Consolidated cash flow
statements


(Notes 1, 2 and 3)
Thousands of pesos

      Year ended on
December 31,
  Note   2018   2017
Operating activities          
Profit before income tax   $ 15,750,530 $ 12,875,677
Adjustment from items not implying cash flows:          
Depreciation and amortization     3,311,275   3,423,103
Provision for impairment of the loan portfolio 8   3,355,378   3,081,018
Inventory reserve     883,854   832,139
Equity method on associates 11.2   (626,460)   (628,030)
Gain on sale of property, furniture and equipment     (1,929)   (370,588)
Net cost for the period of employee benefits 17   279,916   183,151
Interest earned     (6,711,280)   (5,708,985)
Accrued interest expense     2,695,911   2,770,722
      3,186,665   3,582,530
(Increase) decrease in:          
Interest earned from customers     6,659,083   5,672,913
Short - term loan portfolio     (5,008,230)   (5,258,035)
Inventory     (3,070,650)   (921,726)
Value added tax recoverable     429,796   1,296,974
Other accounts receivable     189,750   (908,773)
Prepaid expenses     369,042   133,095
Long - term loan portfolio     (113,680)   (408,910)
Other long-term accounts receivable     (11,445)   (39,922)
           
Increase (decrease) in:          
Suppliers     1,158,506   2,041,505
Provisions     249,274   6,954
Deferred income     49,240   129,180
Creditors     (1,277,558)   (451,761)
Employee benefits paid     140,640   48,949
Taxes paid     (3,704,181)   (4,438,208)
Net cash flows from operating activities     14,996,782   13,360,442
           
Investment activities          
Acquisition of subsidiary - net of cash     -   (17,532,852)
Dividends received from associates     211,611   120,102
Acquisition of property, furniture and equipment 13   (5,499,806)   (5,807,501)
Acquisition of investment property 12   (2,055,924)   (1,558,595)
Sale of property, furniture and equipment     68,076   815,193
Investment in new information technology developments 14   (1,036,732)   (1,051,703)
Net cash flows from investing activities     (8,312,775)   (25,015,356)
Cash to be applied in financing activities     6,684,007   (11,654,914)
           
Financing activities
          
Dividends paid 20.1   (1,288,360)   (1,288,292)
Interest paid     (2,744,636)   (2,645,946)
Debt paid     (5,671,456)   (3,350,000)
Issuance of senior notes     -   10,000,000
Repurchase of shares 20   (79,134)   -
Net cash flows from financing activities     (9,783,586)   2,715,762
Net decrease of cash and temporary investments     (3,099,579)   (8,939,152)
Cash and cash equivalents at the beginning of the year     16,859,531   24,818,261
Effects of exchange rate changes on
cash and cash equivalents		     (224,453)   755,969
Cash and cash equivalents at end of year   $ 13,535,499 $ 16,635,078


The accompanying notes are an integral part of these consolidated financial statements.