SFIL Annual financial report 2018

3 I Consolidated financial statements in accordance with IFRS 104 SFIL Annual Financial Report 2018 Reclassifications IAS 39 12/31/2017 Financial assets available for sale (a) Debt securities assimilated to loans and advances in IAS 39 (b) Loans and advances non SPPI (c) Hedging derivatives of loans and advances non SPPI (d) Net amount after restatment phase 1 LIABILITIES Central banks - - - - - - Liabilities at fair value through net income 4 - - - 1,476 1,480 Hedging derivatives 8,063 - - - (1,476) 6,587 Due to banks at amortized cost 4,215 - - - - 4,215 Customer borrowing and deposits at amortized cost - - - - - - Debt securities at amortized cost 56,315 - - - - 56,315 Fair value revaluation of portfolio hedge 883 - - - - 883 Current tax liabilities 1 - - - - 1 Deferred tax liabilities - - - - - - Other liabilities 1,434 - - - - 1,434 Provisions 48 - - - - 48 Subordinated debt - - - - - - EQUITY 1,469 - - - - 1,469 Capital 1,445 - - - - 1,445 Reserves and retained earnings 72 - - - - 72 Gains and losses recognised in equity (102) - - - - (102) Net income for the period 54 - - - - 54 TOTAL 72,432 - - - - 72,432 (a) Instruments classified as Available for sale financial asset under IAS 39 standard are debt securities, cash-flows of which are composed only by the repayment of principal and interest. They have been reclassified depending on the business model they are held within: debt securities acquired for cash investment purposes and held within an hold-to-collect-and-sell model have been reclassified as Financial assets at fair value through the other comprehensive income section of equity, while those held within an hold-to-collect model have been reclassified as Bonds at amortized cost. (b) Debt securities classified as Loans and advances to customers at amortized cost under IAS 39 standard have been reclassified as Debt securities at amortized cost. (c) Loans and advances, contractual cash-flows of which are not compliant with the SPPI criterion defined under IFRS 9 standard, have been reclassified from the Loans and advances to customers at amortized cost category to the Loans and advances to customers at fair value through net income category: they are composed of loans, contractual flows of which are not in line with those of a basic lending agreement as the latter is defined under the standard; this may be due in particular to the inclusion in the interest rate formula of a leverage efect or an indexation on foreign exchange rates. (d) Hedging derivative instruments for which the hedged financial asset has been reclassified as Financial assets at fair value through net income have been disqualified and reclassified, on the asset side or the liability side of the balance sheet, as Derivatives at fair value through net income.