SFIL Annual financial report 2018

3 I Consolidated financial statements in accordance with IFRS 90 SFIL Annual Financial Report 2018 5.3 - NET RESULT OF FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS 2017 2018 Net Result on non hedging derivatives 2 20 Net result on financial Assets or liabilities at fair value through profit or loss - 12 Net result of hedge accounting (9) 11 Net result of foreign exchange transactions 0 - TOTAL (7) 43 All interest received and paid on the assets, liabilities and derivatives is recognized as net interest income, as required under IFRS. Consequently, the net gains or losses on hedging operations merely include the change in the clean value of the derivatives and the re-valuation of the assets and liabilities registered in relation to the hedge. Analysis of net result of hedge accounting 2017 2018 Fair value hedges 11 (2) Fair value changes in the hedged item attributable to the hedged risk (46) (79) Fair value changes in the hedging derivatives 57 77 Couvertures de flux de trésorerie - - Fair value changes in the hedging derivatives – ineffective portion - - Discontinuation of cash fow hedge accounting (Cash fows no longer expected to occur) - - Portfolio hedge - - Fair value changes in the hedged item (223) 50 Fair value changes in the hedging derivatives 223 (50) CVA / DVA Impact (1) (20) 13 TOTAL (9) 11 (1) The efect of the application of IFRS Standard 13 brought to light a net income as of December 31, 2018 of EUR 13 million; this amount was derived using the DVA income for EUR 14 million and the CVA for EUR -1 million. 5.4 - NET RESULT OF FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH EQUITY 2017 2018 Net result of disposals of bonds at fair value through equity N/A - Net result of disposals of loans at fair value through equity N/A 0 TOTAL N/A 0 5.5 - GAINS AND LOSSES RESULTING FROM DERECOGNITION OF FINANCIAL INSTRUMENTS AT AMORTIZED COSTS 2017 2018 Net result of disposals or prepayments of bonds at amortized cost N/A 0 Net result of disposals or prepayments of loans and advances to banks at amortized cost N/A - Net result of disposals or prepayments of loans and advances to customers at amortized cost N/A 16 Net result of disposals or prepayments of due to banks at amortized cost N/A (4) Net result of disposals or prepayments of debt securities at amortized cost N/A - TOTAL N/A 12