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ANNUAL REPORT - CaixaBI · Alfredo Manuel Antas Teles José Manuel Carreiras Carrilho Caixa –...
Transcript of ANNUAL REPORT - CaixaBI · Alfredo Manuel Antas Teles José Manuel Carreiras Carrilho Caixa –...
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AN
NU
AL
REPO
RTSe
para
te a
nd C
onso
lidat
ed O
pera
tions
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INDEX
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STATUTORy BODIES. Bank
STATUTORy BODIES. Venture Capital
SENIOR MANAgEMENT. Bank
SUMMARy Of CONSOLIDATED OPERATIONS
RELEVANT EVENTS
OPERATINg CONTEXT
ACTIVITy
OUTLOOk fOR 2010
ACkNOwLEDgEMENTS
PROPOSAL fOR ThE APPROPRIATION Of NET INCOME
QUALIfIED EQUITy INVESTORS
CORPORATE gOVERNANCE REPORT
SOCIAL RESPONSIBILITy AND SUSTAINABILITy REPORT
fINANCIAL STATEMENTS
NOTES TO ThE CONSOLIDATED STATEMENTS
NOTES TO ThE SEPARATED STATEMENTS
REPORT AND OPINION Of AUDIT BOARD
STATUTORy AUDIT CERTIfICATE CONSOLIDATED ACCOUNTS
STATUTORy AUDIT CERTIfICATE SEPARATE ACCOUNTS
4
7
10
13
15
25
35
68
72
74
76
78
96
101
114
213
295
300
303
INDEX
INDEX
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STATUTORy BODIES. BANk
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ShareholderS’ Meeting
Chairman
Caixa geral de Depósitos, S.A., represented by
José Lourenço Soares
Secretaries
Companhia de Seguros fidelidade-Mundial, S.A., represented by
José filipe de Sousa Meira
gerbanca, SgPS, S.A., represented by
Salomão Jorge Barbosa Ribeiro
Board of directorS
Chairman
Jorge humberto Correia Tomé
Deputy Chairman
José Joaquim Berberan e Santos Ramalho
Chairman of Executive Board
Luís Lopes Laranjo
Executive Directors
António Carlos Bastos Martins
gonçalo Vaz gago da Câmara de Medeiros Botelho
Jorge Telmo Maria freire Cardoso
Non-Executive Directors
Rui Manuel do Vale Jordão gonçalves Soares
José Pedro Cabral dos Santos
José Manuel Carreiras Carrilho
STATUTORy BODIES. BANk
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Audit BoArd
Chairman
Hernâni da Costa Loureiro
Board Members
António José Nascimento Ribeiro
João Sousa Martins
Deputy
Fernando Manuel Simões Nunes Lourenço
StAtutory AuditorS (Acting)
Deloitte & Associados, SROC, represented by
João Carlos Henriques Gomes Ferreira
Statutory Auditors (Deputising)
Carlos Luís Oliveira de Melo Loureiro
remunerAtion committee
Gerbanca, SGPS, S.A., represented by
Henrique Pereira Melo
Vitor José Lilaia da Silva
STATUTORY BODIES. BANK
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STATUTORy BODIES. VENTURE CAPITAL
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caiXa deSenVolViMento, SgPS, S.a.
ShareholderS’ Meeting
Chairman
António Pereira grada ferreira
Secretary
Carla Maria gomes dos Santos
Board of directorS
Chairman
Alcides Saraiva de Aguiar
Board Members
Caixa geral de Depósitos, S.A., represented by
Alfredo Manuel Antas Teles
José Manuel Carreiras Carrilho
Caixa – Banco de Investimento, S.A., represented by
José Carlos Athaíde dos Remédios furtado
Vasco Maria de Portugal e Castro de Orey
audit Board
Statutory Auditors (acting)
Deloitte & Associados, SROC, S.A., represented by
João Carlos henriques gomes ferreira
Statutory Auditors (deputising)
Carlos Luís Oliveira de Melo Loureiro
STATUTORy BODIES. VENTURE CAPITAL
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caiXa caPital, Scr, S.a.
ShareholderS’ Meeting
Chairman
António Pereira grada ferreira
Secretary
Ana Cristina Pinheiro Vieira Rodrigues de Andrade
Board of directorS
Chairman
Alcides Saraiva de Aguiar
Board Members
Caixa geral de Depósitos, S.A., represented by
Alfredo Manuel Antas Teles
José Manuel Carreiras Carrilho
Caixa – Banco de Investimento, S.A., represented by
José Carlos Athaíde dos Remédios furtado
Vasco Maria de Portugal e Castro de Orey
audit Board
Statutory Auditors (acting)
Deloitte & Associados, SROC, S.A., represented by
João Carlos henriques gomes ferreira
Statutory Auditors (deputising)
Carlos Luís Oliveira de Melo Loureiro
Remuneration Committee
Member: henrique Pereira Melo
Member: Vitor José Lilaia da Silva
STATUTORy BODIES. VENTURE CAPITAL
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SENIOR MANAgEMENT. BANk
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finance and Structuring Division
francisco Santos
Brokerage Division
Valentim Martins
Corporate finance – Debt Division
Paulo Serpa Pinto
Corporate finance – Advisory Division
francisco Rangel
Equity Capital Market Division
Ana Santos Martins
Project and Structured finance Division
Sérgio Monteiro
Planning, Risk Control and Organisation Division
António gregório
Operations Division
Miguel freire
Accounts Division
João gonçalves
Information Systems Division
Ema Campos
Medium-sized Companies Office
Ana Rocha homem
Syndication and Sales
Leonor Canedo
Research Office
João Lourenço
Legal Affairs Office
grada ferreira
SENIOR MANAgEMENT. BANk
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human and Administrative Resources Office
Manuel Cunha
Compliance Office
Ália Pereira da Silva
Internal Audit Office
fernando Oliveira
SENIOR MANAgEMENT. BANk
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SUMMARy Of CONSOLIDATED OPERATIONS
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14 SUMMARy Of CONSOLIDATED OPERATIONS
conSolidated
year
Net interest income including income from equity instruments
Commissions (net)
Income from financial operations
net operating income (*)
Structural costs (general adm. costs + depreciation)
Provisions / Impairment
Other costs and income (net)
Income before tax
Income tax
net income
cash flow
year end
Credit portfolio
Securities and derivatives portfolio
Customer deposits
net assets
Share capital
Shareholders’ equity (prior to appropriation of net income)
Solvency ratio (separate)
Solvency
Performance ratios
ROE
ROA
Structural costs adjustments (**) / net operating income
2009€ thouSand
35,297
62,534
20,136
117,967
-29,178
-34,320
2,232
56,700
-11,093
45,607
92,176
878,631
953,330
139,125
1,930,507
81,250
212,966
8.85%
17.64%
2.36%
23.38%
(*) Does not include costs and income. (**) Adjusted for inclusion of income generated from employees on loan.
24,612
60,119
4,743
89,474
-27,006
-18,771
-1,098
42,599
-12,357
30,242
62,407
865,410
921,312
119,162
1,896,964
81,250
160,196
8.67%
15.88%
1.59%
28.42%
2008€ thouSand
43.4%
4.0%
324.5%
31.8%
8.0%
82.8%
-303.2%
33.1%
-10.2%
50.8%
47.7%
1.5%
3.5%
16.8%
1.8%
0.0%
32.9%
2.1%
11.1%
48.0%
-17.7%
% groWth 2009 / 2008
SeParate
34,648
58,246
14,251
107,145
-26,372
-29,581
1,898
53,090
-11,121
41,969
83,773
891,860
878,010
146,444
1,927,765
81,250
184,468
8.85%
18.53%
2.18%
23.14%
2009€ thouSand
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RELEVANT EVENTS
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2009 was yet another challenging but successful year for Caixa – Banco de Investimento (CaixaBI). The bank’s
performance exceeded the expectations set out in its Activities and Budget Plan, in which it achieved its highest
level of net operating income and the best ever financial results. Business secured and completed is indicative of
the upwardly mobile trend of CaixaBI’s domestic and international status, with international aspects playing an
increasingly important role in terms of its activity as a whole.
Caixa geral de Depósitos (CgD) group’s investment bank, enjoys the same AA- rating on its medium and long
term liabilities, as awarded to CgD and confirmed by fitch Ratings in September 2009.
RESULTS
CaixaBI’s net operating income, in 2009, was up 31.8%, over the preceding year, to e118 million. The referred
to amount includes a 4% increase in commissions over the preceding year to e62.5 million.
2009 closed with a 50.8% increase in net income over the preceding year to e45.6 million. Cash flow was up
47.7% from 2008 to 2009.
There was a marked improvement in cost-to-income which fell to 23.4%, owing to the growth of net operating
income.
RECOgNITION
Consistency of performance, allied with business innovation and development have won the bank the international
recognition of the main analysts and awards in due recognition of its leading position in the principal league
tables.
RELEVANT EVENTS
net operating income
Net interest income
Commissions
financial Operations
Structural costs
net income
Cash flow
Cost-to-income
118.0
35.3
62.5
20.1
29.2
45.6
92.2
23.4%
2009(e million)
89.4
24.6
60.1
4.7
27.0
30.2
62.4
28.4%
2008(e million)
31.8
43.4
4.0
324.5
8.0
50.8
47.7
-17.7
2009 / 2008 (%)
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global finance magazine awarded CaixaBI Best investment Bank in
Portugal, in 2009 status.
euromoney magazine also distinguished CaixaBI with its Best equity
house in Portugal award in 2009.
Bloomberg ranked the bank as the principal bookrunner for the issue of domestic bonds denominated in
euros in the primary debt market area for the third consecutive year.
CaixaBI consolidated its position in the M&A market, in Portugal, in the financial advisory area, having partici-
pated in 13 announced or successfully completed operations, placing it second in the Bloomberg ranking.
The bank provided advisory services to a consortium led by A. Silva & Silva group for an equity investment of
99.92% in Cintra Aparcamientos. Jornal de negócios classified this operation as the deal of the year in Portugal.
The various rankings also positioned CaixaBI among the main worldwide players in the Project finance area:
Ninth place worldwide as the MLA for PfI / PPP Project finance Loans (Dealogic)
RELEVANT EVENTS
1 Caixa – Banco de Investimento
ranK
ranKing – 2009 – BondS iSSued By doMeStic entitieS
BooKrunner
9.1
Share (%)
3,248.33
aMount (em)
19
no. oPerationS
1
2008 ranK
1
2007 ranK
Source: Bloomberg
gloBal Pfi / PPP ProJect finance loanS – 2009
State Bank of India
korea Development Bank
National Australia Bank
IDBI Bank
Santander
BBVA
Calyon
westpac Banking Corp
caixaBi / cgd
Sumitomo Mitsui Banking Corp
5,091
2,860
1,815
1,782
1,408
1,395
1,392
1,300
1,062
927
13.2
7.4
4.7
4.6
3.6
3.6
3.6
3.4
2.7
2.4
10
10
14
5
23
20
15
4
10
13
1
2
3
4
5
6
7
8
9
10
ranK Mandated lead arranger
no.oPerationS
(%)Share
aMount(uS$m)
Source: Dealogic
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Tenth place worldwide as Bookrunner of Project finance Bonds (Dealogic)
Sixth place in EMEA as MLA for Project finance Loans (Thomson Reuters)
RELEVANT EVENTS
eMea ProJect finance loanS – Mandated arrangerS – 2009
BNP Paribas
Calyon
BBVA
Santander
Societe generale
caixaBi / cgd
Sumitomo Mitsui finl grp Inc
UniCredit group
Natixis
RBS
4,070.5
3,324.1
2,932.4
2,768.3
2,510.5
2,209.2
1,893.2
1,604.6
1,469.4
1,418.1
6.5
5.3
4.7
4.4
4.0
3.5
3.0
2.6
2.3
2.3
42
38
41
45
35
25
23
16
21
14
ranK Mandated arranger
Source: Thomson Reuters
1
2
3
4
5
6
7
8
9
10
aMount(uS$m)
(%)Share
no.oPerationS
BooKrunner of gloBal ProJect finance BondS – 2009
ranK BooKrunner
Credit Suisse
Citigroup
hSBC
RBS
Bank of America
Deutsche Bank
JP Morgan
Morgan Stanley
goldman Sachs
caixaBi / cgd
Millennium BCP
Espirito Santo financial group
BBVA
2,060
815
743
704
658
642
550
517
400
351
351
351
351
18.6
7.4
6.7
6.4
5.9
5.8
5.0
4.7
3.6
3.2
3.2
3.2
3.2
5
2
1
3
3
3
2
2
2
1
1
1
1
Source: Dealogic
1
2
3
4
5
6
7
8
9
=10
=10
=10
=10
aMount(uS$m)
(%)Share
no.oPerationS
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Third place in the Iberian Peninsula as MLA for Project finance Loans (Dealogic)
first place in Portugal as MLA for Project finance Loans (Dealogic)
RELEVANT EVENTS
Mandated arranger – Portugal – 2009
caixaBi / cgd
Banco BPI
Espirito Santo finantial group
Banco Santander
Societe generale
Banco Bilbao Vizcaya Argentaria – BBVA
Banco Comercial Português – Millennium BCP
Banco Internacional do funchal – Banif
BNP Paribas
Caja de Ahorros y Monte de Piedad de Madrid – Caja Madrid
1,101
634
292
255
93
62
55
36
36
36
42.1
24.2
11.2
9.8
3.6
2.4
2.1
1.4
1.4
1.4
12
6
7
3
2
2
3
2
1
1
ranK
Source: Dealogic
1
2
3
4
5
6
7
8
9
10
aMount(uS$m)
(%)Share
no.oPerationS
Mandated arranger
Mandated arranger – iBerian PeninSula – 2009
Banco Santander
Banco Bilbao Vizcaya Argentaria – BBVA
caixaBi / cgd
Caja de Ahorros y Monte de Piedad de Madrid – Caja Madrid
Caja de Ahorros y Pensiones de Barcelona – La Caixa
Banco BPI
Instituto de Credito Oficial – ICO
Credit Agricole
Banco de Sabadell
Societe generale
3,043
1,710
1,388
1,254
1,252
634
526
490
460
398
20.0
11.2
9.1
8.2
8.2
4.2
3.5
3.2
3.0
2.6
52
36
14
32
29
6
10
7
15
8
ranK Mandated arranger
Source: Dealogic
1
2
3
4
5
6
7
8
9
10
aMount(uS$m)
(%)Share
no.oPerationS
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The bank operated as co-lead for several benchmark transactions internationally classified as Deals of the year, in
this area in 2009. The following transactions, with CaixaBI as MLA / Adviser were awarded Deal of the year status:
Rodoanel – americas transport deal of the year (Project finance international)
– latin america transport deal of the year (Project finance magazine)
Braga hospital – europe health deal of the year (Project finance magazine)
Odebrecht / Norbe – americas deal of the year (Project finance international)
– latin america oil & gas deal of the year (Project finance magazine)
Port of Pecém I – latin america Power deal of the year (Project finance magazine)
DEALS
CaixaBI led the field in several emblematic business deals, particularly in the following areas:
DEBT CAPITAL MARkET
CaixaBI led 19 of the 23 primary bond market issues in which it was involved in 2009. According to Bloomberg,
this performance ranked the bank as the principal bookrunner for the issue of domestic bonds denominated in
euros for the third consecutive year.
Portuguese public debt continued to comprise one of CaixaBI’s priorities in the sovereign debt segment as a spe-
cialised treasury securities trader. Particular reference should be made to the following, in 2009:
Joint lead manager for the Portuguese Republic’s new 5 year benchmark issue (3.60% October 2014) for the
amount of €3.25 billion;
RELEVANT EVENTS
2009 ranKing – BondS iSSued By national entitieS ranK BooKrunner nuMBer
of iSSueS aMount
(em)
caixaBi
hSBC
Barclays Capital
BES Investimento
JP Morgan
Source: Bloomberg
19
12
15
10
10
1
2
3
4
5
3,248
3,125
3,100
2,795
2,129
8.6
8.3
8.2
7.4
5.7
Share(%)
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Co-lead manager for the Portuguese Republic’s 10 year benchmark issue (4.75% June 2019) for the amount
of €4 billion.
EQUITy CAPITAL MARkET
The following table, comprising CMVM data, shows how CaixaBI once again consolidated its leading position in
the capital market, in Portugal, in 2009 in terms of the number of successfully completed transactions.
Takeover bids, in which CaixaBI was responsible for the respective organisation and structuring, were successfully
completed on Cires, Vista Alegre Atlantis and V.A. group. The largest capital market operation in Portugal, in
2009, was the €1,200 million Banco Espírito Santo public subscription with CaixaBI as co-lead manager.
RELEVANT EVENTS
Note: Excluding share capital increases in groups of which financial intermediaries are members.
adViSer ProPortional aMount (Em)
no.oPerationS
6
3
2
1
1
1
1
1
1
1
1
1
1
200
24
165
257
257
257
257
21
21
21
21
21
21
caixaBi
Millennium BCPI
BESI
JP Morgan
Credit Suisse
UBS
Calyon
BBVA
Banca IMI
Evolution Securities
Nomura International
INg Bank
keefe Bruyette & woods
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CORPORATE fINANCE – ADVISORy
CaixaBI consolidated its position in the M&A market in Portugal, in the financial advisory area, having participated
in 13 announced or successfully completed operations, as published by Bloomberg.
CaixaBI was involved in the most relevant domestic M&As in 2009:
A 99.92% equity investment in Cintra Aparcamientos by a consortium led by A. Silva & Silva group. This
acquisition provided A. Silva & Silva group with 370 thousand parking spaces in five countries, making it
the largest Iberian player and the sector’s fourth largest European player;
galp Energia’s and Morgan Stanley Infrastructure’s joint acquisition of a part of gas Natural SDg, S.A.’s natural
gas distribution and commercialisation business in the Madrid region.
PROJECT AND STRUCTURED fINANCE
The market dynamics in this area continued to make their effects felt through 2009, exemplifying the combined
effect of CgD group’s financial strategy and CaixaBI’s execution. The international rankings positioned CaixaBI
among the leading world players in conformity with the above referred to league tables.
As already stated, the bank played a leading role in several benchmark operations, internationally considered as
Deals of the year, in this area, in 2009.
Caixa geral de Depósitos group was involved in operations for around €1,673 billion, 84% of which allocated
to Portugal, 8% to Brazil, 7% to Spain and 1% to Mozambique.
RELEVANT EVENTS
league taBle – M&a – 2009 (Portugal)
BES Investimento
caixaBi
BNP Paribas
Millennium BCP
Morgan Stanley
12,922
10,322
8,236
8,182
2,284
25
13
2
2
2
ranK adViSer aMount(uSd bn)
dealcount
Source: Bloomberg, 19-01-2009
1
2
3
4
5
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Reference should be made to the following operations owing to their importance, dimension or characteristics:
Baixo tejo sub-concession: a greenfield road toll project in Portugal, with availability payments, led by Brisa,
with a concession period of 30 years;
iberWind: refinancing of Magnum Capital’s windfarm portfolio by project bonds (a pioneering financing model
in Portugal);
Baixo alentejo sub-concession: a greenfield road toll project in Portugal, with availability payments, led by the
Dragados / Iridium group, with a concession period of 30 years;
litoral oeste sub-concession: a greenfield road toll project in Portugal, with availability payments, led by Brisa,
with a concession period of 30 years;
Braga hospital: construction and clinical management of the new Braga hospital, led by Somague, José de
Mello group and Edifer, for a period of 30 years;
algarve litoral sub-concession: a greenfield road toll project in Portugal, with availability payments, led by the
Dragados / Iridium group, with a concession period of 30 years;
loures hospital: construction and clinical management of the new Loures hospital, led by Mota-Engil and
Espírito Santo Saúde for a period of 30 years.
fINANCE AND STRUCTURINg AREA
Trading portfolio management fuelled a high level of turnover, outperforming the iTraxx index by 5% and iBoxx
index by 2.4%.
The increase in the number of restructuring and business operations with new customers resulted in growth of
23% in total hedges.
CaixaBI continued to be the acknowledged leading liquidity provider.
BROkERAgE
The 15% increase in brokerage volumes on the bank’s internet platform – Caixadirecta Invest – was indicative of
its increasing importance in the market.
CaixaBI outperformed the rest of the market, in a year with a marked fall in trading volumes on Euronext Lisbon.
RELEVANT EVENTS
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SyNDICATION AND SALES
The creation of a loan syndication and sales desk was a highly opportune development, in 2009, which was
a particularly favourable year for debt issues.
Its intervention was associated with the success of a significant number of primary capital market issues, with
CaixaBI as joint lead manager.
The bank also placed more than €12 billion in 445 commercial paper issues in 2009.
VENTURE CAPITAL
2009 was the first year of implementation of the venture capital area strategy approved at the end of the preced-
ing year, designed to fuel the development of this industry, consolidate its leading position in the sector and pro-
vide companies and entrepreneurs with adequate capitalisation instruments to develop their innovation, growth
and internationalisation strategies.
CgD group has allocated more than €500 million to venture capital resources in its twofold capacity as an inves-
tor in funds managed by third parties and fundamentally as a direct operator through Caixa Capital, which has
been reinforcing its operating capacity in organisational and financial terms.
The venture capital area has vehicles adjusted to different target segments. 2009 witnessed the formation of
Fundo Caixa Empreender + and Fundo Caixa Mezzanine, which together with Fundo Grupo CGD and Fundo
Energias Renováveis comprise Caixa Capital’s funds under management portfolio. At the same time and with
the aim of making up for any market shortcomings, Caixa group has been involved in the creation of several
specialised funds, to be managed by entities specialising in seed capital, corporate restructuring operations or in
sectors having a relevant activity.
Caixa Capital is responsible for investing in corporate projects led by qualified management teams, comprising
businesses with high growth and appreciation potential, providing a suitable return on equity and contributing to
responsible and sustained wealth creation and social well-being.
The investment volume in terms of total assets under direct Caixa Capital management, at the end of 2009,
totalled €296 million in 32 companies, of which special reference should be made to the fact that 85% of the
portfolio comprised investments made over the last three years. 215 investment applications were analysed in
2009, with an amount of €72 million being invested and €42 million in approvals still to proceed. Several disin-
vestments totalling €37 million at cost price were also made.
RELEVANT EVENTS
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OPERATINg CONTEXT
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INTERNATIONAL ECONOMy
OVERVIEw
first quarter 2009 will probably go down in history as one of the most volatile periods in financial markets in
conjunction with a period of sharp contraction of gDP in most countries, possibly the most significant since the
great depression of 1929.
OPERATINg CONTEXT
gdP (quarterly figures)
Source: CaixaBI Equity Research
ChINA
BRAZILUSEZJAP
15%
10%
5%
0%
-5%
-10%
1Q07 3Q07 1Q08 3Q08 1Q09 3Q09e
US JAP BRAZIL EZ ChINA
Volatility of S&P 500
Jan feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
90
80
70
60
50
40
30
20
10
0
Source: CaixaBI Equity Research
2008 2009
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The crisis, initially appearing to be mainly financial, turned into general crisis with a transversal effect on almost
all sectors, owing to their dependence on the financial sector, in creating significant difficulties in access to credit
plus liquidity problems. The difficulties, were, in many cases, only resolved by government intervention in countries.
In the first instance and as a means of preserving the major financial system institutions and attenuating the finan-
cial crisis’s negative effects on the real economy, regulators, monetary authorities and governments made several
appropriate decisions which gradually succeeded in restoring the confidence of the different parties, contributing
towards progressive financial markets stabilisation.
Support for the banking sector was one of the first and most important measures taken by central banks. This was
not limited to bringing down intervention rates, but also involved concerted liquidity injections, using instruments
which had, hitherto been prohibited for such interventions.
Political decisions also made an important contribution to financial sector stabilisation. The measures put into
place essentially comprised: (i) the possibility of nationalisation or a state equity intervention in distressed banks
as an offset for the injection of the necessary funds; (ii) issue of guarantees to provide financial institutions with
access to the credit market, which was not occurring; (iii) provision of lines of credit for the recapitalisation of
banking institutions.
Investment incentives programmes were also presented in economic terms with the aim of contributing to the
dynamics of growth in most countries.
OPERATINg CONTEXT
eVolution of confidence indiceS in uS and eZ
Source: CaixaBI Equity Research
Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09
0
-5
-10
-15
-20
-25
-30
-35
-40
120
100
80
60
40
20
0
EZ (RhS)US
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The g20 meeting held in London, in early April 2009, approved several important ideas designed to stimulate
global economic activity. These included: (i) an increase in funds to support the most distressed economies, a part
of which under the management of international organisations such as the IMf or world Bank; (ii) greater
supervision of the global banking system, extending regulation into new areas; (iii) more support for international
trade to counter protectionism.
The measures taken gradually improved the confidence levels of various economic agents, reflected in a recovery
of international equity markets and lower spreads on credit in most sectors, including the financial sector. In eco-
nomic terms, many countries posted positive growths of gDP in the second and third quarters of 2009, at least
in quarterly terms, although in annual terms, the major economies are expected to contract.
greater stabilisation in the financial sector was also visible in the capacity of several of the largest world banks to
increase their capital by significant amounts with the aim of reinforcing their capital base and / or repay the loans
obtained from public entities.
Most developed countries recorded sharper falls in gDP, with emerging economies showing greater resilience
and, in many cases, positive changes in gDP in 2009.
According to the IMf’s latest estimates (published on 1 October), the world economy is expected to have con-
tracted by 1.1% in 2009, with more developed countries contracting by 3.4% (United States: -2.7%; Eurozone:
-4.2% and Japan: -5.4%), as opposed to emerging and developing economies (particularly including China and
India), which could post growth of as high as 1.7%.
The IMf has estimated world growth of 3.1% for 2010. These figures still fall short of those achieved between
2004 and 2007 (when world gDP was up between 4.5% and 5.2% in the said period), clearly supported by the
performance of the emerging economies (up 5.1% as opposed to the 1.3% estimate for developed countries).
OPERATINg CONTEXT
gdP eStiMateS for the MaJor countrieS
eurozone
germany
france
Spain
Portugal
Italy
United kingdom
US
Japan
Brazil
World economy
0.6
1.3
0.3
0.9
0.0
-1.0
0.7
0.4
1.2
5.1
3.0
2008 (%)
Source: CaixaBI Equity Research
-4.0
-5.0
-2.4
-3.8
-2.9
-5.0
-4.4
-2.5
- 2.7
-0.5
-1.1
2009e (%)
0.7
1.2
0.9
-0.7
0.5
0.2
0.9
2.5
2.1
3.5
3.1
2010e (%) 2007 (%)
2.8
2.5
2.3
3.6
1.9
1.6
2.6
2.1
3.8
5.7
5.2
2006 (%)
3.0
3.2
2.4
4.0
1.4
2.0
2.9
2.7
3.9
4.0
5.1
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The maintenance of economic growth incentives will still be required, using monetary, budgetary and fiscal
mechanisms for a relatively long period of time, to consolidate an upturn in global economic activity.
Inflationary pressures are unlikely to be very significant during the first stage, to the benefit of the maintenance
of expansionary monetary policies.
Lower inflationary pressures derive from:
The fact that prices of the main raw materials are lower than their peaks of first half 2008, which in itself has
a positive effect on the monthly and month-on-month changes in (consumer and producer) prices;
Less pressure in terms of private consumption in a period of deleverage of the major economies whose unem-
ployment rates are likely to remain relatively high.
This will favour the maintenance of expansionary monetary policies in the major economic blocs.
Various risk factors still weigh on the major economies and may lead to a delay in recovery, particularly:
Expectation of continued high unemployment for a relatively long period, owing to the gap between the more
positive change in gDP and a shift towards job creation, which, if occurring, could lead to less dynamic domestic
demand in different countries;
Maintenance of credit restrictions, reflecting not only the weakness of banks’ balance sheets but also the need
to continue to reinforce capital to provide for losses still not recognised in their credit and / or investment portfo-
lios, in addition to complying with new regulatory demands;
A greater unwillingness to assume risks which have not been guaranteed by financial institutions, which have
opted to invest cash surpluses in short term investments with central banks at relatively low rates;
Amounts associated with budget stimuli have been a factor behind higher budget deficits and public debt ratios,
in several cases to worrying amounts, which could constrain such countries’ budget policies for a relatively long
period. This may lead to a reduction in the scope for the implementation of additional stimuli. It may also lead
to additional pressure to start the public accounts rebalancing process earlier or more rapidly.
CENTRAL BANkS’ INTERVENTION RATES
After the US federal Reserve had reduced its intervention rate seven times, from 4.00% to 0.25%, in 2008, to
counteract economic slowdown and financial market instability, the fED left its monetary policy unchanged over
the whole of 2009, concentrating on funds injections to the financial sector to stimulate a faster resumption of
economic activity.
OPERATINg CONTEXT
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The Bank of England reduced its intervention rate three times, from 2% to 0.5%, to counteract the Uk economy’s
negative indicators.
The ECB reduced its reference rates by a total 150 bps between January and May, ending up with a Refi rate of
1.0%. After its meeting in early May, the European monetary authorities left their reference rates unchanged. The
ECB, however, implemented several liquidity injection operations with longer maturities, with no limit on amounts
and at fixed rates, permitting a rebalancing of money markets.
DOMESTIC ECONOMy
The Portuguese economy was significantly affected by the international economic-financial crisis, experiencing a
sharp fall in gDP between mid 2008 and first quarter 2009. The Portuguese economy’s contraction is explained by:
A sharp reduction in domestic exports, reflecting highly negative external factors, not only in the main domestic
export markets such as Spain, germany and france (in the case of goods) but also in Ireland and the Uk which
are two important source markets for domestic tourism;
A significant drop in investment, reflecting the more negative expectations of most economic agents, leading
them to postpone investment plans, but also on account of the additional difficulties in terms of access to credit
(higher spreads and financial institutions’ greater unwillingness to accept non-collateralised risks);
OPERATINg CONTEXT
eVolution of central BanKS’ interVention rateS
Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09
7%
6%
5%
4%
3%
2%
1%
0%
Source: CaixaBI Equity Research
ECB Refi fed funds
Bank of England discount rate Bank of Japan discount rate
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A somewhat less pronounced contraction of private consumption in an economic environment with lower
disposable household income owing to higher unemployment (9.8% at the end of the third quarter against an
end of 2008 figure of 7.6%).
The second and third quarters, however, were characterised by positive gDP growth (comparing with the last
trimester it growths 0.4% and 0.9% respectively), although, more importantly, by an almost across-the-board
improvement in confidence indices which hit all-time lows at the start of the year, as in most other European
economies.
Taking the above into account, companies were forced to deal with a negative economic environment on various
levels over the last few months:
Significantly lower demand, both domestically and externally, both in terms of tradable goods as in invisibles,
exemplified by tourism or services. Lower external demand (resulting from lower consumption and investment
in most European countries) badly affected domestic exports, mainly comprising SMEs;
Additional credit restrictions, owing to higher spreads on operations and greater aversion to risk by investors in
general and financial institutions in particular;
global increase in competition owing to fresh entrants to the international markets comprising companies in
countries whose competitiveness is based on low production costs. These particularly include Eastern European
and Asian countries (with lower labour costs);
A limited capacity to lead innovation processes in the sectors in which these companies operate, as a means of
capturing market segments of international interest.
The more positive context of several of the main economies for domestic exports (such as germany, france and
Angola), in which Spain is expected to continued to be an exception, may support gradual improvement in do-
mestic economic activity.
The IMf’s latest forecasts have revised the estimates of Portuguese gDP upwards, both for 2009 as for 2010,
indicating higher values than in the rest of the Eurozone. The IMf has accordingly forecast a 3.0% contraction
of Portuguese gDP for 2009 and 0.4% for 2010. The European Commission has estimated gDP values of -2.9%
and +0.3%, respectively in 2009 and 2010. OECD forecasts of -2.8% for 2009 and +0.8% for 2010 are slightly
more optimistic.
Not only the anti-crisis measures put into effect, in Portugal, but also the significant contraction of gDP, are also
having negative effects on the public accounts (budget deficit and public debt) in Portugal. It is estimated that
this year’s budget deficit may be more than 8% and that public debt could represent more than 77% of gDP.
OPERATINg CONTEXT
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Investment (public and private, in infrastructures and all other matters associated with increased domestic eco-
nomic competitiveness) and an increasingly export oriented approach with higher added value are accordingly
playing a relevant role for the future growth of the domestic economy.
The inflation rate remained negative for a large part of 2009, reflecting not only adjustments to the main raw
material prices in international markets but also less pressure from private consumption.
fINANCIAL MARkETS
fOREIgN EXChANgE MARkET
The euro depreciated in value against the US dollar in first quarter 2009, although this trend was corrected in the
second half of the year. Performance against the yen was in similar vein, whereas the single currency depreciated
against sterling during the year as a whole at 2008 close.
The euro was worth an average USD 1.3945 in 2009, peaking at 1.5094 in early December and bottoming out
at 1.2543 in early March.
The gap with sterling varied between 0.8437 and 0.9603, with an average exchange rate of 0.8913.
OPERATINg CONTEXT
doMeStic econoMic indicatorS
gdP
Private consumption
Public consumption
Investment
Domestic demand
Imports
Exports
Consumer Price Index (year on year)
Unemployment
Budget deficit to gDP (%)
Public debt to gDP (%)
0.0
1.7
0.7
- 0.7
1.0
2.7
- 0.5
2.4
7.7
-2.6
66.4
2008 (%)
Source: CaixaBI Equity Research
-2.9
-1.0
1.4
-13.3
-3.2
-14.4
-14.5
-1.0
9.5
-8.4
74.6
2009e (%)
0.5
0.6
0.6
0.4
0.6
1.0
1.7
1.3
9.4
-8.5
84.8
2010e (%) 2007 (%)
1.9
1.6
0.0
3.1
1.7
6.1
7.8
3.0
8.1
-2.6
63.5
2006 (%)
1.4
1.9
-1.4
- 0.7
0.7
5.1
8.7
2.7
7.7
-3.9
64.8
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The euro’s minimum value against the yen was 113.28 with a maximum of 138.36 and an average of 130.38.
MONEy MARkET
The consequences of the US sub-prime crisis were felt in the real economy in the US and worldwide. Eurozone
interest rates fell during the course of the year, with the monetary authorities endeavouring to boost economic
performance by increasing financial system liquidity.
OPERATINg CONTEXT
eur / uSd, eur / gBP and eur / JPy eXchange rateS (BaSe 100)
Source: Bloomberg, CaixaBI Equity Research
Jan-09 feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
115
110
105
100
95
90
85
80
EUR / USD EUR / gBP EUR / JPy
EUR / USD
EUR / gBP
EUR / JPy
oVernight and 3, 6 and 12 MonthS euriBor rateS
Source: Bloomberg, CaixaBI Equity Research
Jan-09 feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
3M
ON
6M
12M
ON 3M 6M 12M
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CAPITAL MARkET
EQUITIES
After significant falls in the major stock market indices, in 2008, 2009 was a year of significant recovery, starting
March. The resumption of economic growth was propped up by government plans in the US, Europe and other
developed economies. The PSI20 was up 33.5% in 2009, the Euro Stoxx 50 appreciated by 21.1%, the IBEX35
by 29.8%, S&P500 by 23.5% and the Dow Jones Industrial by 18.8%. Brazil was one of the first economies to
show signs of recovery, with a strong appreciation in the value of its domestic capital market with an 82.7%
appreciation of the Bovespa in 2009.
BONDS
There was an upwards inclination of the german sovereign curve in 2009, with the short zone following the
downwards trend of reference interest rates and the long side incorporating improved economic performance in
recording higher rates.
OPERATINg CONTEXT
eVolution of SeVeral indiceS
Source: Bloomberg, CaixaBI Equity Research
200
180
160
140
120
100
80
60
40
20
0Jan-09 feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
Bovespa
PSI20IBEX35S&P500EuroStoxx50Dow Jones Ind.
S&P500 EUROSTOXX50 DOw JONES IND.
BOVESPA PSI20 IBEX35
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ACTIVITy
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BUSINESS STRUCTURE
Caixa geral de Depósitos (CgD) group’s investment banking business has been spun off into CaixaBI, which
operates alongside CgD’s commercial structures to increase cross-selling operations. The bank develops products
and services for customers operating in its target market segments of large and medium sized companies, public
institutes and local councils, institutional investors and major domestic and regional project developers, as well as
individual private investors in the trading area.
CaixaBI has concentrated on target markets comprising Portuguese companies. In line with this strategy it has
carved out a highly competitive position in the Portugal – Spain – Brazil – Lusophone Africa perimeter, without
losing sight of other geographies of interest to its customers.
The bank’s commercial organisation, with the aim of applying the referred to strategic model, is based on a product
divisions approach for both domestic and international aspects.
CaixaBI provides highly specialised financial services focusing in the following areas:
Structured finance
Corporate Debt finance
Corporate Equity finance
Capital Market
Syndication
Corporate Risk Management Advisory
Project finance
Medium and long term domestic and international credit
Brokerage
Venture Capital / Private Equity
CaixaBI also has its own research service, as part of the European Securities Network (pan-European investment
banks) – providing it with an indispensable European outlook to operate in such strongly globalised markets.
Its research areas monitor domestic and international financial markets to assist investors’ asset portfolio manage-
ment-linked decision-making processes.
ACTIVITy
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CONSOLIDATED PERfORMANCE
consolidated net assets were up 1.8% in 2009, to €1,930,507 thousand. This was €33,543 up over the end
2008 figure of €1,896,964 thousand.
The credit portfolio was up €13,221 thousand to €878,631 thousand over the preceding year’s €865,410
thousand.
The securities and derivatives portfolio was up 3.5% by €32,018 thousand to €953,330 thousand, i.e. up
€921,312 thousand over the preceding year’s close.
Information on the assets structure for 2008 and 2009 is set out below:
ACTIVITy
net aSSetS (thousand euros)
2008
2009
1,896,964
1,930,507
credit Portfolio (thousand euros)
2008
2009
865,410
878,631
SecuritieS and deriVatiVeS Portfolio (thousand euros)
2008
2009
921,312
953,330
OThER ASSETS CASh ASSETS
SECURITIES PORTfOLIO LENDINg
2008
48.6% 45.6%
0.9%
4.9%
49.4% 45.5%
0.1%
5%
2009
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There was a 0.2 percentage points improvement in the bank’s separate solvency ratio in 2009 over the end of
last year’s level, i.e. 8.85% against an end 2008 figure of 8.67%.
RESULTS AND RATIOS
consolidated net income was up 50.8% over the year 2008 figure of €30,242 by €15,365 thousand to
€45,607 thousand.
return on equity (prior to the appropriation of net income for the year), improved to 17.64% at end 2009
against 15.88% at end 2008.
return on assets broke the 2% barrier, increasing from 1.59% in 2008 to 2.36% at end 2009.
net operating income was up 31.8% to €117,967 thousand in comparison to the preceding year’s close of
€89,474 thousand, with commissions accounting for 53% of the total.
ACTIVITy
SolVency ratio (%)
2008
2009
8.67
8.85
conSolidated net incoMe (thousand euros)
2008
2009
30,242
45,607
return on equity (%)
2008
2009
15.88
17.64
return on aSSetS (%)
2008
2009
1.59
2.36
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39
cash flow, was, in turn, up 47.7% to €92,176 thousand at end 2009 against the end of 2008 figure of €62,407
thousand.
An analysis of net operating income beginning with net interest income shows its performance in achieving
growth of 43.4% over the preceding year. This account heading, at end 2009, totalled €35,297 thousand against
the 2008 figure of €24,612 thousand.
income from financial operations, in 2009, increased to €20,136 thousand against the year 2008 figure of
€4,743 thousand.
Net commissions continue to account for the lion’s share of net operating income, having achieved their highest
ever level of performance at €62,534 thousand in 2009 against the year 2008 figure of €60,119 thousand.
ACTIVITy
fINANCIAL OPERATIONS COMMISSIONS
NET INTEREST INCOME
27.5%
5.3%
67.2%
2008
53.0%
29.9%
17.1%
2009
caSh floW (thousand euros)
2008
2009
62,407
92,176
net intereSt incoMe (thousand euros)
2008
2009
24,612
35,297
incoMe froM financial oPerationS (thousand euros)
2008
2009
4,743
20,136
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An amount of €34,320 thousand was paid into the provisions / impairments account heading in comparison
to the preceding year’s €18,771 thousand.
DEBT CAPITAL MARkET
The major challenges to be faced during the course of 2009 as a whole, reflecting the crisis situation in financial
markets and economic environment characterised by a deep worldwide economic recession, did not preclude
CaixaBI’s activity in its operating areas from benefiting from the highly dynamic performance of bond markets,
particularly in the primary bond market denominated in euros, which posted peak performance levels. Reference
should also be made to the cautious re-opening of the European securitisation market, in the last quarter of the
year, in which the first public placements of new issues were made after more than two years without placement
operations for end user customers.
DEBT CAPITAL MARkET
CaixaBI remained a benchmark operator in the debt capital market area, in 2009, notably in bonds and
commercial paper.
CaixaBI led 19 of the 23 primary bond market issues in which it was involved, in 2009. On the basis of this
performance, the Bloomberg league table ranks the bank as the principal bookrunner for euro bonds issued by
national entities for the third consecutive year.
ACTIVITy
coMMiSSionS (thousand euros)
2008
2009
60,119
62,534
net ProViSionS (thousand euros)
2008
2009
18,771
34,320
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41
Portuguese public debt continued to comprise one of CaixaBI’s operating priorities, as a specialised treasury
securities trader, in the sovereign debt segment. Special reference should be made to the following operations,
in 2009:
Joint lead manager for the Portuguese Republic’s new 5 year bench-
mark issue (OT 3.60% October 2014) for the amount of €3.25 billion;
Co-lead manager for the Portuguese Republic’s 10 year benchmark
issue (OT 4.75% June 2019) for the amount of €4 billion;
CaixaBI led 18 private debt issues in 2009, including 8 of the total 11 Eurobond issues made during the same
period by domestic corporate issuers.
ACTIVITY
1 Caixa – Banco de Investimento
RANK
RANKiNg – 2009 – BoNds issued By domestic eNtities
BooKRuNNeR
9.1
sHARe (%)
3,248.33
AmouNt (em)
19
No. oPeRAtioNs
1
2008 RANK
1
2007 RANK
Source: Bloomberg
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In addition to the private debt segment issues set out below, CaixaBI was the joint dealer manager in Caixa Geral
de Depósitos’s tender offer on two €220 million Upper Tier II issues.
CaixaBI organised and led 22 new commercial paper programmes, for around €5.2 billion, in 2009. Particular
reference should be made to the following for amounts of €100 million, or more:
Financial advisory services for setting up Euro Medium Term Notes programmes, as a highly flexible instrument for
the bond and particularly Eurobonds market, are another of CaixaBI’s debt capital market priorities.
CaixaBI acted as co-arranger for Caixa Geral de Depósitos’s bond programme on the public sector, in this area in
2009 and which continues to be the only one of its kind in Portugal, in addition to acting as joint arranger for
Parpública SGPS’s Euro Medium Term Notes Programme.
ACTIVITY
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STrUCTUrED ASSET FINANCE
Particular reference should be made CaixaBI’s involvement in structured asset finance transactions completed
in 2009:
Joint arranger and joint lead manager for two securitisation operations
on edP – serviço universal credits (a regulated EDP Group electricity
commercialiser), relating to tariff adjustments for 2007 and 2008 (Ener-
gyOn No. 1 securitisation notes operation, totalling €1,258,600,000)
and in 2009 (EnergyOn No. 2 securitisation notes operation, totalling
€442,450,000);
Sole arranger for a Banco caixa geral espanha residential mortgages securitisation
operation of €400 million.
energyon operations were particularly innovative as the first asset securitisation operation
on regulated assets in Portugal. The high quality of the securitised credits, associated with
the characteristics of the structure designed for each of the operations, enabled Moody’s
Investors Service to allocate an Aaa rating on 99.60% of the amount of the securities issued
in each of the said operations.
Banco Caixa Geral Espanha’s residential mortgages securitisation for which CaixaBI was the exclusive arranger
was performed under the terms of Spain’s securitisation law and also evidenced the growing international character
of the bank’s structuring capacities in this area.
EqUITY CAPITAl MArkET
There were no IPOs or capital increases in the equity market, in Portugal, in 2009, except for a few one-off cases
of capital increases by several banks to comply with the capital ratios defined by the Bank of Portugal. The rate
of capital market activity, in Spain was also very low with no offers of relevance in terms of size, except for a few
capital increases. The Brazilian market, after a poor first half, posted a relevant series of successfully completed offers
starting August 2009.
recognition of the bank as a leading player in the variable-income securities capital market
was once again reinforced with Euromoney’s award of its Best equity House in Portugal
prize, in 2009.
ACTIVITY
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The bank successfully completed the following capital market operations:
Financial advisory services to ZON for the disposal of an equity investment
in ZON to kento Holding limited;
Financial advisory services to Caixa Geral de Depósitos for the disposal
of an equity investment in ZON to kento Holding limited;
Financial advisory services to Cinveste for the disposal of an equity
investment in ZON to kento Holding limited;
Co-manager for the international tranche of the primary public subs-
cription on ccR (Brazil) shares;
Co-manager for the international tranche of the primary public subs-
cription on Banco santander (Brazil) shares;
Organisation and structuring of shin-etsu’s potestative acquisition
of an equity investment in Cires;
Organisation and structuring of cerutil’s takeover bid for V.A. Group;
Organisation and structuring of shin-etsu’s takeover bid for Cires;
Organisation and structuring of cerutil’s takeover bid for Vista Alegre
Atlantis and financial advisory services for Cerutil’s analysis of Vista Alegre
Atlantis’s equity structure;
Financial advisory services for the analysis of galp energia’s equity
structure and funding options;
Co-lead for the Banco espírito santo public subscription.
The largest capital market operation completed in Portugal, in 2009,
was the €1.2 billion Banco Espírito Santo public subscription with Caix-
aBI as co-lead. reference should also be made to the successful takeo-
ver bids for Cires, Vista Alegre Atlantis and V.A. Group, organised and
structured by CaixaBI.
CaixaBI also provided advisory services to Galp Energia for the analysis of its equity structure and funding options
for its investment plans. CaixaBI was the only Portuguese bank to provide such advisory services, having, as in the
case of the other two contracted banks, provided the company with a separate report.
ACTIVITY
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Reference should also be made to the advisory services provided for ZON Multimédia’s, Cinveste’s and Caixa geral
de Depósitos’s disposal of 10% of ZON Multimédia’s equity capital to kento holding Limited. This operation made
it possible to reinforce the company’s equity base and consolidate ZON Multimédia’s strategic partnership for the
Angolan market.
Notwithstanding the highly unfavourable economic environment felt during the course of the year, CaixaBI
endeavoured to leverage its operations in Brazil, in partnership with Banco Caixa geral - Brasil, on account of the
opportunity existing on the reopening of the primary market in Brazil in third quarter 2009 pursuant to which
CaixaBI was involved as co-manager in the international tranche of the Banco Santander (Brazil) and CCR –
Companhia de Concessões Rodoviárias primary public offers, reinforcing its international presence in the capital
market area.
The Banco Santander (Brazil) offer of around 13.2 billion Brazilian reais or €5.1 billion, was the largest worldwide
IPO, in 2009. Its co-manager status in both operations enabled CaixaBI to make an active contribution to the
geographical diversification of the said placement.
The following table, comprising CMVM data, shows that CaixaBI once again consolidated its leading position in
the capital market, in Portugal, in 2009, as the leading financial institution in number of successfully completed
operations.
ACTIVITy
adViSer no.oPerationS
ProPortionalaMount (€m)
6
3
2
1
1
1
1
1
1
1
1
1
1
200
24
165
257
257
257
257
21
21
21
21
21
21
Note: Excluding share capital increases in groups of which financial intermediaries are members.
caixaBi
Millennium BCPI
BESI
JP Morgan
Credit Suisse
UBS
Calyon
BBVA
Banca IMI
Evolution Securities
Nomura International
INg Bank
keefe Bruyette & woods
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Corporate FinanCe – advisory
the unfavourable economic and financial environment led to a significant downturn in the number of M&a
operations, in 2009, in comparison to the preceding year, both worldwide and in europe, in a continuation of the
trend in 2008. the last quarter, however, witnessed a slight market upturn, particularly visible worldwide. 2009
witnessed a 31% worldwide decrease in the total value of such transactions with a sharper market fall recorded
in european terms, at 55%.
CaixaBi consolidated its position in portugal’s M&a market, in the financial advisory area, having participated in
13 announced or successfully completed operations, as published by Bloomberg.
CaixaBi successfully completed the following projects in the said year:
Financial advisory services to a consortium led by A. Silva & Silva
Group for a 99.92% equity investment in Cintra aparcamientos;
Financial advisory services to Galp Energia in a consortium for the ac-
quisition of natural gas distribution and commercialisation assets from
Gas natural in the Madrid region;
aCtivity
MErGErS And AcquiSitionS
World market
Growth rate
european market
Growth rate
1,168
-29.5%
619
-9.4%
2002
source: Bloomberg
1,020
-12.7%
451
-27.2%
2003
1,564
53.3%
636
41.0%
2004 2001
1,656
-51.6%
683
-51.2%
2000
3,421
13.7%
1,400
9.8%
1,947
24.5%
863
35.7%
2005
2,774
42.5%
1,331
54.2%
2006
3,126
12.7%
1,573
18.2%
2007
1,744
-44.2%
899
-42.8%
2008
1,209
-30.6%
404
-55.1%
2009
(eUr bn)
M&A LEAGuE tAbLE – 2009 PortuGAL rAnK AdViSEr AMount
(uSd bn) dEAL
count
Bes investimento
caixabi
Bnp paribas
Millennium BCp
Morgan stanley
Citi
Jp Morgan
UBs
Banco santander
rothschild
12,922
10,322
8,236
8,182
2,284
2,009
1,844
1,615
1,145
1,139
25
13
2
2
2
4
5
2
1
1
source: Bloomberg, 19-01-2009
1
2
3
4
5
6
7
8
9
10
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Financial advisory services to Zon for the disposal of an equity invest-
ment in Zon to Kento Holding Limited;
Financial advisory services to caixa Geral de depósitos for the dis-
posal of an equity investment in Zon to Kento Holding Limited;
Financial advisory services to cinveste for the disposal of an equity
investment in Zon to Kento Holding Limited;
Financial advisory services to caixa Seguros for the revision of the
joint venture agreement between Hpp and Usp;
Financial advisory services to Galp Energia for an analysis of the
company’s equity structure and funding options;
Financial advisory services to cavalum for the company’s economic
and financial assessment;
Financial advisory services to the Amorim / interfamilia ii Group for
the analysis and issue of a technical opinion on different economic and
financial valuations of the amorim Group holding company.
CaixaBi was involved in the following most relevant domestic M&as in 2009:
an equity investment of 99.92% of Cintra aparcamientos by a consortium led by a. silva & silva Group. the
investment provided a. silva & silva Group with 370 thousand parking spaces in five countries, making it the
largest iberian player and fourth largest european company in the sector. this was one of the largest transac-
tions to which CaixaBi had ever provided advisory services. the completion of this transaction is all the more
relevant owing to the fact that it was performed in a highly difficult M&a market environment, in a year in
which there number of transactions of relevant size was very small;
Galp energia’s and Morgan stanley infrastructure’s joint acquisition of a part of Gas natural sdG, s.a.’s natural
gas distribution and commercialisation business in the Madrid region. CaixaBi’s advisory services to Galp energia
contributed to the successful completion of this deal, enabling the company to expand its presence in the
spanish natural gas commercialisation market. the deal will also enable Galp energia to leverage its operational
experience as the leading distribution and commercialisation company in the portuguese natural gas market,
with more than 900 thousand customers, in exploiting growth opportunities in spain as a highly active market
with major growth potential for an iberian player of Galp energia’s dimension and ambition. this operation
gave Galp energia a portfolio of around 1.3 million customers in the iberian peninsula;
aCtivity
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CaixaBI played an active role in providing advisory services for a part of ZON’s, Caixa geral de Depósitos’s and
Cinveste’s disposals of equity investments, comprising 10% of equity capital to kento holding Limited, enabling
ZON to consolidate the bases for a partnership in Angola in the form of a 30% ZON Multimédia and 70%
SOCIP – Sociedade de Investimentos e Participações, S.A., joint venture for the development of a satellite pay
TV service.
PROJECT AND STRUCTURED fINANCE
The bank was involved in structuring 17 project finance transactions, in 2009, as set out in the following table:
The operations entailed a total Caixa geral de Depósitos group involvement of around €1,673 billion, 84% of
which allocated to operations in Portugal, 8% to Brazil, 7% to Spain and 1% to Mozambique.
On a sector level, reference should be made to the 54% accounted for by the road and 28% by the energy sectors
in terms of total CgD group operations, as an indication of its domestic and international dynamism.
ACTIVITy
Baixo Tejo sub-concession
Baixo Alentejo sub-concession
Litoral Oeste sub-concession
Braga hospital – Infrastructure
Braga hospital – Services
Renomar (refinancing)
Algarve Litoral sub-concession
Águas Azambuja
global3 (refinancing)
Martel wind (refinancing)
Águas de gondomar
Central de Pecém
Angra hospital
Norbe VIII e IX
Rodoanel Oeste
Infinita Renovables (refinancing)
Loures hospital
total
436,100,000
401,500,000
600,150,000
141,076,000
46,052,000
512,000,000
174,360,060
7,500,000
279,000,000
998,100,000
52,900,000
706,910,552
75,700,000
926,896,552
648,275,862
202,000,000
30,000,000
6,238,521,026
aMount of deBt (B)
POR
POR
POR
POR
POR
SPA
POR
POR
SPA
POR
POR
BRA
POR
BRA
BRA
SPA
POR
country
Please Note: The Pecém Power Station, Norbe, Rodoanel and Cinac projects were priced in USD at EUR 1.45 to the dollar.
ProJect
Road
Road
Road
health
health
Energy
Road
water
Energy
Energy
water
Energy
health
Energy
Road
Energy
health
Sector
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Reference should be made to the following operations owing to their importance, dimension or characteristics:
Baixo Tejo sub-concession: a greenfield road toll project in Portugal,
with availability payments, led by Brisa, with a concession period of 30
years;
IberWind: refinancing of Magnum Capital’s windfarm portfolio by
project bonds (a pioneering financing model in Portugal);
Baixo Alentejo sub-concession: a greenfield road toll project in Por-
tugal, with availability payments, led by the Dragados / Iridium Group,
with a concession period of 30 years;
Litoral Oeste sub-concession: a greenfield road toll project in Por-
tugal, with availability payments, led by Brisa, with a concession period
of 30 years;
Braga Hospital: construction and clinical management of the new
Braga hospital, led by Somague, José de Melo Group and Edifer, for a
period of 30 years;
Algarve Litoral sub-concession: a greenfield road toll project in Por-
tugal, with availability payments, led by the Dragados / Iridium Group,
with a concession period of 30 years;
Loures Hospital: construction and clinical management of the new
Loures hospital, led by Mota-Engil and Espírito Santo Saúde for a period
of 30 years.
ACTIVITY
Sector Distribution
54%
28%
15%
1%
2%
WATER
HEALTHROAD ENERGY
INDUSTRIAL
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In international terms, reference should be made to geographical expansion via CaixaBi’s involvement in three
operations in Brazil, whose financial close occurred in the second half of the year:
Port of Pecém I: a “build and operate” project for two EDP and
MPX Group power stations in Brazil;
CCR: Support for a structured finance operation for the Rodoanel
Oeste road concession;
Norbe: financing support for two Odebrecht Group oil prospecting
vessels.
The bank was also involved in an operation in Mozambique at the end of the year, providing advisory and
structuring services on several operations in progress, particularly:
Tete Bridge concession – financial advisory services to the Ascendi and Soares da Costa consortium;
Catembe Bridge concession – Ponta do Ouro: financial advisory services to the Ascendi consortium.
There was an 18% increase in the number of projects with CaixaBI as the agent bank in 2009. The bank is currently
responsible for agencying more than 100 projects.
The bank has provided advisory services to CREDIP. It has continued to perform a series of relevant activities
upon which work began in 2008. June 2009 witnessed the successful completion of the interim finance operation
for the implementation of toll systems for shadow-toll concessionaires in the Costa de Prata and Greater Porto
areas. July also witnessed the successful completion of the structuring of the implementation of toll systems for
the Norte Litoral, S.A. shadow-toll concessionaire based on a financing structure identical to that used for the
Costa de Prata and the Greater Porto area shadow-toll concessions.
In the case of operations whose financing is structured on a corporate basis, over the course of 2009, reference
should be made to an ongoing, growing involvement in identifying mandates guaranteeing CaixaBI’s presence as
mandated lead arranger in the respective league tables.
The economic environment is reflected in the greater difficulties felt by several companies in a difficult scenario
of liquidity restrictions having a direct impact on their capacity to settle their commitments, resulting in growing
dynamics in terms of liabilities restructuring and debt refinancing operations.
ACTIVITY
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In terms of corporate acquisitions, reference should be made to the Cintra Aparcamientos LBO by a consortium
led by Emparque, S.A. which was mainly responsible for representing the deal in the Portuguese market with
CaixaBI as co-lead, having structured and organised the necessary finance of up to €400 million. This transac-
tion was a unique opportunity for a major Portuguese company in the sector to achieve a leading position on an
Iberian level, making A. Silva & Silva group the fourth largest operator in Europe.
Pursuant to the above reference should be made to CgD group’s participation in the following transactions:
farma APS (generis group) acquisition finance of €80 million + €7 million in support of Target’s current opera-
tions for a consortium led by Magnum capital;
Back-up line of credit for the current ratings on edP – energias de Portugal, S.a. (“EDP”) and EDP finance
BV (“EDP finance”) totalling €1.6 billion;
Long term finance of USD 114 million for efacec’s construction of an electrical power transformer manufacturing
plant in georgia USA;
Acquisition finance for Cintra Aparcamientos to emparque including part refinancing of the liabilities of several
Emparque and Cintra group companies, totalling €400 million;
Long term financing of €809 million for the alfonso gallardo group;
cinac: financing the expansion of a cement manufacturing plant in Nacala.
The energy sector accounts for around 37% of total operations, around 75% of which structured in Portugal.
ACTIVITy
Magnum Capital – generis´s acquisition
EDP – Back up facility
Efacec´s electrical power transformer
manufacturing plant (georgia)
Cintra Aparcamientos´s acquisition
fundiestamo
galp Energia
Alfonso gallardo (Refinancing)
Cinac
total
87,000,000
1,600,000,000
84,475,732
400,342,692
40,000,000
10,000,000
809,118,000
13,793,103
3,044,729,527
aMount of deBt (B)
POR
POR
POR
POR
POR
POR
SPA
MOZ
country
17,400,000
100,000,000
42,237,866
94,097,667
40,000,000
10,000,000
108,618,000
13,793,103
426,146,636
cgd grouP inVeStMent (B)
January
March
March
July
December
December
December
December
agreeMent date
Industrial
Energy
Energy
Car Parks
Real estate
Energy
Steel
Industrial
Sector
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The monitoring operations on CaixaBI’s credit portfolio and operations originated for CGD Group by its investment
bank have been decisive factors for the adequacy of processes to corporate situations and the market environment,
particularly as regards the positioning of banks.
MeDIuM SIzeD CoMpanIeS
CaixaBI, in exploiting CGD’s branch network, has set its sights on medium sized companies. It particularly focused
on the production and development of financial advisory mandates secured by it and the organisation of banking
syndicates.
a differentiating factor has been achieved by the sale of the PME Multivantagem product with highly significant
growth levels over the last few years, comprising a portfolio of around €430 million, at the end of 2009.
FInanCInG anD STruCTurInG area
TraDInG porTFolIo
2009 witnessed a significant increase in primary market issues with overall growth of 29%. particularly good
performance was achieved by the non-financial sector with the highest ever annual figure in total corporate
investment grade issues of $1,200 billion having been recorded.
aCTIVITY
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The high demand for this category of assets was reflected in the unprecedented narrowing of spreads both in
terms of amplitude and speed. Information on the evolution of spreads, (Itraxx Europe generic) since the start of
the year is provided in the following graph. This index began the year at 177 bp, exceeded 200 bp in March and
ended the year at 80 bp.
ACTIVITy
gloBal corPorate inVeStMent grade deBt (eXcluding financialS)
Source: Thomson Reuters
PROCEEDS ($BIL) NUMBER Of ISSUES
$1.400
$1.200
$1.000
$800
$600
$400
$200
$0
3.000
2.500
2.000
1.500
1.000
500
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
eVolution doS itraXX euroPe generic in 2009
Source: Bloomberg
01-01-09 20-02-09 11-04-09 31-05-09 20-07-09 08-09-09 28-10-09 17-12-09
225
200
175
150
125
100
75
50
25
0
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TRADINg PORTfOLIO RESULTS
The portfolio closed 2009 with a much higher than expected level of relative and total performance. In relative
performance terms, portfolio management, based on active management with high turnover levels outperformed
the iTraxx by 5% and the iBoxx by 2.4%. In addition to income from financial operations reference should be
made to net interest income, which also exceeded all expectations, benefiting from historically high spreads and
yield curve inclination.
Information on the trading portfolio, in 2009, is given in the following table:
ACTIVITy
PerforMance of trading Portfolio VS itraXX Main VS iBoXX
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
01-0
1-09
16-0
1-09
31-0
1-09
15-0
2-09
02-0
3-09
17-0
3-09
01-0
4-09
16-0
4-09
01-0
5-09
16-0
5-09
31-0
5-09
15-0
6-09
30-0
6-09
15-0
7-09
30-0
7-09
14-0
8-09
29-0
8-09
13-0
9-09
28-0
9-09
13-1
0-09
28-1
0-09
12-1
1-09
27-1
1-09
12-1
2-09
27-1
2-09
iBOXX PORTfOLIO CaixaBI CREDIT PORTfOLIO
iTRAXX MAIN
PerforMance of trading Portfolio
Portfolio rotation
RoE
Margin %
Performance relative to (iTraxx)
Performance relative to (iBoxx)
14x
313%
3.09%
+4.34%
+0.81%
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SPECIALISED TREASURy SECURITIES TRADER AND LIQUIDITy PROVIDER ACTIVITIES
Public debt market-making activities in the secondary market were constrained by the continuation of the end of
2008 scenario of no liquidity and high volatility, forcing the IgCP to change market-makers’ compliance criteria
which are now assessed on a comparison basis. The broadening of spreads to historical highs has also added to
the difficulty in managing positions.
Starting third quarter, a certain return of liquidity (albeit insufficient) in the market was noted with the consequent
narrowing of bid / ask spreads, leading to a more conservative market-making strategy.
CaixaBI achieved one of the best performances in compliance terms, com-
ing 4 out of 15 Specialised treasury securities traders. In terms of market
share, CaixaBI ended the year 12th out of 27 participants, the same position
it achieved in the global ranking announced by IgCP.
Activity as a liquidity provider for several Euronext Lisbon listed securities such as Cofina, Orey Antunes, Reditus,
Altri, Inapa, Ibersol, Martifer and Soares da Costa, progressed at a good rate. This is a business area in which
CaixaBI is a pioneer and in which its leadership remains incontestable.
Euronext recognised the superlative nature of CaixaBI’s performance in this activity, in allocating its maximum “A”
rating on all securities and categories.
CORPORATE RISk MANAgEMENT ADVISORy SERVICES
2009 was a fruitful year in terms of the contracting and structuring of interest rate, foreign exchange, commodities
and equities hedge operations.
There was an increase in business volume with new customers and operations, in addition to a higher level of
restructuring of older operations with the bank having recording growth of around 23% in total amounts hedged.
BROkERAgE
There was marked growth in the equity segment of the capital market throughout 2009, particularly from mid
March as a correction to a part of last year’s downturns. The upturn was fuelled by government plans in the US,
ACTIVITy
annual coMPliance
MCR
MSPR
96%
4
caixaBi
MCR – Monthly Compliance RatioMSPR – Monthly Spread Performance Ranking (1 to 15)
2009
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Europe and other developed economies. The PSI20 was up 33.5% in 2009, the Euro Stoxx 50 appreciated by
21.1%, the IBEX35 by 29.8%, S&P500 by 23.5% and the Dow Jones Industrial by 18.8%. Brazil was one of the
major economies first showing signs of recovery, with the valorisation of his own capital market and the increase
of 82.7% of Bovespa in 2009.
A daily analysis of brokerage volumes shows a drastic reduction in domestic market liquidity during the year.
ANALySIS Of BROkERAgE ACTIVITIES
As already stated, value increases in the main stock market indices in 2009 (accompanied by the PSI20 which was
up 33.5%), were offset by a sharp fall in turnover on Euronext Lisbon last year in comparison to the same period
(down 42% when analysing secondary market spot share transactions – CMVM data).
CaixaBI’s brokerage operations repeated their positive performance in 2009 on Euronext Lisbon traded equities,
to the extent that the drop in brokerage volumes was less than in the rest of the market, as shown in the
following graph.
A real gain in market share by CaixaBI in terms of financial brokerage operations on securities traded on Euronext
Lisbon was once again recorded.
ACTIVITy
change in trading VoluMeS MarKet VS caixaBi (equitieS)
100%
80%
60%
40%
20%
0%
-20%
-40%
-60%
55%
11%
37%
35%58%
78%
-47%
-51%
-42%
-36%
2005 2006 2007 2008 2009 (1)
Source: CMVMPlease Note: (1) up to Novembro 2009.
CaixaBI MARkET
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In a negative economic environment for global trading volumes in the equities market (down 42%), a positive
reference should be made to the performance of CaixaBI’s Caixadirecta Invest internet platform with a 15%
increase in brokerage volumes, up to November 2009.
PRIMARy MARkET OPERATIONS
There were no IPOs or capital increases in the equities market, in Portugal, in 2009, except for the €1.2 billion
Banco Espírito Santo (BES) capital increase with CaixaBI as co-lead.
The bank accordingly focused its attention on improving relationships with institutional investors, intensifying
marketing operations with Portuguese and foreign companies involving domestic and international investors in
collaboration with CaixaBI’s research areas and other ESN members.
CaixaBI organised and participated in various roadshows in different European countries involving officers from
Altri, BES, Brisa, Cimpor, EDP Renováveis, galp Energia, Jerónimo Martins, Martifer, Mota-Engil, Portugal Telecom,
REN, Soares da Costa, Sonae, Sonae Indústria, Sumol + Compal and ZON Multimédia.
Together with other ESN partners, CaixaBI organised and participated in three international seminars with
Portuguese companies: one in London (May) for a presentation of European Mid Caps, attended by representatives
from Cimpor, Sonae and Zon Multimédia; a European companies seminar in New york (October), attended by
ACTIVITy
change in caixaBi’S trading VoluMeS (equitieS)
Source: CMVMPlease Note: (1) up to November 2009.
CAIXADIRECTA INVEST CaixaBI
150%
130%
110%
90%
70%
50%
30%
10%
-10%
-30%
-50%
102%
55%
75% 78%
141%
-23%
-47%
-36%
15%
2005 2006 2007 2008 2009 (1)
35%
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Sonae and REN and a seminar for companies in the Iberian renewable energies sector in Madrid (April), attended
by representatives from EDP Renováveis and Martifer.
Operations in the primary equities market particularly included CaixaBI’s participation in two operations in Brazil
(Santander Brazil IPO and the CCR – Brisa subsidiary capital increase) as co-manager, in line with CaixaBI’s
implementation of its current internationalisation process.
SyNDICATION AND SALES
2009 was a unique year in terms of the debt issues market. financial sector support measures permitted liquidity
sustainability and maintenance in markets, boosting the confidence of agents and investors alike.
with the creation of this opportunity, the vast majority of issuers entered the market with debt product issues.
This factor, allied with significant growth of sovereign issues, owning to governments’ needs to secure funding
for their respective economic and financial support plans, made 2009 an unusual year in terms of issues, both in
volume and number (Bloomberg).
Premiums on new issues which were significantly high at the start, fell during the course of the year, in line with
market recovery, notably in terms of liquidity and investor confidence.
The unusual differences in bid / offer spreads in secondary market trading at the start of the year recovered
significantly to more reasonable levels, albeit still far from pre-crisis levels.
The above is a description of the economic environment in which the bank operated and in which it participating
in a significant number of primary capital market issues of which special reference should be made to the following,
with joint lead manager status:
MetroPolitano de liSBoa e.P. – Placement of a state-backed Metro de lisboa bond issue for
€400,000,00 at a coupon rate of 5.75%, maturing on 4 february 2019.
CaixaBI, in conjunction with another three international banks, was the joint lead manager for this issue.
caiXa geral de dePÓSitoS – Placement of a cgd bond issue, for €1,250,000,000 at a coupon rate
of 5.125%, maturing on 19 february 2014.
CaixaBI, in conjunction with another four international banks, was the joint lead manager for this issue.
redeS energÉticaS nacionaiS SgPS – a tap issue on ren bonds for €300,000,000 at a coupon rate
of 6.375%, maturing on 10 december 2013.
CaixaBI, in conjunction with another three international banks, was joint lead manager for this issue.
ACTIVITy
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rede ferroViÁria nacional, e.P.e. – Placement of a state-backed refer bond issue, for €500,000,000
at a coupon rate of 5.875% maturing on 18 february 2019.
CaixaBI, in conjunction with another three international banks, was joint lead manager for the issue.
caiXa geral de dePÓSitoS – Placement of a cgd bond issue, for €1,000,000,000 at a coupon rate
of 4.375%, maturing on 13 May 2013.
O CaixaBI, in conjunction with another four international banks, was joint lead manager for this issue.
Portugal telecoM – Placement of a Portugal telecom bond issue, for €1,000,000,000 at a coupon
rate of 6%, maturing on 30 april 2013.
CaixaBI, in conjunction with another three international banks, was joint lead manager for this issue.
rePuBlic of Portugal – Placement of a Portuguese treasury bond issue for €3,250,000,000 at a
coupon rate of 3.60%, maturing on 15 october 2014.
CaixaBI, in conjunction with another four international banks, was joint lead manager for this issue.
Santander totta – Placement of a Santander totta bond issue for €1,000,000,000 at a coupon
rate of 3.75%, maturing on 12 June 2012.
CaixaBI, in conjunction with another four international banks, was joint lead manager for this issue.
electricidade de Portugal – Placement of an electricidade de Portugal, bond issue for €1,000,000,000
at a coupon rate of 4.75%, maturing on 26 September 2016.
CaixaBI, in conjunction with another five international banks, was joint lead manager for this issue.
ParPÚBlica – Placement of a Parpública bond issue for €800,000,000 at a coupon rate of 3.50%,
maturing on 8 July 2013.
CaixaBI, in conjunction with another five international banks, was joint lead manager for this issue.
caiXa geral de dePÓSitoS – Placement of a public sector cgd covered bond for €1,000,000,000 at
a coupon rate of 3.625%, maturing on 21 July 2014.
CaixaBI once again operating as a pioneer in the Portuguese market, placed the first public sector bond issue in
Portugal, operating as joint lead manager, in conjunction with another three international banks.
rede ferroViÁria nacional, e. P. e. – Placement of a state-backed refer bond issue for €500,000,000
at a coupon rate of 4.675%, maturing on 16 october 2024.
CaixaBI, in conjunction with another three international banks, was joint lead manager for this issue.
Portugal telecoM – Placement of a Portugal telecom bond issue, for €750,000,000,000 at a coupon
rate of 5%, maturing on 04 november 2019.
CaixaBI, in conjunction with another four international banks, was joint lead manager for the issue.
ACTIVITy
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CaixaBI was also active as co-lead lead manager / bookrunner for a €700 million, 4 year maturity issue for galp
and as the sole bookrunner in a state-backed €25 million, 3 year issue for Banco Invest. Both issues were part
syndicated in the market.
CaixaBI was also co-lead for the following issues:
TB 4.75% 14 June 2019 – €4 billion
hSBC 4.5% 30 April 2014 – €1.25 billion
BCP 5.625% 23 April 2014 – €1.0 billion
Banif 3.25% 8 May 2012 – €500 million
hSBC 3.75% 30 November 2016 – €1.25 billion
CgD performed a repos operation on two perpetual subordinated debt issues at a variable Upper Tier II rate in
September. CaixaBI operated as the dealer manager with Bank of America Merrill Lynch. The repurchase was for
two identical issues, one issued by CgD Paris and the other by CgD finance, Cayman branch.
The bank also issued a €50 million, 4 years variable rate private placement for REN – Redes Energéticas Nacionais,
SgPS, S.A..
COMMERCIAL PAPER
CaixaBI placed more than 445 commercial paper issues, in 2009, for more than €12,275 billion in which
it participated in and placed €5,126 billion in coordination and with the support of CgD’s Major Companies
structure.
VENTURE CAPITAL
BACkgROUND
In the context of 2009, as a crisis year, structural factors with a determining effect on the venture capital industry’s
limited presence in the domestic market remained in force.
The biggest constraint is on the supply side both as regards the shortage of basic high potential projects and the
most competitive companies’ reluctance to float.
ACTIVITy
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In such a small market, venture capital operations tend to be limited to domestic operators with poorly
diversified, essentially generalist, portfolios and difficulties with projects requiring specialised knowledge in sector
or technology terms.
The finance model for the economy therefore remains almost exclusively geared to banking brokerage operations,
with companies’ capacities to reinforce their shareholders’ equity being conditioned, in most cases to the financial
capacity of the base core of shareholders and operating income.
however, the challenges associated with a structural matrix of an economy undergoing profound change, with
more restrictive debt and capital markets and unable to provide liquidity, require a venture capital industry able to
meet emerging demand associated with the need for:
Endowing an increasing number of companies with the capacity to compete in a broader range of markets;
Leveraging the appearance and development of global business projects, in knowledge and applied technology
industries.
POSITION
Caixa geral de Depósitos defined a strategic priorities framework for the venture capital area at the end of 2008.
It was designed to fuel the development of the venture capital industry, consolidate its leading position in the
sector and provide companies and entrepreneurs with adequate capitalisation instruments to develop their
innovation, growth and internationalisation strategies.
CgD group has currently allocated more than €500 million to venture capital operations, in its twofold capacity
as an investor in funds under third party management, and, fundamentally as a direct operator via Caixa Capital.
Caixa Capital is responsible for investing in business projects led by qualified management teams in business areas
with high growth and appreciation potential, providing adequate returns on equity and contributing towards the
responsible and sustained creation of wealth and social wellbeing.
Caixa Capital, which, over the course of the decade had geared its venture capital operations to a well defined
segment of operations of a reasonable size, mainly development capital, generally associated with investment
banking, changed its approach last year, adopting broader objectives with the funds required for the different
target segments.
Caixa Capital manages five investment vehicles – Caixa Desenvolvimento (SgPS), fundo grupo CgD, fundo
Energias Renováveis, fundo Caixa Empreender + and fundo Caixa Mezzanine. Of the total amount of assets under
the direct management of Caixa Capital, the volume of investment, at end 2009, totalled €296 million, in 32
companies. Around 84.5% of the portfolio (€250 million), comprises investments made over the last three years.
ACTIVITy
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Information on the evolution of funds portfolio under the company’s management during the course of the year
is set out below:
formation of fCR Empreender – Caixa Capital, with a capital of €25 million, of which an amount of €7.5 million
has been paid up;
formation of fCR Mezzanine – Caixa Capital, with a capital of €100 million, of which an amount of €30
million has been paid up;
Capital increase of €164.7 million (from €174.6 million to €339.4 million) in fCR grupo CgD – Caixa Capital,
with €100 million of the said increase having been paid up.
Caixa Empreender + aims to remedy a shortage in the market supply of venture-seed capital and contribute
towards an equity chain which is transversal to the development cycle of recently formed businesses, mainly
concentrating on knowledge and applied technology industries.
Three specific intervention plans have been produced:
To stimulate the activities of young people with high potential and qualified business cadres for the development
of new economic realities (start-ups);
To broaden the horizons of business projects of certified merit (follow-on investments);
To provide resources for specialised investment vehicles managed by third parties or particularly suited to dealing
with entrepreneurs.
The Caixa Mezzanine solution aims to provide alternative forms of capitalisation to intermediate SME type companies.
It consists of a hybrid financial instrument, combining capital and debt characteristics and corresponding to an
intermediate threshold between these two structuring dimensions of corporate balance sheets.
Reference should also be made to the capital increase in fCR grupo CgD – Caixa Capital, under the reorganisation
process of the pre-existing fund’s portfolio subsidiaries for compliance with the new approach required under
the preceding year’s strategic reformulation, with the transfer of €60 million in Caixa Capital and Caixa
Desenvolvimento assets.
In conformity with this trajectory, changes to the governance model have been made, to provide the company
with the management and organisational conditions to enable it to expediently sustain the development of its
activity. CgD group’s venture capital area is concentrated in Caixa Capital which has been provided with a staff
complement of 18 for the purpose in question.
ACTIVITy
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ACTIVITy
Caixa Capital analysed the investment opportunities presented for eventual inclusion in its four venture capital
funds under management during the course of the year. The portfolio comprises 215 investment projects in 2009
of which 166 were received during the year and 49 brought forward from 2008. 154 projects were either put away
or rejected with another 45 currently being examined and 16 approvals.
In the sample in question and in sectoral terms reference should be made to the importance of information tech-
nologies (19% of projects analysed), particularly including the services (18%), industrial (16%) and energy (15%)
sectors. The most representative were seed / start-up investment projects.
The following is a list of transactions:
New investments:
Vila galé – Sociedade de Empreendimentos Turísticos, S.A.
Logoplaste Investimento, SgPS, S.A.
Mwh – gestão de Recursos Naturais, S.A.
Mesquita ETVIA – Construção de Vias de Comunicação, S.A.
Critical Links, S.A.
fundo ACTec (Seed Capital COTEC)
Additional investments:
A. Silva & Silva – Imobiliário e Serviços, S.A.
Eurofrozen – Indústria e Comércio de Produtos Alimentares, S.A.
Pinewells, S.A.
Smartwatt – Eficiência Energética e Microgeração, S.A.
Disposals:
felino – fundição e Construção Mecânicas, S.A.
hélios I – Energy Investments S.L. e hélios II – hyperion Energy Investments S.L.
MARL Energia – Central fotovoltaica, S.A.
Plataforma, SgPS, S.A.
Prado karton S.A.
Torre Confecções, S.A.
MIf – Manuel Inácio & filhos, SgPS, S.A.
Part disinvestments:
Vista Alegre Atlantis, SgPS, S.A.
grupo Visabeira, SgPS, S.A.
La Seda de Barcelona, S.A.
Sumol + Compal, S.A.
fCR AICEP Capital fIEP
ACTIVITy
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Seven operations were completed by year end which, in conjunction with additional investments comprised a
total of €72.3 million. Projects approved but which have yet to proceed entail potential investment of around
€42.4 million. Disinvestments comprised €36.7 million (at cost) and one relevant investment was transferred to
Caixa geral de Depósitos.
In respect of the development of two new business areas, the two referred to venture capital funds were formed
and the bases for their respective operationalisation defined, after the stabilising of the inherent market framework,
promotional actions and due consideration given to more than a hundred projects received in the meantime.
It should be noted that:
A network operating model has been set up for Caixa Empreender+, involving scientific and technological
institutions, public agencies (e.g. INPI), associative structures (e.g. Cotec), business angel networks (fNABA
and APBA), corporate ventures, venture capital and seed capital operators in addition to the use of an internet
based technological platform to guarantee basic interaction functionalities with developers. The whole of the
group’s offer in this segment will come under the Caixa Empreender brand umbrella;
In the case of Caixa Mezzanine a cycle of meetings with businessmen is in progress for the purpose of setting
up a reference portfolio to generate a demonstration effect, as endeavours are being geared to a corporate
stratum with high appreciation potential, with a particularly dynamic modernisation, growth and expansion
drive, with the possibility of involving business concentration processes, successions and MBOs.
MANAgEMENT CONTROL
CaixaBI has instituted a control culture which has had a positive effect on its results. Structural bodies’ contribu-
tion to the effectiveness of internal control, operating in areas making it possible to obtain and control the exist-
ing information, reliably and promptly, is described below:
Definition of commercial objectives in terms of non-quantified target markets, submitting all credit applications
to both CaixaBI and CgD credit councils;
Separation of functions, ensuring that a transaction is approved, executed, processed, recognised, continually
monitored and controlled by independent structures;
Daily control of financial information on transactions performed on the immediately preceding weekday;
Daily control of market risks with reports on the bank’s various positions at the preceding day’s close being sent
to the board of directors and other relevant organs. The market risk control system allows all positions between
support and business organs to be reconciled daily;
ACTIVITy
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65 ACTIVITy
Revaluation of derivatives products position, making it possible to assess exposure, assessing potential and
global risk by counterparty or customer;
Implementation of procedures and creation of systems to monitor and control operational risk, including pre-
vention to ensure business continuity.
CaixaBI, in subordinating its structure to the above referred to mechanisms, subscribes to internal control principles:
Compliance with established management objectives;
Economic, efficient use of resources;
Adequate control of various risks and custodian services;
Reliability and integrity of financial and management information;
Compliance with legislation, regulations and internal procedures.
CaixaBI’s organic structure has a Compliance Office and an Internal Audit Office to reinforce the various control
levels. Always from a viewpoint of contributing to consistently positive financial income levels and prudent liquidity
management, capital investment and risk control, it:
Assesses the bank’s financial position and assumption of risks at each point of time;
Assesses compliance with regulatory obligations, namely in terms of capital, solvency and liquidity requirements.
CaixaBI, in collaboration with CgD, pays special attention to operational risk.
The Bank of Portugal has approved the standard methodology for CgD group, including CaixaBI as its investment
bank, continuing to make significant investments in terms of resources, for the use and adaptation of the tools
used by the group for monitoring and managing operational risk.
The bank has also been fine-tuning its Business Continuity Plan, as an indispensable tool to ensure an adequate
comfort zone to deal with any adversities.
Every three years, the bank produces a Strategic Plan to systemise its strategy and quantify objectives. In turn,
the Activities and Budget Plan, effective in terms of both quantity and quality, annually defines measures for the
assessment of risk and quantifies them with the collaboration of each structural body.
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STRUCTURAL COSTS MANAgEMENT
Cost-to-income is the most significant indicator of balance between control of the bank’s structural costs and its
business structure. CaixaBI has consistently achieved better than benchmark values for the sector at less than 40%.
Once again, in 2009, the conjugation between structural costs control and significant growth in net operating
income, enabled the Bank to improve its productivity ratio to 23.4%.
hUMAN RESOURCES MANAgEMENT
human capital is considered to be of fundamental importance for the development of the bank’s operations.
CaixaBI processes staff retention and recruitment, to the highest ethical and technical standards. The bank is
constantly engaged in providing adequate training in its business and back office areas providing employees with
an opportunity to improve their levels of specialised training, taking financial area masters and other postgraduate
courses, higher banking management courses in addition to English and Spanish language courses and several
one-off seminars or training actions, both in Portugal and abroad.
The bank has a very young human structure, with 50% of its employees being under 39. CaixaBI’s annual intake
of young graduates is but one aspect of recognition of its social responsibility.
The bank adjusts its human resources structure to the needs defined in the Strategic Plan and market challenges,
ensuring a wholesome innovation capacity, to help achieve its objectives. The bank had 159 employees, at end
2009, 3 down over the end of 2008 figure of 162.
In terms of the bank’s consolidated activities, the following pie chart provides information on the distribution of
its 174 employees, 1 down over the end of the preceding year.
ACTIVITy
hr By age BracKetS
fROM 50 TO 60fROM 30 TO 34
UP TO 29 fROM 40 TO 49
fROM 35 TO 3929%
15%
20%
16%
2%
18%
OVER 60
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hr By oPerating areaS
BROkERAgE (17)RESEARCh (6)
OPERATINg AREAS (42) MANAgEMENT SUPPORT (26)
VENTURE CAPITAL (15)
9%
24%
15%
39%
3%10%
PRODUCT AND COMMERCIAL AREAS (68)
ACTIVITy
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OUTLOOk fOR 2010
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69 OUTLOOk fOR 2010
The last IMf report confirms that the world economy is in recovery, albeit particularly sustained by the strong
performance of the emerging powers. forecasts indicate worldwide contraction of 1.1% in 2009, followed by
growth of 3.1% in 2010. Eurozone gDP however, is expected to record a marginally positive growth of 0.3%
in 2010, with Portugal’s growth having been estimated at 0.4%. The IMf has also announced that recovery is
expected to be slow as the stabilisation of the situation in the financial system will lead to the gradual elimination
of public support with its consequent impact on economic activity.
The global recessionary framework during the course of 2010, is expected to dissipate, albeit very gradually, in
a context of the progressive regularising of global financial conditions and gradual recovery in world demand,
particularly in Portugal’s export markets.
More financial market stability is likely to convey greater confidence, with the possibility of the consolidation of
growth in the main world economies in second half 2010 and throughout 2011.
Economic growth is likely to be based on several factors:
growth of public investment;
Low levels of interest rates;
A strong euro;
A reduction of the unemployment rate starting mid 2010;
Restructuring of business and financial sector, to a large extent, already achieved.
Notwithstanding the high levels of uncertainty still existing over capital market evolution in 2010, any improve-
ment thereof, in Portugal, is expected to have a positive impact on the equity capital market over the coming
year, with the bank exploiting its leading position in this business area. The bank is also interested in continuing
to perform cross border operations as part of CaixaBI’s internationalisation process both in Brazil in partnership
with Banco Caixa geral Brazil and through its branch in Spain.
This framework is not expected to witness major changes in 2010 in comparison to the level of M&A activity
in 2009, with more consistency in terms of market recovery only likely in the second half of the year. In light of
growth prospects for the economy, in 2010, and the current instability of financial markets, the coming year is
expected to continue to post a modest level of M&A activity.
CaixaBI’s turnover in the secondary equity market, in 2010, is also expected to evolve positively.
In the structured asset finance area, normally characterised by long maturation periods for opportunities, CaixaBI
continued to adopt a proactive approach and explore and obtain in-depth knowledge of several opportunities
with customers in 2009, for the purpose of obtaining fresh mandates, several of which it expects to secure in 2010.
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The market is expected to record a period of trading activity consolidation, in 2010, although narrowing spreads,
such as in 2009, are not expected. There are, however, likely to be periods of volatility, deriving from uncertainties
over macroeconomic evolution and inflation.
we have therefore planned a mix between the contracting of new operations on account of any increases in
short / medium term rates and our customers’ respective expectations and the restructuring of operations which
have already been contracted, with the aim of eliminating complexity and volatility in customers’ debt portfolios.
To reinforce this highly profitable and counterparty risk reducing component, the bank is investing in new technological
support functionalities for the online assessment of structures placed with customers.
The bank is also furthering new contact fronts for the intermediation of risk between international derivative
structures players and its main domestic customers to increase the potential of this area’s highly attractive business
opportunities.
In line with these prospects, the bank is also fully aware of the series of risks which may have an impact on the
financial system next year:
Imbalance in the balance sheets of non-financial companies owing to excessive leverage levels, low returns and
significant financing restrictions;
higher than expected defaults in private consumption owing to higher unemployment;
growing concerns over public indebtedness and the sustainability of public finances, in addition to a reduction
in private investment;
Imbalance between the financial system and public accounts deriving from the fiscal and monetary policy
measures taken to support economic activity;
Reappearance of tensions and restrictions in the financial sector and vulnerability of recent recovery;
Instability of financial institutions which are over exposed to credit segments with a commercial profile and
finance to certain countries in central and eastern Europe which may require assistance;
Reversal of the recent recovery of financial markets if macroeconomic data fail to meet expectations.
Awareness of such risks, however, may well be a positive differentiation factor which CaixaBI believes it can exploit.
The venture capital context is likely to be more favourable to investment over the next few years, taking into
account the structural changes required for economic relaunch and a scenario in which access to alternative
sources of funding turn out to be a competitive advantage as an enabler of business projects.
OUTLOOk fOR 2010
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In such an environment and to leverage the capture of new investment opportunities making it possible to
improve the return on disposable funds, continuity will be given to linkage with other group business areas, i.e.
between CaixaBI and CgD’s commercial structures.
we will continue to concentrate on projects involving investments in business innovation, expansion and
development, including MBOs, in which operations involving the internationalisation of domestic companies will
also be incentivised.
we shall also continue to further more comprehensive objectives in line with strategic priorities, establishing an
offer consentaneous with the dynamics of entrepreneurialism and innovation, in addition to helping medium
sized companies in the challenges they face.
Participation in financial restructuring operations or operations whose resources are used to repay debts or for
compliance with other liabilities, including fiscal affairs, will continue not to be covered by our current investments
policy, with, this, year, Caixa group having contributed towards the creation of a fund expressly geared to the
said purposes.
Commitment to companies’ and project developers’ management capacities will always be one of our fundamental
decision-making tenets.
OUTLOOk fOR 2010
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ACkNOwLEDgEMENTS
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CaixaBI consolidated its investment banking leadership in Portugal in 2009, winning international prizes and
securing several distinctions. The board of directors recognises and wishes to express its gratitude for the confidence
placed in the bank, as a sine qua non in achieving its results.
The board of directors also wishes to express its gratitude to the supervisory authorities – Bank of Portugal and
Securities Market Commission – members of the shareholders’ meeting, audit board and statutory auditor for
their institutional services to the bank.
we also wish to record our gratitude for the permanent support of our shareholders and Caixa geral de Depósitos
group companies.
Last but not least, CaixaBI’s board of directors wishes to acknowledge the commitment and performance of its
employees during the course of last year.
ACkNOwLEDgEMENTS
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PROPOSAL fOR ThE APPROPRIATION Of NET INCOME
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The board of directors, considering the adequacy of the levels of shareholders’ equity needed to enable CaixaBI
to perform its activities, hereby submits the following proposal to the general meeting for the appropriation of a
total amount of €41,969,026 of net income for 2009:
Lisbon, 22 January 2010
Board of Directors
Jorge humberto Correia Tomé
José Joaquim Berberan e Santos Ramalho
Luís Lopes Laranjo
António Carlos Bastos Martins
gonçalo Vaz gago da Câmara de Medeiros Botelho
Jorge Telmo Maria freire Cardoso
Rui Manuel do Vale Jordão gonçalves Soares
José Pedro Cabral dos Santos
José Manuel Carreiras Carrilho
PROPOSAL fOR ThE APPROPRIATION Of NET INCOME
Legal reserve (10% of net income for year)
Other reserves
Dividends
e4,196,903
e12,747,123
e25,025,000
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QUALIfIED EQUITy INVESTORS
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gerbanca, SgPS, S.A.
68,348,445 shares
89.24% of voting rights
Companhia de Seguros fidelidade-Mundial, S.A.
8,007,635 shares
10.45% of voting rights
Please note
Treasury stock held at 31 December 2008 and 31 December 2009:
4,658,000 shares
(5.73% of share capital)
QUALIfIED EQUITy INVESTORS
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CORPORATE gOVERNANCE REPORT
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MISSION AND OBJECTIVES
CaixaBI’s principal mission is to exploit and promote the investment banking business platform between Spain,
Brazil, Lusophone Africa and Portugal, in its different business areas, providing customers with an international
dimension in any of the above mentioned geographies with an integrated financial service.
This mission is horizontal to different product areas. It encompasses corporate debt finance, equity capital markets,
financial advisory, project finance, structured finance, brokerage, corporate advisory and risk management, ven-
ture capital and research activities. CaixaBI’s financial services are provided independently of the geography of
its customers. In an increasingly integrated world, CaixaBI accompanies its customers wherever their business is
transacted and is particularly geared to cross border operations.
CaixaBI’s strategic objectives for the 2008-2010 three year period, include:
Confirmation of its status as the domestic benchmark investment bank and prime contributor to CgD group;
fine tuning priority with the Major Companies Area and development of synergies with other CgD group
businesses;
Reinforcement of its international presence, particularly in Spain, Brazil and the US, leveraging cross border
business;
Increasing the level of penetration in the Spanish market, in product areas;
Leveraging the bank’s Iberian syndication operations and progressively expanding them into the international
sphere, addressing CgD group’s needs in terms of primary and secondary markets;
greater exploitation of cross border investment banking opportunities in Angola, Mozambique, China and India;
Development of brokerage operations, including the online platform;
Promotion of derivatives operations for customers, developing product structuring operations for CgD group;
Boosting investment banking products in collaboration with the Rede de Empresas (corporate network);
gearing its human resources capacity and commitment to achieving its remaining objectives;
Continuing to promote development capital operations, broadening its investment policy to include the initial
stages of corporate life cycles, investing in companies and projects with high growth and appreciation potential;
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Incentivising an investment diversification policy to facilitate access to new markets and investment opportu-
nities, enabling CgD and CaixaBI to work together in the domain of current expansion / internationalisation
projects, notably in Spain and Lusophone countries.
REgULATIONS gOVERNINg CaixaBI’S OPERATIONS
CaixaBI, internally, is governed by its articles of association and a set of standards and procedures adapted to
European and domestic legislation on its activity and regulatory standards issued by supervisory authorities. The
following is the backbone of the internal standards implemented within CaixaBI.
CODES Of CONDUCT
As banking activities should be governed by strict principles of impartiality and transparency, to be complied with
by all employees, CaixaBI has introduced internal standards governing professional deontology, issuing directives
which have been compiled in a code of conduct of which all employees have been informed. The bank has also
issued an Anti-Money Laundering handbook.
internal regulations for financial Brokerage activities, defining standards and procedures to be complied
with in financial brokerage activities, prepared on the basis of the dispositions on this subject matter, namely the
Securities Code, with dispositions issued by the supervisory authorities (Bank of Portugal and Securities Market
Commission) having also been produced and issued. The regulations have also been distributed to and are binding
upon employees.
STANDARDS AND PROCEDURES SySTEM
CaixaBI has a Standards and Procedures System which has been published on its intranet and which is binding
upon all employees. It includes the most relevant aspects of the company’s operation and activities. The Standards
and Procedures Systems sets out the rules and competencies relating to production, management, support media,
disclosure and access to standards, notably organic structure, human resources policy, characteristics of products
and services and relevant procedures or information on the performance of its activity.
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ORgANISATION AND INTERNAL PROCEDURES fOR RISk CONTROL
The executive board has provided the bank with the required means to ensure the existence of information and
analysis of its balance sheet risks and on levels of operational risk cover.
The Planning, Risk Control and Organisation Division (DPO) liaises with group Divisions, centralising control of the
respective risks, i.e. Risk Management Division (DgR) and Consultancy and Organisation Division (DCO).
CaixaBI has spun off its compliance function into an office whose functions apply to the bank’s structure as a
whole, with the following fundamental aims:
Supervision and control of a series of procedures, rules and regulations designed to promote ethical standards
and organisational discipline;
Production of a report on the bank’s internal control system for the Bank of Portugal;
Production of a supervision and control report for the CMVM;
Production of compliance reports on the bank’s diverse structural bodies for the executive board.
Pursuant to its operations, the bank’s two major assets portfolios and acquisitions of services are managed by the
following procedures:
1. SECURITIES PORTfOLIO
The management of the bank’s securities portfolio is subordinated to the bank’s authorised risk levels and the
budget approved by the board of directors. Several basic objectives have also been defined, namely:
Achieving an adequate level of net interest income for the balance sheet of an investment bank;
Establishing a securities portfolio permitting a normal degree of rotation and adequate return in terms of capital gains;
The investment portfolio’s composition shall be limited to maximum and minimum exposure levels;
Safeguarding of a minimum liquidity level required of a financial institution.
The return required from the portfolio comprises a CgD group approved ROE level obtained on the daily valuation
thereof at market prices, net of financing costs.
In calculating the allocation of shareholders’ equity to operations, the necessary requirements for hedging credit,
market and operational risks are considered in accordance with current Bank of Portugal rules.
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Tradable instruments include bonds, shares, selected asset managers’ funds and their derivatives – futures, options
swaps and forwards traded with the treasury or forex positions in CgD’s trading room.
2. CREDIT PORTfOLIO
CaixaBI’s credit council (CCC) was created as part of the formal loop for the submission of credit applications.
It consists of executive board members and officers responsible for commercial divisions, in any capacity, involved
in extending credit.
The production of commercial proposals for submission to the credit council is the responsibility of structural
organs (business / product divisions), which should previously obtain the risk opinion of CgD’s Risk Management
Division.
Proposals are then submitted to the group’s credit councils to which, in accordance with CgD group credit policy,
CaixaBI’s competence in terms of credit approvals has been delegated.
3. ACQUISITION Of gOODS AND SERVICES
Market enquiries – three suppliers per product are normally consulted;
Selection of suppliers – based on a comparison of proposals submitted;
Expenditure – in accordance with the appropriate authorisations;
Contracts with goods suppliers / service providers – in writing or a formal contract.
List of suppliers representing more than 5% of external supplies and services:
Caixa geral de Depósitos, S.A.
finantech – Sistemas de Informação, Lda.
Reuters Europe, S.A. Portugal Branch
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ORgANISATION
STATUTORy BODIES
CaixaBI’s statutory bodies are elected at its general meeting, comprising shareholders with voting rights.
The bank’s statutory bodies, elected by ballot at its shareholders’ meeting, are as follows:
Shareholders’ Meeting – comprising a chairman and two secretaries;
Board of directors – comprising a minimum of three and maximum of fifteen members responsible for managing
the company’s corporate affairs. The board of directors shall choose its chairman and may, at its discretion,
appoint one or more deputy chairmen from among their number. The board of directors, is statutorily entitled
to appoint an executive Board;
audit Board – comprising three acting and one deputising members;
Statutory auditors – elected in accordance with lawfully defined competencies, with a deputising statutory
auditor;
remuneration committee – comprising representatives of the majority shareholder, elected at a shareholders’
meeting.
STRUCTURAL ORgANS
CaixaBI’s organisational chart is set out below:
CORPORATE gOVERNANCE REPORT
Board of Directors
Executive Board
Compliance Office
Internal Audit
Corporate Equity finance
Division
PrimaryEquities Market
Division
CorporateDebt finance
Division
Projectand Structured finance Division
financeand Structuring
Division
financialBrokerage Division
Planning, Risk Control and Organisation
Division
Operations Division
Accounts Division
InformationSystemsDivision
Syndicationand Sales
Medium Sized Companies
Division
ResearchOffice
Legal Affairs Office
human and Administrative
Resources
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RESPONSIBILITIES
The board of directors delegates the authority to manage the company’s day-to-day affairs to the executive board
giving it (without prejudice to the faculty of taking upon itself any of the respective competencies) the authority
necessary to make decisions on all issues related to the bank’s performance of its activity, with the exception of
those issues which cannot be delegated under no. 4 of article 407 of the Commercial Companies Code.
The board of directors meets whenever called by its chairman and at least once every three months.
Resolutions are taken by an absolute majority of the members present or represented with the chairman, deputy
chairman or respective deputy having the casting vote.
Board of directors’ resolutions are only valid when more than half of its members are present or represented.
CAIXA – BANCO DE INVESTIMENTO, S.A. EQUITy INVESTMENTS
The bank’s corporate structure comprises adequate investments to provide for its business segmentation while
enabling it to leverage CgD group’s market intervention capacity, through its constant provision of quality, value
added services to its predominantly large and medium sized corporate customers. Information on CaixaBI’s equity
investments is set out below:
Caixa Capital (wholly owned subsidiary) – operating in the venture capital market and managing three funds;
Caixa Desenvolvimento SgPS (wholly owned subsidiary) – venture capital market operator specialising in managing
equity investments with high growth potential.
CORPORATE gOVERNANCE REPORT
Caixa Desenvolvimento (100%)
Caixa Capital(100%)
CaixaBI Espanha(Branch)
SfE(Madeira)
Caixa – Banco de Investimento
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85
USE Of NEw TEChNOLOgIES fOR INfORMATION DISCLOSURE
CaixaBI provides a considerable amount of information on its website at: www.caixabi.pt.
Our aim is to provide more and better information on the bank and relevant, up-to-date information to customers,
analysts and the general public.
In addition to the possibility of consulting information on the bank and its respective activity, the bank’s research
area provides access to historical and current information of relevance to investors.
ShARE CAPITAL AND DIVIDENDS POLICy
The bank’s share capital consists of eighty one million two hundred and fifty thousand subscribed and paid up
shares with a nominal value of one euro each.
Shares may be nominative or bearer, registered or not and are reciprocally convertible.
In share capital increases paid up in cash, shareholders will be given preference rights in subscribing for new
shares in proportion to those they already hold unless otherwise decided by the shareholders’ meeting in
conformity with lawfully imposed constraints.
The board of directors may increase the bank’s share capital on one or more occasions in the form of cash
payments until its share capital totals a maximum amount of two hundred and fifty million euros.
Under the terms of CaixaBI’s articles of association, the shareholders’ meeting shall pass a resolution on the
appropriation of annual profits, without being subject to any obligatory annual minimum limit.
The shareholders’ meeting may decide to pay shareholders an advance of profits during the course of the year
as permitted by law.
EXERCISINg Of VOTINg RIghTS AND ShAREhOLDER REPRESENTATION
Article 10 of CaixaBI’s articles of association states that all shareholders with one thousand or more shares registered
in their name in the company’s share ledgers are entitled to be present at shareholders’ meetings, with each block
of one thousand shares being entitled to one vote in accordance with no. 2 of article 14.
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86
Shareholders with less than one thousand shares may form groups to make up this number and arrange to be
represented by any group member, to be indicated in a letter to the chairman of the shareholders’ meeting.
In the case of the joint ownership of shares, only one of the owners may participate in shareholders’ meetings,
and must be given a power of attorney by the others.
Shareholders may arrange to be represented at shareholders’ meetings by informing the chairman of the meeting,
by letter, prior to the meeting’s scheduled date.
Shareholders who are singular persons may arrange to be represented by other shareholders or other lawfully
entitled persons. Collective persons shall be represented by the person nominated for the purpose in question.
The chairman of the shareholders’ meeting shall call an extraordinary shareholders’ meeting whenever requested
by shareholders with the minimum number of shares required by law and who request the meeting in a letter
with a notarised signature providing precise information on the issues to be included on the agenda and justifying
the need for the meeting.
A shareholders’ meeting called at the request of shareholders shall only be held if applicants holding the minimum
number of shares required to call the meeting are present.
There are no limitations on voting rights, nor does any shareholder enjoy special rights and there is no knowledge
of any shareholders’ agreement.
MEMBERS Of ThE BOARD Of DIRECTORS AND INSPECTION BODIES
COMPOSITION
CaixaBI’s board of directors is made up as follows:
Chairman
Jorge humberto Correia Tomé
Deputy Chairman
José Joaquim Berberan e Santos Ramalho
Chairman of Executive Board
Luís Lopes Laranjo
CORPORATE gOVERNANCE REPORT
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87
Executive Directors
António Carlos Bastos Martins
gonçalo Vaz gago da Câmara de Medeiros Botelho
Jorge Telmo Maria freire Cardoso
Non-Executive Directors
Rui Manuel do Vale Jordão gonçalves Soares
José Pedro Cabral dos Santos
José Manuel Carreiras Carrilho
CaixaBI’s audit board is made up as follows:
Chairman
hernâni da Costa Loureiro
Board Members
António José Nascimento Ribeiro
João Sousa Martins
Deputy
fernando Manuel Simões Nunes Lourenço
CaixaBI’s Statutory auditor is:
Acting
Deloitte & Associados, SROC represented by:
João Carlos henriques gomes ferreira
Deputising
Carlos Luís Oliveira de Melo Loureiro
The remuneration committee is made up as follows:
gerbanca, SgPS, S.A., represented by:
henrique Pereira Melo
Vitor José Lilaia da Silva
REMUNERATION
As stipulated in article 23 of CaixaBI’s articles of association, the Remuneration Committee sets the remuneration
of board members and inspection bodies.
CORPORATE gOVERNANCE REPORT
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88
OffICES hELD By MEMBERS Of ThE BOARD Of DIRECTORS AND OThER STATUTORy BODIES
CORPORATE gOVERNANCE REPORT
corPorate officeS held Jorge humberto correia tomé
Caixa geral de Depósitos, S.A.
Caixa geral de Depósitos, S.A.
Caixa geral de Depósitos, S.A.
Caixa geral de Depósitos, S.A.
14-03-2008
14-04-2008
20-05-2009
20-03-2002
07-03-2002
22-07-2009
10-08-2007
10-01-2008
13-05-2009
30-04-2009
27-03-2009
Caixa – Banco de Investimento, S.A.
Credip – Instituição financeira de Crédito, S.A.
gerbanca, SgPS, S.A.
Trem – Aluguer de Material Circulante, ACE
Trem II – Aluguer de Material Circulante, ACE
Banco Caixa geral – Brasil, S.A.
Banco Comercial e de Investimentos, S.A.
Caixa geral de Depósitos, S.A.
Cimpor – Cimentos de Portugal, SgPS, S.A.
Parcaixa, SgPS, S.A.
Portugal Telecom, SgPS, S.A.
Statutory Body – Board of directors
Chairman
Chairman
Chairman
Chairman
Chairman
Deputy Chairman
Director
Director
Director
Director
Director
2008 / 2010
2007 / 2009
2009 / 2011
2000 / 2009
2001 / 2009
2009 / 2012
2007 / 2009
2008 / 2010
2009 / 2012
2008 / 2010
2009 / 2011
Caixa geral de Depósitos, S.A. 26-05-2008fomentinvest, SgPS, S.A.
Statutory Body – Supervision and Strategy Board
Member (Committee) 2006 / 2009
coMPany PoSition
corPorate officeS held José Joaquim Berberan e Santos ramalho
Caixa – Participações, SgPS, S.A.
14-03-2008
27-03-2009
20-05-2009
15-07-2008
Caixa – Banco de Investimento, S.A.
Companhia de Seguros fidelidade – Mundial, S.A.
gerbanca, SgPS, S.A.
Império Bonança – Companhia de Seguros, S.A.
Statutory Body – Board of directors
Deputy Chairman
Director
Director
Director
2008 / 2010
2009 / 2011
2009 / 2011
2008 / 2010
Caixa geral de Depósitos, S.A. 30-03-2007CgD Pensões – Sociedade gestora de fundos
de Pensões, S.A.
Statutory Body – Shareholders’ Meeting
Chairman 2007 / 2009
noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
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89 CORPORATE gOVERNANCE REPORT
Director
(Executive Board)
corPorate officeS held luís lopes laranjo
14-03-2008Caixa – Banco de Investimento, S.A.
Statutory Body – Board of directors
2008 / 2010
Director
(Executive Board)
corPorate officeS held antónio carlos Bastos Martins
14-03-2008Caixa – Banco de Investimento, S.A.
Statutory Body – Board of directors
2008 / 2010
corPorate officeS held gonçalo Vaz gago da câmara de Medeiros Botelho
14-03-2008
12-03-2004
22-07-2009
Caixa – Banco de Investimento, S.A.
Corporación Interamericana para el
financiamento de Infraestructura (CIfI) S.A.
Banco Caixa geral – Brasil, S.A.
Statutory Body – Board of directors
Director
(Executive Board)
Director
(Non-Executive)
Director
2008 / 2010
2009 / 2012
corPorate officeS held Jorge telmo Maria freire cardoso
14-03-2008
31-01-2008
Caixa – Banco de Investimento, S.A.
ZON – Serviço de Telecomunicações e Multimédia,
SgPS, S.A.
Statutory Body – Board of directors
Director
(Executive Board)
Director
(Non-Executive)
2008 / 2010
2007 / 2009
coMPany PoSition noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
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90 CORPORATE gOVERNANCE REPORT
corPorate officeS held José Pedro cabral dos Santos
14-03-2008Caixa – Banco de Investimento, S.A.
Statutory Body – Board of directors
Director
(Non-Executive)
2008 / 2010
coMPany PoSition noMinated By terM of office
date ofnoMination
corPorate officeS held rui Manuel do Vale Jordão gonçalves Soares
Caixa Capital – Sociedade de
Capital de Risco, S.A.
02-02-2006
14-03-2008
09-12-2008
16-04-2008
03-12-2008
03-12-2008
Banco Caixa geral, S.A.
Caixa – Banco de Investimento, S.A.
Inmobiliaria Caixa geral, S.L.
La Seda de Barcelona
helios I hyperion Energy Investments, S.L.
helios II hyperion Energy Investments, S.L.
Statutory Body – Board of directors
Director
(Executive Board)
Director
(Non-Executive)
Chairman
Director
Director
Director
2008 / 2009
2008 / 2010
2008 / 2009
2006 / 2010
coMPany PoSition noMinated By terM of office
date ofnoMination
noMinated By date of noMination
PoSition coMPany terM of office
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91 Corporate GovernanCe report
Corporate offiCes Held José Manuel Carreiras Carrilho
Caixa Capital – Soc. de Capital de risco, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
14-03-2008
12-03-2008
12-03-2008
14-03-2007
19-03-2009
19-03-2009
19-03-2009
19-03-2009
Caixa - Banco de Investimento, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
Caixa Desenvolvimento, SGpS, S.a.
a. Silva & Silva . Imobiliária e Serviços, S.a.
pp3e – projectos e participações em
empreendimentos de energia eléctrica, S.a.
visabeira Imobiliária, SGpS, S.a.
visabeira Indústria, SGpS, S.a.
visabeira participações Financeiras, SGpS, S.a.
visabeira turismo, SGpS, S.a.
statutory Body – Board of directors
Director
(non-executive)
Director
Director
Director
Director
Director
Director
Director
Director
2008 / 2010
2008 / 2010
2008 / 2010
2007 / 2010
2007 / 2009
2009
2009
2009
2009
statutory Body – shareholders’ Meeting
Caixa Capital – Soc. de Capital de risco, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
02-01-2007
20-03-2009
20-03-2009
resigned on
23-04-2009
16-03-2007
31-01-2007
Grupo pestana pousadas – Investimento turístico, S.a.
prado – Cartolinas da Lousã, S.a.
prado Karton – Companhia de Cartão, S.a.
vaa – vista alegre atlantis, SGpS, S.a.
Companhia de papel do prado, S.a.
eurofrozen – Ind. e Comércio de produtos
alimentares, S.a.
statutory Body – remuneration Committee
Member
Member
Member
Member
officer
officer
2007 / 2010
2009 / 2011
2009 / 2011
2007 / 2009
2007 / 2010
resigned on
25-03-2009
Sobreovento – energias alternativas, Lda.
statutory Body – Managing partner
Managing partner
Caixa Geral de Depósitos, S.a.
Caixa Capital – Soc. de Capital de risco, S.a.
Up to
21-10-2009
02-01-2007
SoDap – Soc. de Desenv. agricultura e pescas
SGpS, S.a.
Grupo pestana pousadas – Investimento turístico, S.a.
Chairman
Deputy Chairman 2007 / 2010
NoMiNated By date of NoMiNatioN
positioN CoMpaNy terM of offiCe
NoMiNated By date of NoMiNatioN
positioN CoMpaNy terM of offiCe
NoMiNated By date of NoMiNatioN
positioN CoMpaNy terM of offiCe
NoMiNated By date of NoMiNatioN
positioN CoMpaNy terM of offiCe
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92 CORPORATE gOVERNANCE REPORT
corPorate officeS held José lourenço Soares
Caixa geral de Depósitos, S.A.
31-03-2009
14-03-2008
23-05-2009
27-03-2009
07-02-2008
20-05-2009
17-06-2009
02-07-2009
27-03-2009
10-01-2008
Bandeirantes, SgPS, S.A.
Caixa – Banco de Investimento, S.A.
Caixa – Participações, SgPS, S.A.
Caixa Leasing e factoring – IfIC, S.A.
Caixa Seguros e Saúde, SgPS, S.A.
gerbanca, SgPS, S.A.
Parbanca, SgPS, S.A.
Partang, SgPS, S.A.
Companhia de Seguros fidelidade – Mundial, S.A.
Caixa geral de Depósitos, S.A.
Statutory Body – Shareholders’ Meeting
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Deputy Chairman
Secretary
2009 / 2011
2008 / 2010
2009 / 2011
2009 / 2011
2008 / 2010
2009 / 2011
2009 / 2011
2009 / 2011
2009 / 2011
2008 / 2010
12-11-2008BPN – Banco Português de Negócios, S.A.
Statutory Body – Board of directors
Director 2008 / 2011
corPorate officeS held José filipe de Sousa Meira
Companhia de Seguros
fidelidade – Mundial, S.A.
28-03-2008
28-03-2008
27-03-2009
26-03-2007
26-03-2007
28-03-2008
28-03-2008
09-03-2007
14-03-2008
24-07-2008
Cares – Companhia de Seguros, S.A.
Cares – Rh – Companhia de Assistência
e Representação de Seguros, S.A.
Cetra – Centro Técnico de Reparação Automóvel, S.A.
EPS – gestão de Sistemas de Saúde, S.A.
fidelidade – Mundial, Sociedade de gestão e
Investimento Imobiliário, S.A.
gEP – gestão de Peritagens Automóveis, S.A.
Império Bonança – Companhia de Seguros, S.A.
Multicare – Seguros de Saúde, S.A.
Caixa – Banco de Investimento, S.A.
Cares Multiassistance, S.A.
Statutory Body – Shareholders’ Meeting
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Secretary
Secretary
2008 / 2010
2008 / 2010
2009 / 2011
2007 / 2009
2007 / 2009
2008 / 2010
2008 / 2010
2007 / 2009
2008 / 2010
2008 / 2010
27-03-2009Via Directa – Companhia de Seguros, S.A.
Statutory Body – Board of directors
Director 2009 / 2011
coMPany PoSition noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
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93 CORPORATE gOVERNANCE REPORT
corPorate officeS held Salomão Jorge Barbosa ribeiro
Caixa geral de Depósitos, S.A.
gerbanca, SgPS, S.A.
07-02-2008
18-11-2009
14-04-2009
02-01-2007
07-02-2008
14-03-2008
17-07-2009
14-03-2008
29-05-2009
23-02-2006
20-05-2009
17-06-2009
07-02-2008
31-03-2009
31-03-2009
14-03-2008
07-02-2008
28-03-2008
28-03-2008
30-03-2007
31-03-2009
07-02-2008
22-01-2009
Caixa – gestão de Activos, SgPS, S.A.
Caixa – Imobiliário, S.A.
Caixanet – Telemática e Comunicações, S.A.
Caixatec – Tecnologias de Comunicação, S.A.
fundimo – Soc. gestora de fundos Inv. Imobiliário, S.A.
gestínsua – Aquis. Alien. Património Imobiliário
e Mobiliário, S.A.
Imocaixa – gestão Imobiliária, S.A.
Sanjimo – Sociedade Imobiliária, S.A.
Caixa – Participações, SgPS, S.A.
Caixaweb, SgPS, S.A. (is being liquidated)
gerbanca, SgPS, S.A.
Parbanca, SgPS, S.A.
Sogrupo IV – gestão de Imóveis, ACE
A Promotora, Sociedade de Capital de Risco, S.A.
Banco Comercial Atlântico, SARL
Caixa – Banco de Investimento, S.A.
Caixagest – Técnicas de gestão de fundos, S.A.
Cares – Companhia de Seguros, S.A.
Cares – Rh – Companhia de Assistência
e Representação de Seguros, S.A.
CgD Pensões – Sociedade gestora de fundos
de Pensões
garantia – Companhia de Seguros de Cabo Verde, SARL
Sogrupo – Serviços Administrativos, ACE
Sogrupo – Sistemas de Informação, ACE
Statutory Body – Shareholders’ Meeting
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Chairman
Deputy Chairman
Deputy Chairman
Deputy Chairman
Deputy Chairman
Deputy Chairman
Secretary
Secretary
Secretary
Secretary
Secretary
Secretary
Secretary
Secretary
Secretary
Secretary
2008 / 2010
2009 / 2011
2009 / 2011
2007 / 2009
2008 / 2010
2008 / 2011
2009 / 2011
2008 / 2011
2009 / 2011
2006 / 2009
2009 / 2011
2009 / 2011
2008 / 2010
2009 / 2011
2009 / 2011
2008 / 2010
2008 / 2010
2008 / 2010
2008 / 2010
2007 / 2009
2009 / 2011
2008 / 2010
2009 / 2011
31-03-2009
14-12-2006
Bandeirantes, SgPS, S.A.
wolfpart, SgPS, S.A.
Statutory Body – Board of directors
Director
Director
2009 / 2011
2006 / 2009
23-02-2006
05-05-2008
Caixaweb, SgPS, S.A. (is being liquidated)
Culturgest – gestão de Espaços Culturais, S.A.
(is being liquidated)
Statutory Body – liquidation committee
Officer
Officer
2006 / 2009
2008 / 2009
Banco Caixa geral Totta de Angola, S.A.
Statutory Body – audit Board
Officer (Deputising) 02-07-2009 2009 / 2011
coMPany PoSition noMinated By terM of office
date ofnoMination
coMPany PoSition noMinated By terM of office
date ofnoMination
noMinated By date of noMination
PoSition coMPany terM of office
noMinated By date of noMination
PoSition coMPany terM of office
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94 CORPORATE gOVERNANCE REPORT
corPorate officeS held Salomão Jorge Barbosa ribeiro (cont.)
Caixa - Participações, SgPS, S.A.
Caixa Seguros, SgPS, S.A.
Caixa geral de Depósitos, S.A.
Caixa geral de Depósitos, S.A.
04-10-2006
28-06-2007
07-02-2008
07-02-2008
Imocaixa – gestão Imobiliária, S.A.
Multicare – Seguros de Saúde, S.A.
Sogrupo – Serviços Administrativos, ACE
Sogrupo IV – gestão de Imóveis, ACE
Statutory Body – remuneration committee
Member
Member
Member
Member
2009 / 2011
2007 / 2009
2008 / 2010
2008 / 2009
corPorate officeS held hernâni da costa loureiro
14-03-2008
20-05-2009
Caixa – Banco de Investimento, S.A.
gerbanca, SgPS, S.A.
Real Vida Seguros, S.A.
Statutory Body – audit Board
Chairman
Chairman
Chairman
2008 / 2011
2009 / 2011
Lexpenta – Sociedade Imobiliária, Lda.
Statutory Body – Managing Partner
Managing Partner
10-10-2008
23-03-2007
23-12-2008
30-03-2007
10-08-2007
Banco Internacional de São Tomé e Príncipe, SARL
Esegur – Empresa de Segurança, S.A.
Parcaixa, SgPS, S.A.
CgD Pensões – Sociedade gestora de fundos
de Pensões, S.A.
global – Companhia de Seguros, S.A.
global Vida – Companhia de Seguros de Vida, S.A.
Banco Comercial e de Investimentos, S.A.
Statutory Body – Shareholders’ Meeting
Chairman
Chairman
Chairman
Deputy Chairman
Deputy Chairman
Deputy Chairman
Secretary
2008 / 2010
2007 / 2009
2008 / 2010
2007 / 2009
2007 / 2009
Caixa geral de Depósitos, S.A.
Caixa geral de Depósitos, S.A.
Caixa geral de Depósitos, S.A.
noMinated By date of noMination
PoSition coMPany terM of office
noMinated By date of noMination
PoSition coMPany terM of office
noMinated By date of noMination
PoSition coMPany terM of office
noMinated By date of noMination
PoSition coMPany terM of office
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95 CORPORATE gOVERNANCE REPORT
corPorate officeS held antónio José nascimento ribeiro
22-12-2008
02-07-2009
14-03-2008
20-05-2009
28-05-2009
Sumol + Compal, S.A.
Banco Caixa geral Totta de Angola, S.A.
Caixa – Banco de Investimento, S.A.
gerbanca, SgPS, S.A.
VAA – Vista Alegre Atlantis, SgPS, S.A.
Statutory Body – audit Board
Chairman
Deputy Chairman
Officer
Officer
Officer
2008 / 2010
2009 / 2011
2008 / 2010
2009 / 2011
2007 / 2009
corPorate officeS held João de Sousa Martins
14-03-2008
20-05-2009
Caixa – Banco de Investimento, S.A.
gerbanca, SgPS, S.A.
Statutory Body – audit Board
Officer
Officer
2008 / 2010
2009 / 2011
noMinated By date of noMination
PoSition coMPany terM of office
noMinated By date of noMination
PoSition coMPany terM of office
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SOCIAL RESPONSIBILITy AND SUSTAINABILITy REPORT
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97 SOCIAL RESPONSIBILITy AND SUSTAINABILITy REPORT
Social responsibility is understood and practised in Caixa – Banco de Investimento (CaixaBI) as being transversal
to its activity as a whole. The characteristics of a socially responsible organisation, as adopted by CaixaBI, are as
follows:
An involvement based on ethical business values;
A desire to achieve continuous progress;
Understanding and acceptance of the company’s interdependence with its environmental surrounds;
Long term vision based on responsibilities to future generations;
Principle of prudence as a decision-making rule;
Regular dialogue and consultation with all parties involved, including the most sensitive issues;
A desire to inform linked with transparency;
Capacity to accept liability for its decisions and responsibility for the direct and indirect consequences of its
activity.
The sustainable development principle governs the bank’s financial performance and is reflected in its concern to
promote business guidelines to safeguard correlated social and environmental effects. Issues such as the protection
of a clean environment, good natural resources and human resources management, linked with quality of life,
form part of the notion of sustainability put into effect by CaixaBI on an interdisciplinary basis.
CaixaBI was involved in several operations, in 2009, to which reference should be made on account of their di-
mension and contribution to sustainable environment:
Iberwind: refinancing of Magnum Capital’s windfarm portfolio by project bonds (a pioneering financing model
in Portugal);
Braga hospital: construction and clinical management of the new Braga hospital, led by Somague, José de Melo
group and Edifer, for a period of 30 years;
Loures hospital: construction and clinical management of the new Loures hospital, led by Mota-Engil and
Espírito Santo Saúde for a period of 30 years;
A 10% equity share in Mwh – gestão de Recursos Naturais, S.A., a company acting as an umbrella organisation
for a series of photovoltaic projects previously owned by fomentinvest Energia, New Energy fund, fINf – fomento,
Inovação e Energia and fCR grupo CgD – Caixa Capital. This required an investment of €1.3 million, divided
up between capital and partners’ loans of which €873,109 were paid up in 2009;
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98
Pinewells, S.A. – a share capital increase of €3 million in proportion to currently existing investments with fCR
Energias Renováveis making an additional investment of €600,000;
Smartwatt – Eficiência Energética e Microgeração, S.A. – Increase in partners’ loans to Smartwatt, under a
partners’ loans agreement of €50 thousand, entered into on 30 September 2008 and increasing the amount
of the investment to €100 thousand.
Reference should also be made to the following operations in progress at close 2010:
Todos-os-Santos hospital: financial advisory services to Teixeira Duarte consortium;
Vila franca hospital: potential financier, with financial close scheduled for April 2010.
ThE ThREE PS OR TRIPLE BOTTOM LINE
Agenda 21, the sustainability plan for the 21st century adopted at the Rio de Janeiro summit of 1992, established
three sustainable development areas – economic, environmental and social - also referred to as the triple bottom
line or three Ps – People, Planet, Profit.
Owing to society’s growing awareness of this issue, CaixaBI was one of the first institutions to stress the importance
of the three referred to areas for the community in which it operates: the economic axis represents wealth creation
for all through durable production and consumption; the ecological axis refers to resource conservation and
management; and the social axis reflects equity and the participation of all social groups.
CaixaBI considers that responsibility for each of the above dimensions is indissoluble from good business practice.
ECONOMIC
The economic dimension of sustainability is measured by organisations’ impacts on the economic conditions of
its interested parties and in the economic system at all levels, complying with a long term vision to embrace the
disciplines of the environment, social aspects and human resources.
This interdisciplinary nature of economic performance embraces all aspects of economic interactions which may
exist between an organisation and its interested parties, including the income traditionally recognised in financial
balance sheets. Such financial balance sheets make priority reference to indicators related with a company’s
profitability because they are geared to providing information to managers and shareholders.
SOCIAL RESPONSIBILITy AND SUSTAINABILITy REPORT
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99
Sustainable development indicators, however, cater for other priorities and should permit the implications of
corporate activity in terms of the well-being of its stakeholders – shareholders, customers, suppliers, employees,
government, banks and other social partners – to be perceived.
CaixaBI accordingly prepares its activity plans and endeavours to execute them in line with a sustainable development
strategy, reconciling profit ratios required by shareholders, with the need to energise the business environment
consisting of customers, therefore impacting the positive effects of its economic and financial health on the
community. The bank is, therefore, in search of new economic efficiency contexts, conscious of the fact that its
corporate mission also involves sustained value creation for its stakeholders, provided by its offer of products and
financial services of recognised quality, supported by its membership of Caixa geral de Depósitos group as the
biggest Portuguese financial group enjoying the best long term, domestic, financial system ratings - AA- from
fitch, Aa2 from Moody´s and A+ from Standard & Poor’s.
Subject to such behavioural parameters, CaixaBI has succeeded in recognising and exceeding its customers’
expectations, improving performance levels and quality, acting as a benchmark market operator owing to the
difference of its proposals which are based on ethical standards and responsibility, consolidating customers’ faith
in CaixaBI.
ENVIRONMENTAL
Although the financial sector is not an area of activity which entails the greatest environmental risks, its possible
intervention role must not be underestimated, in terms of internal operations - power consumption, water, paper,
consumables, fuel, recycling, materials re-use, waste reduction, supplier selection, are, inter alia, several of the
principal direct environmental impacts to be safeguarded.
In addition to such direct intervention, the financial sector’s role, however, is fundamental as from the time when
developers projects with an environmental impact apply for advisory services and / or finance.
In this context, CaixaBI’s activity, as an entity supplying credit to companies and investors in the financial market
has a indirect environmental impact.
The introduction of environmental criteria and assessment of environmental risks in terms of project analyses and
companies eligible for support, represent a fundamental contribution to environmental protection.
In procedures involving the securing and structuring of operations (either corporate or project finance) the bank
is concerned to assess the environmental impact of the activity of its corporate customers and reflect the analysis
of environmental effects in its corporate assessment and financing charges.
CaixaBI has made important investments in projects in the environmental area, namely wind farms, hydroelectric
power plants and other renewable energy sources, waste processing and basic sanitation, which projects have an
SOCIAL RESPONSIBILITy AND SUSTAINABILITy REPORT
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100
enormous environmental impact, involving complexity at all levels, including approvals and environmental moni-
toring. The bank, in conjunction with renewable energy developers, is committed to the successful achievement
of the objectives of government authorities in achieving 12% of installed electricity generation from renewable
energy sources (excluding large hydroelectric power plants) by the end of the decade.
SOCIAL
The social dimension is assessed by an analysis of an organisation’s impact on its interested parties – employees,
suppliers, consumers / customers, community, government and society in general – locally, nationally and globally.
A socially responsible company, therefore, encourages personal development through training and regularly
monitoring its employees’ health.
CaixaBI considers that it has immediate responsibility for providing its employees with a healthy working
environment – providing them with a medical plan to include their direct family members (spouses and
children) and monitoring the health of its employees in the workplace, arranging for respective annual check-ups –
and their professional career development in approving a multiplicity of training actions, ranging from attendance
at seminars to postgraduate courses and MBAs. The bank also provides its employees with a complementary
retirement plan.
In terms of the social dimension, CaixaBI publishes its Corporate governance Report, adopting a totally transpa-
rent attitude in its relations with all stakeholders. The bank has published internal regulations designed to ensure
the high ethical standards of its employees, in addition to preventative and inspection procedures. It has a
Compliance Office to verify compliance with standards and regulations in force and a code of conduct, binding
upon all employees, for fraud prevention. CaixaBI has also published an anti-money laundering handbook providing
for collaboration with the supervisory authorities.
As a CgD group member, the bank is also directly and indirectly involved in diverse sponsorships, particularly
involving the organisation of artistic events in the Culturgest auditorium and helping to promote national cultural
heritage as a basis for providing continuity to a diverse cultural heritage as a catalysing force in consolidating a
community identity.
SOCIAL RESPONSIBILITy AND SUSTAINABILITy REPORT
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fINANCIAL STATEMENTS
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102 fINANCIAL STATEMENTS
StateMent of conSolidated financial PoSition at 31 deceMBer 2009 and 2008 (amounts in euros)
2009
net aMount
2008
noteS
5
6
7
8
9
10
11
12
13
14
15
15
16
aMount Before iMPairMent and
aMortiSation (1)
190,010
2,082,998
24,401,981
727,408,724
225,920,811
936,919
916,569,377
22,723,790
4,429,245
657,900
19,394,538
54,982,041
1,999,698,334
iMPairMent and aMortiSation
(2)
37,938,559
9,317,030
3,979,309
17,956,869
69,191,767
net aMount
3=1-2
190,010
2,082,998
24,401,981
727,408,724
225,920,811
936,919
-
878,630,819
-
-
13,406,759
449,936
-
657,900
19,394,538
37,025,172
1,930,506,567
1,164,400
16,885,360
8,563,604
758,216,409
163,095,441
461,812
-
865,410,208
-
-
13,527,455
382,358
3,487,487
828,868
5,215,771
59,725,310
1,896,964,483
aSSetS
Cash and cash equivalents with central banks
Cash assets with other credit institutions
Loans and advances to credit institutions
Securities and derivatives portfolio
financial assets recognised at fair value through profit or loss
Available for sale financial assets
Positive revaluation of hedge derivatives
Investments to be held to maturity
Loans and advances to customers
Non-current assets held for sale
Investment properties
Other tangible assets
Intangible assets
Investments in associated companies
Current tax assets
Deferred tax assets
Other assets
total assets
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103
noteS
17
18
10
10
19
15
15
20
21
21
22
22
22
23
2009
1,108,928,963
139,124,974
-
300,272,162
1,703,334
-
14,129,854
18,412,651
1,112,807
-
88,248,790
1,671,933,536
81,250,000
-
-
(5,999,453)
171,472
133,207,396
45,606,639
-
4,336,978
258,573,031
1,930,506,567
2008
1,237,631,270
119,162,219
-
260,363,729
1,483,423
-
12,313,109
2,609,956
1,426,821
-
71,535,649
1,706,526,176
81,250,000
-
-
(5,999,453)
(45,791,987)
126,531,980
30,242,185
-
4,205,582
190,438,307
1,896,964,483
liaBilitieS
Credit institutions’ and central banks’ resources
Customer resources and other loans
Debt securities
financial liabilities recognised at fair value through profit or loss
Negative revaluation of hedge derivatives
Non-current liabilities held for sale
Provisions for other risks
Current tax liabilities
Deferred tax liabilities
Other subordinated liabilities
Other liabilities
total liabilities
caPital
Capital
Share premium
Other equity capital instruments
Treasury stock
fair value reserves
Other reserves and retained earnings
Income for period
Advance of dividends
Minority shareholders’ interests
total Shareholder’s equity
total liabilities and Shareholders’ equity
fINANCIAL STATEMENTS
StateMent of conSolidated financial PoSition at 31 deceMBer 2009 and 2008 (amounts in euros) cont.
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104 fINANCIAL STATEMENTS
conSolidated incoMe StateMentS for the yearS ended 31 deceMBer 2009 and 2008 (amounts in euros)
noteS
24
24
25
25
26
27
28
29
12 e 13
19
30
30
14
15
15
23
2009
255,319,980
(220,022,737)
60,896
35,358,139
93,733,830
(31,200,237)
17,654,478
4,783,565
120,329,775
(17,560,939)
(10,460,994)
(1,156,215)
(1,816,745)
(23,575,302)
(8,928,234)
-
56,831,345
(26,099,296)
15,005,986
(11,093,310)
45,738,036
-
(131,397)
45,606,639
76,592,000
0,60
2008
294,052,218
(269,439,897)
156,263
24,768,584
67,228,608
(7,109,912)
(4,444,442)
9,776,887
90,219,724
(16,248,555)
(9,719,534)
(1,037,817)
(9,245,120)
(5,779,162)
(3,746,612)
(2,093,292)
42,349,632
(12,969,546)
612,948
(12,356,599)
29,993,033
-
249,152
30,242,185
76,592,000
0,39
Interest and similar income
Interest and similar costs
Income from equity instruments
net interest income including income from equity instruments
Income from services and commissions
Costs of services and commissions
Income from financial operations
Other operating income
net operating income
Employee costs
Other administrative expenses
Depreciation and amortisation
Provisions net of recoveries and cancellations
Credit impairment net of reversals and recoveries
Impairment of other assets net of reversals
and recoveries
Income from associated companies
income before tax and minority shareholders’ interests
Income tax
Current
Deferret
consolidated income prior to minority shareholders’ interests
of which
Income from discontinued operations
Minority shareholders’ interests
net income for period
Shares in circulation
earnings per share
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105 fINANCIAL STATEMENTS
conSolidated caSh floW StateMentS for the yearS ended 31 deceMBer 2009 and 2008 (amounts in euros)
2009 2008
352,275,687
(223,645,871)
(28,550,819)
(10,125,633)
3,020,719
92,974,084
45,904,633
(17,957,652)
(15,796,981)
(40,248,578)
17,028,240
(11,070,339)
40,128,344
(128,846,630)
19,834,959
(12,814,802)
(81,698,129)
205,616
(1,208,969)
122,601
-
8,609,873
60,896
7,584,402
(23,566,769)
(23,566,769)
(15,776,751)
18,049,760
2,273,009
360,220,087
(271,460,991)
(25,234,636)
(12,664,511)
1,727,878
52,587,827
(133,979,479)
(103,831,606)
464,019
67,806,913
81,927,458
(87,612,694)
202,796,308
(158,417,787)
40,524,813
(63,053,097)
21,850,238
(13,174,628)
(3,475,953)
147,508
(700,000)
42,426,257
156,263
38,554,075
(14,140,062)
(14,140,062)
11,239,385
6,810,375
18,049,760
cash flows generated by operating activities
Interest and commissions received
Interest and commissions paid
Payments to employees and suppliers
Payment of income tax
Other income
operating income prior to changes in operating assets
(Increases) decreases in operating assets
financial assets recognised at fair value through profit or loss
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
Other assets
(Increases) decreases in operating liabilities
financial liabilities held for trading
Other credit institutions’ resources
Customer resources
Other liabilities
net cash from operating activities
cash flows generated by investing activities
Acquisition of tangible and intangible assets
Disposal of tangible and intangible assets
Investments in subsidiaries, associated companies and joint enterprises
Disinvestments in subsidiaries, associated companies and joint enterprises
Dividends received
Net cash from investing activities
cash flows generated by financing activities
Payment of dividends
net cash from financing activities
increse (decrease) net of cash and equivalents
Cash and equivalents at beginning of period
Cash and equivalents at end of period
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106 fINANCIAL STATEMENTS
StateMent of changeS to conSolidated ShareholderS’ equity for the yearS ended 31 deceMBer 2009 and 2008 (amounts in euros)
other reSerVeSand retained earningS
Balances at 31
december 2007
Distribution of profit
for 2007
Distribution of dividends
by the bank
Transfer to reserves
and retained earnings
Consolidated
comprehensive
income for 2008
Balances at 31
december 2008
Distribution of profit
for 2008
Distribution of dividends
by the bank
Transfer to reserves
and retained earnings
Other
Consolidated
comprehensive
income for 2008
Balances at 31
december 2009
81,250,000
-
-
-
81,250,000
-
-
-
-
81,250,000
caPital
(254,878)
-
-
(45,537,109)
(45,791,987)
-
-
-
45,963,459
171,472
fair Value
reSerVeS
(5,999,453)
-
-
-
(5,999,453)
-
-
-
-
(5,999,453)
treaSuryStocK
103,630,446
859,938
22,041,596
-
126,531,980
1,433,231
5,242,185
-
-
133,207,396
61,066,036
-
24,634,049
-
85,700,085
-
(1,008,287)
-
-
84,691,798
42,564,410
859,938
(2,592,453)
-
40,831,895
1,433,231
6,250,472
-
-
48,515,598
total reSerVeS retainedearningS
220,122,445
(14,140,062)
-
(15,544,076)
190,438,307
(23,566,769)
-
(1)
91,701,495
258,573,031
total
37,041,596
(15,000,000)
(22,041,596)
30,242,185
30,242,185
(25,000,000)
(5,242,185)
-
45,606,639
45,606,639
Profitfor Period
4,454,734
-
-
(249,152)
4,205,582
-
-
(1)
131,397
4,336,978
Minority intereStS
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107 fINANCIAL STATEMENTS
conSolidated coMPrehenSiVe incoMe StateMentS for the yearS ended 31 deceMBer 2009 and 2008 (amounts in euros)
2009
attriButaBleto the BanK’SShareholderS
45,606,639
17,442,954
(1,460,718)
30,962,089
(1,015,058)
34,192
-
45,963,459
91,570,098
attriButaBleto Minority
intereStS
131,397
-
-
-
-
-
-
-
131,397
total
45,738,036
17,442,954
(1,460,718)
30,962,089
(1,015,058)
34,192
-
45,963,459
91,701,495
2008
30,242,185
(49,428,141)
3,821,984
(3,574,790)
(22,777)
3,666,616
-
(45,537,108)
(15,294,923)
(249,152)
-
-
-
-
-
-
-
(249,152)
29,993,033
(49,428,141)
3,821,984
(3,574,790)
(22,777)
3,666,616
-
(45,537,108)
(15,544,075)
consolidated income
Exchange rate translation differences
Revaluation reserves for available for sale financial assets
Revaluation of available for sale financial assets
fiscal impact
Transfer to income statement on disposal
fiscal impact
Transfer to income statement for recognition of impairment in period
fiscal impact
unrecognised income in income statement
consolidated comprehensive income
consolidated income
Exchange rate translation differences
Revaluation reserves for available for sale financial assets
Revaluation of available for sale financial assets
fiscal impact
Transfer to income statement on disposal
fiscal impact
Transfer to income statement for recognition of impairment in period
fiscal impact
unrecognised income in income statement
consolidated comprehensive income
attriButaBleto the BanK’SShareholderS
attriButaBleto Minority
intereStS
total
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108 fINANCIAL STATEMENTS
StateMent of SeParate financial PoSition at 31 deceMBer 2009 and 2008 (amounts in euros)
2009 2008
4
5
6
6
8
9
10
7
11
12
13
14
14
15
189,010
2,073,210
676,908,100
29,718,234
171,383,953
22,309,842
916,569,377
-
-
936,919
-
-
22,462,004
4,427,798
75,575,724
657,900
18,313,138
28,540,757
1,970,065,966
-
-
-
-
-
-
24,709,087
-
-
-
-
-
9,155,159
3,977,862
-
-
-
4,315,936
42,158,044
noteS aMount Before ProViSionS,
iMPairMent and aMortiSation (1)
ProViSionS, iMPairMent and aMortiSation (2)
net aMount
3=1-2
189,010
2,073,210
676,908,100
29,718,234
171,383,953
22,309,842
891,860,290
-
-
936,919
-
-
13,306,844
449,936
75,575,724
657,900
18,313,138
24,224,821
1,927,907,922
1,163,400
16,840,315
653,341,750
59,655,602
101,814,896
7,863,177
899,724,067
-
-
461,812
-
-
13,449,090
382,358
149,859,969
657,900
4,663,208
28,301,814
1,938,179,358
aSSetS
Cash and cash equivalents with central banks
Cash assets with other credit institutions
financial assets held for trading
Other financial assets recognised at fair value
through profit or loss
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
Investments held to maturity
Assets with repurchase agreements
hedge derivatives
Non-current assets held for sale
Investment properties
Other tangible assets
Intangible assets
Investments in subsidiaries, associated
companies and joint enterprises
Current tax assets
Deferred tax assets
Other assets
total assets
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109 fINANCIAL STATEMENTS
StateMent of SeParate financial PoSition at 31 deceMBer 2009 and 2008 (amounts in euros) cont.
2008 2009 noteS
7
16
17
7
18
14
14
19
20
20
21
21
21
-
300,272,162
1,108,928,963
146,444,097
-
-
1,703,334
-
26,078,265
17,886,487
467,900
-
-
99,689,446
1,701,470,654
81,250,000
-
-
(5,999,453)
(2,265,827)
111,483,524
41,969,026
-
226,437,269
1,927,907,922
-
260,363,729
1,237,631,270
130,885,462
-
-
1,483,423
-
13,857,609
2,466,548
462,949
-
-
87,644,563
1,734,795,553
81,250,000
-
-
(5,999,453)
(6,917,034)
102,539,148
32,511,144
-
203,383,805
1,938,179,358
liaBilitieS
Central banks’ resources
financial liabilities held for trading
Other credit institutions’ resources
Customer resources and other loans
Debt securities
financial liabilities associated with transferred assets
hedge derivatives
Non-current liabilities held for sale
Provisions
Current tax liabilities
Deferred tax liabilities
Equity capital Instruments
Other subordinated liabilities
Other liabilities
total liabilities
ShareholderS’ equity
Capital
Share premiums
Other equity instruments
(Treasury stock)
Revaluation reserves
Other reserves and retained earnings
Net income for period
(Advance of dividends)
total Shareholders’ equity
total liabilities and Shareholders’ equity
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110 fINANCIAL STATEMENTS
SeParate caSh floW StateMentS for the yearS ended 31 deceMBer 2009 and 2008 (amounts in euros)
2009
254,768,509
(220,120,328)
34,648,181
60,896
89,433,399
(31,187,540)
10,030,213
3,762,122
441,970
16,828
1,836,734
109,042,803
(15,607,742)
(9,662,253)
(1,102,312)
(12,220,656)
(16,979,696)
(81,175)
(299,047)
53,089,922
(25,279,081)
14,158,184
41,969,026
-
41,969,026
76,592,000
0.55
2008
294,625,191
(269,657,984)
24,967,206
150,035
64,932,086
(7,098,704)
(6,986,614)
85,952
67,269
9,107
959,882
77,086,217
(15,310,984)
(8,602,307)
(995,033)
(1,372,919)
(6,309,684)
(57,488)
-
44,437,802
(12,644,762)
718,104
32,511,144
-
32,511,144
76,592,000
0.42
noteS
22
22
23
24
24
25
26
27
28
29
30
11 e 12
18
18
18
18
14
14
Interest and similar income
Interest and similar costs
net interest income
Income from equity instruments
Income from services and commissions
Costs of services and commissions
Income from assets and liabilities recognised at fair value through profit or loss (net)
Income from available for sale financial assets (net)
Income from foreign exchange revaluations (net)
Income from the disposal of other assets
Other operating income
net operating income
Employee costs
general administrative expenses
Depreciation and amortisation
Provisions net of recoveries and cancellations
Value adjustments associated with loans and advances to customers
and amounts receivable from other debtors (net of recoveries and cancellations)
Impairment of other assets net of reversals and recoveries
Impairment of other financial assets net of reversals and recoveries
income before taxation
Tax
Current
Deferred
net income
Of which
net income from discontinued operations
net income for period
Shares in circulation
earnings per share
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111 fINANCIAL STATEMENTS
SeParate caSh floW StateMentS for the yearS ended 31 deceMBer 2009 and 2008 (amounts in euros)
2009 2008
347,124,024
(223,440,201)
(26,107,368)
(9,859,141)
2,511,002
90,228,316
15,926,124
(61,155,728)
(14,404,981)
(12,748,578)
7,125,144
(65,258,019)
40,128,344
(128,846,630)
15,432,173
(17,193,234)
(90,479,347)
(65,509,050)
(1,131,285)
120,469
-
74,284,245
60,896
73,334,325
(23,566,769)
(23,566,769)
(15,741,495)
18,003,715
2,262,220
358,650,731
(271,481,774)
(23,152,837)
(12,406,735)
2,056,542
53,665,927
(144,161,001)
(75,944,236)
595,519
83,346,913
79,609,028
(56,553,777)
202,796,308
(158,417,787)
50,311,301
(49,582,928)
45,106,894
42,219,044
(3,468,007)
141,120
(13,700,000)
-
150,035
(16,876,852)
(14,140,062)
(14,140,062)
11,202,130
6,801,585
18,003,715
cash flows generated by operating activities
Interest and commissions received
Interest and commissions paid
Payments to employees and suppliers
Payment of income tax
Other income
operating income prior to changes in operating assets
(Increases) decreases in operating assets
financial assets recognised at fair value through profit or loss
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
Other assets
(Increases) decreases in operating liabilities
financial liabilities held for trading
Other credit institutions’ resources
Customer resources
Other liabilities
net cash from operating activities
cash flows generated by investing activities
Acquisitions of tangible and intangible assets
Disposals of tangible and intangible assets
Investments in subsidiaries, associated companies and joint enterprises
Disinvestments in subsidiaries, associated companies and joint enterprises
Dividends received
net cash from investing activities
cash flows generated by financing activities
Payment of dividends
net cash from financing activities
increase (decrease) net of cash and equivalents
Cash and equivalents at beginning of period
Cash and equivalents at end of period
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112 fINANCIAL STATEMENTS
StateMent of changeS to SeParate ShareholderS’ equity for the yearS ended 31 deceMBer 2009 and 2008 (amounts in euros)
other reSerVeSand retained earningS
caPital reVa-luation
reSerVeS
treaSuryStocK
total Profitfor
Period
Balances at 31
december 2007
Distribution of profit
for 2007
Distribution of dividends
Transfer to reserves
and retained earnings
Comprehensive income
for 2008
Balances at 31
december 2008
Distribution of profit
for 2008
Distribution of dividends
Transfer to reserves
and retained earnings
Comprehensive income
for 2008
Balances at 31
december 2009
noteS
81,250,000
-
-
-
81,250,000
-
-
-
81,250,000
3,620,388
-
-
(10,537,422)
(6,917,034)
-
-
4,651,207
(2,265,827)
(5,999,453)
-
-
-
(5,999,453)
-
-
-
(5,999,453)
21
8
21
8
total freereSerVe
retainedearningS
legalreSerVe
29,740,030
-
3,595,802
-
33,335,832
-
3,251,114
-
36,586,946
80,721,187
859,938
20,958,023
-
102,539,148
1,433,231
7,511,144
-
111,483,524
41,879,833
859,938
(111,459)
-
42,628,312
1,433,231
100,846
-
44,162,389
9,101,324
-
17,473,679
-
26,575,004
-
4,159,184
-
30,734,189
35,958,023
(15,000,000)
(20,958,023)
32,511,144
32,511,144
(25,000,000)
(7,511,144)
41,969,026
41,969,026
195,550,145
(14,140,062)
-
(21,973,722)
203,383,805
(23,566,769)
-
46,620,233
226,437,269
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113 fINANCIAL STATEMENTS
SeParate coMPrehenSiVe incoMe StateMent for the yearS ended 31 deceMBer 2009 and 2008 (amounts in euros)
2009 2008
41,969,026
-
10,889,105
(3,490,834)
(3,762,122)
1,015,058
4,651,207
46,620,233
32,511,144
-
(14,422,580)
3,799,206
85,952
-
(10,537,422)
21,973,722
Separate income
Exchange rate translation differences
Revaluation reserves for available for sale financial assets
Revaluation of available for sale financial assets
fiscal impact
Transfer to income statement on disposal
fiscal impact
unrecognised income in income statement
Separate comprehensive income
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NOTES TO ThE CONSOLIDATED STATEMENTS
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115 NOTES TO ThE CONSOLIDATED STATEMENTS
1. INTRODUCTORy NOTE
Caixa – Banco de Investimento, S.A. (“bank”) was formed by a public deed of 12 November 1987, having
absorbed all assets and liabilities of the Portuguese branch of Manufacturers hanover Trust Company, in
conformity with the terms of ministerial order no. 865-A/87 of 6 November, jointly issued by the Presidency of the
Council of Ministers and Ministry of finance.
The bank is Caixa geral de Depósitos group’s specialised investment banking business arm, which includes
activities such as fixed and variable corporate debt finance, equity, financial advisory, structured finance, project
finance, brokerage, research and venture capital. Its operations are performed by a branch office in Lisbon and
another in Porto, an offshore branch in Madeira and a branch in Spain.
The bank also has direct and indirect investments in the share capital of several companies in which it has majority
shareholdings. These companies comprise Caixa – Banco de Investimento (group).
As referred to in Note 21, the majority of the bank’s share capital is owned by Caixa geral de Depósitos group
company gerbanca, SgPS, S.A.
The consolidated financial statements at 31 December 2009 were approved by the board of directors on 22
January 2010.
The bank’s and its subsidiaries’ and associated companies’ financial statements at 31 December 2009 still require
the approval of their respective shareholders’ meetings. The board of directors considers, however, that the said
financial statements will be approved without significant alterations.
2. ACCOUNTINg POLICIES
2.1. PRESENTATION BASES
The consolidated financial statements at 31 December 2009 were prepared on the basis of the International
financial Reporting Standards (IfRS) as adopted in the European Union, in line with European Parliament and
Council Regulation (CE) 1606/2002 of 19 July and the dispositions of Decree Law 35/2005 of 17 february.
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116
2.2. CONSOLIDATION PRINCIPLES
The consolidated financial statements include the accounts of the bank and the entities directly and indirectly
controlled by the group (Note 4).
In terms of associated companies, “subsidiaries” are companies over whose current management the bank has
effective control with the aim of obtaining economic benefit from their operations. Control usually takes the
form of more than 50% of share capital or voting rights. In addition, as a result of the application of the IAS 27
Standard – “Consolidated and Separate financial Statements”, the group has included special purpose entities
or vehicles within its consolidation perimeter. These include venture capital funds managed by the group which is
exposed to most of the risks and enjoys most of the benefits associated with the respective activity.
Subsidiaries’ accounts were consolidated by the global integration method. Transactions and significant balances
between the consolidated companies have been eliminated. Consolidation adjustments are also made, when
applicable, with the aim of ensuring consistency in the application of the group’s accounting principles.
Third party investment in subsidiary companies has been recognised in “minority shareholders’ interests” in
shareholders’ equity.
Consolidated income derives from the net income of the bank and its subsidiaries, in proportion to their respective
effective equity investments, after consolidation adjustments, including the elimination of dividends received and
capital gains and losses generated between companies included in the consolidation perimeter.
2.3. COMBINATIONS Of BUSINESS ACTIVITIES AND gOODwILL
Acquisitions of subsidiaries are recognised according to the purchase method. The cost of the acquisitions comprises
the aggregate fair value of the assets delivered and liabilities incurred or assumed for achieving control over the
acquired entity plus the costs directly attributable to the operation. On the acquisition date, identifiable assets,
liabilities and contingent liabilities satisfying the recognition requirements of the IfRS 3 Standard – “Combinations
of business activities” are recognised at their respective fair value.
goodwill comprises the positive difference between a subsidiary’s cost price and the effective percentage
acquired by the group in terms of the fair value of its respective assets, liabilities and contingent liabilities. goodwill
is recognised as an asset and is not amortised. Impairment tests are, however, performed at least once a year.
Up to 01 January 2004, as permitted by the accounting policies defined by the Bank of Portugal, goodwill was
fully deducted form shareholders’ equity in the year of the acquisition of the subsidiaries. As permitted by the IfRS
1 Standard, the group did not make any alterations to this entry, for which the goodwill generated on operations
occurring up to 01 January 2004 continues to be recognised in reserves.
NOTES TO ThE CONSOLIDATED STATEMENTS
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117
2.4. INVESTMENTS IN ASSOCIATED COMPANIES
“Associated” companies are those over which the bank has a significant influence but over whose management
it does not enjoy effective control. Significant influence is considered to exist whenever the group has a direct or
indirect investment of 20% - 50% in a company’s share capital or voting rights.
Investments in associated companies are valued by the equity accounting method. According to this method,
investments are initially valued at their respective cost price and the value is subsequently adjusted on the basis
of the group’s effective percentage of changes in associated companies’ shareholders’ equity (including income).
If there are any materially relevant divergences, the shareholders’ equity used for the equity equivalence calculation
of associated companies is adjusted to reflect the use of the group’s accounting principles.
goodwill, comprising the positive difference between a subsidiary’s cost price and the effective percentage acquired
by the group in terms of the fair value of its respective assets, liabilities and contingent liabilities continues to be
recognised in the value of the investment whose total book value is subject to annual impairment tests.
Unrealised income on transactions with associated companies is eliminated in proportion to the group’s effective
percentage investment in the said entities.
2.5. TRANSLATION Of BALANCES AND TRANSACTIONS IN fOREIgN CURRENCy
The separate accounts of each group entity included in the consolidation are prepared in accordance with the
currency used in the economic context in which they operate (referred to as the “operating currency”). All group
companies, at 31 December 2009 and 2008, used the euro as their operating currency.
foreign currency transactions are recognised on the basis of the reference rates in force at the transaction date. At
each balance sheet date, monetary assets and liabilities denominated in foreign currency are translated into euros
on the basis of the foreign exchange rate in force. Non-monetary assets, recognised at fair value, are translated
on the basis of the exchange rate in force on the last valuation date. Non-monetary assets, recognised at their
historical cost, continue to be recognised at the original exchange rate.
Exchange rate differences determined upon exchange translation are recognised in income for the year, except for
differences originated by non-monetary financial instruments, such as shares, classified as available for sale and
recognised in a specific shareholders’ equity account heading until disposal.
NOTES TO ThE CONSOLIDATED STATEMENTS
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118
2.6. fINANCIAL INSTRUMENTS
a) fINANCIAL ASSETS
financial assets are recognised at fair value at the agreement date, plus the costs directly attributable to the transaction.
financial assets are initially recognised in one of the following categories defined in the IAS 39 Standard:
i) financial assets at fair value through profit or loss
This category includes:
financial assets held for trading, which essentially include the acquisition of securities with the objective of
realising gains on the basis of short term market price fluctuations. This category also includes financial derivative
instruments, excluding financial derivative instruments complying with hedge accounting requirements; and,
financial assets recognised at fair value through profit or loss.
The use of the “fair value option” implies the irrevocable recognition, in this category, of the financial instruments
at the time of initial recognition and is restricted to situations in which the application results in the production of
more relevant financial information, i.e.
a) If the application eliminates or significantly reduces an accounting mismatch that would otherwise occur as a
result of the inconsistent measurement of assets and liabilities or recognition of gains and losses;
b) groups of financial assets, financial liabilities or both which are managed and when the performance thereof
is assessed on a fair value basis, in accordance with formally documented risk and investment management
strategies; and when information on the group is distributed internally to management bodies;
c) It is also possible to classify financial instruments containing one or more embedded derivatives in this category,
unless:
The embedded derivatives do not significantly modify the cash flows which would, otherwise, be required
under the contract;
It is evident, with little or no analysis, that the implicit derivatives should not be separated out.
The group recognises the equity instruments relating to venture capital operations in this category whenever the
instruments are associated with derivatives, notably the right or contractual obligation to dispose of the subsidiary
companies under the terms of shareholders’ agreements entered into on the date upon which the equity investments
were made and the securities classifiable in sub-paragraph b) above.
NOTES TO ThE CONSOLIDATED STATEMENTS
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119
financial assets classified in this category are recognised at fair value whose gains and losses generated by their
subsequent valuation are recognised in the income statement in the “income from financial operations” account
heading. Interest is recognised in the appropriate “interest and similar income” account headings.
ii) Loans and accounts receivable
These are financial assets with fixed or determinable payments, not quoted on an active market and not included
in any of the other previously referred to financial asset categories. This category includes loans and advances to
the group’s customers, amounts receivable from other financial institutions and from the provision of services or
sale of assets.
These assets are initially recognised at fair value, less any commissions included in the effective rate, plus all incremental
costs directly attributable to the transaction. The assets are subsequently recognised in the balance sheet at their
amortised cost less impairment losses.
Interest is recognised on the basis of the effective rate method which enables the amortised cost to be calculated
and the interest split over the period of the operations. The effective rate is the rate that, being used to discount
the estimated future cash flows associated with the financial instrument, enables the current value to be matched
with the value of the financial instrument at the date of initial recognition.
iii) Available for sale financial assets
This category includes variable-income securities not classified as assets at fair value through profit or loss, including
stable financial investments and investments without associated options in the group’s venture capital area and
other financial instruments initially recognised herein and not classifiable in the other categories of the above
referred to IAS 39 Standard.
Available for sale financial assets are measured at fair value, with the exception of shareholders’ equity instruments
not quoted on an active market and whose fair value cannot be reliably measured, which continue to be recognised
at cost. Revaluation gains or losses are recognised directly in shareholders’ equity in the “fair value reserve”. At
the time of sale or if impairment is determined, the accumulated fair value changes are transferred to income or
costs for the year.
Interest on debt instruments classified in this category is determined on the basis of the effective tax method and
recognised in the income statement.
Dividends on equity capital instruments classified in this category are recognised as income in the income statement
when the group’s right to receive them has been established.
NOTES TO ThE CONSOLIDATED STATEMENTS
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120
The bank, on 01 July 2008, reclassified its fixed-income securities from the financial assets held for trading
category to the available for sales financial assets category, in conformity with the change to the IAS 39 Standard
approved on 13 October 2008 (Notes 8 and 9).
Reclassification of financial assets
with the entry into force of the change to the IAS 39 Standard on 13 October 2008, the bank was in a position
to reclassify several of its financial assets classified as financial assets held for trading or available for sale to other
financial assets categories. No reclassifications to financial assets categories at fair value through profit or loss,
are, however, permitted.
fair value
As referred to above, financial assets classified in financial assets categories recognised at fair value through profit
or loss and available for sale financial assets are recognised at their fair value.
The fair value of a financial instrument comprises the amount at which an asset or financial liability can be sold
or liquidated between independent, informed parties, interested in realising the transaction under normal market
conditions.
The fair value of financial assets is, for most assets, determined by a CgD group body which is independent from
the trading function, based on the following criteria:
Closing price at the balance sheet date, for instruments traded on active markets;
The following valuation methods and techniques are, inter alia, used for debt instruments not traded on active
markets (including unlisted securities or securities with low liquidity levels):
i) Bid prices published by financial information services such as Bloomberg and Reuters, including market prices
available on recent transactions;
ii) Reference bid prices obtained from financial institutions operating as market-makers;
iii) Internal valuation models based on market data used to define a price for the financial instrument, reflecting
market interest rates and volatility, in addition to liquidity and the credit risk associated with the instrument.
Unlisted shareholders’ equity instruments held as part of venture capital operations are valued on the basis of
the following criteria:
i) Prices charged by independent entities on materially relevant transactions during the last six months;
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ii) Multiples of comparable companies in terms of operating sector, dimension and profitability;
iii) Discounted cash flows;
iv) Settlement price comprising the subsidiary company’s net worth;
v) Cost price (only for investments made in the twelve months preceding the valuation).
If there is a right or contractual obligation to alienate the subsidiaries under the terms of shareholders’ agree-
ments entered into when the investments are made, the respective accounting valuation may not exceed the
current amount of the sales price.
A discount factor reflecting the securities’ lack of liquidity and / or counterparty credit risk in the agreements
entered into is, if justified, applied to the amounts obtained from the above referred to valuation methodologies.
Other unlisted shareholders’ equity instruments whose fair value cannot be reliably measured (e.g. owing to the
lack of recent transactions) continue to be recognised at cost, less any impairment losses.
b) fINANCIAL LIABILITIES
financial liabilities are recognised at the agreement date at their respective fair value, less the costs directly
attributable to the transaction. Liabilities are classified in the following categories:
i) financial liabilities held for trading
financial liabilities held for trading comprise the negative revaluation of financial derivative instruments recognised
at their fair value.
ii) Other financial liabilities
This category includes other credit institutions’ and customers’ resources and liabilities incurred on payments of
services or purchases of assets.
These financial liabilities are valued at their amortised cost.
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c) DERIVATIVES AND hEDgE ACCOUNTINg
The bank performs derivative operations as part of its activity to provide for its customers’ requirements and
reduce its exposure to foreign exchange, interest rate and price fluctuations.
financial derivative instruments are recognised at their fair value at the date of the agreement. They are also
recognised in off-balance sheet accounts at their respective notional value.
financial derivative instruments are subsequently measured at their respective fair value. fair value is assessed:
On the basis of prices obtained in active markets (e.g. futures trading in organised markets);
On the basis of models incorporating valuation techniques accepted in the market, including discounted cash
flows and options valuation models.
Embedded derivatives
financial instruments embedded in other financial instruments are separated from the base agreement and
processed autonomously under the IAS 39 Standard, whenever:
The embedded derivative’s economic characteristics and risks are not closely related with the base agreement
defined in the IAS 39 Standard; and
The full amount of the combined financial instrument is not recognised at fair value, with fair value changes
being reflected in the income statement.
hedge derivatives
These derivatives are designed to protect the group from exposure to a specific risk attached to its operations.
Classification as hedge derivatives and use of the hedge accounting concept, as described below, are subject to
compliance with the rules of the IAS 39 Standard.
The bank, at 31 December 2009 and 2008, only used hedges on the changes in the fair value of financial
instruments recognised in the balance sheet as “fair value hedges”.
The group prepares formal documentation, for all hedge operations, at the beginning of the operation, to include
the following aspects:
Risk and strategy management objectives associated with the realisation of the hedge operation, in accordance
with the hedge policies defined by the group;
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Description of hedged risk(s);
Identification and description of hedged and hedge financial instruments;
hedge operation effectiveness appraisal method and respective periodicity.
hedge effectiveness tests are periodically performed and documented, using a comparison between the change
in fair value of the hedge instrument and hedged item (part attributable to hedged risk). with the aim of enabling
the use of hedge accounting under IAS 39, the ratio should be between a range of 80%-125%. Prospective
effectiveness tests are also performed in order to demonstrate the hedges’ expected future effectiveness.
hedge derivatives are recognised at fair value, with the results being assessed daily and recognised in income and
costs for the year. If the hedge is seen to be effective, the bank will also recognise the change in fair value of the
hedged item, attributable to the hedged risk, in income for the year. The impact of such valuations is recognised
in the “income from financial operations” account headings. for derivatives, such as interest rate swaps, with an
associated interest component, the periodisation of interest for the period in progress and liquidated flows are
recognised in “interest and similar income” and “interest and similar costs” in the income statement.
Positive and negative revaluations of hedge derivatives are recognised in specific assets and liabilities account
headings.
Valuations of hedged items are recognised in the account headings in which such assets and liabilities are recognised.
Trading derivatives
Trading derivatives are all financial derivative instruments that are not associated with effective hedge operations
in accordance with the IAS 39 Standard, including:
Derivatives taken out to hedge assets or liabilities risks recognised at fair value through profit or loss, thus rendering
hedge accounting unnecessary;
Derivatives taken out to hedge risk which do not comprise effective cover under the IAS 39 Standard;
Derivatives taken out for trading purposes.
Trading derivatives are recognised at fair value, with the results being determined daily and recognised in income
and costs for the year. The impact of such valuations is recognised in “income from financial operations” account
headings. for derivatives, such as interest rate swaps, with an associated interest component, the periodisation
of interest for the period in progress and liquidated flows are recognised in “interest and similar income” and
“interest and similar costs” in the income statement.
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d) IMPAIRMENT Of fINANCIAL ASSETS
financial assets at amortised cost
The group periodically analyses the impairment of its financial assets recognised at amortised cost, notably loans
and advances to customers, loans and advances to credit institutions and other assets.
Signs of impairment are identified on an individual basis on financial assets with a significant level of exposure and
on a collective basis as regards like-for-like assets, whose debtor balances are not separately relevant.
The following events may comprise signs of impairment:
failure to comply with contractual clauses, i.e. arrears of interest or capital;
Debtor or debt issuing entities’ significant financial difficulties;
Existence of a strong probability of a declaration of bankruptcy by the debtor or debt issuing entity;
granting of facilities to a debtor in financial difficulties which would not be granted under normal circumstances;
historical records of collections suggesting that the nominal value will never be fully recovered;
Data indicating a measurable reduction of the estimated value of the future cash flows of a group of financial
assets since original recognition, although such a reduction cannot be identified in the group’s separate financial
assets.
whenever signs of impairment on separately analysed assets are identified, the eventual impairment loss
comprises the difference between the book value at the time of analysis and current value of projected future
cash flows receivable (recoverable value), discounted on the basis of the asset’s effective original interest rate.
Assets upon which specific analyses have not been performed have been included in a collective impairment
analysis, having been classified for this purpose into homogenous groups with similar risk characteristics.
Separately analysed assets on which no objective signs of impairment have been noted were also subject to
collective impairment analyses, as referred to in the preceding sub-paragraph.
Owing to the non-existence of a relevant track record in terms of the bank, impairment losses calculated on the
collective analysis were determined on the basis of Caixa geral de Depósitos group parameters for comparable
types of credit.
The amount of impairment determined is recognised in costs for the year and separately in the balance sheet as
a deduction from the amount of the respective credit.
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The group, whenever applicable, writes off unrecoverable credits from assets through its use of the respective
accumulated impairment with the board of directors’ approval. Eventual recoveries of credit written off from
assets are recognised as a deduction from the impairment losses balance recognised in the income statement.
Available for sale financial assets
As referred to in Note 2.6. a), available for sale financial assets are recognised at fair value, with fair value changes
being recognised in the “fair value reserve” in shareholders’ equity.
whenever any objective evidence of impairment exists, accumulated capital losses recognised in reserves, are
transferred to costs for the year in the form of impairment losses and recognised in the “impairment of other
assets, net of reversals and recoveries” heading.
In addition to the signs of impairment on financial assets recognised at amortised cost, IAS 39 also provides for
the following specific signs of impairment on equity instruments:
Information on significant changes having an adverse impact on the technological, market, economic or legal
environment in which the issuing entity operates, indicating that the cost of the investment may not be recovered;
A prolonged or significant decline in market value at below cost.
The bank, on each of its financial statement’s reference date performs an analysis of the existence of any impair-
ment losses on available for sale financial assets, considering, for the said purpose the nature and specific, indi-
vidual characteristics of the assets being valued. In addition to the results of the analysis, the events set out below
were considered to be objective signs of impairment on equity instruments:
Existence of potential capital losses of more than 50% of the respective cost price;
Situations in which the fair value of the equity instrument remains below its respective cost price for a period
of more than 24 months.
The existence of potential capital losses of more than 30% of the cost price, for more than 9 months, was also
considered to comprise objective signs of impairment.
Impairment losses on equity instruments cannot be reversed and any potential capital gains originated after the
recognition of impairment losses are, therefore, recognised in the “fair value reserve”. Impairment is always con-
sidered to exist if additional capital losses are assessed at a later stage and are recognised in income for the year.
Criteria identical to debt instruments are applied for the analysis of “Tier 1” securities.
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The group also periodically performs impairment analyses on financial assets recognised at cost, notably unlisted
equity instruments whose fair value cannot be reliably measured. The recoverable value, in this case, comprises
the best estimate of future flows receivable from the asset, discounted at a rate which adequately reflects the risk
associated with holding the asset.
The amount of the impairment loss is directly recognised in income for the year. Impairment losses on such assets
cannot be reversed.
2.7. NON-CURRENT ASSETS hELD fOR SALE AND gROUPS Of ASSETS AND LIABILITIES fOR DISPOSAL
In accordance with the IfRS 5 Standard – “non-current assets held for sale and discontinued operations”,
non-current assets, or groups of assets and liabilities for disposal are classified as being held for sale whenever
their book value is expected to be recovered from their sale and not their continued use. for an asset (or group of
assets and liabilities) to be classified in this account heading the following requirements must be met:
There should be a strong probability of the sale’s occurrence;
The asset should be immediately available for sale in its current condition;
The sale is expected to take place up to a year from the asset’s classification in the account heading.
Assets recognised in this account heading are valued at their cost price or fair value whichever the lower, less the
costs incurred on the sale.
2.8. OThER TANgIBLE ASSETS
Except for assets acquired up to 1998, these are recognised at cost, less depreciation and accumulated impairment
losses. The costs of repair, maintenance and other expenses associated with their use are recognised as a cost for
the year, in the “other administrative expenses” account heading.
The bank revalued its fixed assets in 1998, under Decree Law 31/98 of 11 february. As permitted under the IfRS
1 Standard, the book value, incorporating the effect of the referred to revaluation was considered as a cost in
the transition to the IfRS, as the proceeds, at the time in question, generally comprised cost, or amortised cost, in
accordance with the IfRS, adjusted to take alterations to price indices into account.
Depreciation is calculated and recognised as a cost for the year, on a systematic basis, during the asset’s estimated
useful life, comprising the period in which it is expected to be available for use, i.e.
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Land is not depreciated.
The works being carried out by the group on its headquarters building over the period 2008-2009 are being
depreciated over a period of ten years.
Analyses of evidence of tangible assets impairment are periodically performed in accordance with the IAS 36
Standard – “Assets impairment”. whenever the net book value of the tangible assets exceeds their recoverable
value, an impairment loss is recognised in the income statement for the period. Impairment losses can be reversed
and also have an impact on income for the period if there is an increase in the asset’s recoverable value in the
following periods.
The group periodically assesses the adequacy of the estimated useful life of its tangible assets.
2.9. fINANCIAL LEASES
Leasing operations are recognised as follows:
As lessee
Leased assets are recognised at fair value in assets and liabilities, in line with the processing of the respective
instalment payments.
financial lease instalments are split up in accordance with the respective financial schedule, under which liabilities
are reduced by the corresponding payment of principal. Interest paid is recognised as a financial cost.
NOTES TO ThE CONSOLIDATED STATEMENTS
Property
Equipment
furniture and materials
Transport material
Computer equipment
Interior installations
Security equipment
Plant and machinery
10 - 50
4 -10
4
3 - 4
3 - 10
4 - 10
5 - 10
yearS of uSeful life
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As lessor
Leased assets are recognised in the balance sheet as loans, repaid by capital instalments set out in the financial
agreements schedule. Interest included in the instalments is recognised as financial income.
2.10. INTANgIBLE ASSETS
This account heading essentially comprises the costs, development or preparation for use of software used for
the development of the group’s operations. Intangible assets are recognised at cost, less amortisation and
accumulated impairment losses.
Depreciation is recognised as a cost, on a systematic basis, throughout the assets’ estimated useful life for a
period of between 3 - 6 years.
Expenses on software maintenance are recognised as a cost for the year in which they are incurred.
2.11. INCOME TAX
All group companies are taxed separately, with companies headquartered in Portugal paying IRC (“Tax on the
Income of Collective Bodies”). The accounts of the bank’s subsidiaries are integrated with the accounts of the
registered office for calculating global income taxable under IRC, with the income generated by subsidiaries also
paying local tax in the countries / territories in which they are domiciled. Local tax is deductible from IRC payable on
global activities under the terms of article 85 of the respective tax code and double taxation agreements entered
into with Portugal.
The bank’s Madeira Offshore Branch, however, is exempt from IRC up until 31 December 2011 under article 33
of the Statute of fiscal Benefits. for the purposes of the application of this exemption, in accordance with the
dispositions of article 34 of the Statute of fiscal Benefits, at least 85% of the profit attributable to the entity’s
global activity should derive from operations outside the institutional scope of the Madeira free Zone.
Caixa Desenvolvimento, SgPS, S.A. (Caixa Desenvolvimento) is subject to the fiscal regime on holding companies.
Under this regime, profits paid to Caixa Desenvolvimento by its subsidiaries are totally exempt from IRC, provided
that the investments are retained for at least one year.
Caixa Desenvolvimento also applied the deferred taxation regime, established in the IRC Code, on capital gains
and losses realised in 1999 and 2000 on its exchange or sale of investments or shares. Based on the regime in
force on 01 January 2002, the capital gains made in the referred to years on investments disposed of by 31 December
2004, are being taxed over a ten year period, with the group having recognised the respective deferred tax liability.
NOTES TO ThE CONSOLIDATED STATEMENTS
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Under article 32 of the Statute of fiscal Benefits, the capital gains and losses made on Caixa Capital – Sociedade
de Capital de Risco, S.A. (Caixa Capital) and Caixa Desenvolvimento’s sale of equity investments, provided that
such investments are held for not less than one year, and the financial costs paid on the acquisition, are not taxable.
This regime does not apply to the capital gains made and financial costs paid when the equity investments have
been acquired (i) from entities with which special relationships exist, as defined in no. 4 of article 58 of the IRC
Code, (ii) to entities which are domiciled, headquartered or effectively managed in a territory with a more favourable
tax regime or (iii) to entities resident in Portuguese territory, subject to a special tax regime and when held for a
period of less than three years.
Under the terms of no. 4 of article 32 of the Statute of fiscal Benefits, Caixa Capital is also entitled to deduct from
its IRC taxable income and up to the amount thereof, as a fiscal benefit, an amount equal to the sum of its IRC
tax bills for the five years preceding the year of the respective benefit, provided that the amount of the deduction
is invested in companies with growth and appreciation potential. Amounts not deducted under the previously
referred to terms may be deducted at a later stage, subject to the same terms, from its tax bill for the following
five years. Under article 86 of the IRC Code the payment of tax may not be less than 60% of the amount payable
if Caixa capital had not enjoyed the above referred to tax benefit.
Income from venture capital funds are exempt from IRC under article 23 of the Statute of fiscal Benefits.
The total amount of tax on profit recognised in the income statement encompasses current and deferred tax.
Current tax is calculated on the basis of taxable profit for the year, which is different from accounting income
owing to adjustments to taxable profit resulting from costs or income which are not relevant for fiscal purposes
or only considered in other periods.
Deferred tax comprises the impact of temporary deductible or taxable differences between the balance sheet
value of assets and liabilities and their fiscal basis, used to assess taxable profit on tax recoverable or payable in
future periods.
Deferred tax liabilities are normally recognised for all temporary taxable differences, whereas deferred tax assets
are only recognised up to the amount by which the existence of future taxable profit, permitting the use of the
corresponding deductible tax differences or fiscal losses, is probable. Deferred taxes are not, however, recorded
in the following situations:
Temporary differences resulting from goodwill;
Temporary differences originating from the initial recognition of assets and liabilities in transactions which do
not affect accounting income or taxable profit;
Temporary differences resulting from non-distributed profit by subsidiaries and associated companies, to the
extent that the group is able to control their reversal and which is not likely to occur in the foreseeable future.
NOTES TO ThE CONSOLIDATED STATEMENTS
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The principal situations originating temporary differences in group terms comprise provisions and impairment not
accepted for fiscal purposes, revaluations of equity investments registered as available for sale financial assets,
deferred commissions, statutory revaluations of tangible assets, capital gains on the disposal of investments (see
above) and fiscal benefits granted to venture capital activities.
Deferred taxes are calculated on the basis of the tax rates expected to be in force on the date of reversal of the
temporary differences, comprising the approved or substantially approved rates, at the date of the balance sheet.
Tax on income (current or deferred) is recognised in income for the year, except for cases in which the originating
transactions have been recognised in other shareholders’ equity account headings (e.g. revaluations of available
for sale financial assets). The corresponding tax, in such cases, is also recognised as a charge to shareholder’s
equity and does not affect income for the year.
2.12. PROVISIONS AND CONTINgENT LIABILITIES
A provision is set up when there is a current (legal or constructive) obligation, resulting from past events, involving
the probable future expenditure of resources and when this may be reliably determined. The amount of the provision
comprises the best estimate of the amount to be paid to liquidate the liability at the date of the balance sheet.
when not probable, the future expenditure of resources is considered to be a contingent liability. Contingent
liabilities require no more than a disclosure procedure, unless the possibility of their payment is remote.
This account heading reflects the provisions required for liabilities incurred on guarantees and other off-balance
sheet liabilities and is determined on the basis of a risk assessment on the operations and respective customers. It
also includes provisions for fiscal, legal and other contingencies in addition to the depreciation of financial assets.
2.13. EMPLOyEE BENEfITS
The bank does not have any retirement pensions liabilities to its employees, who are covered by the national social
security regime, owing to the fact that it is not a signatory to the Collective wage Bargaining Agreement for the
Banking Sector.
The bank, however, at its own discretion, in 1987, set up the “fundo de Pensões Caixa-Banco de Investimento”
(fund) with the objective of providing its employees with additional old age, disability and survivors’ retirement
pensions, pursuant to the terms of the contract. The fund is managed by CgD Pensões – Sociedade gestora de
fundos de Pensões, S.A.
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The bank pays a percentage of 3.5% of each employee’s annual wages into the fund. Pension costs, in 2009 and
2008 were €393,986 and €405,169 respectively (Note 28).
The bank does not have any liabilities other than the above referred to contributions owing to the fact that this
is a defined contribution plan.
The other group companies do not have pensions liabilities.
Short term benefits, including productivity bonuses paid to employees, are recognised in “employee costs” for
the respective period, on an accrual basis.
2.14. COMMISSIONS
As referred to in Note 2.6, commissions received on credit operations and other financial instruments, i.e.
commissions charged for originating operations, are included in amortised costs and recognised as costs or
income over the period of the operation.
Commissions for services performed are usually recognised as income for the period of performance of the service
or as a lump sum if resulting from single acts.
The estimate of the commissions the bank expects to pay to other credit institutions for the syndicating of credit
operations in which it is involved as lead and in which CgD group’s initial exposure is higher than the defined
objective, is recognised as accrued costs as a charge to the “costs of services and commissions” account heading
for the year in which the bank recognises the income relating to the corresponding commission.
2.15. SECURITIES AND OThER ITEMS hELD UNDER CUSTODy
Securities and other items held under custody, notably customers’ securities, are recognised in off-balance sheet
account headings at their nominal value.
2.16. CASh AND EQUIVALENTS
for the purposes of the preparation of cash flow statements, the group considers “cash and equivalents” to be
the total amount of the “cash and cash equivalents with central banks” and “cash equivalents with other credit
institutions” account headings.
NOTES TO ThE CONSOLIDATED STATEMENTS
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2.17. CRITICAL ACCOUNTINg ESTIMATES AND MOST RELEVANT JUDgEMENTAL ASPECTS IN ThE APPLICATION Of ACCOUNTINg POLICIES
The group’s principal accounting policies are described in Note 2. for the application of the said policies, the
bank’s and group’s board of directors must produce estimates. The estimates with the greatest effect on the con-
solidated financial statements include those set out below.
Determination of impairment losses on loans and receivable
Impairment losses on loans and receivables are determined in accordance with the methodology defined in Note
2.6. d). Accordingly, the determination of impairment on separately analysed assets derives from the bank’s specific
valuation based on its specific knowledge of its customers’ status and the guarantees associated with the operations
in question.
Determination of impairment on collectively analysed assets was based on Caixa geral de Depósitos group
parameters for comparable types of credit.
The bank considers that impairment determined on the basis of this methodology permits the prudent recognition
of the risk associated with its credit portfolio, taking into account the rules defined in the IAS 39 Standard.
Valuation of financial instruments not traded in active markets
In accordance with the IAS 39 Standard, the group values all financial instruments at fair value, except for those
recognised at amortised cost. The valuation models and techniques described in Note 2.6. a) are used to value
financial instruments not traded on liquid markets, including equity instruments allocated to venture capital
operations. The valuations obtained comprise the best estimate of the fair value of the referred to instruments,
at the date of the balance sheet. The determining of fair value on equity instruments allocated to venture capital
operations, may, however, be subjective.
As referred to in Note 2.6.a), to guarantee an adequate separation between functions, the valuation of most such
financial instruments, except for equity instruments allocated to venture capital operations, is determined by a
body that is independent from the trading function.
A summary of the sources used by the group to determine the fair value on financial instruments is provided in
Note 32 – Disclosures on financial instruments, in the “fair value” section.
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Determination of impermaint losses on available for sale financial assets
As described in Note 2.6. d), capital losses deriving from the valuation of such assets are recognised as a charge
to the fair value reserve. whenever objective evidence of impairment exists, the accumulated capital losses
recognised in the fair value reserve should be transferred to costs for the year.
for equity instruments, including those allocated to venture capital, determination of the existence of impairment
losses may be subjective. The group determines whether or not impairment exists on such assets through a specific
analysis at each balance sheet date, taking into consideration the definitions provided in the IAS 39 Standard (see
Note 2.6. d)). As a general criterion, impairment is always determined when it is considered, that, owing to the
size of the capital loss determined, the full recovery of the amount invested by the group is highly improbable.
In the case of debt instruments classified in this category, including “Tier I” classified as equity instruments, the
capital losses are transferred from the fair value reserve to income, whenever there is any indication of the possible
future occurrence of failure to comply with contractually agreed cash flows, notably on account of financial
difficulties, defaults on other financial liabilities, or a significant deterioration in the issuing entity’s rating.
Determination of tax on profit
Tax on profits (current and deferred) is assessed by group companies on the basis of the rules defined by the current
fiscal framework. In several cases, however, fiscal legislation may not be sufficiently clear and objective and may
give rise to different interpretations. The amounts recognised in such cases represent the best understanding of
the responsible bank bodies and subsidiaries on the correctness of the operations although this may be queried
by the fiscal authorities.
2.18. ADOPTINg Of NEw STANDARDS (IAS / IfRS) OR REVISION Of ALREADy ISSUED STANDARDS
The following standards, interpretations, amendments and revisions endorsed by the European Union and
mandatory for economic years beginning on or after 1 January 2009, were adopted for the first time, in the year
ended 31 December 2009:
NOTES TO ThE CONSOLIDATED STATEMENTS
IfRS 1/IAS 27 – Amendments (Cost of
an investment in a subsidiary, jointly
controlled entity or an associate)
These amendments deal with the measurement of the cost of investments
in subsidiaries, jointly controlled entities and associates in the first time
adoption of IfRS and recognition of dividend income from subsidiaries, in
the parent company’s separate financial statements.
effectiVe on or after
Standard / interPretation
1-Jan-09
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The effect of the adoption of the above referred to new standards, interpretations, amendments and revisions on
the group’s financial statements at 31 December 2009, was not significant except for the following situations:
“IfRS 8 – Operating Segments”. This standard came into force on 1 January 2009 for all entities having issued
securities (bonds or shares) admitted to listing in public markets or which have applied for such securities to be
listed in public markets. Notwithstanding the fact that it was not part of the defined scope, the group opted to
make its disclosures in accordance with the standard’s requirements. IfRS 8 requires the group to report quanti-
tative and qualitative information on the reported segments which comprise operating segments or aggregates
thereof. Operating segments comprise components of an activity on which the group has autonomous financial
information and which is analysed by the group’s decision-making bodies when deciding what resources to
allocate and performance measurement.
NOTES TO ThE CONSOLIDATED STATEMENTS
IAS 39 – Amendments Eligible hedged
items
IfRS 2 – Amendments (acquisitions
and cancellations)
IAS 23 – Borrowing costs (revised)
IAS 32/IAS 1 – Amendments (puttable
financial instruments and obligations
arising on a liquidation)
IAS 1 – Presentation of financial
standards (revised)
IfRIC 13 – Customer loyalty programmes
IfRS 8 – Operating segments
IfRS 7 – Amendments (disclosures on
fair value measurements and liquidity
risk)
Improvements to international financial
reporting standards – 2007
These are clarifications related with the following hedge accounting
aspects: (i) identification of inflation as a hedged risk and (ii) options
hedges.
Consists of the clarification of the definition of vesting conditions,
introduction of the concept of non-vesting conditions and clarification of
the processing of cancellations.
This revision establishes the obligation to capitalise the costs of loans
related with qualifying assets with the option of recognising them in the
income statement for the period in which they were incurred being
consequently, eliminated.
These amendments change the classification criteria of a financial
instrument between an equity capital instrument and a financial liability,
enabling several financial instruments which may be repurchased to be
classified as shareholders’ equity instruments.
The year 2007 revision of IAS 1 introduced changes of terminology,
including new designations for elements of financial statements, and
changes to the format and content of such elements.
This interpretation requires bonuses given to customers as part of a sales
transaction to be recorded as a separate component part of the transaction.
IfRS 8 consists of a standard dealing exclusively with disclosures in
replacement of the former IAS 14 standard. The IfRS implied a redefinition
of the entity’s reportable segments and the information to be reported
therein.
These amendments to IfRS 7 expand the required disclosures on the fair
value of financial instruments and liquidity risk.
This process involved the revision of 32 accounting standards.
effectiVe on or after
Standard / interPretation
1-Jul-09
1-Jan-09
1-Jan-09
1-Jan-09
1-Jan-09
1-Jul-08
1-Jan-09
1-Jan-09
Various (usually
1-Jan-09)
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“IAS 1 (Revised) – Presentation of financial statements”. This standard is mandatory starting 01 January 2009
and makes a series of changes on the terminology of financial statements. The following are, inter alia, the
principal effects of this revision of IAS 1:
All gains and losses (including gains and losses recognised directly in shareholders’ equity) should, in the
future, be presented:
- In a single “statement of comprehensive income”; or
- In two statements (an income statement and statement of comprehensive income). The group adopted this
possibility in its financial statements at 31 December 2009.
The presentation of “other comprehensive income” (e.g. gains or losses on the revaluation of available for
sale financial assets) as separate items on the statement of changes to shareholders’ equity is no longer
permitted.
At the date of the board of directors’ approval of these financial statements, the relevant standards and interpre-
tations available for advance application were as follows:
NOTES TO ThE CONSOLIDATED STATEMENTS
IfRS 3 – Business combinations and
IAS 27 – Consolidated and separate
financial statements (2008 revision)
Revisions of IfRS 1 – first time
adoption of international financial
reporting standards
IfRIC 12 – Service concession
agreements
IfRIC 15 – Agreements for the
construction of real-estate
IfRIC 16 – hedges of a net investment
in a foreign operation
This revision must be applied for the years beginning on or after 1 July
2009 and makes several changes to the level of registration of business
combinations notably regarding: (a) the measurement of non-controlling
interests (previously referred to as minority shareholders’ interests ); (b)
the recognition and subsequent measurement of contingent payments;
(c) the processing of direct costs related with the combination; and (the
registration of transactions involving the purchase of interests in already
controlled entities and transactions for the sale of interests which do not
result in loss of control.
This standard was revised for the purpose of grouping the various
changes occurring since the first release.
This interpretation must be applied for the years beginning on or after 1
January 2010 and introduces rules for the recognition and measurement
by the private operator involved in the provision of infrastructures and
operations in public-to-private type concessions.
This interpretation deals with the form of assessment of whether a
real-estate construction agreement falls within the sphere of IAS 11 –
Construction contracts or IAS 18 – Revenue and how the corresponding
revenue should be recognised.
This interpretation provides guidelines on the hedge accounting of net
investments in foreign operations.
effectiVe on or after
Standard / interPretation
1-Jul-09
1-Jan-10
1-Jan-10
1-Jan-10
1-Jul-09
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The standards, although having been endorsed by the European Union, were not adopted by the group for the
year ended 31 December 2009, owing to the fact that their application was still not mandatory. No significant
impacts on the financial statements deriving from their adoption have been estimated.
3. OPERATINg SEgMENTS
The board of directors receives and analyses the group’s financial information every month, split up into business
segments representing its areas of activity by type of origination, designed, as a whole, to ensure a dynamic
investment banking business platform i.e.
corporate finance – including debt and equity financial advisory and project finance activities;
trading and sales – including trading and asset management operations and treasury liabilities;
Brokerage – brokerage operations;
commercial banking – including domestic and international transversal business origination;
Venture capital – CgD group’s venture capital operations continued to be performed by Caixa Capital – So-
ciedade de Capital de Risco, S.A. (which, in addition to concentrating all operating activity also manages four
venture capital funds) and Caixa Desenvolvimento, SgPS, S.A. (principally geared to strategic operations with
the highest potential appreciation);
other – other activities not classifiable in any of the former categories.
IfRIC 9 and IAS 39 – Amendments
(reassessment of embedded derivatives)
IfRIC 17 – Distributions of non-cash
assets to owners
IfRIC 18 – Transfers of assets from
customers
These amendments clarify the circumstances in which subsequent
reassessments of the obligation to separate derivatives assets are
permitted.
This interpretation issues guidelines on the correct accounting of the
distribution of non-cash assets to owners as dividends.
This interpretation issues guidelines on operators’ accounting of “cus-
tomers’” tangible fixed assets.
effectiVe on or after
Standard / interPretation
years ending on
beginning after
30-Jun-09
1-Jul-09
Transfers made
on or after
1-Jul-09
NOTES TO ThE CONSOLIDATED STATEMENTS
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The following tables summarises the information on the group’s operating segments at 31 December 2009
and 2008:
NOTES TO ThE CONSOLIDATED STATEMENTS
2009
total coMMercial BanKing
BroKerage Venture caPital
tradingand SaleS
corPoratefinance
other
Interest and similar income
Interest and similar costs
Income from equity instruments
net interest income including
income from equity instruments
Income from services and commissions
Costs of services and commissions
Income from financial operations
Other operating income
net operating income
Provisions net of recoveries and cancellations
Impairment of credit net of reversals
and recoveries
Impairment of other assets net of reversals
and recoveries
others costs and income
consolidated net income
financial assets recognised at fair value
through profit or loss
Available for sale financial assets
Positive revaluation of hedge derivatives
Loans and advances to customers
Other credit institutions’ and central
banks’ resources
Customer resources and other loans
financial liabilities recognised at fair value
through profit or loss
Negative revaluation of hedge derivatives
56,008
(34,130)
-
21,879
6,350,089
(1,460,732)
(159,115)
197,443
4,927,685
4,949,564
(661,767)
804
(4,534)
(665,497)
4,284,067
-
-
-
2,555,317
1,546,794
30,733,622
-
-
13,304,685
(4,116,119)
-
9,188,566
11,625,561
(629,505)
(84,654)
2,441,052
13,352,454
22,541,020
(355,242)
(22,935,751)
(22,632)
(23,313,625)
(772,605)
26,266,952
26,665,185
-
326,964,860
229,960,645
102,483,927
-
-
792,732
(2,129)
-
790,603
4,317,737
(12,698)
3,420,284
663,952
8,389,275
9,179,878
4,452,441
-
(8,548,011)
(4,095,570)
5,084,308
20,782,390
54,536,858
-
-
45,592,524
-
-
-
255,319,980
(220,022,737)
60,896
35,358,139
93,733,830
(31,200,237)
17,654,478
4,783,565
84,971,636
120,329,775
(1,816,745)
(23,575,302)
(8,928,234)
(34,320,281)
86,009,494
(40,402,855)
45,606,639
727,408,724
225,920,811
936,919
878,630,819
1,108,928,963
139,124,974
300,272,162
1,703,334
210,166,524
(202,811,302)
60,896
7,416,118
5,180,859
(265,507)
13,997,304
159,159
19,071,815
26,487,933
(889,158)
-
(70)
(889,228)
25,598,705
680,359,382
138,673,828
936,919
-
495,780,188
-
300,272,162
1,703,334
30,894,884
(12,959,451)
-
17,935,433
66,223,109
(28,831,795)
480,659
1,325,721
39,197,694
57,133,127
(4,271,616)
(624,207)
(318,862)
(5,214,685)
51,918,442
-
-
-
538,629,008
326,044,888
5,907,425
-
-
105,146
(99,606)
-
5,540
36,475
-
-
(3,762)
32,713
38,253
(91,403)
(16,148)
(34,124)
(141,675)
(103,421)
-
6,044,940
-
10,481,634
10,003,924
-
-
-
i.
ii.
iii.
total
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138
Interest and similar costs were split up over the various business lines on the basis of the average value of the
respective asset allocations to the said operating segments.
2008
Interest and similar income
Interest and similar costs
Income from equity instruments
net interest income including
income from equity instruments
Income from services and commissions
Costs of services and commissions
Income from financial operations
Other operating income
net operating income
Provisions net of recoveries and cancellations
Impairment of credit net of reversals
and recoveries
Impairment of other assets net of reversals
and recoveries
others costs and income
consolidated net income
financial assets recognised at fair value
through profit or loss
Available for sale financial assets
Positive revaluation of hedge derivatives
Loans and advances to customers
Other credit institutions’ and central
banks’ resources
Customer resources and other loans
financial liabilities recognised at fair
value through profit or loss
Negative revaluation of hedge derivatives
217,134
(158,403)
-
58,731
9,219,472
(1,813,041)
(387,641)
228,996
7,247,786
7,306,516
(587,753)
56,370
-
(531,383)
6,775,133
1,165,112
-
-
2,792,796
2,741,574
22,488,975
-
-
28,342,223
(19,027,087)
-
9,315,136
12,989,707
(813,889)
(158,597)
(59,527)
11,957,694
21,272,829
(988,242)
(5,770,449)
(57,487)
(6,816,178)
14,456,651
43,272,591
22,658,988
-
397,327,054
320,891,192
90,867,129
-
-
1,816,415
(5,904)
6,228
1,816,739
2,337,059
(11,208)
2,388,830
9,326,127
14,040,808
15,857,547
(6,674,441)
-
(3,689,125)
(10,363,566)
5,493,981
45,219,057
61,280,545
-
-
73,770,420
-
-
-
294,052,218
(269,439,897)
156,263
24,768,584
67,228,608
(7,109,912)
(4,444,442)
9,776,887
65,451,141
90,219,724
(9,245,120)
(5,779,162)
(3,746,612)
(18,770,894)
71,448,830
(41,206,644)
30,242,185
758,216,409
163,095,441
461,812
865,410,208
1,237,631,270
119,162,219
260,363,729
1,483,423
232,202,805
(232,706,024)
150,035
(353,185)
2,633,632
(588,064)
(6,535,776)
71,586
(4,418,622)
(4,771,807)
(190,692)
189,776
-
(916)
(4,772,723)
668,559,649
77,093,788
461,812
-
516,501,157
-
260,363,729
1,483,423
31,203,626
(17,285,960)
-
13,917,665
40,025,227
(3,883,710)
248,742
231,364
36,621,623
50,539,288
(659,969)
(248,299)
-
(908,268)
49,631,020
-
-
-
456,083,129
315,920,845
5,806,115
-
-
270,016
(256,518)
-
13,498
23,512
-
-
(21,659)
1,853
15,351
(144,022)
(6,560)
-
(150,582)
(135,231)
-
2,062,120
-
9,207,229
7,806,082
-
-
-
i.
ii.
iii.
total
total coMMercial BanKing
BroKerage Venture caPital
tradingand SaleS
corPoratefinance
other
NOTES TO ThE CONSOLIDATED STATEMENTS
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Income distribution by principal balance sheet headings and countries in which the bank performs its activities in
2009 and 2008 is set out below:
2009
Interest and similar income
Interest and similar costs
Income from equity instruments
net interest income including income
from equity instruments
Income from services and commissions
Costs of services and commissions
Income from financial operations
Other operating income
net operating income
Provisions net of recoveries and cancellations
Impairment of credit net of reversals and recoveries
Impairment of other assets net of reversals and recoveries
others costs and income
consolidated net income
financial assets recognised at fair value through profit or loss
Available for sale financial assets
Positive revaluation of hedge derivatives
Loans and advances to customers
Other credit institutions’ resources
Customer resources and other loans
financial liabilities recognised at fair value through profit or loss
Negative revaluation of hedge derivatives
Portugal
230,963,479
(197,258,295)
60,896
33,766,080
93,278,479
(31,188,209)
17,654,474
4,347,229
84,091,973
117,858,053
(2,676,408)
(23,575,302)
(8,928,234)
(35,179,944)
82,678,109
727,408,724
225,920,811
936,919
867,849,591
1,098,151,808
139,124,974
300,272,162
1,703,334
total
255,319,980
(220,022,737)
60,896
35,358,139
93,733,830
(31,200,237)
17,654,478
4,783,565
84,971,636
120,329,775
(1,816,745)
(23,575,302)
(8,928,234)
(34,320,281)
86,009,494
(40,402,855)
45,606,639
727,408,724
225,920,811
936,919
878,630,819
1,108,928,963
139,124,974
300,272,162
1,703,334
SPain
24,356,501
(22,764,442)
-
1,592,059
455,351
(12,028)
4
436,336
879,663
2,471,722
859,663
-
-
859,663
3,331,385
-
-
-
10,781,228
10,777,155
-
-
-
i.
ii.
iii.
total
NOTES TO ThE CONSOLIDATED STATEMENTS
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The information set out in the preceding tables comprises the balance sheet and financial statements of all group
entities headquartered in Portugal (“Portugal” column) and the Madrid branch (“Spain” column). Each of the
group entities performs its activity mainly with customers or resident counterparties domiciled in the same countries
in which they are headquartered.
2008
Interest and similar income
Interest and similar costs
Income from equity instruments
net interest income including income
from equity instruments
Income from services and commissions
Costs of services and commissions
Income from financial operations
Other operating income
net operating income
Provisions net of recoveries and cancellations
Impairment of credit net of reversals and recoveries
Impairment of other financial assets net of reversalsand recoveries
others costs and income
consolidated net income
financial assets recognised at fair value through profit or loss
Available for sale financial assets
Positive revaluation of hedge derivatives
Loans and advances to customers
Other credit institutions’ resources
Customer resources and other loans
financial liabilities recognised at fair value through profit or loss
Negative revaluation of hedge derivatives
Portugal
284,576,529
(261,326,064)
156,263
23,406,728
65,716,895
(7,092,680)
(4,444,443)
9,798,543
63,978,315
87,385,043
(9,126,774)
(5,779,162)
(3,746,612)
(18,652,548)
68,732,495
758,216,409
163,095,441
461,812
768,695,448
1,140,358,157
119,162,219
260,363,729
1,483,423
total
294,052,218
(269,439,897)
156,263
24,768,584
67,228,608
(7,109,912)
(4,444,442)
9,776,887
65,451,141
90,219,724
(9,245,120)
(5,779,162)
(3,746,612)
(18,770,894)
71,448,830
(41,206,644)
30,242,185
758,216,409
163,095,441
461,812
865,410,208
1,237,631,270
119,162,219
260,363,729
1,483,423
SPain
9,475,689
(8,113,833)
-
1,361,856
1,511,713
(17,232)
1
(21,656)
1,472,826
2,834,682
(118,346)
-
-
(118,346)
2,716,336
-
-
-
96,714,760
97,273,113
-
-
-
i.
ii.
iii.
total
NOTES TO ThE CONSOLIDATED STATEMENTS
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4. gROUP COMPANIES AND TRANSACTIONS IN PERIOD
The following is a summary of the financial data extracted from the provisory separate accounts of the entities
included in the consolidation perimeter in the last financial year, using the global integration method:
Caixa Desenvolvimento, SgPS, S.A. formed in 1998, has its registered office in Portugal. Its corporate object is
to manage equity investments in other companies, as an indirect form of performing economic activities. Caixa
Desenvolvimento, SgPS, S.A.’s shareholders’ equity at 31 December 2009 and 2008, included supplementary
contributions of €13,000,000 and €87,284,245 respectively, from the bank.
Caixa Capital - Sociedade de Capital de Risco, S.A. (Caixa Capital) has its registered office in Lisbon and was
formed on 31 December 1990 under Decree Law 17/86 of 05 february. The company’s corporate object is to support
and promote investment and technological innovation by making temporary equity investments in projects or
companies. It is also authorised to provide assistance to the financial, technical, administrative and commercial
management of its subsidiary companies. It managed four venture capital funds at 31 December 2009.
Fundo de Capital de Risco para Investidores Qualificados Energias Renováveis – Caixa Capital (FCR Energias
Renováveis) was formed in January 2006, with a subscribed capital of €50,000,000 comprising 2,000 investment
units. The fund’s objective is to invest its assets in equity investments in companies with high growth and
appreciation potential, operating in the field of generating electricity from renewable energy sources. The bank
subscribed for 1,820 investment units for a nominal amount of €45,500,000 of which amount €18,900,000 was
outstanding at 31 December 2009 and 2008. An amount of €13,700,000 was paid up in 2008.
caixa – Banco de investimento, S.a.
Caixa Desenvolvimento, SgPS, S.A.
Caixa Capital – Sociedade de
Capital de Risco, S.A.
fundo de Capital de Risco
Energias Renováveis – Caixa Capital
entity date
31-12-2009
31-12-2009
31-12-2009
31-12-2009
Percentageequity
inVeStMent
100.00
100.00
100.00
91.00
lisbon
Lisbon
Lisbon
Lisbon
regiStered office
aSSetS
1,927,907,922
28,978,986
35,595,287
53,263,737
Profit /loSS
41,969,026
(1,721,821)
3,346,254
4,544,061
ShareholderS’ equity
226,437,269
25,934,725
28,092,240
52,992,932
NOTES TO ThE CONSOLIDATED STATEMENTS
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5. CASh AND CASh EQUIVALENTS wITh CENTRAL BANkS
This account heading comprises the following:
The “sight deposits with Bank of Portugal” account heading includes the deposits providing for the demands of
the “Minimum Reserve Requirements of the System of European Central Banks” (SEBC). Interest is paid on these
deposits which comprise 2% of the deposits and debt securities with a maturity of up to two years, excluding the
deposits and public debt securities subject to SEBC minimum reserve requirements.
6. CASh ASSETS wITh OThER CREDIT INSTITUTIONS
This account heading comprises the following:
Cash
Sight deposits with central banks
2009
2,897
187,113
190,010
2008
3,555
1,160,845
1,164,400
Cheques pending collection
In Portugal
Sight deposits
In Portugal
Abroad
2009
-
968,450
1,114,548
2,082,998
2,082,998
2008
50,000
15,754,407
1,080,953
16,835,360
16,885,360
NOTES TO ThE CONSOLIDATED STATEMENTS
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7. LOANS AND ADVANCES TO CREDIT INSTITUTIONS
This account heading comprises the following:
The “term deposits – Portugal” account heading at 31 December 2009 and 2008 comprised deposits with CgD
group financial institutions.
8. fINANCIAL ASSETS RECOgISED AT fAIR VALUE ThROUgh PROfIT AND LOSS
These headings comprise the following:
NOTES TO ThE CONSOLIDATED STATEMENTS
Term deposits
In Portugal
Short term loans
In Portugal
Interest receivable
2009 2008
8,484,638
-
78,966
8,563,604
9,281,619
15,000,000
120,362
24,401,981
2008
debt instruments
Public issuers
Bonds
Other issuers
Bonds and other securities
Issued by resident entities
Issued by non-resident entities
equity instruments
Issued by resident entities
Issued by non-resident entities
derivatives with positive
fair value (note 10)
2009
held for trading
41,292,177
136,167,769
127,516,724
304,976,671
42,968,768
-
42,968,768
328,962,661
676,908,100
total
41,292,179
163,393,406
130,009,320
334,694,905
63,751,158
-
63,751,158
328,962,661
727,408,724
recogniSed at fair Value through
Profit or loSS
2
27,225,637
2,492,596
29,718,234
20,782,390
-
20,782,390
-
50,500,624
89,311,803
168,206,920
66,208,742
323,727,465
37,291,022
1,420,113
38,711,135
293,605,227
656,043,827
100,378,128
212,452,639
70,552,300
383,383,067
79,808,002
1,420,113
81,228,115
293,605,227
758,216,409
11,066,325
44,245,719
4,343,558
59,655,602
42,516,980
-
42,516,980
-
102,172,582
held for trading
total recogniSed at fair Value through
Profit or loSS
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The “debt instruments issued by other public entities – held for trading” account heading at 31 December 2009 and
2008, included €92,658,873 and €158,631,452 in bonds convertible into EDP shares issued by Parpública – SgPS,
S.A. respectively.
Information on the “financial assets recognised at fair value through profit or loss – equity instruments” account
heading is set out below:
The group recognises equity instruments for venture capital in this category, whenever there are associated
embedded derivatives (i.e. the right or contractual obligation to dispose of the subsidiary companies under
shareholders’ agreements entered into when the equity investments were made).
The 6.9% equity investment in Sumol + Compal, S.A. was received as part of the disposal process of Compal –
Companhia Produtos de Conservas Alimentares, S.A. equity investment described in Note 14. The book value of
the shares at 31 December 2009 comprised the current value of the sales option held by the group. The value of
the shares determined on the basis of Euronext Lisbon prices totalled €10,183,513 on the said date.
The group acquired 337,926 Mwh – gestão de Recursos Naturais, S.A. shares, in December 2009, though fCR
Energias Renováveis, comprising 10% of the equity at nominal unit value of €1. The group had paid up 251,305
shares by 31 December 2009, with the others still outstanding. Partners’ loans of €621,804 were also made
(Note 16).
In April 2009, as part of a restructuring operation of the investment portfolios of CgD group venture capital
area subsidiaries, Caixa Capital disposed of its investment in Visabeira, SgPS, S.A. and Convento de Belmonte –
Investimentos Turísticos, S.A. to fCR grupo CgD. The transactions were realised on the basis of the fair value of
the assets recognised in the financial statements at 31 December 2008, with a consequent nil net effect on the
group’s income for 2009.
In April 2009, the group exercised its sales option on the Manuel Inácio & filhos, S.A. shares as provided for
by the shareholders’ agreement. The amount receivable, calculated using the methodology provided for in the
agreement was €11,629,371, was transferred to the “other assets” account heading (Note 16). As a result of
NOTES TO ThE CONSOLIDATED STATEMENTS
Equity instruments – Venture capital
Sumol + Compal, S.A. (Note 14)
Mwh – gestão Recursos Naturais, S.A.
Visabeira, SgPS, S.A.
Plataforma, SgPS, S.A.
Manuel Inácio & filhos, SgPS, S.A.
Convento de Belmonte – Investimentos Turísticos, S.A.
Other
2009 2008
20,503,541
-
17,277,058
2,448,647
1,875,000
400,264
12,470
42,516,980
20,444,464
337,926
-
-
-
-
-
20,782,390
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this operation, the company (i) transferred the potential capital loss of €1,875,000 which had been recognised
in the investment to impairment on debtors and other investments (Note 30) and (ii) recognised capital gains of
€7,878,971 over the cost price in the “income from assets and liabilities at fair value through profit or loss”
account heading (Note 26), which was fully offset by the same amount of impairment recognised in the account
to be received (Note 16).
In May 2009, Caixa Capital disposed of the full amount of its investment in Plataforma, SgPS, S.A., comprising
around 9.7% of the company’s share capital for the amount of €3,176,726. Annual gains comprised €364,040.
The amount of the sale was recognised in a debtors account (Note 16) with around €500,000 having been paid
in 2009.
At 31 December 2008, the “financial assets at fair value through profit or loss – equity instruments” account
included investments made under the scope of the process for the dissolution and liquidation of fundo de Capital
de Risco PME (fCR PME) at a total cost price of €1,119,944 (Note 20) and which were disposed of in 2009.
Under the terms of the agreements, the differences between the referred to cost price and the amounts to be
received should be paid or reimbursed by fCR PME members. The said investments were worth €104,381 at 31
December 2008 (Note 20).
The bank transferred a collection of securities recognised as financial assets held for trading, in 2008, to the available
for sale financial assets portfolio (Note 9).
The bank, at 31 December 2009 and 2008, held debt securities (pledged) with a nominal value of €49,366,000
and €44,150,000 respectively (Note 19).
NOTES TO ThE CONSOLIDATED STATEMENTS
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9. AVAILABLE fOR SALE fINANCIAL ASSETS
This account heading comprises the following:
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
debt instruments
Issued by other entities
Residents
Non residents
equity instruments
Shares
gross amount
Issued by resident entities
fair value
historical cost
Issued by non-resident entities
fair value
historical cost
Impairment (Note 30)
Investment units
gross amount
Other equity instruments
gross amount
2009
89,355,228
57,229,838
146,585,066
12,531,338
153,127
40,107,235
-
52,791,700
(5,438,408)
47,353,292
21,761,702
10,220,751
79,335,745
225,920,811
71,644,521
18,567,806
90,212,327
34,689,853
153,127
48,229,155
3,063,720
86,135,855
(13,357,047)
72,778,808
104,306
-
72,883,114
163,095,441
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Information on the value of share and investment units at 31 December 2009 and 2008, is set out below:
NOTES TO ThE CONSOLIDATED STATEMENTS
Venture capital investments
fundo de Capital de Risco grupo CgD
SICAR NovEnergia II
EDP Renováveis, S.A.
fomentinvest, SgPS, S.A.
Martifer, SgPS, S.A.
Pinewells, S.A.
La Seda Barcelona
A. Silva & Silva – Imobiliário e Serviços, S.A.
helios I hyperion Energy Investments, S.L.
helios II hyperion Energy Investments, S.L.
Eurofrozen – Indústria e Companhia
de Produtos Alimentares, S.A.
MARL Energia – Central fotovoltaica, Lda
Other less than 100.000 euros
Other investments
SEIf – South Europe Infrastructure Equity finance
Corporación Interamericana para
el financiamiento de Infraestructura
MTS Portugal, SgMR, S.A.
2009
-
-
-
-
(3,700,808)
-
-
-
-
-
-
-
-
(3,700,808)
-
(1,737,600)
-
(1,737,600)
(5,438,408)
iMPairMent
21,761,702
17,712,326
14,612,268
5,138,081
2,595,508
1,096,941
100
-
-
-
-
-
-
62,916,926
4,052,818
1,992,123
153,127
6,198,068
69,114,994
BooK Value (*)
411,955
5,804,744
(2,669,815)
1,561,158
-
196,941
(1,695)
-
-
-
-
-
-
5,303,287
364,097
172,109
-
536,206
5,839,493
21,349,747
11,907,582
17,282,083
3,576,923
6,296,316
900,000
1,795
-
-
-
-
-
-
61,314,447
3,688,721
3,557,614
153,127
7,399,462
68,713,909
coStPrice
6.46
17.10
0.25
15.38
0.78
20.00
0.76
-
-
-
-
-
-
8.33
9.26
4.67
%inVeStMent
2008
n. d.
17.10
0.25
15.38
0.78
20.00
7.23
23.90
5.00
5.00
32.00
31.67
-
8.33
9.26
4.67
104,306
16,354,554
11,026,422
4,752,000
2,629,700
300,000
15,403,770
14,000,000
791,818
791,818
773,116
516,656
159,984
67,604,145
3,063,722
2,062,119
153,127
5,278,968
72,883,113
fair Value
reSerVe
%inVeStMent
BooK Value
(*) Net of impairment
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Information on movements in this account, for 2009 and 2008, was as follows:
NOTES TO ThE CONSOLIDATED STATEMENTS
Venture capital investments
fundo de Capital de Risco grupo CgD
SICAR NovEnergia II
EDP Renováveis, S.A.
fomentinvest, SgPS, S.A.
Martifer, SgPS, S.A.
Pinewells, S.A.
La Seda Barcelona
A. Silva & Silva – Imobiliário e Serviços, S.A.
helios I hyperion Energy Investments, S.L.
helios II hyperion Energy Investments, S.L.
Eurofrozen – Indústria e Companhia
de Produtos Alimentares, S.A.
MARL Energia – Central fotovoltaica, Lda
Parque Eólico da gardunha, Lda.
Other less than 100.000 euros
Other investments
SEIf – South Europe Infrastructure Equity finance
Corporación Interamericana para
el financiamiento de Infraestructura
MTS Portugal, SgMR, S.A.
ENACOL – Empresa Nacional de
Combustíveis, S.A.
(7,325)
2,123,269
(6,514,874)
1,175,077
144,197
-
(33,492,433)
-
-
-
(763,909)
-
(1,423,643)
(28,136)
(38,787,777)
-
-
-
-
-
(38,787,777)
change in fair Value
reSerVe
iMPairMent (note 30)
-
-
-
-
(3,666,616)
-
-
-
-
-
-
-
-
-
(3,666,616)
-
-
-
-
-
(3,666,616)
-
-
17,541,296
1,826,923
1,241,027
300,000
11,294,191
-
791,818
791,818
34,956
516,656
(1,357)
991
34,338,319
1,262,501
794,028
-
(3,718,940)
(1,662,411)
32,675,908
PurchaSeS/ SaleS
111,631
14,231,285
-
1,750,000
4,911,092
-
37,602,012
14,000,000
-
-
1,502,069
-
1,425,000
187,130
75,720,220
1,801,221
1,154,712
153,127
3,718,940
6,827,999
82,548,220
Balance at 31-12-2007
eXchangedifferenceS
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
113,379
-
-
113,379
113,379
104,306
16,354,554
11,026,422
4,752,000
2,629,700
300,000
15,403,770
14,000,000
791,818
791,818
773,116
516,656
-
159,986
67,604,147
3,063,722
2,062,119
153,127
-
5,278,968
72,883,115
Balance at 31-12-2008
Continues on the next page
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The “Other equity instruments” account heading comprises non-voting preference shares issued by Caixa geral
finance Limited, giving a right to a quarterly preferential dividend, at the company’s discretion, equivalent to
annual interest at the Euribor rate plus a spread. Caixa geral finance may redeem the preferential shares starting
from the tenth year after their issue (June 2014 and September 2015) with a 1% increase in spread if failing to
do so.
The potential capitals losses on shares classified in the “debt instruments” and “other equity capital” account
headings, at 31 December 2009 and 2008, totalled €7,250,328 and €11,697,535 respectively.
The investment in Corporación Interamericana para el financiamento de Infraestructura was made in 2001 for
4,000,000 US dollars. In August 2008, the bank acquired 1,000,000 shares for the total amount of 1,170,000
US dollars. Exposure to foreign exchange risk is hedged by funding in US dollars. Under the terms of the hedge
accounting investment, the change in fair value resulting from the foreign exchange component, in 2009 and
2008, was recognised in the income statement.
NOTES TO ThE CONSOLIDATED STATEMENTS
Venture capital investments
fundo de Capital de Risco grupo CgD
SICAR NovEnergia II
EDP Renováveis, S.A.
fomentinvest, SgPS, S.A.
Martifer, SgPS, S.A.
Pinewells, S.A.
La Seda Barcelona
A. Silva & Silva – Imobiliário e Serviços, S.A.
helios I hyperion Energy Investments, S.L.
helios II hyperion Energy Investments, S.L.
Eurofrozen – Indústria e Companhia
de Produtos Alimentares, S.A.
MARL Energia – Central fotovoltaica, Lda
Parque Eólico da gardunha, Lda.
Other less than 100.000 euros
Other investments
SEIf – South Europe Infrastructure Equity finance
Corporación Interamericana para
el financiamiento de Infraestructura
MTS Portugal, SgMR, S.A.
ENACOL – Empresa Nacional de Combustíveis, S.A.
407,408
1,357,772
3,845,059
386,081
-
196,941
36,574,981
-
-
-
763,910
-
-
95,780
43,627,932
364,096
-
-
-
364,096
43,992,028
-
-
-
-
(34,192)
-
-
-
-
-
-
-
-
-
(34,192)
-
-
-
-
-
(34,192)
21,249,988
-
(259,213)
-
-
600,000
(51,978,652)
(14,000,000)
(791,818)
(791,818)
(1,537,026)
(516,656)
-
(255,766)
(48,280,961)
625,000
-
-
-
625,000
(47,655,961)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(69,996)
-
-
(69,996)
(69,996)
104,306
16,354,554
11,026,422
4,752,000
2,629,700
300,000
15,403,770
14,000,000
791,818
791,818
773,116
516,656
-
159,986
67,604,147
3,063,722
2,062,119
153,127
-
5,278,968
72,883,115
21,761,702
17,712,326
14,612,268
5,138,081
2,595,508
1,096,941
100
-
-
-
-
-
-
-
62,916,926
4,052,818
1,992,123
153,127
-
6,198,068
69,114,994
change in fair Value
reSerVe
iMPairMent (note 30)
PurchaSeS/ SaleS
Balance at 31-12-2008
eXchangedifferenceS
Balance at 31-12-2009
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The following were the principal movements in equity instruments recognised in “available for sale financial assets”
in 2009 and 2008:
la Seda Barcelona
Caixa Capital disposed of 4,737,715 La Seda Barcelona shares in September 2008, on the stock market. Caixa
Desenvolvimento also acquired an identical number of shares on the stock market, in the same month. The value
of the share purchase totalled €3,363,778, with Caixa Capital making capital losses of €5,139,385 on the
operation (Note 26). Caixa Desenvolvimento also increased the size of its investment in La Seda Barcelona to
7.23% through its acquisition of 23,443,575 shares for €16,433,575.
Caixa Desenvolvimento disposed of its investment in La Seda Barcelona to Caixa geral de Depósitos, S.A. in January
2009 for the amount of €45,304,211. The operation generated capital losses of €6,674,441 (Note 26), fully
provisioned at 31 December 2008 (Note 19).
The investment in La Seda Barcelona, S.A. was admitted to trading in the Madrid stock market at 31 December
2009 and 2008. however trading of La Seda shares had been suspended, since June 2009, owing to the fact that
negotiations for the approval of a corporate restructuring plan were in progress.
edP renováveis, S.a.
The bank and fCR Energias Renováveis acquired 1,263,962 and 600,000 EDP Renováveis, S.A. shares in June 2008
respectively, under the IPO on Euronext Lisbon at a unit price of €8 per share, for the amount of €14,911,696.
340,000 shares for the amount of €2,629,600 were also acquired on the stock market by the by the end of 2008.
A further 340,000 shares for the amount of €2,629,600 were acquired in the stock exchange by the end of 2008.
The bank realised purchases / sales of EDP Renováveis, S.A. shares, in 2009. There was no change in the number
of shares held in comparison to 31 December 2008. These operations generated net losses of €136,571 (Note 26).
fomentinvest, SgPS, S.a.
Caixa Capital invested in an increase in the share capital of fomentinvest, SgPS, S.A. in December 2008 having
subscribed for 1,826,923 shares with a nominal value of €1 each, with its percentage investment remaining
unchanged.
Martifer, SgPS, S.a.
fCR Energias Renováveis acquired 349,020 shares for the amount of €1,241,027, in 2008.
Pinewells, S.a.
fCR Energias Renováveis acquired 60,000 Pinewells, S.A. shares for the amount of €300,000 in August 2008.
NOTES TO ThE CONSOLIDATED STATEMENTS
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The fund participated in the increase in share capital of Pinewells, S.A. in July 2009, having increased the size of its
investment by €600,000 , of which €200,000 in cash and €400,000 through an incorporation of partners’ loans.
This operation gave the fund €180,000 shares, with no change to the size of its investment in the company.
a. Silva & Silva – imobiliário e Serviços, S.a.
Caixa Desenvolvimento and Caixa Capital sold their equity investments in A. Silva & Silva Imobiliário e Serviços,
S.A. in April 2009 to fCR grupo CgD – Caixa Capital at a book value of €14,000,000.
helios i / ii hyperion energy investments, Sl
153 hyperion Energy Investments, SL shares comprising 5% of the company’s share capital, for the amount of
€1,583,636 were acquired in April 2008.
The fund reinforced its equity investment in helios I hyperion Energy Investments, S.L. and helios II hyperion
Energy Investments, S.L. in first half 2009 comprising an investment of €55,000 in each. The fund disposed of its
investments for the total amount of €1,872,052, in December 2009, making capital gains of €178,416 (Note 26).
eurofrozen – indústria e comércio de Produtos alimentares, S.a. (eurofrozen)
Caixa Desenvolvimento and Caixa Capital acquired 1,563 and 156 Eurofrozen shares in August 2008, at a unit
price of €20,335. The operation totalled €34,956.
As part of a restructuring of the investments held by Caixa geral de Depósitos group’s venture capital operations,
the group disposed of its investment in Eurofrozen to fundo de Capital de Risco grupo CgD – Caixa Capital (fCR
CgD) at its book value at 31 December 2008 making capital losses of €763,909 (Note 26). Accessory capital
payments of €220,000, were also alienated.
Marl energia – central fotovoltaica, lda. (Marl energia)
Caixa Capital acquired 23,750 shares comprising 47.5% of the share capital of MARL Energia, for the amount of
€775,000, in January 2009. On the same date, it disposed of 7,917 shares, at their purchase price of €258,344
to fomentInvest, SgPS, S.A.. Caixa Capital’s equity investment, following the said operation, comprised 31.67%
of MARL Energia’s share capital at 31 December 2008.
As part of the above referred to restructuring operation of Caixa geral de Depósitos group’s venture capital port-
folio operations, the group disposed of its investment in MARL Energia to fCR grupo CgD in April 2009, at its
book value at 31 December 2008. This operation did not generate any income for the bank.
fundo de capital de risco grupo cgd – caixa capital
The company participated in the share capital increase of fundo de Capital de Risco grupo CgD – Caixa Capital,
NOTES TO ThE CONSOLIDATED STATEMENTS
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in April 2009, having subscribed for 418 investment units at a unit price of €50,837, totalling €21,249,987. The
company had paid up €16,000,000 by 31 December 2009 with the outstanding amount to be realised by 31
December 2010 (Note 20).
Sobreovento – energias alternativas, lda
fCR Energias Renováveis made an investment of 19.9% in the share capital of Sobreovento – Energias Alternativas.
Lda. (Sobreovento), for €995, in 2008. The company was formed as a vehicle for the acquisition of PEA – Parques
Eólicos de Arganil, Lda., formed in April 2005, for the construction and operation of three wind farms in Arganil
and Pampilhosa da Serra.
following this operation, the fund made partners’ loans of €3,980,000 to Sobreovento of which €1,990,000 had
been repaid by 31 December 2008.
In March 2009, an agreement for the sale of a stake in Ventosga – Produção de Energia, SgPS, S.A., under which the
fund disposed of the whole of its investment in Sobreovento – Energias Alternativas, Lda. for €2,010,000, making
capital gains of €2,009,005 (Note 26). This operation also included the repayment of partners’ loans of €1,990,000.
Vista alegre atlantis, SgPS, S.a.
Cerutil, S.A. launched a takeover bid for Vista Alegre Atlantis, SgPS, S.A., (“Vista Alegre”), in 2009 offering
€0.092 per non-listed share and 0.072 per share resulting from the merger. Under the terms of this operation,
Caixa Desenvolvimento disposed of 7,106,960 Vista Alegre shares, for the amount of €523,037 recognising
capital gains for the same amount (Note 26), as impairment on the full amount of the investment had been
recognised.
South europe infraestructure equity finance
The bank was involved in the South Europe Infrastructure Equity finance (SEIEf) capital increases in 2009 and
2008, investing an amount of €625,000 and €1,262,501 respectively. The bank has undertaken to provide up to
€10,000,000 in capital funding at the fund’s request, whenever a new operation is realised.
reclassification of securities
The bank reclassified its financial assets held for trading category securities to the available for sales financial as-
sets category on 01 July 2008, in conformity with the change to the IAS 39 Standard approved on 13 October
2008. Owing to the turbulence in the financial markets in 2008, the fact that the bank does not expect to dispose
of these securities over the short term explains the reason for the transfer between categories.
NOTES TO ThE CONSOLIDATED STATEMENTS
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Information on the impact of the reclassification of these securities, in income and fair value reserves account
headings is set out below:
The fiscal effect is not reflected in the amounts.
fair value
Accrued interest
Book value
fair value reserve
Capital gains / losses recognised in income statement for year
impact on income for the period without reclassification
31-12-2009 aMount
31-12-2008 aMount
12,922,417
92,090
13,014,507
(2,161,051)
1,598,457
(1,114,943)
37,359,987
781,314
38,141,301
(1,046,108)
(2,170,534)
(1,046,108)
NOTES TO ThE CONSOLIDATED STATEMENTS
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10. fINANCIAL DERIVATIVE INSTRUMENTS
These operations were valued in conformity with the criteria set out in Note 2.6.c), at 31 December 2009 and
2008. Information on the respective notional and balance sheet value, at the said dates, is set out below:
2009
financial derivative
instruments
OTC
Swaps
Interest rates
Equity swaps
Commodity forwards
Currency forwards
Caps & floors
Options
On interest rates
On currencies
On commodities
Stock market
futures
Interest rate
Equity swaps
notional aMount BooK Value
9,158,572,400
59,892,105
9,583,784
-
2,624,518,740
600,000,500
39,666,496
4,138,276
12,496,372,301
114,685,187
1,750,000
12,612,807,488
16,661,158
-
-
-
-
-
-
-
16,661,158
-
-
16,661,158
9,141,911,242
59,892,105
9,583,784
-
2,624,518,740
600,000,500
39,666,496
4,138,276
12,479,711,143
114,685,187
1,750,000
12,596,146,330
total hedgederiVatiVeS
trading deriVatiVeS
259,588,520
17,207,758
-
-
39,193,592
11,378,513
1,083,613
510,664
328,962,661
-
-
328,962,661
(248,158,494)
-
-
-
(39,132,727)
(11,386,664)
(1,083,613)
(510,664)
(300,272,162)
-
-
(300,272,162)
(766,415)
-
-
-
-
-
-
-
(766,415)
-
-
(766,415)
10,663,611
17,207,758
-
-
60,866
(8,151)
-
-
27,924,084
-
-
27,924,084
aSSetSheld for trading (note 8)
liaBilitieS held for trading
hedgederiVatiVeS
total
NOTES TO ThE CONSOLIDATED STATEMENTS
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The balance on the “Swaps – market value” account heading at 31 December 2009, comprised an equity swap to
hedge the risk on changes in the value of shares recognised in the trading portfolio. This agreement also provides
for collateral comprising a deposit to be maintained with the bank by the counterparty and recognised in the
“creditors and other resources – price adjustments” (Note 20) account heading.
The “options on associated companies” account heading at 31 December 2008, refers to the revaluation of a
sales option on the equity investment in Pestana Pousadas Investimentos Turísticos, S.A. group (Note 14).
The book value of the assets classified as hedged items, at 31 December 2009 and 2008, totalled €13,409,321
and €14,195,957 respectively, including €1,578,920 and €1,558,370 (Note 11), respectively, in respect of value
adjustments.
The book value of liabilities classified as hedged items also totalled €6,051,308 and €5,723,912 respectively
at 31 December 2009 and 2008, including €271,060 and €160,731 (Note 18), respectively, relating to value
adjustments.
financial derivative
instruments
OTC
Swaps
Interest rate
Equity swaps
Currency forwards
Caps & floors
Options
Market prices
Associated companies
Stock market
futures
Interest rate
6,916,987,525
59,892,105
40,000,000
3,548,185,044
64,255,227
-
10,629,319,901
66,237,091
10,695,556,992
17,456,798
-
-
-
-
-
17,456,798
-
17,456,798
6,899,530,727
59,892,105
40,000,000
3,548,185,044
64,255,227
-
10,611,863,103
66,237,091
10,678,100,194
232,563,060
24,584,001
142,451
23,029,569
10,584,070
2,702,076
293,605,227
-
293,605,227
(226,620,869)
-
(134,531)
(23,024,259)
(10,584,070)
-
(260,363,729)
-
(260,363,729)
(1,021,611)
-
-
-
-
-
(1,021,611)
-
(1,021,611)
4,920,580
24,584,001
7,920
5,310
-
2,702,076
32,219,887
-
32,219,887
2008
notional aMount BooK Value
total hedgederiVatiVeS
trading deriVatiVeS
aSSetSheld for trading (note 8)
liaBilitieS held for trading
hedgederiVatiVeS
total
NOTES TO ThE CONSOLIDATED STATEMENTS
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Information on the distribution of financial derivative instruments operations, at 31 December 2009 and 2008 by
periods to maturity (notional amounts) is set out below:
2009
financial derivatives
OTC
Swaps
Interest rate
Trading
hedge
Equity swaps
Trading
Commodity forwards
Trading
Caps & floors
Trading
Options
On interest rates
On currencies
On commodities
Stock market
futures
Interest rate
Trading
Equity swaps
150,000,000
-
150,000,000
-
150,000,000
-
60,000,000
-
6,598,460
4,138,276
220,736,736
114,685,187
1,750,000
337,171,923
96,468,870
-
96,468,870
59,892,105
156,360,975
-
-
-
7,825,952
-
164,186,927
-
-
164,186,927
320,162,472
-
320,162,472
-
320,162,472
9,538,784
52,506,000
-
22,003,975
-
404,256,231
-
-
404,256,231
4,607,350,293
5,000,000
4,612,350,293
-
4,612,350,293
-
1,426,883,762
-
3,238,109
-
6,042,472,164
-
-
6,042,472,164
3,967,929,607
11,661,158
3,979,590,765
-
3,979,590,765
-
1,085,128,978
600,000,500
-
-
5,664,720,243
-
-
5,664,720,243
9,141,911,242
16,661,158
9,158,572,400
59,892,105
9,218,464,505
9,538,784
2,624,518,740
600,000,500
39,666,496
4,138,276
12,496,372,301
114,685,187
1,750,000
12,612,807,488
<= 3 MonthS > 3 <= 6 MonthS
6 MonthS <= 1 year
>1 <= 5 yearS
> 5 yearS total
NOTES TO ThE CONSOLIDATED STATEMENTS
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financial derivatives
OTC
Swaps
Interest rate
Trading
hedge
Equity swaps
Trading
Currency forwards
Trading
Caps & floors
Trading
Commodity options
Trading
Stock market
futures
Interest rate
Trading
1,320,733,276
-
1,320,733,276
-
1,320,733,276
40,000,000
-
7,615,431
1,368,348,707
66,237,091
1,434,585,798
66,667
-
66,667
-
66,667
-
-
13,802,976
13,869,643
-
13,869,643
169,305,439
-
169,305,439
-
169,305,439
-
673,200,000
38,553,138
881,058,577
-
881,058,577
2,413,489,223
-
2,413,489,223
59,892,105
2,473,381,328
-
2,526,805,024
4,283,682
5,004,470,034
-
5,004,470,034
2,995,936,122
17,456,798
3,013,392,920
-
3,013,392,920
-
348,180,020
-
3,361,572,940
-
3,361,572,940
6,899,530,727
17,456,798
6,916,987,525
59,892,105
6,976,879,630
40,000,000
3,548,185,044
64,255,227
10,629,319,901
66,237,091
10,695,556,992
2008
<= 3 MonthS > 3 <= 6 MonthS
6 MonthS <= 1 year
>1 <= 5 yearS
> 5 yearS total
NOTES TO ThE CONSOLIDATED STATEMENTS
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Information on the distribution of financial derivative instruments operations, by counterparty type, at 31 December
2009 and 2008, is set out below:
2008
Contracts on interest rates
Interest rate swaps
financial institutions
Customers
Equity swaps
Customers
Commodity forwards
financial institutions
Customers
forward rate agreement
financial institutions
Customers
Caps & floors
financial institutions
Customers
Interest rate options
financial institutions
Central government
Customers
Currency options
financial institutions
Customers
Commodity options
financial institutions
Customers
Options - associated companies
Customers
futures
Stock market
4,724,322,177
4,434,250,223
9,158,572,400
59,892,105
59,892,105
4,791,892
4,791,892
9,583,784
-
-
-
1,312,259,370
1,312,259,370
2,624,518,740
300,000,000
300,000,000
500
600,000,500
19,833,248
19,833,248
39,666,496
2,069,138
2,069,138
4,138,276
-
116,435,187
12,612,807,488
(187,527,935)
198,191,546
10,663,611
17,207,758
17,207,758
-
-
-
-
-
-
(25,350,892)
25,411,758
60,866
(11,386,664)
11,378,513
-
(8,151)
896,768
(896,768)
-
(134,631)
134,631
-
-
-
27,924,084
notional Value
BooKValue
3,715,905,214
3,201,082,311
6,916,987,525
59,892,105
59,892,105
-
-
-
20,000,000
20,000,000
40,000,000
1,774,092,522
1,774,092,522
3,548,185,044
-
-
-
-
-
-
-
32,127,618
32,127,609
64,255,227
-
66,237,091
10,695,556,992
(172,619,822)
177,540,402
4,920,580
24,584,001
24,584,001
-
-
-
(134,531)
142,450
7,919
(18,519,784)
18,525,094
5,310
-
-
-
-
-
-
-
(1,840,126)
1,840,126
-
2,702,076
-
32,219,886
2009
notional Value
BooKValue
NOTES TO ThE CONSOLIDATED STATEMENTS
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11. LOANS AND ADVANCES TO CUSTOMERS
This account heading comprises the following:
Information on impairment movements for 2009 and 2008, is set out in Note 30.
This account was broken down as follows, by periods to maturity at 31 December 2009 and 2008:
2008
Domestic credit
Loans
Current account
Current account overdrafts
Other credit
Securitised domestic credit
Commercial paper
foreign loans
Loans
Current account
Other credit
Value adjustments relating to hedged assets (Note 10)
Interest receivable
Deferred income
Commissions associated with amortised cost
Interest
Overdue credit and interest
Impairment (Note 30)
2009
413,786,428
26,298,920
5,678,613
10,470,240
45,800,000
408,927,704
3,244,880
105,990
1,578,920
915,891,695
2,932,062
(4,071,982)
(9,378)
914,742,397
1,826,980
916,569,377
(37,938,559)
878,630,819
385,317,967
26,509,400
5,943,793
9,284,346
45,500,000
398,860,789
2,990,775
-
1,558,370
875,965,440
6,803,378
(4,286,005)
(129,055)
878,353,758
1,469,590
879,823,348
(14,413,141)
865,410,208
2008
Up to three months
Three months to one year
One to five years
More than five years
Current account overdrafts
2009
65,801,569
2,551
229,669,110
585,184,042
35,234,423
915,891,695
45,858,370
4,007,085
155,445,867
635,198,139
35,455,979
875,965,440
NOTES TO ThE CONSOLIDATED STATEMENTS
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Impairment, recognised at 31 December 2009 and 2008, was determined as follows:
The total nominal value of credit suffering from impairment at 31 December 2009 and 2008 was €56,677,002
and €37,953,533 respectively, including the amounts recognised in overdue credit.
Sector distribution of loans and advances to customers (nominal value), excluding overdue credit, at 31 December
2009 and 2008, was as follows:
2008
Specific analysis
Collective analysis
2009
24,709,087
13,229,472
37,938,559
7,779,275
6,633,866
14,413,141
2008
Mining industries
Manufacturing industries
Electricity, water and gas generation and distribution
food, beverages and tobacco industries
Basic metallurgical and metal industries
Textiles industry
Chemicals and synthetic or artificial fibres manufacture
Manufacture of transport material
Paper pulp, card and publishing and printing thereof
Manufacture of electrical and optical equipment
Other manufacturing industries
Manufacture of articles of rubber and plastic
Property, rentals and corporate services
Property
Other
Transport, warehousing and communications
Construction
wholesale / retail
health and social security
financial activities
hotels and restaurants
Other activities and collective, social and personal activities
Loans and advances to individual customers
2009
actiVity
-
136,503,901
15,014,835
8,512,486
9,607,544
6,070,629
4,411,704
789,468
890,489
1,588,217
787,294
55,379,659
183,826,975
275,685,222
100,821,357
27,478,122
22,585,671
6,000,000
5,007,454
42,623,662
12,307,007
915,891,696
aMount %
-
14.9
1.6
0.9
1.0
0.7
0.5
0.1
0.1
0.2
0.1
6.0
20.1
30.1
11.0
3.0
2.5
0.7
0.5
4.7
1.3
100
-
135,531,667
13,787,608
8,074,030
9,607,544
6,572,147
7,106,967
2,430,675
967,699
1,873,401
1,300,840
50,499,110
187,185,502
246,323,916
97,754,212
27,682,827
23,358,369
-
5,511,589
39,184,337
11,213,000
875,965,440
aMount %
-
15.5
1.6
0.9
1.1
0.8
0.8
0.3
0.1
0.2
0.1
5.8
21.4
28.1
11.2
3.2
2.7
-
0.6
4.5
1.3
100
NOTES TO ThE CONSOLIDATED STATEMENTS
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12. OThER TANgIBLE ASSETS
Information on movements in the “other tangible assets” account headings for the years 2009 and 2008 is set
out below:
2009
Property
for own use
Other property
Equipment
Computer equipment
Interior installations
furniture and material
Plant and machinery
Transport material
Other equipment
Security equipment
Tangible assets
in progress
Leased assets
Transport material
Balance at 31-12-08
460,636
-
77,513
-
242,512
26,912
55,658
-
-
-
-
863,230
acquiSitionS
(3,176,903)
(77,843)
(1,461,582)
(1,745,074)
(1,049,345)
(450,487)
(96,755)
(565)
(240,087)
-
(496,151)
(8,794,792)
13,093,384
77,843
1,698,023
1,822,356
1,316,217
546,159
143,375
1,367
240,087
2,646,002
737,434
22,322,247
accuMulated dePreciation
groSS aMount
2,646,002
-
-
-
-
-
5,000
-
-
(2,646,002)
(5,000)
-
tranSferS(net)
(479,428)
-
(162,109)
(18,403)
(93,167)
(27,084)
(35,565)
-
-
-
(93,800)
(909,557)
dePreciation for year
-
-
-
(2,133)
(98)
-
-
-
-
-
(72,138)
(74,368)
Write-offS (net)
12,543,691
-
151,845
56,746
416,119
95,499
71,712
802
-
-
70,345
13,406,759
net aMount
at 31-12-09
NOTES TO ThE CONSOLIDATED STATEMENTS
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Tangible assets in progress, at 31 December 2008, comprised expenses incurred on building works on Caixa –
Banco de Investimento’s headquarters which were completed in 2009.
13. INTANgIBLE ASSETS
Information on movements in the “intangible assets” account headings for the years 2009 and 2008 is set out below:
NOTES TO ThE CONSOLIDATED STATEMENTS
-
-
288,137
-
254,846
71,655
53,268
-
-
2,646,002
-
3,313,908
(168,764)
-
(272,264)
(34,420)
(93,044)
(32,100)
(16,651)
-
-
-
(196,650)
(813,893)
-
-
-
-
-
-
(9,150)
-
-
-
(129,264)
(138,414)
9,916,481
-
236,441
77,282
266,872
95,672
46,620
802
-
2,646,002
241,283
13,527,455
(3,008,139)
(77,843)
(1,198,926)
(1,712,878)
(956,962)
(419,092)
(157,434)
(4,457)
(240,087)
-
(660,565)
(8,436,383)
13,093,384
77,843
1,419,494
1,824,580
1,062,032
475,209
176,587
5,259
240,087
-
1,227,762
19,602,237
2008
Balance at 31-12-07
acquiSitionS accuMulated dePreciation
groSS aMount
dePreciation for year
Write-offS (net)
net aMount
at 31-12-09
Property
for own use
Other property
Equipment
Computer equipment
Interior installations
furniture and material
Plant and machinery
Transport material
Other equipment
Security equipment
Tangible assets in progress
Leased assets
Transport material
2009
Automatic data
processing systems
Intangible assets
in progress
Balance at 31-12-08
87,546
258,193
345,739
(3,732,651)
-
(3,732,651)
4,046,928
68,081
4,115,009
36,578
(36,578)
-
191,744
258,193
449,936
(246,658)
-
(246,658)
-
(31,503)
(31,503)
acquiSitionS accuMulated dePreciation
groSS aMount
tranSferS net aMount at
31-12-09
dePreciation for year
adJuStMentS
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fixed assets in progress, at 31 December 2009 and 2008, comprised expenses incurred on the acquisition of
software not yet in use at the said dates.
14. INVESTMENTS IN ASSOCIATED COMPANIES
The “investments in associated companies” account heading, at 31 December 2008, comprised a 25% equity
investment in grupo Pestana Pousadas Investimentos Turísticos, SA. (Pestana Pousadas group).
Caixa – Banco de Investimento group had a sales option (see Note 10) on the investment in Pestana Pousadas
group under a shareholders’ agreement. The option may be taken up from May 2009 at the highest of the
following prices:
Cost price;
Valuation price determined by an independent entity. If the implicit valuation is higher than a pre-defined rate
of return, the surplus will be split up between Caixa – Banco de Investimento group and Pestana group in
accordance with a predefined percentage.
The investment was disposed of to fCR grupo CgD, in April 2009, for the amount of €5,907,796 originating
capital gains of €2,420,310 (Note 27). The accessory capital payments and partners’ loans made by the group for
€3,287,500 and €712,500, respectively were also alienated.
Sumol + compal, S.a.
Caixa Desenvolvimento had an equity investment of 49% in Compal – Companhia Produtos de Conservas Ali-
mentares, S.A. (Compal), at 31 December 2007 at a cost price of €61,250,000 including supplementary contri-
butions of €56,350,000.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Automatic data
processing systems
Intangible assets
in progress
162,045
-
162,045
(3,513,260)
-
(3,513,260)
3,724,553
232,944
3,957,497
accuMulated dePreciation
groSS aMount
164,863
(164,863)
-
314,277
68,081
382,358
(223,924)
-
(223,924)
Balance at 31-12-07
acquiSitionS tranSferS dePreciation for year
net aMount at
31-12-08
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The group made contact with Sumolis, in 2007, with a view to the disposal of the Compal equity investment, with
a promissory sales agreement having been entered into with this subsidiary in first quarter 2008.
2008 witnessed the following developments with this operation:
The Competition Authority issued a declaration of non-opposition to Compal’s sale on 14 August 2008, pursuant
to which Caixa Desenvolvimento disposed of 29.9% of Compal’s share capital for €42,426,257, including
accessory capital payments of €34,385,000;
A general meeting of shareholders approved the merger project between Compal and Sumol+Compal, gestão
de Marcas, S.A. in December 2008 which was formalised on 23 December 2008 with effect from 31 December
2008. In accordance with the agreement Caixa Desenvolvimento disposed of 5.0225% of the company’s share
capital for €7,334,427 including accessory capital payments of €5,775,875;
After the merger, Sumol+Compal, S.A. issued 20,619,055 new shares, fully subscribed and paid up by Caixa
Desenvolvimento and fundo de Capital de Risco grupo CgD – Caixa Capital comprising the surrender of Compal
shares. The shares received were valued at €20,503,541.
As a result of these operations, the group recognised capital gains of €9,031,539 and €6,505,556, in 2008,
registered in the “other operating income - income generated by associated companies ” (Note 27) and “income
from other financial assets recognised at fair value through profit or loss” (Note 26) account headings.
Caixa Desenvolvimento’s equity investment in Sumol+Compal at 31 December 2009 and 2008, comprised
6.921% of its share capital, recognised in the “financial assets at fair value through profit or loss” account heading
(Note 8). Caixa Desenvolvimento has a sales option on the shares which can be exercised forty three months after
the merger occurring in the meantime, reflected in the investment’s book value.
Information on the book value of these investments in 2009 and 2008 and respective impact in the consolidated
financial statements is set out below:
NOTES TO ThE CONSOLIDATED STATEMENTS
Balance at 31 december 2007
Disposal of equity investment in Compal
Income generated by associated companies
Supplementary contributions
Balance at 31 december 2008
Disposal of equity investment in grupo Pestana
Income generated by associated companies
Balance at 31 december 2009
coMPal
56,493,231
(54,727,129)
(1,766,102)
-
-
-
-
-
total
59,607,908
(54,727,129)
(2,093,292)
700,000
3,487,487
(5,907,797)
2,420,310
-
gruPo PeStana
3,114,677
-
(327,190)
700,000
3,487,487
(5,907,797)
2,420,310
-
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15. INCOME TAX
Tax assets and liabilities balances, at 31 December 2009 and 2008, were:
The “income tax to be recovered” account heading, at 31 December 2009 and 2008, included €657,900 in
respect of a claim made by the bank on its IRC for 2000.
The following table provides details and information on deferred tax movements in 2009 and 2008:
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Current tax assets
Income tax to be recovered
Current tax liabilities
Income tax payable
Deferred tax assets
Deferred tax liabilities
2009
657,900
(18,412,651)
(17,754,751)
19,394,538
(1,112,807)
18,281,731
828,868
(2,609,956)
(1,781,088)
5,215,771
(1,426,821)
3,788,950
Impairment and provisions disallowed for fiscal purposes
Commissions
Revaluation of financial derivatives
Revaluation of fixed assets disallowed for fiscal purposes
Valuation of available for sale financial assets
Impairment of available for sale financial assets
Valuation of other assets recognised at fair value through
profit or loss
Value adjustments on hedged assets
Deferral of capital gains tax on the disposal of financial
investments (Note 2.11)
fiscal benefits – Venture capital (Note 2.11)
2009
1,284,398
1,214,157
300,371
(184,365)
958,055
475,826
(21,726)
(246,499)
(543,827)
552,562
3,788,950
-
-
-
-
(512,205)
-
-
-
-
-
(512,205)
Balance at 31-12-08
change in incoMe
change in Share-holderS’ equity
Balance at 31-12-09
7,728,302
6,857,122
(150,186)
5,942
-
(246,412)
10,863
123,249
148,268
528,838
15,005,986
9,012,700
8,071,279
150,185
(178,423)
445,850
229,414
(10,863)
(123,250)
(395,559)
1,081,400
18,282,731
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The “other” column, in 2008 , reflects deferred tax movements recognised as a charge to the current tax account
heading.
The group does not recognise deferred tax assets whenever the existence of future taxable income allowing their
respective use is not probable. Deferred tax assets of €787,431 and €1,606,441 respectively, were not recog-
nised by Caixa Capital at 31 December 2009 and 2008, respectively.
NOTES TO ThE CONSOLIDATED STATEMENTS
Impairment and provisions disallowed for fiscal purposes
Commissions
Revaluation of financial derivatives
Revaluation of fixed assets disallowed for fiscal purposes
Valuation of available for sale financial assets
Impairment of available for sale financial assets
Valuation of other assets recognised at fair value through
profit or loss
Value adjustments on hedged assets
Carry back of losses
Deferral of capital gains tax on the disposal of financial
investments (Note 2.11)
fiscal benefits – Venture capital (Note 2.11)
1,275,824
342,079
450,557
(190,306)
260,693
486,184
(32,589)
(369,749)
275,526
(692,096)
707,280
2,513,401
-
-
-
-
1,003,845
-
-
-
-
-
-
1,003,845
8,574
872,078
(150,186)
5,941
24,403
-
10,863
123,250
(275,526)
148,269
(154,718)
612,948
1,284,398
1,214,157
300,371
(184,365)
958,055
475,826
(21,726)
(246,499)
-
(543,827)
552,562
3,788,950
-
-
-
-
(330,886)
(10,358)
-
-
-
-
-
(341,244)
2008
Balance at 31-12-07
change in incoMe
change in ShareholderS’
equity
Balance at 31-12-08
other
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Information on tax on profit recognised in the income statement and the tax burden, measured by the ratio
between the appropriation for tax on profit and net profit for the year before tax is set out below:
Current tax reflected in reserves for the amount of €1,962,571 and €2,795,631, at 31 December 2009 and
2008, respectively, refers to the tax associated with the revaluation of debt securities classified as available for sale
financial assets in the year, for the purposes of determining tax income for the year. The deferred tax recognised in
the same account heading refers to the revaluation during the year of equity investments also classified as available
for sale financial assets, whose fiscal effects will only be produced at the time of disposal.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
having an impact on net income for year
Current tax
year
Adjustments relating to previous years
Deferred tax
Recognition and reversal of temporary differences
Total tax in income statement
Income before tax and minority shareholders’ interests
Tax burden
having an impact on reserves
Current tax
Deferred tax
Total tax in reserves
total tax in shareholders’ equity
2009
26,103,823
(4,527)
26,099,296
15 005,986
11,093,310
56,831,345
19.52%
1,963,571
512,205
2,475,776
13,569,086
12,914,013
55,533
12,969,546
(612,948)
12,356,599
42,349,632
29.18%
(2,795,361)
(1,003,845)
(3,799,207)
8,557,393
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Information on the reconciliation between the nominal and effective tax rate in 2009 and 2008 is set out below:
In conformity with current legislation, tax returns are subject to review and correction by the tax authorities for
a period of four years. The bank’s tax returns for 2006 to 2009 are therefore still subject to review and the
possibility of correction.
The board of directors considers that any correction is unlikely to have a significant impact on the financial statements,
at 31 December 2009.
NOTES TO ThE CONSOLIDATED STATEMENTS
income before tax and minority shareholders’ interests
Determination of tax at nominal rate
fiscal losses per corporate grouping
Impact of tax regime on activities performed
by Madeira Offshore Branch (Note 2.11)
fiscal benefits
Income generated by associated companies - tax regime for Caixa
Capital and Caixa Desenvolvimento discontinued operations
financial instruments with embedded derivatives
Income generated by associated companies
fiscal regime for fCR Energias Renováveis
fiscal gains
Provisions disallowed for fiscal purposes
Separate source-based taxation
Interest disallowed for fiscal purposes
Other
2009
26.50
(0.59)
(7.03)
(1.75)
(0.50)
-
(1.13)
(0.68)
0.02
3.96
0.16
0.04
0.51
19.52
rate (%) taX
56,831,345
15,060,307
(333,453)
(3,994,219)
(996,872)
(283,000)
-
(641,382)
(386,891)
11,656
2,249,357
93,033
22,491
292,284
11,093,310
2008
26.50
(1.10)
(0.42)
(0.18)
(5.41)
(0.45)
1.31
1.73
(0.02)
5.69
0.22
1.10
0.21
29.18
rate (%) taX
42,349,632
11,222,652
(464,849)
(177,739)
(78,067)
(2,292,248)
(190,945)
554,722
733,614
(7,748)
2,409,660
92,041
467,920
87,586
12,356,599
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16. OThER ASSETS
This account heading comprises the following:
The amounts of €7,127,212 and €10,544,834 at 31 December 2009 and 2008, respectively, refer to amounts
receivable from Caixa Desenvolvimento’s June 2002 disposal of its investment in Barraqueiro, SgPS, S.A. Based
on the initial agreement, the part of the sales price not settled would be paid in four equal successive instalments,
falling due on the last working day of the months of December 2003 to December 2006. An addendum was
appended to the initial agreement of 7 february 2006, in which Caixa Desenvolvimento received 50% of the
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Debtors and other loans and advances
Proceeds from sale of the equity investment in Inácio & filhos, S.A. (Note 8)
Proceeds from sale of the equity investment in Barraqueiro
Capital
Interest receivable
Partners’ loans
Partners’ loans acquired as part of the liquidation of fCR PME (Note 20)
Other
Other investments
Accessory capital payments acquired as part of the liquidation of fCR PME (Note 20)
Other accessory capital payments
Debtors – futures trading
Other debtor balances acquired as part of the liquidation of fCR PME (Note 20)
Miscellaneous
other assets
Income receivable
Other interest receivable
Other income receivable
Deferred expenses
Insurance
Leasing instalments
Other deferred expenses
Prepayments and accrued income
Securities operations pending settlement
Other lending operations pending settlement
Overdue credit and interest
Impairment (Note 30)
2009
11,629,371
7,127,212
83,194
-
621,804
-
-
2,412,435
2,357,806
6,951,256
31,183,078
48,846
-
823,014
823,014
9,916
3,812
996,273
1,010,001
15,559,066
385,195
15,944,261
5,972,841
54,982,041
(17,956,869)
37,025,172
-
10,544,834
328,099
125,000
18,414,889
187,500
411,665
1,752,804
1,588,519
4,986,931
38,340,241
48,846
234,119
33,510
267,629
8,892
46,912
1,161,787
1,217,591
21,213,953
283,249
21,497,202
5,190,311
66,561,819
(6,836,509)
59,725,310
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outstanding principal and a new payments schedule was agreed, comprising four payments falling due on the last
working day of June over the period 2007 - 2010. Interest, at the market rate, is payable on the overdue amounts
and paid on the date of liquidation of each instalment. Caixa Desenvolvimento has a pledge on the shares to
guarantee payment of the outstanding amounts.
Information on the “partners’ loans” account heading at 31 December 2009 and 2008, is set out below:
Interest at market rates is payable on partners’ loans at 31 December 2009 and 2008, with the following periods
to maturity to reimbursement:
The “miscellaneous debtors” account heading at 31 December 2009 and 2008 includes €4,181, 933 and €3,631,516
in amounts receivable from customers for the invoicing of services provided by the bank.
The “other deferred expenses” account heading, at 31 December 2009 and 2008 includes €709,891 and €932,188
respectively, in respect of the investment in Agrupamento Complementar de Empresas TREM II – Aluguer de
Material Circulante, ACE.
The “securities operations pending settlement” account heading, at 31 December 2009 and 2008, comprises the
value of the operations for the sale of securities for the year and settled in the few first days of the following year.
At 31 December 2009 and 2008, the “overdue credit and interest” account heading included overdue loans of
€3,551,441, originated in Caixa Valores and deriving from securities trading operations in 1992 by a group of
customers. Impairment for the same amount has been allocated to this credit.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Mwh – gestão de Recursos Naturais, S.A. (Nota 8)
A. Silva & Silva – Imobiliário e Serviços, S.A. (Nota 9)
Sobreovento – Energias Alternativas, Lda.
grupo Pestana – Pousadas Investimentos Turísticos, S.A. (Nota 14)
MARL Energia – Central fotovoltaica, Lda.
Other
2009
621,804
-
-
-
-
-
621,804
-
15,529,055
1,990,000
712,500
183,334
125,000
18,539,889
2008
Three months to one year
One to five years
More than five years
Unspecified
2009
621,804
-
-
-
621,804
-
13,756,172
4,658,717
125,000
18,539,889
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Caixa Valores took legal action against the group of customers in September 1994, accusing them of responsibility
for realising the referred to operations and claiming an amount of €6,003,180 plus interest accruing since June
1993. As the action is still in progress, the bank has not recognised any asset related with this situation.
Information on “impairment” at 31 December 2009 and 2008, is set out below:
17. OThER CREDIT INSTITUTIONS’ RESOURCES
This account heading comprises the following:
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Other investments and partners’ loans:
Other
Debtors
Proceeds from sale of the equity investment in Inácio & filhos, S.A. (Note 8)
Caixa Valores
Overdue credit and interest
Overdue invoices
Customers bad or doubtful debts
Other
2009
-
9,754,371
3,551,441
1,311,963
465,448
299,047
2,574,599
17,956,869
274,495
-
3,551,441
1,227,898
384,273
-
1,398,402
6,836,509
2008
Credit institutions’ resources In Portugal
Very short term deposits
Term deposits
Sight deposits
Credit institutions’ resources abroad
Term deposits
Sight deposits
Interest payable
2009
475,945,796
597,145,000
157,106
34,585,000
1,292
1,107,834,194
1,094,769
1,108,928,963
1,109,158,795
89,100,000
170,665
38,250,000
1,364
1,236,680,824
950,446
1,237,631,270
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Information on the periods to maturity of other credit institutions’ resources is set out below:
18. CUSTOMER RESOURCES AND OThER LOANS
This account heading comprises the following:
The following information is provided on deposits at 31 December 2009 and 2008 in accordance with their
respective period to maturity:
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Sight deposits and overdrafts
Up to three months
Three months to three years
2009
158,398
1,006,275,796
101,400,000
1,107,834,194
172,029
1,147,408,795
89,100,000
1,236,680,824
2008
Deposits
Sight
Term
Value adjustments relating to hedged liabilities (Note 10)
Interest payable on deposits
2009
53,673,824
83,499,915
137,173,739
271,060
137,444,799
1,680,175
139,124,974
41,366,078
76,083,032
117,449,110
160,731
117,609,841
1,552,378
119,162,219
2008
Up to three months
Three months to one year
One to five years
More than five years
2009
93,642,124
32,103,400
5,000,000
6,428,215
137,173,739
100,845,648
4,300,000
-
12,464,193
117,609,841
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19. PROVISIONS AND CONTINgENT LIABILITIES
PROVISIONS
Information on “provisions for other risks” movements in 2009 and 2008 is set out below:
Provisions for guarantees provided and commitments assumed are calculated on the basis of the estimated losses
associated with operations in progress, in accordance with a separate analysis and Caixa geral de Depósitos
group parameters.
Provisions for other risks comprise the group’s best estimate of eventual amounts to be expended on settling
legal, fiscal and other contingencies. They also reflect the effect of any depreciation on financial assets.
The “provision for other risks and liabilities – other risks ” account heading at 31 December 2008, included
€6,674,441 for the depreciation of the equity investment in La Seda Barcelona, S.A. The provision was cancelled
after the sale in 2009 (Note 9).
NOTES TO ThE CONSOLIDATED STATEMENTS
for other risks and liabilities
guarantees and commitments
Other risks
2009
377,293
11,935,816
12,313,109
-
(18,166,214)
(18,166,214)
Balance at 31-12-08
increaSeS cancellationS and recoVerieS
Balance at 31-12-09
143,294
19,839,666
19,982,959
520,587
13,609,267
14,129,854
537,003
2,530,986
3,067,989
(159,710)
(5,000,000)
(5,159,710)
-
14,404,830
14,404,830
377,293
11,935,816
12,313,109
2008
Balance at 31-12-07
increaSeS cancellationS and recoVerieS
Balance at 31-12-08
for other risks and liabilities
guarantees and commitments
Other risks
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CONTINgENT LIABILITIES AND COMMITMENTS
Contingent liabilities associated with banking activity are recognised in off-balance sheet account headings as
follows:
The “assets-backed guarantee” account heading, at 31 December 2009 and 2008 comprises the nominal value
of debt securities pledged, by the bank (Note 8), in respect of the following situations:
The object of the Deposit guarantee fund is to guarantee customers’ deposits in conformity with the limits fixed
in the general Credit Institutions Regime. This takes the form of regular annual contributions. A part of the said
contributions takes the form of an irrevocable commitment to realise the respective contributions when requested
by the fund. These amounts are not recognised in costs. The total value of commitments assumed since 1996
totals €162,182.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Contingent liabilities
guarantees and sureties
Asset-backed guarantees (Note 8)
Commitments
Revocable lines of credit
Securities subscriptions
Other irrevocable commitments
Potential liability to Investors’ Indemnity System
Term liabilities to Deposit guarantee fund
Other
Liabilities for the provision of services
Deposit and custody of securities
Amounts under bank management
2009
68,226,250
49,366,000
117,592,250
96,773,915
29,741,054
-
2,052,436
162,182
83,135
128,812,722
7,314,299,425
342,246,565
78,850,623
44,150,000
123,000,623
142,973,041
31,041,679
299,524
2,052,436
162,182
83,135
176,611,997
4,825,780,957
195,582,587
2008
“SPgT” (Major Transactions Processing System)
Caixa geral de Depósitos, S.A. – Euronext
Investors’ Indemnity System (SII)
Deposit guarantee fund
2009
44,666,000
2,500,000
1,950,000
250,000
49,366,000
40,600,000
2,000,000
1,550,000
-
44,150,000
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The balance on the “amounts under bank management” account heading, at 31 December 2009 and 2008 comprises
the value of the following venture capital funds managed by Caixa Capital, excluding outstanding capital:
NOTES TO ThE CONSOLIDATED STATEMENTS
fCR grupo CgD – Caixa Capital
fCR Energias Renováveis – Caixa Capital
fCR Mezzanine
fCR Empreender +
incoMe
2008 2009
271,071,134
34,092,931
29,726,811
7,355,689
342,246,565
Value offund
5,341,566
4,544,061
(273,189)
(144,311)
netfund
166,033,717
29,548,870
-
-
195,582,587
Value ofincoMe
netfund
(16,229,428)
(4,651,314)
-
-
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20. OThER LIABILITIES
This account heading comprises the following:
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Creditors and other resources
Price adjustments – Equity swap (Note 10)
Outstanding capital payments (Note 9)
Central and local government
Value added tax
Deduction of tax at source
Social security contributions
futures and options
Deferred interest and dividends
Miscellaneous creditors
IRC payable
Creditors – securities operations
Suppliers of leased assets
Other suppliers
Cost price of assets acquired in fCR PME liquidation
Other
Costs payable
Interest payable
Other costs payable
Additional remuneration
holiday and holiday subsidies
Pension fund
Potential capital gains on subsidiaries acquired
as part of the liquidation of fCR PME (Note 8)
Other
Deferred income
Agencying commissions
Commissions on provision of guarantees and other contingent liabilities
Other accrual and deferred income accounts
Securities operations pending settlement
Lending operations pending settlement
Commissions payable – syndicating of loan operations
Other
2009
8,817,254
5,336,609
257,857
2,100,939
237,863
240,300
183,397
884,172
748,108
96,245
681,213
896,199
1,747,876
22,228,032
12
3,304,924
1,693,960
384,975
-
1,791,518
7,175,389
996,222
11,655
1,007,877
20,323,034
37,235,743
278,715
57,837,492
88,248,790
13,236,577
-
2,440,083
5,138,035
261,567
-
162,454
884,172
754,445
336,529
1,303,669
1,696,284
180,431
26,394,246
178
2,709,829
1,652,434
377,946
104,381
1,077,671
5,922,439
913,128
58,612
971,740
27,524,679
10,684,598
37,947
38,247,224
71,535,649
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The balance on the “Miscellaneous creditors – IRC payable” account heading at 31 December 2008, comprises
a reimbursement in 2008, by the Directorate general for Tax Affairs in the judicial proceedings related with the
payment of IRC for 1997. The amount will be settled after a decision has been made on the amount to be paid
by the bank on its 1996 IRC return.
The balance of the “creditors – securities operations” account heading at 31 December 2009 and 2008, refers to
the current accounts of brokerage operations customers.
The “securities operations pending settlement” account heading at 31 December 2009 and 2008, comprises the
value of securities purchase operations at the end of the year and settled in the first few days of the following year.
The “commissions payable – syndicating of loan operations” account heading at 31 December 2009 and 2008,
comprises amounts charged to customers for the structuring of syndicated loan operations in which CgD group
supplies all or a significant part of the loan with the latter objective of placing it with other credit institutions.
As described in Note 2.14, the Banco recognises the part of the commissions received in proportion to the total
amount of credit the group intends to syndicate in this account heading.
Information is provided below on the value of the assets acquired from the winding up and liquidation of fCR
PME at 31 December 2009 and 2008:
The acquisition of assets will be settled as the corresponding assets are received. Under the terms of the
agreements, the difference between the amounts generated on the disposal of the subsidiary companies and
debtor balances realised by the group should be paid or reimbursed by the fund’s investors. At 31 December
2008, the potential capital gains on the assets acquired totalled €104,381 (Note 8).
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Assets at fair value through profit or loss (Note 8)
Plataforma, SgPS, S.A.
Ng – Negócios e gestão, S.A.
Other
Other assets (Note 16)
Debtors
Amounts received and not yet transferred
Partners’ loans
Other investments
Impairment
2009
-
-
-
-
2,357,806
227,017
-
-
2,584,823
(1,688,624)
896,199
1,119,943
-
1
1,119,944
1,588,519
-
125,000
187,500
1,901,019
(1,331,943)
1,689,020
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21. SUBSCRIBED CAPITAL AND TREASURy STOCk
Subscribed capital comprises 81,250,000 shares with a nominal value of one euro each.
Information on the bank’s equity structure, at 31 December 2009 and 2008, is set out below:
The bank owned 4,658,000 of its own shares at a cost price of €5,999,453, at 31 December 2009 and 2008.
NOTES TO ThE CONSOLIDATED STATEMENTS
gerbanca, SgPS, S.A.
Companhia de Seguros
fidelidade-Mundial, S.A.
Treasury stock
Other
2009
68,348,445
8,007,635
4,658,000
235,920
81,250,000
no.ShareS
%
84.1
9.9
5.7
0.3
100
2008
68,348,445
8,000,640
4,658,000
242,915
81,250,000
no.ShareS
%
84.1
9.9
5.7
0.3
100
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22. RESERVES, RETAINED EARNINgS AND PROfIT fOR yEAR
The composition of the reserves and retained earnings account headings at 31 December 2009 and 2008, was
as follows:
LEgAL RESERVE
In conformity with Decree Law 298/92 of 31 December, altered by Decree Law 201/2002 of 26 September, the
bank is required to set up a legal reserve fund until equal to its share capital or sum of free reserves and retained
earnings, if higher, annually transferring an amount of not less than 10% of net profits to the reserve.
This reserve may only be used to cover accrued losses or share capital increases. The value of the legal reserve
registered by the bank at 31 December 2009 and 2008 totalled €38,001,636 and €34,750,521 respectively.
LEgAL REVALUATION RESERVE
The bank revalued its fixed assets in 1998, under Decree Law 31/98 of 11 february. The increase of €4,338,403,
in the net value of the fixed assets was recognised in the “revaluation reserves” account heading in the separate
accounts.
Revaluation reserves may only be used to cover accrued losses or share capital increases.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Other reserves and retained earnings
Legal reserve
free reserve
Legal revaluation reserve
Retained earnings
fair value reserves
Potential gains
fiscal effect
Current tax
Deferred tax
Profit for year
2009
38,001,636
42,351,759
4,338,403
48,515,598
133,207,396
(1,410,835)
1,137,457
445,850
171,472
45,606,639
178,985,507
34,750,521
46,611,160
4,338,403
40,831,896
126,531,980
(49,850,070)
3,100,028
958,055
(45,791,987)
30,242,185
110,982,178
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fAIR VALUE RESERVES
The fair value reserve recognises potential capital gains and losses on available for sale financial assets, net of the
corresponding fiscal effect.
DIVIDENDS
A resolution was passed at the general shareholders’ meeting of 20 february 2009, to distribute dividends of
€25,000,000 for 2008 of which an amount of €1,433,231 was allocated to treasury stock.
PROfIT fOR yEAR
Information on the bank’s consolidated net income for 2009 and 2008 is set out below:
According to the accounting policies applicable to the sector, Caixa Capital and FCR Energias Renováveis recognise
the valuation of all of their investments in the income statement. These valuations are recognised in the fair value
reserve in the case of “available for sale financial assets” in the group’s consolidated accounts.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Bank’s separate net income (statutory accounts)
Subsidiaries’ contributions
Caixa Capital
Caixa Desenvolvimento
fCR Energias Renováveis – Caixa Capital
Income generated by associated companies (Note 14)
Correction of gains on associated companies
Income from operations between group companies
Impact of conversion of separate accounts to IfRS
Valuation of Caixa Capital subsidiaries
Valuation of fCR Energias Renováveis subsidiaries
Caixa Capital
Impairment on lending
Other
consolidated net income
2009
41,969,026
3,346,254
(1,721,821)
4,135,096
5,759,529
2,420,310
(303,785)
-
(958,474)
(2,806,525)
(473,441)
-
45,606,639
32,511,144
(2,738,518)
1,392,858
(4,232,696)
(5,578,356)
(2,093,292)
5,602,397
(354,367)
(1,070,509)
1,713,491
(490,420)
2,097
30,242,185
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23. MINORITy ShAREhOLDERS’ INTERESTS
This account heading fully comprised the minority interests of 9% in fCR Energias Renováveis investment units
at 31 December 2009 and 2008. The proportion of losses determined by FCR Energias Renováveis attributable to
minority shareholders in 2009 and 2008 totalled €131,397 and €249,152, respectively.
24. INTEREST AND INCOME AND INTEREST AND SIMILAR ChARgES
These headings comprise the following:
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Interest and similar income
Interest on loans and advances to credit institutions in Portugal
Interest on domestic credit
Interest on foreign loans
Interest on financial assets heldfor trading
Securities
Derivatives – swaps
Interest rate guarantee contracts
Interest on other financial assets at fair value
Securities
Interest on available for sale financial assets
Interest on hedge derivatives
Interest on debtors and other investments
Debtors
Partners’ loans
Interest on cash assets
Other interest
Commissions received associated with amortised cost
2009
636,845
16,346,471
12,326,706
9,362,748
209,232,515
10,792
1,279,486
3,979,593
532,339
406,160
375,940
63,783
6,537
254,559,916
760,064
255,319,980
956,177
31,615,619
27,146,182
11,659,791
213,079,856
-
2,533,382
3,291,539
865,702
671,640
1,101,605
158,055
74,049
293,153,597
898,621
294,052,218
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25. INCOME AND COSTS ON SERVICES AND COMMISSIONS
These headings comprise the following:
The “income from services and commissions – other ” account heading for 2009 and 2008, essentially includes
financial advisory commissions. The “costs of services and commissions – for banking services provided by third
parties” account heading included €27,789,474 and €3,073,251, respectively, relating to commissions to be
passed on to other credit institutions in future syndications in accordance with the policy described in Note 2.14.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Interest and similar charges
Interest on deposits
Central and local government
Other resident entities
Other non-resident entities
Interest on credit institutions’ resources in Portugal
Interest on credit institutions’ resources abroad
Interest on financial liabilities held for trading
Swaps
Interest on hedge derivatives
Other interest and similar costs
2009
472,479
1,142,295
4
1,614,778
11,769,615
321,373
205,385,690
876,095
55,186
218,407,959
220,022,737
479,207
4,905,115
382,623
5,766,945
51,863,289
366,443
210,376,171
1,012,014
55,035
263,672,952
269,439,897
2008
Income from services and commissions
for services provided
Organisation of operations
Venture fund capital management (Caixa Capital)
Deposit and custody of securities
Other
guarantees provided
Commissions for operations realised by third parties
Commissions for commitments to third parties
Other
Costs of services and commissions
Commissions for operations realised by third parties
for banking services provided by third parties
for operations on financial instruments
Other
2009
14,534,285
4,330,446
897,183
20,362,838
488,672
5,896,553
125,265
47,098,588
93,733,830
1,641,596
29,471,585
76,447
10,609
31,200,237
14,257,390
2,337,067
621,527
15,792,954
508,868
8,219,050
155,251
25,336,501
67,228,608
2,084,480
4,642,003
372,326
11,103
7,109,912
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26. INCOME fROM fINANCIAL OPERATIONS
These headings comprise the following:
The “income from other financial assets at fair value through profit or loss” account heading, in 2009, included
€7,878,971 for the disposal of the equity investment in Manuel Inácio & filhos, SgPS, S.A. (Note 8), with impairment
for the same amount having been recognised in receivables (Note16).
The “income from other assets recognised at fair value through profit or loss” account heading, in 2008, included
€6,505,556 for the equity investment in Compal (Note 14).
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
foreign exchange income
Revaluation of foreign exchange position
Income from assets and liabilities held for trading
Debt instruments
Equity instruments
Derivatives
Interest rate swaps
Equity swaps
futures
Options
Interest rate guarantee contracts
Currency forwards
Commodity forwards
Other
Income from other financial assets recognised at fair value through profit or loss
Debt instruments
Equity instruments
Income from available for sale financial assets
Debt instruments
Equity instruments
Income from hedge operations
Interest rate swaps
Income from other financial operations
Value adjustments relating to hedged assets and liabilities
Other
2009
442,006
9,076,399
13,053,942
2,753,380
(8,717,473)
(6,369,828)
(8,151)
183,467
18
15,663
5,251
9,992,668
70,617
8,243,918
8,314,535
3,898,693
(4,960,242)
(1,061,549)
56,708
(89,779)
111
(89,890)
17,654,478
67,269
1,798,064
(24,007,039)
2,723,410
24,236,038
(11,888,424)
716,848
293,851
7,919
-
-
(6,119,333)
(208,344)
5,329,026
5,120,682
25,322
(3,600,112)
(3,574,790)
(225,243)
286,850
123
286,973
(4,444,442)
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Information on income from equity instruments classified as available for sale financial assets in 2009 and 2007
as is set out below (Note 9):
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Income from available for sale financial assets
Sobreovento – Energias Alternativas, Lda.
Vista Alegre Atlantis
helios I hyperion Energy Investments S.L.
helios II hyperion Energy Investments S.L.
Prado Cartolinas da Lousã, S.A.
Parque Eólico da Penha da gardunha, Lda.
Enacol – Empresa Nacional de Combustíveis de Cabo Verde, S.A.R.L.
Losses on available for sale financial assets
La Seda Barcelona
Eurofrozen – Ind. Com. Prod. Alim., S.A.
EDP Renováveis
Prado karton, S.A.
Companhia Papel do Prado, S.A.
2009
2,009,005
523,037
89,208
89,208
30,204
-
-
2,740,662
(6,674,441)
(763,909)
(136,571)
(98,862)
(27,121)
(7,700,904)
(4,960,242)
-
-
-
-
-
1,478,643
60,630
1,539,273
(5,139,385)
-
-
-
-
(5,139,385)
(3,600,112)
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27. OThER OPERATINg INCOME
These headings comprise the following:
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Other operating income
Income generated by associated companies (Note 14)
Staff on loan – CgD group
Reimbursement of expenses
Provision of miscellaneous services
Recovery of interest and expenses on overdue credit
gains on non-financial assets
Other tangible assets
Other
Other operating costs
Tax
Indirect taxes
Stamp duty
Charges
Tax on road transport
Other
Direct taxes
Other taxes
TREM II
Donations and subscriptions
Contributions to Deposit guarantee fund
Losses on tangible assets
Other
Other operating income (net)
2009
2,420,310
1,412,012
917,541
477,690
44,323
17,500
282,931
5,572,307
63,051
82,932
1,133
6
220,359
367,481
223,298
33,343
40,698
770
123,152
421,262
788,743
4,783,565
9,031,539
1,178,567
360,448
474,081
-
13,093
219,884
11,277,612
337,101
82,650
1,892
-
625,635
1,047,278
311,288
33,066
29,648
3,999
75,446
453,447
1,500,725
9,776,887
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28. EMPLOyEE COSTS
This account heading comprises the following:
The average number of staff employed by the bank and its subsidiaries’ in 2009 and 2008, excluding the board
of directors and inspection bodies was 174 and 175, respectively and distributed as follows:
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Remuneration paid to board of directors and inspection bodies
Remuneration paid to employees
Mandatory social costs
Costs of remuneration
Pension costs (Note 2.13)
Other mandatory social costs
Other employee costs
2009
1,887,623
12,404,647
14,292,270
2,185,929
393,986
91,408
2,671,323
597,346
17,560,939
934,177
12,265,115
13,199,292
2,146,026
405,169
91,232
2,642,427
406,836
16,248,555
2008
Senior management
Technical and line management
Administrative and auxiliary staff
2009
75
77
22
174
71
76
28
175
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29. OThER ADMINISTRATIVE EXPENSES
This account heading comprises the following:
The minimum payments to be made by the bank in 2010 for operating lease contracts in force at 31 December
2009 totalled €100,473.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Specialised services
Rents and leases
Maintenance and repair
Travel and expenses
Advertising and publications
Communications
water, electricity and fuel
Office consumables
Employee training
Insurance
Publications
Other external services
Other third party supplies
2009
6,062,264
1,011,510
1,056,210
671,008
574,071
476,723
127,965
98,306
75,775
45,017
59,942
126,887
75,316
10,460,994
5,163,027
1,324,550
1,140,740
554,854
498,479
482,017
108,209
107,413
42,790
61,439
48,614
143,039
44,363
9,719,534
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30. IMPAIRMENT
Information on impairment movements in 2009 and 2008 is set out below:
The “other” column, in 2008, included €1,875,000 relating to the equity investment in Manuel Inácio & filhos,
SgPS, S.A. (Note 8).
NOTES TO ThE CONSOLIDATED STATEMENTS
Loans and advances
to customers (Note 11)
Debtors and other
investments (Note 16)
Available for sale assets (Note 9)
2009
14,413,141
6,836,509
13,357,047
34,606,696
(8,373,173)
(264,571)
-
(8,637,744)
31,948,475
9,158,613
34,192
41,141,280
(49,884)
-
(61,053)
(110,937)
Balance at 31-12-08
cancellationS and recoVerieS
increaSeS
-
(317,863)
(7,891,778)
(8,209,641)
uSe
-
2,544,181
-
2,544,181
other eXchange differenceS
Balance at 31.12.09
37,938,559
17,956,869
5,438,408
61,333,835
2008
8,553,716
6,639,755
9,592,196
24,785,666
(3,437,043)
(123,336)
-
(3,560,379)
9,216,205
203,332
3,666,616
13,086,153
-
(4,064)
-
(4,064)
-
120,822
-
120,822
80,263
-
98,235
178,498
14,413,141
6,836,509
13,357,047
34,606,696
Balance at 31-12-07
cancellationS and recoVerieS
increaSeS uSe other eXchange differenceS
Balance at 31.12.08
Loans and advances
to customers (Note 11)
Debtors and other
investments (Note 16)
Available for sale assets (Note 9)
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31. RELATED ENTITIES
All companies controlled by CgD group, associated companies and the bank’s management bodies are considered
to be entities related with the bank.
BALANCES wITh gROUP COMPANIES
The principal balances with Caixa geral de Depósitos group companies not included in the consolidation perimeter
at 31 December 2009 and 2008 were as follows:
NOTES TO ThE CONSOLIDATED STATEMENTS
assets
Loans to credit institutions payable on demand
Caixa geral de Depósitos, S.A.
Banco Caixa geral, S.A.
Loans and advances to credit institutions
Caixa geral de Depósitos, S.A.
financial liabilities held for trading
Caixa geral de Depósitos, S.A.
of which securities
of which trading derivatives
Locarent
Available for sale financial assets
Caixa geral de Depósitos, S.A.
Caixa geral finance Limited
CgD finance Limited
fCR grupo CgD – Caixa Capital
Loans and advances to customers
Caixa Seguros, SgPS, S.A.
Other assets
fCR grupo CgD – Caixa Capital
Caixa geral de Depósitos, S.A.
BCI Moçambique, S.A.
Sogrupo IV – gestão de Imóveis, ACE
Sogrupo – Serviços Administrativos, ACE
CREDIP – Instituição financeira de Crédito, S.A.
Caixagest – Técnicas de gestão de fundos, S.A.
fCR Empreender Mais
fCR Mezzanine – Caixa Capital
2008
15,513,418
288,361
8,563,603
37,344,881
-
37,344,881
-
34,940,798
9,132,668
4,310,232
104,306
-
622,645
164,275
105,388
13,179
133,419
36,000
1,572
-
-
2009
791,230
574,871
9,354,006
66,653,291
21,238,330
45,414,961
4,108,996
16,520,488
10,220,751
4,345,678
21,761,701
1,690,279
1,393,698
6,296,759
18,668
13,827
27,735
-
1,613
56,819
153,135
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190 NOTES TO ThE CONSOLIDATED STATEMENTS
liabilities
financial liabilities held for trading – derivatives
Caixa geral de Depósitos, S.A.
CgD – Subsidiária Offshore Macau, S.A.
Locarent
hedge derivatives with negative fair value
Caixa geral de Depósitos, S.A.
Other credit institutions’ resources
Caixa geral de Depósitos, S.A.
Caixa Leasing e factoring – Instituição financeira de Crédito, S.A.
CREDIP – Instituição financeira de Crédito, S.A.
Customer resources
fCR grupo CgD – Caixa Capital
Caixa Seguros, SgPS, S.A.
Parcaixa, SgPS, S.A.
Locarent
fundo Energias Renováveis
fCR Empreender Mais
fCR Mezzanine – Caixa Capital
Other liabilities
Caixa geral de Depósitos, S.A.
Caixa Leasing e factoring – Instituição financeira de Crédito, S.A.
fCR grupo CgD – Caixa Capital
Parcaixa SgPS, S.A.
2008
222,502,608
2,254,342
-
1,483,423
1,198,814,237
122,271
396,048
21,320,066
147,012
-
-
-
-
1,243,103
280,619
-
-
2009
252,755,943
-
-
1,703,334
1,073,451,181
122,271
753,782
2,044,198
258,280
19,111,237
1
6,000,506
29,884,945
6,424,486
80,214
5,251,453
240,300
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191
TRANSACTIONS wITh gROUP COMPANIES
The principal balances in Caixa geral de Depósitos, S.A.’s income statement for group companies not included in
the consolidation perimeter, at 2009 and 2008, are set out below:
NOTES TO ThE CONSOLIDATED STATEMENTS
net interest income
Caixa geral de Depósitos, S.A.
of which financial assets held for trading
of which other financial assets recognised at fair value through profit or loss
of which available for sale financial assets
of which hedge derivatives
fCR grupo CgD – Caixa Capital
CgD – Subsidiária Offshore Macau, S.A.
CgD finance Limited
Caixa geral finance Limited
Caixa Leasing e factoring – Instituição financeira de Crédito, S.A.
Banco Caixa geral, S.A.
CREDIP – Instituição financeira de Crédito, S.A.
Caixa Seguros, SgPS, S.A.
Parcaixa, SgPS, S.A.
Locarent
fCR Empreender Mais
fCR Mezzanine – Caixa Capital
income from equity instruments
Caixa geral finance Limited
commissions (net)
fCR grupo CgD – Caixa Capital
fCR Empreender Mais
fCR Mezzanine – Caixa Capital
Caixa geral de Depósitos, S.A.
Caixa Seguros, SgPS, S.A.
BCI Moçambique, S.A.
CREDIP – Instituição financeira de Crédito, S.A.
Parcaixa, SgPS, S.A.
income generated by financial operations
Caixa geral de Depósitos, S.A.
of which financial assets held for trading
of which other financial assets recognised at fair value through profit or loss
of which available for sale financial assets
of which hedge derivatives
CgD – Subsidiária Offshore Macau, S.A.
Caixa geral finance Limited
CgD finance Limited
Locarent
2008
(34,790,657)
15,145,115
10,021
968,686
(120,013)
(175,206)
390,135
343,895
944,256
(20,944)
(2,401)
(21,836)
-
-
-
-
-
-
2,352,828
-
-
7,190
150,000
44,456
305,000
-
(224,370,008)
(223,142,562)
49,627
(7,578)
(569,495)
(1,312,524)
595,384
-
-
2009
(60,780,051)
(50,173,296)
-
1,252,298
(406,014)
(41,784)
20,047
165,052
312,613
(3,686)
(1,498)
(6,775)
128,272
(34,438)
4,056,261
(40,529)
(106,591)
60,896
3,791,908
170,891
366,798
423,237
85,000
11,836
75,000
30,824
(23,047,489)
(25,213,547)
-
2,266,236
(100,178)
263,796
242,049
46,500
(679,209)
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192
The bank also had a guarantee of €5,988,000 provided to Banco Caixa geral at 31 December 2009 and 2008.
Transactions with related entities are generally made on the basis of market values on the respective dates.
As referred to in Note 9, negotiations between Caixa Desenvolvimento and Caixa geral de Depósitos, S.A., for
the disposal of the equity investment in La Seda Barcelona were in progress at 31 December 2008. The disposal
was formalised in an agreement dated 22 January 2009.
BANk’S MANAgEMENT BODIES
The costs incurred on the remuneration of the bank’s board of directors, in 2009, totalled €1,831,732 of which
amount €17,673 in respect of contributions to the Caixa – Banco de Investimento pension fund, as described in
Note 2.13 (€884,305 and €18,607 respectively in 2008).
Bonuses of €357,500 and €162,500 were paid to the board of directors, in 2009 and 2008, respectively.
One of the board members has a mortgage lending agreement with the bank for the amount of €196,382 at 31
December 2009 (€199,351 in 2008). This is a standard loan for bank employees which was taken out prior to
the appointment as a board member. The bank has no additional liability or granted any long term benefit to the
board of directors, other than those referred to above.
As stipulated in article 23 of CaixaBI’s articles of association, the remuneration committee defines the remuneration
of the board of directors and inspection bodies. In terms of the board of directors remuneration is only paid to
the executive board.
NOTES TO ThE CONSOLIDATED STATEMENTS
other operating income
Caixa geral de Depósitos, S.A.
Sogrupo IV – gestão de Imóveis, ACE
Sogrupo – Serviços Administrativos, ACE
BCI Moçambique, S.A.
Caixagest – Técnicas de gestão de fundos, S.A.
CREDIP – Instituição financeira de Crédito, S.A.
Culturgest – gestão de Espaços Culturais, S.A.
other operating expenses
Caixa geral de Depósitos, S.A.
Banco Caixa geral, S.A.
Locarent
Banco Caixa geral Brasil
2008
779,354
175,987
236,575
48,691
22,865
18,000
-
(1,255,474)
(37,882)
-
-
2009
853,462
184,293
400,804
-
38,336
18,000
(20,000)
(848,165)
(69,325)
(414,670)
(344,747)
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193
Information on the amounts paid to the members of boards of directors, in 2009, is set out below:
32. fINANCIAL INSTRUMENTS
MANAgEMENT POLICIES ON fINANCIAL RISkS PERTAININg TO ThE gROUP’S ACTIVITy
CgD group adopted a centralised risk management model, in 2001. This encompasses the assessment and
control of all of the group’s credit, market and liquidity risks, based on the principle of the separation of functions
between commercial and risk areas. Risk management and control are centralised by CgD’s Risk Management
Division. The bank also has risk management regulations defining the limits and operating procedures on the
management of various risks.
The following disclosures on the principal types of risks pertaining to the bank’s activity are required under IfRS 7.
fOREIgN EXChANgE RISk
foreign exchange risk is controlled and assessed on a daily individual basis for Caixa – Banco de Investimento,
S.A.’s operations VaR amounts and limits are calculated on total open and currency positions.
NOTES TO ThE CONSOLIDATED STATEMENTS
Executive board
Luís Lopes Laranjo
António Carlos Bastos Martins
gonçalo Vaz gago da Câmara de Medeiros Botelho
Jorge Telmo Maria freire Cardoso
Alcides Aguiar
Antas Teles
José Carrilho
José furtado
Audit board
hernâni da Costa Loureiro
António José Nascimento Ribeiro
João Sousa Martins
Body and officer
277,388
241,388
261,388
261,388
234,542
214,060
189,265
181,145
1,860,564
25,788
23,688
23,688
73,164
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194
financial instruments were broken down into the following currencies at 31 December 2009 and 2008:
NOTES TO ThE CONSOLIDATED STATEMENTS
assets
Cash and cash equivalents with central banks
Cash assets with other credit institutions
Loans and advances to credit institutions
Securities and derivatives portfolio
financial assets recognised at fair value through profit or loss
Securities
financial derivatives (notional)
Available for sale financial assets (book value)
Available for sale financial assets
hedge derivatives (notional)
Loans and advances to customers
Other assets
Provisions and impairment
liabilities
Other credit institutions’ resources
Customer resources and other loans
financial liabilities recognised at fair value
through profit and loss
financial derivatives (notional)
financial derivatives (book value)
hedge derivatives (notional)
Other liabilities
net exposure
2009
-
37,901
-
10,161,394
555,740,466
21,082,478
9,667,761
-
24,747,336
5,461,043
(1,419,707)
625,478,672
(44,773,441)
(782,903)
(555,740,466)
(16,852,644)
-
(7,405,598)
(625,555,052)
(76,380)
uSd
190,010
1,986,263
24,401,981
388,284,669
8,646,062,880
238,506,042
209,669,072
16,661,158
872,625,703
49,448,501
(54,475,721)
10,393,360,558
(1,038,482,344)
(138,338,822)
(8,646,062,880)
(231,305,850)
(16,661,158)
(80,635,337)
(10,151,486,391)
euro
-
27,561
-
-
-
-
6,583,978
-
19,196,338
71,874
-
25,879,751
(25,673,178)
(2,256)
-
-
-
(207,232)
(25,882,666)
(2,915)
Sterling
190,010
2,082,998
24,401,981
398,446,063
9,201,803,346
259,588,520
225,920,811
16,661,158
916,569,377
54,982,041
(55,895,428)
11,044,750,877
(1,108,928,963)
(139,124,974)
(9,201,803,346)
(248,158,494)
(16,661,158)
(88,248,790)
(10,802,925,725)
(49,015)
total other
-
31,273
-
-
-
-
-
-
-
623
-
31,896
-
(993)
-
-
-
(623)
(1,616)
30,280
currency
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195
The amounts relating to derivatives in the above tables, comprise the notional amount of interest rate and equity
swaps.
LIQUIDITy RISk
Liquidity risk comprises the bank’s risk of difficulties in securing funds to meet its commitments. An example of
liquidity risk may be the bank’s incapacity to dispose of a financial asset quickly at close to its fair value.
The analysis of the bank’s liquidity risk is part of the consolidated liquidity analysis of CgD group’s Asset-Liability
Committee. The bank has an irrevocable line of credit from CgD, for liquidity requirements of up to one year.
CgD group policy, on the other hand, does not advise direct access to the capital market for securing medium
and long term funding, which is the consolidated liability of CgD group with CgD having a global management
commitment and eventual coverage of the liquidity gaps of its various subsidiaries as a whole.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
assets
Cash and cash equivalents with central banks
Cash assets with other credit institutions
Loans and advances to credit institutions
Securities and derivatives portfolio
financial assets recognised at fair value through profit or loss
Securities
financial derivatives (notional)
Available for sale financial assets (book value)
Available for sale financial assets
hedge derivatives (notional)
Loans and advances to customers
Other assets
Provisions and impairment
liabilities
Other credit institutions’ resources
Customer resources and other loans
financial liabilities recognised at fair value
through profit and loss
financial derivatives (notional)
financial derivatives (book value)
hedge derivatives (notional)
Other liabilities
net exposure
-
155,131
-
-
233,586,826
63,804,430
2,062,120
-
25,262,840
369,103
(1,469,591)
323,770,859
(27,161,679)
(651,493)
(233,586,826)
(61,811,328)
-
(874,703)
(324,086,029)
(315,170)
1,164,400
16,709,507
8,563,604
464,611,181
6,725,836,006
168,758,630
161,033,321
17,456,798
836,615,256
66,137,119
(19,780,059)
8,447,105,763
(1,192,620,570)
(118,508,762)
(6,725,836,006)
(164,809,541)
(17,456,798)
(70,657,319)
(8,289,888,996)
-
7,381
-
-
-
-
-
-
17,945,252
54,840
-
18,007,473
(17,849,021)
(1,077)
-
-
-
(2,869)
(17,852,967)
154,506
1,164,400
16,885,360
8,563,604
464,611,181
6,959,422,832
232,563,060
163,095,441
17,456,798
879,823,348
66,561,819
(21,249,650)
8,788,898,193
(1,237,631,270)
(119,162,219)
(6,959,422,832)
(226,620,869)
(17,456,798)
(71,535,648)
(8,631,829,636)
(148,210)
-
13,341
-
-
-
-
-
-
-
757
-
14,098
-
(887)
-
-
-
(757)
(1,644)
12,454
uSd euro Sterling total other
currency
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196
Under IfRS 7 requirements, the full amount of non-discounted contractual cash flows for the various bands,
based on the following premises, is set out below:
Customers’ sight deposits are recognised in the “customer resources and other loans” account heading in
“payable on demand”;
Sight overdrafts are recognised in the “loans and advances to customers” account headings in “payable on
demand”;
The “other” column comprises amounts already received or paid which are being deferred;
The amount for financial derivative instruments set out in this table comprises their book value;
Overdue credit to customers and shares have been classified for unspecified periods; and
future cash flows on variable yield operations such as on operations indexed to Euribor, have been estimated
at the reference value at 31 December 2009 and 2008.
NOTES TO ThE CONSOLIDATED STATEMENTS
2009
contractual PeriodS to Maturity
assets
Cash and cash equivalents with central banks
Cash assets with other credit institutions
Loans and advances to credit institutions
Securities and derivatives portfolio
Other financial assets recognised at fair value
through profit or loss
Available for sale financial assets (gross)
financial assets held for trading
Securities
financial derivatives
Loans and advances to customers (gross)
Positive revaluation of hedge derivatives
Other assets
liabilities
Credit institutions’ and central banks’ resources
Customer resources and other loans
financial liabilities held for trading
financial derivatives
Negative revaluation of hedge derivatives
Other liabilities
liquidity gap
-
-
24,491,930
14,271,341
964,680
3,003,986
58,033,632
88,661,022
-
-
189,426,590
1,007,307,016
39,989,272
54,477,402
-
23,030,152
1,124,803,843
(935,377,253)
190,010
2,082,998
-
-
-
-
-
5,678,935
-
36,915,532
44,867,475
158,398
28,291,200
-
-
21,192,349
49,641,947
(4,774,472)
-
-
-
558,523
10,336,169
22,384,958
20,648,714
107,715,161
-
7,913,156
169,556,680
76,355,869
57,649,734
3,423,275
-
37,681,803
175,110,681
(5,554,001)
-
-
-
362,062
65,176,773
179,619,371
38,247,648
207,641,616
936,919
-
491,984,388
-
6,986,712
36,944,454
-
-
43,931,166
448,053,222
-
-
-
7,886,993
47,464,311
85,349,489
42,234,608
208,145,680
-
-
391,081,080
26,815,549
-
42,023,590
-
5,336,609
74,175,747
316,905,332
-
-
-
8,799,923
50,991,395
64,071,817
169,798,059
413,996,512
-
-
707,657,706
-
11,360,367
163,403,441
1,703,334
-
176,467,142
531,190,564
-
-
-
20,782,390
79,335,744
42,968,768
-
1,826,980
-
9,224,298
154,138,180
-
-
-
-
-
-
154,138,180
-
-
-
-
-
-
-
(4,081,361)
-
1,010,001
(3,071,360)
-
-
-
-
1,007,877
1,007,877
(4,079,238)
uP to3 MonthS
PayaBle on deMand
3 MonthS-1 year
3-5 yearS
1-3 yearS
More than 5 yearS
undeterMined other total
190,010
2,082,998
24,491,930
52,661,230
254,269,072
397,398,388
328,962,661
1,029,584,544
936,919
55,062,987
2,145,640,739
1,110,636,832
144,277,285
300,272,162
1,703,334
88,248,790
1,645,138,404
500,502,335
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197
As already referred, the bank benefits from an irrevocable line of credit from CgD, permitting the adequate
management of liquidity gaps of up to one year.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
assets
Cash and cash equivalents with central banks
Cash assets with other credit institutions
Loans and advances to credit institutions
Securities and derivatives portfolio
Other financial assets recognised at fair value
through profit or loss
Available for sale financial assets (gross)
financial assets held for trading
Securities
financial derivatives
Loans and advances to customers (gross)
Positive revaluation of hedge derivatives
Other assets
liabilities
Credit institutions’ and central banks’ resources
Customer resources and other loans
financial liabilities held for trading
financial derivatives
Negative revaluation of hedge derivatives
Other liabilities
liquidity gap
-
-
8,563,604
28,164,568
1,201,796
616,951
13,100,036
72,371,214
-
-
124,018,887
1,147,590,195
59,850,228
13,961,954
-
25,945,971
1,247,348,347
(1,123,329,460)
1,164,400
16,885,360
-
-
-
-
-
5,944,782
-
29,909,472
53,904,113
172,029
16,429,682
-
-
28,778,245
45,379,956
8,524,158
-
-
-
3,770,652
13,153,036
15,232,599
12,394,303
107,581,001
-
5,240,064
157,371,654
-
29,447,575
9,675,665
-
15,839,692
54,962,932
102,408,722
-
-
-
6,548,098
50,777,792
64,322,953
20,931,554
230,849,654
-
13,164,740
386,594,790
-
-
20,556,855
-
-
20,556,855
366,037,935
-
-
-
18,499,149
9,004,786
75,485,580
41,992,292
185,157,129
-
13,120,603
343,259,539
98,766,413
-
17,379,117
-
-
116,145,530
227,114,009
-
-
-
9,771,369
93,412,219
239,457,239
205,186,325
595,060,990
461,812
5,027,789
1,148,377,744
-
19,799,159
198,790,138
1,483,423
-
220,072,720
928,305,024
-
-
-
42,516,980
72,883,114
38,711,134
-
1,469,591
-
5,594,476
161,175,295
-
-
-
-
-
-
161,175,295
-
-
-
-
-
-
-
(4,415,060)
-
1,217,591
(3,197,469)
-
-
-
-
971,740
971,740
(4,169,210)
1,164,400
16,885,360
8,563,604
109,270,816
240,432,743
433,826,456
293,605,227
1,194,019,300
461,812
73,274,835
2,371,504,553
1,246,528,637
125,526,643
260,363,729
1,483,423
71,535,648
1,705,438,081
666,066,472
contractual PeriodS to Maturity
uP to3 MonthS
PayaBle on deMand
3 MonthS-1 year
3-5 yearS
1-3 yearS
More than 5 yearS
undeterMined other total
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198
INTEREST RATE RISk
Interest rate risk comprises the fair value or cash flow risk associated with a determined financial instrument,
if altered on the basis of an alteration of market interest rates.
The following is a summary of the type of exposure to interest rate risk at 31 December 2009 and 2008:
NOTES TO ThE CONSOLIDATED STATEMENTS
assets
Cash assets with other credit institutions
Loans and advances to credit institutions
financial assets held for trading
Securities
financial derivatives
Other financial assets recognised at fair value trough profit or loss
hedge derivatives
Available for sale financial assets
Loans for advances to customers
Other assets
liabilities
financial liabilities held for trading financial derivatives
financial derivatives
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
net exposure
2009
-
-
42,968,768
-
20,782,390
-
79,335,744
(2,254,381)
47,771,635
188,604,155
-
-
-
-
88,248,790
88,248,790
100,355,365
-
-
271,242,852
4,578,911,046
2
5,000,000
25,079,535
13,409,321
-
4,893,642,756
4,632,057,991
158,398
41,609,077
11,661,158
-
4,685,486,624
208,156,132
2,082,998
24,401,981
33,733,819
4,622,892,300
29,718,232
11,661,158
121,505,532
905,414,437
7,210,406
5,758,620,865
4,569,745,355
1,108,770,565
97,515,897
5,000,000
-
5,781,031,817
(22,410,953)
not SuBJect to intereSt rate riSK
fiXed rate
VariaBle rate
total
2,082,998
24,401,981
347,945,439
9,201,803,346
50,500,624
16,661,158
225,920,811
916,569,377
54,982,041
10,840,867,776
9,201,803,346
1,108,928,963
139,124,974
16,661,158
88,248,790
10,554,767,232
286,100,544
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199
The “financial assets held for trading – shares” account heading at 31 December 2009 and 2008, included
€92,659,872 and €158,631,452 for a portfolio bond whose interest included a fixed-rate component indexed
to the stock market performance of a Portuguese share.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
-
-
38,711,134
-
42,516,979
-
72,883,114
(2,945,470)
37,035,278
188,201,035
-
-
-
-
71,535,648
71,535,648
116,665,387
-
-
278,078,862
3,461,034,304
2
5,000,000
44,936,887
14,195,958
688,824
3,803,934,837
3,504,152,659
172,029
30,033,298
12,456,798
-
3,546,814,784
257,120,053
16,885,360
8,563,604
45,648,604
3,498,388,528
59,655,601
12,456,798
45,275,440
868,572,860
28,837,717
4,584,284,512
3,455,270,173
1,237,459,241
89,128,921
5,000,000
-
4,786,858,335
(202,573,823)
16,885,360
8,563,604
362,438,600
6,959,422,832
102,172,582
17,456,798
163,095,441
879,823,348
66,561,819
8,576,420,384
6,959,422,832
1,237,631,270
119,162,219
17,456,798
71,535,648
8,405,208,767
171,211,617
not SuBJect to intereSt rate riSK
fiXed rate
VariaBle rate
total
assets
Cash assets with other credit institutions
Loans and advances to credit institutions
financial assets held for trading
Securities
financial derivatives
Other financial assets recognised at fair value trough profit or loss
hedge derivatives
Available for sale financial assets
Loans for advances to customers
Other assets
liabilities
financial liabilities held for trading financial derivatives
financial derivatives
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
net exposure
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200
Exposure to interest rate risk, at 31 December 2009 and 2008 can be broken down into the following maturity
periods:
NOTES TO ThE CONSOLIDATED STATEMENTS
2009
assets
Cash assets with other credit institutions
Loans and advances to credit institutions
financial assets held for trading
Securities
financial derivatives
Other financial assets recognised
at fair value through profit or loss
hedge derivatives
Available for sale financial assets
Loans and advances to customers
Other assets
liabilities
financial liabilities held for trading
financial derivatives
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
net exposure
2,082,998
-
-
-
-
-
-
5,678,935
36,915,532
44,677,465
-
158,398
28,291,200
-
21,192,349
49,641,947
(4,964,482)
-
24,401,981
33,733,819
1,619,739,356
24,517,045
-
100,666,907
524,366,368
-
2,327,425,476
1,623,768,912
1,007,105,156
39,982,013
-
23,030,513
2,693,886,594
(366,461,118)
-
-
10,550,519
3,035,025,328
5,201,187
11,661,158
25,037,216
375,529,748
7,832,210
3,470,837,366
3,049,797,865
75,693,131
57,533,884
5,000,000
37,681,442
3,225,706,323
245,131,044
-
-
45,472,805
1,675,037,041
-
-
5,110,407
-
-
1,725,620,253
1,660,005,795
25,972,278
-
-
5,336,609
1,691,314,681
34,305,572
-
-
162,975,356
800,899,250
2
5,000,000
15,632,287
-
-
984,506,895
799,629,023
-
6,051,307
-
-
805,680,330
178,826,565
-
-
52,244,172
2,071,102,371
-
-
138,250
13,248,708
-
2,136,733,501
2,068,601,751
-
7,266,570
11,661,158
-
2,087,529,479
49,204,022
-
-
42,968,768
-
20,782,390
-
79,335,744
1,826,980
9,224,298
154,138,180
-
-
-
-
-
-
154,138,180
-
-
-
-
-
-
-
(4,081,361)
1,010,001
(3,071,360)
-
-
-
-
1,007,877
1,007,877
(4,079,238)
2,082,998
24,401,981
347, 945,439
9,201,803,346
50,500,624
16,661,158
225,920,811
916,569,377
54,982,041
10,840,867,776
9,201,803,346
1,108,928,963
139,124,974
16,661,158
88,248,790
10,554,767,232
286,100,544
rate refiXing / contractual PeriodS to Maturity
2008
16,885,360
-
-
-
-
-
-
5,944,782
29,909,572
52,739,714
-
172,029
16,429,682
-
28,778,245
45,379,956
7,359,758
-
8,563,604
45,648,603
2,068,721,728
53,580,103
-
41,226,794
537,802,421
-
2,755,543,253
2,078,987,699
1,147,552,016
59,764,988
-
19,688,181
3,305,992,884
(550,449,631)
-
-
256,749
2,026,682,709
6,075,497
12,456,798
4,048,645
324,825,657
3,745,720
2,378,091,775
1,964,609,636
-
29,364,669
5,000,000
20,271,816
2,019,246,121
358,845,654
-
-
13,512,195
691,570,585
-
-
-
-
10,333,711
715,416,491
748,484,160
89,907,225
-
-
1,825,666
840,217,051
(124,800,560)
-
-
41,443,116
664,042,118
2
-
44,505,976
-
11,032,524
761,023,736
662,607,766
-
-
-
-
662,607,766
98,415,970
-
-
222,866,801
1,508,405,692
-
5,000,000
430,911
14,195,958
4,728,225
1,755,627,587
1,504,733,571
-
13,602,880
12,456,798
-
1,530,793,249
224,834,338
-
-
38,711,136
-
42,516,980
-
72,883,115
1,469,590
5,594,476
161,175,297
-
-
-
-
-
-
161,175,297
-
-
-
-
-
-
-
(4,415,060)
1,217,591
(3,197,469)
-
-
-
-
971,740
971,740
(4,169,209)
16,885,360
8,563,604
362,438,600
6,959,422,832
102,172,582
17,456,798
163,095,441
879,823,348
66,561,819
8,576,420,384
6,959,422,832
1,237,631,270
119,162,219
17,456,798
71,535,648
8,405,208,767
171,211,617
uP to3 MonthS
PayaBle on deMand
3 MonthS-1 year
3-5 yearS
1-3 yearS
More than 5 yearS
undeterMined other total
rate refiXing / contractual PeriodS to Maturity
uP to3 MonthS
PayaBle on deMand
3 MonthS-1 year
3-5 yearS
1-3 yearS
More than 5 yearS
undeterMined other total
assets
Cash assets with other credit institutions
Loans and advances to credit institutions
financial assets held for trading
Securities
financial derivatives
Other financial assets recognised
at fair value through profit or loss
hedge derivatives
Available for sale financial assets
Loans and advances to customers
Other assets
liabilities
financial liabilities held for trading
financial derivatives
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
net exposure
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201
The contents of the above referred to table were based on the following premises:
The book value of fixed-rate instruments was classified in accordance with their respective period to maturity;
The book value of variable-rate instruments (e.g. indexed to Euribor), was classified in accordance with the
respective maturity until the next refixing of the rate;
The book value of instruments not subject to interest rate risk (e.g. shares) was included in the “undetermined”
column;
The book value included in the “other” column comprises amounts which have already been received or paid
which are being deferred;
Information is provided on notional purchase amounts (as assets) and sales (as liabilities) on interest rate swaps;
Overdue loans to customers are not considered to be subject to interest rate risk; and
Customers’ sight deposits, when no interest is paid, are considered as fixed-rate and classified as “payable on
demand”.
CREDIT RISk
Credit risk comprises financial losses on the defaults of counterparties who have entered into agreements on
financial instruments.
NOTES TO ThE CONSOLIDATED STATEMENTS
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202
Maximum exposure to credit risk
The following is a summary of the maximum exposure to credit risk, by financial instrument, at 31 December
2009 and 2008:
Credit quality of financial assets
The bank does not have an internal rating system. The principal procedures in force in terms of the approval and
monitoring of credit operations designed to ensure an adequate risk level for the bank’s strategy, are set out
below:
The bank has a credit council, comprising members of the executive board and managers of the commercial
divisions with any form of involvement in granting credit. The bank’s credit council meets once a week with a
minimum of two directors and managers of the commercial divisions involved in the credit granting process;
The production of commercial proposals for submission to the credit council is the responsibility of structural
organs (business / product divisions), which require the risk opinion of CgD’s Risk Management Division, in
advance. The proposals approved by the bank’s credit council are recorded in minutes and are signed by all
present, for later submission to and the final resolution of CgD’s credit councils.
NOTES TO ThE CONSOLIDATED STATEMENTS
Assets
Cash and cash equivalents
with other credit institutions
Loans and advances to credit institutions
financial assets recognised
at fair value through profit or loss
Available for sale financial assets
Loans and advances to customers
hedge derivatives
Other assets (excluding deferred costs)
Off-balance sheet
guarantees provided
2009
2,082,998
24,401,981
663,657,566
146,585,066
916,569,377
936,919
53,972,040
1,808,205,948
68,226,250
1,876,432,198
tyPe of financial inStruMent
2008
BooK Value(groSS)
ProViSionS/ iMPairMent
BooK Value(net)
-
-
-
-
37,938,559
-
17,956,869
55,895,428
520,587
56,416,015
2,082,998
24,401,981
663,657,566
146,585,066
878,630,819
936,919
36,015,171
1,752,310,521
67,705,663
1,820,016,183
16,885,360
8,563,604
676,988,294
90,212,327
879,823,348
461,812
65,344,230
1,738,278,975
78,850,623
1,817,129,598
-
-
-
-
14,413,141
-
6,836,509
21,249,650
374,727
21,624,377
16,885,360
8,563,604
676,988,294
90,212,327
865,410,208
461,812
58,507,721
1,717,029,326
78,475,896
1,795,505,222
BooK Value(groSS)
ProViSionS/ iMPairMent
BooK Value(net)
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203
A part of credit operations with customers is, inter alia, guaranteed by the following types of collateral:
A pledge on securities;
Bank guarantees;
State-backed;
Mortgage loans for employees; and
Personal guarantees.
NOTES TO ThE CONSOLIDATED STATEMENTS
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204
Credit quality of debt securities and financial derivative instruments
The following table provides information on the book value of debt securities in a portfolio net of impairment
(excluding matured securities) according to the Standard & Poor’s or equivalent rating, by type of guarantor or
issuing entity and by the guarantor‘s or issuing entity’s geography, at 31 December 2009 and 2008:
NOTES TO ThE CONSOLIDATED STATEMENTS
financial assets held for trading
AAA
AA- to AA+
A- to A+
Less than A-
Unrated
Issued by
Corporate entities
governments and other local authorities
financial institutions
financial assets recognised
at fair value through profit or loss
AA- to AA+
Unrated
Issued by
Corporate entities
governments and other local authorities
financial institutions
Available for sale financial assets
(net of impairment)
AAA
AA- to AA+
A- to A+
Less than A-
Unrated
Issued by
Corporate entities
governments and other local authorities
financial institutions
2009
2,007,201
162,912,027
12,540,719
-
-
177,459,946
101,931,274
41,292,177
34,236,496
177,459,946
2
27,225,637
27,225,639
27,225,635
2
1
27,225,639
5,110,407
19,004,608
19,782,471
-
47,639,048
91,536,534
51,841,207
3,477,049
36,218,278
91,536,534
-
18,117,069
45,731,817
27,547,205
-
91,396,090
18,164,573
-
73,231,517
91,396,090
-
-
-
-
-
-
-
1,863,218
7,552,155
22,290,610
8,603,070
-
40,279,054
1,496,412
-
38,782,642
40,279,054
-
2,909,557
3,427,469
-
-
6,337,026
-
-
6,337,026
6,337,026
-
-
-
-
-
-
-
-
-
10,423,801
-
-
10,423,801
-
-
10,423,801
10,423,801
-
5,989,174
15,743,178
8,051,256
-
29,783,608
4,754,734
3,972,919
21,055,955
29,783,608
-
2,492,596
2,492,596
-
-
2,492,596
2,492,596
-
4,345,678
-
-
-
4,345,678
-
-
4,345,678
4,345,678
Portugal reSt ofeuroPean union
north aMerica
other total
2,007,201
189,927,826
77,443,183
35,598,461
-
304,976,671
124,850,581
45,265,096
134,860,994
304,976,671
2
29,718,232
29,718,234
27,225,635
2
2,492,597
29,718,234
6,973,625
30,872,441
52,496,882
8,603,070
47,639,048
146,585,067
53,337,619
3,477,049
89,770,399
146,585,067
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The bank, at 31 December 2009 also recognised in “debtors – other” an amount of €1,079,632 relating to interest
on financial derivative instruments whose payment has been overdue for less than 3 months. The book value
recognised in financial assets held for trading relating to the said operations totalled €5,056,555.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
financial assets held for trading
AAA
AA- to AA+
A- to A+
Less than A-
Issued by
Corporate entities
governments and other local authorities
financial institutions
financial assets recognised
at fair value through profit or loss
AAA
AA- to AA+
A- to A+
Less than A-
Issued by
Corporate entities
governments and other local authorities
financial institutions
Available for sale financial assets
(net of impairment)
AAA
AA- to AA+
A- to A+
Less than A-
Issued by:
Corporate entities
financial institutions
-
247,943,255
8,731,419
844,049
257,518,723
-
89,311,803
168,206,920
257,518,723
-
973,128
6,075,497
37,197,096
44,245,721
43,272,591
973,128
1
44,245,721
-
39,251,030
16,671,354
22,658,988
78,581,373
39,330,343
39,251,030
78,581,373
-
32,212,113
4,091,002
2,570,939
38,874,054
2,312,342
-
36,561,712
38,874,054
11,066,323
-
-
1,978,699
13,045,022
-
11,066,323
1,978,699
13,045,022
-
-
2,498,286
-
2,498,286
-
2,498,286
2,498,286
-
2,023,615
2,388,174
-
4,411,789
-
-
4,411,789
4,411,789
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,321,730
11,295,915
9,305,254
-
22,922,899
1,554,905
-
21,367,994
22,922,899
-
-
-
2,364,860
2,364,860
-
-
2,364,860
2,364,860
-
-
9,132,668
-
9,132,668
-
9,132,668
9,132,668
2,321,730
293,474,898
24,515,849
3,414,988
323,727,465
3,867,247
89,311,803
230,548,414
323,727,465
11,066,323
973,128
6,075,497
41,540,654
59,655,602
43,272,591
12,039,451
4,343,560
59,655,602
-
39,251,030
28,302,308
22,658,988
90,212,327
39,330,343
50,881,984
90,212,327
Portugal reSt ofeuroPean union
north aMerica
other total
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Credit quality of loans and advances to credit institutions
The counterparties with which the bank had contracted “loans and advances to credit institutions ”at 31 December
2009, comprised CgD group bodies (€9,401,981), with an external rating of AA- and another financial institution
headquartered in Portugal (€15,000,000), which latter operation was guaranteed by the Portuguese state.
Credit quality of loans and advances to customers
Information on non-performing credit operations and / or separate impairment at 31 December 2009 and 2008,
is set out in the following table:
NOTES TO ThE CONSOLIDATED STATEMENTS
Corporate loans
Collective analysis
Outstanding
Overdue
Impairment
Mortgage lending
Outstanding
Overdue
Impairment
Consumer credit
Outstanding
Overdue
Impairment
Total outstanding credit
Total overdue credit
Total impairment
total credit
2009
848,638,463
-
(13,133,757)
835,504,706
10,128,029
-
(91,659)
10,128,029
448,201
-
(4,056)
448,201
859,214,693
-
(13,229,472)
845,985,221
2008
credit WithcollectiVe
aSSeSSMent of iMPairMent
credit WithSeParate
aSSeSSMent of iMPairMent
total
54,850,022
1,826,980
(24,709,087)
31,967,915
-
-
-
-
-
-
-
-
54,850,022
1,826,980
(24,709,087)
31,967,915
903,488,485
1,826,980
(37,842,844)
867,472,621
10,128,029
-
(91,659)
10,128,029
448,201
-
(4,056)
448,201
914,064,715
1,826,980
(37,938,559)
877,953,136
830,229,835
-
(6,554,579)
823,675,256
8,701,976
-
(74,576)
8,701,976
549,686
-
(4,711)
549,686
839,481,497
-
(6,633,866)
832,847,631
36,483,942
1,469,590
(7,779,275)
30,174,257
-
-
-
-
-
-
-
-
36,483,942
1,469,590
(7,779,275)
30,174,257
866,713,777
1,469,590
(14,333,854)
853,849,513
8,701,976
-
(74,576)
8,701,976
549,686
-
(4,711)
549,686
875,965,439
1,469,590
(14,413,141)
863,021,888
credit WithcollectiVe
aSSeSSMent of iMPairMent
credit WithSeParate
aSSeSSMent of iMPairMent
total
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The following classifications were used for the preparation of the above tables:
“Performing loans” – loans without any overdue payments or with balances overdue up to 30 days;
“Non-performing loans” – loans balances overdue between 30-90 days;
“Loans in default” – loans with balances overdue more than 90 days. In the case of corporate loans, if a customer
has at least one operation with payments overdue for more than 90 days, the full amount of the customer’s
exposure to the group is reclassified to this category.
The book value of loans and advances to customers which would have had unpaid instalments at 31 December
2009, if such loans and advances had not been renegotiated totalled €22,091,449 and €36,483,942 respec-
tively. The bank had recorded impairment of €17,155,261 and €6,309,684 respectively on such loans at 31
December 2009 and 2008.
MARkET RISk
Market risk comprises the risk of a change in the fair value or the cash flows of financial instruments deriving from
changes in market prices, including foreign exchange, interest rate and price risks.
The bank’s market risk is assessed on the basis of the following methodologies:
Value-at-Risk” (VaR) on the trading portfolio. This portfolio includes the following elements: securities and
financial derivative instruments portfolio;
A sensitivity analysis on the bank’s other assets and liabilities recognised in the bank’s separate financial
statements. This sensitivity analysis is calculated on the bases of the premises defined in Bank of Portugal
Instruction 19/2005.
The group does not have qualitative information for the sensitivity analysis on the remaining assets and liabilities
of its subsidiaries.
TRADINg PORTfOLIO
VaR comprises an estimate of the maximum potential loss on a specific assets portfolio, over a determined period
with a given confidence level, assuming normal market operation.
NOTES TO ThE CONSOLIDATED STATEMENTS
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The calculation methodology used is that of historical simulation i.e. future events are fully explained by past
events, based on the following premises:
Asset held for: 10 days;
Confidence level: 99%;
Price sampling period: 720 calendar days;
Decay factor = 1, i.e. all observations carry the same weight.
for options, the theoretical price is calculated by the use of adequate models and the use of implicit volatility. No
calculation for correlations is made, owing to the methodology applied; i.e. the correlations are empirical.
The following is a breakdown of VaR at 31 December 2009 and 2008 (thousand euros):
The diversification effect is calculated implicitly. Total VaR refers to the combined effect of interest rate, price,
foreign exchange and volatility risks.
Bpvs (basis point values), changes in the market value of interest rate positions owing to the parallel movement
of 1 basis point on the yield curves are calculated for the trading portfolio. Other sensitivity indices commonly
applicable to options portfolios are also calculated.
Stress testing assessments are realised monthly.
Theoretical backtesting (comparison of the VaR measure with technical results) is performed daily and real
backtesting (comparison of the VaR measure with the real result) monthly. The number of exceptions obtained
i.e. the number of times theoretical or real losses exceed VaR, enable the method’s accuracy to be assessed and
any necessary adjustments made.
NOTES TO ThE CONSOLIDATED STATEMENTS
2008
Market VaR
Interest rate
foreign exchange
Market price
Diversification effect
2009
374
87
50
(105)
406
221
17
34
(40)
232
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NON-TRADINg PORTfOLIO
The sensitivity analysis on the non-trading portfolio was carried out to determine the potential impact on the
bank’s net interest income in 2010 (excluding the other companies within the consolidation perimeter), considering
a fall of 50 basis points (bps) in reference interest rates and assuming a parallel movement of the interest rate
curve. The bank’s separate financial assets and liabilities in its financial statements were considered for this purpose,
excluding:
financial derivative instruments; and
Commercial paper.
The principal premises related with the pricing of operations were:
Variable-rate operations: market rate plus respective contractual spread;
New fixed-rate operations: market rate plus respective spread equivalent to the difference between the average
rate on live transactions at 31 December 2009 and respective market rate;
New variable-rate operations: market rate plus average contractual spread on live transactions at 31 December
2009.
Based on the above referred to premises, the potential positive impact of a 50 basis points fall in reference interest
rates on net interest income for 2010 totals €639,092 (€2,359,820 at 31 December 2008). In the event of a 50
basis points increase in reference interest rates, the potential negative impact on the net interest income forecast
for 2010 totals €1,348,133 (€2,388,738 at 31 December 2008).
fAIR VALUE
The group maintains a significant part of its assets, notably its securities and derivatives portfolio, at fair value
through profit or loss, at 31 December 2009. .
Reference should be made to the following aspects as regards the principal financial assets and liabilities
recognised at cost:
Interest is paid on almost all loans and advances and resources with other credit institutions at indexed rates
and short refixing;
As shown above, in the section on interest rate risk, the payment of interest on almost all customer deposits is
indexed to Euribor, with short refixing periods. A long term operation at fixed interest rates has been covered by
NOTES TO ThE CONSOLIDATED STATEMENTS
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a hedge derivative for which reason the change in the fair value attributable to the interest rate risk has already
been recognised in the deposit’s book value (see Note 18).
In light of the above, the bank considers that the book value of its financial assets, net of provisions and its financial
liabilities comprises a reliable approximation of their respective fair value.
The form of determining the fair value of financial instruments at 31 December 2009 and 2008 is summarised
below:
NOTES TO ThE CONSOLIDATED STATEMENTS
2009
total tyPe of financial inStruMent
financial inStruMentSrecogniSed at fair Value
Assets
financial assets held for trading
Other financial assets recognised
at fair value through profit or loss
Available for sale financial assets
hedge derivatives
Liabilities
financial liabilities held for trading
hedge derivatives
-
-
153,127
-
153,127
-
-
-
231,782,327
2
95,187,997
-
326,970,326
-
-
-
445,125,773
958,684
35,236,453
936,919
482,257,829
(300,272,162)
(1,703,334)
(301,975,496)
-
49,541,938
95,343,234
-
144,885,172
-
-
-
MarKet data
(leVel 2)
other (leVel 3)
676,908,100
50,500,624
225,920,811
936,919
954,266,454
(300,272,162)
(1,703,334)
(301,975,496)
aSSetS Valued at
coSt
ValuationtechniqueS BaSed on:
PriceS on an actiVe MarKet
(leVel 1)
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The contents of the above referred to table were based on the following premises:
Prices on active markets correspond to equity instruments listed on a stock market and high liquidity bonds
(Level 1);
Prices of financial derivative instruments are calculated using valuation techniques based on market data
(Level 2)”;
Portfolio shares valued by indicative bids supplied by contributors external to the group were recognised in
“Valuation techniques - market data (Level 2)”;
Shares valued by internal CgD group models are presented in “Valuation techniques – Other (Level 3)”; this
column includes:
At 31 December 2008, €158,631,452 in bonds convertible into EDP shares issued by Parpública SgPS, S.A.,
which were being valued in accordance with an internal model defined by the bank. In 2009, the bank
opted to value the security on the basis of indicative bids supplied by external counterparties;
At 31 December 2009 and 2008, €1,992,123 and €2,062,120 , respectively, relating to a financial investment
valued by an internal model for updating projected cash flows;
NOTES TO ThE CONSOLIDATED STATEMENTS
-
-
19,617,141
-
19,617,141
-
-
-
177,008,218
11,066,325
29,490,806
-
217,565,349
-
-
-
320,404,157
7,892,361
63,073,781
461,812
391,832,111
(260,363,729)
(1,483,423)
(261,847,152)
158,631,452
83,213,897
50,913,713
-
292,759,061
-
-
-
656,043,827
102,172,582
163,095,441
461,812
921,773,662
(260,363,729)
(1,483,423)
(261,847,152)
2008
total tyPe of financial inStruMent
financial inStruMentSrecogniSed at fair Value
MarKet data
(leVel 2)
other (leVel 3)
aSSetS Valued at
coSt
ValuationtechniqueS BaSed on:
PriceS on an actiVe MarKet
(leVel 1)
Assets
financial assets held for trading
Other financial assets recognised
at fair value through profit or loss
Available for sale financial assets
hedge derivatives
Liabilities
financial liabilities held for trading
hedge derivatives
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At 31 December 2009 and 2008, €76,401,609 and €67,404,550, respectively, relating to fixed or variable-rate
bonds issued by Portuguese financial and non-financial companies, in respect of which there are no active
market nor indicative prices supplied by external counterparties. The bank values these securities using a pro-
jected cash flow updating model at market interest rates plus a spread the bank considers adequate to the
issuing entity’s credit risk as a discount rate.
Assets valued at cost are stable financial investments held by the bank for which no active market exists;
The following values refer to subsidiary companies held under venture capital operations:
Cost price: in the case of acquisitions made in the twelve months preceding the valuation date;
Prices in an active market: for stock market listed companies; and
Other: for other subsidiaries.
The following table provides information on the movements occurring in 2009 on securities valued by “Valuation
techniques – Others” (Level 3):
33. CAPITAL MANAgEMENT
In capital management terms, the bank’s separate accounts are supervised by the Bank of Portugal and its
consolidated accounts by CgD group.
The solvency ratio on the bank’s separate financial statements, at 31 December 2009 and 2008, was 8.85% and
8.67%, respectively.
NOTES TO ThE CONSOLIDATED STATEMENTS
aMountS recogniSed in incoMe
StateMent for year
Assets
financial assets held
for trading
Other financial assets
recognised at fair value
through profit or loss
Available for sale
financial assets
Balance at 31-12-2008
158,631,452
83,213,897
50,913,713
292,759,061
(158,631,452)
-
300,000
(158,331,452)
-
(520,495)
-
(520,495)
-
761,045
-
761,045
foreign eXchange difference
Balance at 31-12-2009
fair Value reSerVeS
effectiVe Potential acquiSitionS/ diSPoSalS
change of Valuation
Method
-
(33,151,464)
36,260,398
3,108,934
-
-
7,178,075
7,178,075
-
-
(69,997)
(69,997)
-
49,541,938
95,343,234
144,885,172
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NOTES TO ThE SEPARATED STATEMENTS
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1. INTRODUCTORy NOTE
Caixa – Banco de Investimento, S.A. (“bank”) was formed by a public deed of 12 November 1987, having
absorbed all assets and liabilities of the Portuguese branch of Manufacturers hanover Trust Company, in
conformity with the terms of ministerial order no. 865-A/87 of 6 November, jointly issued by the Presidency of the
Council of Ministers and Ministry of finance.
The bank is Caixa geral de Depósitos group’s specialised investment banking business arm, which includes activities
such as fixed and Variable Corporate Debt finance, Equity, financial Advisory, Structured finance, Project finance,
Brokerage and Research. Its operations are performed by a branch office in Lisbon and another in OPorto, an
offshore branch in Madeira and a branch in Spain.
As referred to in Note 20, the majority of the bank’s share capital is owned by Caixa geral de Depósitos group
company gerbanca, SgPS, S.A.
The financial statements at 31 December 2009 were approved by the Board of Directors on 22 January 2010.
The bank’s financial statements, at 31 December 2009, still require the approval of its Shareholders’ meeting.
The Board of Directors considers, however, that the said financial statements will be approved without significant
alterations.
2. ACCOUNTINg POLICIES
The separate financial statements of the bank’s registered office have been combined with those of its branches
and represent the bank’s global activities. All balances and trading between the bank’s headquarters and branch
offices in this process have been eliminated.
2.1. PRESENTATION BASES
The bank’s financial statements have been prepared on the going concern principle, based on books and accounting
records, kept in conformity with the accounting principles set out in the Adjusted Accounting Standards under
the terms of Bank of Portugal Official Notice 1/2005 of 21 february and Instructions 9/2005 and 23/2004, in
accordance with the competence afforded by no. 3 of Article 115 of the general Credit and financial Institutions
Regime, approved by Decree Law 298/92 of 31 December.
The Adjusted Accounting Standards generally correspond to the International financial Reporting Standards
(IfRS), as adopted by the European Union under European Parliament and Council Regulation (CE) 1606/2002 of
NOTES TO ThE SEPARATED STATEMENTS
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19 July, transposed into national legislation by Decree Law 35/2005 of 17 february and Bank of Portugal Official
Notice 1/2005 of 21 february. Under the terms of Official Notice 1/2005, however, the following exceptions have
an impact on the bank’s financial statements:
i) Valuation criteria on loans and advances to customers and amounts receivable from other debtors (credit
and accounts receivable) – credits are recognised at their nominal value and may not be reclassified in other
categories and, as such, recognised at fair value;
ii) Provisioning of credit and accounts receivable – minimum provisioning levels are defined in accordance with
the dispositions of Bank of Portugal Official Notice 3/95, with the alterations made by Bank of Portugal
Official Notices 8/03 of 30 June and 3/2005 of 21 february (Note 2.3. a)). The regime also includes liabilities
comprising acceptances, guarantees and other similar instruments;
iii) Tangible assets must be maintained at cost and cannot, therefore, be recognised at fair value, as permitted
by the IAS 16 Standard – Tangible fixed Assets. The recognition of legally authorised revaluations is permitted,
as an exception, in which case the resulting capital gains are recognised in “revaluation reserves”.
2.2. TRANSLATION Of BALANCES AND TRANSACTIONS IN fOREIgN CURRENCy
The bank’s accounts have been prepared in accordance with the currency used in the economic context in which
it operates (referred to as “operating currency”), i.e. the euro.
foreign currency transactions are recognised on the basis of the reference rates in force at the transaction date. At
each balance sheet date, monetary assets and liabilities denominated in foreign currency are translated into euros
on the basis of the foreign exchange rate in force. Non-monetary assets, recognised at fair value, are translated
on the basis of the exchange rate in force on the last valuation date. Non-monetary assets, recognised at their
historical cost, continue to be recognised at the original exchange rate.
Exchange rate differences determined upon exchange translation are recognised in income for the year, except for
differences originated by non-monetary financial instruments, such as shares, classified as available for sale and
recognised in a specific shareholders’ equity account heading until disposal.
NOTES TO ThE SEPARATED STATEMENTS
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2.3. fINANCIAL INSTRUMENTS
a) LOANS AND ADVANCES TO CUSTOMERS AND AMOUNTS RECEIVABLE fROM OThER DEBTORS
As described in Note 2.1, these assets are recognised in accordance with the dispositions of Bank of Portugal
Official Notice 1/2005. They are, accordingly, recognised at their nominal value, with their respective income, i.e.
interest and commissions, being recognised over the course of the period of the operations in accordance with
the “pro rata temporis” method, when comprising operations producing residual flows for a period of more than
a month. whenever applicable, commissions and external costs imputable to contracted operations underlying
the assets classified in this category are also periodised during the period of application of the credits.
The provisioning regime is defined in Bank of Portugal Official Notice 3/95 and includes the following:
Provision for overdue credit and interest
This provision is used to cover the risks on lending involving overdue payments of principal or interest. The provi-
sion percentages for overdue credits and interest are increased in proportion to the period having elapsed since
their respective maturity and whether or not they are collateralised.
Provision for doubtful loans
This provision caters for the risks of outstanding principal on loans to customers with unpaid principal or interest
or customers with other unpaid liabilities.
Official Notice no. 3/95 provides the following classifications for doubtful loans:
Outstanding payments on a single credit operation in which at least one of the following conditions applies to
the respective unpaid principal and interest:
i) when exceeding 25% of the unpaid principal, plus accrued interest;
ii) when in default for more than:
Six months in the case of operations with a maturity of less than five years;
Twelve months in the case of operations with a maturity of five or more and less than ten years;
Twenty four months in the case of operations with a maturity of ten years or more.
NOTES TO ThE SEPARATED STATEMENTS
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These doubtful loans are provisioned in accordance with the provisioning percentage for overdue credit.
Outstanding credit on a single customer, if the overdue credit and interest on all of the operations in respect of
the said customer, plus the outstanding credit described in the preceding sub-paragraph, exceed 25% of the
total credit, plus overdue interest. These doubtful debts are provisioned on the basis of 50% of the average
percentage of provisions for overdue credit.
Provisions for bad and doubtful debts at 31 December 2009, were higher than the minimum amounts defined
by the Bank of Portugal.
Provision for general credit risks
This provision is recognised in liabilities and covers the risk of non payment of loans and other risks, such as the
provision of guarantees and securities, deriving from the bank’s activity. The amount of the provision is calculated
on the application of the following general percentages on the full amount of the value of unmatured credit,
including guarantees and acceptances:
1.5% on consumer credit and unspecified loans and advances to customers;
0.5% on mortgage lending on property or property leasing operations, in both cases when the property is for
the borrower’s residence;
1% for other credit.
Provisions for bad and doubtful debts at 31 December 2009, were higher than the minimum amounts defined
by the Bank of Portugal.
Provisions increases ceased to be accepted as a tax deductible cost from 01 January 2003. The effect on income
is recognised in the “provisions net of recoveries and cancellations” account heading in the income statement.
b) OThER fINANCIAL ASSETS
The other financial assets are recognised at fair value at the agreement date, plus the costs directly attributable
to the transaction. These assets are initially recognised in one of the following categories defined in the IAS 39
Standard:
NOTES TO ThE SEPARATED STATEMENTS
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i) financial assets at fair value through profit or loss
This category includes:
financial assets held for trading, which essentially include the acquisition of securities with the objective
of realising gains on the basis of short term market price fluctuations. This category also includes financial
derivative instruments, excluding financial derivative instruments complying with hedge accounting require-
ments; and,
financial assets recognised at fair value through profit or loss (“fair value option”).
The use of the “fair value option” implies the irrevocable recognition, in this category, of the financial instruments
at the time of initial recognition and is restricted to situations in which the application results in the production of
more relevant financial information, i.e.
a) If the application eliminates or significantly reduces an accounting mismatch that would otherwise occur as a
result of the inconsistent measurement of assets and liabilities or recognition of gains and losses;
b) groups of financial assets, financial liabilities or both which are managed and when the performance thereof
is assessed on a fair value basis, in accordance with formally documented risk and investment management
strategies; and when information on the group is distributed internally to management bodies.
c) It is also possible to classify financial instruments containing one or more embedded derivatives in this category,
unless:
The embedded derivatives do not significantly modify the cash flows which would, otherwise, be required
under the contract;
It is evident, with little or no analysis, that the implicit derivatives should not be separated out.
financial assets classified in this category are recognised at fair value whose gains and losses generated by their
subsequent valuation are recognised in the income statement in the “income from assets and liabilities measured
at fair value through profit or loss” account headings. Interest is recognised in the appropriate “interest and
similar income” account headings.
ii) Loans and accounts receivable
These are financial assets with fixed or determinable payments, not quoted on an active market and not included
in any of the other financial asset categories. Owing to the restriction imposed under Official Notice 1/2005, this
category only includes amounts receivable from other financial institutions.
NOTES TO ThE SEPARATED STATEMENTS
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These assets are initially recognised at fair value, less any commissions included in the effective rate, plus all incre-
mental costs directly attributable to the transaction. The assets are subsequently recognised in the balance sheet
at their amortised cost less impairment losses.
Interest recognition
Interest is recognised on the basis of the effective rate method which enables the amortised cost to be calculated
and the interest split over the period of the operations. The effective rate is the rate that, being used to discount
the estimated future cash flows associated with the financial instrument, enables the current value to be matched
with the value of the financial instrument at the date of initial recognition.
iii) Available for sale financial assets
This category includes variable-income securities not classified as assets recognised at fair value through profit
or loss, including stable financial investments and other financial instruments initially recognised herein and not
classifiable in the other categories of the above referred to IAS 39 Standard.
Available for sale financial assets are measured at fair value, with the exception of shareholders’ equity instruments
not quoted on an active market and whose fair value cannot be reliably measured, which continue to be recognised
at cost. Revaluation gains or losses are recognised directly in shareholders’ equity in the “fair value reserve”. At
the time of sale or if impairment is determined, the accumulated fair value changes are transferred to income or
costs for the year.
Dividends on equity capital instruments classified in this category are recognised as income in the income statement
when the bank’s right to receive them has been established.
The bank, on 01 July 2008, reclassified its fixed-income securities from the financial assets held for trading category
to the available for sales financial assets category, in conformity with the amendment to the IAS 39 Standard
approved on 13 October 2008 (Note 8).
Reclassification of financial assets
with the entry into force of the amendment to the IAS 39 Standard on 13 October 2008, the bank is in a posi-
tion to reclassify several of its financial assets classified as financial assets held for trading or available for sale to
other financial assets categories. No reclassifications to financial assets categories at fair value through profit or
loss, are, however, permitted.
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fair value
As referred to above, financial assets classified in financial assets categories recognised at fair value through profit
or loss and available for sale financial assets are recognised at their fair value.
The fair value of a financial instrument comprises the amount at which an asset or financial liability can be sold
or liquidated between independent, informed parties, interested in realising the transaction under normal market
conditions.
The fair value of financial assets is, for most assets, determined by a CgD group body which is independent from
the trading function, based on the following criteria:
Closing price at the balance sheet date, for instruments traded on active markets;
The following valuation methods and techniques are, inter alia, used for debt instruments not traded on active
markets (including unlisted securities or securities with low liquidity levels):
i) Bid prices published by financial information services such as Bloomberg and Reuters, including market prices
available on recent transactions;
ii) Reference bid prices obtained from financial institutions operating as market-makers;
iii) Internal valuation models based on market data used to define a price for the financial instrument, reflecting
market interest rates and volatility, in addition to liquidity and the credit risk associated with the instrument.
c) fINANCIAL LIABILITIES
financial liabilities are recognised at the agreement date at their respective fair value, less the costs directly
attributable to the transaction. Liabilities are classified in the following categories:
i) financial liabilities held for trading
financial liabilities held for trading comprise the negative revaluation of financial derivative instruments recog-
nised at their fair value.
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ii) Other financial liabilities
This category includes other credit institutions’ and customers’ resources and liabilities incurred on payments of
services.
These financial liabilities are valued at their amortised cost.
d) DERIVATIVES AND hEDgE ACCOUNTINg
The bank performs derivative operations as part of its activity to provide for its customers’ requirements and
reduce its exposure to foreign exchange, interest rate and price fluctuations.
financial derivative instruments are recognised at their fair value at the date of the agreement. They are also
recognised in off-balance sheet accounts at their respective notional value.
financial derivative instruments are subsequently measured at their respective fair value. fair value is assessed:
On the basis of prices obtained in active markets (e.g. futures trading in organised markets);
On the basis of models incorporating valuation techniques accepted in the market, including discounted cash
flows and options valuation models.
Embedded derivatives
financial instruments embedded in other financial instruments are separated from the base agreement and proc-
essed autonomously under the IAS 39 Standard, whenever:
The embedded derivative’s economic characteristics and risks are not closely related with the base agreement
defined in the IAS 39 Standard; and
The full amount of the combined financial instrument is not recognised at fair value, with fair value changes
being reflected in the income statement.
hedge derivatives
These derivatives are designed to protect the group from exposure to a specific risk attached to its operations.
Classification as hedge derivatives and use of the hedge accounting concept, as described below, are subject to
compliance with the rules of the IAS 39 Standard.
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The bank, at 31 December 2009 and 2008, only used hedges on the changes in the fair value of financial instru-
ments recognised in the balance sheet as “fair value hedges”.
The bank prepares formal documentation, for all hedge operations, at the beginning of the operation, to include
the following aspects:
Risk and strategy management objectives associated with the realisation of the hedge operation, in accordance
with the hedge policies defined by the bank;
Description of hedged risk(s);
Identification and description of hedged and hedge financial instruments;
hedge operation effectiveness appraisal method and respective periodicity.
hedge effectiveness tests are periodically performed and documented, using a comparison between the change
in fair value of the hedge instrument and hedged item (part attributable to hedged risk). with the aim of enabling
the use of hedge accounting under IAS 39, the ratio should be between a range of 80%-125%. Prospective
effectiveness tests are also performed in order to demonstrate the hedges’ expected future effectiveness.
hedge derivatives are recognised at fair value, with the results being assessed daily and recognised in income and
costs for the year. If the hedge is seen to be effective, the bank will also recognise the change in fair value of the
hedged item, attributable to the hedged risk, in income for the year. The impact of these valuations is recognised
in the “income from assets and liabilities measured at fair value through profit or loss” account headings. for
derivatives, such as interest rate swaps, with an associated interest component, the periodisation of interest for
the period in progress and liquidated flows are recognised in “interest and similar income” and “interest and
similar costs” in the income statement.
Positive and negative revaluations of hedge derivatives are recognised in specific assets and liabilities account
headings.
Valuations of hedged items are recognised in the account headings in which such assets and liabilities are recognised.
Trading derivatives
Trading derivatives are all financial derivative instruments that are not associated with effective hedge operations
in accordance with the IAS 39 Standard, including:
Derivatives taken out to hedge assets or liabilities risks recognised at fair value through profit or loss, thus
rendering hedge accounting unnecessary;
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Derivatives taken out to hedge risk which do not comprise effective cover under the IAS 39 Standard;
Derivatives taken out for trading purposes.
Trading derivatives are recognised at fair value, with the results being determined daily and recognised in income
and costs for the year. The impact of these valuations is recognised in the “income from assets and liabilities
measured at fair value through profit or loss” account headings. for derivatives, such as interest rate swaps, with
an associated interest component, the periodisation of interest for the period in progress and liquidated flows are
recognised in “interest and similar income” and “interest and similar costs” in the income statement.
Positive and negative revaluations are recognised in the financial assets recognised at fair value through profit or
loss” and “financial liabilities at fair value through profit or loss” account headings, respectively.
e) IMPAIRMENT Of fINANCIAL ASSETS
financial assets at amortised cost
The group periodically analyses the impairment of its financial assets recognised at amortised cost, notably loans
and advances to credit institutions.
Signs of impairment are identified on an individual basis.
The following events may comprise signs of impairment:
failure to comply with contractual clauses, i.e. arrears of interest or capital;
Debtor or debt issuing entities’ significant financial difficulties;
Existence of a strong probability of a declaration of bankruptcy by the debtor or debt issuing entity;
granting of facilities to a debtor in financial difficulties which would not be granted under normal circumstances;
historical records of collections suggesting that the nominal value will never be fully recovered;
Data indicating a measurable reduction of the estimated value of the future cash flows of a group of financial
assets since original recognition, although such a reduction cannot be identified in the group’s separate financial
assets.
whenever signs of impairment on separately analysed assets are identified, the eventual impairment loss com-
prises the difference between the book value at the time of analysis and current value of projected future cash
flows receivable (recoverable value), discounted on the basis of the asset’s effective original interest rate.
NOTES TO ThE SEPARATED STATEMENTS
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Available for sale financial assets
As referred to in Note 2.3. a), available for sale financial assets are recognised at fair value, with fair value changes
being recognised in the “fair value reserve” in shareholders’ equity.
whenever any objective evidence of impairment exists, accumulated capital losses recognised in reserves, are
transferred to costs for the year in the form of impairment losses and recognised in the “impairment of other
assets, net of reversals and recoveries” heading.
In addition to the signs of impairment on financial assets recognised at amortised cost, IAS 39 also provides for
the following specific signs of impairment on equity instruments:
Information on significant changes having an adverse impact on the technological, market, economic or legal
environment in which the issuing entity operates, indicating that the cost of the investment may not be recovered;
A prolonged or significant decline in market value at below cost.
The bank, on each of its financial statement’s reference date performs an analysis of the existence of any impair-
ment losses on available for sale financial assets, considering, for the said purpose the nature and specific, indi-
vidual characteristics of the assets being valued. In addition to the results of the analysis, the events set out below
were considered to be objective signs of impairment on equity instruments:
Existence of potential capital losses of more than 50% of the respective cost price;
Situations in which the fair value of the equity instrument remains below its respective cost price for a period
of more than 24 months.
The existence of potential capital losses of more than 30% of the cost price, for more than 9 months, was also
considered to comprise objective signs of impairment.
Impairment losses on equity instruments cannot be reversed and any potential capital gains originated after the
recognition of impairment losses are, therefore, recognised in the “fair value reserve”. Impairment is always
considered to exist if additional capital losses are assessed at a later stage and are recognised in income for the
year.
Criteria identical to debt instruments are applied for the analysis of “Tier 1” securities.
The group also periodically performs impairment analyses on financial assets recognised at cost, notably unlisted
equity instruments whose fair value cannot be reliably measured. The recoverable value, in this case, comprises
the best estimate of future flows receivable from the asset, discounted at a rate which adequately reflects the risk
associated with holding the asset.
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The amount of the impairment loss is directly recognised in income for the year. Impairment losses on such assets
cannot be reversed.
2.4. OThER TANgIBLE ASSETS
Except for assets acquired up to 1998, these are recognised at cost, less depreciation and accumulated impairment
losses. The costs of repair, maintenance and other expenses associated with their use are recognised as a cost for
the year, in the “other administrative expenses” account heading.
The bank revalued its fixed assets in 1998, under Decree Law 31/98 of 11 february. As permitted under the IfRS
1 Standard, the book value, incorporating the effect of the referred to revaluation was considered as a cost in
the transition to the IfRS, as the proceeds, at the time in question, generally comprised cost, or amortised cost, in
accordance with the IfRS, adjusted to take alterations to price indices into account.
Depreciation is calculated and recognised as a cost for the year, on a systematic basis, during the asset’s estimated
useful life, comprising the period in which it is expected to be available for use, i.e.
Land is not depreciated.
The works being carried out by the bank on its headquarters building over the period 2008-2009 are being
depreciated over a period of ten years.
Analyses of evidence of tangible assets impairment are periodically performed in accordance with the IAS 36
Standard – “Assets impairment”. whenever the net book value of the tangible assets exceeds their recoverable
value, an impairment loss is recognised in the income statement for the period. Impairment losses can be reversed
and also have an impact on income for the period if there is an increase in the asset’s recoverable value in the
following periods.
The bank periodically assesses the adequacy of the estimated useful life of its tangible assets.
NOTES TO ThE SEPARATED STATEMENTS
Property
Equipment
furniture and materials
Transport material
Computer equipment
Interior installations
Security equipment
Plant and machinery
10 - 50
4 -10
4
3 - 4
3 - 10
4 - 10
5 - 10
yearS of uSeful life
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2.5. fINANCIAL LEASES
Leasing operations are recognised as follows:
As lessee
Leased assets are recognised at fair value in assets and liabilities, in line with the processing of the respective
instalment payments.
financial lease instalments are split up in accordance with the respective financial schedule, under which liabilities
are reduced by the corresponding payment of principal. Interest paid is recognised as a financial cost.
As lessor
Leased assets are recognised in the balance sheet as loans, repaid by capital instalments set out in the financial
agreements schedule. Interest included in the instalments is recognised as financial income.
2.6. INTANgIBLE ASSETS
This account heading essentially comprises the costs, development or preparation for use of software used for
the development of the bank’s operations. Intangible assets are recognised at cost, less amortisation and accu-
mulated impairment losses.
Depreciation is recognised as a cost, on a systematic basis, throughout the assets’ estimated useful life for a period
of between 3 - 6 years.
Expenses on software maintenance are recognised as a cost for the year in which they are incurred.
2.7. INVESTMENTS IN SUBSIDIARIES, ASSOCIATED COMPANIES AND JOINTLy CONTROLLED ENTITIES
This account heading includes investments in entities over whose current management the bank has effective
control with the aim of obtaining economic benefit from their operations referred to as subsidiaries. Control usually
takes the form of more than 50% of share capital or voting rights.
NOTES TO ThE SEPARATED STATEMENTS
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These assets are recognised at cost and periodic impairment analyses are realised.
Dividends are recognised as income for the year in which they are distributed by subsidiaries.
2.8. INCOME TAX
The bank pays tax under the regime set out in the Portuguese Tax Code on the Income of Collective Persons (IRC).
The Madeira Offshore Branch, however, is exempt from IRC up until 31 December 2011, under article 33 of the
Statute of fiscal Benefits. for the purposes of the application of this exemption, in accordance with the dispositions
of article 33 A of the Statute of fiscal Benefits, at least 85% of the profit attributable to the entity’s global activity
should derive from the performance of activities outside the institutional scope of the Madeira free Zone.
The total amount of tax on profit recognised in the income statement encompasses current and deferred tax.
Current tax is calculated on the basis of taxable profit for the year, which is different from accounting income
owing to adjustments to taxable profit resulting from costs or income which are not relevant for fiscal purposes
or only considered in other periods.
Deferred tax comprises the impact of temporary deductible or taxable differences between the balance sheet
value of assets and liabilities and their fiscal basis, used to determine taxable profit recoverable or payable in
future periods.
Deferred tax liabilities are normally recognised for all temporary taxable differences, whereas deferred tax assets
are only recognised up to the amount by which the existence of future taxable profit, permitting the use of the
corresponding deductible tax differences or fiscal losses, is probable. Deferred taxes are not, however, recorded
in the following situations:
Temporary differences resulting from goodwill;
Temporary differences originating from the initial recognition of assets and liabilities in transactions which do
not affect accounting income or taxable profit;
Temporary differences resulting from non-distributed profit by subsidiaries and associated companies, to the
extent that the group is able to control their reversal and which is not likely to occur in the foreseeable future.
The principal situations originating temporary differences on a bank level, comprise provisions and revaluations
not accepted for fiscal purposes, deferred commissions and depreciation not accepted on legal revaluations of
tangible assets.
NOTES TO ThE SEPARATED STATEMENTS
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Deferred taxes are calculated on the basis of the tax rates expected to be in force on the date of reversal of the
temporary differences, comprising the approved or substantially approved rates, at the date of the balance sheet.
Tax on income (current or deferred) is recognised in income for the year, except for cases in which the originating
transactions have been recognised in other shareholders’ equity account headings (e.g. revaluations of available
for sale financial assets). In such cases the corresponding tax is also recognised as a charge to shareholders’ equity
and does not affect income for the year.
2.9. PROVISIONS AND CONTINgENT LIABILITIES
A provision is set up when there is a current (legal or constructive) obligation, resulting from past events,
involving the probable future expenditure of resources and when this may be reliably determined. The amount
of the provision comprises the best estimate of the amount to be paid to liquidate the liability at the date of the
balance sheet.
when not probable, the future expenditure of resources is considered to be a contingent liability. Contingent
liabilities require no more than a disclosure procedure, unless the possibility of their payment is remote.
Provisions for other risks are for fiscal, legal and other contingencies in addition to the depreciation of financial
assets.
2.10. EMPLOyEE BENEfITS
The bank does not have any retirement pensions liabilities to its employees, who are covered by the national social
security regime, owing to the fact that it is not a signatory to the Collective wage Bargaining Agreement for the
Banking Sector.
The bank, however, at its own discretion, in 1987, set up the “fundo de Pensões Caixa – Banco de Investimento”
(fund) with the objective of providing its employees with additional old age, disability and survivors’ retirement
pensions, pursuant to the terms of the contract. The fund is managed by CgD Pensões – Sociedade gestora de
fundos de Pensões, S.A.
The bank pays a percentage of 3.5% of each employee’s annual wages into the fund. Pension costs, in 2009 and
2008 were €393,986 and €405,169 respectively (Note 29).
The bank does not have any liabilities other than the above referred to contributions owing to the fact that this
is a defined contribution plan.
NOTES TO ThE SEPARATED STATEMENTS
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Short term benefits, including productivity bonuses paid to employees, are recognised in “employee costs” for
the respective period, on an accrual basis.
2.11. COMMISSIONS
As referred to in Note 2.3, commissions received on credit operations and other financial instruments, i.e.
commissions charged for originating operations, are recognised as income over the period of the operation.
Commissions for services performed are usually recognised as income for the period of performance of the service
or as a lump sum if resulting from single acts.
The estimate of the commissions the bank expects to pay to other credit institutions for the syndicating of credit
operations in which it is involved as lead and in which CgD group’s initial exposure is higher than the defined
objective, is recognised as accrued costs as a charge to the “costs of services and commissions” account heading
for the year in which the bank recognises the income relating to the corresponding commission.
2.12. SECURITIES AND OThER ITEMS hELD UNDER CUSTODy
Securities and other items held under custody, notably customers’ securities, are recognised in off-balance sheet
account headings at their nominal value.
2.13. CASh AND EQUIVALENTS
for the purposes of the preparation of cash flow statements, the bank considers “cash and equivalents” to be
the total amount of the “cash and cash equivalents with central banks” and “cash equivalents with other credit
institutions” account headings.
2.14. CRITICAL ACCOUNTINg ESTIMATES AND MOST RELEVANT JUDgEMENTAL ASPECTS IN ThE APPLICATION Of ACCOUNTINg POLICIES
In the application of the above referred to accounting policies, the bank’s board of directors must produce estimates.
The estimates with the greatest impact in the bank’s separate financial statements include those set out below.
NOTES TO ThE SEPARATED STATEMENTS
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Determination of impairment losses on loans and receivables
As regards provisions for loans and advances to customers, accounts receivable and guarantees and acceptances
given, the bank complies with the minimum limits defined by the Bank of Portugal (Note 2.3). however, whenever
considered necessary, such provisions are complemented to reflect the bank’s estimate of the risk of non-recover-
ability associated with customers. The assessment is produced on a separate basis by the bank, using its specific
knowledge of its customers’ status and the guarantees associated with the operations in question.
Determination of impairment losses on available for sale financial assets
As described in Note 2.3. d), capital losses deriving from the valuation of such assets are recognised as a charge to
the fair value reserve. whenever objective evidence of impairment exists, the accumulated capital losses recognised
in the fair value reserve should be transferred to costs for the year.
for equity instruments, determination of the existence of impairment losses may be subjective. The group determines
whether or not impairment exists on such assets through a specific analysis at each balance sheet date, taking into
consideration the definitions provided in the IAS 39 Standard (see Note 2.3. e)). As a general criterion, impairment is
always determined when it is considered, that, owing to the size of the capital loss determined, the full recovery
of the amount invested by the group is highly improbable.
In the case of debt instruments classified in this category, including “Tier I” classified as equity instruments, the
capital losses are transferred from the fair value reserve to income, whenever there is any indication of the
possible future occurrence of failure to comply with contractually agreed cash flows, notably on account of
financial difficulties, defaults on other financial liabilities, or a significant deterioration in the issuing entity’s rating.
Valuation of financial instruments not traded in active markets
In accordance with the IAS 39 Standard, the bank values all financial instruments at fair value, except for those
recognised at amortised cost. The valuation models and techniques described in Note 2.3 are used for the valuation
of financial instruments not traded on liquid markets. The valuations obtained comprise the best estimate of the
fair value of the referred to instruments, at the date of the balance sheet. As referred to in Note 2.3. to guarantee
an adequate separation between functions, the valuation of most such financial instruments is determined by a
body that is independent from the trading function.
A summary of the sources used by the bank to determine the fair value on financial instruments is provided in
Note 33 – Disclosures on financial instruments, in the “fair value” section.
NOTES TO ThE SEPARATED STATEMENTS
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231
Determination of tax on profit
Tax on profits (current and deferred) is assessed by the bank on the basis of the rules defined by the current fiscal
framework. In several cases, however, fiscal legislation may not be sufficiently clear and objective and may give
rise to different interpretations. The amounts recognised in such cases represent the best understanding of the
responsible bank bodies and subsidiaries on the correctness of the operations although this may be queried by
the fiscal authorities.
2.15. ADOPTINg Of NEw STANDARDS (IAS / IfRS) OR REVISION Of ALREADy ISSUED STANDARDS
Except for subject matters regulated by the Bank of Portugal, such as those referred to in Note 2.1, the bank, in
2009, used the standards and interpretations issued by the International Accounting Standards Board (IASB) and
the International financial Reporting Interpretations Committee (IfRIC) which are relevant to its operations and
effective for the periods starting 1 January 2009, provided that they have been approved by the European Union.
The following standards, interpretations, amendments and revisions endorsed by the European Union and
mandatory for economic years beginning on or after 1 January 2009, were adopted for the first time, in the year
ended 31 December 2009:
NOTES TO ThE SEPARATED STATEMENTS
IfRS 1/IAS 27 – Amendments (Cost of
an investment in a subsidiary, jointly
controlled entity or an associate)
IAS 39 – Amendments Eligible hedged
items
IfRS 2 – Amendments (acquisitions
and cancellations)
IAS 23 – Borrowing costs (revised)
IAS 32/IAS 1 – Amendments (puttable
financial instruments and obligations
arising on a liquidation)
These amendments deal with the measurement of the cost of invest-
ments in subsidiaries, jointly controlled entities and associates in the first
time adoption of IfRS and recognition of dividend income from subsidiar-
ies, in the parent company’s separate financial statements.
These are clarifications related with the following hedge accounting
aspects: (i) identification of inflation as a hedged risk and (ii) options
hedges.
Consists of the clarification of the definition of vesting conditions, intro-
duction of the concept of non-vesting conditions and clarification of the
processing of cancellations.
This revision establishes the obligation to capitalise the costs of loans
related with qualifying assets with the option of recognising them in the
income statement for the period in which they were incurred being con-
sequently, eliminated.
These amendments change the classification criteria of a financial in-
strument between an equity capital instrument and a financial liability,
enabling several financial instruments which may be repurchased to be
classified as shareholders’ equity instruments.
1-Jan-09
1-Jul-09
1-Jan-09
1-Jan-09
1-Jan-09
effectiVe on or after
Standard / interPretation
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232
The effect of the adoption of the above referred to new standards, interpretations, amendments and revisions
on the bank’s financial statements at 31 December 2009, was not significant except for the following situations:
“IfRS 8 – Operating Segments”. This standard came into force on 1 January 2009 for all entities having issued
securities (bonds or shares) admitted to listing in public markets or which have applied for such securities to be
listed in public markets. Notwithstanding the fact that it was not part of the defined scope, the bank opted to
make its disclosures in accordance with the standard’s requirements. IfRS 8 requires the bank to report quanti-
tative and qualitative information on the reported segments which comprise operating segments or aggregates
thereof. Operating segments comprise components of an activity on which the bank has autonomous financial
information and which is analysed by the bank’s decision-making bodies when deciding what resources to
allocate and performance measurement.
IAS 1 (Revised) – Presentation of financial statements”. This standard is mandatory starting 01 January 2009 and
makes a series of changes on the terminology of financial statements. The following are, inter alia, the principal
effects of this revision of IAS 1:
All gains and losses (including gains and losses recognised directly in shareholders’ equity) should, in the
future, be presented:
- In a single “statement of comprehensive income”; or
- In two statements (an income statement and statement of comprehensive income). The bank adopted this
possibility in its financial statements at 31 December 2009.
NOTES TO ThE SEPARATED STATEMENTS
IAS 1 – Presentation of financial
standards (revised)
IfRIC 13 – Customer loyalty pro-
grammes
IfRS 8 – Operating segments
IfRS 7 – Amendments (disclosures on
fair value measurements and liquidity
risk)
Improvements to international financial
reporting standards – 2007
The year 2007 revision of IAS 1 introduced changes of terminology,
including new designations for elements of financial statements, and
changes to the format and content of such elements.
This interpretation requires bonuses given to customers as part of a sales
transaction to be recorded as a separate component part of the transaction.
IfRS 8 consists of a standard dealing exclusively with disclosures in
replacement of the former IAS 14 standard. The IfRS implied a redefinition
of the entity’s reportable segments and the information to be reported
therein.
These amendments to IfRS 7 expand the required disclosures on the fair
value of financial instruments and liquidity risk.
This process involved the revision of 32 accounting standards.
1-Jan-09
1-Jul-08
1-Jan-09
1-Jan-09
Various (usually
1-Jan-09)
effectiVe on or after
Standard / interPretation
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233
The presentation of “other comprehensive income” (e.g. gains or losses on the revaluation of available for
sale financial assets) as separate items on the statement of changes to shareholders’ equity is no longer
permitted.
At the date of the board of directors’ approval of these financial statements, the relevant standards and interpre-
tations available for advance application were as follows:
The standards, although having been endorsed by the European Union, were not adopted by the bank for the
year ended 31 December 2009, owing to the fact that their application was still not mandatory. No significant
impacts on the financial statements deriving from their adoption have been estimated.
NOTES TO ThE SEPARATED STATEMENTS
IfRS 3 – Business combinations and
IAS 27 – Consolidated and separate
financial statements (2008 revision)
Revisions of IfRS 1 – first time adoption
of international financial reporting
standards
IfRIC 12 – Service concession agree-
ments
IfRIC 15 – Agreements for the
construction of real-estate
IfRIC 16 – hedges of a net investment
in a foreign operation
IfRIC 9 and IAS 39 – Amendments
(reassessment of embedded deriva-
tives)
IfRIC 17 – Distributions of non-cash
assets to owners
IfRIC 18 – Transfers of assets from
customers
This revision must be applied for the years beginning on or after 1 July
2009 and makes several changes to the level of registration of business
combinations notably regarding: (a) the measurement of non-controlling
interests (previously referred to as minority shareholders’ interests ); (b)
the recognition and subsequent measurement of contingent payments;
(c) the processing of direct costs related with the combination; and (d) the
registration of transactions involving the purchase of interests in already
controlled entities and transactions for the sale of interests which do not
result in loss of control.
This standard was revised for the purpose of grouping the various changes
occurring since the first release.
This interpretation must be applied for the years beginning on or after 1
January 2010 and introduces rules for the recognition and measurement
by the private operator involved in the provision of infrastructures and
operations in public-to-private type concessions.
This interpretation deals with the form of assessment of whether a
real-estate construction agreement falls within the sphere of IAS 11 –
Construction contracts or IAS 18 – Revenue and how the corresponding
revenue should be recognised.
This interpretation provides guidelines on the hedge accounting of net
investments in foreign operations.
These amendments clarify the circumstances in which subsequent
reassessments of the obligation to separate embedded derivatives are
permitted.
This interpretation issues guidelines on the correct accounting of the
distribution of non-cash assets to owners as dividends.
This interpretation issues guidelines on operators’ accounting of
“customers’” tangible fixed assets.
1-Jul-09
1-Jan-10
1-Jan-10
1-Jan-10
1-Jul-09
years ending on
beginning after
30-Jun-09
01-Jul-09
Transfers made
on or after
01-Jul-09
effectiVe on or after
Standard / interPretation
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234 NOTES TO ThE SEPARATED STATEMENTS
3. OPERATINg SEgMENTS
The board of directors receives and analyses the bank’s financial information every month, split up into business
segments representing its areas of activity by type of origination, designed, as a whole, to ensure a dynamic
investment banking business platform i.e.
corporate finance – including Debt and Equity fnancial advisory and Project finance activities;
trading and Sales including trading and asset management operations and treasury liabilities;
Brokerage – brokerage operations;
commercial Banking – including domestic and international transversal business origination;
other – other activities not classifiable in any of the former categories.
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235
The following tables summarises the information on the bank’s operating segments at 31 December 2009 and
2008:
NOTES TO ThE SEPARATED STATEMENTS
Interest and similar income
Interest and similar costs
net interest income
Income from equity instruments
Income from services and commissions
Costs of services and commissions
Income from financial operations
Income from the disposal of other assets
Other operating income
net operating income
Provisions net of recoveries and cancellations
Value adjustments associated with loans and
advances to customers and amounts receivable
from other debtors (net of replacements and
cancellations)
Impairment of other financial assets net
of reversals and recoveries
Impairment of other assets net of reversals and
recoveries
others costs and income
net income for period
financial assets held for trading
Other financial assets recognised at fair
value through profit or loss
Available for sale financial assets
hedge derivatives
Loans and advances to customers
financial liabilities held for trading
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
i.
ii.
iii.
total
2009
254,768,509
(220,120,328)
34,648,181
60,896
89,433,399
(31,187,540)
14,234,305
16,828
1,836,734
74,394,622
109,042,803
(12,220,656)
(16,979,696)
(81,175)
(299,047)
(29,580,574)
79,462,229
(37,493,203)
41,969,026
676,908,100
29,718,234
171,383,953
936,919
891,860,290
300,272,162
1,108,928,963
146,444,097
1,703,334
13,545,946
(4,142,794)
9,403,152
-
11,642,610
(629,505)
(84,654)
-
44,868
10,973,319
20,376,471
(5,817,499)
(16,979,696)
-
(22,632)
(22,819,827)
(2,443,356)
-
26,266,952
26,665,185
-
335,286,820
-
243,242,219
109,803,050
-
56,008
(34,267)
21,742
-
6,350,089
(1,460,732)
(159,115)
-
220,951
4,951,193
4,972,935
(659,770)
-
-
(4,534)
(664,304)
4,308,631
-
-
-
-
2,578,653
-
1,615,679
30,733,622
-
210,166,524
(202,855,237)
7,311,287
60,896
5,181,116
(265,508)
13,997,415
-
171,429
19,145,348
26,456,635
(889,455)
-
-
(70)
(889,525)
25,567,110
676,908,100
3,451,282
138,673,828
936,919
-
300,272,162
523,587,768
-
1,703,334
30,894,884
(12,988,424)
17,906,460
-
66,223,109
(28,831,795)
480,659
-
1,403,214
39,275,187
57,181,647
(4,761,223)
-
(81,175)
(237,687)
(5,080,085)
52,101,562
-
-
-
-
543,417,469
-
340,483,297
5,907,425
-
105,146
(99,606)
5,540
-
36,475
-
-
16,828
(3,728)
49,575
55,115
(92,709)
-
-
(34,124)
(126,833)
(71,717)
-
-
6,044,940
-
10,577,348
-
-
-
-
total coMMercial BanKing
BroKerage trading and SaleS
corPorate finance
other
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236 NOTES TO ThE SEPARATED STATEMENTS
Interest and similar costs were split up over the various business lines on the basis of the average value of the
respective asset allocations to the said segments.
Interest and similar income
Interest and similar costs
net interest income
Income from equity instruments
Income from services and commissions
Costs of services and commissions
Income from financial operations
Income from the disposal of other assets
Other operating income
net operating income
Provisions net of recoveries and cancellations
Value adjustments associated with loans and
advances to customers and amounts receivable
from other debtors (net of replacements and
cancellations)
Impairment of other financial assets net of revers-
als and recoveries
others costs and income
net income for period
financial assets held for trading
Other financial assets recognised at fair value
through profit or loss
Available for sale financial assets
hedge derivatives
Loans and advances to customers
financial liabilities held for trading
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
i.
ii.
iii.
total
2008
294,625,191
(269,657,984)
24,967,206
150,035
64,932,086
(7,098,704)
(6,833,393)
9,107
959,882
52,119,013
77,086,217
(1,372,919)
(6,309,684)
(57,488)
(7,740,091)
69,346,126
(36,834,982)
32,511,144
653,341,750
59,655,602
101,814,896
461,812
899,724,067
260,363,729
1,237,631,270
130,885,462
1,483,423
30,731,610
(19,099,054)
11,632,556
-
13,029,853
(813,889)
(158,596)
-
79,785
12,137,153
23,769,708
36,489
(6,309,684)
(57,488)
(6,330,683)
17,439,025
-
43,272,591
22,658,988
-
427,372,952
-
356,089,929
102,590,372
-
217,134
(158,403)
58,731
-
9,219,472
(1,813,041)
(387,641)
-
300,741
7,319,531
7,378,261
(519,784)
-
-
(519,784)
6,858,477
1,165,112
-
-
-
2,816,937
-
2,874,426
22,488,975
-
232,202,804
(232,800,654)
(597,851)
150,035
2,634,023
(588,064)
(6,535,898)
-
111,793
(4,228,111)
(4,825,962)
(38,449)
-
-
(38,449)
(4,864,411)
652,176,638
16,383,011
77,093,789
461,812
-
260,363,729
539,735,522
-
1,483,423
31,203,626
(17,343,355)
13,860,270
-
40,025,227
(3,883,710)
248,742
-
487,389
36,877,648
50,737,918
(707,152)
-
-
(707,152)
50,030,766
-
-
-
-
460,247,382
-
332,227,756
5,806,115
-
270,017
(256,517)
13,500
-
23,512
-
-
9,107
(19,828)
12,791
26,292
(144,022)
-
-
(144,022)
(117,731)
-
-
2,062,119
-
9,286,795
-
6,703,637
-
-
total coMMercial BanKing
BroKerage trading and SaleS
corPorate finance
other
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237
Information on income distribution and the principal balance sheet headings by geographical markets in 2009
and 2008, is set out below:
NOTES TO ThE SEPARATED STATEMENTS
2009
Interest and similar income
Interest and similar costs
net interest income
Income from equity instruments
Income from services and commissions
Costs of services and commissions
Income from financial operations
Income from the disposal of other assets
Other operating income
net operating income
Provisions net of replacements and cancellations
Value adjustments associated with loans and advances
to customers and amounts receivable from other
debtors (net of replacements and cancellations)
Impairment of other financial assets net of reversals
and recoveries
Impairment of other assets net of reversals
and recoveries
others costs and income
net income for period
financial assets held for trading
Other financial assets recognised at fair
value through profit or loss
Available for sale financial assets
hedge derivatives
Loans and advances to customers
financial liabilities held for trading
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
i.
ii.
iii.
total
Portugal total SPain
230,412,008
(197,355,886)
33,056,122
60,896
88,978,048
(31,175,512)
14,234,305
16,828
1,400,394
73,514,959
106,571,081
(13,080,319)
(16,979,696)
(81,175)
(299,047)
(30,440,237)
76,130,844
676,908,100
29,718,234
171,383,953
936,919
881,079,063
300,272,162
1,098,151,808
146,444,097
1,703,334
254,768,509
(220,120,328)
34,648,181
60,896
89,433,399
(31,187,540)
14,234,305
16,828
1,836,734
74,394,622
109,042,803
(12,220,656)
(16,979,696)
(81,175)
(299,047)
(29,580,574)
79,462,229
(37,493,203)
41,969,026
676,908,100
29,718,234
171,383,953
936,919
891,860,290
300,272,162
1,108,928,963
146,444,097
1,703,334
24,356,501
(22,764,442)
1,592,059
-
455,351
(12,028)
-
-
436,340
879,663
2,471,722
859,663
-
-
-
859,663
3,331,385
-
-
-
-
10,781,227
-
10,777,155
-
-
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238
The information set out in the preceding tables comprises the balance sheet and financial statements of the
bank’s headquarters and subsidiaries domiciled in Portugal (“Portugal” column) and the Madrid branch (“Spain”
column). Each of these entities performs its activity mainly with customers or resident counterparties domiciled in
the same countries in which they are headquartered.
NOTES TO ThE SEPARATED STATEMENTS
2008
Portugal total SPain
i.
ii.
iii.
total
285,149,501
(261,544,151)
23,605,350
150,035
63,420,373
(7,081,472)
(6,833,393)
10,937
979,705
50,646,185
74,251,535
(1,254,573)
(6,309,684)
(57,488)
(7,621,745)
66,629,790
653,341,750
59,655,602
101,814,896
461,812
803,009,306
260,363,729
1,140,358,157
130,885,462
1,483,423
294,625,191
(269,657,984)
24,967,206
150,035
64,932,086
(7,098,704)
(6,833,393)
9,107
959,882
52,119,013
77,086,217
(1,372,919)
(6,309,684)
(57,488)
(7,740,091)
69,346,126
(36,834,982)
32,511,144
653,341,750
59,655,602
101,814,896
461,812
899,724,067
260,363,729
1,237,631,270
130,885,462
1,483,423
9,475,690
(8,113,833)
1,361,857
-
1,511,713
(17,232)
-
(1,830)
(19,823)
1,472,828
2,834,685
(118,346)
-
-
(118,346)
2,716,339
-
-
-
-
96,714,761
-
97,273,113
-
-
Interest and similar income
Interest and similar costs
net interest income
Income from equity instruments
Income from services and commissions
Costs of services and commissions
Income from financial operations
Income from the disposal of other assets
Other operating income
net operating income
Provisions net of replacements and cancellations
Value adjustments associated with loans and advances
to customers and amounts receivable from other
debtors (net of replacements and cancellations)
Impairment of other financial assets net of reversals
and recoveries
others costs and income
net income for period
financial assets held for trading
Other financial assets recognised at fair value
through profit or loss
Available for sale financial assets
hedge derivatives
Loans and advances to customers
financial liabilities held for trading
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
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239
4. CASh AND CASh EQUIVALENTS wITh CENTRAL BANkS
This account heading comprises the following:
The sight deposits with central banks account heading includes deposits with the Bank of Portugal providing for
the demands of the “Minimum Reserve Requirements of the System of European Central Banks” (SEBC). Interest
is paid on these deposits which comprise 2% of the deposits and debt securities with a maturity of up to two
years, excluding the deposits and public debt securities subject to SEBC minimum reserve requirements.
5. CASh ASSETS wITh CREDIT INSTITUTIONS PAyABLE ON DEMAND
This account heading comprises the following:
NOTES TO ThE SEPARATED STATEMENTS
Cash
Sight deposits with central banks
2009
1,897
187,113
189,010
2008
2,555
1,160,845
1,163,400
Cheques payable
In Portugal
Sight deposits
In Portugal
Abroad
2009
-
958,732
1,114,478
2,073,210
2,073,210
2008
50,000
15,709,432
1,080,883
16,790,315
16,840,315
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240 NOTES TO ThE SEPARATED STATEMENTS
6. fINANCIAL ASSETS hELD fOR TRADINg AND OThER fINANCIAL ASSETS RECOgNISED AT fAIR VALUE ThROUgh PROfIT OR LOSS
These headings comprise the following:
The “debt instruments – issued by other entities” account heading at 31 December 2009 and 2008, included
€92,658,873 and €158,631,452 in bonds convertible into EDP shares issued by Parpública – SgPS, S.A. respectively.
The bank transferred a collection of securities recognised as financial assets held for trading, in 2008, to the available
for sale financial assets portfolio (Note 8).
The bank, at 31 December 2009 and 2008, held debt securities (pledged) with a nominal value of €49,366,000
and €44,150,000 respectively (Note 31).
debt instruments
Public issuers
Bonds
Other issuers
Bonds and other securities
Issued by resident entities
Issued by non-resident entities
equity instruments
Issued by resident entities
Issued by non-resident entities
derivatives with positive
fair value (note 7)
41,292,177
136,167,769
127,516,724
304,976,671
42,968,768
-
42,968,768
328,962,661
676,908,100
41,292,179
163,393,406
130,009,320
334,694,905
42,968,768
-
42,968,768
328,962,661
706,626,334
2
27,225,637
2,492,596
29,718,234
-
-
-
-
29,718,234
89,311,803
168,206,920
66,208,742
323,727,465
37,291,022
1,420,112
38,711,134
290,903,151
653,341,750
100,378,128
212,452,639
70,552,300
383,383,067
37,291,022
1,420,112
38,711,134
290,903,151
712,997,352
11,066,325
44,245,719
4,343,558
59,655,602
-
-
-
-
59,655,602
2008 2009
held for trading
total recogniSed at fair Value through
Profit or loSS
held for trading
total recogniSed at fair Value through
Profit or loSS
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241
7. fINANCIAL DERIVATIVE INSTRUMENTS
These operations were valued in conformity with the criteria set out in Note 2.3. d), at 31 December 2009 and
2008. Information on the notional and book value thereof, as at 31 December 2009 and 2008, is set out below:
NOTES TO ThE SEPARATED STATEMENTS
financial derivatives
OTC
Swaps
Interest rate
Equity swaps
Currency forwards
Caps & floors
Options
On interest rates
On currencies
On commodities
Stock market
futures
Interest rate
Equity swaps
9,158,572,400
59,892,105
9,583,784
2,624,518,740
600,000,500
39,666,496
4,138,276
12,496,372,301
114,685,187
1,750,000
12,612,807,488
16,661,158
-
-
-
-
-
-
16,661,158
-
-
16,661,158
9,141,911,242
59,892,105
9,583,784
2,624,518,740
600,000,500
39,666,496
4,138,276
12,479,711,143
114,685,187
1,750,000
12,596,146,330
259,588,520
17,207,758
-
39,193,592
11,378,513
1,083,613
510,664
328,962,661
-
-
328,962,661
(248,158,494)
-
-
(39,132,727)
(11,386,664)
(1,083,613)
(510,664)
(300,272,162)
-
-
(300,272,162)
(766,415)
-
-
-
-
-
-
(766,415)
-
-
(766,415)
10,663,611
17,207,758
-
60,866
(8,151)
-
-
27,924,084
-
-
27,924,084
2009
notional aMount BooK Value
total hedgederiVatiVeS
trading deriVatiVeS
aSSetSheld for trading (note 6)
liaBilitieS held for trading
hedgederiVatiVeS
total
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242
The balance on the “equity swaps” account heading at 31 December 2009, comprised an equity swap to hedge
the risk on changes in the value of shares recognised in the trading portfolio. This agreement also provides for
collateral comprising a deposit to be maintained with the bank by the counterparty and recognised in the “creditors
and other resources – price adjustments” (Note 19) account heading.
The book value of the assets classified as hedged items, at 31 December 2009 and 2008, totalled €13,409,321
and €14,195,957 respectively, including €1,578,920 and €1,558,370 (Note 10), respectively, in respect of value
adjustments.
The book value of the liabilities classified as hedged items, at 31 December 2009 and 2008, also totalled
€6,051,308 and €5,723,912 respectively, including €271,060 and €160,731 (Note 17), respectively, in respect
of value adjustments.
NOTES TO ThE SEPARATED STATEMENTS
financial derivatives
OTC
Swaps
Interest rate
Equity swaps
Currency forwards
Caps & floors
Options on commodities
Stock market
futures
Interest rate
6,916,987,525
59,892,105
40,000,000
3,548,185,044
64,255,227
10,629,319,901
66,237,091
10,695,556,992
17,456,798
-
-
-
-
17,456,798
-
17,456,798
6,899,530,727
59,892,105
40,000,000
3,548,185,044
64,255,227
10,611,863,103
66,237,091
10,678,100,194
232,563,060
24,584,001
142,451
23,029,569
10,584,070
290,903,151
-
290,903,151
(226,620,869)
-
(134,531)
(23,024,259)
(10,584,070)
(260,363,729)
-
(260,363,729)
(1,021,611)
-
-
-
-
(1,021,611)
-
(1,021,611)
4,920,580
24,584,001
7,920
5,310
-
29,517,811
-
29,517,811
2008
notional aMount BooK Value
total hedgederiVatiVeS
trading deriVatiVeS
aSSetSheld for trading (note 6)
liaBilitieS held for trading
hedgederiVatiVeS
total
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243 NOTES TO ThE SEPARATED STATEMENTS
Information on the distribution of financial derivative instruments operations, at 31 December 2009 and 2008 by
periods to maturity (notional amounts) is set out below:
financial derivatives
OTC
Swaps
Interest rate
Trading
hedge
Equity swaps
Trading
Commodity forwards
Trading
Caps & floors
Trading
Options
On interest rates
On currencies
On commodities
Stock market
futures
Interest rate
Trading
hedge
150,000,000
-
150,000,000
-
150,000,000
-
60,000,000
-
6,598,460
4,138,276
220,736,736
114,685,187
1,750,000
337,171,923
96,468,870
-
96,468,870
59,892,105
156,360,975
-
-
-
7,825,952
-
164,186,927
-
-
164,186,927
320,162,472
-
320,162,472
-
320,162,472
9,583,784
52,506,000
-
22,003,975
-
404,256,231
-
-
404,256,231
4,607,350,293
5,000,000
4,612,350,293
-
4,612,350,293
-
1,426,883,762
-
3,238,109
-
6,042,472,164
-
-
6,042,472,164
3,967,929,607
11,661,158
3,979,590,765
-
3,979,590,765
-
1,085,128,978
600,000,500
-
-
5,664,720,243
-
-
5,664,720,243
9,141,911,242
16,661,158
9,158,572,400
59,892,105
9,218,464,505
9,538,784
2,624,518,740
600,000,500
39,666,496
4,138,276
12,496,372,301
114,685,187
1,750,000
12,612,807,488
2009
<= 3 MonthS > 3 <= 6 MonthS
> 6 MonthS <= 1 year
>1 <= 5 yearS
> 5 yearS total
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244 NOTES TO ThE SEPARATED STATEMENTS
1,320,733,276
-
1,320,733,276
-
1,320,733,276
40,000,000
-
7,615,431
1,368,348,707
66,237,091
1,434,585,798
66,667
-
66,667
-
66,667
-
-
13,802,976
13,869,643
-
13,869,643
169,305,439
-
169,305,439
-
169,305,439
-
673,200,000
38,553,138
881,058,577
-
881,058,577
2,413,489,223
-
2,413,489,223
59,892,105
2,473,381,328
-
2,526,805,024
4,283,682
5,004,470,034
-
5,004,470,034
2,995,936,122
17,456,798
3,013,392,920
-
3,013,392,920
-
348,180,020
-
3,361,572,940
-
3,361,572,940
6,899,530,727
17,456,798
6,916,987,525
59,892,105
6,976,879,630
40,000,000
3,548,185,044
64,255,227
10,629,319,901
66,237,091
10,695,556,992
2008
<= 3 MonthS > 3 <= 6 MonthS
> 6 MonthS <= 1 year
>1 <= 5 yearS
> 5 yearS total
financial derivatives
OTC
Swaps
Interest rate
Trading
hedge
Equity swaps
Trading
Corrency forwards
Trading
Caps & floors
Trading
Options on commodities
Trading
Stock market
futures
Interest rate
Trading
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245 NOTES TO ThE SEPARATED STATEMENTS
Information on the distribution of financial derivative instruments operations, by counterparty type, at 31 December
2009 and 2008, is set out below:
4,724,322,177
4,434,250,223
9,158,572,400
-
59,892,105
59,892,105
4,791,892
4,791,892
9,583,784
-
-
-
1,312,259,370
1,312,259,370
2,624,518,740
300,000,000
300,000,000
500
600,000,500
19,833,248
19,833,248
39,666,496
2,069,138
2,069,138
4,138,276
116,345,187
12,612,807,488
(187,527,935)
198,191,546
10,663,611
-
17,207,758
17,207,758
-
-
-
-
-
-
(25,350,892)
25,411,758
60,866
(11,386,664)
11,378,513
-
(8,151)
896,768
(896,768)
-
(134,631)
134,631
-
-
27,924,084
3,715,905,214
3,201,082,311
6,916,987,525
-
59,892,105
59,892,105
-
-
-
20,000,000
20,000,000
40,000,000
1,774,092,522
1,774,092,522
3,548,185,044
-
-
-
-
-
-
-
32,127,618
32,127,609
64,255,227
66,237,091
10,695,556,992
(172,619,822)
177,540,402
4,920,580
-
24,584,001
24,584,001
-
-
-
(134,531)
142,450
7,919
(18,519,784)
18,525,094
5,310
-
-
-
-
-
-
-
(1,840,126)
1,840,126
-
-
29,517,810
2008
notional Value
BooKValue
2009
notional Value
BooKValue
Contracts on interest rates
Interest rate swaps
financial institutions
Customers
Equity swaps
financial institutions
Customers
Commodity forwards
financial institutions
Customers
forward rate agreement
financial institutions
Customers
Caps & floors
financial institutions
Customers
Options on interest rates
financial institutions
Central government
Customers
Options on currencies
financial institutions
Customers
Options on commodities
financial institutions
Customers
futures
Stock market
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246 NOTES TO ThE SEPARATED STATEMENTS
8. AVAILABLE fOR SALE fINANCIAL ASSETS
This account heading comprises the following:
Information on the “equity instruments – shares” account heading at 31 December 2009 and 2008, is set out
below:
2008
debt instruments
Issued by resident entities
Issued by non-resident entities
equity instruments
Shares
gross amount
Issued by resident entities
historical cost
Issued by non-resident entities
historical cost
fair value
Other equity instruments
gross amount
2009
89,355,228
57,229,838
146,585,066
153,127
-
14,425,009
14,578,136
10,220,751
24,798,887
171,383,953
71,644,521
18,567,806
90,212,327
153,127
3,063,721
8,385,721
11,602,569
-
11,602,569
101,814,896
EDP Renováveis, S.A.
SEIf – South Europe Infrastructure
Equity finance
Corporación Interamericana para
el financiamiento de Infraestructura
MTS Portugal, SgMR, S.A.
2009
8,380,068
4,052,818
1,992,123
153,127
14,578,136
(1,472,415)
364,097
172,109
-
(936,209)
9,852,483
3,668,721
1,820,014
153,127
15,514,345
0.14
8.33
9.26
4.67
BooK Value
fair Value
reSerVe
coStPrice (*)
% equity inVeStMent
2008
0.14
n. d.
9.26
4.67
6,323,602
3,063,721
2,062,119
153,127
11,602,569
(*) net of impairment
% equity inVeStMent
BooK Value
naMe
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247 NOTES TO ThE SEPARATED STATEMENTS
Information on movements in this account, for 2009 and 2008, was as follows:
The “other equity instruments” account heading comprises non-voting preference shares issued by Caixa geral
finance Limited, giving a right to a quarterly preferential dividend, at the company’s discretion, equivalent to annual
interest at the Euribor rate plus a spread. Caixa geral finance may redeem the preferential shares starting from
the tenth year after their issue (June 2014 and September 2015) with a 1% increase in spread if failing to do so.
The potential capitals losses on shares classified in the “debt instruments” and “other equity instruments”
account headings, at 31 December 2009 and 2008, totalled €7,250,328 and €11,697,535 respectively.
The bank was involved in the South Europe Infrastructure Equity finance (SEIEf) capital increases in 2009 and
2008, investing amounts of €625,000 and €1,262,500 respectively. The bank has undertaken to provide up to
€10,000,000 in equity funding at the fund’s request, whenever a new operation is realised.
The bank acquired 1,263,962 EDP Renováveis, S.A. shares under the IPO on Euronext Lisbon in June 2008 at a
unit price of €8.
EDP Renováveis, S.A.
SEIf – South Europe Infrastructure Equity finance
Corporación Interamericana para
el financiamiento de Infraestructura
MTS Portugal, SgMR, S.A.
2009
(259,213)
625,000
-
-
365,787
2,315,679
364,097
-
-
2,679,776
6,323,602
3,063,721
2,062,119
153,127
11,602,569
8,380,068
4,052,818
1,992,123
153,127
14,578,136
PurchaSeS/ SaleS
change in fair Value
reSerVe
Balance at 31-12-2008
Balance at 31-12-2009
eXchange differenceS
-
-
(69,996)
-
(69,996)
naMe
EDP Renováveis, S.A.
SEIf – South Europe Infrastructure Equity finance
Corporación Interamericana para
el financiamiento de Infraestructura
MTS Portugal, SgMR, S.A.
ENACOL – Empresa Nacional de Combustíveis, S.A.
2008
10,111,696
1,262,500
794,028
-
(3,718,940)
8,449,284
(3,788,094)
-
-
-
-
(3,788,094)
-
1,801,221
1,154,712
153,127
3,718,940
6,828,000
6,323,602
3,063,721
2,062,119
153,157
-
11,602,569
-
-
113,379
-
-
113,379
PurchaSeS/ SaleS
change in fair Value
reSerVe
Balance at 31-12-2007
Balance at 31-12-2008
eXchange differenceS
naMe
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248
The investment in Corporación Interamericana para el financiamento de Infraestructura was made in 2001 for
4,000,000 US dollars. In August 2008, the bank acquired 1,000,000 shares for the total amount of 1,170,000
US dollars. Exposure to foreign exchange risk is hedged by funding in US dollars. Under the terms of the hedge
accounting investment, the change in fair value resulting from the foreign exchange component, in 2009 and
2008, was recognised in the income statement.
The bank reclassified its financial assets held for trading category securities to the available for sales financial
assets category on 01 July 2008, in conformity with the amendment to the IAS 39 Standard approved on 13
October 2008. Owing to the turbulence in the financial markets in 2008, the fact that the bank does not expect
to dispose of these securities over the short term explains the reason for the transfer between categories.
Information on the impact of the reclassification of these securities, in income and fair value reserves account
headings, excluding their fiscal effect, is set out below:
The fiscal effect is not reflected in the amounts.
9. LOANS AND ADVANCES TO CREDIT INSTITUTIONS
This account heading comprises the following:
NOTES TO ThE SEPARATED STATEMENTS
fair value
Accrued interest
Book value
fair value reserve
Capital gains / losses in income for period
impact on income if not reclassified
31-12-2009 Value
31-12-2008 Value
12,922,417
92,090
13,014,507
(2,161,051)
1,598,457
(1,114,943)
37,359,987
781,314
38,141,301
(1,046,108)
(2,170,534)
(1,046,108)
Term deposits
In Portugal
Interest receivable
2009 2008
7,784,638
78,539
7,863,177
22,189,619
120,223
22,309,842
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249
“Loans and advances to credit institutions”, at 31 December 2009 and 2008, matured in the first quarter of the
following year and were denominated in euros at an average annual interest rate of 2.54% and 3.65% respectively.
10. LOANS AND ADVANCES TO CUSTOMERS
This account heading comprises the following:
The bank also set up a provision for general credit risks totalling €14,690,998 and €8,596,234 at 31 December
2009 and 2008, respectively (Note 18).
NOTES TO ThE SEPARATED STATEMENTS
2008
Non-securitised domestic credit
Loans
Current account
Current account overdrafts
Other credit
Securitised domestic credit
Commercial paper
foreign loans
Loans
Current account
Other credit
Value adjustments relating
to hedged assets (Note 7)
Interest receivable
Deferred income
Commissions associated with amortised cost
Interest
Overdue credit and interest
Provisions for doubtful credit (Note 18)
Provisions for overdue credit (Note 18)
2009
413,786,428
26,298,920
5,678,613
10,470,240
45,800,000
408,927,704
3,244,880
105,990
1,578,920
915,891,695
2,932,062
(4,071,981)
(9,379)
914,742,397
1,826,980
916,569,377
(23,128,219)
(1,580,868)
(24,709,087)
891,860,290
385,317,967
54,009,400
5,943,793
9,284,345
45,500,000
398,860,789
2,990,775
-
1,558,370
903,465,439
6,983,371
(4,286,005)
(129,055)
906,033,750
1,469,591
907,503,341
(6,309,684)
(1,469,591)
(7,779,275)
899,724,067
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250
This account was broken down as follows, by periods to maturity at 31 December 2009 and 2008:
Sector distribution of loans and advances to customers, excluding overdue credit, at 31 December 2009 and
2008, was as follows:
NOTES TO ThE SEPARATED STATEMENTS
2008
Up to three months
Three months to one year
One to five years
More than five years
Current account overdrafts
2009
65,801,569
2,551
229,669,110
585,184,042
35,234,423
915,891,695
45,858,370
4,007,085
155,445,867
635,198,139
62,955,978
903,465,439
Mining industries
Manufacturing industries
Electricity, water and gas generation and distribution
food, beverages and tobacco industries
Basic metallurgical and metal industries
Textiles industry
Chemicals and synthetic or artificial fibres manufacture
Manufacture of transport material
Paper pulp, card and publishing and printing thereof
Manufacture of electrical and optical equipment
Manufacturing industries
Manufacture of articles of rubber and plastic
Property, rentals and corporate services
Property
Other
Transport, warehousing and communications
Construction
wholesale / retail
health and social security
financial activities
hotels and restaurants
Other activities and collective, social and personal activities
Loans and advances to individual customers
-
136,503,901
15,014,835
8,512,486
9,607,544
6,070,629
4,411,704
789,468
890,489
1,588,217
787,294
55,379,659
183,826,975
275,685,222
100,821,357
27,478,122
22,585,671
6,000,000
5,007,454
42,623,661
12,307,007
915,891,695
-
135,531,667
13,787,608
8,074,030
9,607,544
6,572,147
7,106,967
2,430,675
967,699
1,873,401
1,300,840
50,499,110
205,685,502
246,323,916
97,754,212
27,682,827
23,358,369
9,000,000
5,511,589
39,184,336
11,213,001
903,465,440
-
14.9
1.6
0.9
1.0
0.7
0.5
0.1
0.1
0.2
0.1
6.0
20.1
30.1
11.0
3.0
2.5
0.7
0.5
4.7
1.3
100
-
15.0
1.5
0.9
1.1
0.7
0.8
0.3
0.1
0.2
0.1
5.6
22.8
27.3
10.8
3.1
2.6
1.0
0.6
4.3
1.2
100
2008 2009
oPerating Sector aMount % aMount %
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251 NOTES TO ThE SEPARATED STATEMENTS
11. OThER TANgIBLE ASSETS
Information on movements in the “other tangible assets” account headings for the years 2009 and 2008 is set
out below:
460,636
-
164,828
55,658
77,512
-
-
26,912
-
-
785,545
(3,176,903)
(77,843)
(1,031,041)
(96,755)
(1,432,641)
(1,734,973)
(240,087)
(445,231)
(427,778)
-
(8,663,252)
13,093,382
77,843
1,295,871
143,374
1,655,518
1,810,124
240,087
540,902
609,239
2,646,002
22,112,342
2,646,002
-
-
5,000
-
-
-
-
(5,000)
(2,646,002)
-
(479,428)
-
(79,497)
(35,565)
(156,062)
(18,403)
-
(27,084)
(59,615)
-
(855,654)
-
-
-
-
-
-
-
-
(72,136)
-
(72,136)
12,543,689
-
350,161
71,712
144,327
56,748
-
95,499
44,710
-
13,306,844
2009
Balance at 31-12-08
acquiSitionS accuMulated dePreciation
groSS aMount
tranSferS(net)
dePreciation for year
Write-offS (net)
net aMount
at 31-12-09
Property
for own use
Other property
Equipment
furniture and material
Transport material
Computer equipment
Interior installations
Security equipment
Plant and machinery
Leased assets
Transport material
Tangible assets in progress
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Tangible assets in progress, at 31 December 2008, comprised expenses incurred on building works on Caixa –
Banco de Investimento’s headquarters which were completed in 2009.
12. INTANgIBLE ASSETS
Information on movements in the “intangible assets” account headings for the years 2009 and 2008 is set out
below:
NOTES TO ThE SEPARATED STATEMENTS
-
-
252,777
53,268
282,261
-
-
71,655
-
2,646,002
3,305,963
(3,008,139)
(77,843)
(938,331)
(157,435)
(1,167,336)
(1,701,619)
(240,087)
(413,236)
(600,779)
-
(8,304,805)
13,093,382
77,843
1,043,094
176,587
1,373,258
1,810,122
240,087
469,248
1,067,567
-
19,351,188
(168,764)
-
(92,710)
(16,651)
(265,306)
(33,354)
-
(31,995)
(162,463)
-
(771,243)
-
-
-
(9,150)
-
-
-
-
(122,864)
-
(132,014)
9,916,479
-
264,830
46,619
222,877
75,149
-
95,672
181,461
2,646,002
13,449,090
2008
Balance at 31-12-07
acquiSitionS accuMulated dePreciation
groSS aMount
dePreciation for year
Write-offS (net)
net aMount
at 31-12-08
Property
for own use
Other property
Equipment
furniture and material
Transport material
Computer equipment
Interior installations
Security equipment
Plant and machinery
Leased assets
Transport material
Tangible assets in progress
87,546
258,193
345,739
(3,731,204)
-
(3,731,204)
4,045,481
68,081
4,113,562
36,578
(36,578)
-
191,744
258,192
449,936
(246,658)
-
(246,658)
-
(31,503)
(31,503)
2009
Balance at 31-12-08
acquiSitionS accuMulated dePreciation
groSS aMount
tranSferS net aMount at
31-12-09
dePreciation for year
other
Automatic data
processing systems
Intangible assets
in progress
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fixed assets in progress, at 31 December 2009 and 2008, comprised expenses incurred on the acquisition of
software not yet in use at the said dates.
13. INVESTMENTS IN SUBSIDIARIES, ASSOCIATED COMPANIES AND JOINTLy CONTROLLED ENTITIES
Information on the balance of this account heading at 31 December 2009 and 2008, is set out below:
Caixa Desenvolvimento, SgPS, S.A.’s investments at 31 December 2009 and 2008, included supplementary
contributions of €13,000,000 and €87,284,245 respectively, from the bank. Supplementary contributions of
€74,284,245 were reimbursed in 2009.
NOTES TO ThE SEPARATED STATEMENTS
162,044
-
162,044
(3,507,414)
-
(3,507,414)
3,718,574
232,944
3,951,518
164,863
(164,863)
-
314,277
68,081
382,358
(223,790)
-
(223,790)
2008
accuMulated dePreciation
groSS aMount
Balance at 31-12-07
acquiSitionS tranSferS dePreciation for year
net aMount at
31-12-08
Automatic data
processing systems
Intangible assets
in progress
2008
Caixa Desenvolvimento, SgPS, S.A
fundo de Capital de Risco
Energias Renováveis – Caixa Capital
Caixa Capital – Sociedade de Capital de Risco, S.A.
2009
15,500,000
45,500,000
14,575,724
75,575,724
89,784,245
45,500,000
14,575,724
149,859,969
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The following is a summary of the financial data extracted from the separate accounts of the subsidiaries, for the
last financial year:
Caixa Desenvolvimento, SgPS, S.A. (Caixa Desenvolvimento) formed in 1998, has its registered office in Portugal.
Its corporate object is to manage equity investments in other companies, as an indirect form of performing
economic activities.
Caixa Capital – Sociedade de Capital de Risco, S.A. (Caixa Capital) has its registered office in Lisbon and was
formed on 31 December 1990 under Decree Law 17/86 of 05 february. The company’s corporate object is
to support and promote investment and technological innovation by making temporary equity investments in
projects or companies. It is also authorised to provide assistance to the financial, technical, administrative and
commercial management of its subsidiary companies. It managed four venture capital funds at 31 December
2009.
Fundo de Capital de Risco para Investidores Qualificados Energias Renováveis – Caixa Capital (FCR Energias
Renováveis) was formed in January 2006, with a subscribed capital of €50,000,000 comprising 2,000 invest-
ment units. The fund’s objective is to invest its assets in equity investments in companies with high growth and
appreciation potential, operating in the field of generating electricity from renewable energy sources. The bank
subscribed for 1,820 investment units for a nominal amount of €45,500,000 of which amount €18,900,000
(Note 19) was outstanding at 31 December 2009 and 2008. An amount of €13,700,000 was paid up in 2008.
Caixa Desenvolvimento had an equity investment of 49% in Compal – Companhia Produtos de Conservas
Alimentares, S.A. (Compal), at 31 December 2007 at a cost price of €61,250,000 including supplementary
contributions of €56,350,000. The group made contact with Sumolis, in 2007, with a view to the disposal of
the Compal equity investment, with a promissory sales agreement having been entered into with this subsidiary
in first quarter 2008.
2008 witnessed the following developments with this operation:
The Competition Authority issued a declaration of non-opposition to Compal’s sale in August 2008, pursuant
to which Caixa Desenvolvimento disposed of 29.9% of Compal’s share capital;
NOTES TO ThE SEPARATED STATEMENTS
Caixa Desenvolvimento, SgPS, S.A.
fCR Energias Renováveis – Caixa Capital
Caixa Capital, S.A.
Percentage equity inVeStMent
entity
31-12-2009
31-12-2009
31-12-2009
date
Lisbon
Lisbon
Lisbon
regiStered office
28,978,986
53,263,737
35,595,287
aSSetS
(1,721,821)
4,544,061
3,346,254
Profit/ loSS
25,934,725
52,992,932
28,092,240
ShareholderS’ equity
100.00
91.00
100.00
direct effectiVe
100.00
91.00
100.00
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A general meeting of shareholders approved the merger project between Compal and Sumol + Compal, gestão
de Marcas, S.A. in December 2008 which was formalised on 23 December 2008 with effect from 31 December
2008. In accordance with the agreement Caixa Desenvolvimento disposed of 5.0225% of Compal’s share capital;
After the merger, Sumol+Compal, S.A. issued 20,619,055 new shares, fully subscribed and paid up by Caixa
Desenvolvimento and fundo de Capital de Risco grupo CgD – Caixa Capital comprising the surrender of
Compal shares.
These operations gave Caixa Desenvolvimento a 6.921% equity investment in Sumol+Compal at 31 December
2009 and 2008.
14. IINCOME TAX
Tax assets and liabilities balances, at 31 December 2009 and 2008, were:
The “income tax to be recovered” account heading, at 31 December 2009 and 2008 was in respect of a claim
made by the bank on its IRC for 2000.
NOTES TO ThE SEPARATED STATEMENTS
2008
Current tax assets
Income tax to be recovered
Current tax liabilities
Income tax payable
Deferred tax assets
Temporary differences
Deferred tax liabilities
2009
657,900
(17,886,487)
(17,228,587)
18,313,138
(467,900)
17,845,238
657,900
(2,466,548)
(1,808,648)
4,663,208
(462,949)
4,200,259
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The following table provides details and information on deferred tax movements in 2009 and 2008:
The “other” column at 31 December 2008 refers to the reclassifications between deferred and current tax.
NOTES TO ThE SEPARATED STATEMENTS
Provisions disallowed for fiscal purposes
Commissions
Revaluation of hedge derivatives
Valuation of available for sale financial assets
Impairment of available for sale financial assets
Valuation of other assets recognised at fair value through
profit or loss
Revaluation of fixed assets disallowed for fiscal purposes
Value adjustments on hedged assets
2009
1,703,443
1,214,156
300,372
959,055
475,826
(21,727)
(184,366)
(246,499)
4,200,259
Balance at 31-12-08
-
-
-
(513,205)
-
-
-
-
(513,205)
change inShareholderS’
equity
change inincoMe
7,557,607
6,857,121
(150,186)
-
(246,412)
10,864
5,941
123,249
14,158,184
Balance at 31-12-09
9,261,050
8,071,277
150,186
445,850
229,414
(10,863)
(178,425)
(123,250)
17,845,238
2008
1,872,687
342,078
450,558
259,695
486,184
(32,590)
(190,306)
(369,749)
2,818,556
-
-
-
1,003,845
-
-
-
-
1,003,845
(143,841)
872,078
(150,186)
-
-
10,863
5,940
123,250
718,104
1,703,443
1,214,156
300,372
959,055
475,826
(21,727)
(184,366)
(246,499)
4,200,259
(25,403)
-
-
(304,485)
(10,358)
-
-
-
(340,246)
change inother
Provisions disallowed for fiscal purposes
Commissions
Revaluation of hedge derivatives
Valuation of available for sale financial assets
Impairment of available for sale financial assets
Valuation of other assets recognised at fair value through
profit or loss
Revaluation of fixed assets disallowed for fiscal purposes
Value adjustments on hedged assets
change inincoMe
change inShareholderS’
equity
Balance at 31-12-08
Balance at 31-12-07
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Information on tax on profit recognised in the income statement and the tax burden, measured by the ratio
between the appropriation for tax on profit and net profit for the year before tax is set out below:
Current tax reflected in reserves for the amount of €1,962,570 and the current tax credit of €2,795,631, in
December 2009 and 2008, refer to the tax associated with the revaluation of debt securities classified as available
for sale financial assets in the year, for the purposes of determining tax income for the said year. The deferred
tax recognised in the same account heading refers to the revaluation during the year of equity investments also
classified as available for sale financial assets, whose fiscal effects will only be produced at the time of disposal.
In conformity with current legislation, tax returns are subject to review and correction by the tax authorities for
a period of four years. The bank’s tax returns for 2006 to 2009 are therefore still subject to review and the
possibility of correction.
The board of directors considers that any correction is unlikely to have a significant impact on the financial
statements, at 31 December 2009.
NOTES TO ThE SEPARATED STATEMENTS
2008
having an impact on net income for year
Current tax
year
Adjustments relating to previous years
Deferred tax
Recognition and reversal of temporary differences
Total tax in income statement
Income before tax
Total tax in income statement
having an impact on reserves
Current tax
Deferred tax
Total tax in reserves
total tax in shareholders’ equity
2009
25,283,608
(4,527)
25,279,081
(14,158,184)
11,120,896
53,089,922
20.95%
1,962,570
513,205
2,475,776
13,596,672
12,589,229
55,533
12,644,762
(718,104)
11,926,658
44,437,802
26.84%
(2,795,361)
(1,003,845)
(3,799,206)
8,127,452
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Information on the reconciliation between the nominal and effective tax rate in 2009 and 2008 is set out below:
NOTES TO ThE SEPARATED STATEMENTS
income before tax
Determination of tax at nominal rate
Impact of tax regime on activities performed by Madeira
Offshore Branch (Note 2.8)
Provisions disallowed for fiscal purposes
Losses per Economic Interest grouping
Separate source-based taxation
Adjustments relating to previous years
Other disallowed costs
fiscal gains
fiscal benefits
Other
2009
26.50
(7.52)
3.21
(0.63)
0.15
0.00
0.02
0.02
(1.33)
0.53
20.95
53,089,922
14,068,829
(3,994,219)
1,705,981
(333,453)
81,681
0
8,587
11,656
(707,819)
279,652
11,120,896
2008
26.50
(0.40)
1.44
(1.05)
0.19
0.12
0.04
(0.02)
(0.00)
0.02
26.84
44,437,802
11,776,018
(177,739)
640,933
(464,849)
82,769
55,533
16,605
(7,748)
(1,860)
6,996
11,926,658
rate (%) taX rate (%) taX
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15. OThER ASSETS
This account heading comprised the following, at 31 December 2009 and 2008:
The “miscellaneous debtors” account heading at 31 December 2009 and 2008 essential comprises amounts
receivable from customers for the invoicing of services provided by the bank.
The “other deferred expenses” account heading, at 31 December 2009 and 2008 includes €709,891 and €932,188
respectively, in respect of the amounts invested in Agrupamento Complementar de Empresas TREM II – Aluguer
de Material Circulante, ACE (TREM II).
The “securities operations pending settlement” account heading, at 31 December 2009 and 2008, comprises
the value of the operations for the sale of securities at the end of the year and settled in the first few days of the
following year.
At 31 December 2009 and 2008, the “overdue credit and interest” account heading included overdue loans of
€3,551,441, originated in Caixa Valores and deriving from securities trading operations in 1992 by a group of
customers. The loan has been fully provisioned.
NOTES TO ThE SEPARATED STATEMENTS
2008
Debtors and other loans and advances
futures and options
Miscellaneous
other assets
income receivable
Deferred expenses
Insurance
Leasing instalments
Other deferred expenses
Prepayments and accrued income
Securities operations pending settlement
Other lending operations pending settlement
Overdue credit and interest
Impairment of other assets (Note 18)
2009
2,412,435
4,297,695
6,710,130
48,846
827,169
1,146
3,812
993,133
998,091
15,559,066
380,566
15,939,632
4,016,889
28,540,757
(4,315,936)
24,224,821
1,752,804
3,810,753
5,563,557
48,848
37,223
1,034
46,912
1,112,017
1,159,963
21,213,953
278,272
21,492,225
3,935,714
32,237,528
(3,935,714)
28,301,814
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Caixa Valores took legal action against the group of customers in September 1994, accusing them of responsibility
for realising the referred to operations and claiming an amount of €6,003,180 plus interest accruing since June
1993. As the action is still in progress, the bank has not recognised any asset related with this situation.
16. OThER CREDIT INSTITUTIONS’ RESOURCES
This account heading comprises the following:
Information on the periods to maturity of other credit institutions’ resources is set out below:
Interest at an average annual rate of 0.61% and 2.49% was paid on other credit institutions’ resources, excluding
sight deposits, at 31 December 2009 and 2008, respectively.
NOTES TO ThE SEPARATED STATEMENTS
2008
Payable on demand
Sight deposits
Credit institutions In Portugal
Credit institutions abroad
Term
Interbank money market resources
Term deposits
Very short term deposits
Other resources – sight deposit overdrafts
Credit institutions’ resources abroad
Term deposits
Interest payable
Credit institutions’ resources in Portugal
Credit institutions’ resources abroad
2009
133,620
1,292
-
597,145,000
475,945,796
23,486
34,585,000
1,107,834,194
1,082,057
12,712
1,108,928,963
170,665
1,364
-
89,100,000
1,109,158,795
-
38,250,000
1,236,680,824
905,821
44,625
1,237,631,270
2008
Sight deposits and overdrafts
Up to three months
Three months to three years
2009
158,398
1,006,275,796
101,400,000
1,107,834,194
172,029
1,147,408,795
89,100,000
1,236,680,824
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261 NOTES TO ThE SEPARATED STATEMENTS
17. CUSTOMER RESOURCES AND OThER LOANS
This account heading comprises the following:
Customers’ resources and other loans, at 31 December 2009 and 2008, had the following structure in accordance
with their respective periods to maturity:
2008
Deposits
Sight
Term
Value adjustments relating
to hedged liabilities (Note 7)
Interest payable on deposits
2009
53,676,147
90,815,715
144,491,862
271,060
144,762,922
1,681,175
146,444,097
41,431,488
87,738,532
129,170,020
160,731
129,330,751
1,554,711
130,885,462
2008
Payable on demand
Up to three months
Three months to one year
One to five years
More than five years
2009
53,676,147
44,542,100
34,845,400
5,000,000
6,428,215
144,491,862
41,431,488
71,135,070
4,300,000
-
12,303,462
129,170,020
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262
18. PROVISIONS AND IMPAIRMENT
Information on movements in the bank’s provisions and impairment accounts for the years 2009 and 2008 is set
out below:
The bank ‘s provisions for bad debts and for general credit risks at 31 December 2009 and 2008 were higher
than the limits defined by the Bank of Portugal, to provide for the risk associated with a series of operations for
loans and advances to customers.
NOTES TO ThE SEPARATED STATEMENTS
Provisions for loans and advances
to customers (Note 10)
Bad and doubtful debts
Overdue credit
Provisions for general credit risks
(Note 10)
Provisions for other risks and liabilities
Impairment of other assets (Note 15)
2009
6,309,684
1,469,591
7,779,275
8,596,235
5,261,374
13,857,609
3,935,714
25,572,599
-
(49,884)
(49,884)
-
-
-
-
(49,884)
23,128,219
161,161
23,289,380
8,158,253
17,617,666
25,775,919
550,893
49,616,192
(6,309,684)
-
(6,309,684)
(2,063,490)
(11,491,773)
(13,555,263)
(170,671)
(20,035,618)
-
-
-
-
-
-
-
-
Balance at 31-12-08
eXchange differenceS
increaSeS cancellationS and recoVerieS
uSe Balance at 31-12-09
23,128,219
1,580,868
24,709,087
14,690,998
11,387,267
26,078,265
4,315,936
55,103,289
2008
-
1 389,328
1,389,328
9,953,705
2,530,985
12,484,690
3,878,226
17,752,245
-
80,263
80,263
-
-
-
-
80,263
6,309,684
-
6,309,684
2,079,573
7,730,389
9,809,962
57,488
16,177,134
-
-
-
(3,437,043)
(5,000,000)
(8,437,043)
-
(8,437,043)
-
-
-
-
-
-
-
-
6,309,684
1,469,591
7,779,275
8,596,235
5,261,374
13,857,609
3,935,714
25,572,599
Balance at 31-12-07
eXchange differenceS
increaSeS cancellationS and recoVerieS
uSe Balance at 31-12-08
Provisions for loans and advances
to customers (Note 10)
Bad and doubtful debts
Overdue credit
Provisions for general credit risks
(Note 10)
Provisions for other risks and liabilities
Impairment of other assets (Note 15)
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263 NOTES TO ThE SEPARATED STATEMENTS
The “provisions for risks and other liabilities” provisions at 31 December 2009 included provisions for fiscal
contingencies and eventual losses on or depreciation of financial assets.
19. OThER LIABILITIES
This account heading comprises the following:
2008
Creditors and other resources
Price adjustments – Equity swap (Note 7)
Central and local government
Deduction of tax at source
Value added tax
Social security contributions
Deferred interest and dividends
Creditors – securities operations
Miscellaneous creditors
FCR Energias Renováveis – outstanding capital (Note 13)
IRC payable
Suppliers of leased assets
Other
futures and options
Costs payable
Additional remuneration
holiday and holiday subsidies
Pension fund
Other
Deferred income
Commissions on credit operations (Note 2.3. a))
Agencying commissions
Provision of guarantees
Other accrual and deferred income accounts
Securities operations pending settlement
Lending operations pending settlement
Commissions payable – syndicating of loan operations
Other
2009
8,817,254
2,088,017
208,393
219,669
183,397
748,108
18,900,000
884,172
60,212
1,977,197
240,300
34,326,719
2,925,924
1,575,500
384,975
1,630,958
6,517,357
996,222
11,656
1,007,878
20,323,034
37,235,743
278,715
57,837,492
99,689,446
13,236,577
5,128,077
2,411,386
247,786
162,454
754,445
18,900,000
884,172
265,508
1,317,139
-
43,307,544
2,559,829
1,554,900
377,946
625,380
5,118,055
913,128
58,612
971,740
27,524,679
10,684,598
37,947
38,247,224
87,644,563
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264
The balance of the “creditors - securities operations” account heading at 31 December 2009 and 2008, refers to
the current accounts of brokerage operations customers.
The balance on the “Miscellaneous creditors – IRC payable” account heading at 31 December 2009 and 2008,
comprises a reimbursement in 2008, by the Directorate general for Tax Affairs in the judicial proceedings related
with the payment of IRC for 1997. The amount will be settled after a decision has been made on the amount to
be paid by the bank on its 1996 IRC return.
The “securities operations pending settlement” account heading at 31 December 2009 and 2008, comprises the
value of securities purchase operations at the end of the year and settled in the first few days of the following year.
The “commissions payable - syndicating of loan operations” account heading at 31 December 2009 and 2008,
comprises amounts charged to customers for the structuring of syndicated loan operations in which CgD group
supplies all or a significant part of the loan with the latter objective of placing it with other credit institutions. As
described in Note 2.11, the bank recognises a part of the commission received in proportion to the total amount
of credit the group intends to syndicate.
20. SUBSCRIBED CAPITAL AND TREASURy STOCk
Subscribed capital comprises 81,250,000 shares with a nominal value of one euro each.
Information on the bank’s equity structure, at 31 December 2009 and 2008, is set out below:
The bank owned 4,658,000 of its own shares at a cost price of €5,999,453, at 31 December 2009 and 2008.
NOTES TO ThE SEPARATED STATEMENTS
gerbanca, SgPS, S.A.
Companhia de Seguros
fidelidade-Mundial, S.A.
Treasury stock
Other
2009
68,348,445
8,007,635
4,658,000
235,920
81,250,000
no. ShareS
%
84.1
9.9
5.7
0.3
100.0
2008
68,348,445
8,000,640
4,658,000
242,915
81,250,000
no. ShareS
%
84.1
9.9
5.7
0.3
100.0
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265
21. RESERVES, RETAINED EARNINgS AND PROfIT fOR yEAR
The composition of the reserves and retained earnings account headings at 31 December 2009 and 2008, was
as follows:
REVALUATION RESERVES
fixed assets revaluation reserves
The bank revalued its fixed assets in 1998, under Decree Law 31/98 of 11 february. The increase of €4,338,403,
in the net value of the fixed assets was recognised in the “revaluation reserves” account heading.
Revaluation reserves may only be used to cover accrued losses or share capital increases.
fair value reserves
The fair value reserve recognises potential capital gains and losses on available for sale financial assets, net of the
corresponding fiscal effect.
NOTES TO ThE SEPARATED STATEMENTS
2008
Revaluation reserves
fixed assets revaluation reserve
fair value reserves
Potential gains
fiscal effect
Other reserves and retained earnings
Legal Reserve
free reserve
Retained earnings
Profit for year
2009
4,338,403
(8,186,537)
1,582,307
(2,265,827)
36,586,946
30,734,188
44,162,390
111,483,524
41,969,026
151,186,722
4,338,403
(15,313,520)
4,058,083
(6,917,034)
33,335,832
26,575,004
42,628,312
102,539,148
32,511,144
128,133,258
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266 NOTES TO ThE SEPARATED STATEMENTS
LEgAL RESERVE
In conformity with Decree Law 298/92 of 31 December, altered by Decree Law 201/2002 of 26 September, the
bank is required to set up a legal reserve fund until equal to its share capital or sum of free reserves and retained
earnings, if higher, annually transferring an amount of not less than 10% of net profits to the reserve. This reserve
may only be used to cover accrued losses or share capital increases.
DIVIDENDS
A resolution was passed at the general shareholders’ meeting of 20 february 2009, to distribute dividends of
€25,000,000 for 2008 of which an amount of €1,433,232 was allocated to treasury stock.
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22. INTEREST AND INCOME AND INTEREST AND SIMILAR ChARgES
These headings comprise the following:
23. INCOME fROM EQUITy INSTRUMENTS
The balance on this account heading for the years 2009 and 2008, comprises dividends relating to available for
sale financial assets received in the respective year.
NOTES TO ThE SEPARATED STATEMENTS
2008
Interest and similar income
Interest on cash assets
Interest on loans and advances to credit institutions
Interest on loans and advances to customers
Domestic credit
foreign loans
Interest on assets held for trading
Securities
Interest rate swaps
Interest rate guarantee contracts
Interest on other assets recognised at fair value through profit or loss
nterest on available for sale financial assets
Interest on hedge derivatives
Interest on debtors and other investments
Commissions on credit operations
Interest and similar costs
Interest on credit institutions’ resources
Interest on customer deposits
Interest on financial liabilities held for trading
Interest rate swaps
Interest on hedge derivatives
Other interest and similar costs
Interest on creditors and other resources
Other
2009
63,750
626,085
16,587,732
12,326,706
9,362,748
209,232,515
10,792
1,279,486
3,979,593
532,339
6,698
254,008,444
760,065
254,768,509
12,089,693
1,714,498
205,385,690
876,096
3,589
50,762
220,120,328
220,120,328
158,055
918,748
34,005,006
27,146,181
11,659,790
213,079,856
-
2,533,382
3,291,540
865,702
68,310
293,726,570
898,620
294,625,191
52,228,305
5,990,938
210,376,171
1,012,014
20,330
30,226
269,657,984
269,657,984
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268 NOTES TO ThE SEPARATED STATEMENTS
24. INCOME AND COSTS ON SERVICES AND COMMISSIONS
These headings comprise the following:
The “other commission received” account heading for 2009 and 2008, essentially includes financial advisory
commissions.
The “costs of services and commissions – for banking services provided by third parties ” account heading for the
years 2009 and 2008 included €27,789,474 and €3,073,251, respectively, relating to commissions to be passed
on to other credit institutions in future syndications in accordance with the policy described in Note 2.11.
2008
Income from services and commissions
Provision of guarantees
Commissions for commitments to third parties
Provision of services
Organisation of operations
Agencying
Deposit and custody of securities
Management of securities
Collections on securities
Other services
Commissions for operations realised for third parties
Other commissions received
Costs of services and commissions
for banking services provided by third parties
Commissions for operations realised by third parties
for operations on financial instruments
2009
488,672
125,265
14,534,285
2,329,110
897,183
765,222
30,113
17,268,260
5,896,701
47,098,588
89,433,399
29,471,553
1,639,540
76,447
31,187,540
508,867
155,251
14,257,390
1,754,975
621,527
427,013
84,434
13,540,984
8,245,142
25,336,503
64,932,086
4,641,969
2,084,409
372,326
7,098,704
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269 NOTES TO ThE SEPARATED STATEMENTS
25. INCOME fROM ASSETS AND LIABILITIES RECOgNISED AT fAIR VALUE ThROUgh PROfIT OR LOSS
These headings comprise the following:
26. INCOME fROM AVAILABLE fOR SALE fINANCIAL ASSETS
These headings comprise the following:
2008
Income from assets and liabilities held for trading
Equity instruments
Debt instruments
Derivatives
Equity swaps
futures
Interest rate swaps
Interest rate guarantee contracts
Options
fRAs
Commodity forwards
Other
Income from assets and liabilities recognised at fair value through profit or loss
Debt instruments
Income from hedge operations
Value adjustments relating to hedged assets and liabilities
2009
13,053,942
9,076,399
(8,717,473)
(6,369,828)
2,753,380
183,467
(8,151)
18
15,663
5,250
9,992,667
70,617
56,708
(89,779)
10,030,213
(24,007,040)
1,798,064
24,236,038
(11,888,424)
2,723,410
293,852
(3,697)
7,918
-
-
(6,839,879)
(208,344)
(225,243)
286,852
(6,986,614)
2008
Income from available for sale financial assets
Debt instruments
Equity instruments
Losses on available for sale financial assets
Equity instruments
Debt instruments
2009
3,913,984
-
3,913,984
(136,572)
(15,290)
(151,862)
3,762,122
263,746
60,630
324,376
-
(238,424)
(238,424)
85,952
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270 NOTES TO ThE SEPARATED STATEMENTS
27. INCOME fROM EXChANgE REVALUATIONS
This account heading comprises the following:
28. OThER OPERATINg INCOME
These headings comprise the following:
2008
Revaluation of spot foreign exchange position
Revaluation of forward foreign exchange position
2009
441,970
-
441,970
62,784
4,485
67,269
2008
Other operating income
Other operating gains and income
Staff on loan – CgD group
Reimbursement of expenses
Other
Other gains on financial operations
Other operating costs
Other operating costs and expenses
TREM II
Subscriptions and donations
Contributions to Deposit guarantee fund
Other
Other losses on financial operations
Other taxes
Indirect taxes
Direct taxes
Other operating costs
2009
1,487,348
838,479
265,849
2,591,676
480
2,592,156
223,298
25,411
40,698
122,684
591
122,381
220,359
755,422
1,836,734
1,620,408
360,304
194,221
2,174,933
752
2,175,685
311,288
27,266
29,648
73,437
634
147,897
625,635
1,215,804
959,882
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271 NOTES TO ThE SEPARATED STATEMENTS
29. EMPLOyEE COSTS
This account heading comprises the following:
The average number of staff employed by the bank and its subsidiaries’ in 2009 and 2008, excluding the board
of directors and inspection bodies was 159 and 162, respectively and distributed as follows:
30. gENERAL ADMINISTRATIVE EXPENSES
2008
Remuneration paid to board of directors and inspection bodies
Remuneration paid to employees
Mandatory social costs
Costs of remuneration
Pension fund (Note 2.10)
Other mandatory social costs
Other employee costs
2009
1,041,934
11,498,485
2,037,987
393,986
86,446
548,904
15,607,742
933,878
11,509,734
2,012,595
405,169
86,672
362,936
15,310,984
2008
Senior management
Technical
Administrative
2009
69
70
20
159
66
70
26
162
2008
Specialised services
Rents and leases
Maintenance and repair
Travel and expenses
Advertising and publications
Communications
Office consumables
water, electricity and fuel
Insurance
Publications
Employee training
Other third party supplies
Other external services
2009
5,437,994
943,192
1,045,561
632,474
558,542
466,629
92,433
120,272
41,039
56,911
69,811
71,439
125,956
9,662,253
4,155,828
1,277,149
1,135,982
530,740
497,919
471,723
104,495
102,008
55,663
45,702
40,421
42,458
142,219
8,602,307
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272 NOTES TO ThE SEPARATED STATEMENTS
The minimum payments to be made by the bank in 2010 for operating lease contracts in force at 31 December
2009 totalled €100,473.
31. CONTINgENT LIABILITIES AND COMMITMENTS
Contingent liabilities associated with banking activity are recognised in off-balance sheet account headings as
follows:
The “assets-backed guarantee” account heading, at 31 December 2009 and 2008 comprises the nominal value
of debt securities pledged, by the bank (Note 6), in respect of the following situations:
The object of the Deposit guarantee fund is to guarantee customers’ deposits in conformity with the limits defined
by the general Credit Institutions Regime. This takes the form of regular annual contributions. A part of the said
contributions takes the form of an irrevocable commitment to realise the respective contributions when requested
by the fund. These amounts are not recognised in costs. The total value of commitments assumed since 1996
totals €162,182.
2008
Contingent liabilities
guarantees and sureties
Asset-backed guarantees (Note 6)
Commitments
Revocable lines of credit
Securities subscriptions
Other irrevocable commitments
Potential liability to Investors’ Indemnity System
Term liabilities to Deposit guarantee fund
Liabilities for the provision of services
Deposit and custody of securities
2009
70,083,663
49,366,000
119,449,663
96,773,915
29,741,054
-
2,052,436
162,182
128,729,586
7,314,299,425
78,850,623
44,150,000
123,000,623
142,973,041
31,041,679
299,526
2,052,436
162,182
176,528,864
4,825,780,957
2008
“SPgT” (Major Transactions Processing System)
Caixa geral de Depósitos, S.A. – Euronext
Investors’ Indemnity System (SII)
Deposit guarantee fund
2009
44,666,000
2,500,000
1,950,000
250,000
49,366,000
40,600,000
2,000,000
1,550,000
-
44,150,000
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273
32. RELATED ENTITIES
All companies controlled by CgD group, associated companies and the bank’s management bodies are considered
to be entities related with the bank.
The bank’s financial statements, at 31 December 2009 and 2008, include the following balances and transactions
with related entities, excluding management bodies:
Transactions with related entities are generally made on the basis of market values on the respective dates.
MANAgEMENT BODIES
The costs incurred on the remuneration of the bank’s board of directors, in 2009, totalled €986,043 of which
amount €17,673 in respect of contributions to the Caixa – Banco de Investimento pension fund, as described in
Note 2.10 (€884,305 and €18,607 respectively in 2008.
NOTES TO ThE SEPARATED STATEMENTS
assets
Loans and advances to credit institutions
Loans and advances to credit institutions payable on demand
financial liabilities held for trading
Other financial assets recognised at fair value through profit or loss
Available for sale financial assets
Other assets
liabilities
financial liabilities held for trading
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
income and costs
Net interest Income
Income from financial operations
Income from equity instruments
Income from services and commissions (net)
Operating income
general administrative expenses
-
-
-
-
-
43,703
-
-
(7,319,123)
-
-
141,542
-
-
17,306
154,369
-
2009
othercgd grouPcoMPanieS
SuBSidiarieS
2008
1,690,279
7,261,867
70,762,287
-
31,086,917
6,356,870
(252,755,943)
(1,074,327,234)
(57,299,167)
(1,703,334)
(6,071,547)
(56,655,579)
(23,412,765)
60,896
638,544
1,395,802
(1,480,566)
27,679,993
-
-
-
-
-
-
-
(11,723,243)
-
-
2,165,395
-
-
40,536
518,106
-
-
7,863,177
37,344,881
-
40,154,983
411,905
(224,756,947)
(1,199,332,556)
(21,467,078)
(1,483,423)
(340,886)
(34,310,355)
(224,982,531)
-
506,700
1,205,062
740,890
othercgd grouPcoMPanieS
SuBSidiarieS
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274
Bonuses of €195,500 and €162,500 were paid to the board of directors, in 2009 and 2008, respectively.
One of the board members has a mortgage lending agreement with the bank for the amount of €196,382 at 31
December 2009 (€199,351 in 2008). This is a standard loan for bank employees which was taken out prior to
the appointment as a board member. The bank has no additional liability or granted any long term benefit to the
board of directors, other than those referred to above.
As stipulated in article 23 of CaixaBI’s articles of association, the remuneration committee defines the remuneration
of the board of directors and inspection bodies. In terms of the board of directors remuneration is only paid to
the executive board.
Information on the amounts paid to the members of boards of directors and inspection bodies, in 2009, is set
out below:
33. DISCLOSURES RELATINg TO fINANCIAL INSTRUMENTS
MANAgEMENT POLICIES ON fINANCIAL RISkS PERTAININg TO ThE BANk’ ACTIVITy
Risk management and control are centralised by CgD’s Risk Management Division. The bank also has risk
management regulations defining the limits and operating procedures on the management of various risks.
Information on the disclosures required under IfRS 7 – financial Instruments: Disclosures on the principal types of
risks pertaining to the bank’s activity is set out below.
NOTES TO ThE SEPARATED STATEMENTS
Executive Board
Luís Lopes Laranjo
António Carlos Bastos Martins
gonçalo Vaz gago da Câmara de Medeiros Botelho
Jorge Telmo Maria freire Cardoso
Audit Board
hernâni da Costa Loureiro
António José Nascimento Ribeiro
João Sousa Martins
Body and officer
277,388
241,388
261,388
261,388
1,041,552
25,788
23,688
23,688
73,164
aMount (E)
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275
fOREIgN EXChANgE RISk
financial instruments were broken down into the following currencies at 31 December 2009 and 2008:
NOTES TO ThE SEPARATED STATEMENTS
assets
Cash and cash equivalents with central banks
Cash assets with other credit institutions
financial assets held for trading
Shares
Derivatives (notional value)
Derivatives (book value)
Other financial assets recognised at fair value through
profit or loss
Available for sale financial assets
Loans and advances to credit institutions
hedge derivatives (notional value)
Loans and advances to customers
Other assets
Provisions and impairment
liabilities
financial liabilities held for trading
Derivatives (notional value)
Derivatives (book value)
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives (notional value)
Other liabilities
net exposure
2009
-
37,901
10,161,394
555,740,466
21,082,478
-
9,667,761
-
-
24,747,336
5,461,043
(1,419,707)
625,478,672
(555,740,466)
(16,852,644)
(44,773,441)
(782,903)
-
(7,405,598)
(625,555,052)
(76,380)
-
27,561
-
-
-
-
6,583,978
-
-
19,196,338
71,874
-
25,879,751
-
-
(25,673,178)
(2,256)
-
(207,232)
(25,882,666)
(2,915)
189,010
1,976,475
337,784,045
8,646,062,880
238,506,042
29,718,234
155,132,214
22,309,842
16,661,158
872,625,703
23,007,217
(27,605,316)
10,316,367,504
(8,646,062,880)
(231,305,850)
(1,038,482,344)
(145,657,945)
(16,661,158)
(92,075,993)
(10,170,246,170)
189,010
2,073,210
347,945,439
9,201,803,346
259,588,520
29,718,234
171,383,953
22,309,842
16,661,158
916,569,377
28,540,757
(29,025,023)
10,967,757,823
(9,201,803,346)
(248,158,494)
(1,108,928,963)
(146,444,097)
(16,661,158)
(99,689,446)
(10,821,685,504)
(49,015)
uSd Sterling euroS total other
-
31,273
-
-
-
-
-
-
-
-
623
-
31,896
-
-
-
(993)
-
(623)
(1,616)
30,280
currency
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276 NOTES TO ThE SEPARATED STATEMENTS
-
155,131
-
233,586,826
63,804,430
-
2,062,120
-
-
25,262,840
369,103
(1,469,591)
323,770,859
(233,586,826)
(61,811,328)
(27,161,679)
(651,493)
-
(874,703)
(324,086,029)
(315,170)
1,163,400
16,664,462
362,438,599
6,725,836,006
168,758,630
59,655,602
99,752,776
7,863,177
17,456,798
864,295,249
31,812,828
(10,245,398)
8,345,452,129
(6,725,836,006)
(164,809,541)
(1,192,620,570)
(130,232,005)
(17,456,798)
(86,766,234)
(8,317,721,154)
-
7,381
-
-
-
-
-
-
-
17,945,252
54,840
-
18,007,473
-
-
(17,849,021)
(1,077)
-
(2,869)
(17,852,967)
154,506
1,163,400
16,840,315
362,438,599
6,959,422,832
232,563,060
59,655,602
101,814,896
7,863,177
17,456,798
907,503,341
32,237,528
(11,714,989)
8,687,244,559
(6,959,422,832)
(226,620,869)
(1,237,631,270)
(130,885,462)
(17,456,798)
(87,644,563)
(8,659,661,794)
(148,210)
-
13,341
-
-
-
-
-
-
-
-
757
-
14,098
-
-
-
(887)
-
(757)
(1,644)
12,454
2008
uSd Sterling euroS total other
currency
assets
Cash and cash equivalents with central banks
Cash assets with other credit institutions
financial assets held for trading
Shares
Derivatives (notional value)
Derivatives (book value)
Other financial assets recognised at fair value through
profit or loss
Available for sale financial assets
Loans and advances to credit institutions
hedge derivatives (notional value)
Loans and advances to customers
Other assets
Provisions and impairment
liabilities
financial liabilities held for trading
Derivatives (notional value)
Derivatives (book value)
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives (notional value)
Other liabilities
net exposure
The amounts relating to derivatives in the above tables, comprise interest rate swaps.
LIQUIDITy RISk
Liquidity risk comprises the bank’s risk of difficulties in securing funds to meet its commitments. An example of
liquidity risk may be the bank’s incapacity to dispose of a financial asset quickly at close to its fair value.
The analysis of the bank’s liquidity risk is part of the consolidated liquidity analysis of CgD group’s Asset-Liability
Committee. The bank has an irrevocable line of credit from CgD, for liquidity requirements of up to one year.
CgD group policy, on the other hand, does not advise direct access to the capital market for securing medium
and long term funding, which is the consolidated liability of CgD group with CgD having a global management
commitment and eventual coverage of the liquidity gaps of its various subsidiaries as a whole.
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277
Under IfRS 7 requirements, the full amount of non-discounted contractual cash flows for the various bands,
based on the following premises, is set out below:
Customers’ sight deposits are recognised in the “customer resources and other loans” account heading in
“payable on demand”;
Sight overdrafts are recognised in the “loans and advances to customers” account headings in “payable on
demand”;
The “other” column comprises amounts already received or paid which are being deferred;
The amount for financial derivative instruments set out in this table comprises their book value;
Shares and customers overdue credit have been classified for unspecified periods;
for operations whose income is not fixed such as on operations indexed to Euribor, the future cash flows have
been estimated at the reference value at 31 December 2009 and 2008.
NOTES TO ThE SEPARATED STATEMENTS
2009
contractual PeriodS to Maturity
assets
Cash and cash equivalents with central banks
Cash assets with other credit institutions
financial assets held for trading
Shares
financial derivative instruments
Other financial assets recognised
at fair value through profit or loss
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
hedge derivatives
Other assets
liabilities
financial liabilities held for trading
financial derivative instruments
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
liquidity gap
-
-
3,003,986
58,033,632
14,271,341
964,680
22,399,405
88,661,022
-
-
187,334,065
-
54,477,402
1,007,307,016
44,563,690
-
21,840,009
1,128,188,117
(940,854,053)
189,010
2,073,210
-
-
-
-
-
5,678,935
-
23,525,778
31,466,932
-
-
158,398
28,293,523
-
21,192,349
49,644,271
(18,177,338)
-
-
22,384,958
20,648,714
558,523
10,336,169
-
107,715,161
-
-
161,643,524
-
3,423,275
76,355,869
60,398,654
-
36,749,210
176,927,008
(15,283,483)
-
-
179,619,371
38,247,648
362,062
65,176,773
-
207,641,616
936,919
-
491,984,388
-
36,944,454
-
6,986,712
-
-
43,931,166
448,053,222
-
-
85,349,489
42,234,608
7,886,993
47,464,311
-
208,145,680
-
-
391,081,080
-
42,023,590
26,815,549
-
-
18,900,000
87,739,139
303,341,941
-
-
64,071,817
169,798,059
8,799,923
50,991,395
-
413,996,512
-
-
707,657,706
-
163,403,441
-
11,360,367
1,703,334
-
176,467,142
531,190,564
-
-
42,968,768
-
-
24,798,886
-
1,826,980
-
4,016,889
73,611,523
-
-
-
-
-
-
-
73,611,523
-
-
-
-
-
-
-
(4,081,361)
-
998,091
(3,083,271)
-
-
-
-
-
1,007,877
1,007,877
(4,091,148)
uP to3 MonthS
PayaBle on deMand
3 MonthS- 1 year
3 - 5 yearS
1 - 3 yearS
More than 5 yearS
iundeterMined other total
189,010
2,073,210
397,398,388
328,962,661
31,878,840
199,732,214
22,399,405
1,029,584,544
936,919
28,540,757
2,041,695,948
-
300,272,162
1,110,636,832
151,602,946
1,703,334
99,689,446
1,663,904,720
377,791,228
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278 NOTES TO ThE SEPARATED STATEMENTS
-
-
616,951
13,100,754
28,164,568
1,201,796
7,927,594
72,371,214
-
-
123,382,876
13,961,954
1,147,590,195
71,528,237
-
25,051,572
1,258,131,959
(1,134,749,082)
1,163,400
16,840,315
-
-
-
-
-
5,944,782
-
27,141,861
51,090,357
-
172,029
16,495,827
-
28,707,224
45,375,080
5,715,277
-
-
15,232,599
9,692,226
3,770,652
13,153,036
-
136,403,603
-
-
178,252,116
9,675,665
-
29,447,575
-
32,914,027
72,037,267
106,214,849
-
-
64,322,953
20,931,554
6,548,098
50,777,792
-
230,849,654
-
-
373,430,050
20,556,855
-
-
-
-
20,556,855
352,873,194
-
-
75,485,580
41,992,292
18,499,149
9,004,786
-
185,157,129
-
-
330,138,936
17,379,117
98,766,413
-
-
-
116,145,530
213,993,406
-
-
239,457,239
205,186,325
9,771,369
93,412,219
-
595,060,990
461,812
-
1,143,349,955
198,790,138
-
19,799,159
1,483,423
-
220,072,720
923,277,235
-
-
38,711,134
-
-
11,602,569
-
1,469,591
-
3,935,714
55,719,008
-
-
-
-
-
-
55,719,008
-
-
-
-
-
-
-
(4,415,060)
-
1,159,953
(3,255,107)
-
-
-
-
971,740
971,740
(4,226,848)
1,163,400
16,840,315
433,826,456
290,903,151
66,753,836
179,152,198
7,927,594
1,222,841,902
461,812
32,237,528
2,252,108,191
260,363,729
1,246,528,637
137,270,799
1,483,423
87,644,563
1,733,291,151
518,817,039
2008
contractual PeriodS to Maturity
uP to3 MonthS
PayaBle on deMand
3 MonthS- 1 year
3 - 5 yearS
1 - 3 yearS
More than 5 yearS
iundeterMined other total
assets
Cash and cash equivalents with central banks
Cash assets with other credit institutions
financial assets held for trading
Shares
financial derivative instruments
Other financial assets recognised
at fair value through profit or loss
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
hedge derivatives
Other assets
liabilities
financial liabilities held for trading
financial derivative instruments
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
liquidity gap
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279 NOTES TO ThE SEPARATED STATEMENTS
INTEREST RATE RISk
Interest rate risk comprises the fair value or cash flow risk associated with a determined financial instrument, if
altered on the basis of an alteration of market interest rates.
The following is a summary of the type of exposure to interest rate risk at 31 December 2009 and 2008:
assets
Cash assets with other credit institutions
financial assets held for trading
Shares
financial derivative instruments
Other financial assets recognised at fair value through profit or loss
hedge derivatives
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
Other assets
liabilities
financial liabilities held for trading
financial derivative instruments
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
net exposure
2009
-
42,968,768
-
-
-
24,798,886
-
(2,254,381)
28,540,757
94,054,030
-
-
-
-
99,689,446
99,689,446
(5,635,416)
-
271,242,852
4,578,911,046
2
5,000,000
25,079,535
-
13,409,321
-
4,893,642,756
4,632,057,991
158,398
41,611,400
11,661,158
-
4,685,488,948
208,153,808
2,073,210
33,733,819
4,622,892,300
29,718,232
11,661,158
121,505,532
22,309,842
905,414,437
-
5,749,308,531
4,569,745,355
1,108,770,565
104,832,697
5,000,000
-
5,788,348,617
(39,040,086)
not SuBJect to intereSt rate riSK
fiXed rate
VariaBle rate
total
2,073,210
347,945,439
9,201,803,346
29,718,234
16,661,158
171,383,953
22,309,842
916,569,377
28,540,757
10,737,005,317
9,201,803,346
1,108,928,963
146,444,097
16,661,158
99,689,446
10,573,527,010
163,478,307
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280
The “financial assets held for trading – shares” account heading at 31 December 2009 and 2008, included
€92,659,873 and €158,631,452 for a portfolio bond whose interest included a fixed-rate component indexed
to the stock market performance of a Portuguese share.
NOTES TO ThE SEPARATED STATEMENTS
-
38.711.134
-
-
-
11.602.569
-
(2.945.470)
32.237.528
79.605.762
-
-
-
-
87.644.563
87.644.563
(8.038.801)
-
278.078.862
3.461.034.304
2
5.000.000
44.936.887
-
14.195.958
-
3.803.246.013
3.504.152.659
172.029
30.098.708
12.456.798
-
3.546.880.194
256.365.819
16.840.315
45.648.603
3.498.388.528
59.655.601
12.456.798
45.275.439
7.863.177
896.252.853
-
4.582.381.314
3.455.270.173
1.237.459.241
100.786.754
5.000.000
-
4.798.516.168
(216.134.854)
16.840.315
362.438.599
6.959.422.832
59.655.602
17.456.798
101.814.896
7.863.177
907.503.341
32.237.528
8.465.233.089
6.959.422.832
1.237.631.270
130.885.462
17.456.798
87.644.563
8.433.040.925
32.192.164
assets
Cash assets with other credit institutions
financial assets held for trading
Shares
financial derivative instruments
Other financial assets recognised at fair value through profit or loss
hedge derivatives
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
Other assets
liabilities
financial liabilities held for trading
financial derivative instruments
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
net exposure
2008
not SuBJect to intereSt rate riSK
fiXed rate
VariaBle rate
total
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281 NOTES TO ThE SEPARATED STATEMENTS
Exposure to interest rate risk, at 31 December 2009 and 2008 can be broken down into the following maturity
periods:
2009
assets
Cash assets with other credit
institutions
financial assets held for trading
Shares
financial derivative instruments
Other financial assets recognised
at fair value through profit or loss
hedge derivatives
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
Other assets
liabilities
financial liabilities held for trading
financial derivative instruments
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
net exposure
2,073,210
-
-
-
-
-
-
5,678,935
23,525,778
31,277,922
-
158,398
28,293,523
-
21,192,349
49,644,271
(18,366,349)
-
33,733,819
1,619,739,356
24,517,045
-
100,666,907
22,309,842
524,366,368
-
2,325,333,337
1,623,768,912
1,007,105,156
44,556,079
-
21,840,009
2,697,270,155
(371,936,819)
-
10,550,519
3,035,025,328
5,201,187
11,661,158
25,037,216
-
375,529,748
-
3,463,005,156
3,049,797,865
75,693,131
60,276,618
5,000,000
36,749,210
3,227,516,824
235,488,332
-
45,472,805
1,675,037,041
-
-
5,110,407
-
-
-
1,725,620,253
1,660,005,795
25,972,278
-
-
18,900,000
1,704,878,073
20,742,180
-
162,975,356
800,899,250
2
5,000,000
15,632,287
-
-
-
984,506,895
799,629,023
-
6,051,307
-
-
805,680,330
178,826,565
-
52,244,172
2,071,102,371
-
-
138,250
-
13,248,708
-
2,136,733,501
2,068,601,751
-
7,266,570
11,661,158
-
2,087,529,479
49,204,022
-
42,968,768
-
-
-
24,798,886
-
1,826,980
4,016,889
73,611,523
-
-
-
-
-
-
73,611,523
-
-
-
-
-
-
-
(4,081,361)
998,091
(3,083,271)
-
-
-
-
1,007,877
1,007,877
(4,091,148)
2,073,210
347, 945,439
9,201,803,346
29,718,234
16,661,158
171,383,953
22,309,842
916,569,377
28,540,757
10,737,005,317
9,201,803,346
1,108,928,963
146,444,097
16,661,158
99,689,446
10,573,527,010
163,478,307
rate refiXing / contractual PeriodS to Maturity
2008
16,840,315
-
-
-
-
-
-
5,944,782
27,141,861
49,926,958
-
172,029
16,495,827
-
28,707,224
45,375,080
4,551,877
-
45,648,603
2,068,721,728
53,580,103
-
41,226,794
7,863,177
537,802,421
-
2,754,842,827
2,078,987,699
1,147,552,016
71,422,084
-
18,793,783
3,316,755,581
(561,912,754)
-
256,749
2,026,682,709
6,075,497
12,456,798
4,048,645
-
352,505,650
-
2,402,026,048
1,964,609,636
-
29,364,669
5,000,000
20,271,816
2,019,246,121
382,779,927
-
13,512,195
691,570,585
-
-
-
-
-
-
705,082,780
748,484,160
89,907,225
-
-
18,900,000
857,291,385
(152,208,605)
-
41,443,116
664,042,118
2
-
44,505,976
-
-
-
749,991,213
662,607,766
-
-
-
-
662,607,766
87,383,447
-
222,866,801
1,508,405,692
-
5,000,000
430,911
-
14,195,958
-
1,750,899,362
1,504,733,572
-
13,602,881
12,456,798
-
1,530,793,251
220,106,111
-
38,711,134
-
-
-
11,602,569
-
1,469,591
3,935,714
55,719,008
-
-
-
-
-
-
55,719,008
-
-
-
-
-
-
-
(4,415,060)
1,159,953
(3,255,107)
-
-
-
-
971,740
971,740
(4,226,848)
16,840,315
362,438,599
6,959,422,832
59,655,602
17,456,798
101,814,896
7,863,177
907,503,341
32,237,528
8,465,233,088
6,959,422,832
1,237,631,270
130,885,462
17,456,798
87,644,563
8,433,040,925
32,192,163
assets
Cash assets with other credit
institutions
financial assets held for trading
Shares
financial derivative instruments
Other financial assets recognised
at fair value through profit or loss
hedge derivatives
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
Other assets
liabilities
financial liabilities held for trading
financial derivative instruments
Other credit institutions’ resources
Customer resources and other loans
hedge derivatives
Other liabilities
net exposure
uP to3 MonthS
PayaBle on deMand
3 MonthS- 1 year
3 - 5 yearS
1 - 3 yearS
More than 5 yearS
iundeterMined other total
rate refiXing / contractual PeriodS to Maturity
uP to3 MonthS
PayaBle on deMand
3 MonthS- 1 year
3 - 5 yearS
1 - 3 yearS
More than 5 yearS
iundeterMined other total
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282 NOTES TO ThE SEPARATED STATEMENTS
The contents of the above referred to table were based on the following premises:
The book value of fixed-rate instruments was classified in accordance with their respective period to maturity;
The book value of variable-rate instruments (e.g. indexed to Euribor), was classified in accordance with the
respective maturity until the next refixing of the rate;
The book value of instruments not subject to interest rate risk (e.g. shares) was included in the “undetermined”
column;
The book value included in the “other” column comprises amounts which have already been received or paid
which are being deferred;
Information is provided on notional purchase amounts (as assets) and sales (as liabilities) on interest rate swaps;
Overdue loans to customers and amounts already received or paid were not considered subject to interest rate
risk; and,
Customers’ sight deposits, when no interest is paid, are considered as fixed-rate and classified as “payable on
demand”.
CREDIT RISk
Credit risk comprises financial losses on the defaults of counterparties who have entered into agreements on
financial instruments.
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283
MAXIMUM EXPOSURE TO CREDIT RISk
The following is a summary of the maximum exposure to credit risk, by financial instrument, at 31 December
2009 and 2008:
CREDIT QUALITy Of fINANCIAL ASSETS
The bank does not have an internal rating system. The principal procedures in force in terms of the approval and
monitoring of credit operations designed to ensure an adequate risk level for the bank’s strategy, are set out
below:
The bank has a credit council, comprising members of the executive board and managers of the commercial
divisions with any form of involvement in granting credit. The bank’s credit council meets once a week with a
minimum of two directors and managers of the commercial divisions involved in the credit granting process;
The production of commercial proposals for submission to the credit council is the responsibility of structural
organs (business / product divisions), which require the risk opinion of CgD’s Risk Management Division, in
advance. The proposals approved by the bank’s credit council are recorded in minutes and are signed by all
present, for later submission to and the final resolution of CgD’s credit councils.
NOTES TO ThE SEPARATED STATEMENTS
Assets
Cash and cash equivalents
in other credit institutions
financial assets held for trading
Other financial assets recognised
at fair value through profit or loss
Available for sale financial assets
Loans and advances to credit
institutions
Loans and advances to customers
hedge derivatives
Other assets (excluding deferred
costs)
Off-balance sheet
guarantees provided
2009
2,073,210
633,939,332
29,718,234
146,585,066
22,309,842
916,569,377
936,919
27,542,666
1,779,674,647
70,083,663
1,849,758,310
tyPe of financial inStruMent
2008
BooKValue
(groSS)
ProViSionS/ iMPairMent
BooKValue
(net)
-
-
-
-
-
24,709,087
-
4,315,936
29,025,023
-
29,025,023
2,073,210
633,939,332
29,718,234
146,585,066
22,309,842
891,860,290
936,919
23,226,730
1,750,649,624
70,083,663
1,820,733,287
16,840,315
614,630,616
59,655,602
90,212,327
7,863,177
907,503,341
461,812
31,077,565
1,728,244,755
78,850,623
1,807,095,378
-
-
-
-
-
7,779,275
-
3,935,714
11,714,989
-
11,714,989
16,840,315
614,630,616
59,655,602
90,212,327
7,863,177
899,724,067
461,812
27,141,851
1,716,529,767
78,850,623
1,795,380,390
BooKValue
(groSS)
ProViSionS/ iMPairMent
BooKValue
(net)
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284 NOTES TO ThE SEPARATED STATEMENTS
A part of credit operations with customers is, inter alia, guaranteed by the following types of collateral:
A pledge on securities;
Bank guarantees;
State-backed;
Mortgage loans for employees; and
Personal guarantees.
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285
CREDIT QUALITy Of DEBT SECURITIES AND fINANCIAL DERIVATIVE INSTRUMENTS
The following table provides information on the book value of debt securities in a portfolio net of impairment
(excluding matured securities) according to the Standard & Poor’s or equivalent rating, by type of guarantor or
issuing entity and by the guarantor‘s or issuing entity’s geography, at 31 December 2009 and 2008:
NOTES TO ThE SEPARATED STATEMENTS
financial assets held for trading
AAA
AA- to AA+
A- to A+
Less than A-
Unrated
Issued by
Corporate entities
governments and other local authorities
financial institutions
financial assets recognised at fair value
through profit or loss (fair value option)
AA- to AA+
Unrated
Issued by
Corporate entities
governments and other local authorities
financial institutions
Available for sale financial assets
(net of impairment)
AAA
AA- to AA+
A- to A+
Less than A-
Unrated
Issued by
Corporate entities
governments and other local authorities
financial institutions
2009
2,007,201
162,912,027
12,540,719
-
-
177,459,946
101,931,274
41,292,177
34,236,496
177,459,946
2
27,225,637
27,225,639
27,225,635
2
1
27,225,639
5,110,407
19,004,608
19,782,471
-
47,639,048
91,536,534
51,841,207
3,477,049
36,218,278
91,536,534
Portugal
-
18,117,069
45,731,817
27,547,205
-
91,396,090
18,164,573
-
73,231,517
91,396,090
-
-
-
-
-
-
-
1,863,218
7,522,155
22,290,610
8,603,070
-
40,279,054
1,496,412
-
38,782,642
40,279,054
reSt ofeuroPean union
-
2,909,557
3,427,469
-
-
6,337,026
-
-
6,337,026
6,337,026
-
-
-
-
-
-
-
-
-
10,423,801
-
-
10,423,801
-
-
10,423,801
10,423,801
north aMerica
-
5,989,174
15,743,178
8,051,256
-
29,783,608
4,754,734
3,972,919
21,055,955
29,783,608
-
2,492,596
2,492,596
-
-
2,492,596
2,492,596
-
4,345,678
-
-
-
4,345,678
-
-
4,345,678
4,345,678
other total
2,007,201
189,927,826
77,443,183
35,598,461
-
304,976,671
124,850,581
45,265,096
134,860,994
304,976,671
2
29,718,232
29,718,234
27,225,635
2
2,492,597
29,718,234
6,973,625
30,872,441
52,496,882
8,603,070
47,639,048
146,585,067
53,337,619
3,477,049
89,770,399
146,585,067
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286
The bank, at 31 December 2009 also recognised in “debtors – other” an amount of €1,079,632 relating to interest
on financial derivative instruments whose payment has been overdue for less than 3 months. The book value
recognised in financial assets held for trading relating to the said operations totalled €5,056,555.
NOTES TO ThE SEPARATED STATEMENTS
financial assets held for trading
AAA
AA- to AA+
A- to A+
Less than A-
Issued by
Corporate entities
governments and other local authorities
financial institutions
financial assets recognised at fair value
through profit or loss (fair value option)
AAA
AA- to AA+
A- to A+
Less than A-
Issued by
Corporate entities
governments and other local authorities
financial institutions
Available for sale financial assets (net of
impairment)
AA- to AA+
A- to A+
Unrated
Issued by
Corporate entities
financial institutions
-
247,943,255
8,731,419
844,049
257,518,723
-
89,311,803
168,206,920
257,518,723
-
973,128
6,075,497
37,197,096
44,245,721
43,272,591
973,128
1
44,245,721
39,251,030
16,671,354
22,658,988
78,581,373
39,330,343
39,251,030
78,581,373
-
32,212,113
4,091,002
2,570,939
38,874,054
2,312,342
-
36,561,712
38,874,054
11,066,323
-
-
1,978,699
13,045,022
-
11,066,323
1,978,699
13,045,022
-
2,498,286
-
2,498,286
-
2,498,286
2,498,286
-
2,023,615
2,388,174
-
4,411,789
-
-
4,411,789
4,411,789
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,321,730
11,295,915
9,305,254
-
22,922,899
1,554,905
-
21,367,994
22,922,899
-
-
-
2,364,860
2,364,860
-
-
2,364,860
2,364,860
-
9,132,668
-
9,132,668
-
9,132,668
9,132,668
2,321,730
293,474,898
24,515,849
3,414,988
323,727,465
3,867,247
89,311,803
230,548,414
323,727,465
11,066,323
973,128
6,075,497
41,540,654
59,655,602
43,272,591
12,039,451
4,343,560
59,655,602
39,251,030
28,302,308
22,658,988
90,212,327
39,330,343
50,881,984
90,212,327
2008
Portugal reSt ofeuroPean union
north aMerica
other total
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287
CREDIT QUALITy Of LOANS AND ADVANCES TO CREDIT INSTITUTIONS
The counterparties with which the bank had contracted “loans and advances to credit institutions” at 31 December
2009, comprised CgD group bodies (€7,189,619), with an external rating of AA- and another financial institution
headquartered in Portugal (€15,000,000), which latter operation was guaranteed by the Portuguese state.
CREDIT QUALITy Of LOANS AND ADVANCES TO CUSTOMERS
Information on overdue credit operations at 31 December 2009 and 2008, is set out in the following table.
The following classifications were used for the preparation of the above tables:
“Performing loans” – loans without any overdue payments or with balances overdue up to 30 days;
“Non-performing loans ” – loans balances overdue between 30-90 days;
“Loans in default” – loans with balances overdue more than 90 days. In the case of corporate loans, if a customer
has at least one operation with payments overdue for more than 90 days, the full amount of the customer’s
exposure to the group is reclassified to this category.
NOTES TO ThE SEPARATED STATEMENTS
Corporate loans
Outstanding
Overdue
Mortgage lending
Outstanding
Consumer credit
Outstanding
Total outstanding credit
Total overdue credit
Provisions for bad and
doubtful debts
Provisions for overdue credit
net amount
2009 2008
894,193,107
-
894,193,107
8,722,647
549,685
903,465,439
-
(6,309,684)
-
897,155,755
873,379,436
-
873,379,436
10,128,029
448,201
883,955,666
-
(11,901,345)
-
872,054,321
23,833,131
84,951
23,918,082
-
-
23,833,131
84,951
(7,175,425)
-
16,742,657
905,315,465
1,826,980
907,142,445
10,128,029
448,201
915,891,695
1,826,980
(23,128,219)
(1,580,868)
893,009,588
PerforMing credit
non-PerforMing credit
total credit
credit in default
8,102,898
1,742,029
9,844,927
-
-
8,102,898
1,742,029
(4,051,449)
(1,580,868)
4,212,610
-
1,469,591
1,469,591
-
-
-
1,469,591
-
(1,469,591)
-
894,193,107
1,469,591
895,662,698
8,722,647
549,685
903,465,439
1,469,591
(6,309,684)
(1,469,591)
897,155,755
PerforMing credit
credit in default
total credit
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288 NOTES TO ThE SEPARATED STATEMENTS
The book value of loans and advances to customers which would have had unpaid instalments at 31 December
2009 and 2008, if such loans and advances had not been renegotiated totalled €22,091,449 and €36,483,942
respectively. The bank had recorded bad debt provisions of €9,979,837 and €6,309,684 respectively on such
loans at 31 December 2009 and 2008.
Market risk
Market risk comprises the risk of a change in the fair value or the cash flows of financial instruments deriving from
changes in market prices, including foreign exchange, interest rate and price risks.
The bank’s market risk is assessed on the basis of the following methodologies:
Value-at-Risk” (VaR) on the trading portfolio, including the securities and financial derivatives portfolios;
A sensitivity analysis on the bank’s remaining assets and liabilities. This sensitivity analysis is calculated on the
bases of the premises defined in Bank of Portugal Instruction 19/2005.
Trading portfolio
VaR comprises an estimate of the maximum potential loss on a specific assets portfolio, over a determined period
with a given confidence level, assuming normal market operation.
The calculation methodology used is that of historical simulation i.e. future events are fully explained by past
events, based on the following premises:
Asset held for: 10 days;
Confidence level: 99%;
Price sampling period: 720 calendar days;
Decay factor = 1, i.e. all observations carry the same weight;
for options, the theoretical price is calculated by the use of adequate models and the use of implicit volatility. No
calculation for correlations is made, owing to the methodology applied; i.e. the correlations are empirical.
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289
The following is a breakdown of VaR at 31 December 2009 and 2008 (thousand euros):
The diversification effect is calculated implicitly. Total VaR refers to the combined effect of interest rate, price,
foreign exchange and volatility risks.
Bpvs (basis point values), changes in the market value of interest rate positions owing to the parallel movement
of 1 basis point on the yield curves are calculated for the trading portfolio and treasury positions. Other sensitivity
indices commonly applicable to options portfolios are also calculated.
Stress testing assessments are realised monthly.
Theoretical backtesting (comparison of the VaR measure with technical results) is performed daily and real
backtesting (comparison of the VaR measure with the real result) monthly. The number of exceptions obtained
i.e. the number of times theoretical or real losses exceed VaR, enable the method’s accuracy to be assessed and
any necessary adjustments made.
Non-trading portfolio
The sensitivity analysis on the non-trading portfolio was carried out to determine the potential impact on the
bank’s net interest income in 2010, considering a fall of 50 basis points (bps) in reference interest rates and
assuming a parallel movement of the interest rate curve. The bank’s financial assets and liabilities were considered
for this purpose, excluding:
financial derivative instruments; and
Commercial paper.
NOTES TO ThE SEPARATED STATEMENTS
2008
Market VaR
Interest rate
foreign exchange
Market price
Diversification effect
2009
374
87
50
(105)
406
221
17
34
(40)
232
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290 NOTES TO ThE SEPARATED STATEMENTS
The principal premises related with the pricing of operations were:
Variable-rate operations: market rate plus respective contractual spread;
New fixed-rate operations: market rate plus respective spread equivalent to the difference between the average
rate on live transactions at 31 December 2009 and respective market rate;
New variable-rate operations: market rate plus average contractual spread on live transactions at 31 December
2009.
Based on the above referred to premises, the potential positive impact of a 50 basis points fall in reference interest
rates on net interest income for 2010 totals €639,092 (€2,359,820 at 31 December 2008). In the event of a 50
basis points increase in reference interest rates, the potential negative impact on the net interest income forecast
for 2010 totals €1,348,133 (€2,388,738 at 31 December 2008).
fair value
The bank maintains a significant part of its assets, notably its securities and derivatives portfolio, at fair value
through profit or loss.
Reference should be made to the following aspects as regards the principal financial assets and liabilities
recognised at cost:
Interest is paid on almost all loans and advances and resources with other credit institutions at indexed rates
and short refixing periods;
As shown above, in the section on interest rate risk, the payment of interest on almost all customer deposits is
indexed to Euribor, with short refixing periods. A long term operation at fixed interest rates has been covered by
a hedge derivative for which reason the change in the fair value attributable to the interest rate risk has already
been recognised in the deposit’s book value (see Note 17).
In light of the above, the bank considers that the book value of its financial assets, net of provisions and its financial
liabilities comprises a reliable approximation of their respective fair value.
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291
The form of determining the fair value of financial instruments at 31 December 2009 and 2008, is summarised
below:
NOTES TO ThE SEPARATED STATEMENTS
-
-
153,127
-
153,127
-
-
-
231,782,327
2
86,360,190
-
318,142,519
-
-
-
445,125,773
958,684
35,236,453
936,919
482,257,829
(300,272,162)
(1,703,334)
(301,975,496)
-
28,759,548
49,634,184
-
78,393,732
-
-
-
676,908,100
29,718,234
171,383,953
936,919
878,947,206
(300,272,162)
(1,703,334)
(301,975,496)
2009
total tyPe of financial inStruMent
financial inStruMentSat fair Value
MarKet data
(leVel 2)
other (leVel 3)
aSSetS at coSt
ValuationtechniqueS BaSed on:
PriceS on an actiVe MarKet
(leVel 1)
Assets
financial assets held for trading
Other financial assets recognised
at fair value through profit or loss
Available for sale financial assets
hedge derivatives
Liabilities
financial liabilities held for trading
hedge derivatives
-
-
3,216,848
-
3,216,848
-
-
-
177,008,218
11,066,326
6,754,513
-
194,829,057
-
-
-
317,702,080
7,892,361
63,073,781
461,812
389,130,035
(260,363,729)
(1,483,423)
(261,847,152)
158,631,452
40,696,915
28,769,753
-
228,098,120
-
-
-
653,341,750
59,655,602
101,814,896
461,812
815,274,060
(260,363,729)
(1,483,423)
(261,847,152)
2008
total tyPe of financial inStruMent
financial inStruMentSat fair Value
MarKet data
(leVel 2)
other (leVel 3)
aSSetS at coSt
ValuationtechniqueS BaSed on:
PriceS on an actiVe MarKet
(leVel 1)
Assets
financial assets held for trading
Other financial assets recognised
at fair value through profit or loss
Available for sale financial assets
hedge derivatives
Liabilities
financial liabilities held for trading
hedge derivatives
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292 NOTES TO ThE SEPARATED STATEMENTS
The contents of the above referred to table were based on the following premises:
Prices on active markets correspond to equity instruments listed on a stock market and high liquidity bonds
(Level 1);
Prices of financial derivative instruments are calculated using valuation techniques based on market data (Level 2);
Portfolio shares valued by indicative bids supplied by contributors external to the group were also recognised in
“Valuation techniques - market data (Level 2)”;
Shares valued by internal CgD group models are presented in “Valuation techniques – Other (Level 3)”; This
column includes: This column includes:
At 31 December 2008, €158,631,452 in bonds convertible into EDP shares issued by Parpública SgPS, S.A.,
which were being valued in accordance with an internal model defined by the bank. In 2009, the bank opted
to value the security on the basis of indicative bids supplied by external counterparties;
At 31 December 2009 and 2008, €1,992,123 and €2,062,120 , respectively, relating to a financial investment
valued by an internal model for updating projected cash flows;
At 31 December 2009 and 2008, €76,401,609 and €67,404,550, respectively, relating to fixed or variable-rate
bonds issued by Portuguese financial and non-financial companies, in respect of which there are no active
market nor indicative prices supplied by external counterparties. The bank values these securities using a
projected cash flow updating model at market interest rates plus a spread the bank considers adequate to
the issuing entity’s credit risk as a discount rate.
Assets valued at cost are stable financial investments held by the bank for which no active market exists.
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293
The following is a summary, in 2009, of the movements occurring in portfolio securities valued at 31 December
2009 and 2008 by “valuation techniques – other” in addition to the potential and realised capital gains recognised
in the fair value reserve and in income from financial operations:
34. CAPITAL MANAgEMENT
The bank in performing its investment banking operations exercises strict control over the ratio between its assets
management needs and available capital. This management action on the bank’s capital has been designed to
cater for any default in terms of capital requirements, exceeding reporting obligations and making it possible to
simulate the impacts of hypothetical management decisions on the diverse prudential ratios.
Capital management is designed to optimise the above referred to ratio, with a prudential margin providing for
the resolutions to be passed in terms of the bank’s asset management.
The bank’s administration received periodic internal reports permitting not only the monitoring of the resolutions
taken in assets management terms but also the spaces between real positions and their minimum respective
capital requirements.
The procedures used to calculate the bank’s ratios and prudential limits are based on the dispositions issued by
the Bank of Portugal, as is the case for issues pertaining to the banking system’s supervisory functions. These
regulations represent the legal and regulatory framework on various prudential matters.
NOTES TO ThE SEPARATED STATEMENTS
158,631,452
40,696,915
28,769,753
228,098,120
(158,631,452)
4,940,535
-
(153,690,917)
-
(213,282)
-
(213,282)
-
(364,621)
(98,645)
(463,266)
-
(16,300,000)
16,203,200
(96,800)
-
-
4,829,872
4,829,872
-
-
(69,997)
(69,997)
-
28,759,548
49,634,184
78,393,732
financial assets held
for trading
Other financial assets
recognised at fair value
through profit or loss
Available for sale
financial assets
aMountS recogniSed in incoMe
StateMent for year
Balance at 31-12-2008
eXchange difference
Balance at 31-12-2009
fair Value reSerVeS
effectiVe Potential acquiSitionS/ alienationS
change of Valuation
Method
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294
The solvency ratio, at 31 December 2009 and 2008 was determined as follows:
NOTES TO ThE SEPARATED STATEMENTS
Paid up capital
(-) Treasury stock
Legal, statutory and other reserves
Retained earnings
Other deductions
Basis own funds
fixed assets revaluation reserves
Provisions for general credit risks
Revaluation differences on available for sale assets – positive fair value
complementary own funds
eligible own funds (base and complementary)
Credit risk and counterparty credit risk
(-) 8% provisions for general credit risks - part non-eligible for own funds
Position risks - debt instruments
Position risks - equity securities
Commodities risk
Operational risk - standard indicator method
Operational risk - basic indicator method
own funds requirements
Solvency ratio
31-12-2009
81,250,000
(5,999,453)
67,321,134
44,162,390
(6,815,974)
179,918,096
4,338,403
8,889,558
241,293
13,469,254
193,387,350
122,031,977
(464,115)
36,107,812
5,402,612
287,514
11,434,059
-
174,799,858
8.85%
81,250,000
(5,999,453)
59,910,835
42,628,313
(4,098,796)
173,690,899
4,338,403
-
77,449
4,415,852
178,106,751
122,252,526
(687,699)
26,362,005
4,645,336
963,828
-
10,805,814
164,341,811
8.67%
31-12-2008
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REPORT AND OPINION Of AUDIT BOARD
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296 REPORT AND OPINION Of AUDIT BOARD
In compliance with the dispositions of sub-paragraph g) of no. 1 of article 420, articles 452 and 508-D of the
Commercial Companies Code, Caixa - Banco de Investimento, S.A.’s audit board hereby submits its inspection
report for the year ended 31 December 2009, in addition to its opinion on the separate and consolidated
management report and accounts for the same year and proposal for the appropriation of net income, submitted
by the board of directors.
The audit board, during the year in question, accompanied the performance of the bank’s activity, with the
periodicity and to the extent considered necessary, having systematically analysed the information received for
the said purpose, including the information set out in the monthly financial reports, not only in respect of the
bank but also the other companies included in the consolidation.
It also considered the criteria used to set up and reinforce reserves and determine impairment on the bank’s
assets and, as regards the former, its respective liabilities.
The audit board kept in close touch with the executive board for the purpose of obtaining information on the
evolution of the company’s situation and attended board of directors’ meetings in which the financial and activity
reports for each quarter were considered.
The audit board attended thirteen formal meetings during the course of the year and, in addition to making
other contacts, met with the representative of the statutory auditor for a joint analysis of the issues pertaining
to the sphere of both bodies.
To complement its compilation of documentary information, the audit board made systematic contact with
departmental representatives - particularly the Audit and Compliance Offices and the Information Systems
Division – to analyse the periodic reports on the development of internal audit operations.
The audit board also met with representatives of the Risk Management Division and Caixa geral de Depósitos’
Compliance function Support Office, to compile information on the articulation of the corresponding functions
on a CgD group level, particularly as regards Caixa - Banco de Investimento’s activity.
The audit board issued its opinion on the bank’s internal control system, on 22 May 2009, in compliance with
the dispositions of sub-paragraph a) of no. 5 of article 25 of the Bank of Portugal’s official notice 5/2008 of 25
June, in accordance with the schedule established for the purpose in question within Caixa geral de Depósitos
group.
A contract for the provision of services in support of the Internal Audit Office’s functions, entered into between
the bank and Deloitte, which the audit board had already examined last year, remained in force, in 2009.
The position expressed at the said time that, in light of the nature and dimension of the contracted services and
the manner of performance thereof, according to the information obtained to the effect that this relationship
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297
does not appear to interfere with the statutory auditor’s independence in performing its respective functions,
was restated.
The audit board considers that particular mention should be made of the following facts which demonstrate the
bank’s good performance, in 2009, evidencing the consistency of its performance associated with its business
innovation and development capacity:
global finance’s “Best Investment Bank in Portugal” award;
Euromoney’s recognition as the “Best Equity Bank in Portugal”;
Bloomberg’s classification as the “Principal Bookrunner” for bond issues denominated in euros, for domestic
issuers;
Its position as an important world player in the project finance area;
growth of 31.8% in net operating income over the preceding year;
Significantly improved efficiency, with a 28.4% to 23.4% improvement in cost-to-income over 2008;
good net income level of €45.6 million.
Reference should be made to the following indicators which characterise the bank’s consolidated accounts for
the year:
The bank’s consolidated net assets were up €33.5 million over the preceding year to €1 930 million.
Contributory factors were the €62.8 million growth in available for sale financial assets and €15.8 million in
loans and advances to credit institutions, €14.2 million in deferred tax assets and €13.2 million in loans and
advances to customers, in addition to the decreases of €30.86 million financial assets at fair value through
profit or loss, €22.7 million in other assets and €14.8 million in cash assets with other credit institutions.
On the liabilities side, special reference should be made to the €39.9 million increase in financial liabilities
recognised at fair value through profit or loss, €20 million in customer resources and other loans, €16.7
million in other liabilities and €15.8 million in current tax liabilities in addition to the €128.7 million decrease
in other credit institutions’ resources.
Consolidated shareholders’ equity was up 35.8% by €68.1 million over the preceding year owing to the
positive change of €46 million in fair value reserves and €15.4 million in net income for the period.
REPORT AND OPINION Of AUDIT BOARD
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298
Net operating income was up €28.5 million over 2008 to €118 million. Contributory factors were net interest
income with an additional €10.7 million, income from financial operations of €22 million and net commissions
with an additional €2.4 million.
The already referred to consolidated net income of €45.6 million was up €15.4 million over 2008. Cash flow
was also up €29.8 million over the preceding year to €92.2 million.
The following indicators on the separate accounts translate the bank’s activity for the year:
Net assets were down €10.3 million over 31 December 2008 to €1 927.9 million. Special reference should
be made to the decreases of €74.3 million in investments in subsidiaries, associated companies and joint
enterprises, €29.9 million in financial assets recognised at fair value through profit or loss and €16.8 million
in cash assets with other credit institutions. This was offset by a €69.6 million growth in available for sale
financial assets, €23.6 million in financial assets held for trading and €14.4 million in loans and advances
to credit institutions;
On the liabilities side, reference should also be made to the €33.3 million decrease over the preceding year
as a result of the €128.7 million decrease in other credit institutions’ resources, partly offset by the €39.9
million increase in financial liabilities held for trading, €15.5 million in customer resources and other loans,
€12.2 million in provisions, €15.4 million in current tax liabilities and €12 million in other liabilities;
Shareholders’ equity was up €23 million over the preceding year to €226.4 million. This growth derived
from the positive combination effect of changes of €9 million in other reserves and retained earnings, €4.6
million in revaluation reserves and €9.4 million in net income for the period;
The solvency ratio, calculated in accordance with Bank of Portugal rules was 8.85% in comparison to the
preceding year’s 8.67%;
Net operating income was up 40.8% by €31.1 million to €107.2 million over 2008, particularly owing to
the good performance comprising the €21 million increase in income from financial operations and €9.7
million increase in net interest income;
There was a 29.2% increase of €9.5 million in net income for the period to €42 million.
The audit board examined the separate and consolidated reports for 2009 submitted by the board of directors
and inspected the process involving the preparation and disclosure of the financial information.
It also met with the representative of the statutory auditor for the joint consideration of the said documents
and appraisal of the conclusions of the separate and consolidated accounts revision work, with which, having
examined the contents of the statutory audit certificate and their compliance with legal requirements, it is in
agreement.
REPORT AND OPINION Of AUDIT BOARD
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299
In conformity with the above, the audit board considers that the shareholders’ meeting:
Should approve the separate and consolidated management report and accounts for 2009 as submitted by
the board of directors;
Should approve the proposal for the appropriation of net income set out in the same report;
Should undertake a general appraisal of the company’s management and inspection and draw the conclusions
referred to in article 455 of the Commercial Companies Code.
The audit board wishes to thank the board of directors and executive committee, statutory auditor and the bank’s
various departments for their assistance in the performance of its functions.
Lisbon, 3 february 2010
audit Board
hernâni da Costa Loureiro
Chairman
António José Nascimento Ribeiro
Board Member
João de Sousa Martins
Board Member
REPORT AND OPINION Of AUDIT BOARD
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STATUTORy AUDIT CERTIfICATE CONSOLIDATED ACCOUNTS
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301 STATUTORy AUDIT CERTIfICATE CONSOLIDATED ACCOUNTS
(Amounts in euros)
INTRODUCTION
1. we have examined the attached consolidated financial statements of Caixa – Banco de Investimento, S.A.
(bank) and its subsidiaries, comprising the statement of its consolidated financial position at 31 December
2009, comprising a total of €1,930,506,567 and shareholders’ equity of €258,573,031, including net income
of €45,606,639, the consolidated statements of comprehensive income, changes to shareholders’ equity and
cash flows for the year then ended and corresponding notes.
RESPONSIBILITIES
2. The bank’s board of directors is responsible for preparing consolidated financial statements with a view
to presenting a true and appropriate description of the financial position of the companies included in the
consolidation, the comprehensive income generated by their operations, changes to consolidated
shareholders’ equity and consolidated cash flows, in addition to using adequate accounting policies and
criteria and maintaining appropriate internal control systems. It is our responsibility to express a professional,
independent opinion thereon, based on our examination of the said financial statements.
SCOPE
3. Our examination was performed in conformity with the technical standards and revision / audit directives of the
Order of Statutory Auditors* which require that the examination be planned and performed with the objective
of obtaining an acceptable degree of assurance as to whether the consolidated financial statements contain
any materially relevant distortions. The examination included verification of specimens of the supporting documents
upon which the amounts and information disclosed in the financial statements have been based and an
assessment of estimates based on judgements and criteria defined by the board of directors and used for the
preparation thereof. The examination also included verification of the consolidation operations and application
of the equity accounting method and whether the financial statements of the consolidated companies have
been appropriately examined; an appraisal of the adequacy of the accounting policies used, their uniform
application and disclosure, based on the circumstances, verification of the applicability of the going-concern
principle and whether the global presentation of the consolidated financial statements is adequate. Our
examination also included verification of concordance between the consolidated financial information contained
in the board of directors’ report and the consolidated financial statements. we consider that our examination
has provided us with an acceptable basis upon which to base our opinion.
* Ordem dos Revisores Oficiais de Contas
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302
OPINION
4. In our opinion, the consolidated financial statements, referred to in paragraph 1 above, provide a true and
appropriate description, in all materially relevant aspects, of the consolidated financial position of Caixa – Banco
de Investimento, S.A. and its subsidiaries at 31 December 2009, the consolidated income generated by their
operations and consolidated cash flows for the year then ended in conformity with the International financial
Reporting Standards, as adopted by the European Union.
Lisbon, 03 february 2010
Deloitte & Associados, SROC S.A.
Represented by João Carlos henriques gomes ferreira
STATUTORy AUDIT CERTIfICATE CONSOLIDATED ACCOUNTS
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STATUTORy AUDIT CERTIfICATE SEPARATE ACCOUNTS
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304 STATUTORy AUDIT CERTIfICATE SEPARATE ACCOUNTS
(Amounts in euros)
INTRODUCTION
1. we have examined the attached financial statements of Caixa - Banco de Investimento, S.A. (bank) comprising
the statement of its separate financial position at 31 December 2009, with total assets of €1,927,907,922
and shareholders’ equity of €226,437,269 including net income of €41,969,026, separate statements of
comprehensive income, income, changes to shareholders’ equity and cash flows for the year then ended and
corresponding notes.
RESPONSIBILITIES
2. The bank’s board of directors is responsible for preparing financial statements with a view to presenting a true
and appropriate description of the bank’s financial position, the comprehensive income generated by its operations,
changes to shareholders’ equity and cash flows, in addition to using adequate accounting policies and criteria
and maintaining an appropriate internal control system. It is our responsibility to express a professional,
independent opinion thereon, based on our examination of the said financial statements.
SCOPE
3. Our examination was performed in conformity with the technical standards and revision / audit directives of the
Order of Statutory Auditors* which require that the examination be planned and performed with the objective
of obtaining an acceptable degree of assurance as to whether the financial statements contain any materially
relevant distortions. The examination included verification of specimens of the supporting documents upon
which the amounts and information disclosed in the financial statements have been based and an assessment
of estimates, based on judgements and criteria defined by the board of directors and used for the preparation
thereof. The examination also included verification of whether the accounting policies used are adequate and
their disclosure, based on the circumstances, verification of the applicability of the going-concern principle
and whether the global presentation of the financial statements is adequate. Our examination also included
verification of concordance between the financial information contained in the board of directors’ report and
the financial statements. we consider that our examination has provided us with an acceptable basis upon
which to base our opinion.
* Ordem dos Revisores Oficiais de Contas
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305
OPINION
4. In our opinion, the separate financial statements, referred to in paragraph 1 above, provide a true and
appropriate description, in all materially relevant aspects, for the objectives specified in paragraph 5 below, of
Caixa – Banco de Investimento, S.A.’s financial position at 31 December 2009, the comprehensive income
generated by its operations, changes to shareholders’ equity and cash flows for the year then ended, in
conformity with the “Adjusted Accounting Standards” issued by the Bank of Portugal (Note 2).
EMPhASIS Of MATTERS
5. The financial statements referred to in paragraph 1 above, refer to the bank’s separate activity and have been
prepared for approval and publication under current legislation and the requirements of the Bank of Portugal.
In conformity with the accounting policies applicable to the bank’s separate activity, its majority shareholdings
are recognised at cost. The bank will be submitting separate consolidated accounts to include the effect of the
integral consolidation of its total assets, liabilities, costs and income.
Lisbon, 03 february 2010
Deloitte & Associados, SROC S.A.
Represented by João Carlos henriques gomes ferreira
STATUTORy AUDIT CERTIfICATE SEPARATE ACCOUNTS
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