dedvatives, generallygeneraliy accepted valuationvaluation methods basedbased on thethe Black-ScholesBlack-Scholes modelmadel andand implicitimpllcit volatiiityvolatilitymatrices matricesare areused. used. InInffie the casecase of dedvativesderivatives on equity instwmentsinstruments Dror stockstock marketmarket indicesindices contractedcontracted toto hedgehedge customers stwcturedstructured depositedeposits containing anan embedded derivative,derNative, and currencycurrency derivativesderivatives without optional componente,components, methe fair valuevalue ¡eis obtainedobtalned byby discountingdiscounting cash flowsflows estimated using forward curves for theme relevantreievant undedyingunderlyinginstrument, Instrument,Nsted listedon onme themarket; market;for foroptions, options,generaily generallyaccepted acceptedmethods methodsbased based onon methe Bla&-ScholesBlack-ScholesmDdel modelare are used,used, allowing optionsoptions onon mesethese underlyingundedying Instrumenteinstruments toto be valuedvalued applying aa ciosedclosed formuleformula andand using oniyonly marketmarket Inputs.Inputs.Where Where applicable,applicable, modelsmodels andand severitiesseventies in uneline withwiththe the marketmarket areare used toto calculatecalculate CVACVA and DVA.DVA. lnIn orderorder toto obtain Unicaja BancosBanco's apread,spread, genericgeneric spreadspread vs.va. swap curvescurves areare calibratedcalibrated onan aa recurringrecurdng basisbasis usingusing ratingsratinga forfor differentdifferent debt issuesissues byby SpanishSpanish financialÑianclal institutionsinstitutions withwith differing priodtypriorityleveis, levels,including includingsenior senior debtdebt. 25.5 FairFair valuevalue ofof property,praperty, plantplant and equipment On 1 January 2004, theme GroupGroup availedavailed itselfitseif of the provisiansprovisions of IFRSFRS 11 toto restaterestate the majoritymajodty ofof itsits realrealestate estate assets, generatinggenerating aa grossgroes gaingain ofof€ € 227,811 thousand. Subsequently, on 21 June 2013, revaluation reservesreserves recognizedrecognized under Bank ofof SpainSpain Circular4/2004 4/2004 relatingrelatingto to516 516own-use own-useproperties properties restatedrestated in methe amountamount of € 5485054,850 thousand, alreadyalready includedincluded inIn equity, acquired tax effects (Note 23.7).23.7). At DecamberDecember 3131 ofof 20132013 andand 2012,2012, methe Group consideraconsiders that ffierethere are nono significantsigniflcant differencesdifferences betweenbetween methe bookbook valuevalue andand methe fairfairvalue valueof ofViese theseasaete. assets. 26. Credit rlskrisk exposureexposure CreditCredit dskrisk refersrefers toto thethe losseslosses that theme EntityEntity would incurincur ininme the eventevent thatthat aa customer or counterparty failed toto comply withwithme the contracted payment obligations.obflgations. ThisThis riskrisk isis inherent inIn theme financialfinancial system'ssystems traditionaltraditional banklngbanking productaproducts (loans, credit lines,lines, financialfinancialguarantees guarantees provided) andand inin omerother typestypes ofof financialfinancialassets. assets. Credit riskriskaffecft affectsboth bothfinancial financialasseft assetscarried carriedat atamorUzed amortizedcost costin inme thefinancial financialstatements statementsand andasaete assets canjeOcarried at fair value. Irrespectivelrrespective ofof methe accountingaccountingmethod methodused used toto record methe Group'sGroup’s financial assets assets inIn mesethese financialfinancialstatements, statements, methe Group appliesapplies thethe carnesame creditcredit riskdsk control policiespoliciesand and procedures.procedures. TheThe Group'sGroup’s credit risk control policies,policies,methods methodsand and proceduresprocedures areare approved by the Entity'sEntity’s Board of Directora.Directors. TheThe Entity'sEntity’s Control Committee, AuditAudit CommftteeCommitteeand and Internallntemal Supervision andand RiskRisk ControlControl DepartnentDepartment areare responsible, among otheromer functions, for ensuringensuring compliancecompliance wimwithmese these palicles,policies, meffiodsmethods andand procedures,procedures, as wellwefl as forfor monitoringmonitoñng meirtheir adequacy,adequacy, effectiveeffficbve implementation andand regular review. TheThe Group’sGroup's credit riskdsk control activitiesactivitiesare are cernedcarried out by the Risk Control Department,Department, whlchwhich reportsreports toto thethe Group’sGroup's Planning and ControlControl Division.Division. ThlsThis unit isis responsible for implementing the credit riskdsk control policies, methods and proceduresprocedures approved by thethe Group'sGroup’s BoardBoard ofof Directors.Directora. ItIt monitorsmonitora counterpartycounterparty risk by establishing,establishing, amongamong others,others, mathe creditcredit qualityqualityparameters parametersto tobe be asslgnedassigned to methe Group’sGroup's operations, and credit ñskrisk hedginghedging requiremente,requirements, in accordance withwith theme Entity'sEnhty’s internalintemal policies and applicable legislation. The Risk Control UnitUnitis is alsoalso responsible for applying ffiethe Entity'sEntity’s dskrisk concentration limits, appwved approved byby methe Board of Directora.Directors. The GroupGroup hashas policiespolicies andand proceduresprocedures toto limitlimit counterpartycounterparty riskdsk concentrationconcentration forfor bothboth Individualindividual counterpartiescounterparties and groups of companies. TheThe GroupGroup establishesestablishes riskisk concentrationconcentration limitsimita taking into accountaccount factorsfactors suchsuch as thethe counterparty'scounterparty’s business activities,activities, geographicalgeographlcal location andand other common features.features. The Group perfornsperforms sensWvitysensitivityanalyses analyses toto estimateestimate ffiethe effectaeffects of possible changes inin non-performingnon-performing loan ratios inin eec),each ñskrisk cancentrationconcentration group, imposing limitelimitson onconcentraflon concentrationbased based on ifiethe findings.flndings. 116 After thethe segregation descñbeddescribed inin Note 1.1.2 of thismis consolidatedconsolidated report, financlalfinancialbusiness business hashas been transferredtransferred toto Unicaja Banco. The Bank did not maintainmaintain concentmtionsconcentrations ofof ñskrisk of a significantslgnificant naturenature to December 31, 2013 and 2012.2012. TotalTotal mortgage-backedmortgage-backed riskiisk remainedremained withwith theme privatepñvate sectorsector livingllving in Spain amounted to €12782848€12,782,848 thousandthousand and €13954543€13,954,543 thousand at 31 December 2013 and 2012, respectively.respectlvely. Therefore, UnicajaUnicaja BancoBanco hashas a 'CreditCmdit scoring"scoring system whichwhich considers theffie multiplemultiple characteristicscharactañstics of ffiethe operatonsoperations and the debtors, and, attendingaftending toto thethe past expedenceexperience and the best marketmarket practises, itit provides aa mechanism for methe Bank to distingulsh,distinguish, attendingattending toto creditcredit ñsk,risk,mose those operationsoperations ffiatthat may be formalized byby ffiethe Bank from thosethose that are notnot recommendedrecommended toto bebe formalizedformailzed byby theme Bank.Bank. TheThe criteriacñteña forbr distinguishingdistinguishing operations atat the contracting date,date, uslngusing this system, are approvedapproved by the Bank'sBank’s executivesexecutives and reviewreview mechanlsmsmechanisms are inIn place to ensure that theme system isis continuously updated.updated. TheThe maximum creditcredit riskriskto towhich whichUnicaja UnicajaBanco BancoLs Isexposed exposedLs ismeasured measured atat nominal valuevalue forforfinancial financialassets assets cernedcarried atat amortized costcost. The measurement ofof theffie Bank'sBank’s maximummaximum credit risk takes intointo account offsetofftet agreementaagreements concludedconcluded with certain counterpartes.counterparties. Notes 8, 9 andand 1010 provideprovide detailsdetalls ofof thethe Bank'sBanks maximummaximum creditcredit riskñsk exposure. As the Bank'sBank’s creditcredit riskñsk informationinformationprovided providedin inthese these notosnotes does notnot taketake intointo accountaccount guaranteesguarantees received,received, derivativederivativo financialfinancial instmmentsinstruments contractedcontracted toto hedge credit riskiisk and other similar hedgos,hedges, these datadate differdiffer fromfrom methe Bank'sBank’s internalIntemal analysesanalyses ofof exposure to credit risk.risk, Internally,internally,the the BankBankciasslfles classifiesfinancial financialassete assetssubject subjectto tocredit creditiisk riskbased based onon methe characteristicschamctehstics of each operation, takingtaking intointoaccount accountme thespeciflc specificcounterparty counterpartyand andguarantees guarantees obtained,obtained,among amongoter otheraspects. aspects. AcoruedAccrued uncollected financlalfinancialincome incomefrom fromfinancial financialassets assetsdeemed deemed toto bebe impaired asas explained in Note 2.7, and recognized inIn individualIndividualfinancial financialstatementa statementsof ofUnicaja UnicajaBanco Bancoat at31 31December December2013 2013 andand 2012,2012, amountedamounted toto €40519€40,519 thousandthousand and €31268€31,268 thousand, respectively.respectively. FinanclalFinancial assebassets ncoveryrecovery 15is consIderadconsidered remateremote Set out belowbelow are movementsmovemenis duñngduring 2013 and 2012 in theme Entity'sEntity’s impairedImpaired financialfinancialassets assets thatthat areare not cerdedcarried in methe balance sheet sincesince thethe probabilityprobabllity of recovery IsIs deemeddeemed to be remote, even thoughthough theme EntityEnfity has not discontinued actionsactions toto recoverrecover thethe amounteamounts receivable: ThousandsThousands of euros 2013 2012 Balance of flnanclaifinancial asaeteassets whicbwhich recovery laIs consideradconsidered to be remotaremote atljanuaryat 1 January 628355628 355 553609553 809 AddltlonsAdditions -- 214 527 148146 983963 Balance considered for remotaremote mcoveiyrecovery dudngduring thethe yearyear 214214 527 146 963 RecovedesRecoveries -- ( 74373)74 373). (72(72 417) Balances recovered duringdudng the year for operations'operatlons’ refinancing or mstmctuñngrestructuring - - Cash collections without addltlonaladditional refinandngrefinancing (17( 17 567)667) (( 8 155) AsaeteAssets awarded throughmrough foreclosure (16( 16 363) (12(12 023)023) Other causescauses ( 40 443)443) (52(52 239) Balance of financlalfinancial asaeteassets whlchwhich recovenyrecovery leIs considered toto behe remotoremote atat 3131 December 168768 509509 628628 355 InIn 20132013 andand 2012,2012, methe recoveryrecovery movementmovement Identifiedidentifiedas asfor for otherother causescauses" relatesrelates malnlymainlyto toloans loansthat thatcease cease to be treated as remoteremota recoveryrecovery assetsasseta whenwhen theme BankBank rulesmies outout anyany possibilitypossibllity of recovery. 117 L' TheThe net amount in filethe consolidatedconsolidated incomeincomestatament statement forforme theyears years 20132013 andand 20122012 asas a resultresuft of mavementsmovements inin thesethese asaeteassets amounts a negative amount ofof€ 2,3572357 thousandthousand andand €23,016€ 23,016 thousandthousand income,¡ncome, respectively.respectively. These amounts are duedue mainlymainly fo:to: o LoansLoans ffiatthat werewere classified duñng duringthe thepeñad periodas as remote'remote recoveryrecoveryassets” assets"and and hadhad not been provisioned; they they werewere therefomtherefore wriftenwritten aifoffifie the consolidated balancebalance sheet directlydirecUy through ffiethe incomeIncome statement,statement, havinghaving aa negativenegative impactimpact ofof€ € 19,92419,924 thousandthousand andand €€ 3117131,171 thousandthousand Inin 2013 and 2012, respectively.mspectively. o Loan ciassifledclassified asas remote"remote iacoveryrecovery assets”assets" inIn methe previous period in respectrespect of whlchwhich amountsamounts have been coflected,collected, havinghavinga a positivepositiveeifect effectof of€ 17,56717,567 thousandmousand and € 8,1558155 thousandthousand inIn 2013 and 2012, respectively. ExposureExposure foto soverelgnsovereign Hskrisk WithWith respectrespect toto soverelgnsovereign ñsk,risk, ffiethe breakdawnbreakdown ofof creditcredit flskrisk exposuresexposures toto central gavemmentsgovernments heidheld by the Group at December3l,December 31, 2013 and 2012 is¡sas as follows:foIiows: LI Thousands of euros „ 20132013 MatudtyMaturity FinanclalFinancial assobassets lnvestmentInvestment Loans and TradinoTrading perifolloportfolio avallableavailable forfor salesale perifolloportfolio advancaadvances Spain 237 220 1 023 782 2 750 070 - ltalyItaly - 321779321 779 - - Ecuador - - - 106 237220237 220 13455511 345 561 27500702 750 070 106 Thousands of euros 2012 MaturltyMaturity FlnanclalFinancial asaeteassets lnvestmentinvestment LoaneLoans andand TradlngTrading perifolloportfolio avallabieavailable for salesale portfolloportfolio advancnadvances Spain 58135 813 10886011 088 601 44646294 464 629 - ltaiyItaly - 324105324 105 - - Ecuador - - - 239 56135 813 14127061 412 706 44846294 464 629 239 Credit qualltyquality of debt securwessecurities Set autout beiawbelow isis the accountingaccounting classificationclassificafion byby portfolioportfolioof ofme the debtdebt secuñtiessecurities recognizedracognized in methe UnicajaUnicaja Banco Group’sGroup's consolidatedconsolidated annualannual accountsaccounts stat 31 December 2013 and 2012: Thousands of Duraseuros 20132013 20122012 Trading portfolio 277 106 116 767 AnanclalFinancialassets assets availableavallable forfor salesale 1 951951 956 19242591 924 259 Credit investmentsInvestments 1 108544108 644 1 089 702 Held-to-matudtyHeld-to-maturity InvestmentsInvestments 4 242 658 6 325 981 7 580 364 99 466456 709709 118 At 31 December 20132013 andand 2012, ffiethe balancesbalans includedinduded in methe aboyeabove table were not classed asas doubtful,doubtful, Impairmentimpairment adjustmentsadjustments havinghavingbeen been recognizedrecognized onlyonlyfor forgeneral generalcoverage coverage purposespurposes inin thethe amount of €€ 67 thousand and €€ 107107 thousand,thousand, respectively.respectively. SetSet outout belowbelow isis aa breakdownbreakdown ofof these securitiessecurities byby creditcredit ratingratlng at 31 December 2013 and 2012: TbousandsThousands of euros 2013 2012 RatingAaaRating Aaa 1212062 062 1111984 984 RatingAal-Aa3Rating Aa1-Aa3 135135106 106 329329979 979 RallngAl-A3Rating Al-A3 55901275 596 127 72198947 219 894 RatlngRating Baal-Baa3Baa1-Baa3 1 678 843 1 675 854 Rating Bal-8a3Ba1-Ba3 60846 084 3620636 206 RaUngBlCRating B1-C 2034520 345 1910519 105 No credit rating 131 797 163 687 75803647 580 364 94567099 456 709 Quality of Loans and advances to customerscustomen Pursuant to BankBank ofof SpainSpain CircularCircular 4/2004, theffie BankBank classifiesclassifies itsita performingperforning exposures as follows:follows: no material iiskrisk (pubIlc(publicsector sector andand cashcash guarantee), lowlow riskñsk (secured byby finishedfinished housing with LivLW below 80% and companiescompanies ratedretad AA oror higher),higher), medium-lowmedlum-low riskdsk (other(offier propertyproperty guarantees), mediummedlum riskdsk (personal(personal guarantee barringbarring consumption,consumpbon, cardscerda andand overdrafts),overdrafts), medium-highmedium-high risk (consumption) and high riskdsk (cards, overdrafts and over-limitover-limit b&ances),balances). These exposures breakbreak downdown as followsfollows atat 3131 December 2013 and 2012: Thousands of euros 2013 2012 No material dskrisk 1717792 792 449 1652016 520 068 Of which:which: Non-resident PublicPublio AdmlnlstratlonsAdministrations 299 691 299 489 Of which:which:Mvances Advanceson onpen&ons pensions andand saladessalaries 196 346 - Of wtflch:which:Personal Personal guaranteesguarantees 1 918 855 1 602 043 Of whlch:which:Guaranteed Guaranteed byby depositsdeposits amiand secudtlessecurities 2529325 293 31 038 LowdskLow risk 96945719 694 571 1003817110 038 171 Of wNch:which:Guaranteed Guaranteed by monetary policy operationsoperations 6335063 350 68 312 Of wtüch:which: OlberOther hlghly-mtedhighly-rated companlescompanies 18 477 2060720 607 Of v.tilch:which: SecuredSecured by real property 96127449 612 744 99492529 949 252 Medlum-lowMedium-low iiskrisk 1 878676 670 2 216215 666 Of wfiich:which: FinanceFinance leasesleases 6 944 66296 629 MedlumMedium risk 26643542 664 364 3 550 846 Of wNch:which: OtherOther operatlonsoperations enteradentered liiin ReglsterRegister of Forward SalesSales of Moveable PmpertyProperty - - Medlum-hlghMedium-high rlskrisk 827 853 1 413 567 Of wNch:which: AcquisftlonsAcquisitionsof ofgoods goodsami and servlcesservices 113 764 165 555 of wfilch:which: FinanclngFinancing ofof landland forfor propertyproperty developmentdevelopment or of property constwctlonconstruction 714 089 1 248 012 HlghHigh rlsKrisk 225 720 222 252 32 88113131 GV627 33 960 570 119 ______ RIskRisk concentratlonconcentration byby actlvltjactivity andand geognphlcgeographic anaarea SetSet out below isIs the canyingcarrying amountamount ofof thethe Unicaja Banco GroupsGroup's total flnancingfinancinggranted grantedto to customeíscustomersat at 3131 DecemberDecember 2013 andand 2012,2012, excludingexcluding exposuresexposures toto publicpubHc administrations,admlnistmUons, broken dawndown by counterparty type,type, colateralcollateral typetype andand LWLTV rallo.ratio. ThounndsThousands oleatosof aurae LIVLTVRallo Ratioof ofcredit creditwlth withreal reelpua.intee guarantee(7) (fl EnfldINEstmading ExcndlnuExceeding EzceedinaEllCieding NotNot 40%butnot40% but not •O%tnd60% and 80%indSO% and OfOfwhlch: within OfOfwhlch: which: ncndlngaxes..ling •s..dIn9exceeding II..icesDr orlasso. oror McØ.i,IIklieg, buirOther orequ.Iretypd oriqualor equal squatqualto to equalquaIto to hcadlnçExceeding any,c..t31n12013Balance at 31/12/2013 Toan.)Total fel cofl.tnl(t)colletaral (a) couanM.Icoadarsial 40%40% -.. 30%50% 100%1tir% 100%100% FjnanÓgInsItuDon.Flnencid irwItutiorts 38249543 524 954 1013410 134 3464623 495 452 96757475 474607 43864 385 - - 344833 495 483 taflrw,dNon-firtindanLanIn conparaes midand sag bidets 548465 484 893 23479112 3471311 7557a75 6715 987450 9500279501127 3261326 180 178123175 123 37033 703 PmpshyProperty constructionnSUJIDn and and devslopmentdevelopment (b)(b) 11 354354 894894 11 035035 835836 1557915 5713 242242 880850 47D473 052062 197197 157157 141141253 263 7272 CMIcm en:Inseamenglneedng oarabuclionconsmicuon 418418 026028 88458 845 20782 078 22 882E02 70537 953 S30530 385385 0393 OmorpurpososCther purposge 33771 771773 773 11 303231303 231 5792167 921 721721708 709 472472 22822 128125 4994129 3446534 45.6 35383 535 LargoLugs companeseccripania (o)(C) 11275 275583 583 69453513 453 - 3030 2082123 3939247 247 - SMESSada andInd solosole nderstraders(a) (c) 2438190243E 190 12337781 233 775 5792157 921 691691502 502 433433675 575 125499125 499 3448534 455 35383 638 OthrOtherhouseholds hominoids aridend ncn-fitralcirDfit ItnsInd/talon'31RJ1J lining householdshouul’dds (ISFLSH)(16FLBH) 1161042311 570 423 1068376310 683 753 3904239 042 25724872 572 457 34867D3 453579 43467604 3451750 345150345 150 1691 5813 HsSJfl9(d)1-tousal9 (d) 1034874610 348 746 10tC944810 009 4413 25172 517 21909212 190 921 325a1543 258 154 42436824 243 17152 318664318 664 344344 C1SuflWOn(d)Conautrptiori (of) 11332641 133 264 3831fl363 173 3222732 727 221723221 723 105218105 218 5477154 771 1250312 503 11651 185 Otfpwsos(Other purpose' (d) 388413388 413 311311 142142 424 2918 159843159 843 9X793 307 4810748 107 1401314 013 170170 2111007021 180 070 1SD4180813 041 008 3111i023 511 102 35486843 145 514 44110024 411 Ofd 45729484 572 646 , 5213D3521 303 asoins3 601 Ma ThounndtThousandsot aurastuvo. LWLTVRrnIo Betioat ofcredtt creditWth with nlrealpunMee guarantee CI)(I) flcndInExceeding ExcndInExceeding Eic..dIngExceeding NalNot 40%butnot40% but not tflsM60% and BQ%ind841% and DIOfMdcl,: which: Oforwtcfr %Neu ezcndlngexcluding .zc..dlngexceeding lsStem Dfor lasles. ofor Moing.Storage GibeOther prequalor squat orequ.Ior equal equaltoequal to equ.Itó'quell to EzcndbgExceeding Bal.nNahum .1at 311121201231/1212012 TotalTeti (.)(e) coItitncatsteral (e)(a) coHateralfcollataindiele) 40%40% 10%50% I%50% 100%199% 100%100% Fina,tFinancial InstitutionsnStt,I 33 7a7787 9%KO 11 939 37044853 704 486 11996 908 - - - 37044853 704 485 Ni4nantNohenarcial oorrapariganmni,, aqd and salesag fldsroImam 71754407 175 440 31543 154 863853 224224 464484 12206241 226 521 11flS 295 D40040 4994e9159lOO 199199404 404 159159 093093 ProperlyPropertynsuclIan constructionend and developmontdevelopment(b) (b) 19097841 909 784 15411001 641 180 1415114 151 402402 072072 888688433 433 304304804 504 158168 472472 35503 150 CMIChil erIneehngengineering constructionnsmjcfion 533533581 557 1111064 084 22312 231 44 1D9109 61765 175 26352 635 354354 2121 OtherOtherpurpases pin:ogee 47320894 732 059 11602619 802 819 2082013082 082 820820440 440 600500 41431 191191730 730 4257842 578 155155522 522 LseLoge mpanIescompanies (c)(c) 22 Z7057 13013608 102102740 746 181101037 037 494874g 487 4872345 723 1111000 000 21892 189 152152384 384 SMESHEaand andsolo sole traders (o) 26U4612 674 481 14998fl1 499 873 4704547 045 7109537701353 5S1706551 7013 173O180 730 4C3S940 382 31303 138 Cfi-.,Otherhsalad, houieholda mcand non-profitrutI inrftuonsinn/kid servingsening householdshoinords (11SFLEF1) 1255246612 552 468 1117571811 176 718 4322843 72/3 2s36g282 538 92/3 33934723 323 472 48522614 652 281 433311433 311 19761 976 Hasnç(d)hicusing (d) 1082954010 829 540 1046247210 482 472 21832 153 21512 151831 831 31838753 183 576 47250344 725 034 4D4117404 117 190198 Corestription (d) 12574031 257 403 37B34378 344 3403434 434 223173223 173 1D9414109 414 882959 629 1282712 527 14851 486 OviorpurpoiesOther purpolea ((d) 455455 523523 3S852335 562 85 lii/11, ,te.IBA ,i7 1221 2 100383100 383 6059BSO 695 1056715 687 293293 23602B5823 502 ON 14fl354714 133 647 31121fl3 572 177 31SSB443 735 644 45a85124 SW 112 5351430ti 361 430 8327q6632 715 38655543 ass 564 (a)(e) TheThe defirUondefinitionof ofoans Willand andadvances advances totoajotomer, pawners andand thettie mopeseopo ofof theme irdorrnationnfomiatlon Induded includedIn InOiIs thistable Wagam enas esused used toto prpnprepareme Itobalance balanceiheet sheet.Tho Thecanyíng corning anouniamountafmo ate lowsoans laIs used,u,ed, I.e,Le, alterafter value Øust,rmnts'dun:rents modewde to provi&onprovisionspefic specio loan..loans. (b)(b)Thl Thlaltem hem Includilandudos oil ell aC%4Ue3aceMies retedrelated tolo pmpettyproperty n.tuÓionconstructionBJt anddOVOIOpWtnI. development InCludngtSJdInq 1Sthe fina,jdrfinancing olatlsid landt forpctçmsly propertyd.velcprma development (a)(a) Ncn.firanóaNonfinancialaçwte. cooperage amare dedchided IntoInta .LS,o'Large COnpWlIeS•companies' midand ‘SMEs.'EMEs'. Inaflar ecoordansew1 withme the tio1nitIontpe appkabletu toSMEI SUESwhen whenQabflQ cdadaing shareholders'iifl,ddn’ fijndthands SdeSole Imdsrtractora*1es eavitiesam we padorwedperformedby byindMdu&s tridivicktiein inma theecun. courseof of(h&r theirbu,iness burins actMes.aclivitieg {d)(d)noThe ecbqffe. whites ofof householdstnnd,dds arid— norkorofinowprt lnsfft,I Imitations.w,ng servirgtamehdds householdsare aredafled dassifiedbas.d baudori onnfr Maarpzpo.e, pipets,a asstpdaI% seculeted rlInRLO Rule7t2) 71.2.e)of ofBank Bankof ofSpan Spin CirciwCircular412004. 42004, (e)(e) nduÓesIncludes tethe canyjngcarrying amountamountof of silit Iaansloans i.ciredreared byby redre properlyproperly asid endby byomer of propertypropery guaranisea,gunntees, Irrettpecavelrmspecve ot of metheLiv LWm. rale. (fl(f)Loan-lo-valueLoan-to-wdue (LT’ (LTV)Ii iJiela themho redoobtaned obtainedby dMdngby chidingtris Ioan*the icerrecar,ylng carryingamount 11710.1*at me repoín9at the scoringdate bydileflie bya,tunt the woolotitis of thelatesi leastappraised appraisedvaluo velumof tilo of therotiataral. coeds.. 120120 ThereThere followsfollows aggregateaggregate informationinformationat at31 31 DecemberDecember2013 2013 andand 20122012 onon ffiethe Unicaja Banco GroupsGroup's risk concentrationconcentration byby geographlcgeographic areaarea andand buslnessbusiness segment,segment, excludingexcluding exposuresexposures toto publicpublic administratlons.administrations, ThoLlsandlThousands ofof euroseuros RntofRest of BalanceBalance stat 311121261331112/2013 TotalTotal (a)(a) SpainSpain EumpeanEuropean UnTanUnion AmericeAmerica RestRest ofofWorld World Frmnd lnatbona Financial institudons 77745277 774 527 77 40Z483 023023 171171 132132 117117 878876 24942 494 Non-InandalNon enandel upanlascompanies mdand salesole flderatraders 59651195 965 119 58487575 648 757 5735857 368 2484924 849 41454 145 PmperlyProperty onnsbtofianconstructionand and devalapment(b)development (b) 69368406 936 640 69256 925 013013 1001510 015 16121 812 CMI er4needng conatudan Civil engineering construction 11 592592 367367 11 592592 367387 -- -- Olherpurpoees Other purposes 472511472 511 472511472 511 -- -- Laençanles(c)Large companies (c) 48719624 871 962 48601354 560 135 1001510 015 18121 812 SMEaSMEsaid andcole sole Vadera(o)traders (c) 16711171 671 117 18607111 660 711 95479 547 - 659859 OlberOther hou.ehdd,households stend nan-poftnon-profit lretluonsinstitutions.a,rç servinghatsehdda households(ISFLSH) (ISFLSH) 33 200200 845645 33 199199 424424 468468 -- 953953 Hising(d)Housing (d) 1189207211 892 072 1180585311 805 853 4946049 460 1793017 930 1882918 829 Ca,mrian(d)Consumption (d) 1035431810 354 316 1026827010 288 270 4447244 472 31013 101 1847318 473 hsrpweaaOther purposes( (d) 11418311 141 831 11 1281213046 046 26252 625 1095310 953 207207 FmsnaiFinancial lnsttitonsinstitutions 395395925 925 389389 537537 22 353363 33 576878 149149 3232 668668 668668 3232 182162 646646 317317 976975 6060 687667 2727 280280 ThousandsThousands ofof euroseuros RestRestof of BalanceBalance at 31N2120123111212012 TotalTotal (a)(a) SpainSpain EumpeanEuropean UntanUnion AmericaAmerica RntRest ofof WorldWorld FndlnasWttnaFinancial Institutions 42914 291 597697 39090573 909 087 254589254 689 125355125 355 25662 566 Nan-fineidalNon-financial companiesapanie, aid and salofraderasole traders 59445125 944 512 56459945 645 994 264384264 384 2990429 904 42304 230 ProperProperty onnflijdianconstructionart and developrrwR(b)development (b) 89876248 987 624 89407348 940 734 2572425 724 1662816 628 45384 536 CMI arlneefing nsVucllan CIMI engineering construction 22 142 327327 21412 141 507507 020820 -- -- Omerpu,poses Other purposes 569569 868868 588568 475475 -- 11 393393 -- targaLarge companleacompanies(c) (c) 62754296 275 429 62307526 230 752 2424 904904 1523515 235 45384 538 SMEsSMEs endand solasole Vadera(o)traders (c) 27054752 705 475 26932 693 929929 1154511 546 - - Ol±NrOther househddshouseholds endand non-pmlItnon-profit InstIullon.institutionssabang servinghouseholds households(ISRSH) (iSFLSH) 35699543 669 954 35366233 536 823 1313 355358 1515 235235 45384 538 HouslngHousing(dI (d) 1262424912 624 249 1255840312 558 403 5229052 290 30323 032 1010 524524 Caimmlon(t)Consumption (d) 1087449110 874 491 1081226210 812 262 4911349 113 29712 971 1014510 145 Other purposes (id) 12645781 264 578 12529111 262 911 14191 419 5161 157167 FiwdinaiWta,a Financiel institutions 485180485 180 453230483 230 17581 758 -- 192192 3184808231 845 082 3105421831 054 218 597087697 087 174919174 919 2185821 858 (a)(a)The The defiptondel niton of riskdsk for theme purposespipases of thislhls jabletable indrtesincludes methe followlngfallowing balancebalance sheet llama:Items: LosnsLoans sndend edvancasadvances loto cedilcredit institutions,nstft6ons, Loare Loansaid and advanasadvances loto customara,customers, DebIDebt secundes,securities, EqullyEquity nsblun,enja,instruments,Tmdlrç TradingderIvativas, derivatives,Hedng HedgingderIvativas, derivatives,Equlty Equitylnvesbmnts Investmentsmd andCanangepa Contingentaosums. exposures.The ThesmaLmls amountsof ofme the asadaassets retadreflect Visthe canylngcarryingantunte amountsof ofme the loana,loans, lo,i.e. afilaratter value adjustmentsadjuab,ients rT*demade tolo provisionprevislon spedflcspecific loans.cena, BuslnsssBusinessIs Is disbibuladdistributedby bygeographlc geographicama areabasad based onon methe counVycountryor orautonomoua autonomousreglan regionof ofresidente residenceof ofVio thelendn, lenders, aecwltiessecuritieslasuara issuerssnd and caunterpartescounterpartiesof ofderIvatIvas derivativesand and conlngentcontingentaasums, exposures. (b)(b)Tflls Thisltem Item Includesincludes mIlall actvlle,activitiesrelatad related loto propertyproperty nshuctlonconstructionand anddevelopment, development, includingnduding me theflnandng financingof ofland landf forpmperty propertydev&opmenl. development. (o)(c)Nan-finandal Non-financialcomparte, companiesere are dasaadclassedas as "LargeLarga cotranles”companies"aid and "SMEs',SMEt, Ir,in accodanoaaccordance simwith Vathe dafirttondefinition ofof EME.SMEs contalnedcontained Iiin ComnlsslonCommission RecommandatonRecommendation 200313811EC2003/361/EC (6(6 MayMal 2003)2003) onam thema definitiondefirthlon ofof rnicro-enterprises,ntov-aflrses. smallsirati companiescenanles andmt medium-sizedwadlwnlzed companies.rçanlas. tontoLoans to esole bedntraders relatarelate exclusivelysxuslveIy loto fonloans toto irt,AdiasIndividualslo totiente financeft their bimlnessbusinessactivan activities,alamar whether parfomedperformed drealydirectly esas Wesole badeatraders oror tmÇithrough anadeeentities simailwithoutleaJ legal peradly.personality. (d)(d)‘Vhs The sctwltesactivities ofof t,ouaahaldshouseholdsaid end non-profnon-profit1 instbjtans InstitutionsasMng servingttuaehdds householdsam aredasaifed classifiedbasad basedon onmeir theirpuipose, purpose,as asstpulated stipulatedIi InRule Rule71 71.2.e)le) of ofBsr* Bankof of SpaInSpain Cirm.iarCircular412004, 4/20e4. 121 There follows a breakdown of the Unicaja Banco GroupsGroup's loans and advances to customers at 31 December 2013 andand 20122012 byby autonomousautonomous regionregion and by businessbusiness segment,segment, excludingexcuding exposures toto publicpublic admnistraUons:administrations: Thouaand.Thousands ofof eumsauras U RntRest of autonomou.autonomous Balanceat3lll2I2Ol3Balance at 31/12/2013 Total(a)Total (a) AndaluclaAndalucia Madrid CataluñaCataluna communllleacommunities FlnandalFinancial Inatilullonainstitutions 7 463483 023023 7979 730730 66 467457 778778 188 295295 897897 220220 Non-finandalNan-financial conçanleacompanies asidand SDIett&Ssole traders 58487575 848 757 190 288286 56355 635 178 1191311 913 11 360380 PmnyProperty oai.tifl,construction ardand developnent(b)development (b) 69250136 925 013 42238134 223 813 16285571 628 557 212 336 860 307 OICivil .Nlneedngengineering oniflfllonconsbuction 1 592 367 1 092 171 330338 895 32583 258 158 043 obwpuTwae.Other purposes 472511472 511 154855154 855 295674295 674 - 2196221 982 U LargaLarge onnwnie,(c)companies {c) 48601354 860 135 29767872 976 787 993993 908988 209209 070078 600680 282282 SME,SMEs asidand aol.sole badentraders (o)(c) 1 660711660 711 641 742 521 232 135 293 362 444 Oth.rOther householdshouaehoida asidand non-profitnon-pmllt Inattutonainstitutions aeMngserving hauseholdahouseholds (ISFLSH)(1SFLSH) 31994243 199 424 23350452 335 045 472 756 7378573 785 317 836838 HoualngHousing (d) 11 805605 853 1044938510 449 385 489577489 577 3988739 887 827 004 U ConsunlonConsumption (d)(d) 10 268288 270 99 056058 262262 457457 708786 35 732732 736736 490490 CiherpurposeaOther purposes (d)(d) 11200461 128 046 10421541 042 154 2177421 774 23592 359 6175961 759 FinandalFinancial Institutionsln.lltilvn, 389389 537 348 969989 1001710 017 1 796 2875528 755 32 162 648 14 943 214 1417109014 171 090 462431452 431 26962 695 911 U Thounnd.Thousands of aurolauras RntRest ofof autonomou.autonomous Balanceat3lIl2I2Ol2Balance at 31/1212012 Total(a)Total tat AndaluclaAndalucia Madrid CataluñaCataluna communlti.acommunities FlnandalFinancial institutionsnatitullona 39090873 909 087 338338 241241 25703472 570 347 177588177 586 822822 913 Non-enendalNon-financial tonçwi.acompanies asidand asilofradcasole traders 56459945 645 994 7231572 315 17776211 777 621 37168403 716 640 7941679 416 PropaflyProperty onneuudta,construction .rCand developirent(b)development (b) 89407348 940 734 52924235 292 423 22945782 294 578 263283 893693 10701 070 040 CeCivil erÇnearigengineering wnam.onconstruction 2 141 507 1 394384 535 501 742742 82758 275 248 955 0Uierpurp.Other purposes 568475568 475 172910172 910 366997388 927 331 2623726 237 LargoLarge mpanaacompanies (c)(0) 6 230230 752752 3 734 978 1 423423 839 275 087 798 848 SMEaSMEs and aoJosole tBdfl(O)traders (c) 26939292 693 929 10362711 036 271 10001631 000 163 199 672672 457 823 OlherOther householdshouaehotda and non-profit InsutudonaInstitutions aarvlngserving hausaholdahouseholds (JSFLSH)(ISFLSI-1) 35368233 536 823 28987072 898 707 423 676676 7541575 415 339 025 HoualngHousing (d) 1255840312 558 403 11 350 799799 283 209209 41 618 882 777777 ConaumptlonConsumption(dJ 01 1061226210 812 282 97858119 785 811 237237 434434 3736437 364 771771 653653 olterpwposa.(d)Other purposes (d) 12629111 262 911 11591481 159 148 2400924 009 23372 337 7741777 417 FtSItalFinancial institutions¡nflwton. 463483 230 425 840 21 766766 1 917 3370733 707 31 064218054 218 1717063778 053 778 69267666 925 756 42196374 219 637 28651402 865 148 (a)(a) The definitiondeltríton of rtskrisk brfor mathe psposeapurposes ofof hlathis tabletable lndudoaincludes hethe folowtngfollowingbalance balance taelsheet Items:tana: LoanaLoans asidand advanceaadvances tolo credit lnstutons,institutions, Loan.Loans .rCand sdvancesadvances loto customn,customers, DebIDebt securities,socurtaen, EquityEqL lnfltjn’enLa,instruments, Tfadin9Trading derivativas,derivatives, HadgngHedging derivativos,derivatives, EquttyEquity InvealmanlaInvestments andand ContingeniContingent ewoaurea.exposures. Tire-rne amountsarnount. of hathe assetsasael, mitadreflect hethe carryingcanylng anountaamounts ofof hathe loan,,loans, te.I.e. afterafiar valuevaluo adjustmentsad)uatmenta mademado tolo provisionpmvislon specificapodfic loana.loans. BusinessSuamos. lais dambuloddistributed bfby googmphlcgeographicama area basadbased onon hethe counbycountry ayor aulonornouaautonornoua reglanregion ofofmsldence residence ofhaof the lenders,andar.. securitassecurities lasueraissuers asidand cotnilarparieaornmterparlies ofof dodvalivesderivatives asidand ntngantcontingent eçoauma.exposures. (b)(b)Tría This Itantern includesIndudes allalI activitiesact4taa relatadrelated tolo propertypropany nat’uctlonconstruction asidand developnant,development, lndudngIncluding hathe fnandngfinancing oftandof land lcrfor proparlyproperty dav&opnont.development. (o)(c) Non-finandal companiesconwartiaa amare classeddaised as "Largetarga companies"rTwanlaa” andasid "SMEs",5MEs, inlii accordanceardance withwtm thetire definitiondefinton ofof SMEsSMEa containedcontained insi COMMISSIOilCaiirríaslun RaniandationRecommendation 200313611EC2003f351/EC (6(6 MayMay 2003)2003) onon thema definitiondafiritai ofof micro-enterprises,rnao-flarpd.n smallnt companiesiwdea andral medium-sizedmedwwalzad companies.onoanret LoansLoan. tolo soleada tradersfldn relaterelate exclusivelyeXdLm4Vely loto haisloans loto trd.ldualaIndividuals loto fsm.finance martheir bu&rwabusiness aottat.activities, wflodierwhether pasfcrniedperformed ahydirectly asas solesala bate,traders orcr tvcughthrough ettasentities wfflojtwithout legallegal ‘onal.personality. (diTha(d) The activitiesadilbe. of householdshoua&rdds asidand rn-pmilnon-profit lsiadtjtonsInstitutionssaMng servinghatsaehdda householdsam aredasaitod classifiedbasad basedon onmar theirp,poae, purpose,as asatptÁfld stipulatedIn inRt4s Rule71.2..) 71.2.e)of of BflBank ofof SpainSpain Clruiar’fl004.Circular 4/2004. 122 27. InterestInterest raterate riskrisk exposure individualIndividual balances of methe Parent represent substantially alTall of theme consolidatedconsolidated assets, beingbelng representativerepresentativa ffiethe informationinformation ofof interestinterest dskrisk inin indMdualIndividual temisterms forfor hethe Group. lnterestInterest reterate risks are controlled on an integratedIntegrated basis by thehe AssetAsset andand LiabilityLiabllity andand BudgetBudget CommitteeCommiftee (COAPP). ThisThis unit isa responsible forfor implementing procedures toto ensureensure thatthat Group compilescomplies atat ahall timestimes withwith hethe interestInterest reterate dskrisk controlcontrol andand managementmanagement pohiciespolicies approvedapproved byby thethe Board ofof Dlrectors.Directors. Sensitivity measurementmeasurementand andscenaño scenarioanalysis analysismethads methodsare areused used toto anahyse,analyse, measuremeasure andand control the Group’sGroup's significant interest ratarate ñsks.risks. TheThe Group hedges interest reterate exposure onon an individual basis for allah significantsignificant financial instruments hatthat e:4 ocuidcould generategenerate equaflyequally significantsignificant risks.risks. The following tablastables contain a breakdown ofof maturity or interest reterate review datesdates at 31 December 2013 and 2012. The carrying amounts of hethe financlalfinancial assets and hiablhtiesliabilities are grouped together byby interest reterate review date or by maturity, whlcheverwhichever is the eadlerearlier date, as folhows:follows: 3131 DcamberDecember 20132013 TiroThousandsusanda of euros Between B.tweenBetween BetwaenBetween 22 BetwasnBetween BetwaanBetween UptolUp to 1 land31 and 3 aandlZ3 and 12 BetweenlBetween 1 and3and 3 3and43 and 4 4and64 and 6 Over6Over 6 AsanAssets monffimonth mentiramonths manillamonths srmand 2 anyears ysanyears yenyears yenyears, veanyears FínencialFinancialmeseta assets 9 304304 606806 6 651651 732732 13 148 258256 55 367367 705705 1 129 303303 332332 185165 465465 102182 805 501 AltarAfteradjustments adjustments lcrfar veragecoverage 88 904904 606606 66 651651 732732 13 148 256256 55 517517 705705 1 129 303303 582582 165165 465465 182 805 501501 3131 December 20132013 ThouaandsThousands of euros Between Between Betw.enBetween 22 Between BetweanBetween UptolUp to 1 11 and3and 3 3andl23 and 12 BetweenlBetween 1 and3and 3 3.nd43 end 4 4andS4 and 5 Over6Over 6 UabIIItlnLiabilities monfirmonth mentiramonths mentiramonths and2and 2 yeanyears yearsyears yenyears yenyears yenyears FinandalFinancial IiabllWesliabilities 1313 777777 936030 1 936 945845 55 843843 221221 33 259259 608608 1 583583 830830 457457 875875 480480 059059 22 549549 799799 AltarAfter adjustnentsadjustments terfar veragecoverage 1207712 077 938936 33 157 502502 88 541541 012812 44 639639 758758 421 606606 107 875875 4343 801 878876 984984 3131 December2ol2December 2012 TbouaandsThousands ofof euroseuros Between Between Between 2 BatiesenBetween Between uptolUptol 1I andaiul3 3 3endl23 and 12 BetweenlBetween 1 and3and 3 3and43 and 4 4and54 and 5 OyerEOver 5 AsaeteAssets month monS,.months mentir.months andancutsyearses2 yen yean ye.nfs yenAtm yeanyears Financie!Financialasaete assets 71333177 133 317 63027956 302 795 1289489012 894 890 36427363 642 736 25257042 825 704 10451281 045 126 671551671 551 16444731 644 473 AltarAfteradjuflnenb adjustments larforcúvenge coverage 72563227 286 322 63427956 342 795 1304459013 044 590 36427363 642 736 26257042 625 704 985985 128126 636551636 551 1 396768396 ne 3131 OecsmbeçDecember 20122012 ThounndsThousands ofof euroseuros BatweenBetween Between Between 2 BetwnnBetween Between UptolUp to 1 1.nd31 and 3 3and123 and 12 B,tweenlBetween 1 and3and 3 3and43 and 4 4and64 and 5 Over6Over 6 LlabilluesLiabilities montbmonth mentiramonths monthamonths mdand 22 yeanyears yeanyears year,years yeanyears yeanyears FinancialFinancial liabilities 1296205312 962 053 24948612 494 861 44 077077 756756 32147743 214 774 16385741 638 574 14154931 415 493 455455 980980 22 988988 072072 AltarAfteradjustments adjustments lcrfor coverageverage 1098205310 982 053 37154193 715 419 66 875875 248246 32147743 214 774 29198242 919 824 553269553 269 105 980980 900998900 998 TheThe aboyeabove tableetables reflect,reflect, forfor each peñod,period, hethe adjustments toto fixed-rate assets and liabilities derivadderived fromfrom hethe rehevantrelevant derivativaderivative financialfinancial instrumenteInstrumentscontracted contractedby by UnicajaUnIcajafor for hedginghedging purposes,purposes, inin orderorder toto presentpmsent overailoverall exposureexposure toto Interest reterate fluctuations.fluctuations. 123 U U Li At 31 December 2013 and 2012,2012, thete sensitivitysensWvity of the entity'sentity’s balance sheet toto anan unfavourableunfavourable horizontalhorizontal U movement in tethe intemstInterest reterate curve totallingtotalling100 100basis basispolnts pointsand and aa scenañoscenario of maintainingmaintainingIba thebalance balance sheetsheet isis as follows:follows: 2013 2012 FinanclalFinancial incomeIncome expectedexpected In 12 months InferiorInferior alal 7%7% InferiorInferior alal 7%7% EconornlcEconomic valuevalue Inferior alal 4%4% InferIorInferior alal 5%5% 28. Exposure to other market rlsksrisks Market iiskrisk relatesrelates loto thethe losses thattbat thete EntityEntity could incur inin thethe eventevent of changeschanges inU, the value ofof its¡te tradingtradlng portfolloportfolioand and available-for-saleavailable-for-salefinancial financialasseft assetsas as a resultresuit ofof unfavourableunfavourable fluctuations in market paleesprices or foreign exchangeexchange rates,ratee, oror pricepalee volatility.volatility. Such changes depend mainlymainly on factors such asas Interestlnterest rates,ratas, inin thetite casecase ofof fixed-Incomefixed-Income instruments.instrumente. OphonsOptions are subject toto aa numbernumber ofof riskiisk factors, oneone ofof thethe mostmost relevantrelevant beingbeing volatility.volatliity. The Group'sGroups market riskrlsk control polides,policies, metodsmethods andand pmceduresprocedures are approvedapproved byby thete BoardBoard ofof Directors.Directora The responsibilitiesresponsibilibes of thete Risk Control Department, through itslIs MarketMarket Control Unit, Include thethe supervision of compliance with tethe Group’sGroup's riskrisk controlcontrolpolicles, policies,methods methodsand andprocedures procedures loto ensureensure Iheirtheir adequacy, effectiveeftactive Implementation andand regular review. The unit responsible forfor financialfinancial riskñsk monitoringmonitoñng andand control is thete MarketMarket ControlControl Unit,Unit, which is basicallybaslcally entrusted with ensuñngensuring ffiatthat ñsksrisks assumed areare correctlycorrectly Identified,idenbfled, analysed,analysed, valuadvalued andand reported, cooperating inin thethe implementationimplementation of suitablesuitable riskñsk management tools,tools, improvingimprovlng position valuation modelsmodels loto bringbñng them intonto lIneline withwith tethe actualactual market context,conte4 and controllingcontrolling compliance with tethe riskñsk limitsHmits defined.defined. This unltunit alsoalso systematicaflysystematically controlscontrols andand monitors treaswytreasury andand capitalcapital marketmarket transactions.transactions. Ir,in orderorder toto ensureensure adequate marketmarket riskiisk management, thethe GroupGroup uses aa softwaresoftware applicationappllcation toto define market riskrisk calculatlonscalculations andand authoñzedauthorized limits.imita. PorFor eacheach group ofof portfoliosportfolios managed, limitsimita are defineddefined forfor "Open4Open positlons,positions", Stop"Stop losseslosses" andand “VaR’"VaR"so so asas to avoidavoid anyany slgniflcantsignificantadverse adverse lmpactimpact onon solvency or on resulta,results, in view ofofte the complexitycomplexityof ofte theñsks risksassumed. assumed. Exposure to market pdceprice fluctuatlonsfluctuations Price riskñsk is tethe riskñsk tatthat thethe fair valuevalue ofof equityequitysecunDes securitiesmay maydecline declineas as aa resultresult ofof changeschanges inln marketmad Set out belowbelow isis anan analysisanalysls ofof pricepalca risknisk sensitivitysensitlvity deriveddedved fromfrom thete Group'sGroups equityequity positionspositlons inin financialfinancial markets alat 31 December 2013 and 2012: flousandsThousands of euros Impact onon lmpactImpact onon valuation Total impactImpact on U Decline In thethe market prlceprice (quotatlons)(quotations) results adjustmentaadjustments eguityequity lmpactImpact atat 3131 DecemberDecember 20132013 ofof aa 1%1% decreasedecrease In thethe market price 59 30663 086 31253 125 lmpactImpact alat 3131 DecemberDecember 20122012 ofof aa 1%1% deoreasedecrease In tethe market palcaprice 40 47984 798 48384 838 One percent variancevaniance inin thete relevantrelevant equity pricepalca fluctuation ñskriskvariables variableswas was assumedassumed because thismIs "impact"“impact’ ¡eis a standard measurementmeasumment inIn bothboth theme financialfinancial sector and inin the UnicajaUnicaja Banco Group loto ascertain the levellevel of risk exposure.exposure. 124 InIn methe current context of highhlgh market volatility,volatillty, it itis isvery very difficultdifficultto todetermine determinewhat whatconstitutes constitutesa a“reasonably 'reasonably posslblepossible chango”change inin riskñsk variables.variables. However,However, we considerconsidor it to be appropriate to report on sensitivitysensWvity teto aa 1% 9mpact’"impact"so so thatthat publiopublicinformation informationusers usersmay mayrescale rescale thlsthiseffect effectbased based onon meirtheir marketmarket expectations.expectations. TheThe aboyeabove tabletabla doesdoes notnot includeinclude equityequity instrumentsinstrumento recognizedrecognlzed inin theme portfoliopoñfolio ofof available-for-saleavailable-for-sale financial assets forfor which therethere laIs nono activeactive marketmarket andand thatthat areare cardedcarried InInme the consolidatedconsolidatedannual annualaccounts accounts stat cost,cost, netnet of any lmpairmentImpairment loases,losses, sinGosince their fair value cannot be determineddetermined inin aa sufficientlysufflciently objective manner.manner. The consolidated canyingcarryingamount amountof ofthese these instwmentsinstruments atat 3131 DecemberDecember 20132013 andand 2012 totalstotals €€ 176,014 thousandthousand andand € 136,277 thousand, respectively. ExposumExposure tolo forelgnforeign exchange dskrisk Structural foreignforeignexchange exchange riskrisk arisesarises basically fromfromexposure exposure toto exchange raterato fluctuationsfluctuations on securitiessecuritles investmentsinvestments inin non-euronon-euro currencies.currencies. The UnlcajaUnicaja BancoBanco Group managesmanages structural foreign exchange riskñsk to minimise potentialpotential adverseadverse impacts of foreignforeign exchangeexchange fluctuations onon capitalcapital adequacyadequacy ratiosraUca and on contributionscontñbutions to the resultsresulto of forelgnforeign currencycurrency investments.Investments. At 31 December 2013 and 2012, exposureexposure toto foreignreign exchangeexchange fluctuationsfluctations in methe UnicajaUnicaja Banco Group isa immaterial,immaterial,slnce sincemere thereare are no significant asaeto assets or liabilitiesliabilities in inme the consolidatedconsolidatedbalance balancesheet sheet matthat amare denominated inIn non-euronon-euro currencies.currencies. TheThe equivalentequivalent valuevalue InIn euroseuros ofof methe Group’sGroup's totaltotal assetoassets andand liabilitieshabilites denominateddenominated inin foreignforeigncurrencles currenciesat at31 31December December2013 2013 andand 20122012 is analysed below: ThousandsThousands of euroseuros 20132013 2012 EqulvalentEquivalent value of methe assets liiIn forelngforging curroncycurrency 3500038 000 4369743 697 Of whlch:%which:% inIn U.S.U.S. dollarsdollars 75%75% 73%73% Of wtilch:%which:% inIn stedingsterling 14% 19% Of wfilcft%which:%quoted quoted ininother othercunencles currencies InInme the SpanishSpanish market 11% 8%8% EqulvalontEquivalent valuovalue of forolgnforeign currency llablIltIesliabilities 1461714 617 14 129 Of which:% in U.S. dollarsdolIera 50%80% 66%86% Of which:%whIch:% in stedlngsterling 17% 30% Of whlch:%which:%quoted quoted InInothercurmncles other currencies ininthe theSpanish Spanish marjçetmarket 4%4% 4%4% TheThe equivalent valuevalue Inin euroseuros ofof asaetoassets denominateddenominated InIn foreign currenciescurrencies accountoaccounts for 0.09% and 0.11% of totaltotal consolidatedconsolidated asaetoassets at 3131 DecemberDecember 20132013 andand 2012,2012, respectively,respechvely, whilewhile methe equivalent value in euroseuros of liabilltiesliabilitiesdenominated denominatedin inforeign foreigncurrencies currenciesrepresenta represents0.04% 0.04%and and0.03% 0.03%of oftotal totalconsolidated consolidatedassets assets stat ffiethe respectiverespective dates.dates. 29.29, Dlrector’sDirector's duties orof loyalty InIn accordance with thethe provisionsprovialons of Article 229.2 229.2 andand ArUcleArticle230.1 230.1 ofof thethe SpanlshSpanish CompaniesCompanles Act 2010 approvedapproved by Legislative-Royal DecreeDecree 1/2010112010(2 (2 JuIy),July), requires DirectorsDirectora to informinrm thethe Board ofof DlrectorsDirectors and,and, inin itaits absence,absence, other DirectorsDirectora or, in thethe case ofof aa SoleSole Administrator,Administrator, methe General Meeting,Meeting, of any direct or lndirectIndirect conffictconflictof ofinterest interest matthat couldcould affectaffect ffiethe Entity. 125 InIn accordanceaccordance with thethe aforementionedaforemenUoned text, shareholdingsshareholdlngs heidheld and ffiethe performance ofof activitiesacbvwes by thethe various members of theme Board of Directors on their own behalf at 31 of December 2013, or on ffiethe behalf with third parties, thatmal are thethe same,carne, similarsimilar oror supplementarysuppernentary loto theme activitiesactivities making upup theme Bank'sBank’s corporatecorporate purpose (including(Including UnitsUnits heldheid by persons relatedrelated to them under sectionsecUon 231 of the Companies Act): DirectDlrect indirectlndlmct NameNeme EntityEntlty participationpafticlpauan participationpaftlclp.tlan Position! FuncuonFunction AtenciaAterida Robledo, Manuel Monte de PledadPiedad y CalaCaja de AhorrosMonos de - Vicepresidente 1° Ronda, Cadiz,Cádiz, Almeria,Almería, MalagaMálaga y Antequera (Unicaja)(Unlaja) Banco EuropeoEurope° dade Finanzas, S.A.SA - - PresidentaPresidente AnnaAzuaga Moreno,Moreno, ManuelManuel Cecabank, S.A.SA Consejero Banco EuropeoEurope° dede Finanzas,Finanzas,SA SA Clammier°Consejero Dominguez-AdamsDomínguez-Adame Cobos, Eloy Banco Santander,Santander, SASA. 0.00021%000021% Banco Bilbao VizcayaVizcaya Argentada,Argentaria,SA SA. 0.00032%000032% FralleFraNe Canton,Cantón, Juan Monte de PiedadPledady yCaja Cajade deMorros Maros de - - VicepresidenteViceprtsidente? 2° Ronda, Cadiz,Cádiz, Almeria,Almería, MalagaMálaga y Antequera (Unicaja) Banco EuropeoEurope° dede Finsizas,Finanzas,SA SA - - Consejero LopezLópez Lopez,López, Antonio Banco Santander, SA.S.A. 0.00000% Banco Popular Espanol,Español, S.A.SA 0.00005% Banco Bilbao Vizcaya Argentada,Argentaria, SA.S.A. 000001%0.00001% Mateas-AparicioMateos-Aparido Morales, Petra CitigroupCitlgroup Inc. 0.00002%000002% Banco Santander, S.A.SA 0.00013% 0.00022% Banco Bilbao Vizcaya Ñuentaña,Argentaria, S.A.SA 0.00088% - Bankinter,SA SA 0.00652% - Credit SuieseSuisse Group AGAG 0.00003% - Banco PopularPopdar Espanol,Españoi, SA.S.A. 0.00005% 0.00006%0.00008% Banco Sabadell, S.A.SA. 0.00003% UMCredit,UnlCredit, S.PA S.PA 0.00034% MedalMedel Camara,Cámara, BreulioBraulio Monte de Piedad y Caja de AhorrosMonos de - PresidentePresIdente Ronda, Cádiz,Cadiz, Almeria,Almeda, MálagaMalaga y Antequera (Unicaja) Banco BilbaoBIlbao Vizcaya Argentada,Argentaria, SAS.A. 0.00005% Banco Santander, S.A.SA 0.00004% Molina Morales, AgustinAustin MonteMonta de Piedad y Caja de AhorrosMonos de - SecretarloSecintaho del Ronda, Cadiz,Cádiz, Almeria,Almería, MalagaMálaga y Consejo Antequera (Unicaja) Banco Santander, SASA. 0.00002% - - Torre Colmenero, José MM• de la Monte de PiedadPIedad y Caja de AhorrosMorros de - Vicepresidente a,3° Ronda, Cadiz,Cádiz, Almeria,Almene, MalagaMálaga y Antequera (Unicaja) Valle Sanchez,Sánchez VictoriaVictodo - - - inIn addition,addition, thethe Bank'sBank’s directorsdirectors havehaya confirmedConfirmad that no conflict of interest, directdlrect or indirect,indirect, in the Interestlnterest of theme entity. 126126 U 30. Other slgnlflcantsignificant informationInfonnation 30.1 Contingent expoexposuressuma Set out belowbelow isIs aa breakdownbreakdown of contingent exposuresexposures assumed by ffiethe GroupGroup at 3131 DecemberDecember 2013 and 2012: Thousands of eurosewes 2013 2012 FlnandalFinancial guamnteesguarantees 35 175 4647548 475 Technical guaranteesguarantees 698 262 902 503 Credit dedvativesderivatives sold 150 000 150 000 Irrevocable documentarydocumentary credltscredits 1 254 2 106 OthercommitmentsOther commitments 88160 160 730 892 851 11103 103 514814 A significantsigniflcant portionportion ofof diesethese guarantees willwiIl expire withoutwfthout any payment obligationobhgation rfor thethe entities and,and therefore, diethe aggregate balance of diesethese commitmentscommifrnents cannotcannot bebe considered asas anen actualactual futurefuture need forftr financing or liquidityIiquldity toto bebe pmvidedprovided by thethe InstitutionInstituhon toto thlrdthird parties. Income fromfromguarantee guarantee instwmentsinstrumentsis isrecognized recognizedunder underTMFee "Feeand and commissioncommissionincome’ income'and and KlntemstInterest and similar Income”Income"(in (inthe theamount amountactualizad actualizedof ofthe the valuevalue ofof diothe commissions) inin diethe income statementstatement for the years 2013 andand 20122012 andand ise calculatedcalculated byby thedie raterata establishedestablished inIndia the relatedrelatad contractcontract totome the nominalnominal amountarnount of diethe guarantee. Provisions registeredregistered toto cover thesediese guaranteesguarantaes provided,provided, whichwhich havehaya beenbeen calculatedcalculated applyingapplying similarsimilar principaisprincipals usedused for lmpairmentimpairmentlosses losses Qnon financialfinancialassets assets valuadvalued atat amortized cost,cost, are recognized under the headlngheading “Provisions"Provisions -- provislonsprovisions forforcontingent contingentexposure exposure andand commifrnents’commitments"in Inthe theconsolidated consolidatedbalance balance sheetsheet (Note 17). 30.2 AssetsAsseft assignedassigned andand acceptedaccepted asas collateralcollateral At 3131 December 20132013 and 2012 assets ownedowned byby thedie GroupGroup guaranteedguaranteed operations,operations, liabilitiesliabilities and contingentcontingent liabilities assumed, assumed. llieThe canyingcarryingvalue value ofofme the financialfinancialassets assets delivereddelivered asas guarantee ofof thesediese liabilitiesliabilwes and contingent liabilitiesllabilities andand similarsimilarat at31 31December December 20132013 andand 2012 was as follows:follows: Thousands of euros 2013 2012 Pledge of semidllessecurities 5 162 674574 66934927 934 927 Pledge of non-moftgagenon-mortgage loans 228226 798 1 002 131 55359372 389 372 79370557 937 058 At 31 December 2013 and 2012, these amountsamounts relaterelate mostlymostly to pledged securitiessecuñties and non-mortgagenon-mortgage loans, under a BankBank ofof Spain policy,policy, for the obtainment ofof long-termlong-term financingflnancing maturingmatudng iniii 2015. As regards the pledgepledge termstanta andand conditions,conditions, thedio guaranteesguarantees furnishedfurnished byby UnicajaUnlcaja BancoBanco tote the BankBank of Spain will not notbe beaftected, affected,and andmis thisis ismade madeextensiva, extensive, bybyexpress, express, irrevocableIrrevocableagreement agreement betweenbetween diethe parties, teto any automatic oror expreseexpress extensions, renewals or novationsnovabons of any typetype thatthat couldcould affectaffect thedie commitmentscommitments seaired,secured, andand willwill remainremain inin forceforce untiluntil diethe fullfuil cancellation of diethe commifrnenftcommitments and of any commitmentscommitments intointo which theythey may be novated or by which theythey maymay bebe replaced. U 127 The BankBank hashas notnot receivedreceived any assets as collateralcollateral that it isis authorizedauthorized to sellseli oror pledge,pledge, irrespectiveirrespective of whether or not there isis anyany defaultdefault onon theffie partpart ofof theffie assetasset owner.owner. Consequently,Consequentiy, theffie breakdownbreakdown requiredrequired by IFRSIFRS 7, paragraph 1515 Isis not applicable. 30.3 DrawableDrawable byby thirdthird partiesparties At 31 December 2013 and 2012 the limits on financing contractsconfracts granted and the amounts utilized,utiuized, for which the Group has assumedassumed any creditcredit commitmentcommitment aboveaboye theme amount recognized Inin assets in theme balance sheet at those dates, are set outmit below:below Thousands of euros 2013 2012 AvailableAvallable LimitLlmlt AvailableAvallable amount grantedgramad amount LimitLImIt grantedgrantad WithWltti immediatelmmedlate availabilitysvallablllty - 1 232 590 1 888688 558555 1¶ 427 422 2 355 611 Credit Institutionsinstitut]ons 263 1515087 087 26 334 7070081 081 PublicPubiIc entitlesenHiles 2929427 427 59 123 5454479 479 9595054 054 OtherQthersectors sectors 11 202 900 1 814 348 11 346 609 22190476 190 476 AvailableAvallable subjectsubJectto to conditionscondltlons - 458 949 33279898 279 898 617 847 44078892 078 892 PublicPubllc entitlesenHiles 2 280 3939649 649 2 773 39 649 OtherOmer sectorssectois 456 669 3 240 249 515615 074 4 039 243 11691539 691 539 55166456 168 456 22045269 045 269 66434503 434 503 30.4 PartyParty fundsfunds underunder managementmanagement byby thethe GroupGroup andand securitiessecuñties heldheid inin custodycustody The breakdown of the funds out of balancebalance managed by methe Group at 31 DecemberDecember 2013 and 2012 is as follows: Thousands of euros 2013 2012 Mutual funds 1 933 444 1 760 811 Investmentinvestment fundsftsnds 9696596 596 81 616 OtherDther financialfinanclal Instruments 351 899 413 269 Assets under management 781 397 764 712 33163336 163 336 33020408 020 408 Set outmit belowbeiow isais a breakdown of df-balanceoff-balance sheet customercustomerfunds funds marketed by theme Group Inin 2013 and 2012: Thousands of auraseuros 2013 2012 Mutual fiindsfunds 1 967 158 1 794 085 Investmentlnvestment funds 9696596 596 81 616 PensionPenslonfunds funds 761 984 696698319 319 Assets under management 781 397 764 712 InsuranceInsurance productspmducts 11469089 469 089 11261616 261 616 5 076078 224 4 598 348 128 Additionally, following followingis isa abreakdown breakdownof offfie thefair fairvalue valueof ofthird-party third-partyffinds fundsheid heldin incustody custody ofof thethe GmupGroup at 31 December 2013 and 2012: Thousands of auraseuros 2013 2012 Debt securitlessecurities and equityequlty Instrumentslnstruments 4 791 704 4 834 520 QtherOther financlalfinancial instrumenteInstruments 7835078 350 4206642 086 4 870 054 4 876 586588 30.5. FlnancialFinancial instwmentinstrument reclassifications During 20122012 thethe Group performed sorne some reclassifications of ofdebt debtsecurlUes securitieswhich, which,up upto to date,date, have been classifiedclassifled under the headingheading financialfinanclal assets heldheid forfor salesale toto thethe portfolioportfolio ofof held-to-maturityheld-to-rnatuñty lnvestments,investments, given that the Group has thehe intentionintention andand financialfinancial capacitycapacity toto maintainmaintain themthem untiluntil maturitymaturity (Note 9.4). 30.6 AssetAsset securitizationsecuñtization The outstanding balance for transferstransfers of financalfinancialasseffi assets mademade by methe Group at 31 December 2013 and 2012 Is as follows:follows: ThausandsThousands of auras 2013 2012 WñttenWritten aifoffhe thebalance balance before JanuaryJanuary 1,1,2014 2014 HeldHeId entirely inin balancebalance sheetsheet (Note 2.22) AyT UnlcajaUnicaja FinandaclánFinanciaclen 1,I, F.TAF.T.A. - 140112140 112 Unicaja AyT EmpresasEmpresas I,1, F.T.A. - 119119037 037 Unicaja TDA VPQ,VPO, F.T.A. - 149149631 631 UnlcajaAndaluclaUnicaja Andalucia FTFT ViviendaVivIenda TDATOA 1, F.T.A.F.T,A. - 148148494 494 - 557 274 Set out below is a breakdown by nature of securitizedsecuritlzed loans entirely recognized in hethe Unicaja Banco Group'sGroup’s consolidated balance sheet at 31 DecemberDecember 2013 and 2012: ThousandsThausands of euros 2013 2012 SecurItizedSecuritlzed loans held entirelyentlrely In hethe balance - 557 274 Mortgage securitizedsecuritized assetsassets - 298296125 125 OtherOthersecurlllzed securitized asselsassets - 259140259 149 Loans tolo companiescompanles - 119037/19 037 Consumer toansloans - 140140112 112 LiabilitiesLlablIlties assaclatadassociated wlthwith anataassets heldheid inIn balance - (565 966) Net pasltionposition (dlfference(difference betweenbetween asaeteassets andand liabilities)llablIltIes) - ( 6692)8 692) 129 a U U The Bank is deemed to have retained substantially dsks financial U The Bank is deemed to have retained substantially allal! the risks andand rewardsrewards associatedassociated withwith thethe financial assets transferred,transferred, sincesince itit hashas acquiredacquired allah theffie securitizationsecuritizaton bonds issued.issued. ForPor thismis reason,reason, thethe financialfinancial assets transferredtransferred havehave notnot beenbeen writtenwritten off thethe consolidatedconsolidatedbalance balancesheet sheet andand areare carried onon thethe samesame basis as priorprior to the transfer.transfer. InIn accordance withwith applicable legislation, both boththe theassets assets recognized in thethe balance sheet andand anan associatedassociated financialfinancial liabilityhiabihity InIn ffiethe samasame amount as the paymentpayment received,recelved, carriedcardad atat amortizedamortized cost, ereare recognizedrecognized Inin theme accountsaccounts withoutwimout any offset;offset; the incomeIncome framfrom ffiethe financlalfinancial assetsassets transferred but not written offoff andand the expense onon thethe newnew financialfinancial liabilitieshiabilities are recognizedrecognized in theme consolidatedconsohidated incomeincome statementstatement. The main chamctedsUcscharacteristics of each securitizationseaiñfizaUon in methe year 2013 andand 20122012 areare theme following:following: Thousands of eurosauras SerIalSerial AmauntAmount 31/1211331112/13 3111211231/12/12 ReturnRetum MaturityMaturlty FUND SeriesSedes A 785 300 - 1515668 6e8 Eudbor3mEuribor 3m + 0.40 23/01/2028 SedesSeries B 6370063 700 - 6370063 700 EudborEuribor 3m + 0.70 23/01/2028 Ii SedesSeries C 4090040 900 - 4090040 900 Eudbor3mEuribor am + 1.25 23/01/2028 AyT UnicajaUnicaja flnarcjaciónFinanciacion I.1. F.T.A.PTA SedaSeries 0 20 100 20 100 EudbcrEuribor 3m + 2502.50 23/01/2028 910000910 000 - 140140368 368 1111111 1111WIMI U SeñasSeries A 213 700 - 8532165 321 EudborEuribor 3m + 0.30 10/07/2051 SedesSeries B8 1717500 500 - 1717500 500 EudborEuribor 3m + 1.00 10/07/2051 Unicaja AyT EmpmsasEmpresas I,1, F.T.A.PTA. SedesSeries C 1818800 800 - 18 800 EudborEuribor 3m + 1.25 10/07/2051 X00258 000 - 121 621 Unicaja TDA‘rDA VRO,VPO, F.T.A.F.TA SedesSeries A 168168800 800 - 151 875 EudborEuribor 3m3m ++ 0,350.35 28/04/2051 188188800 800 - 151151875 875 U Unicaja AndaluciaAndalucía FTFT Viviencfavienda SedesSeries Al 4000040 000 - - EudborEuribor 3m+O,353m+0,35 28/011205228/01/2052 TDA 1, F.T.A.F.T.A SedesSeries A2(G)*A2(Gy 160 000 - 152 084 EudborEuribor 3m+0,303m+0.30 28/01/2052 200000200 000 - 152152DM 084 111111111 1111. M1111111.11=== {1(‘) WithWt a guaranteeguwantee fromfroto theme RegionalRegicos AuthoritiesAuthcñties of&Mdaluda Andalucia, (")fl) TheThe carryingcarrylng amount of methe odginaloriginalasan assets transtenedtransferred matchesmatches methe amauntamount of snoclatedassociated liabilitiesliablihies isgued.issued. lnIn 2013,2013, thethe secudtizedsecuritized assetsassets were repurchasedrepurchased byby thethe BankBank and thethe securitizationsecudtization funds werewere cashed. The financialUnancial assetsassets transferred remained inin thethe Bank’sBank's balancebalance sheet,sheet, assoclatedassociated risksñsks and rewardsrewards having been substantiahlysubstantially retained,retained,such such thatthat the repurchaserepurchase diddid notnot increaseincrease theme Bank'sBank’s loanloan portfolio;portfolio; thethe financialfinancial liabilities recognized recognizedwere werecancelled cancelledin inme the amountamount ofof methe cashcash received,received, inin accordanceaccordance withwiffi applicableapplicabla regulations. o QnOn 10 July 2013, ihethe securitization fund fundnamed namedaunija 'Unto* AyTAyT Empresas i1,, ETA.’F.T.A." waswas liquidatedhquidated in advance. OnQn that same date,date, thethe assetsassets securitizedsecudtized throughthrough theme fundfund werewere repurchasedrepurchased forfor aa priceprice of € 110,453110453 mousand,thousand, equlvalentequivalentto to the outstandingoutstandlng balancebalance pendlngpending collectioncollectionon on ffiethe assets repurchased, includinglncluding relatedrelated wdte-offwrite-offassets, assets, plusplus acoruedaccrued unmatured interest. o On 14 October 2013,2013, UnicajaUnicaja BancoBanco acquiredacquired fromfrom theme securitizationsecudtlzation fundfund "Unicaja“Unicaja TDATDA VPO,VRO, F.TA methe 3,000 mortgage bonds andand 472472 mortgagemortgage transfertransfer certificatescertificates subscribedsubscdbed forfor by the fund,fund, for a pdceprice of € 143,177143,177 thousand, which was was methe value of mesethese securitiessecurities at 3030 SeptemberSeptember 2013,2013, including outstanding outstandingprincipal principal(matured (maturedand andnot notpaid, paid,and and notnot yetyet matured) and accrued unpaidunpaid interest. OnQn 28 OctoberOctober 2013, aa contractcontract cancellationcancellation agreement waswas concludedconcluded betweenbetween UnicajaUnicaja Banco, SA.S.A. and theffie asset securitizationsecuritization fund (represented by the managementmanagement company)company) for the funds advance liquidation.hiquidation. 130 o QnOn 14 OctoberOctober 2013,2013 UnicajaLJnicaja BancoBanco acquiredacquired fromfrom theme securitizationsecuritzation fundfund "UnIcaja‘Unicaja AndaluciaAndalucla FT Vivienda TDA TDA1, 1, F.T.A.F.T.A."the the 2,0092,009 mortgagemortgage bondsbonds and 1,5241,524 mortgagemortgage transfertransfer certificatescertificates subscribed forbr by thethe fund, brfor aa priceprice ofof €E139,490 139,490thousand, thousand, whichwhichwas wasthe the valuevalue ofofIhese these securitiessecurities at 30 September 2013,2013, includingincluding outstandlngoutstanding principal (matured (matured andand notnot paid,paid, andand not yet matured) and accrued unpaid interest.interest, QnOn 28 October 2013, a contract cancellation agreementagreement was concluded between Unicaja Banco,Banco, SA.S.A. andand methe assatasset securitizationsecuritization fund (represented by methe management company) brfor thethe fundafunds advance liquidation.liquidation. o QnOn 23 OctoberOctober 2013,2013, thethe securitizationsecufitization fundfund namednamed "AyTAyT UnicajaUnicaja FinanciacionFinanciación 1,1, F.T.A."F.T.A. was liquidated in in advance.advance. QnOn 2121 October 2013, the assetsasaete securitizedsecuritized throughthrough thisIhis fundfund werewere repurchased forfor aa priceprice ofof €€ 88,70788,707 thousand,thousand, equivalentequivalent toto thethe outstandingoutstanding balancebalance pendingpendlng collection on on thethe assets repurchased,repurchased, Includinglncluding related write-offasaete, assets, plus accruedaccwed unmaturedunmatured InterestInterest. 30.7 NettingNeffing arrangementsarrangementa and guamnteesguarantees In additionadditionto tome theamounW amounts matthat maymaybe be offsetoffsetin inthe theaccounts accounts underunder lASlAS32, 32,there thereare are otherother neflingnetting agreementsagreements and guarantees which, thoughthough notnot neifednetted inin thethe accounts because theme necessarynecessary requirementsrequirements are not fulfilled,fulfilled,effectively effectivelyreduce reduce creditcredit ñsk.risk. There follows aa bieakdownbreakdown atat 31 December 2013 andand 20122012 ofof derivativederivative financialfinancial ¡nstmmentsinstruments (Notes(Notes 88 and 11) in the situationsituaton described, showing separatelyseparately methe effecfteffects of mesethese agreementsagmements andand collateralcollateral receivedreceived and/or fumishedfurnished by thethe Group: Thousands of euros 2013 2012 DerivatIvaDerivative financlalfinancial InstrumontsInstruments MestaAssets LlablIltIosLiabilities AsaetoAssets LlabliltiesLiabilities GroasGross exposure (bock(book valuo)value) 549 982 5606956 069 747 173 172 076 NeftIngNetting agro.mentsagreements and coliatomlscoliaterals (537(537 020) (26(26 580) (658(668 830) (( 92 140) - .- Netting arrangementsarrangements - - - collateralCollateral recelved/fumlshedreceived/famished (537 020) (26 580) (658 830) ( 92 140) NetexposuroNet exposure X6212962 2946929 489, 6834388 343 7993679 936 The amounts of collateral In ffiethe form of cash and financialfinancial instrumentsinskuments reflect fair values. The nettingnefting rightsñghft depend onon counterpartycounterparty default and relaterelate toto collateralcollateral inIn theffie formhrm of cashcash and financialfinancial instrumente.instruments. 131 ______ 4 Inin connection withwiththe the GmupsGroup'sasset asset reversereverse rapasrepos and repos,repos, thereifiere areare otherother agreementsagreemenft entailingentailing the receipt and/oranwar submission of theffie followingguarantees guarantees in addftionaddition toto thethe guaranteeguarantee built intoInto ffiesethese opemüons:operations: Thousands of euros 2013 2012 Guarantees assoclatedassociated wlthwith acquisitionsacqulsltlons and temporary assignmentasslgnment of assets Delivered ReceivedRecelved Delivered Received IncashIn cash 9292589 589 250 22310 310 In stockstock 9282569 589 250260 22310 310 31. Interestinterest and similar incomeIncome Set outmit belowbeiow Isis a breakdownbreakdown ofof the originorigin of the most significantsignlflcant Interest andand similar incomeincome accruedaccrued by the Group in 2013 and 2012: Thousands of euros 2013 2012 Balances at centralcentral banks (Note(Note 7) 926 1 293 Deposits with credit Institutions¡nstltutions (Note 10.1) 2929376 376 1919519 519 Money market operations through counterpartlescounterparties (Note 10.1) 1212295 295 1919287 287 Loans and advances tote customerscustomera (Note(Note 10.1) 671 796798 818618 008 DebiDebt secifihiessecurities 379 063 302 124124 DoubtfulDoubffi4 assetsassets (Note 10.1) 99814 814 77876 876 Li Rectification ofofravenues revenues añsingarising fmmfrom accountingaccounting hedgeshedges ( 66153) 153) ( 77551) 551) Insurance contractscontrads relatedrelated toto pensionspenslons andand similarsimilar obligationsoNigauons 4 721 4 852 DiherOther revenues 1 427 11 279 11103267 103 267 11166687 166 687 Set outout belowbelow is aa breakdownbreakdown ofof thethe amountsamounts recognizedrecognized inin "Interestlnterest andand similarsimilar income"income’ in the consolidated income statements forbr 20132013 andand 2012,2012, classifiedclassified onon thethe basisbasis ofof theme relevantrelevant financialfinancial instrumentlnstmment portfolio:portfolio: Ii Thousands of euros 2013 2012 Financial assets atat fairfair valuevalue withwith change throughthmugh profitprofa and loss-loss- HeldHeld forfor trading (Note 8.1) 33376 376 439 Available-for-sale financiatfinancialassets assets (Note 9.1) 100 770flO 9797021 021 MatudtyMaturity investmentInvestment portfolioportfoflo (Note 9,4)9.4) 237 663 165 398 LoanLoans and receivables 740 313 876 433 Money marketmarket opemtionsoperations thrmighthrough counterparfiescounterparties 1212295 295 1919287 287 a Rectification ofofrevenues revenues resulting fromfrom accountlngaccounting hedgeshedges ( 6153)6 153) ( 7551)7 551) OtherOthermvenues revenues 1516003 003 1515660 660 11103267 103 267 11166687 166 687 U 132 32. interestInterest expense and similar charges The breakdown of ffiethe balancebalance of ffilsthis captioncaption inin thethe consolidatedconsolidated incomeincomestatements statements forfor2013 2013 andand 20122012 isis asas bllows:follows: Thousands of euros 2013 2012 DeposltsDeposits from centralcentral banksbanks (Note 18.1) 33 625 4930949 309 OeposltsDeposits fromfram credit Lnstitutionsinstitutions (Note 16.2) 1816667 667 17 139 Money marketmarket operationsoperations through counteipartiescounterparties (Note 153)16.3) 67588 758 13 127 Deposits from ciliarother creditors (Note 16.3) 462218482 218 483 326 Debt secudtiessecurities issued (Note 16.4) 101 522 136 800 Subordinated liabilitiesliablilties (Note 165)16.5) 28712 671 53905 390 Rectification of ofcosts costs adslngarising (ramfromaccounilng accountinghedges hedges (162 959) (156 619) Costs attributableattñbutable to pension funds arranged (Note(Note 17) 53445 344 6 199 Other intemstsinterests 1 355 2 390 491 201 557 061 Set out below isa a breakdownbreakdown of ffiethe amountsamounte recognizedrecognized inin interestInterest expense and similarsimilar charges"chargeC in methe consohdatedconsolidated incomeIncome statementsstatements forbr 2013 and 2012, classifieddassifled on methe basis of theVio relevantrelevant financial instrument poportfolio:rtfolio: Thousands of euros 2013 2012 AnanclalFinancial ilabillilesliabilitiesat at amortizadamortized costcost 647 461 705 091 Rectification of ofcosta costs art&ngarising(ram fromaccounting accountinghedges hedges (162 959) (156(156 619) GuiarOther interests 6 899699 8 589 491 201 557567 061 33. ReturnRetum on equltyequity instrumenbinstruments The breakdown of the balance of this caption in the consolidatedconsoNdated income statementsstatements brfor 20132013 and 2012 by portfolio and and naturanature of the flnanciaifinancial instruments Isis as follows:follows: Thousands of euros 2013 2012 Equity instwmentsinstruments classlfledclassified as:as: Financial asaeteassets held for trading 33 44 Availabie-for-saleAvailable-for-salefinancial financialassets assets 24 856 28 688 2488924 889 2873228 732 Equity instrumentsinstruments having thethe naturanature of:cf: Shares 2444124 441 2810228 102 InvestmentsInvestments in Institutionslnstltulions of CoilectiveCollective lnvestmentInvestment 448 630 24 889 28 732 133 34.34. Results of equlty-consolldatedequity-consolidated entltlesentities AA breakdownbreakdown byby companycompany of misthis consoBdatedconsolidated incomeincome statementstatement caption for 20132013 and 2012 is as follows:foliows: Thousands ofof euroseuros 20132013 20122012 AutopistaAutopista deldelSol SolConcesionaria Conceslonaria Espaflola,Espanola, SA.S.A. (( 11 926) (1( 1 353) EBNEBNBanco Banco dede Negados,Negocios, SA.S.A. (1( 1 099) (( 2 828) UnlcorpUnicorpVida, Vida,Ccfnpañ[a Companfade deSeguros Segurosy yReaseguros, Reaseguros, SAS.A. 1967819 876 16 541 Hidralia.Hidralia,Gestión GestionIntegral Integralde deAguas Aguas dede Mdalucla,Andalucia, SAS.A. (previously,(previously,AquagestAndaiucla, Aquagest Andalucia, SA.)S.A.) 33743 374 30903 090 SacyrSacyr Vallehermoso.Vallenermoso, SA.S.A. -- (13(13 684)684) UnemaUnema Promotores Inmoblliarios,tnmobliiarios, SA.S.A. (( 7)7) -- GwpoGrupo HotelesHoteies Playa,Playa, SA.S.A. (( 11 134) 200200 AlestisAlestisAemspace, Aerospace, S.L.S.L. - - Deoteo,Deoleo, SAS.A. 1 223223 -- SociedadSociedad Municipal de deAparcamientos Aparcamlentosy yServidos, Senricios,SA SA 301301 312312 lngerer[aIngenleria ee IntegraciónIntegraciOnAvanzadas, Avanzadas, SAS.A. (Ingenia)(Ingenia) (( 562)562) (( 322)322) Autopista deldel Guadalmedina,Guadaimedina, ConcesIonariaConceslonaria Española,Espanola, SAS.A. (( 22 163)163) (( 857)857) OtherOther entftiesentities (( 2 256) (( 3 227) 1562715 627 (( 2128) 35.35. FeoFee amiand commlssloncommission Incomeincome SetSet out below IsIs teafee revenuerevenue accrued inin 2013 and 2012,2012, classifiedclassified takingtaking Into account the main items involved, togethertogether withwiththe theconsoNdated consolidatedincome incomestatements statements forformase thoseyears years ininwhich whichsuch suchrevenue revenuehas hasbeen been recorded:recorded: ThousandsThousands ofof euroseuros 20132013 20122012 InwrestInterest andand simIlarsimilar revenuesrevenues Origination fees fees 2424 226225 2727 462 2422624 226 2746227 462 PeesFees receivodreceived FeesFees relatingrelaüng to contingentcontingent ñsksrisks 66 837837 88 030030 FeesFees relatingrelaflng toto contingentcontingent comrn4tmentscommitments 1 863863 1 337337 FeesFees retaungrelating teto colledioncollectionand andpayment paymentseMces services 86 502502 8686 423423 FeasFees relating to investmentInvestment and complementary activitiesactivfties 2525 610610 2323 086086 FeesFees relating toto foreignforeigncurrency currencyand and notenote exchangeexchange 329329 356 FeasFees reiatingrelating to marketing of non-banknon-bank financialfinancial productsproducts 3131 998998 3333 930930 QtherOther 32973 297 36183 615 156435166 436 156778156 778 OlborOther operatlngoperating incomoincome CompensatoryCompensatory fees of direct costs (Note 3B)38) 1 503503 20812 081 15031 603 20812 081 134 36.36. PeeFee andandcommlsslon commissionexpense expense SetSet out below isis fee and commission expenseexpense accruedaccwed in 2013 and 2012,2012, classifiedclassifled taking into accountaccount thethe mainmain itemsitems Involved,involved,together togetherwfth withthe theconsolidated consolidatedincome incomestatements statementsfor forthase thoseyears years ininwhich whichsuch suchexpense expense hashas been recorded: TbousandsThousands ofofeuros euros 20132013 20122012 FeoFee andand commlssloncommission expenseexpense CommlssionsCommissions paidpaid tuto Intermediarlesintermediaries 824824 743743 OthercommlsslonsOther commissions 152152 426426 976976 11691 169 FeosFees PaidPaid DebltDebitand and creditcredituperationa operations 459459 523523 CommisslonsCommissionsceded ceded tuto otherother BanksBanksand andcorrespondeni correspondentbanks banks 1379613 796 1573415 734 CommissionCommissionexpense expense unon secuduessecurities transactionstransactions 1 103 937937 OtherFeesOther Fees 41394 139 36303 630 1949719 497 2082420 824 37.37. GamaGains orormaeses losses onOfl financlalfinancial assetsassets and liabilitiesllabilities TheThe breakdownbreakdown ofof thethe balancebalance ofof thisthis captioncaption inin thethe consolidatedconsolidated incomeincomestatements statements forfor2013 2013 andand 20122012 by portfotioportfolioof ofthe thefinancial financialinstruments instruments involvedinvolved sasis as follows: ThousandsThousands ofof euroseuros 20132013 20122012 TradingTrading portfolmoportfolio 29662 966 (15(15 675)675) Avallable-for-saleAvailable-for-salefinancial financialassets assets (Note(Note 9.3)9.3) 141141 595595 2727 114114 EquityEquity ¡nstwmentsinstruments 64256 425 1 688688 DebtDebt 135170135 170 2542625 426 CredítCreditlnvesbnents investments 283283 -- Held-to-maturltyHeld-to-maturityInvestments Investments (Note(Note 9.4)9.4) 9393044 044 FinanclalFinancial liabilitiesliabilitiesst atamortized amortizedcosi cost -- - HedglngHedging dedvativesderivatives 35183 518 278278 241406241 406 1111 717717 lnIn ibathe years 2013 andand 2012,2012, thethe amountamount collectedcollected underunder thethe headingheading "Results“Resufts fromfmm financialfinancial operationsoperations -- assetsassets heldheid forfor sale -- EquityEquity instruments"instwments” mainlycompdses comprisesdisposal disposal operationsoperations descñbeddescribed inin NotesNotes 9,19.1 andand 9.3.9.3. InIn2013, 2013, profltsprofits recognizedrecognized inin relationrelationto to held-to-matuñtyheld-to-maturitysecurities, securities,totalling totalling€ €93,044 93,044thousand, thousand,relate relate loto thethe salesale of a part of the debt securitiessecurities included¡ncluded inIn the portfolioportfollo (Note(Note 9.4).9.4). TheThe transactiontransaction fulflisfulfilsthe the requimmentsrequirements ofof paragraphparagraph 0A22GA22 ofof lASIAS39 39and and therefthereforeore Uie the remainderremainder ofof Diothe hetd-to-matudtyheld-to-maturitydebt debtsecuñhes securitiesneed need notnot bebe reclassifledreclassified toto thethe available-for-sale portfolio (Note(Note 2.2.4).2.2.4). 135 38. OtherOther operatingoperatlng incomeIncome The breakdown ofof 0wthe balancebalance of thisthis captioncaption ininthe the consolidatedconsolidated incomeincomestatements statements forfor2013 2013and and 20122012 Esis asas follows: Thousands of euros 2013 2012 IncornefromIncome from propertyproperty InvestmentsInvestments (Note(Note 13,2)13.2) 66106 610 64606 460 CommlsslonsCommissions offsettingoffsettln9 dlrectdirect costscosts (Note 35) 1 503 2 081 Sales andand incomelncome fromfrom non-financialnon-finandal servlcesservices 33 085088 27 320 InsuranceInsurance premiumpremlum bicorneincome 23 280260 7 Other 42444 244 79257 925 6870568 705 4319343 793 At 31 December 2013, theme itemtem "Other“Other non-recurringnon-recuning incom&income"includes includesthe the amountamount ofof €€ 2325023,250 thousand obtalnedobtained from thethe assignment on 31 DecemberDecember 20132013 ofof exclusiveexclusive rightsñghts to distribute home Insurance for a flve-yearfive-year parlad.period. 39. OtherOther operatingoperatlng expense This breakdown ofof misthis headingheading Eninthe the consolidatedconsolidated income statementsstatements for 2013 and 2012 is¡o as follows:follows: Thousands of euros 2013 2012 Operatln9Operatingexpenses expenses unon Real StateState 299 137 ContdbutionContributiontu tothe theOeposlt DepositGuarantee Guarantee Fund (Note 1.9) 27 477 31 807 OthefOther 29 962 42 054 5773857 738 1399873 998 The heading "Other"Kother IncludesIncludes thethe costcost of thethe sales services thatthat constituteconstitute theme corecore activityactivity ofof the non-financialnon-financial subsidlarlessubsidiaries consolidated with thethe Group. 40. AdministrativeAdmlnistrative expenses 40.1 StaffStaff costscosta The breakdown ofof astaff"Staffcosta” costs"En inthe theconsolidated consolidatedEncame incomestatements statementsbr forthe theyears years2013 2013and and2012 2012 ois asas follows:follows: Thousands of euroseuros 2013 2012 Wages and saladessalaries 198 350 204 599 Social secuñtiessecurities costacosts 54 257 49 874 AppropdationsAppropriations toto derineddefined benefltbenefit pensionpension plansplans 311 805 AppropdatlonsAppropriations U,to deflneddefined contdbutioncontributionpension pension plansplans 9 320 9 430 lndenlsatlonsIndenisations 64 318 StafftrainlngStaff trainingexpenses expenses 890 932 DtherOther staff costacosts 6 747 7 578 269 939 213273 536 136 TheThe average number of GroupsGroup's employees, byby professional category,category, atat 3131 December 20132013 andand 20122012 is as foflows:follows: Average number of EmpioyenEmployees 2013 20122012 Man Women Men Women GrouplGroup 1 26142 614 18051 805 26612 661 18151 815 LeveIlLevel 1 15 1 15 1 LevelIlLevel II 4444 5 5353 44 Level IIIIII 136 17 139 14 LevelIVLevel IV 317 67 312 64 Level yV 676676 241 643 226 Level VIVI 354384 151 397397 154 Level VIIVII 401 308308 435435 310310 Level VIIIVIII 290 313 283 310 LeveIIXLevel IX 9696 156 98 140 LevelXLevel X 50 151 62 148 LeveiXILevel XI 168 347347 172 365 Level XIIXII 3131 3939 4949 72 Level XIIIXIII 6 99 3 77 Group2Group 2 20 77 19 7 LevelILevel I 3 - 3 - LevelIlLevel II 12 5 11 4 LeveililLevel III - 22 -- 33 LeveiIVLevel IV 4 - 3 - LeveIVLevel V 1 - 2 - CieanersCleaners - 13 - 15 TotalTotal Parent 22 634634 1 825826 2 680 1 837837 DtherOther subsldiartessubsidiaries 253253 195 257 201 DuhngDuring 2013 and 201 methe average number ofof peoplepeople employedemployed withwith aa disabilftydisability ofof atat least 33%33% is5 90 and 91, respectively,respectively, inin compliancecompliance withwith Law 131198213/1982 of?of 7 Apdl,April, thethe socialsocial integmtionintegration of disableddisabled persons. The table below detalisdetails a breakdown by concepts of the amounts recognizedrecognizcd Inin the headingsheadlngs "ProvisionsProvisions -- provisions forfor pensions andand similar obligations"obligations” aociand lnsurance'insurance contractacontracts llnkedlinked toto pension?pensions" inin the consolidatedconsolidated balance sheetssheets at 31 December 2013 andand 2012: TbousandsThousands of euros 20132013 2012 ProvislonsProvisions -- ProvlsionsProvisions forfor pensionepensions andand similarsimilar obllgaflonsobligations -- 183 950950 184 267267 Post-employment benefits 141 453 130 752782 QtherOther iong-termlong-term benefits 4249742 497 5353 485 insurancaInsurance contractacontracts ilnkedlinked teto pensions 132 09?097 119 358358 Post-employment benefits 132 097 119 aso358 Changes in ffiethe provisions recognized byby methe Group duñngduring methe years ended 31 December 20132013 aociand 2012 are detailed in Note 17. 137 40.1.140.1.1 Post-employment commitmenfficommitments DuringDuring2002 2002the the EntityEntityagreed agreedwith withits itsemployses employeesto to modi&modifyand andtransform transformthe theemployee employeepension pension supplementsupplement systemsystem into a mixedmixed modelmodel ofof defineddefined contributioncontribution and defineddefined benefitbeneflt system externalizedexternalized toto UnifondoUnifondo PensionesPenslones V, FondoFonda de Pensiones.Pensiones. ToTo finishflnish thisthis modificationmodification and transformation,transfurmation, thethe InstitutionInstituUon surrendered surrendered methe InsuranceInsurance policies tbatthat before covered the actuarialactuañal liabilities.Iiabillties. Simultaneously,Simultaneously,funds funds werewere appropñatedappropriated toto ffiethe internalinternal pensionpension fund,fund, aa partpart ofofwhich whichwas wassubsequenUy subsequently externalizedexternalized toto UnifondoUnifondoy V,Fondo Fondade dePensiones. Pensiones. AtAt 3131 Decentar,December, 20132013 andand 2012,2012, thethe balancebalance of Unifondo Pensiones PensionesV, V,Fondo Fondade de PensionesPensiones amounted teto €291156€291,158 thousandthousand and €270,921€270921 thousand, respectively.respechvely. TbisThis amount covers needs ofof defineddefined contributioncontñbution andand defineddefined benefltsbenefits commitmentscommitments calculatedcalculated Inin NoteNote 2.12.2.12. 40.1.1.140.1.1.1 GeneralGeneral inforrnaUoninformationon onpost-emplayment post-employment cornrnitmentscommitments SetSet out below areare different commifrnentscommitments ofofpost-employment, post-employment,such such asas defined contñbutioncontribution andand defineddefined benefltbenefit comm[hnenftcommitments assumedassumed by methe Entity: DefinedDefined benefltbenefit planeplans TheThe contñbutionscontributionsmade made bybyme the GroupGroupte tome the fundfundof ofexterna! externalpension pensionfunds funds inin2013 2013amounted amounted toto€9320 €9,320 mousandthousand (€9430(€9,430 tbousandthousand Inin 2012)2012) andand amare recognizedrecognized inin "StaffStaff cost?costs" inInffie theincome incomestatement statement. DefinedDefined contñbutioncontributionplans plans TheThe presentpresent value of methe commitrnentscommitments hashas been defineddefined by qualifiedqualifled actuadasactuaries as follows: -- CalculationCalculationmethod: method:proJected "projectedcredit creditunit unitmethod”, method",whereby wherebyeach eachyear yearof of serviceservice anan addiUonaladditionalunit unitof ofright rightte tobeneflts benefitsis isgenerates generatesand andvalued valuedseparately. separately. -- ActuañalActuarialassumptions assumptionsused: used: consistentconsistent and compatiblecompatible assumptions. The specificspeciflc actuadalactuarial assurnpVonsassumptions employedemployed areare statedstated Inin NoteNote 212.2.12. -- EstimatedEstimatedretirement retirementage ageof ofemployees: employees:calculated calculatedfor foreach eachemployee employeeusing usingthe the bestbest informationinformationavallable availableat atthe thereporting reportingdate. date. TheThe fairfairvalue valueof ofnon-plan non-planassets assets covehngcovering pensionpension commifrnentscommitments includes the fair valuevalue of ffiethe insuranceinsurance policy takentaken outout byby methe GroupGroup wimwithffie theinsurer insurerUnicorp UnicorpVida, Vida,Compañía Campaniade deSeguros Segurosy yReaseguros, Reaseguros, S.A.S.A. toto covercover commifrnentscommitmentswith withemployees employeeswho whoare areguaranteed guaranteed aa supplementarysupplementary benefltbenefit onon retirementretirement, asas explainedexplained previously.previously.As Asmis thisinsurance insurance poflcypolicyle Iscontacted contactedwith witha acornpany company relatedrelated toto methe Bank (Note(Note 12), itit isisrecognized recognized atat fairfairvalue valuein inthe theitem iteminsurance "Insurancecontracta contractslinked linkedte topensione” pensions"in Inassets, assets,as as ititis isnot notdeemed deemed toto bebe aa "planplan asser.asset'. TheThe policy'spolicy’s fair valuevalue hashas been calculated using actuarialactuadal methods, discounting payments flows stipulatedstipulated inin thethe pollcypolicy atatthe the discountdiscount reterate appUcableapplicable according to theffie IBOXXIBOXX AA AACorporate Corporatecurve, curve,based based onon lbsthe flnanciaifinancialterm term ofoflbe the commitments,commitments. 138138 ______ AtAt 3131 DecemberDecember 20132013 andand 2012 the ftfrfair valuevalue ofof ffiethe asseftassets allocated to cover post-employmentpost-employment remunemtionremuneration isis asas follows: TbousandsThousands ofof euroseuros 20132013 20122012 NaturaNature ofof asaetaassets allocatedallocated toto covercover commWnentacommitments AscetaAssets of the plan covered byby Insuranceinsurance policypolicy withwlth UnicornUnicorp Vida, SAS.A. 3535 051061 37 606606 AssetsAssets of thethe plan caveredcovered by pendanpension plans IrIn atherother lndependentindependent entitiesentities - - InsuranceInsurance policlespolicies contracted by theffie planplan withwith UnIcorpUnlcorp Vida,Vida,SA S.A.and and allocatedallocated teto covercover defineddefined benefltbenefit commltmentscommitments 132 097097 119 359359 ExtemalExternal defineddefined contrlbutioncontributionpenden pension pIanplan 212212 072072 176 028028 379379 230230 332332 993993 40.1.1.240.1.1.2 InbrmabonInformationon ondeflned-conffibution defined-contributionpost-employment post-employmentcommifrnents commitments PensionPension commitments arranged arranged underunder defineddefined conffibuVoncontributionplans plansare aresellad settledby by meansmeans of annual payments mademade by the GroupGroup tote beneficiaries,beneficiados, who are almostalmost exclusivelyexclusively serving employees. The contributions areare chargedcharged toto methe consolidated income statementstatement brfor thethe pedodperiod (Note(Note 2.12.1)2.12.1) andand dodo not therefore entailentail ffiethe recognitionrecognitionof ofa aliability liabilityin inthe theaccompanying accompanyingconsolidated consolidatedbalance balancesheet. sheet. feThe amounts recognized in the accompanyingaccompanying consolidated income statement in respect ofof contributionscontñbuUons mademade toto thesethese plans in 2013 andand 2012 totaiedtotaled €€ 9,3209,320thousand thousandand and€ 9,4309,430 thousand,Uiousand, respectivelyrespecUvely (Note 40.1.1.1).40.1.1.1). 40.1.1.340.1.1.3 InformationInformationen ondeflned-benefit defined-benefitpost-employment post-employment commltmentscommitments Actuada!Actuariallosses losses andand galnsgains onen defineddefined benefitbeneflt plans recognized in the 20132013 consolidatedconsolidated statement of recognizedrecognized incomeincomeand and expensesexpenses as itemsitems of other recognized income andand expenses thatthat willwíll notnot bebe takentaken toto thethe incomeincomestatement statementtotal totala agrasa grossloss lossof of€ €519 519ffiousand, thousand,entalling entailinga anet netlosa lossof of€ 363 thousand after methe taxtax effect.effect. SetSet out below isis methe reconciliation between between thethe openlngopening andand closingclosing balancesbalances of thethe present value of Unicaja BancosBanco's defined benefit commitmentscommitments brfor2013 2013 andand 2012:2012: flousandsThousands ofof auraseuros 20132013 Plan 11 Plan 22 TotalTotal PresentPresent valuevalue of obligatloneobligations mtat JanuaryJanuary 1,1, 20132013 9393 016016 3770837 708 130 724724 (i)(i)Costofcurrentseivlces Cost of current services 273273 3838 311311 (U)(ii)Borrong Borrowingcosta costs 44 009009 959959 44 968968 (iH)(iii)ContdbutionsContributions made made byby planplan participantsparticipants -.. -- -- (vflActuarlal(vi) ActuarialFoscas lossesand andgama gains 1691016 910 (( 795)795) 1611516 115 lvi.lv.1.Oua Duete tochangas changes mnindemographic demographicassumptlons assumptions -- - -- lv,2.Iv.2.Due Duete tochangos changes ininfinandal financialassumptions assumptions 15 185 (( 228)228) 14 957957 lv.3.iv.3.Ad]ustments Adjustmentsdueto due toexpedence experience 1 725725 (( 567)567) 11561 158 Cv)(v)Exchange Exchangerate ratechangas changes -- (vi)(vi)Benefits Benefits paldpaid (( 9134)9 134) (1( 1 532)532) (10666)( 10 666) (vii)(vii)cost Cost ofof postpast cervicesservices - - - (vlh)(viii)BusinessBusiness combinationacombinations - - - (ix)(ix)Reductiors Reductions - (x)(x)Plan Plan settlenentssettlements Present valuevalue ofof obilgationeobligations atat DecemberDecember 31,31, 20132013 106106 074074 3637836 378 141141 462462 139 Thousands of euros 20122012 Plan 11 PIanPlan 2 TotalTotal Present value of obllgatlonsobligations at January 1, 2012 9581495 814 3750337 503 133 317 (1)(I)Cost Cost ofofcurrent currentservices services 284284 7878 362 (u)(ii)Borrowing BorrowingcasIs costs 47064 706 1 493493 6 199 (üi)(iii)ContribulionsContributions mudemade by planplan padlcipantsparticipants - - - (vi)(vi)Aduari& Actuariallosses lossesand and galnsgains 636 62 698698 lvi.iv.1. DueloDue to changeschanges liiin demographlcdemographic assumptionsassumptions - - - lv2.iv.2. DueloDue to changoschanges in financlalfinancial assumpUonsassumptions - -- - N.3.iv.3.Mjustrnents Adjustments duedue loto expedenceexperience 636636 6262 698698 (y)(v) ExchangeExchange rulerate changeschanges - - -- (vI)(vi)Benefilu Benefits paid (8(8 424) (1(1 428)428) (( 9 852) (vii)(vii)CosI Cost ofof paulpast servicesservices -- -. (viii)(viii)BuslnessBusiness combinatlonscombinations (Ix)(lx)Reductlons Reductions (x)(x) PlanPlan setilemenissettlements PmsontPresent value of obllgaflonsobligations at DecembarDecember 31, 2012 93 016 3770637 708 130 724724 SelSet out belowbslow isu theIhe reconciliationreconcilialion betweenbetween Itiethe openingopening andand closlngclosing balancesbalances of Ihethe fair value of the plan assets andand thethe openingopening andand closingclasing balancesbalances ofof anyany reimbursementreimbursement rightsñghts capitalizedcapilalized byby UnicajaUnicaja BancoBanco Inin 20132013 and 2012: ThousandsThousands ofof euroseuros 2013 PIanPlan 1 PIanPlan 2 Total FairvalueFair value of asaeteassets atJanuaryat January 1,20131, 2013 9176491 764 2727 594594 119 358368 (1)(i)CosI Cost of currentcurrent servicesservices 2 360 729 3 089 (ji)(ii)Borrowing casIs costs 40114 011 710710 47214 721 (üi)(iii)ContñbulionsContributions mudemade by planplan partlcipantsparticipants - - (vi)(vi)Actuarial Actuarialbuses lossesand and galnsgains 1507715 077 518 15 595 lvi.iv.1 .Dueto Due tochangos changes InIndemographlc demographicassumpllans assumptions - . 1v2.Iv.2.Duelo Due tochangos changes Inin financlalfinancialassumphons assumptions 1443814 438 655655 1509315 093 W.3.iv.3.Adjustments Adjustmentsdueto due to expeñenceexperience 639639 (( 137) 502 (y)(v) Exchange ruterate changoschanges - - - (vI)(vi)Benefitu Benefits paid (( 9134)9 134) (1( 1 532) (10( 10 666) (vii)(vii)CosI Cost of paslpast servicesservices - -- - (vül)(viii)Business combinalionscombinations - - (lx)(ix)Reductlons Reductions - - - (x)(x) PlanPlan setilemenlssettlements FalrvalueFair value of asaeteassets stat December 31, 2013 104 078 2801928 019 132 097097 140 ______ ThousandsThousands ofof euroseuros 20122012 PIanPlan 11 Plan 22 TotalTotal FalrFair valuevalue ofof assetsassets at JanuaryJanuary 1,1, 20122012 9494 608608 2745127 451 122059122 059 (1)(I)Cost Cost ofofcurrent currentservices services 1 627627 15551 558 31853 185 (u)(ii)Borrowing Borrowingcosts costs 44 160 692692 48524 852 (Ui)(iii)ContdbutionsContributions medo made byby planplan partlcipantsparticipants (vi)(vi)Aduarial Actuarialloases lossesand and galitgains (206)( 206) ( 679)679) (( 865)885) 1v.1.vi. Dueto Due tochangas changes InIndemographlc demographicassumptions assumptions iva1v2, DuetoDue to changaschanges in financlalfinancialassumpUons assumptions I3.iv.3.Mjustments Adjustmentsdueto due toexpehence experience (206)( 206) ( 679) (( 685)885) (y)(v)Exchange Exchange ratorate changeschanges (vi)(vi)Benefits Benefits paldpaid ( 88 425)425) ( 1428)1 428) (( 9853)9 853) Li (vii)(vii)CosI Cost ofofpast past seMcesservices - - - (viii)(viii)BusinessBusiness comblnatlonscombinations - - - (lx)(ix)Reductions Reductions - - - (x)(x)Plan Plan seltiemenissettlements - - - FalrvalueFair value ofof asseffiassets atat December 31,31, 20122012 9176491 784 2759427 594 119 358358 SetSet outout below isIs thethe reconcillationreconciliation ofofthe the presentpresent value of the defined-benefitdeflned-benefit post-employment commitments andand thethe lrfair valuevalue ofofthe theplan planassets assets (excluding insurance insurancecontracts contractsNnked linkedto topenslons), pensions),against againstthe theassets assets andand liabilitiesliabilitiesrecognized recognizedin inUnicaja UnicajaBancos Banco'sbalance balancesheet sheetat at31 31December December 20132013 andand 2012:2012: TbousandsThousands ofof euroseuros 20132013 PIanPlan 11 Plan 22 TotalTotal Present valuevalue ofof obllgauonsobligations atat DecemberDecember 31,31, 20132013 105074105 074 3637836 378 141452141 452 (i)(i)Cost ofof pastpast servicesservices nolnot mcognizedrecognized Ininthe thebalance balancesheet sheet (u)(ii)AnyAny amountamount notnot capitalizadcapitalized (liD(iii)FairFair valuevalue ofof anyany reimbumementreimbursement dghtright capitalizadcapitalized - (lv)(iv)Other Other arnountsamounts recognlzedrecognized InInIhe thebalance balancesheet sheet (( 11618) 818) (36(36 376)378) (( 38 196) FaIrFair valuovalue of assetsassets stat December 3131,• 2013 103103 256256 - 103266103 256 TbousandsThousands ofof eurosauras 20122012 Plan 11 Plan 22 TotalTotal PresontPresent valuevalue of obllgatlonsobligations stat DocemberDecember 31,31, 20122012 9393 017017 3770937 709 130726130 726 (i)(i)CosI Cost ofof pastpast seMcesservices nolnot recognizedrecognized ininIba thebalance balancesheet sheet (ji)(ii)AnyAny amountamount folnot capitalized (UI)(ill)Falr Fairvalue valueof ofany anyreimbLnernent reimbursement rightright capitalizadcapitalized (lv)(1v)øther Otheramounts amountsrecognized recognizedin inthe thebalance balancesheet sheet ( 22 090) (37(37 709)709) (( 3939 799)199) FaIrFair valuevalue ofof assetsassets stat December 31,31, 20122012 9090 927927 • 9092790 927 141 Set out below isis aa breakdown ofof thethe totaltotalexpense expense recognized in thethe consolidated Income statementsstatements brfor 20132013 and 2012: DefinftfDefinitionen AccordlngAccording teto IASLAS 19 a) CosiCost of currenicurrent servitasservices StaftStaff casiscosts b)b) BorrowlngBorrowingcosta costs lnterestInterest expenseexpense and similar chames charges c)c) ExpectedExpected retumreturnon onasseis assets lnterestinterest and similar incomeIncome d)d) CasiCost of pasipast services recognized dudngduring ihethe perlodperiod ChameCharge loto pmvlsionsprovisions (nei)(net) TbausandsThousands ofof euroseuros 20132013 Plan 1 PlanPlan 22 TotalTotal a)a) CosICost ofof curmntcurrent servicesservices 273273 38 311311 b)b) BorrowlngBorrowingcosis costs 40094 009 959959 49684 988 c)c) ExpectedExpected retumreturnon onassets assets (4011)(4 011) (710)(710) (4721)(4 721) d)d) CosiCost of pasipast services recognized during ffiethe parladperiod - e)e) PastPast service casiscosts recognized in ibathe yearyear Thous.ndsThousands ofof euroseuros 20122012 PIanPlan 1 PlanPlan 22 TotalTotal a)a) CosiCost ofof currentcurrent sesvicesservices 264284 7878 362362 b)b) BarmwingBorrowingcasis costs 47064 708 14931 493 61096 199 c)c) ExpecledExpected retumreturnon onassets assets (4(4 160)160) (( 692)692) (4(4 852)652) d)d)Cosi Cost of pastpast servitasservices recognized duringdudng ibathe parladperiod 842842 741741 1 583583 e)e) PasiPast service casiscosts recognizedrecagnized in ibathe yearyear - - SetSet out below areare thethe main actuarialactuarial assumptionsassumptions used by Unicaja BancaBanco alat 3131 DecemberDecember 2013:2013: PIanPlan 71 Actuada!Actuarial Assumptions:Assumptions: o Updated tables: PERMF 2000-P2000-P oo DiscountDiscount ratos:rates: -- MarketMarket raterate as perpar theffie financialfinancial termierm ofof commitmentcommitment flowsflows andand applyingapplylng thethe 1130XXIBOXX AAAA CorporateCorporate curve stat 31 DecentarDecember 2013 for highly-rated Eurozone Eurozone corporalecorporate bonds.bonds. -- EachEach commitment hashas aa temiterm of betweenbetween 17.73 and 8.93 forbr thethe commiimentscommitments andand betweenbetween 11.47 andand 4.434.43 brforUie theassets. assets. - TheThe ratesmies appliedapplled toto eacheach commitmentcommitment fluctuatefluciuate betweenbetween 3.08%3.08% andand 2.78% brfor the commifrnentscommitmentsand and 2.92%2.92% andand 1.91%1.91%forthe for theassets. assets. oo SalarySalary growthgrowth rate:rate: 2%2% o• SocialSocial SecudtySecurity pensionpension growthgrowth rata:rate: O0 oo ContñbuflonContributionbase base growthgrowth rata:rate: -- ConffibuüonContributionbases basesincrease increaseuntil untilffiey theymach reachthe the actualactual salades,salaries, apup loto theihe limitslimfts of the maximummaximum contñbutioncontributionbase base forforeach each raierate group. -- MaximumMaximumcontñbuiion contributionbase base groMhgrowth rate:rate: 1% oo PensionPension lncreaseincrease rete:rate: 1% oo ExpectedExpected yieldyieldon onplan planassets: assets: -- PorFor assetsasseft coveringcoveñng commitmentscammiftnenft Insuredinsured underunder thethe GroupGroup IIII policypvlicy (Defined(Defined Benefit.Benefit. CoNectivaCollectiveBargaining BargainingAgreemeni Agreementbr forSavings SavingsBanks. Banks.Formar FormerUnicaja), Unicaja),a arata rate ofof 2.15%2.15% is5 applied.applied. - FarFor asseisassets coveringcoveñng commitmentscommitmenffi insured underunder thethe GroupGroup IllIII policypolicy (Defined(Defined Benefit.Benefit. EmployeesEmployees from Banco Urquijo), a a reterate ofof 2.14%2.14% is5 applied.applied. - ForFor assetsassets coveringcovedng commitmentscommitments insured under theffie GroupGroup VIVI policypolicy (Plan beneficiaries)beneficiarlas) wiihwith cash-fiowcash-flowmatching, matching,a a ratarate ofof 4.87%4.87% isis applied.applied. -- PorFor asseisassets coveringcavedng commitmentscommiiments Insuredinsured underunder thethe policypolicy forter BeneficiariesBeneficiadas fromfivm Groups I1 (Mixed.(Mixed.General General System),System), IIII andand IIIIIIthat thatreceive receiveactuadal actuarialincame, income, aa ratarate of 2.88%2.88% isis applied.applied. - ForFor asseisassets coveringcovering commitments insured under the policy brfor beneflisbenefits notnot financedfinanced byby thethe PlanPlan duetodue to contribution limits, a a raterate ofof 2.15%2.15% isis applied.applied. 142 oo RataRate of yieldyieldon onany any reimbursementreimbursement dghtright recognized:recognized: 00 oo EstimatedEstimatedretiroment retirementage: age:65, 65, exceptexcept forfor partcipantsparticipantsin inraspad respect ofof whomwhomffie the retirementretirementage age ¡5is broughtbrought forward.forward. oo Tumover:Turnover: NoNo Plan 2 ActuaflalActuarial Assumpions:Assumptions: oo UpdatedUpdated tablas:tables: PERMF 2000-P2000-P oo DiscountDiscountrajes: rates: -- MarketMarketrata rate as perper theme financialfinancial termterm ofof commitmentcommitment flowsflows andand applyingapplylng thethe IBOXXIBOXX AA CorporateCorporate curvecurve atat 3131 December 2013 for highly-ratedhighly-ratedEurozone Eurozonecorporate corporate bonds.bonds. - EachEach commitmentcommitmenthas has aa temiterm ofof betweenbetween 17.49 andand 9.78 forthefor the commitmentscommitmentsand and betweenbetween 14.3614.36 andand 1.091.09for forffie theassets. assets. - TheThe retesrates appliedapplied to eacheach commitmentcommifrnent fluctuate betweenbetween 3.07%3.07% andand 2.83%2.83% forfor ffiethe commihientscommitmentsand and3.02% 3.02%and and0.86% 0.86%for forffie theassets. assets. oo SalarySalary growthgrowth rata:rate: 5%5% oo SocialSocial SecuritySecurity pensionpension growthgrowth rate:rate: O0 oo ContributionContributionbase base growthgrowthrate: rate: -- ContributionContributionbases basesincrease increaseunu! untilthey theyreach reachthe theactual actualsalaries, salaries, upup toto the limitslimite ofof ffiethe maximummaximumcontñbutlon contributionbase basefor foreach each reterate group.group. -- MaximumMaximum contributionconffibuhon basebase growthgrowth rete:rate: 3%3% oo PensionPension incmaseincrease rate:rate: 3%3% oo ExpectedExpected yleldyieldon onplan planassets: assets: -- ForFor assetsassets covering commitments Insured under theme policypollcy for commitments adsingarising from thethe CollectiveCollectiveBargaining BargainingAgreements Agreementsfor forSavings SavingsBanks Banksand and Banks,Banks, aa reterate of 2.13%2.13% isIs applled.applied. - ForFor assetaassets coveringcovering commitmentscommltmenft insuredInsured under thethe policypollcy for early-retired employeesemployees with cash-flowcash-flowmatchlng, matching,a a reterate ofof 2.59%2.59% Isis applled.applied. - ForFor assetsassets coveringcovering commitmentsccmmitments Insuredinsured under theme policypdllcy for two groupsgroups of Habilites,liabilities,retes rates ofof2.39% 2.39%and and 3.02%3.02% areare applied.applied. oo RateRate ofof yleldyieldon onany any reimbursementreimbursement dghtright recognized:recognized: O0 oo EstimatedEstimated reUrementretirementage: age: 65.65. oo Tumover:Turnover: No SetSet out below areare the amounts for 20132013 and for thethe pmcedingpreceding fourfour annualannual periodsperiods representingrepresentingthe the presentpresent valuevalue ofof defineddefined benefitbenefit commitnientscommitments,the thefair fairvalue valueof ofplan planassete assets and experienceexperlence adjustmentsadjustmenft under paregrephparagraph 120A, letter (f) ofof lASlAS19 19añsing arisingfmm fromplan planasseta assets and liabilities.liabilWes. ThousandsThousands ofof eurosauras PresentPresent valuevalue ofof obllgatlonsobligations FairFairvalue valueof ofanata assets PlanPlan 11 PlanPlan 22 TotalTotal PlanPlan 1 PlanPlan 22 TotalTotal YearYear 20092009 ExpedenceExperienceadjustments adjustments 11 204204 (( 429)429) 775775 (( 695)695) 11 594594 899899 ValueValue alat DecemberDecember 3131,• 20092009 100100 833833 3636 928928 137137 761761 9975599 755 2628 039039 127127794 794 YsarYear 20102010 ExpehenceExperienceadjustrnents adjustments (( 246)246) 219219 (( 27)27) (( 109)109) (( 91)91) (( 200)200) ValueValue alat DecemberDecember 31,31, 20102010 9795397 953 3645836 458 134134 411411 9696 754764 2727 342342 124 106 YearYear 20112011 ExpedenceExperienceadjustments adjustments (( 2685)2 685) (1( 1 398)398) (( 4083)4 083) (( 260)260) 316316 5656 Valueatflecember3l2011Value at December 31, 2011 9581595 815 3750437 504 133319133 319 9460894 608 2745127 451 122059122 059 VeasYear 20122012 ExpedenceExperienceadjustments adjustments (( 11185)185) (( 612)612) (( 11 797)797) (( 199)199) (( 679)679) (( 878)878) Valueatpecemberal,2012Value at December 31, 2012 9301793 017 3770937 709 130726130 726 9176591 765 2759427 594 119359119 359 VearYear 20132013 ExpedenceExperienceadjustments adjustments (( 1725)1 725) 567567 (( 1158) 639639 (( 137)137) 502502 Valueatoecember3l2013Value at December 31, 2013 105074105 074 3637838 378 141452141 452 104078104 078 2801928 019 132097132 097 143 ______ SetSet outout belowbelow areare sensftMtysensitivitydata data forforte the presentpresentvalue valueof ofte thecommitmenft commitments atat 3131 DecemberDecember2013 2013 inin relationrelationto to interestinterest raterate andand salaiysalary growthgrowth fluctuations:fluctuations: PercontagePercentagechangos changes IncreaseIncrease DecreasoDecrease ChangeChange InInpresent presentvalue valueof ofcommltments commitmentsIn InIhe theevent eventof of aa0.5% 0,5%fluctuauon fluctuation InInsalaries salaries 408408 (( 376)376) ChangoChangeUi inpmsent presentvalue valueof ofcommftments commitmentsUi Inthe theevent eventof of aa 5050 bpbp interestinterestrato ratefluctuation fluctuation (7465)(7 465) 68 188188 OnOnthe the basisbasis ofof thethe mortalitymortality tablestables employed,employed, lifelifeexpectancy expectancyfor fora a personperson retidngretiring atatyear-end year-end2013 2013Is Is26.31 26.31 yearsyears andand 21.8221.82 yearsyears forfor womenwomen andand men,men, respectively.respectively. LifeLife expectancyexpectancyfor for aa personperson reflringretiring20 20 yearsyears afterafter year-endyear-end 20132013 Isis 26.5528.55years years andand24.17 24.17years yearsfor forwomen women andandmen, men, respectively.respectively. TheThemain main categohescategories ofof assetsassets forfor plansplans financedfinanced e%emallyexternally asas aa percentagepercentage ofof totaltotal planplan assetaassets areare asas follows:follows: flousandsThousandsof ofeuros euros 20132013 20122012 EquityEquity lnstmmentsInstruments 1313 180180 7417,41 1313 176176 7,537,53 DebtDebt lnstnmieritsInstruments 124124 023023 69,7269,72 132132 647647 75.8175,81 lnvestrnentInvestmentftnds funds 4040606 806 228322,83 1919 898898 113711,37 AnanclalFinancialderivativos derivatives (( 99647) 647) (( 542)5,42) - - OtherOtherassets assets 97129 712 5,465,46 92459 245 5,295,29 177874177 874 100,00100,00 174966174 966 100,00100,00 InIn alIall cases,cases, thethe instrumentinstrument contractedcontracted isis anan insuranceinsurance policy.policy. TheThe fairfair valuevalue ofof planplan assetsassets includesIncludeste the followingfollowing financie!financial instrumentsinstruments issuedissued byteby the UnicajaUnicaja BancoBancogroup: group: ThoussndsThousands ofofeuros auras 20132013 20122012 EquityEquity Instrumenteinstruments - DebtDebt InstrumenteInstruments - DeposltsDeposits andand cwrentcurrent accountsaccounts 81198 119 74087 408 81198 119 74057 408 EstimatedEstimated paymentspayments ofof post-employmentpost-employment commitmentcommitment benefitsbenefits inin methe comlngcoming 1010 yearsyears areare asas follows:follows: TbousandsThousandsof ofeuros °tiros 20142014 20152015 20162016 20172017 20182018 2019-20232019-2023 Post-employmentPost-employmentbenefit benefit 88876 876 88823 823 88738 738 88652 652 88591 591 4141433 433 0llterOtherlong-term long-termbenefit benefit 1212550 550 1010 759759 75867 586 55035 035 27242 724 36883 888 TotalTotal benefltsbenefits 2142621 426 1968219 582 1632416 324 1368713 687 1131511 315 4510145 101 AsAs regardsregards benefitsbenefits estimatedestimatedfor forte thefollowing followingyear year. oo ForFor thethe defineddefined retirementretirement benefit,benefit,te theamount amount ofof contñbutionscontributionswlll willbe be equalequalto to thethe ordinaryordinarycost cost andand supplementarysupplementarycost, cost,if ifapplicable, applicable,identified identifiedin inte the latestlatest actuadalactuarial valuationvaluation performedperformedby bythe the planplan actuaryactuary atatte the previousprevious yearyearend. end. 144144 o For thethe disability,disabflity, widowhoodwidowhood andand orphanhood defined benefits of defineddefined benefitbenefit groups,groups, contribufionscontributionswill willbe beequal equalto toffie theannual annual premiumpremiumnecessary necessary forforcoverage coverage purposes,purposes, under a group Afelife insuranceInsurance poNcy,policy,the theamount amountof ofwhich whichIs Isbudgeted budgetedbased based oi,on thethe amounts paid Inin the previous year. Li o For the disability,dlsabihty, widowhood andand orphanhood defined benefitsbenefits ofof defineddefined contributioncontribution groups, contñbufionscontributionswill willbe beequal equalto tothe the costcost ofof thethe insuranceInsurance premium forfor thesethese benefits supulatedstipulated by ffiethe insurer, inin methe amount necessary tote reachmach theffie amountamount ofof theffie benefits,beneflft, netnet ofof capitalizationcapitalization fundsfunds formed. In general, they are esumated basad on ffie amounts in ffie previous year. U formed. In general, they are estimated based on the amounts paidpaid In the previous year. 40.1.2 DeathDeath andand disabilitydisabllity ibaThe amountarnaunt accruedacccued byby defineddefined contributioncontribution Insuranceinsurance policies toto cover employeeempioyee death andand disabilitydlsability of employees amounted toto €1,565 thousandthousand inin 20132013 (€1,410(€1410 thousandthousand inin 2012)2012) andand Isis recognizedmcognized inin "StaffaStaffcosts costs" inin ffiethe incomeincome statementstatement (Note 2.12.3). ti 40.1.3 Age awards The amounts recognized for commitments withwithemployees employeesthat that machreach 2020 andand 3535 yearsyears of service at methe Group amounted to approximately€4329 64,329thousand thousand andand €4314€4,314 thousand,thousand, respectively stat 3131 December 2013 and 2012 and are recognizedrecognized inin "ProvisionsProvisions - ProvisionsPmvisions for pensions and similarsimilar liabilities"liabilities’ in inthe thebalance balancesheets. sheets. 40.1.4 OtherOtherbeneflts benefits The amount of thesemese commitmentscommitrnents andand assets includedincluded inin theifie tabletabla aboveaboye waswas calculatedcalculated byby qualifiedqualífled actuadesactuaries asas follows:follows: - ActuahalActuarial assumptionsassumptions used:used: for the calculationcalculation of commitmentscommitments to employees resultingmsulhng from that agreement, theme BankBank appliedapplied theme curvecurve IBOXXIBOXX AA CorporateCorporate dependingdepending Qnon ffiethe duration of the commitments,commltments, having beenbeen estimatedesfimated other assumptions applied in accordance with methe conditionsconditions marketmarket andand the characteñsbcscharacteristics of ffiethe covered group. - The duration forfor eacheach commitmentcommitment vahesvaries betweenbetween 6.916.91 andand 1.24. - The rates appliedappfed forfor each commitmentcommitment rangingranging fromfrom 2.53% to 0.88%. - The estimated retirement ageage of eacheach employee amare as specified.specifled. 40,240.2 Otherøther generalgeneral administrativeadministrative expensesexpenses The breakdown of ffiisthis consolidated income statement lineUne for 2013 and 2012 is as follows:follows: Thousands of eurosauras 2013 2012 BulldlngsBuildings and facilitiesfadllties 1515051 051 1717376 375 Rent 38563 856 45254 525 InformauonInformation technologlestechnologies 1818980 980 21 352 CommunlcatlonsCommunications 1212451 451 1414275 275 AdvertlsingAdvertising 4 998 66176 617 Legal costscosts 655 508 TechnlcalTechnical repoflsreports 70257 025 67186 718 SecuhtySecurity servlcesservices 5 188186 52485 248 Insurance pruniumspremiums 968 1 293 GovemlngGoverning badlesbodies 1 363 1 058 RepmsentationRepresentation costs 27062 706 22712 712 AssociatlonAssociation chargescharges 2 520 2 566 OutsourclngOutsourcing .. _ Taxes 94689 468 91109 110 QtheritemsOther Items 38603 860 33335 335 89 067087 96 692 145 ______ U The balancebalance of Qffier"Other administrativeadministrativeexpenses expenses" includes methe esfees paid by theme Group for methe audftaudit of ffiethe annual accounts,accounts, amountingamountng to €330€ 330 thousand in 2013 (E(€334 334 thousandthousand in 2012). In 2013,2013, costacosts of servicasservices provided byby companiescompanies using the PricewaterhouseCoopersPñcewaterhouseCoopers brandbrand forfor otherother accountingaccounUng verificationveñflcation and regulatoryregulatory work, basicallybasically relatingrelatingto tothe the acquisitionacquisitionof ofBanco BancoCEISS, CEISS,totaling totaling€ €1,2601260 thousand thousand (€504(€ 504 thousandthousand in 2012),2012), and toto other servicesservices amounting to €46E 48 thousandthousand (€68(E 68 thousandthousand in 2012).2012). 41. ImpalnnentImpairment loaseslosses onon Hmthe restrest of asse6assets (net)(net) TheThe breakdown ofof frethe headingheading impalrment'Impairment losseslosses on the rest ofof assetsasceta (net)"(net) inIn theDm consolidatedconsolidated profitproflt and loasloss account formefor the yearsyears 2013 and 2012 is¡a as follows:follows: Thousands ofof eurosauras 20132013 20122012 lmpalnnentImpairment loaseslosses Goodwill and andother otherintangible intangibleassets assets (Notes 4) 1 907907 1 907 lnvestmentsInvestments (Note 12) 77 937937 3939 261261 QtherOtherasceta assets 5200852 008 297057297 057 6161 552652 338338 225225 There fallowsfollows anan Itemizeditemized breakdownbreakdownof of thethe consolldatedconsolidated balancebalance sheet captioncaption "OtherOther asset impairmentlmpairment losses"osses” brfor 20132013 andand 2012:2012: Thousands of euros 20132013 20122012 mpalnnentmpairment ofoftangible tangibleassets assets for ownown useuse (net) (( 69)69) (( 79)79) lmpaimientImpairmentloases losses on ¡nvestmentInvestment property (net)(net) 8 009009 77 898 lmpalrrnentImpairment loaseslosses on inventariesInventories (net)(net) 4406844 068 289289 238 5200852 008 297057297 057 The balance of "Other“Other asseWassets" includes methe amounts providedprovided by methe Group under the conceptconcept ofof impairmentimpairment ofof ascetaassets inin participated companies, fundamentally ofofthose those withwithactivities activitiesrolated relatedto tothe thereal realestate estatebusiness, business. 42.42. GalnsGains andand loaseslosses on disposaldisposal ofof asseftassets not clasaifledclassified as non-current asseffiassets held for sale The breakdownbreakdownof ofthls thisheadlng headingin inthe the consoildatedconsolidatedIncome incomestatements statementsbr forthe theyesrs years2013 2013and and 20122012 ¡5is asas follows:follows: ThausandsThousands of euros 2013 2012 GaMaGains LoasesLosses GalnsGains LoasesLosses QnOn disposaldisposal ofoftangible tangibleassets assets 776776 (568)(568) 698698 (562)(562) QnOn disposal of lnvestmentsInvestments 33 (12)( 12) 927927 (153)(153) QtherltemsOther items ( 24) - (156)(158) 809 (504)(604) 1 623 (673)(873) 146 ______ 43.43. GalnsGains andand ¡ceseslosses onon dlsposaldisposal ofof non-currontnon-current assebassets heidheld forfor salesale not classffledclassified asas dlscounteddiscounted opemtlonsoperations TheThe breakdownbreakdown ofof thisthis headlngheading inin thethe consolidated incomeincomestatements statementsfor forthe theyears years2013 2013and and 20122012 Isfs asas follows;follows: ThousandsThousands ofof euroseuros 20132013 20122012 GamaGains toesasLosses GamaGains tosanLosses QnOn disposaldisposal ofof tangibletangible assetsassets 71377 137 (10031)(10031) 86908 690 (( 5015) QtherOther temsitems(Note (Note 15)15) - (10(10 401)401) - (25(25 243)243) X71771337137 (20(20 432)4321 88 690690 (30(30 255)268) AtAt 3131 DecemberDecember 20132013 andand2012, 2012, ‘Qther"Other relates mainly to impairmentmpairment losses on non-current asseftassets forfor salesale (Note(Note 15).15). 44.44. RelatedRelated pañlesparties lnIn addiUonaddition teto methe lnhrmauoninformation presentadpresented Inin NoteNote 66 relativerelative teto lbsthe balancesbalances andand transactionstransactions withwith lbsthe membarsmembers ofof lbethe Graup’sGroup's Board ofof Directors andand keykey managementmanagement pemonnel,personnel, setset mitout belowbelow isis Ihethe detalldetail ofof thethe accountsaccounts registeredregistered InIn lbethe consolidatedconsolidatedbalance balancesheets sheetsand and incomeincomestatemenft statementsbr forlbe the yearsyears 20132013 andand 20122012 añsingarising fromfrom tmnsactionstransactions withwith relatadrelated parties:parties: flausandaThousands ofof euroseuros 20132013 20122012 GmupGroup GmupGroup enifiles,entitles, M,mbenMembersof offfie the entifin,entitles, M.mbnMembers ofof0w the associatesassociates boardboardof of mocitaassociates bosrdboardof of andjolnfly-and jointly- dlmcffirsanddirectors and andjolnUy-and jointly- dlmcbrsanddirectors and confrofledcontrolled generalgeneral Other relatadrelated conbofledcontrolled generalgeneral OBierOther relatadrelated entibesentities mana9nmanagers partíasparties entibesentitles manageremanagers _ partíaparties ASSETS:ASSETS: LoansandadvancesLoans and advances 265279265 279 12911 291 3963939 539 157694157 594 11 585555 4744347 443 SecudtiesSecurities po&olioportfolio 279279 579579 - - 293293541 541 - - OlberasactsOther assets 81188118 - 1313 55705 570 - 4747 InsuranceInsurance contractacontracts linkedinicad te to pensIonepensions 132132097 097 - - 119118359 359 - - UABIUtES:LIABILITIES: DeposIteDeposits 851851688 688 44924 492 66 598598 663663032 032 22422 242 55 373373 SubordinatedSubordinated liabuitiesliabilities 252252 - - 3939 - - OtiterOther liabilitlesliabilities 2727 - - 3030 - 66 PmvlsionsProvisionsfor forpensiona pensionsand andsimilar similar obligatonaobligations 680680 - - 134134 - - DebtDebt certificatescertificates lndudingIncludingbonda bonds - 7878 - - 553553 151151 INCOMEINCOME STATEMENT:STATEMENT: ExpenseExpense. lnterestInterest expenseexpense andend simíarsimilarchargea charges 1351213 512 8885 6868 1405314 053 5757 8787 CominisaloneCommissionsand and knpairmentImpairment base,losses 99274 274 - 3434 22589 589 - 3535 IncameIncome- lntemstinterest andand similarsimilar Interneincome 76627 662 2424 14171 417 73287 326 4040 11573 673 CommlsslonsCommissions 29312 931 2222 7878 11 512512 1818 9494 OTNER:OTHER: ConfingentContingent hacarisksand and commlbnentecommitments 5006258 062 162162 2928 194194 6356863 50 188168 4444 907907 AggregateAggregate informationinformation leIspresented presented¡n inme the aboyeabove tabletable sincesince inin allall casescases ti-methe fransactionstransactions withwith relatedrelated partiesparties havehave nono slgnificantsignificant impactimpact onon lbethe understandlngunderstanding ofof timethe financlalfinancial lnformationInformation provided,provided, Inin viewview ofof thethe amountamount oror relevance.relevance. TheThe relatadrelated partyparty transactionstransactions werewere mademade onon normalnormal marketmarket condibons.conditions. 147147 45.45. MortgageMortgage marketmarket lnformatloninformation OnOn 3030 NovemberNovember 2010,2010, thethe BankBank ofof SpainSpain issuedissued Circular 7)2010 7/2010developing developingcartain certainaspada aspects ofof methe mortgagemortgage marketmarket asas a resultmsult ofof theme approvalapproval ofof LawLaw 41/2009 (7 December),December), which bmadlybroadly amendedamended Law 2)19812/1981 (25(25 March)March)on onthe the mortgagemortgage market, and of Royal Decree 716/2009 (24(24 April),Apñl), whichwhich davelopeddeveloped thethe latter Law. TheThe Board ofof DirectoraDirectorsdeclares declares thatthat thethe Entity hashas specific policiespolicies andand proceduresprocedures encompassingencompassing ahall methe activitiesactivitiesperformed performedin inthe the contextcontext ofof thethe mortgagemohgage market issues carriedcarried out,out, guaranteeingguaranteelng rigorousrigomus compliancecompliance withwithme themortgage mortgage marketmarket regulationsregulations appllcableapplicablelo tothese these activities. TheThe pohiciespolicies andand procedures includeinclude theme followingfollowing criteda:criteria: -- RelatlonshipRelationshipbetween betweenthe theamount amountof ofthe the loanloan andand the appraisedappraised valuevalue ofof thethe mortgagedmortgaged building,building, lncludlngincludingme theeffect effectof ofother othercollateral collateraland andselection selection ofofvaluation valuationcompanies. companies. - RelationshipRelationshipbetween between thethe debtdebt and the borrower'sborrower’s Income,Income, as wellwell as theme verificationveñflcation of ibethe informationinformaban fumishedfurnished bybyme the borrowerborrowerand and ifiethe borrowersborrower's solvency.solvency. -- AvoldanceAvoidance ofof imbalanceimbalance betweenbetween methe flows from methe undertyingunderlying poftfohioportfolioand andthe the paymentpayment flowsflows onon methe secuñtiessecurities issued.issued. ArticleArticle3 3of ofLaw Law41/2007 41/2007(7 (7December) December)stipulates stipulatesthat that valuationvaluationcompanies companies providingprovidingservices services toto creditcredit entibesentities ofof thethe samasame group of entities mustmust havehave adequate mechanisms Inin place to ftvourfavour methe Independenceindependence ofof thethe valuabanvaluation activftyactivityand andavoid avoidconflicts conflictsof ofinterest, interest,provided providedmat thatany anyof offfie thegroup’s group'scredit creditentities entitieshave havelssued Issued andand outstandingoutstanding moftgage-backedmortgage-backed secuñbes.securities. TheseThese mechanisms will consist,consist, at minimum,mlnimum, ofof anan Intemalinternal ocdecode of conductconduct estabhishingestablishing thethe incompatibilhtiesincompatibilitiesof ofexecutives executivesand andadmlnistrators, administrators,and andother othermaffers matters thaithat thethe entity deemsdeems lltfitbasad based onon itaits size,size, businessbusiness type and other characteñstics.characteristics. Accordingly,Accordingly,Qn on10 10September September2010 2010the the ExecutiveExecutiveCommiffee Committeeof ofMonte Montede dePiedad Piedady yCaja Caja dede Ahorros dede Ronda,Ronda, CádizCadiz, Almerla,Almeria, Málaga,Malaga,Antequera Antequeray y JaénJaen (Unicaja)(Unicaja) created theme Entity'sEntity’s TechnicalTechnical CommitteeCommfttee Inin connectionconnectionwith withme the Graup’sGroup's valuationvaluabon company TasacionesTasaclones Andaluzas, SA.S.A. (TASA), formadformedby by threethree membersmembers represenbngrepresenting theme unitsunfts InternalIntemal Supervision,SupeMsion, Legal Ad,isoryAdvisoryServices Services andand Regulatory Compilance.Compliance. UnderUnderthe the resolutionsresolutions adoptadadopted by ffiethe Board Member of UnicajaUnicajaBanco, Banco,at atita itsmeeting meeting onon2 2 DecemberDecember 2011,2011, therethere has beenbeen continuitycontinuity inin the Bank, itsIta composiboncomposition andand functions ofof thatthat TechnlcalTechnical Commiflee.Committee. OnOn 2727 September 2013, ibathe TechnicalTechnlcal Committee issuedissued ibethe repoñreport on theme 20122012 activitiesactivilies of TasacionesTasaclones Andaluzas,Andaluzas, SA.S.A. (TASA),(TASA),in inrelation relationto tothe theadequacy adequacyof ofthe themechanisms mechanismsin inplace placeto to favourfavourthe the independenceindependence ofof thethe valuation acbvityactivityand andto toavoid avoidconflicta conflictsof ofintemst interest.Set Setout outbelow belowis isa a bñefbrief summarysummary ofofme the contentcontent of thesethese annual reports:reports: -- TheThe InternalInternal controlcontrol andand ITITprocedures procedures apphiedapplied byby TasacionesTasaclones Andaluzas, S.A.SA. (TASA) to toguarantee guarantee thethe fulfllmentfulfilmentof ofita itsIntemal Internalcode codeof ofconduct conductare areanalysed. analysed. -- The actualactual independenceindependence of theme valuationvaluation company withwith respectrespect toto the EntityEntity lais analysed in accordanceaccordance with apphicableapplicable regulabons.regulations. TheThe report waswas submiftedsubmitted toto Unicaja BancosBanco's BoardBoard ofof DirectorsDirectorsen on20 20 DecemberDecember2013 2013 andand toto thethe Bank of SpainSpain onon 1010 JanuaiyJanuary 2014.2014. QnOn 9 DecemberDecember 2008,2008, theme BoardBoard ofof DirectorsDirectors ofof TasaclonesTasaciones Andaluzas,Andaluzas, S.A.U.S.A.U. (TASA)(TASA) approved methe company’scompany's intemalinternal cedecode of conductconduct. 148148 AsAs an Issuerissuer ofof mortgagemortgage coveredcovered bondsbonds andand ordinaryordinary mortgagemortgage bonds,bonds, therethere followsfollows certaincertain relevantrelevant Informationinformationpursuant pursuantto tothe the provislonsprovisions ofofmortgage mortgage marketmarket regulations:regulations: A)A) ActiveActiveoperations operations AtAt 3131 DecemberDecember 20132013 andand 2012 the breakdown of the nominal value of moftgagemortgage Ioansloans and credit supporting thethe Issue of mortgage bonds or whlchwhich havehave beenbeen included in mortgagemortgage shamsshares or mortgage transfertransr certificate, isis asas follows: ThousandsThousands ofof euroseuros 20132013 20122012 LoaneLoans haldheld Inin thethe assetasset transferred 389389 062062 MortgageMortgage partlcipatlonsparticipations - 209209 988988 MortgageMortgage transfertransfer certificatescertificates - 179 074074 AffectsAffects mortgage Ioansloans as collateral forfor loansloans recelvedreceived LoanaLoans backlnobacking11w thelasuanco issuance ofof bondsbonds and mortgagomortgage bandebonds 1550737615 507 376 1605298216 052 982 LoansLoans ineligIbleineligible 36013 601 511511 36206983 629 698 MonIMeet thethe eligibllltyeligibilityrequirements, requirements, exceptexcept for the limitlimil MideArticle5.1 5.1of ofRoyal RoyalDecree Decree 716/2009716/2009 1 280280 508508 1 386386 949949 RestRest 22 321321 003003 22422 242 749749 EhglbleEligible carisloans 11 905905 865 1242312 423 284284 AmountsAmounts not &igibleeligible 165 309309 173 079079 AsnountsAmounts eligIbleeligible 11 740740 556556 12 250250 205205 LoansLoans covedngcovering moflgagemortgage banifbond -- - LoansLoans eligibleeligiblefor forcovemge coverageof ofmodgage mortgagebands bonds 1111 740740 556556 1212 250250 205205 1550737616 607 376 1644204416 442 044 At DecemberDecember 31,31, 20132013 andand 2012, the nominalnominal value of outstandlngoutstanding loansloans andand moftgagemortgage ¡ceneloans backing the lssueissue of mortgagemortgage bondsbande totalstotals toto anan amountamount ofof €15,507,376€15507376 thousandthausand andand €16,052,982€16052982 thousand,thousand, respectively,respectively, andand thethe valuevalue outstandingoutstanding principalprincipalof ofIoans loansand andmortgages mortgages thatthat meetmeet thethe characteñsticscharacteristics of belngbeing eligibleeligibleunder underthe the lssuanceissuance cfof suchsuch support mortgagemortgage amountsamounts toto srian amount of €1€11,905,8651,905,865 thousandthousand aridand €12423284€12,423,284 thousand,thousand, respectively.respecUvely. AtAt 3131 DecemberDecember 20132013 aridand 2012,2012, methe Entity has has notnot lssuedIssued ordinary modgagemortgage bande.bonds. AtAt 3131 December 2013, there are nono loansloans oror mortgagemortgage loansloans which,whlch, whilewhlle remainingremainlng in the portfolio,portfollo, areare subjectsubject to mortgage bandebonds or mortgage transfer certificates. AtAt 3131 DecemberDecember 2012,2012, thethe nominal valuevalue ofofthese these loansloans andand mortgage Ioansloans totaledtotaled €€ 389,062389,062 thousand.thousand. TheThe nominal valuevalue ofof allall ineligibleineligiblemortgage mortgage(caris loansarid and creditcredit thatthat dado nctnot meet theme limits(imita established byby ArticleArUcle 5.15.1 of Royal DecreeDecree 716/2009 which, however,however, complycomplywith withthe the restrest ofof ffiethe requirementarequirements for eligibleeligibleitems, items, asas indicatedindicated InIn Article 44 ofof thatthat Law, totals totals€1280508 €1,280,508thousand thousandat at 3131 DecemberDecember 20132013 (€1386949(€1,386,949thousand thousand atat 3131 December 2012). 1]eThe breakdown ofof barialoans that support the IssueIssue ofof mortgagemartgage bondsbande classifiedclassifled inIn accordanceaccordance withwith diverse criteriacriteria at3lat 31 DecemberDecember 20132013 andand 2012 is as follows:follows: 149 [1. ThousandsThousands ofof aurasouros 20132013 LoansLoana backingbacklng thetho issuancelssuanco ofof bondsbonds OfOf which:whlch: LoansLasos andand mortgagemoflgago bondsbonds eligibleollglble NominalNominal valuevaluo ofof thetho totaltotal outstandingoutstanding mortgagemortgago loansioans andand creditscrodfts 1516507376 507 376 1111905865 905 665 By8y origin:origin: 1515507376 507 376 1111905865 905 865 - -GroupGroup 1515 151151 036036 1111 600600213 213 - -SurrogateSurrogate forfor otherother entitlesantilles 356356340 340 305305652 652 ByBy currency:curwncy 1515507376 507 376 1111905865 905 865 - -Inin euroseuros 1515507360 507 380 1111905849 905 849 - -OtherQther currencycurrency 1616 1616 AccordingAccording theffie paymentpayment situation:sfluatlon: 1515507376 507 378 1111905865 905 865 - -NormalityNonnallty 1515223925 223 925 1111905865 905 865 - - OtherOther situationsslluatlons 283263451 451 -- AccordingAccordlng tolo thema averageaverage maturity:malurfty 1515507376 507 376 1111905865 905 865 - -ToTo 10loyears years 66614456 614 456 44015277 015 277 - -MoreMore thanman 1010 yearsyears andand tolo 2020 yearsyears 44 888688 721721 44 421421 698698 - -MoreMore thanthan 2020 yearsyears andand toto 3030 yearsyear5 33 394394 985985 22 922922 706706 - -MoreMore thanman 3030 yearsycare 609609214 214 546548184 184 AccordingAccording tolo theme Interestinlerest manner:manner 1515507376 507 376 1111905665 905 865 - -FixedFlxed 182182068 068 110110199 199 U - -VariableVenable 1515325308 325 308 1111795666 795 666 Holders:Holdere: 1515507376 507 376 1111905865 905 865 - -LegalLegal entitiesantilles andand individualslndivlduals 44120322 120 322 22156238 156 238 OfOf which:which: propertypropeñy developmentdeve!opment 11067079 067 079 570570384 384 - -HouseholdsHouseholds 1111387054 387 054 99749627 749 627 DependingDependlng onon thethe warranty:warranty: 1515507376 507 378 1111 905905865 865 -Assets!- Assets/ buildingsbuildinga completedcompletad 1313572493 572 493 1010957731 957 731 - - ResidentialResldenilal 1212366840 366 840 1010165449 185 449 OfOf which:wh!ch: officialaiflci&pmtecttn protection 671671 224224 635635 355355 - CommercialCommercial 609609275 275 405405223 223 - RestRest 596596378 378 387387059 059 - -Assets/Assetsl buildingsbuildings underLindar constructionconstruction 450450056 056 333333700 700 - ResidentialResldential 413413190 190 312312846 846 OfOf which:which: officialaifloja! protectionproteo!Ion 1111 552552 1010 161161 - CommercialCommerclal 3131 349349 2020 292292 - RestRaM 55517 517 562562 - -LandsLands 1 1 484484 827827 614614 434434 - - UrbanizedUrbanizad 928928 392392 250250 387387 - - RestRoel 556556 435435 364364 047047 150150 ThousandsTbousands ofal eurosauras 20122012 LoansLoans backingbacklng theiba issuanceIssuanca ofof bondsbonds OfOf which:whleh: LoansLoans andand mortgagemorlgage bondsbonds eligibleeligible NominalNominal valuevaluo ofof thetha totaltotal outstandingoutstandlng mortgagemortgago loansloans andand creditscredlts 1616052982 052 982 1212423284 423 284 ByBy origin:origin: 1616052982 052 982 1212423284 423 284 - -GroupGroup 1515678868 678 868 1212095585 095 585 -- SurrogateSurrogate forfor otheraliar entitiesantilles 374374114 114 327327719 719 ByBy currency:cunency: 1616052982 052 982 1212423284 423 284 -- InIri euroseuros 1616052949 052 949 1212423251 423 251 -- OtherQiher currencycurrency 3333 3333 AccordingAccordirtg thelite paymentpayment situation:sftuation: 1616052982 052 982 1212423284 423 284 -- NormalityNormaiity 1515764942 784 942 1212423284 423 284 - - OtherOthar situationsslluations 268268040 040 -- AccordingAccordlng tolo thelbs averageaverage maturity:maluñly. 1616052982 052 982 1212423284 423 284 --Toloyears To 10 years 86206374 206 374 33796849 796 849 - -MoreMoro thanthan 1010 yearsyeais andand tolo 2020 yearsyears 55038330 038 330 44480198 480 198 -- MoreMore thanlhan 2020 yearsyaars andand tolo 3030 yearsyears 44 004004 425425 33 431431 362362 - -MoreMore thanlhan 3D30 yearnyears 803803853 853 714714675 875 AccordingAcoording tolo thethe InterestInterest manner.manner. 1816052982 052 982 1212423284 423 284 - -FixedFizad 137137385 365 7575065 005 --Variable Variable 1515915617 915 617 1212348219 348 219 Holders:Halders: 1616052982 052 982 1212423284 423 284 -- LegalLegal entitiesantilles andand individualsIndividuals 44589934 589 934 22559945 559 945 OfOf which:which: properlypmpeñy developmentdevelopment 11 344344 505505 768768 548548 - -HouseholdsHouseholds 1111463048 463 048 99883339 863 339 DependingDependlng onon thethe warranty:warranly: 1816 052052 982962 1212423284 423 284 -- Assets/Asselsl buildingsbulldings completedcompletad 1313434277 434 277 1010983681 983 681 - ResidentialResidential 1212 680680 973973 1010 454454 806806 OfOf which:which: officialaiflela! protectionpmtection 470470 949949 407407 445445 - CommercialCommerclal 625625 267267 447447 191191 - RestRest 128128 037037 8181 684684 -- Assets/Assels/ buildingsbuildings underunder constructionconslnjction 538538 597597 376376 878878 -- ResidentialResldenilal 491491 580580 346346 761761 OfOf which:wh!ch: officialafflai&protectian pmtection 99911 911 99 058058 - - CommercialCommerclal 3737 551551 2525 686686 - - RestResI 99486 466 44 431431 - -LandsLands 22 080080 108108 11 062062 725725 -- UrbanizedUrbanizad 928928 801801 311311 098098 - - RestResI 11151 151 307307 751761 627627 151151 ______ At 3131 DecemberDecember 20132013 and 2012 theme breakdown of theme nominal value of all eligibleeligiblemortgage mortgageloans, loans, basedbased on methe ratiorato between methe amount of thethe transactionstransactons andand methe appraisedappraised values inin accordanceaccordance with ffiethe latest avallableavailable appraisalappraisal ofof respectiverespective morigagemortgage assets,assets, is15 as follows:tollows: Thousands of eurosauras 2013 Greater thanthan Greater than 40%40% andand loseless 60% andand leesless LeesLess oror or equal to Greater or equalequal toto CrestarGreater egualequal toto 40%40% 80%60% thanthan 60% 80%80% alal 80% Total LoansLoans eligible -- OnOn houslnghousing 23639292 363 929 35197653 519 765 - 45946014 594 601 - 1047829510 478 295 -- QnOn othergoodsother goods 805357805 357 594111594 111 2810228 102 - - 14275701 427 570 3 169 286 4 113 876870 28 102 4 594 601 -- 11 906905 865 Thousands of euros 2012 Superiora)Superior al Superiora)Superior al inferior a a 40%40% ae InferiorInferior Superior 60%60% ee InferiorInferior Superior IgualIgualal al40% 40% oo Igualigual alal 60% al 60%60% oo IgualIgual alal 80% alal 80% Total Loans eIlgibIeeligible -- QnOn houslnghousing 22944572 294 457 34909663 490 966 - 50161445 016 144 - 1010801567 801 567 -Onothergoods- On other goods 820 202202 767749767 749 3376633 766 - 16217171 621 717 31146593 114 659 42587154 258 715 3376633 766 50161445 016 144 -- 1242325412 423 284 informationInformationrelatng relatingto tome thenominal nominalvalue valueof ofmortgage mortgageloana loansand andcredit creditthat thathave have beenbeen eliminatedeliminated oror addedadded toto thethe podfolioportfolioin in2013 2013and and 20122012 isis setset out belowbelow: ThousandsThousands of eurosBums 2013 2012 Loans eligibieeligible LaansLoans not Loans olIgibleeligible Loans not eligibleeligible eligibleeligible SoglnnlngBeginning balance 1242328412 423 284 36296983 629 698 1276590012 765 900 41614144 161 414 ODisposalsle posale (1( 1 502502 521) ( 792193)792 193) (1(1 669669 339)339) (1120870)(1 120 870) CancellatlonsCancellations due maturitymaturlty ( 12 350) ( 8120)8 120) ( 45951)45 951) ( 31 481) AdvancedAdvanced cancellatianscancellations ( 150099)150 099) (176567)( 176 567) ( 245392)245 392) ( 147643)147 843) SubrogallonSubrogation of otlerother entitiesentities ( 11736) 736) ( 55954)55 954) - Rest (1( 1 338 338)336) ( 607506)607 506) (1(1 322 042) (( 941 543)546) AddltlonsAdditions 985985 102 754764 006 13257231 326 723 589 154 Originated by GmupGroup 369 000000 133450133 450 314 980 52 889 SubrogallonSubrogation of otherother entilesentitles 8 453453 22 520520 8 172 1 938 ResiRest 607649607 649 628 036 1 003 571 534 327 Final balance 1190586511 905 865 36013 601 511511 1242328412 423 284 36296983 629 698 152 The movemenismovements included In Ibathe item Otber,"Other', whenwhen associatedassociated with uDisposals"Disposals forfor ffiethe year,year', relate basically to methe followingflows flowsthat thatgenerate generatechanges changes in methe nominal balance of eligibleeligibie andand non-eligible loans loans andand areare applicable toto movementsmovements in bothboth 20132013 andand 2012: o Transfers between thethe eligibleeligibie and non-eligiblenon-eligible portfolios, representing additions to the itemítem "eligible“eligible loans”loans" andand disposalsdisposais fromfrom thetbe "non-eligible‘non-eligible Ioans”loans" portfohoportfolioor orvica viceversa. versa. TbisThischange change leis common to movements associatedassociated withwitb 'AdditionsAddftions forforthe the yearyear" (with(withthe the oppositeoppositesign). sign).Transfers Transfersare are duedue to changes inin theme fulfilmentft’lfllment of eligibiiftyeligibilityrequirementa requirements inInaccordance accordance withwfth applicable regulationsregulaüons (mainly thethe change InIn theffie LTVLW ratioratio forforIhe the utilizatío&repaymentutilization/repaymentof ofloans loansor orthe the reviewfupdatereview/update ofof appraisals),appraisals). o Repayment ofof loansloans thatthat remain outstandingoutstanding withwithrespect respect toto ffiethe total loansloans declared in the previous pehodperiod andand areare not üiereforetherefore heatedtreated as repaymentsrepaymenta atat maturitymaturity or eadyearly repaymenta.repayments. TheThe movementsmovementa included inIn the Itemítem "Other',“Dther, when associatedassoclated withwith "Additions“Additions for thethe year,year", relate basically to thethe followingflows flowsthat thatgenerate generatechanges changes inin ffiethe nominal balancebalance of eligible andand non-eligible loans loansand and areare applicable toto movementsmovements in bothboth 20132013 andand 2012:2012: o TmnsfersTransfers between theIbe eligibleeligible andand non-eligiblenon-eligible portfolios, represenUngrepresenting additions totome the itemitem "eligible“ellgible Ioans”loans" andand disposalsdisposais fromfrom theme "non-eligible“non-eligible loans”loans" portfolioportfolioor orviGa viceverse, versa. luisThis changechange isIs common loto movements associatedassociated with ‘Disposals'Disposals for thethe yearyear" (with the the oppositeopposite sign).sign).Transfers Transfersare are duedue to changes InIi the fulfilmentfulfiiment of eligibility mquirements requirements ininaccordance accordance with applicabieapplicable regulationsreguiaUons (mainly(mainly thethe change Inin methe LTVL1V raUoratio forforme the utillzaUonkepaymentutilization/repaymentof ofloans loansor orme thereview/update review/update ofofappralsais). appraisals). o EffectoftheEffect of the liquidauonliquidationof ofsecuhtizaUon securitizatlonfunde fundsdescñbed described inIn NoteNote 306.30.6. U The avallableavailable balancebalance of mortgagemortgage loansloans thatthat supportsupport Ibethe issueissue of mortgagemortgage bondsbonds at 31 December 2013 and 2012 ¡sasis as follows:foilows: Thousands of euroseuros 2013 2012 PotentlailyPotentially eligibleehgible 270270 280280 417417 363363 Ineligibleneligible 145 985 156 166186 416 265 573549573 549 The nominal valuevalue of the available amounts (committed(committed amounts not drawn down) relating to allah mortgage loansloans and creditcredit potentiallypotentially ehigibleeligibleat at 3131 December 20132013 andand 2012 totalstotals €270,280€270280 thousand €417,363 thousand,thousand, respectively, andand Ibethe amountamount thatthat isis notnot potentiallypotenüahly eligibleeligible totaistotals €145,985€145985 thousandmausand €156,186€156.186 thousand,thousand, respectively. At 3131 December 2013 2013and and 20122012 thethe GroupGroupdoes does notnot havehave anyany replacementreplacementassets assets associated to issues of moñgagemortgage bondsbonds oror debentures.debentures. C. 153 B) UabilityLiabilitytransactions transactions The breakdown atat 31 December 2013 and 2012 of theme nominal aggregate value of mortgage bonds in force lssuedIssued by the Bank and theIhe mortgagemortgage funds and mortgagemartgage transfer certificates thatthat areare active atat that date, based on their residual terms, is as follows:foflows: Thousands of euros 2013 2012 MoñgagobondsMortgage bonds - McñgageMortgage bondabonds lasuedissued 85698 569 1B4184 91769269 176 926 lssuedIssued forfor publicpubllc offeringoffeñng 22502 250 000 2 250 000 - Residual matudtymaturity loto 1 ysaryear 1 000 000 - - Residual maturity moremoreIban than 11 yearyear andand loto 22 yearsyears 750 000 1 000 000 - Residual maturftymaturitymore moreIban than 22 yearsyears and loto 33 yearsyears 500 000 750 000 - - Residual matuñtymaturitymore moreman than 33years years andand loto 55 yearsyears - 500 000 - Residual maluñtymaturitymore moreman than 55years years andand loto 10 yearsyears - _ - Residual maturltymaturitymare more Ibanthan 1010 yearsyears ResiRest of issuesissues 400 000 550 000 - - Residual matuñtymaturity toto 11 yearyear - 150 000 - Residual malurltymaturitymore moreIban than 11 yearyear andand loto 22 yearsyears - _ - Residual matudtymaturitymore moreman than 22 yenyears and loto 33 yearsyears - - -- Residual matudlymaturitymore morethan than3 3years years andand toSto 5 yearsyears 140 000000 7000070 000 - Residual matuñlymaturity moremoreIban than 55years years andand loto 10 yenyears 260000260 000 330 000 - - Residual matuñtymaturity moremore Ibanthan 10 yearsyears - - DeposllsDeposits 59191845 919 184 53769286 376 926 -- Residual matudtymaturity loto 1 yearyear 468 292 457 741 - Residual matutitymaturitymore moreIban than 11 yearyear andand loto 22 yeatyears 314 744 466468 293 - Residual matuñtymaturitymore moreIhan than 22 yearsyears and loto 3 yearsyears 914 074 314 744 - Residual maturftymaturitymore moreIban than3 3years years andand loto 55 yearsyears 1 451 258 1 714 074 - Residual matudtymaturitymore moreIban than5 5years years andand loto 10 yenyears 1 331 893 1 783 151 - Residual maluñlymaturity moremore manthan io10 yearsyears 1 438 923 1 638 923 Shares issuesIssues morigagemortgage - 209 988 lssuedIssued byby publicpubilc offeringofferlng - OlherissuesOther issues - 209988209 988 Mortgage transfer certificabacertificates Issued - 179 074 issuedIssued by publicpubflc offeringofferlng - - OtherissuesOther issues - 179179074 074 85691648 689184 9 585:9889566988 154 46.46. InformationInformationtransparency transparencyIn inconnection connection withwith flnanclngfinancing forfor construction,construction, property development,development, U homehome buylngbuying andand assetsassets acquiredacqulred In paymentpayment ofof debbdebts 46.146.1 QualitativeQualitaUve informationinformaUon TheThe following should shouldbe be notednoted Inin relahonrelation toto Ihethe minimum informationinformationthaI thatmust mustbe be discloseddisclosed by consolidated groupsgroups of financial instilutionsinstitutions andand by individual financialfinancial institutlonsinstitutionsthat thatdo do notnot fornform palipart ofofa a group:group: - WithWith respectrespect lato Ihethe financing ofof constructionconstruction andand property development,development, financial institutionsnstitutions are are askedasked toto disclose theirmeir policies and strategies implementedimplemented Inin connectionconnection with problemaflcproblematic assetsassets inin thisIbis Industry,Industry, withwith aa viewviewto to Ibethe short,short, mediummediumand and longlongterm. term.These These expasuresexposures mustmust sisoalso be evaluated Inin termsterms of the resistenteresistance teststesis publishedpublished beforebefare thethe summer,summer, ifit theIbe entityentity participated in them.them. - FlnancingFinancing needsneeds In thethe marketsmarkets andand in the short, medium and long-termlong4erm strateglesstrategies implemented must eisaalso be evaluated (without(without prejudiceprejudicelo tothe the factfactthat thatIbe the BankBankof ofSpain Spainmay maysend send ataat a later datedate detaflsdetails relatngrelating toto minimum informationinformation onon financingfinancing andand Iiquidityliquidityneeds). needs). UnicajaUnicaja Banco,Banco, as partpali ofof itslIs riskñsk policy, partculadyparticularly ininconnection connectionwilh withconstruction constructionand and propertyproperty developmenl,development, hashas a numbernumber ofof specificspeciflc policiespolicies and strategiesstrategies inin placeplace toto favourftvour thethe fulfilmentfulfilment ofof borrowerborrower obligationsobhgatlons and mitigatemitigateme the Group’sGroup's exposure.exposure. AltemativesAlternativesare aresought sought loto pernilpermit ffiethe completioncompietion andand sale ofof propertyproperty developments,developments, analysinganalysing thethe renegotiation of of exposuresexposures ifIf thisthis improves ffiethe Group'sGroup’s credit position and basicallybasically loto aliowallowIba the borrowerborrowerlo tocontinue continuelo todo dobusiness. business, ThisThis tekestakes intomb accountaccaunt priorprior experience with the borrower,borrower, compliance record, declared intention loto pay, capacitycapacity loto generategenerate cash flows andand new collateralcollateral fumishedfurnishedbefare beforeexisting existingguarantees guaranteesare are exceeded.exceeded. Firstiy,Firstly,provided providedthere thereis isa a certaincertain paymentpayment capacitycapacity and altarafter exhausting allah possibilitlespossibilities ofof collectlngcollectingthe the pealpast due debt,ÓÑI, theme GroupGroup studiesstudies theIba grantgrant ofot principalprincipal grace periodspeñods tolo allowallow development of ifiethe landhand financed,flnanced, completioncompletionof of propertypropertyunder under developmentdevelopmentand and salesale ofof finishedfinished units.units. Thefle analysisanalysis performedperforned prioritisesprioritises projectproject feasibilityfeasibilityso soas as loto avoidavoidan an increaseincrease in Ibethe investment in properties for whichwhich futurefuturesales sales areare clearlycleady possible.possible. lfIfsupport supportmeasures measures areare not possible or sufficient,other otheralternatives alternativesare are sought,sought, suchsuch asas dation in payment or analasset purchase, theme finalfinal optionopilan beingbeing aa courtcaurI claim and Ibethe subsequentsubsequeni repossessionrepossession ofof theIba propertiesproperties throughthrough thethe enforcement of thethe mortgage guarantees. AllAh IrregularIrregularasseffi assets included in thethe Group’sGroup's consofldatedconsolidated balancebalance sheet areare managedmanaged ultimatelyulümately for Ibethe purposes of divestment or leasing.leasing. ToTo this end, the UnicajaUnicaja Banco Group has special-purposespacial-purpose companiescampanies speclalizedspecialized in the management of propertyproperty developmentdevelopment projects,projects,selling sellingof ofproperties propertiesand and leasingleasing of investment propertiesproperties (Note 1.1.3). TheThe GroupGroup alsoalso has specific units responsible forfor developingdevelopingmese these strategiesstrategies and coordinating Ibethe actions of Ibethe special-purposespecial-purpose subsidiarias,subsidiaries, officeoffice networknetworkand and otherother agenisagents involved.Involved. Rnally,Finally,Ihe theGroup Grouphas has thethe website www.unicajainmuebíes.com,www.unicajainmuebles.com, Dnaone of Ibathe mainmain toolstoolsemployed employedlo topresent presentmese these anataassets to theIba general public.pubhic. 155 46.2 QuantitativeQuantitative informationInformation Set out below is aa breakdownbreakdown ofof financingftnandng forbr constructionconslruction and propertyproperty development (1),(1), and of assetsassets bac1ingbacking such financing (1), at3lat 31 December 2013 and 2012: ThausandaThousands ofof lumaeuros ChartlChart 1,, 20132013 20122012 EscasaExcess ovarover EscasaExcess Ovarover dede valuevalue ofof SpeciflcSpecific dede valuovalue ofof SpeciflcSpecific GranGross the collateralcollabral covecoverage GrataGross thehe collateralc&t#tnt covangecoverage RagistaredRegistered credit (buslneas(business In Spain)Spain) 20147172 014 717 119 971 633 905 906 22397 397 687687 158 572572 722722 149 WbichWhich doubfluldoubtful 714714 627627 119971119 971 440440 638638 731731 542542 158158 572572 305305 207207 aubstandard - Of which substandard 580580 143 193 268268 454454 472472 -- 121 895695 MennndumMemorandum 11amitem Tota]Total generalgeneral aliowanceallowance (total(total husmeas)business) (3)(3) - - 1526015 280 - 1901319 013 Bad anataassets (4)(4) 257257 287287 - - 194 557 Memorandum 11amItem (6)(6) Book valuevalue 2013 2012 Tota]Total iendinglending lato costumerscostumers eudingexcludingGovomment Government (bu&nesa(business InIn Spain)Spain) 17 427427 548546 1935453419 354 534 Tota]Total consdidatedconsolidated aseetaassets (total(total husMes,)business) 4141 242242 921921 4071440 714 264264 (1)(1) ThisThis entalla,entails, larfor axample,example, that Itif the dabtordebtor iris: (a) a propertypmpefty company thatthai uses the financing granted larfor a purpose otheralbar hanthan constructioncanstmctlon Dror property development,development,It itwul will natnot bebe includedincludad InIn Ibisthis tabla;table; and (b) aa companycompany whosewhasa corecore businessbuslness Isla notnat constructiona,nstmctian orDr propertyproperty develapmant,development, bolbut Ibathe credit itis employademployed to Imantefinance buildingsbulidinga larfor usenuse in pmpertyproperty dovelopmant,development, It wiIlwill bebe indudadincluded InIn Ibisthis tabla.table. (2)(2) TIliaThis is methe amountamjnt of hethe excess ofal thehe grossgrasa amountamaunt alof aadleach loan overovar thehe value ofdha the realreal propertypraperty rightsñghts receivedrevolved as co]Iatera],collateral, lfif applicaNe,applicable, calculatedcalculated asas aUpWatedstipulated Inin ExblbftExhibit IXIX ofof CIrcularCircular 412004.412004. [Consequanuy.[Consequently, Ibathe valuovalue of hethe ma]real prapartyproperty ñghtarights isa Ibathe lowarlower ofof Ibathe caatcost ofof hethe asamaassets and thelrtheir appralsedappraised valuevalue inIn heIrtheir arrentcurrent ndiflan,condition,weighted weightedu&ng usingpercentagea percentagestbat thatrango rangelram from70% 70%lv to 50%,50%, dapendiogdepending onon Omathe naturanature of hethe anataassets mortgagedj,mortgaged). (3)(3) ibisThis lais Ibathe totaltotal amauntamount of ibathe generalgeneral provisionpravialon recognizadrecognized larfor anyany item1am by Ibathe cansalidatedconsolidated group (total buslnesa).business). (4)(4) GrasaGross amount of Ibathe loan usedusad tola financefinance constructionconstructian amiand propertypropefty davelapmentdevelopment recognizedrecagnlzad by hethe group'sgmups credit entitiesantilles (business(buolneas In Spain)Spain) and wriftanwritten dfoff hethe balance ahaatsheet due tota beingboing classifieddanified as a "write-offwrIte-af asad€.assets". (5)(5) ThaThe canyingcarrying anmuntamount lais hethe amount stat wbidiwhich thetathese asaeteassets are recognized inIn ibathe balance sheetabatI afterafier deductingdedLcdng any provisions.profsiona. 156 ______ Set out below Is a breakdownbreakdown of Financing for constructionconstruction andand property development,development, operations recognized by creditcredit entitiesentities (buslness(business in Spain)Spain) atat 3131 DecemberDecember 20132013 andand 2012: flousandsThousands of eurosauras Chart 2 GroasGross amount (6) fl 2013 2012 WilhoutWithout mortgagemortgage 496 812 521 841 W},ftWhit mortgagemortgage m(7) 11517905 517 905 11875846 875 846 BulldingsBuildings crpletedcompleted (8) 922767922 767 11099147 099 147 HouslngHousing 775766775 766 972716972 716 RealRest 147147001 001 126126431 431 BuildlngsBuildings underunder constwctlonconstruction (8) 187374187 374 238614238 614 HouslngHousing 183183946 946 225701225 701 RealRest 34283 428 1212913 913 Sol!Soil 407 764784 536538 085 Developed Iandland 346688348 688 442140442 140 Other soil 5907859 076 9594595 945 U Total 20147172 014 717 23976872 397 687, 6) ibaThe 91055gross amnunlamount In Ihathe TablaTable 1I linelina 'Creditcmdit recognizedreco9nlzed byby thetha group's9roup’a creditcredit entitiesenlitias (business(buslneas inIn Spain)"Spaln) laIs equalaqual tuto fuethe amount 1,1In ibathe TablaTable 22 lInaline“rotar. 'Total'. a (7) lndudlng al! moftgage oparationa, irrespective ol the percentage of outstanding risk with mspect tu the latast-avallable apprslsed value, (7)Including all mortgage operations, Irrespective of the percentage of outstanding risk with respect to the latest-avallable a ppraised value, (6)(8)IfIfa a buildingbulding isa usedusad forfoi bothXth residentialresldenti& (housing)(housin9) and commercialccnmertial (offices(aflicta and/oranwor premises)premisas) purposes,purposas, fuethe flnandngfinancing wilwill be IncludedInciuded In fuethe catsgorycategory fiatthat predominetas,predominates. U Set out below lais aa breakdown atat 31 December 2013 and 2012 of Home-buyer loans,cena, operahonsoperations recognized by credit entitiesentities (business(business in Spain): TbousandsThousands of euros Chaft3Chart 3 2013 2012 GroasGross Doubtful GroasGross DoubtfulDoubfful U CredItCredit forhousefor house purchasepurchase 100033346 033 346 570647570 647 10 372 761 454723454 723 WrthoutWithout modgagemortgage 11 457 787 15 404 1 773 Wdhmortgageç7) i With mortgage (7) 1010021889 021 889 569860569 860 1010357357 357 357 452950452 950 i Li Set outata belowbelaw jais a breakdown of Home-buyer mortgagemortgage creditcredit showingshowingtotal totaliisk riskas asa a pementagepercentage of ffiethe latestlatest- avallableavailable appralsedappraised value (LTV),(Liv), operations operations recognizedrecognized byby creditcreditentities entities(buslness (business inin Spain)Spain) atat 3131 December 2013 and 2012: 0 LoyolaLevels ofof LTVLiv (10) Chart4chart 4 31 DecamborDecember 2013 LWSGO%LT1/580% 60% U GroasGross 50675025 067 502 44318154 431 615 450325450 325 7244772 447 1010021889 021 889 Doubthil(9)Doubtful (9) 138415136 415 311206311 206 8209582 095 4014440 144 589860569 880 U 157 LevoisLevels oILWof LTV (10)(10) Chpfl4ftlEt4 3131 December 20122012 LW60%LIV560% 60%<1:11/580%60%cLWSBO% 80%<1.11/5100%60% GroesGross 49775544 977 554 48059304 805 930 514761514 761 5911259 112 1035735710 357 357 Doubtful(9)Doubtful (9) 103566103 566 253243253 243 7013970 139 2600226 002 452950452 950 (9)(9)The The aumsum of Ibathe gros.gross amwnlaamounts andand doubffuldoubtfulIoans loansin insaab each tangerange ofof Ibisthislabia tablematches matchesthe the amountsamounts shownshownon onIba theTabla Table 33 linaline forfor mortgagemortgage creditcredit, (ID)(10) LivLTV isIs the ralloratio oblainedobtained by dividlngdividing ñskriskoutsianding outstandingal atIba thereportlng reportingdate dateby bylbs thelatest-available latest-availableappraisad appraised value.value, Set out below is ea breekdownbreakdown ofof assets awarded toto thethe consolldatedconsolidated groupgroup entitiesentities (business(business inin SpaIn)Spain) (11)(11) atat 3131 December 20132013 and 2012:2012: TbousandsThousands ofof eurossums CuadroSCuadro 5 20132013 20122012 BaokBook valuevalue CovengeCoverage BankBook valuevalue CovngeCoverage Real EstalaEstate aasetaassets fmmfrom fund intended loto 1 552 552 023023 853853 161161 11 308308 460460 691691 821821 BulldingsBuildings completadcompleted 415415 234234 155 185185 391391 648648 126126 230230 Hou&ngHousing 343343 834834 126 421421 332332 25826B 106106 339339 DIjisteOthers 7140071 400 2876428 764 5938059 380 1989119 891 BuddlngsBuildings underunder consfrudionconstruction 119119 692692 8474164 741 7798677 986 4252242 522 HouslngHousing 116116 821821 6325683 256 7611478 114 4139441 394 Other 28712 871 14851 485 10721 872 11281 128 SoilSoil 11 017017 097097 633633 235235 838838 826826 523523 069069 Developed landland 540540 387387 332332 513513 469469 102 288288 627627 OtherOther 476710478 710 300722300 722 369724369 724 234442234 442 Real EstateEstala mortgagemoilgage financingflnanolng fmmfrom 325620325 620 144038144 038 327263327 263 135510135 510 OlberOther RealReal EslalaEstate anal.assets(12) (12) 102102 899699 4327443 274 221718221 718 121121 200200 EquityEquity instmmenls,Instruments, abatesshares InIn andend Ynandngfinancing grantedgranted loto entilesentities holding realrealestate estateassets assets(13) (13) 363363 321321 502502 - 11 980980 705706 ¶1 040040 794794 11857 857 943943 942948 531631 (11)(11) ThusThis wUlwill indudeinclude asanassets awarded,awarded, auimd,acquired, purdiasedpurchased Dror exuhangeexchange for debt derivingderMng ftomfrom finandngfinancing grantadgranted byby lbsthe gmupgroup ompaniescompanies dudngduring businesabusiness lnInSpain, Spain, andand abatesshares inIn siloand finsncingfinancing granted loto ron-consolidatednon-consolidated antillesentities holdingholdingsuch suchanata assets. (12)(12)This This MUwill IndudaInclude realreal estalaestate eneaassets thaIthat do notnal derive from«orn loansInane tolo constructionconstuction andand property development companies,companies, oTor home-buyer loans,nana, (13)(13) AhAll assets of Ibisthis kind wllIwill be recognized, includinglnduding equity lnstmmenta,instruments,ahams shares InIn andand finanoingfinancing grantedgranted toto entities holding malreal estalaestate asaeta,assets, mentioned In lineallines 1 loto 3 of Ibisthis labia,table, and equityequlty lnsb’umentsInstruments andand shamsshares In constwctlonconstruction ororpmperty propertydevalopment development companiescompanies recaivadreceived InIn payrnanlpayment ofof daba.debts. 158 47. InfonnatlonInformationon onVio the deferraldeferralof of paymentspayments toto suppllers.suppliers. AdditionalAddltlonal ProvislonProvision ThreeThree -• Duty of Informationinformation -- Law 1S!201015/2010 (5(5 July)July) InIn accordanceaccordance with Law 15/20101512010(5 (5July), July),which whichamended amendedLaw Law3/2004 3/2004(29 (29December) December)on onmeasures measures toto combatcombat latelate paymentpayment Inin commercialcommercial transactions,transactions, as furtherflirther developed byby thethe RulingRullng of 29 December fromfrom thethe Institute of AccountingAccounting andand AudibngAuditing(ICAC) (ICAC)on oninformaUon informationto tobe beincluded includedIn inme thenotes noteste toannual annualacwunte accounts lnin connectionconnection wiffiwith ffiethe deferraldeferral ofof paymentspayments to suppliers in conmemialcommercial transactons,transactions, methe followingfoliowing should should bebe noted:noted: - InIn viewview ofof thethe Entity'sEntitys corecore activities,activites, methe information on onme the deferraldeferral ofof debtdebt relates basically to paymentepayments toto suppllersupplier forfor seMcesservices and sundry supplies received, other manthan payments to deposit holders and holders of secuñtiessecurities issued by the Entity,Entity, whichwhich havehave beenbeen made, Inin any event, inin strictstñct compliancecompliancewith withcontractual contractualand andlegal legaldeadlines deadlinesin ineach eachcase, case, whetherwhetherdebts debts payablepayable onon demanddemand or onon aa deferreddeferred basis.basis. - PaymenftPayments made byby UnicajaUnicaja Banco to suppliers solely for ifiethe provision ofof sundrysundry servicesservices duñngduring 20132013 totaledtotaled €101.120€ 101,120 mousandthousand (€(€93350 93,350 thousandthousand inin 2012);2012); thethe servicesservices werewere providedpmvided withinwithin thethe legal deadlines and as contractuallycontractually stipulated. At At31 31 DecemberDecember 20132013 andand 2012, the balancebalance pendingpending payment toto suppliers isIs Immaterialimmatehal andand compliescompiles with the paymentpayment periodpenad requirementsrequirements of LawLaw 15/2010(515/2010 (5 July). 48. Customer seMceservice AsAs a result of desegregation operationopenation descñbeddescribed in NoteNote 1.1.2 ofof mesethese Notes to theffie consolidatedconsoildated annual accounls,accounts, theme Entity'sEntitys Customer ServiceSence Department is15 responsibleresponsible forbr handlinghandllng claimsclalms and complaintscomplalnts relating toto Monte dede Piedad y Caja de AhorrosAhorros de Ronda,Ronda, Cadiz,Cádiz, Almeria,Almene, Málaga,Malaga, Antequera yy JaénJaen (Unicaja),(Unicaja), andand Banco Unicaja, SA.S.A. -- SociedadSociedad Unipersonal. liiIn compliancecompliance withwithArtlcle Article17.2 17.2of ofOrden OrderEC0R34/2004, ECO/734/2004,of of11 11March, March,on oncustomer customerdepartments departmentsand and seMcesservices and protection of financial institutions,institutions,a a bñefbriefsummary summaryis isprovided providedof ofme thecontents contents ofof Viethe report of Viethe Group C Customer ServiceService DeparfrnentDepartment 89.9% of Viethe complaintscomplainte andand ciaimsclaims received in 20132013 werewere resolved (83% atat 31 December 2012);2012); methe remainingremainingpercantage percentage pendingpendingat at 3131 DecemberDecember 20132013 areare expectedexpected foto be resolved duñngduring methe flmtfirst twotwo monthsmonths of the followingyear year atat maximum,maximum,in in accordanceaccordance withwith thethe Order and Unicaja'sUnicaja’s regulationsregulations goveminggoverning thethe protectionprotection ofof customers.customers. r. 159 UNICAJA BANCO,BANCO, S.A. - SOCIEDADSOCIEDAD UNIPERSONALUNIPERSONAL AND ITS SUBSIDIARIES (UNICAJA BANCOBANCO GROUP) DIRECTORSDIRECTOR'S REPORT FORFOR THETHEYEAR YEAR 20132013 At year-endyear-end 2013, the UnicajaUnicaja Banco Group'sGroup’s capitalizationcapitalization level is among the highesthighest ofof allsil Spanish financialfinanclal institutions.institutions. Shareholder’sShareholder's funds reachedreached €€ 2,1102110 million,mUilon, with a 13,2%132% capitalcapItal adequacy ratio.ratio. TheThe majoritymaJodty of shareholders’shareholders' funds consists of core capital (Unicaja hashas nevernever lssuedissued preffirredpreferred sharea),shares), representing 12.9%12,9% of risk-welghtedrisk-weightedassets. assets. Core capital exceeds theIhe minimumminimum requirements stipulatedsilpulated in Spanish legislation by € 619 million (9%) (9%)st atffie the yearyear end.end. Unicaja Banca’sBanco's discountabledlscountablo Ilguidliquid assets MlilIonsMillions of euros BasIcBasic Equity 2 061 EqultyEquity SecondSecond Category 49 Total Computable EqultyEquity 21102 110 RlskWeightedRisk Weighted Assets 1616017 017 Percentage of rlsk-welghtodrisk-weighted assets (RWAs) 13,2% MlnimumMinimumRequired Required (% of APRs)APRs) 8,0% Surplus over minimummlriimr requiredmqutred (infin Millions ofof euros)euros) 828628 Principal CapItalCapital 2 060 PercentagoPercentage of rlsk-welghtodrisk-weighted assotsassets (RWAs) 12,9% MlnimumMinimum RequiredRequired (% of APRs)APRs) 9,0% SurpiusSurplus overayer minimum required (in(In MillionsMiliions of ofeuros) cures) 619 In aa complex, demanding environment with dediningdeclining GDP,GDP,me the UnicajaUnicaja BancoBanco GroupGroup postedposted a profitprofit afterafter taxtax of€of € 71.7 millionmilliafi Inin 2013.2013. MillionaMillions of euros December DecemborDecember Annual ratorate Income Statement Unicaja Bank Group 2013 2012 of changochange Net lntareztinterest 612,1 609,6 0,4% % Of averageaverage total assets (ATMs)(ATMs) 1,5% 1,5% Net feosfees and commisslonscommissions 136,9 136,0 0,7% Dividends and andothershares other shares results 40,5 26,6 52,3% Result fronfrom financialfinancialtransactlons transactionsand andexchange exchange dlfferencesdifferences 241,2 12,5 n.a.n.s. Other productaproducts aperatingoperating IncomeIncome/ /expenses expenses 11,0 ( 30,2) n.a.n.s. GroasGross MarglnMargin 1 041,7 754,5 36,1%38,1% % Of averageaverage total assets (ATMs)(ATM5) 2,5%2.5% 1,9% OperallngOperating expensesexpenses ( 393,8) ( 407,4) ( 3,3%)3,3%) Net operatlngoperating income beforobefore loasloss provlsionsprovisions 647,9 347,1 66,1%86,7% ProylsionaProvisions andand otherother resuftsresults ( 578,3) (1 204,4) (52,0%) Profit befarebefore tax 69,569,6 1( 657,3)857,3) n.a.n.s. lncometaxIncome tax 2,2 280,1 ns.n.s. ConsolidatodConsolidated profltprofit 71,7 ( 577,2) n.a.n.s. MoragoAverage Total AnataAssets (ATMs) 41 070 40 051 2,5% 1 The 2013 was generated by maintaining high net Interestinterest income (€612,1(€ 612.1 million), sllghtlyslightly aboyeabove the priorprior- year figure, represenUngrepresenting 1.5% of average total assets. Contributions werewere mademade by a reduction in financing casiscosts and an increase in ffiethe volume and profitabilityprofitabillty of market investments,invesinenis, offsettingoffseftng ffiethe dedflnedecline in financial income In a context of diminishing global credit volume, ñsingrising loan delinquency and Iowlow interest rates,rates. MiIllonsMillions of euros 20132013 2012 VisId.!Yield.! Visid.!Yield.! DetallDetail Net Interest and Average Average AvarageAverage AvarageAverage Media TypeaTypes UnlcajaUnIcaja Banco Group balance (1) Result (2) cost balance (1) Result (2) cost Assets: Credit instltutionsinstitutions and money market operations 7 449 42,6 0,57% 50455 045 40,1 0,79% Fixed4ncomeFixed-Income securitlessecurities 95699 569 373,1 3.90%3,90% 86818 681 294,7 3,39% LaansLoans and advances to customers nctnot doubtful 1885418 854 673,6 3,57% 20 859 821,2 3,94% ATMs ¡/ Total interestInterest incomeIncome 41 070 1103,31 103,3 2,69% 40 051 1166,71 166,7 2,91% Llabilities:Liabilities: Credit Instilullonoinstitutions and money market operations 1010604 604 66,8 0,63% 95419 541 81,0 0,85% Deposits 1696416 964 270,9 1,60% 1553815 538 254,7 1,64% EmlsslonsEmissions 89938 993 141,3 1,57% 1002810 028 209,9 2,09% ATMs 1/ TetalTotal Interestinterest paid 4141 070 491,2491,2 1,20% 4005140 051 557,1 1,39% ATM 1/ Net Interest 41 070 612,1 1,49% 4005140 051 609,6 1,52% (1) dalculatedCalculated basadbased arton quarr.ndquarter-end balances. (2) IndudingIncluding provlslaningprovisioning adjustmen.adjustments. Net feetse and commission income rose 0.7% onQn 2012, due basically to the Increaseincrease in the Investmentlnvestment fund and pension plan businesses, offsetting thethe decline in other business aleas.areas. Net gainsf(loss)gains/(loss) on financial assets and ilabilitiesliabilities totaled €E 241.4241.4 milllon,million, duedue malnlymainly toto thethe partialpartial realisatlonrealisation ofof gamagains accumulated in the fixed lncomeincome investments poñfollo.portfolio. A ñgomusrigorous cost containment and control palicypolicy brQughtbrought a furiberfurther reduction Inin opemtingoperating expenditireexpenditure (3.3%) wimwith respect toto 2012. The sound performance of expenses and income resulted in an efficiencyefficiency ratiorallo (operating(operating expenses dMdeddivided by gross margln)margin) of 37.8%. Overall, methe increase in ordinary income, reduction in operating expenses and profitaprofits from fixed income portfolio sales leedlead to a profit of E€ 647.9 million before wñte-downswrite-downs in 2013,87%2013, 87% aboyeabove methe 2012 figure. Inin accordance with the prudent approach traditionally adopted byby thethe Bank, fundafunds generated duñngduring thethe year were used malnlymainly to consolidate high riskrlsk coverage levels, wñte-downswrite-downs totalling a net amount ofof€ E 578 mlllion,million, charged to results. Most of these wñte-downswrite-downs relate toto provisions forfor loans and advances to customers, fixed assets deriving from debts and investments lnin real estate companies. 2 MIIllonsMillions of euros ExtremeExtrema downs and offiorother resultsresulta 2013 2012 Extreme downs and ornarother resultaresults 48,8 37,637,8 lmpairmentImpairment onon finandalfinancialassets assets (net) 454,6 807,6 Impalnnentimpairment of non-financlalnon-financialassets assets (net) 61,9 338,2 GamaGains and lossesIosses onon disposal of assets notnot classifiedclassified as heldheid for sale 0,2 0,8 GamaGains and losses onon non-currentnon-current assets heldheid forfor sale notnot classifieddasslfied as discontinueddiscontInuad operallonaoperations (133)( 13,3) ( 21,6) Total wdtadownswritedowns and other resultsresulta 578,3 1 204,4 Despite ffiethe difficultdifflcult economlc economicscenaño, scenario, thethe Unicaja Banco Group’sGroup's financial strengthstrength hashas allowed it to focus Qnon personalisedpersonalised customer management.managernent. As anen exampleexample ofof thisthis commercialcomrnercial dynamism,dynamism, fundsftnds managedmanaged reachedreached E€ 35,712 million, 5.9% 5.9%sip upvn onyear-end year-end 2012,2012, asas a resultresult ofof thethe growthgmwth in customer deposits (8.5%(5.5% year-on-year) and fundsfunda capturedcaptured throughthrough off-balance-sheetoff-balance-sheet instrumentsinstwments (Investment(lnvestment funds, pension funds,funds, savings insurance and customercustomer portfoliosportfollos managed), which grewgrew 10.4%. FundaFunds captured through Issuesissues (covered bonds, promissory notesnotes andand subordinatedsubordinated debentures)debentures) decreased byby 21.6%. MlIIIonsMillions of eurosauras DecemberDecembar DecemberDocamber RelativeRelativo ManagedManaped Resources UnicalaUnlcaja Banco Group 2013 2012 varlatlonvariation TotalBalanceResourcaTotal Balance Resources 3061630 618 2911029 110 5,2% DepositsDeposlts from customerecustomers 28 094 25 893 8,5% Government 11108 108 771 43,6% Private Sector 26 966986 25 122 7,4% OemandDemand depo&tsdeposits 74297 429 6 972 6,6% TennTerm deposltsdeposits 13 753 13 040 5,5% Temporary asslgmentsassigments onon asselsassets 58045 804 51115 111 13,6% EmissionsEmlsslons 25222 522 32163 216 (21,6%) Notes 89 557 (84,0%) Mortgage SecurttlesSecurities 2 342 24552 455 (4,6%) Other values - 1 (92,8%) Subordinated liabilitiesliabillIles 91 204 (55,4%) Off-balance sheet 50765 076 45984 598 10,4% Total Managed ResaurcesResources 35 652692 33 708 5,9% In thethe past year, inin ffiethe current deleveraging contextconte% in which thethe Spanish economy is immersed,irnmersed, affectingaffectlng both companlescompanies and households, loans and advancesadvances toto customerscustomers shrankshrank byby 8.8%8.8% (excluding(exduding measurementmeasurement adjustments),adjustmenft), vAiichwhich maymay bebe considered tolo bebe inji, lineune withwitti SpanishSpanish financialfinancial institutionsinsttutions asas a wholewhole (setting(setting aside the effect of Ioansloans transferredtransferred toto thethe SarebSareb by sornesome banks). 3 MillionsMllllons of auraeuro DecemberDecambar December AbsolutaAbsolute RelativeRelativa Customer Credit Unicaja Banco Group 2013 2012 varlationvariation vaTlatlonvariation PublicPubllcMminisfrallon Administration 597 910 ( 313) (34,4%) PrivatePflvate Sector 2258022 580 2451524 515 (1 935) (7,9%) CornmerclaiCommercial loans 173 256 ( 83) (32,4%) Secured loansoans 1212601 501 1313677 677 (1176)(1 176) (8,6%) Temporary purchasepurchase of assetsassets 33616 616 3 852 ( 236) (6,1%) OtherOmar tenterm debtors 33563 563 44314 314 ( 751) (17,4%) BorrowersBormwers inIn slghtsight andand other 27272 727 22416 416 311 12,8%12,6% TotaiTotal leonaloans to customers excludingexcludlng valuation adjustmentaadjustments 23 177 2542525 425 (2248)(2 248) (8,8%) lmpairmentImpairment loaseslosses and otherotilar valuation adjustments ( 1410)1 410) ( 1237)1 237) ( 173) 14,1%14.1% Total loans teto customers 21 766 24 189 (2(2423) 423) (10,0%) The decline in loans and advances tote customerscustorners in 2013 relatesrelatas tolo both public administrations and the privatepñvate sector. LendingLendlng to publicpublic administrationsadminisfltions IIfell -34.4%; Inin thetilo privatepdvate sector,sector, lendinglending toto companiescompanies (-15.3%)(-15.3%) decreased moremore than lending to individualsindividuals (-4.3%),(4.3%), which consisted mostlymostly ofof homehorno loans with longerlonger maturities.matuñties, At year-end 2013, homehorno loans account for 87% of lending to individualslndivlduals and 45% of total loans and advances tote customerscustomere (excluding measurement adjustments).adJustmenta). MillionsMililona of euros CreditCredIt teto thothe privatepdvate sector as credit riskdsk ciaselficationclassification DecemberDecamber December AbsoluteAbsoluta RelativeReiatlve Unicaja Banco GroupGraup (1) 2013 2012 varlaflonvariation vadatianvariation CompaniesCampanias 66866 856 8 097 (1 241) (15,3%) Development and constructionconstmctlon 2 015 2 398 ( 383) (16,0%) OtilarOther companies 4 841 55699 699 ( 858) (15,1%) SMEs and the self (2) 3 073 30283 028 45 1,5%1.5% Corporations (2) 1 307 2 096 ( 789) (37,6%) Civil worksworks 461 575 ( 114) (19,8%) Individualsindlviduals 1212065 065 1212607 607 ( 542) (4,3%) DwellingDwelilng 1010488 488 1010697 897 ( 409) (3,8%)(38%) Rest 1 577 11710 710 (1 133) (7,8%) CreditCredltto to private sector 1818921 921 20 704 (1(1783)783) (8,6%) (1) NotNol Includinginduding asset asset reversereverso reposrepos arrangedananged throughthrough counterpartyunterparty entitles,enütea, orDr otherotilar financialfinanalgi assets.asaete. AlsoAleo excludingexciuding measurementmeasurement adjustments.adj u aún e nts (2) Annual changoschanges Inin Iendingtending loto SMEs and larpelarge companiascompanies effectedaffected by legal changeschangas tote thetilo definitiondofinition of SMEs, pursuant tote Bank of SpainSpaIn Cimuiar4,’2013Circular 4/2013 (oxpiained(explained ininNoto Note1.9.1 1.9.1of oftbe thenotos noteste totilo the consolidatodconsolidated annuaiannual accounto).accounts). The evolutionevolutien of customercustorner depositsdeposite and loans and receivablesreceivables has signiflcantiysignificantly reduced thethe need to obtainobtaln structural financing inin marlçete,markets, asas reflected byby an LTD (Loan loto Deposits) ratiorefio that is virtuallyvirtually balanced at year-end 2013. Ratio evolutionevoiutlon LTD of UnicajaUnlcaja Banco Group (1) RatioRatlo % DecemberDecember3l, 31, 2011 133% December 31, 2012 122% December3l,2013December 31, 2013 101% (1) LTDLTD ratio:rato: ratiorallo of loansloans tote deposits,deposito. LoansLoan, Includingincluding measurementmeasumment adjustments. NeitherNefther loan,loans nornor depositsdeposito includeinciude money marketmarkat transactionatransactions through counterpartycounterparly entitles,antilles, or wholesalewiloiosaie issues.licuas. DepositsDeposito includeindude provisionsprovisions forter IndirectIndirect subsidised financing,finandng. 4 At year-end 2013, liquid assets discounlablediscountable atat thethe ECB (net of amountsamounts utilized) accounted brfor 18% of Unicaja Banco'sBancos balance sheetsheet. Unicaja Banco’sBanco's dlscountablediscountable IlguIdliquid assets MllllonsMillions of euros LIquIdLiquid assets: Treasury surplus (1) 1 564584 DiscountableDiscauntaNe assets acquired under leporepo agreements 92639 263 Fixed incomeIncome portfolio and otherotber assets discountabledlscauntable at European Central Bank 8 559 Total IlquIdliquid assets (dlscount(discount value at European Central Bank) 1940619 406 LiquIdLiquid assets utilbed:utilized: AlAt European Central Bank 45004 500 Assets sold under repurchase agreements 73417 341 Total Ilquidliquid assstsassets utlllzedutilized 11 841 Drawable discountabledlscountable llquldliquid asaeteassets 7 565 Percentage of total asaeteassets 18,2% (1) IncludesIndudes interbank deposits and surpiussurplus balance In cenfralcentral banks. In 2013, the UnicajaUnicaja Banco GroupQroup repaid inin advance €€ 1.51.5 billionblIllon of thethe financingfinancing obtainedobtained from the ECB through the LTROs (Long-Ten,,(Long-Term Refinancing Operations) completed stat Ibathe ant]end of 2011 and beglnnlngbeginning of 2012. The level of liquidliquid assetsasseffi reachedreached businessbusinese prospectaprospects brfor 2014 and 2015 will allow issue maturities loto be settled and theIba remainingramalnlng LTROsLTRQS tato be repaid without any need brfor new market financing. MllllonsMillions of euros Matured marketemarkets forfundlngfor funding In 2014-2015 EmlaslonaEmissions LTROs Total ProspecteProspects for2Ol4for 2014 1 311 - 11311 311 ProspectsProspecte for 2015 930 4 500 5 430 Total 22412 241 45004 500 57416 741 The UnicajaUnlcaja Banco Group Is one of theIba creditcredit institutionsinstitutions with thethe lowestlowest non-performingnon-perforrnlng loan ratio (8.4%),(8.4%), whlchwhich Isis approximatelyapproxlmately 35% below the industry average; accordlngaccording to methe latest availableavallable data, theme industry'sindustry’s volume of doubtful assets accounts brfor nearly 13% of total loans andand advancesadvances to customers.customers. The UnicajaUnicaja Banco Group andadended 20132013 withwith a coverage ratio of 71.0%, placing it among the banks with thetha highesthlghest coverage. In 2013, theffie performingperforming loan profile improvedimproved once again. At theifie year-end balances classed as “no"no material risk”risk" andant] "low“low risk"isk” (public(public sector,sector, cash guaranteeguarantee and secured by finishedfinished housing wfthwith LTVLiv below 80%) accounted for 83.6% of Ibethe total, 5.4% aboyeabove Ibathe figure for 2012. MillionsMllllons of euros ClaeslflcatlonClassification of credit rlskrisk lnIn normal 2013 2012 VarlatlonVariation sltuatlonsituation Balance Estruc. % Balance Estruc. % Balance Estruc.Estruc % Negligible rlskrisk (1) 1717792 792 54,1% 16 520 48,6% 1 272 5,5% Lowdsk(2)Low risk (2) 96959 695 295%29,5% 1010038 038 29,6% ( 344) (0,1%) Medium-low rlskrisk (3) 1 677 5,1% 22162 216 6,5% ( 539) (1,4%) Medium risk (4) 26642 664 8,1% 3 551 10,5%105% ( 888)886) (2,4%) Medium-highMedlum-hlgh risk (5) 917 2,5% 1 414 4,2% ( 586) (1,6%) High ilskrisk (6) 226 0.7%0,7% 222 0,7% 3 0,0% Total íiskrisk inln normal sltuaflonsituation 32 882 33 961 (1 019)079), (1) PublicPulc sectrsector and cash guaranguarantee,tea. 5 (2)(2) Secured byby finishedfinlshed housinghousing withwlth LTVLW belowbelow 50%.60%. (3)(3) Other pmpeftypropertyguarantees. guarantees. (4)(4) PereonalPersonal guarantee, barringbarrlng consumption,conaumptlon, carde,cards, overdraftsoverdrefts and over-limitover-llmit balances. balances. (5) Coiisumerfinaitng.Consumer financing, (6)(6) Carde,Cards, overdraMoverdrafts and over-limftover-limitbalances. balances. InIn2014, 2014,ffie the UnicajaUnicaja BancoBancoGroup Groupexpects expects customercustomer depositedeposits toto continuecontinue toto ñasrise ataat a considerable pace, whilewhlle thethe decline inin creditcredit volumesvolumes shouldshould slowslowonce once thethe majoñtymajorityof ofbusiness businessdeleveraging deleveragingpmcesses processes havehave beenbeen completed. This combinedcombined withwiththe the SpanlshSpanish economfleconomy's decreasingdecreasing risk premium andand a return to normal Inin thethe capitalcapital markets, with stablestable interest rates,rates, willwill allow ifiethe favourable evolution ofof methe Group’sGroup's recurringrecurdng income and fund generationgeneration capacity. The clean-up efñsefforts mademade inIn recentrecent yearsyears toto reach a levellaval of ñskrisk coveragecoverage thatthat includes expectedexpected losseslosses inIn unfavourableunfavourable scenados,scenarios, togemertogether with thethe expected recoveryrecovery in Spain'sSpaln’s economy,economy, whichwi,ich Isla beingbelng reflectedrefiected in moremore moderate growthgrowm In irregularIrregular assets,assets, pointspointe toto aa significantsignificant reductionreducton inin write-downs In comingcoming peñods.periods. Global rlskrisk controlcontrol TheThe Entity appllesapplies dgorousrigorousmeasures measures toto maintainmaintaina a permanent,permanent, prudentprudent andand balancedbalanced risk profileprofileso so asas to preserve ItslIs solvency, profitabilityand and liquldity.liquidity.The TheEntitys Entity'sintegrated integratedhsk riskmanagement management modelmodel allows serviceservice qualityquality tobeto be assuredassured duringduñng the applicationapplication ofof the lendinglending policypollcy and in all investment unes.lines. TuisThe Group continuescontinues toto Improveimproveand and upgradeupgradethe the systemssystems usedused in the management of general credit or counterpartycounterparty risk, market risk, operabonaloperational risk,ñsk, interest raterata riskdsk andand liquidityllquidity daR.risk. Unicaja BancoBanco Group implements individual actions actions andand participatesparticipates in sector Global Risk Control projectsprojects led by the SpanishSpanish ConfederationConfederahon of of SavingsSavings BanksBanksin in orderorder toto enhance theffie procedures,procedures, systems andand memodologiesmethodologiesnecessary necessaryto to managemanage methe diffemntdifferenttypes typesof of ñsksrisks toto whichwhich methe Entity is is ewosedexposed onon an integratedintegrated andand effectiveeffective basis.basis. As regards capital adequacy, the UnicajaUnicaja Banco Group hashas plans toto adaptadapt toto EuropeanEuropean UnionUnion CapitalCapital Requirements Directives (CRD),(CRD),following followingthe therecommendations recommendationscontained containedIn Inme theagreements agreements adoptedadopted by thethe Basel CommifleeCommittee onon Banking Supervision.Supervision.Qn On 11 JanuaryJanuary 2014, Regulation No. 57512013575/2013 ofof thethe European ParllamentParliamentand and of theme CouncilCouncil (26 June) (CRR)(CRR) camecame intointo effecteffect onon prudentialprudential requirementsrequlrements for creditcredit institutionsinstitutionsand and lnvesbtientInvestment firms,firms,bringing bringingin inmore moredemanding demandingcapital capitalrequlrements. requirements.At At31 31December December 2013,2013, thethe UnicajaUnicaja BancoBanco Group has capitalcapital levelslevels thatffiat willwill allow it toto fulfilfulfilmese theserequimments. requirements. TheThe application asas fromftom 1 JanuaryJanuary 2014 ofof theifie capitalcapital requirementsrequirements stipulatedstipulated inin theme CRRCRR willwill entailentail theifie abolitionabolWon of lower-rankedlower-ranked laws requiñngrequiring additionaladditionalcapital capitalrequiremente requirements ana,and, Inin particular,particular, ofofthe the corecore capitalcapital requirementerequirements stipulated in Bank ofof SpainSpain CIrcularCircular 7/2012.7/2012. InIn December 2011, the EuropeanEuropean BankingBanking AuthorityAuthoñty (EBA) publishedpublished aa RecommendationRecommendahon for additional capital requirementsrequirements appllcableapplicable toto thethe main European credit institutlons.institutions.These These mquirementsrequirements formformpart part ofofa a packagepackage of measuresmeasures adoptedadopted byby theffie EuropeanEuropean CouncilCouncil inin the secondsecond halfhalf ofof 2011 to restorerestore stabilitystability and confidence inIn thethe European markets.madçets. The institutionslnstitutions selectedselected were required toto have a tier-1tler-1 core capital ratioratio ofof atat leastleast 9% byby 3030 June 2012, calculatedcalculated applyingapplying EBAEBA rules. OnQn 2222 JulyJuly 2013,2013, followingtollowing the publication of CRD IVIV andand methe CRR, thethe EBAEBAissued issueda a newnew RecommendationRecommendationreplacing replacingtIte theprevlaus previousrequirement requirementexpressed expressedas as aa percentagepercentage wfthwith anan equivalent capital fioorfloorexpmssed expressed in nominal terms.terms. Finally,Finally,on on5 5 FebruaryFebruary 2014,2014, BankBank ofof SpainSpain CircularCircular212014 2/2014 (31(31January) January) waswas issued to creditcredit institutions,inshtubons, on methe exercise ofof variousvadous regulatoryregulatory optionsaptions contained in RegulationRegulation (EU) No. 575/2013575/2013 ofof ffiethe EuropeanEumpean Parliament andand of the CouncilCouncil (28(26 June 2013)2013) (CRR)(CRR) onon prudentialprudential requirementsrequlrements forfor creditcredit institutionsinstitutions and lnvestnentInvestment firma,firms,and and amendingamending RegulabonRegulation (EU)(EU)No. No.648/2012. 648/2012.The Thepurpose purpose isis to establishestabllsh which options mustmust be fulfilledfulfilled immedlatelyimmediatelyby bySpanlsh Spanishcredit creditInshtutions, institutions,as asfrom fromme the effectiveeffectivedate date ofof thethe new capitalcapital adequacy regulatory framework, and and thethe scopescope ofof thesethese options. HavingHaving regardregard toto credit risk, the GroupGroup hashas ImplementedImplemented scoring systems forfor certaincertain productsproducta (private(private indMduals,individuals,consumpt]on, consumption,mortgages mortgages andand creditcredit cards),cards), allowing tItethe automahcautomatic approvalapproval ofof loansloans up toto certain amountsamounts for methe retailretall segmentsegment and providingpmviding support for decision-takingdecision-taking bybyme the ñskriskanalysi analyst 6 WithWithrespect respect toto marRetmarket dsk,risk, Le.i.e.the the riskriskof ofa a changechange inIn valuevalue ofof financialfinancialasseft assets or liabilities heldheld brfortradlng tradingdue due toto adverseadverse movements in market pitesprices or piteprice volatility,Unlcaja UnicajaBanco BancoGroup Groupuses usestools toolsto tomeasure measure andand controlcontrolmañet marketrisk, risk,as as wellwell asas permanentperrnanent and systematicsystematic controlscontrois over transactions that areare particularlypadlculady complexcomplexfrom fromen anoperational operational andand accountingaccounting viewpointviewpoint. UnicajaUnicajaBanco BancoGroup Grouphas has integratedintegrated operationaloperationalrisk riskmanagement, management,¡e. i.e.me the ñskrisk ofof loss resulting fronfrom methe inadequacyinadequacy ofof oror failurefailurein inprocesses, processes, personnelpersonnel or internalintemal systems,systems, or fromfrom extemalexternal events, inin itslIs riskdsk controlcontrol policypolicyand andhas hasrolled rolledout outme themlevant relevantprocedures proceduresacross across ahallamas areas ofof thethe organisation.organisation. GlobalGlobalinterest interestñsk riskarises arises fmmfromme the tempomrytemporary mismatchmismatchof ofasset asset and liabilityllabihity matuñtiesmaturitiesand and interestinterest reterate reviews.reviews.It Itmay maybe bemeasured measured ininterna terms ofofme the impactimpactthat thata a certaincertainchange change inin marketmarket ratasrates wouldwouldhave have onon thethe entitysentity's netnet interestinterest Income Inin aa givengiven pehod.period. StwcturalStructuralinterest interestrate rate riskriskIs Isactively activelymanaged managedand and permanentlypermanently controlledcontrolledby byme theAsseft, Assets, LiabihitiesLiabilitiesand and BudgetlngBudgeting CommitteeCommittee (COAPP).(COAPP). UnicajaUnicajaBanco BancoGroup Groupalso alsoassesses assesses andand managesmanages liquidityliquidity riskrlsk from both a currentcurrent oror short-termshort-term viewpointviewpoint (controihing(controllingdally dailyliquldity liquidityneeds needsto tocover coverdeposit depositmaturities maturitiesand andcustomer customercredit creditdemande) demands)and and fromfrom aa stwcturalstructural viewpoint,viewpoint,entaliing entailingme theevaluation evaluationof ofthe thepossibie possibleneed need for capitalcapital madcetmarket flnancingfinancing Inin thethe medium andand longlong temiterm ininorderto order tomaintain maintainme theplanned plannedrete rate ofofbuslness business growth.growth. EventeEvents afterafter thethe mpoñlngreportingdate date DuñngDuring2014 2014,to tome theissue issuedate dateof ofmese these consolidatedconsolidatedannual annualaccounta, accounts, merethere havehave beenbeen new developmenftdevelopments in connectionconnectionwith withme theacquisition acquisitionof ofBanco Bancode deCaja CajaEspaña Espana dede Inversiones, SalamancaSalamanca yy Soria, S.A.SA. (Banco CEISS)CEISS) describeddescribed in NoteNote 1.2.1.2. DudngDuringme thepedod periodbetween betweenme theend endof ofthe theyear yearon on31 31December December2013 2013and andthe thedate datemese these dlrectorsdirector's reportreport werewere prepared,prepared, nono eventevent ofofspecial specialrelevance relevancehas has takentaken placeplace thatthat hashas notnot beenbeen mentionedmentioned ininthe thenotes notes totothe the annualannualaccounts. accounts. ResearchResearch & Development Development TheThe EntityEntitydid didnot notengage engage ininsigniflcant significantresearch research andand deveiopmentdevelopment activitiesactivities duñngduring2013 2013and and2012. 2012. EnvlronmenWEnvironmentallmpact impact TheThe Group’sGroup's overalloverail transactions are governedgoverned byby thethe LawsLaws onon environmentalenvironmental protectionprotection (Environmental(Environmental Laws).Laws).The The ParentParent Entity behievesbelieves thatthat it substantiallysubstantlally compIlescomplies wimwith suchsuch legislation anOand it¡t implementsimplements proceduresprocedures toto ensureensure and promote compilance.compliance. TheThe ParentParent Entity has has adoptedadopted thethe relevant measures toto protectprotect andana improveimprove theme environment anOand to minimize itsits environmental impact impactand and compilescomplies withwith relevantrelevant legislation.legislation.The The GroupGroup diOdid not makemaRe significantslgnificant environmentalenvironmentalinvestments investmentsiii in2013 2013and and2012, 2012,flor nordid did itit considerconsider itit necessarynecessary toto record any provisionprovislon brfor environmentalenvironmentalñsks risksand andcharges, charges,and and doesdoes not consider thatmat therehere aream significantsignificant contingencies reiatingrelating toto environmentalenvironmentalprotection protectionanO andenhancement enhancement. OwnOwnshams shares AtAt31 31December December2013 2013anO and 20122012 thethe BankBank Oiddidnot nothalO holdany anytreasury treasuryshares. shares. In 20132013 anOand 20122012 thethe Bank Oiddid notnot carrycarry outout anyany transactionstransactions involvingthe thetreasury treasury shareshare portfolio.portbhio. AnnualAnnualCorporate CorporateGovemance Governance ReportReport BelowBelowis is aftachedattached thethe Annual CorporateCorporate GovemanceGovernance RepoftReport ofof Unicaja Banco,Banco, SASA -- Single ShamhoiderShareholder CompanyCompanybr forthe theyear yearended endedDecember December31 31,2013, 2013,as as anan IntegralIntegralperi partof offfiis thisconsolidated consolidatedmanagement managementmport report 77 : CD CD CD CD CD CD CD rCD cCD cCD CDc CD = c CDC• CD CD CD CD Appendix I1 Subsidiaries at 31 December 2013 %%Sbareownedbyth.Gmst Share owned by the Group CompanyCos,çanyName Name RegisteredRegbteneddomktia domicile ActivityActMly %%Snn Share % ShareChira DirectDIrecI Indirect AltanaAlaria CorporacienCerparadón Unrcaja,Uncaja, SU), Cla BoiseBolsa n°n°4, 4, plantaManta 5’,5', MalagaMálaga InvestmentInveslnent onen assets,aasels, real estateestala andand financialfineiclal 100.00%100,00% 0,00% 109.00%100.00% societiessociales AltosMies deda JanloyeJontoya ResidenciaRestdencia parapare Mayores,Mayoras,S.LU. S.LU. Plaza JahnJaén por lala Paz, rt°n°2 2 JaénJaen GeriatricGeñalda caracare Imo%0.00% 100.00%100.00% 100.00%100.00% AnaiistasMalicias EcoMnlcosEtonamicos de Andalucla,Andalucta, SU).S.LU. ClO Granada ri°re 13,13, EntreplantaEnfreplanle StudiesStudias and analysis 100.00% 0.00% 100,00% Andaluza de TramitaclonesTrarTitadones y Gestiones, S.A.SA ClDl Angosta del Carnin,Carmen, 2, MalagaMálaga ManagementManagenint ofoldown’ants documents and deeds 0.00% 100.00% 100.00% CartersCañera dede InversionesInversiones Agrozeirnentarlas,Agmalurrantadas. S.LS.L Plaza JaenJaén perpor la Paz n"n°2 2 JaénJaen FoodFeod Industryln&sb’y 82.50% 0.00% 0.00% Canadian'Consultora TecnicaTécsica Tasa,Tase, S.LLI. Cla SalsaBolsa n°n°4 4 -5,- 5, MalagaMálaga Consulting,Constitng. advtetty,advisory, managemenlmanagement endand technicalteclinical 0.00% 100.00% 100.00% developmentdevilopnint of land,leed, urbanLiban planning4wflng and buildingbuilding CorparedOnCtrpmióón Uninser,U,t,ser, SAU.S.A.U. C/Cf Ancla,Arda.2,3°-1°.Málaga 2, 3°-1', Malaga FinancialFe,aila) servicesaw.1005 0,00% 100.00% 100.00% EscuetaEscajeta SuperiorSLçerda da EstuditisEstisios dade Erçnesa.Empress, SAS.A. Cla CarveCaÑo sins/n SclifitioEd&io Mona,Mena, MálagsMalaga StudiesShn5n andest analysisar*ds 0.00% 50.00% 50.00% GastonGestión dede AtlividadesActidsies y ServitiosSasviaos Empresariales,Enpeaañales, SAU. SA.U. Cla FedericoPedanio, 0sariaOrellana Tojedaro.Toledeno, 4.4, MalagaMálaga ElectronicBedtjc recordingracudng m,dand data-processingdalainsing 0.00% 100.00% 100.00% GeslienGachón de inrnueblesInrnjebles Adquiridos.Adquirldos,S.LU. S.LU. Cla MauricieMaundo Moro ParetoPareton°6,6° n°6, r plant°,planta. Edt.Edi. Euratom,Eurocorn, Real estateaslale 0.00% 100.00% 100,00%100.00% MalagaMálaga InmobiliariaInnttalmta Akipo.Adnipo,SLU. S.LU. Cla MaurictoMatando Moro ParataPareto n°6.6°n°6, 6' plants,planta, Edf,En!. Eurocorn,ELZVaTt Real estateaslale 100.00% 0.00% 100.00% Malaga InmobiliariaImmtalierta tierUniex SL,,Sur, SLU.S.L.U. Cla MaurictoMatando Moro PaetuPareto rfn°6,6.6’ plants,planta. Ed'.En!. EUMCOM,Etiocoro, Real estatee,teis 0.00% 100.00%100,00% 100.00% MalagaMálaga MljasMijas SolSot Rasad,Resort, S.LU.S.LU. C/a Mauricio Moro Pareto,Parata, n°re 6,e, PlantaPleita 6',6°, EthficioEdIldo Real estateestala 0.00% 100.00%100,00% 100.00% Eurocorn,Eumcont MálagaMalaga ParquaParque industrialIndustrial Hmritadero,Hurreladero, 5.S. LL a MiguelMiguel HernandezHernández n°re 1,i, MalagaMálaga IndustrialIndusidal Iardlard developmentdavalopninl 0.00% 82.75% 62.75%e2,75% PrivandalusPrivándilus InversionesInversions 1I 51DM’.SICAV, S.A.SA. Cla BalsaBolsa n°4.1°if 4, 1" Planta.Planta, MalagaMálaga CollectiveColledve InvestmentInvesúmnl InstitutionInstiluflon 61.90% 0.00% 61.90% PromotonsPronolora GuadalneMóRGuadainervien,SU). S.LU. C/Dl MendezMéndez Nenez,Nüñez, 1,1, 1•Planta,1°Planla, SevillaSevilla Real estateestala 0.00% 100.00%¶00.00% 100.00% RentsRenta Porfohio,Podolia, S.LU.S.LU. Cfa Mauricio Moro ParetoParata n°6,6°6, plants,planta, Ed.Edf. Eurocorn,Eumcan RentalRenta) propertyproperly 0.00% 100.00% 100.00% MalagaMálaga SegurandalusSegusándilua Mediation,Mediación, CorredurEaCorretaje de Segunos,Seguaos, SAlt.S.A.U. Cta Cuartales,Cuarteles, sen' 51,si, Entreplenta,Enlraptanla. MalagaMálaga InsuranceInsumeca brokeragebroteraga 0.00% 100.00% 100.00%100.00% TesacionesTasedones Arwaa,Andaluzas, SAI).S.A.U. Paseo deda AhtedAlmeria, 69-69 - 5’Ptar*&Planta, AlmeriaÑn°&a RearReal estateestile valuationvilsaltan 0.00% 100,00%100.00% 100.00%100.00% 1 c” tr rrr rio cro uro cro rr cro cro rcro cro ur CD CiO cro cro cro nr Appendix I1 SubsidiariesSubsidiarles at 31 December 2013 % SinShare oveosedowned bythaby the GmupGroup CompanyCamp.ny Nameflama RegisteredRegbtend domtclkdomicile ActivityAttMty % SisareShare % ShareShsoe DirectbItad IndirectIndlrst LinitajaUntcaja GesliOnGeatón dedo ActivosAcuvos Inmotriliarios,Innobiliañas, S.A.U. Avda,Avda. Andalucia,Andalucla, 10-12,10-12, MalagaMálaga DesarralloDesarrollo InrnabilierioIrviobiliado 100.00%10000% 0.00% 100.00% UnicarteraUnicarlara Caja 2, S.L.U.SItJ. Clej MauricioMauricio MoroMoro Pamir,Parata n"n°6,6’ 8, 8• !Manta,planta, Bdt,Edri. Eurocam,Eurocom, PromotiOnPrenoción o financiacianfinanciación de I+D1.D en el campo de 100.00%100.00% 0.00% 100.00%100.00% MalagaMálaga lala meditinarredidna UnicaderaGealión Unicartera Gestion dedeActivas, Activos, S.L.U.5.1V. CiC/SanAguatln, San Agustin, 2, 1.1’ plants,planta, Madrid Actividad dedo recobro y gestibngestión dedo lifigioslitigias 0.00% 100.00%100.00% 100.00% UnicarleraInternacional, Unicartera Internal:lanai, S.L.U.SLU. Avda. Andalucia,Andolucla, 10-12,10-12. MalagaMálaga InversionInversión en adivas,atfivas, valorasvalares nobiliariosmabilarlos y 100.00%100.00% 0.00% 100.00% sociedadessaciedades financierasfinanderas Unicadara Unicartera Rents,Renta, 5.1V.S.L.U. Avda. Andalucia,Andalucla, 10-12, MalagaMálaga InversiOnInversión en adivas,activos, valaresvalores mobilieriosr,obaadaa y 100.00% 0.00% 100.00% sociedadessaciedodo, linanciarasfinanoaraa UnitasLkrir,a PmrnocionesPrcoones Inmobiliarias,Irmobianas, S.L.U.S.LU. C/ej Lisa n•¡ti, 1, Polig.Pdlg. Tres Carninos,Caninos. PuertoPiado Real (Cadiz)(Ca) DesarrorloDesanoBo Inrnobiliarlalnrúbaad 0.00% 100.00%100,00% 100.00%100.00% UnlcarpUnicup Corporal:ionCm1osadón Financiers,Araron, S.L.U.S.LU. CIej Balsa,Bolsa, n°re 4.5’4, 5. plants,plarcia. MalagaMálaga PrestacidoPwMadón dedo serviciesserados 0.00% 100.00%100.00% 100.00%100.00% UnicornUnicrep Patrimonlo,Patinnia, SaciedadSociedad dedo Valores, S.A.U.SAL). C/ej Balsa,Bolsa. Itn5 4,5’4, 5' plants,plania, MalagaMálaga GestianGastón patrimonialpaginonial 0.00% 100.00% 100.00%100.00% Unigest, S.G.I.I.C.,5.0.1.1.0., SAL).S.A.U. Cl0/Bolsa, Balsa, n.It 4,4,5° 5• plants,planta, MalagaMálaga GesloraGestora dedo lnstlud00esInstitutions deda InversionInversión ColectivaColectiva 0,00%0.00% 100.00% 100.00%100.00% Unimediadan,Uninoatón S.LU.S.LU. Clej Boles,Bolsa. n°It 4, plantsplanta 2, MalagaMálaga CorredurfaCorrsdwla deda SegurcsSeguras 0.00% 100.00% 100.00%100,00% UnimediterraneoUnirrw4tevTtleO dode lnvnwnes,Inversions, S.L.U.S.L.U. Cl0/ IVIauritioMasido MoroMoiv PareloPresb ro.n°6, 0, 0•6°planla. plants, Ecit.OciE EsauconEuratom, InvarsiOnlnwr&ón en advoa,actives, valca,velores mobiiiariosnoMreiosy y 100.00% 0.00% 100.00% MalagaMálaga sociedades finreterasfinentieras UniwindetUnisvindet ParqueParque EdicoEólico LasLas LomiRas,Lonitaa. S.L.S.L C/ej Balsa,Bolsa. n°4,It 4.5’ 5* plants,planta, MalagaMálaga EnergiesEnerglas renovablesrenovables 0.00%0,00% 71.44% 71.44% UniwindetUniaéndet ParqueParqua EólicoEdit° LomaLoma dedaAyala, Ayala, S.L.S.L Cf0/Bolsa, Balsa, n°4,5’n° 4, 5. planta,plants MalagaMálaga EnerglasEnergles renovables 0.00% 71.44% 71.44% UniwindetUniwlndat Parque Eólico&Mos LosLas Jarales.Jarales, S.LS.L C/0/Bolsa, Boise, n°4,5•n°4, 5• plants,planta, MalagaMálaga EnergiesEnerglas renavablesrenovables 0.00% 71.44% 71.44% UniwindetUnlwindal ParquaParque EedicoEólica TresTres Vilas,Villas, S.L Cr0/Bolsa, Balsa, Itn° 4, 55. plants,planta. MalagaMálaga EnergiesEnergiss renavabiesrenovables 0.00% 71.44% 71.44% Uniwindet,Unlvsindel, S.L Cl0/ Balsa,Bolsa, n°n°4.5’ 4, 5• plants,planta. MalagaMálaga Energlas ronovablesrenovables 0.00% 79.38% 70.38%79.38% Urbasur Actual:lanesAduadanea UrbanIsticas,tJrbenlatcaa. S.L. Plaza JaanJaén porpar la Paz, n°2,n' 2, JeanJaén Desarrollo inmobilianolrv,tbiliada 0.00% 100.00% 100.00%100.00% 2 rl ( = = = = 1fl-1 = o r r 1 = AppendixAppendx II Joint venturesventums at 31 December 2013 ThousandsTboin.nds ofof evmsdims % Share mined by are 0 mu p InclIvklual Non- Non- net posits! Current Current Company Name Registered domicile Activity % Snare current current Total Toed Individual loss 'orate asset, liabilities Revenue experidnum net profit/ year assets liabilities lose for the Direct indirect year Bancoerce EmopeoEuropeode deBn.nzn, Founds, CrUI SeseesSevereDcto.. Odd, n 5, 120% 39.52% it!,° CreditCredehoStiton institution 120% 39.52% 40.72%4032% 674614 1212521 521 113517III 5)7 303 2521 771179 3 (( 33 232]232) 911SA MOlagaM1a9e CampaniaCompelo. ArrdaluesMddijz. de CrCJMd..rti.Mde9a Ando, n` 2. MAlsge Investmentiwesfrnentlne.nts. in assets, 0.00% 33.39%33,39% 33,35%33,39% 55433 433 5569640 543 44069 069 33500 550 4149 55514 574 (( 141)141) ReelsRenos e Inventories,Invenlones. SA SA securities061111)19. andoId finance(MMe camomile,con—.. fediflaitn WendsW,)endes Sondes,Sonden, CrUI MulosMunoz OSvé,Dive, 1, PorldPedal RealRed relatenitos 0.00%0.06% 40.00%40,00% 40.00%40,00% ------S.L.SL°’4" 2, t9’° C,U, SevIoVey& amide6o5,.do Marina,Medo., EL.S.L5° Pesco de la C.oleIon., Red 0.00% Nome de la Castellani, Real nt.t.estate 0.00% 30110%30,00% 30,00% ( 1111)III) 29 54 511SIl 11640 900 19 5135561 - ( 1311)III) 91,II, PisaPitoS, 2, M.&ldUndid lildrocantre,f*onflere, SL Mdeljd., Avde.Avda Andalucia, ls-li.10-12, Al-embracingA1’entre&,ovste, venter cydecycle 70.00%10.00% 0.00% 70.50%10,64% 44004 004 6089417 437 5540 - 7 4 ( 59)) MatedMM.g. innovadrin—— Desenelos ClUIModOdonjt2. Angel Geier,. nn RealRedalsos estate 0,20%00% 45.00%40.06% 40.20%41.06% ( 5223 2101 11451 4906 9 907 — ( 2 157 /7 4611 4800 1 967 55 (( 977571)) Urbana,Ifl dddel Son.Sur,SA SA ° Sevilla5..— liquIdamberUWS kwdnonoInver:dna; PaseoPmo de Recdeit.,Resoled, reIt Invetheentkweretit In aseos.assets, 14,74%94.14% 0.00%020% 14.74%14.74% (25(31221) 227) 178175 3831 561SOS . 42 270210 (20(20 497)491) Finanderes,F,w SL 29,20, StsraidMeita) securitiesonosltn endSa) nuance9na companiese—es Melte thintito- - PuertoPujeeb de Avde.Ardis. de Andaluciat1. II,21, Red it 020% 2025% Iah R es1 estate 0110% 2928% 2920%2029% ( 22449) 4451 saOdIOS 555 71103 103 4149411 409 68722 723 44120 120 1(1205) 7 21351 Nilage,MáI.g., SA”SA m Entreplente,Btep). MM.ç.Milk/a FinalesP%wndd&s.SL°’ del Ste. frenodea.ho.mrcn 020% Avenida Reda Stance 3, RealRnW estate 0.20% 50,00%(020% 50.00% ( 10903) 213) 22227 227 3620550 MEI 3232751 755 1019131 825 22310 370 (420(94291) Baja,8. GideCIdS SosiededSadeded dede GestonCestÓn SanSeis CrUI Alaimo%P,diwifr F.1.13111. Red eslale 520% 411) Fenn Real estate M00% 50.32%5*22% 5032%50.32% ( 421) - 1414240 245 7InI 730 552 - (( 428)420) Codas,Cedo., SASA Ruiz,RutZ%I, 2,A-1, CadizCAdI (1)(1) Corm:ergCompeinylnlydtnn, Iit Owl:deem (2)(2) ForecastFmeco.i Orehe compalwit company toden doseOenenbe, December31,2013. 31,2013. (3)(3) Financialsflnendd. a)el NovemberNwend,er 30,2013.30, 2013. 1 rE] CE] CD CE] CEE] CD CD CD CD CEE CE] CD CD CE] CD CE] CE] CD CD [DE rED Appendix IIIIII AssociatesAssDciates atat 3131 DecemberDecember 2013 ThousandsTho.s.X. of eurossoros % Share owned by the Group Financial Statements at year end Company Name Registered domicile Activity % Shane Totafassats Current Pm111 from Taint Ps:4410r at end Erlo MY liabilities operations the Direct Indirect Clti Loisb Must.,MerMe, ellME, 6, LasLa. PalmedPefrois dorde RnandelforMal servicescervIces andsed companycomp.ny AJE Aid IllIII1’ 33.00%33.10% 0.05%0,02% 3360%33.10% Gran0t.n CanariaC.n.h. servicesservIce. 108lo) 10110) ClU LuisLea Morale.Moral.. nMO,.13, La.Las Palma.Palmas de FinancialFinandalservIce. services andsol companycaewan, A.I.E.AlE AlcioneMelons ft/IV”’ "l 3360%33.10% 0.00% 33.60% 121 GranCr.n CanariaCaos,ia servicesteorices 0.00% 33.60% 121 121 CIti SinSan Francisca,Frenciscs,r0e 29,25, Edt.Oil). FinancialFinsd.l se,vIcnservices and companycseçeny A.I.E.A-LE. MoslemN.,wln Areahes BraveSrio. ul rl 35.00% 35,00% 25 Alejandro,Nn.náo, Tened).Tenerife servicessetyfre. 0.00%0,05% 15.00% 10lo 16I6 ClCi LuisLeel. Monde,Momle, n're 5,e, LASLa. PaltosPalmas de Financialflosodal cervke.services andsnd companycemp.ny ALE.AJE Ns,der,Nader, AttieAna” 21,09%21.00% 0,00%0,05% 21.00%21.10% 33 33 792 GranSean CanariaCanari, servicesseivise. raafO 10 53) 33 792 C/ti Su’San Francisco,Francisco,0125, a 20, EdO.Elf. FinandalF’mendal cervicesservices and.nd companycompry ALE.AJE HaulersNovia,. Cabo UdreUna01 29.09%25.00% 0.00% 28.00%20,00% 1193230 230 33) Alejandro,Mejsáe. Tenerife sershms‘renco. 338 1202)92 892 1 1121)1121) 1( 11121) 121) ClCf LuisLede Morale,Motel., reMa, 5, Les-a PalmasPubes de— FinancialFinendal ‘trolesservices and cemp.,ycompany AJE Novar.MoslemsSeos. Elects rl 39.00%21.00% 0.00% 21.00% Gran— tnIaCaned. servicesSn— 21.00% 127Ir 127 Clti SanEle, Francisco,Frrais reM 29.29, Edt.EN. FinancialFleradi cenete.services and— companyceIIWa.W ALE.A-LE. MaulersN.6ns Aralpica 28130% 0.00%010% 26.00%20.50% 13‘375 7311 4624)2 1393 304104 1 997)597) I65 Alejandro,Ñemt, TerurrieTenerife services (O 897)57) C1tiSa.F,táoco,ae29, San Francisco, re 29, ErikEdO. FinancialFmrdd cenasservices aridSM companyceaçwy ALEA-lE NevieraN.her.mnç4.m G6n 4n 25130%29100% 0.00% 20.00%25.50% 1313002 802 902 13 200 95)) 650) AlefamIns,Mejs&o. Tened).Tenerife services (O 951) ( 951) Clti Sa.,San F.ce.Francisco,M29. n' 29,EdO. Ea FinancialFfrredj senasservices and companycerTça.ry A.I.E.AlE Nalntilaviere —Seri ró,mSkeen 26.00% 0.00%010% 29.00%2050% 93445 Alejandro,flqa.t,Tene,Ils Tenerite services 26% 13 446 48845. 1241760257! 1(9055) 1 095) ((1005) 1 055) ClCf Heimann.Heamera. creuyiK.dflqse. ohgilt 141—a deal. la Meads0a. MrmeeAerospace, S.L.SL Aernspece indtatilY 15.91%15.11% 2.50% 18.48%11.44% 472433200 200 40 719II) 431 481UI 129 004) 004) Gorizia.Ca4 50,5. Sava' 04l (29(25 004) Pubilcations,Pss6ceson,, graphicapht e’).ens arid.nl AndaluciaMdakatl. EctoderMo.,Econeadoe, SA.SA M ClUD Diegool.Riro, de Plano, 11.99.0ev!. SevMa 23,80%33.60% 0.00% 33JO% 955 televisionbleohion 0.00% 23.90% 995 658650 335 7 13‘7 Clti ComposibmCempo.ilar Lebhmbrrg. hrriber0. n°‘. 4, Nene,Nebie, ILL.S.L °‘ . New !ethnologic,' 40.50%40.00% 40.00% Malaga11*1600 I,oh’oIoes 0130%0.00% 40.09% 34)34’ 256255 8363 1 35)351 1 2727)) AutopistaMlnW,5. del Mundalmedna,Go,d.Imeane, fll EdCf Lo.Los Peflond!o.Penoricilos rr 14, MalagaMiOsos I0wsyo 30.00% 0.00% 30.00% 395 ConcesioneriaCmicnisnnis OMeois.6,iiperailaSA’” SA la 1+011waYa 5.00% 3600% 390 242 7414543 043 315 555559 640 i(7205) 1289) AutopistaA0106a del Sof,Sol, Conceal:InaneConcealorsed. PlazaPl.n ManuelMenad Gemez-Moreno,OÓme,lor.no, Ma,n' 2, ,ritm.y. 20.00% 0.115%010% 20.00%20 00% 695 280250 1414554 BIM 681061 396 2020211 211 Espanola,E.pM.rlo, SA.”’SA. O1 Madrid O99620) 629) 1 . Z = CD =CD ECD =CD CD rCD CDr CD =CD CD CD• • rCD_" 4 IE..:CD CD CD CD CD CII ri Appendix III AssociatesAssocbtes at 31 December 2013 Thousands‘mousaMs of euros % Share owned by the Group Financial Statements at year end Company Name Registered domicile Activity % Share Toted esneb Conant Portia from Profit for total &luny at end Ilablittles operations the year Direct Indirect Avda.Anda. Juan.bat LopezLópez Pesaba,,Persiver, ant.a/e, BerinciosBrinda, dede leentreibnIrpenlón y BLC,alt. Eurondre.Eseanova, SA SA n. 20,00%20,00% 0,00% 20,00%29,90% 1 537 755 13) MalagaMálaga promotion le)7 11122 122 TIC I1 15) Cemented°CemeMedo ParmiePorque dede Modo.,Mertes,SA BA,* ti TonecionpmenoTanedeojrneno S/N.SIN, JaénJaen SentriesSeivid, ocietanea =leaves 20,00% 0.00% 20,00% 2244 20,00% 2244 103lo, 22141 141 2025 I5 2) CelziOndeSuditeldrmstroctiem,B,L.tendón de Soda e ínhanhudma, S.L ,umenm.„5.,,m"m Pl ti — te 33 Pino3°c, MadId DessnolloDesanda Inmobliadohoabiodo 0n0%0,00% 34,01%24.01% 24,96%24,05% 13 574 1373573 1212902 902 12) i1 12) (252)202) sAm C./t/ Mañ.M ariaOlaje, Curia,tel. rd 7, EdaciaEdifizic Bela,Beta, CedesPeñen, SA. * 9,99%a,aa% 0.003% 10,05% 074 0 Madrid indistrie AilmsEmniEnndsea 0,06% 1005% 10003 683 174 619419 141141 1 044 033 37 904504 1212011 611 DessitolloDenotada UrbenirticosUlb.,bl)rn, tenoCans de Plazaflan JeanJada portaparía Paz, n°e’ 2, Jada, Desarrollo IrendiadaInmobierla Metianoche,Medaoche, SLSJ_ Jaen Desmrdl, 0,00% 24,72%24.71% 24,72%24,71% 33594 594 3 591391 3 10lo 7 a EBNSEN Bono.Bancode deNegocio., Nepodas,SA SA PeersPaso dede Rear/etas,Reecielga, re 29,29, MadridMa&Id Benceisero 21,09%2109% 000%0,00% 21,09%25,09% 11150055 105 090 5955 522572 I1101 109 578375 4(4453) 4 483) 430411 GrupoO..çeNndob.PbySA Hades Playa, SA * Canadataitas, FerePsa Behind,5l, etrt,a/it. A/merleParsi. HadesMearla, 15,55%I3% 0,00%OX% 15,55%15,05% 414 813113 150700 25829 234214 55555! 4(5d44) 9 444) ((7291) 7 261) C!ti ManualMano EspoSaEsp.% Lobo,Lobo —id ManiereMesera tilda’,9.Catering. SLS.L Berwic,*Senno dede Coloringt.lodno 0,00%0.00% 31,92%3a,n% 31,82%30,02% 2 324224 11 355 529 404) Enteeplanta,Entapin, MalagaMálaga III 829 41 414) 4(323) 323) MaasMiosis, GestitmOraSte, Integre!inlegnI dede ApuliaAgne de CiBOWE,CiNIn, Ejido Oceso,Dono, rdte 1,i. Andalucia,&&SIa. S.A.SA Ianteriermente(eNedoemeol. Dde keiayál — Ag Sevilla Cldo integral del Ague 0,00%0.00% 35,00% 35,50%3500% 305300322 322 109¶09151 199 196104124 124 1111171 172 11E399030 Ai:RapedA°.grat Andalucia,Mn50. SA) ".° 5s Inger/Belolageedede de Sudan0 yy EsplotaddrtSx*bdán de Avda.Ande. PontoPaseo del Cs.,Cow, ern, fiad,.lioeNa IndustrieildEila banet.Mines 30.00%29,00% 9,00%0.00% 39,00%30,00% 25944 04037 RectumsRe so., SA.5A .n a 25 644 11II 207 14 637 11300 310 1167097 ingerdeil.. a Wagnerianinlerudin Atoada,Avenzwiets.SA SA CrttSevenfleh,n.M43,Málaga Severs Octets re 43, Malaga NursesMaevnfrcnoh0ln tecnologles 40,00%40,00% 0,00%0,00% 40,00% 44229 229 44 229229 (11254) 1254) ((¶404) 404) Idolatriescañasen yy Gamin:gasOranora Industrials'tn’*aWdn de Plazafin dedele la Constitucian,taMábodón. br10, 5. DeserrolloDrasmola suelopenIt Industrie/ 0,00% 30,50% 30.00% 140 54 Jaen,Jaén, SAY’SA* Pante.Piada. JeanJallo rásáli 3005% 30,00% 145 54 9454 ( 6)5) 610) O La RestenReserve de S.fraOnionPci!, Golf,S.L S.-'s CdtiP.ladpd Prindpai it’rd 45.45, plaidadards 2,1111aga2.Málega DeserrolloDesaMo frenobi.d,tninablerla 0,00% 35,00% 0 35,00%35,09% 35,00% 11011 611 44403) 463) 6 074 1 593) ( 651)Sal) ItednetsMedina. PuertoPuedo de Malaga,Málaga, SociedadSod-wield El:1%deEdad’ 1.91db insOlutode de [nadosEst:idles PromotoraPomdma deldal PinoPlan SapedálEspecial del Parlament:is,Partoaeloa,MaeSe MueCede deGAnsa,, Canova, ServicesSeocidos ailed/dosocieMos, 29,00%20,00% 0.00% 29,99%29,90% 352302 361390 (7 14) I 14) PuertoPanela de deMálaga, Malaga, A”SA* tineso, MálagaMao. 2 2D = CD CD CD CD CD: CD . fl [] C] CD CD CD CDC] CD CD CD Appendix IIIIII Associates atat 3131 DecemberDecember 2013 Thousandsflooand of eumaolio,. % Share owned by the Group Financial Statements et year end Company Name Registered domicile Activity I Share Tatar assets Current Taal Pniftl hum Profit tar M end "ult." liablIffles opertrtkins the year Direct indirect ServidosSflido. dede Inversianreside. y M-Capital,1l.C.pSd. SA’”S.A. '1 Plazanno dedo TuraTorsaUnja. Neje, n'nnz 2. MelageiI5I.. 22,01%22.01% 0,00% 22,01% 1111571 571 2 443 0121 ( 301) ( 359)355) promadrin 5 126 5 ( Obenryre,Obnripe. S.A.SA m WCf Zurbano,Labros, n*,t 76,7., MadridlAsdid Desarrau inmobillarto 0,00% 21,25% 21,25% 3835554 964 E5880‘5500 2222704 704 10504 004 337 Flare dela Cortalimitin,CossttIM, 12,12V 1.13,0, Diomede,aned.. S.L.S.L cu Nueva tetnalogiaa 40,00% 0,00% 40,00% Join 4000% 000% 4000% 255 265205 ParmaPia Clentirea.TacnoligicoCien .Tld8 dede AvenidaAee4d. dedel. la trertrearitti,frt.&w.dán, ritre. 15,15. betturaci (*marled., 0,00%000% 30,00%30,00% 3000%300% 3454401 402 le06446 440 35622 Almeria,beenlá. SA SA ‘ Almeriaflee.I. — — 3E1022 (5 1241)1241) 1(2607) 2 607) CR Npar,NlJ.n, rtn 125,120, EditEdf. MueblesAsedes C ServiclusServido, FeesedeFuntradus Indelces,Indaicos, SA. m Magep5Msg,p1 3’l.032.1.8 Alqulart44e.. Seri:IdesSonido. coieosvo. Medved 2000%20.00% 0,00%0,50% 20,00%20.00% 599500 3733fl 228220 AhnorlaAkne,l. SicledadSodedad MunicipalMS*’ed dede ApareamientosAperedenteo yy Plaza 1,sLaMcnsb., /demobs,de. M. MM..Wimp 24,50% 0.00% Untidier,ServIdo., SASA nno AparcernionlaApn.ndenloo 24,50% 0,00% 24,50%24.50% 7070507 807 3333105 188 3737011 011 11001 501 11 230 llulzaciinT%Jndán dede Aavos.AcOdo.. SocIedadSodedad GatorsGea,. SiciededSod.dad Caton.Gestor, dede FondaFonda, de ClQ Drente,Don.. ren• 69,10, MadridMsded 0,00%0.00% 38,07%30.57% 35,57% 15 lIS 99 1159 5414 de FandasFonda, de llitillzacilm,T1bndón, SA SA Triarechin11b*z.ddn 35,5m Is 180 050 55225 226 5 484 33804 004 Uncut,Unos, S.L Ig ClW Ibiza, n°35,n•35, 55. C,O, MadridM,&Id Desroelo 25,00% Ido., Desarralla InmablisriaInmoblodo 0,05%0,00% 25,00% 2500%25.00% 55451 458 (5 33702) 752) 1910200 260 (5 48)40) (5 351) ilnemaUnes, PromoteresP,omotoee. Minerbiarios,bvirvobia,in,, SASA, ClO’ Shadiart,Oteofen. n'tn• o,1, FlordaPlanta1, 1,M44a5a Wimp DeterralkiOneroSo inmabilariahvnobl.do 0,00% 40,00% 4000% 40,00% 9404 111III — (1 17)17) (5 17) UnliorpUdonrp Viola,Vide, Comps00’Compallie dedoSegeo.y Sapiens y Cf L. 4.3’ pboda, Mrd.9. 7,60% Reesegtoos,Rene9eoo.SA SA Cl i..1 0b.,Belem, 4, 31 phinta, Mitsui Segura,Seoroa 42,40% 7,60% 50,00% 22422137 422 137 171hl 930030 2 250 207 4242556 056 3930752 752 (1)II) CompanyCompony ino liquidation.looId500n. NoNa opodetedupdated tnsr.ddfinancial del..data. (2)25 TheTIte resultmdl bltille Itte compenycompany deteneddeleirertracagrelionreongribon InIno. the oonokdelsdconsolklated hwnbtentinvestment (3)(3) ForecastFeeceolte the crvnpieycompany loto de.data DecemberDerembe 3E,31.2003, 2013. (4)(4) FinancialsFidondolo alat OdaventeeNovember 30,2013.30, 2013. (5)(5) FinfinclideFfrtondeh al atSeplember September30,2013. 30.2013. (6)(60 FinancialsF’e.ndoh.tAt,6n131.20l3, at August 31, 2013. (7)mi FrtionclalsF4,endeh&Mn35.2013. al May 31,2013. (8)(0) CompanyCoitrp.ny withoutW tosotdpiOo.nI slsnincant .alvltyactivity dategduring— theyac yam 2013. 3