Consolidated cash flow statements
(Notes 1, 2 and 3)
Thousands of pesos
| Year ended on December 31, |
|||
| Note | 2017 | 2016 | |
|---|---|---|---|
| Operating activities | |||
| Profit before income tax | $ 12,875,677 | $ 13,863,065 | |
| Adjustment from items not implying cash flows: | |||
| Depreciation and amortization | 3,423,103 | 2,644,521 | |
| Provision for impairment of the loan portfolio | 8 | 3,081,018 | 2,337,642 |
| Inventory reserve | 832,139 | 786,735 | |
| Share of profit of associates | 11.2 | (628,030) | (715,672) |
| Gain on sale of property, furniture and equipment | (370,588) | (11,578) | |
| Gain on sale of investment properties | - | (57,512) | |
| Net cost for the period of labor obligations | 17 | 183,151 | 84,526 |
| Interest earned | (5,708,985) | (4,754,420) | |
| Accrued interest expense | 2,770,722 | 1,338,235 | |
| 3,582,530 | 1,652,477 |
||
| (Increase) decrease in: | |||
| Interest earned from customers | 5,672,913 | 4,780,945 | |
| Short - term loan portfolio | (5,258,035) | (3,159,073) | |
| Inventory | (921,726) | (3,064,255) | |
| Value added tax recoverable | 1,296,974 | (1,603,468) | |
| Other accounts receivable | (908,773) | (176,522) | |
| Prepaid expenses | 133,095 | (603,299) | |
| Long - term loan portfolio | (408,910) | (897,800) | |
| Other long-term accounts receivable | (39,922) | (14,095) | |
| Increase (decrease) in: | |||
| Suppliers | 2,041,505 | 3,896,176 | |
| Provisions | 6,954 | 50,687 | |
| Deferred income | 129,180 | 166,887 | |
| Creditors | (451,761) | 944,592 | |
| Employee benefits paid | 48,949 | 97,832 | |
| Taxes paid | (4,438,208) | (3,678,173) | |
| Net cash flows from operating activities | 13,360,442 | 12,255,976 | |
| Investment activities | |||
| Acquisition of subsidiary - net of cash | (17,532,852) | - | |
| Dividends received from associates | 120,102 | 246,069 | |
| Acquisition of property, furniture and equipment | 13 | (5,807,501) | (5,701,018) |
| Acquisition of investment property | 12 | (1,558,595) | (1,356,248) |
| Sale of property, furniture and equipment | 815,193 | 124,768 | |
| Sale of investment properties | - | 84,847 |
|
| Investment in new IT developments | 14 | (1,051,703) | (900,941) |
| Net cash flows from investing activities | (25,015,356) | (7,502,523) | |
| Cash to be applied in financing activities | (11,654,914) | 4,753,453 | |
| Financing activities | |||
| Dividends paid | 20.1 | (1,288,292) | (1,288,366) |
| Interest paid | (2,645,946) | (1,020,240) | |
| Debt paid | (3,350,000) | - | |
| Issuance of senior notes | 10,000,000 | 14,546,164 |
|
| Net cash flows from financing activities | 2,715,762 | 12,237,558 | |
| Net (decrease) increase of cash and temporary investments | (8,939,152) | 16,991,011 | |
| Cash and cash equivalents at the beginning of the year | 24,818,261 | 7,759,790 | |
| Exchange loss on cash and cash equivalents | 755,969 | 823,429 | |
| Cash and cash equivalents at end of year | $ 16,635,078 | $ 25,574,230 | |
The accompanying notes are an integral part of these consolidated financial statements.