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Methodology

Analytical Profit and Loss Account for Credit Institutions

The presentation of the profit and loss account of the statistical credit institutions corresponds exactly to the declared information; however, this section will detail the composition of the main aggregates of the result and their comparison with the corresponding ones of non-financial entities. Accounting regulations define the name and definition of profit margins.

  • Interest margin It constitutes the financial margin obtained by deposit institutions in credit granting and deposit creation operations and is measured by the difference between interest received and interest paid, or in other words, between products and financial costs and is configured to replace the intermediation margin as the first reference margin.
  • Gross margin It includes, apart from interest, the production of banking services intended for sale, which are identified with the commissions received less those paid, the results of financial operations derived from the trading portfolio and other financial instruments, returns on capital instruments, exchange differences and other products and operating expenses. This margin is the closest expression of the added value of non-financial entities.
  • Gross operating profit (derived variable) is formed by the gross margin less administrative expenses, which include personnel expenses.
  • Result of operating activity corresponds to the gross operating result reduced by amortization, provisions and impairment losses on financial assets. They have their equivalent in the operating results of non-financial entities.
  • Earnings before taxes, the results of the operating activity are added to the results of non-financial activities, and specifically the losses due to impairment of the rest of the assets, the gains or losses on the disposal of assets not classified as non-current assets for sale or not classified as discontinued operations, negative differences from business combinations.
  • Result for the year from continuing operations and is calculated as the result before taxes net of the profit tax, and reduced by the mandatory allocations to works and social funds of savings banks and credit cooperatives.
  • Result of the year (or accounting result) It is obtained as the sum of the results of the financial year from continued operations and discontinued operations and is equivalent to the results after taxes of non-financial companies.