December 31, 2023 and 2022
Figures expressed in thousands of pesos
| Note | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Operating activities | |||||
| Profit before income tax | $ | 26,999,297 | $ | 23,194,151 | |
| Adjustments from items not implying cash flows: | |||||
| Depreciation and amortization | 5,385,905 | 5,171,085 | |||
| Provision for impairment of the loan portfolio | 8 | 2,889,335 | 1,791,024 | ||
| Lease concessions | 19 | - | (7,186) | ||
| Other dividend income | 15 | (209,482) | (58,957) | ||
| Inventory reserve | 1,255,149 | 1,264,374 | |||
| Equity in the results of associates | 11.2 | (507,668) | (376,918) | ||
| (Profit) loss on sale of property, furniture and equipment and investment property | (621,911) | 296,121 | |||
| Net cost for the period of employee benefits | 18 | 544,467 | 461,855 | ||
| Trading derivative financial instruments | 653,031 | 535,116 | |||
| Interest earned | (9,829,929) | (7,792,624) | |||
| Interest expense | 4,067,381 | 3,989,142 | |||
| 3,626,278 | 5,273,032 | ||||
| (Increase) decrease in: | |||||
| Interest earned from customers | 9,710,201 | 7,794,101 | |||
| Loan portfolio | (13,430,772) | (9,764,046) | |||
| Inventory | (1,353,063) | (6,284,742) | |||
| Value added tax recoverable | 303,134 | 292,820 | |||
| Other accounts receivable | (685,393) | (180,005) | |||
| Prepaid expenses | (33,998) | 212,163 | |||
| Other assets | 2.8 | (302,227) | - | ||
| Increase (decrease) in: | |||||
| Suppliers | 4,648,011 | 3,619,968 | |||
| Provisions | 767,882 | 986,332 | |||
| Deferred income | 179,126 | 390,927 | |||
| Creditors | 2,071,865 | 1,443,627 | |||
| Employee benefits paid | (290,762) | (344,499) | |||
| Taxes paid | (8,848,980) | (7,956,667) | |||
| Net cash inflow from operating activities | 23,360,599 | 18,677,162 | |||
| Investment activities | |||||
| Capital increase in associates | 11.2 | (736,769) | (1,088,677) | ||
| Invest in financial assets at fair value through other comprehensive income | 15 | - | (5,943,333) | ||
| Dividends received from financial asset at fair value | 15 | 209,482 | 58,957 | ||
| Dividends received from associates | 196,000 | - | |||
| Acquisition of property, furniture and equipment | 13 | (7,662,431) | (5,798,479) | ||
| Acquisition of investment property | 12 | (153,563) | (1,540,699) | ||
| Sale of property, furniture and equipment and investment property | 180,934 | 74,942 | |||
| Investment in intangibles of definitive useful life | 14 | (803,256) | (532,262) | ||
| Net cash outflows from investing activities | (8,769,603) | (14,769,551) | |||
| Cash to be applied in financing activities | 14,590,996 | 3,907,611 | |||
| Financing activities | |||||
| Dividends paid | 21.1 | (3,502,229) | (3,287,730) | ||
| Interest paid | 17 | (2,813,277) | (2,885,150) | ||
| Debt paid | 17 | - | (3,400,000) | ||
| Principal of lease payments | 19 | (1,263,701) | (1,098,207) | ||
| Interest of lease payments | 19 | (1,247,223) | (1,137,980) | ||
| Sale of own shares | 21.2 | 2,738,852 | 930,659 | ||
| Repurchase of shares | 21.2 | (2,761,056) | (938,074) | ||
| Net cash flows used in financing activities | (8,848,634) | (11,816,482) | |||
| Increase (decrease) in cash and cash equivalents | 5,742,362 | (7,908,871) | |||
| Cash and cash equivalents at the beginning of the year | 24,516,254 | 32,494,873 | |||
| Effects of exchange rate changes on cash and cash equivalents | (451,450) | (69,748) | |||
| Cash and cash equivalents at the end of the year | $ | 29,807,166 | $ | 24,516,254 |
The accompanying notes are an integral part of these consolidated financial statements.