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FIRST DEPUTY PRIME
MINISTER
MINISTRY OF FINANCE
COMPTROLLER GENERAL
OF THE STATE
ADMINISTRATION
AUDIT OF ANNUAL ACCOUNTS
ICO - INSTITUTO DE CRÉDITO
OFICIAL
2025 Audit Plan -
Financial Year 2024
AUDInet Code 2025/110
PUBLIC AUDIT DIVISION I
Free translation of the auditor’s report originally issued in Spanish. In the event of a discrepancy, the Spanish-
language version prevails.

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TABLE OF CONTENTS
I.
OPINION
II.
BASIS FOR OPINION
III.
KEY AUDIT MATTERS
IV.
OTHER MATTER PARAGRAPH
V.
OTHER INFORMATION
VI.
MANAGEMENT’S RESPONSIBILITY FOR THE ANNUAL ACCOUNTS
VII.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE ANNUAL ACCOUNTS

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AUDITOR’S REPORT OF ANNUAL ACCOUNTS ISSUED BY THE COMPTROLLER
GENERAL OF THE STATE ADMINISTRATION (IGAE)
To the Chairman of the General Council of the Instituto de Crédito Oficial:
Opinion
The Comptroller General of the State Administration, using the powers conferred upon it by article
168 of Law 47/2003, of 26 November, the General Budget Law, has audited the annual accounts
of Instituto de Crédito Oficial (hereinafter, the Institute or the Entity), which comprise the balance
sheet as at December 31, 2024, the profit and loss account, the statement of changes in equity,
the cash flow statement and the notes thereto for the year then ended.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
equity and financial position of the Institute, and of its results and cash flows for the year then
ended, in accordance with the financial reporting framework applicable to the Entity (identified in
note 1.2 to the financial statements) and, in particular, with the accounting principles and policies
set forth therein.
Basis for opinion
We conducted our audit in accordance with audit regulations that apply to the Public Sector in
Spain. Our responsibilities in accordance with these regulations are further described below in the
Auditor’s responsibilities for the audit of annual accounts section of our report.
We are independent of the entity in accordance with ethical and independence protection
requirements that apply to our audit of the annual accounts for the Public Sector in Spain, as
required by the regulations governing the audit activity of the Public Sector.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the annual accounts of the current period. These matters were addressed in the
context of our audit of the annual accounts as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on those matters.
Estimated impairment losses of the portfolio of loans and advances
The impairment estimate of Financial Assets at Amortised Cost is one of the most significant
estimates in preparing the accompanying annual accounts.
In order to estimate credit risk allowances, the provisions of Circular 4/2017, of 27 November, and
other mandatory rules approved by the Bank of Spain are taken into consideration.

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In general, the Institute estimates objective evidence of impairment when, after initial recognition,
an event or the combined effect of several events cause a negative impact on the future cash flows
from loans and advances to customers. Objective evidence of impairment is determined individually
for those debt instruments that the Institute has identified as significant and collectively for the
others. The Institute’s collective assessment includes groups of debt instruments that have similar
risk characteristics, indicative of the debtors’ ability to pay principal and interest amounts, the type
of instrument, the debtor’s sector of activity, the type of collateral and the ageing of past due
amounts, among others.
The main audit procedures carried out have included the following:
•
Verifying the different internal control policies and procedures established in accordance
with applicable regulatory requirements.
•
Examining the different databases used, reviewing their reliability and the consistency of
data sources used in calculations.
•
For the detailed tests, for a sample of individualised loans, reviewing their proper accounting
records and classification, and, where applicable, the corresponding impairment.
•
Recalculating the provisions for loans classified as Normal risk or Normal risk under Special
Surveillance, valued on the basis of alternative solutions established in the Bank of Spain Circular.
Valuation criteria used and the detail of information relating to the aforementioned items are
included in notes 2 and 10 of the accompanying report.
Risks associated with Information Technology
The very nature of the Institute’s activity and the process of the flow of financial information greatly
depends on information systems.
The overall internal control framework for information systems in relation to the processing and
recording of financial information is considered key to our internal control assessment.
In this context, it is considered necessary to assess the effectiveness of General Controls over
internal control on Information Technology Systems, regarding processes that support the
accounting registration and closing of the Institute in collaboration with our internal information
systems specialists.
Our audit approach has included the following procedures:
-
The evaluation of the most relevant general controls carried out by the Institute in key processes.
The main procedures carried out have consisted of general control tests on the main applications,
reviewing the following:
•
Change management.
•
Logical access
•
IT Systems Operations.
-
Revision of the existing interfaces between the main applications in the accounting reporting
process.
-
Analysis of the manual journal entry generation process, and selective testing of extraction and
filtering of unusual entries in the financial information systems.

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The results of procedures have provided us with sufficient and adequate evidence to consider that
our conclusion on these facts as a key matter is appropriate.
Other matter paragraph
The audit firm Forvis Mazars Auditores, S.L.P. by virtue of the contract entered into with the Ministry
of Finance, at the proposal of the Comptroller General of the State Administration, has carried out
the audit work referred to in the first section. In this work, the Comptroller General of the State
Administration has applied the Technical Standard for relations with auditors in the public sector of
December 30, 2020.
The Comptroller General of the State Administration has drawn up this report on the basis of the
work carried out by the auditing firm Forvis Mazars Auditores, S.L.P.
Likewise, Forvis Mazars Auditores, S.L.P., in accordance with the stipulations of the second
additional provision of Law 22/2015, of 20 July, on Auditing, has issued, on April 9, 2025, another
auditor’s report on the annual accounts of the Institute, applying audit regulations in force in Spain
(ISA-ES). This report, intended to meet certain requirements laid down in sectoral regulations, as
well as for other commercial or financial reasons, has been issued with the prior authorisation of
the Comptroller General of the State Administration, by virtue of the provisions of the collaboration
contract.
The auditor’s report on the Institute’s annual accounts includes the "Report on other legal and
regulatory requirements - Single European Electronic Format", where the auditor expresses an
opinion on the digital files examined and whether they correspond in full with the audited annual
accounts, which are presented and have been marked up, in all material respects, in accordance
with the requirements set out in the ESEF Regulation.
Other information
The other information includes the management report and the report on the fulfilment of
economic-financial obligations, referred to in article 129.3 of the General Budget Law undertaken
by the Institute, as a result of belonging to the Public Sector. Their formulation is the responsibility
of the Institute’s Chairman, and they are not an integral part of the annual accounts.
Our auditor’s opinion on the annual accounts does not cover this other information. Our
responsibility in relation to the other information, in accordance with the requirements of audit
regulations, is to assess and report the consistency of the other information with the annual
accounts, based on the understanding obtained on the entity, while auditing the aforementioned
accounts, and excluding information other than that obtained as evidence during the audit. In
addition, our responsibility is to assess and report whether the content and presentation of this
other information are compliant with applicable regulations.

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If, based on the work that we have performed, we conclude that a material misstatement exists,
we are required to report this fact.
On the basis of the work done, as described in the previous paragraph, we have nothing to report
regarding the other information. The information it contains is in line with the annual accounts for
the 2024 financial year, and its content and presentation comply with applicable standards.
Management’s responsibility for the annual accounts
The Institute’s Chairman is responsible for the preparation of the accompanying annual accounts,
such that they fairly present the Institute’s equity, financial position and results, in accordance with
the financial reporting framework applicable to the Institute in Spain, and for such internal control
as they determine is necessary to enable the preparation of annual accounts free from material
misstatement, whether due to fraud or error.
In preparing the annual accounts, the Chairman is responsible for assessing the Institute’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis, unless the Chairman either intends or has a legal obligation to
liquidate the Institute or cease operations, or has no realistic alternative.
Auditor’s responsibilities for the audit of the annual accounts
Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted
in accordance with audit regulations for the Public Sector in Spain will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence users’
economic decisions taken on the basis of the annual accounts.
As part of an audit in accordance with audit regulations for the Public Sector in Spain, we exercise
our professional judgement and maintain professional scepticism throughout the audit.
We also:
•
Identify and assess the risks of material misstatement of the annual accounts, whether due
to fraud or error, design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of
internal control.
•
Obtain an understanding of the internal control relevant for the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control.

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•
Assess the appropriateness of accounting policies used and the reasonableness of
accounting estimates and the related disclosures made by the management committee.
•
Conclude on the appropriateness of the management committee’s use of the going concern
basis of accounting is appropriate and, based on the audit evidence obtained, whether a material
uncertainty exists related to the events or conditions that may cast significant doubt on the entity’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report on the related disclosures in the annual accounts
or, if such disclosures are not adequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the entity to cease to continue as a going concern.
•
Assess the overall presentation, structure and content of the annual accounts, including
disclosures, and whether the annual accounts represent the underlying transactions and events in
a manner that it achieves fair presentation.
We communicate with the management committee regarding, among other matters, the planned
scope and timing of the audit and the significant audit findings, as well as any significant deficiencies
in internal control that we identify during our audit.
From the matters communicated with the Institute’s Chairman, we determine those matters that
were of the most significance in the audit of the annual accounts of the current period and that are,
therefore, the key audit matters.
We describe these matters in our auditor’s report unless laws or regulations preclude public
disclosure about the matter.
This auditor’s report was signed electronically through the CICEP.red application of the Comptroller
General of the State Administration by the Audit Director and by the Head of the Public Audits
Division I of the National Audit Office in Madrid on April 9, 2025.

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INSTITUTO DE CRÉDITO OFICIAL
Financial Statements at 31 December 2024 and
Management Report for the 2024 financial year
Free translation of annual accounts originally issued in Spanish.
In the event of a discrepancy, the Spanish language version prevails.
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INSTITUTO DE CRÉDITO OFICIAL
BALANCE SHEETS AT 31 DECEMBER 2024 AND 2023
(Expressed in thousands of euros)
1
ASSETS
2023
Cash, balances with central banks and other demand deposits (Note 6)
2 158 980
Financial assets held for trading (Note 7)
24 197
Derivatives
24 197
Memorandum item: Loaned or pledged as collateral
-
Non-trading financial assets mandatorily measured at fair value, through in profit or loss
(Note 8)
-
Financial assets at fair value, through other comprehensive income (Note 9)
1 624 558
Equity instruments
1 533 557
Debt securities
91 001
Loans and advances
-
Memorandum item: Loaned or pledged as collateral
-
Financial assets at amortised cost (Note 10)
27 204 578
Debt securities
6 302 584
Loans and advances
20 901 994
Credit institutions
8 300 598
Clientele
12 601 396
Memorandum item: Loaned or pledged as collateral
Derivatives – hedge accounting (Note 11)
302 772
Investments in subsidiaries, joint ventures and associates (Note 12)
57 466
Subsidiaries
1 940
Joint Ventures
-
Associates
55 526
Tangible assets (Note 13)
82 289
Tangible assets
For own use
82 289
Memorandum item: Acquired under lease
-
Intangible assets (Note 14)
8 318
Other intangible assets
8 318
Tax assets (Note 15)
171 206
Current tax assets
22 236
Deferred tax assets
148 970
Other assets (Note 16)
22 459
Other assets
22 459
Non-current assets and disposal groups classified as held for sale (Note 17)
-
TOTAL ASSETS
31 656 823
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INSTITUTO DE CRÉDITO OFICIAL
BALANCE SHEETS AT 31 DECEMBER 2024 AND 2023
(Expressed in thousands of euros)
2
LIABILITIES
2024
2023
Financial liabilities held for trading (Note 7)
14 723
23 610
Derivatives
14 723
23 610
Financial liabilities designated at fair value, through profit or loss
-
-
Financial liabilities at amortised cost (Note 18)
30 079 809
23 548 296
Deposits
7 915 987
6 513 401
Central Banks
-
327 075
Credit institutions
7 285 837
5 722 623
Clientele
630 150
463 703
Debt securities issued
21 865 199
16 920 632
Other financial liabilities
298 623
114 263
Memorandum item: Subordinated liabilities
-
-
Derivatives – hedge accounting (Note 11)
1 201 481
583 796
Provisions (Note 19)
862 891
1 581 675
Pensions and other defined benefit retirement obligations
910
836
Procedural issues and pending tax litigation
-
-
Commitments and guarantees given
60 204
50 579
Remaining provisions
801 777
1 530 260
Tax liabilities (Note 15)
183 311
174 420
Current tax liabilities
3 971
1 439
Deferred tax liabilities
179 340
172 981
Other liabilities (Note 16)
53 414
55 958
TOTAL LIABILITIES
32 395 629
25 967 755
NET EQUITY
Capital and reserves (Note 20)
5 738 211
5 498 415
Paid-in capital
4 314 901
4 314 901
Retained earnings
-
-
Revaluation reserves
16 305
17 216
Other reserves
1 167 209
926 083
Balance for the year
239 796
240 215
Less: Interim dividends
-
-
Other accumulated comprehensive income (Note 21)
(353 615)
190 653
Items not to be reclassified to profit or loss
371 765
365 729
FV changes in equity instruments at fair value through other comprehensive income
371 765
365 729
Items that can be reclassified to profit or loss
(725 380)
(175 076)
Hedging derivatives. Cash flow hedge reserve
(734 902)
(175 795)
FV changes in debt instruments at fair value through other comprehensive income
9 522
719
TOTAL NET EQUITY
5 384 596
5 689 068
TOTAL EQUITY AND LIABILITIES
37 780 225
31 656 823
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INSTITUTO DE CRÉDITO OFICIAL
BALANCE SHEETS AT 31 DECEMBER 2024 AND 2023
(Expressed in thousands of euros)
3
MEMORANDUM ITEM
2024
2023
Financial guarantees granted (Note 22)
749 994
553 986
Other commitments granted (Note 22)
4 861 883
4 286 994
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INSTITUTO DE CRÉDITO OFICIAL
PROFIT AND LOSS ACCOUNTS FOR YEARS ENDED 31 DECEMBER 2024 AND 2023
(Expressed in thousands of euros)
4
2024
2023
Interest income (Note 24)
1 318 085
1 002 281
(Interest expense) (Note 25)
(1 063 516)
(712 032)
NET INTEREST INCOME
254 569
290 249
Dividend income (Note 26)
20 147
16 964
Commissions income (Note 27)
40 261
41 352
Commissions expense (Note 27)
(7 324)
(9 467)
Gains or (losses) from derecognition of financial assets and liabilities not measured at fair value, through profit or
loss, net (Note 28)
(1 535)
(21 446)
Financial assets at fair value, through other comprehensive income
-
(20 946)
Financial assets at amortised cost
(1 535)
(500)
Other financial assets and liabilities
-
-
Gains or (losses) on financial assets and liabilities held for trading, net (Note 29)
(818)
940
Gains or (losses) from assets and liabilities measured at fair value, through profit or loss, net (Note 30)
-
-
Gains or (losses) resulting from hedge accounting, net (Note 31)
45 580
45 568
Net exchange differences (Note 2.4)
6 300
(3 744)
Other operating income (Note 32)
1 047
1 081
Other operating expenses (Note 32)
-
-
GROSS MARGIN
358 227
361 497
Administration costs
(49 105)
(44 636)
Staff costs (Note 33)
(28 159)
(25 448)
Other administrative expenses (Note 34)
(20 946)
(19 188)
Amortisation
(5 036)
(4 645)
Tangible assets (Note 13)
(2 185)
(2 268)
Intangible assets (Note 14)
(2 851)
(2 377)
Provisions (or reversal) of provisions (Note 19)
(9 646)
9 138
Impairment (or reverse impairment) of financial assets not measured at fair value through profit and loss or net
gains or losses upon adjustment
36 391
12 777
Financial assets at fair value, through other comprehensive income (Note 9)
(20)
1 270
Financial assets at amortised cost (Notes 10)
36 411
11 507
Impairment (or reverse impairment) on non-financial assets, net
(81)
(4)
Goodwill and other intangible assets (Note 14)
-
-
Other assets (Note 17)
(81)
(4)
Profit (loss) on derecognition of non-financial assets, net
-
-
Gains (losses) on non-current assets and disposal groups classified as held for sale not qualifying as discontinued
operations (Note 17)
73
2 764
PRE-TAX PROFIT (LOSS) FROM CONTINUING OPERATIONS
330 823
336 891
Income tax expense (income) from continuing operations (Note 23)
(91 027)
(96 676)
AFTER-TAX PROFIT (LOSS) FROM CONTINUING OPERATIONS
239 796
240 215
AFTER-TAX PROFIT (LOSS) FROM DISCONTINUED OPERATIONS
-
BALANCE FOR THE YEAR
239 796
240 215
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INSTITUTO DE CRÉDITO OFICIAL
STATEMENTS OF CHANGES IN NET EQUITY
I- STATEMENTS OF RECOGNISED INCOME AND EXPENSE FOR YEARS ENDED 31
DECEMBER 2024 AND 2023
(Expressed in thousands of euros)
5
2024
2023
Balance for the year
239 796
240 215
Other comprehensive income
(544 268)
62 026
Items not to be reclassified to profit or loss
6 036
16 094
Changes in fair value of equity instruments measured at fair value, through other
comprehensive income (Note 21)
8 623
22 991
Hedge accounting gains or losses
Income tax on items that will not be reclassified
(2 587)
(6 897)
Items that can be reclassified to profit or loss
(550 304)
45 932
Cash flow hedges, effective portion (Note 21)
(798 724)
24 143
Debt instruments at fair value through other comprehensive income (Note 21)
12 576
41 474
Income tax on items that can be reclassified to profit or loss
235 844
(19 685)
Total comprehensive income for the year
(304 472)
302 241
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INSTITUTO DE CRÉDITO OFICIAL
STATEMENTS OF CHANGES IN NET EQUITY
II. STATEMENTS OF CHANGES IN TOTAL NET EQUITY FOR YEARS ENDED 31 DECEMBER 2024 AND 2023
(Expressed in thousands of euros)
6
At 31/12/2024
OWN FUNDS
Capital /
Endowment
fund
Share
premium
Reserves
Other equity
instruments
Less:
Proprietary
securities
Balance
for the
year
Less: dividends
and
remuneration
TOTAL
OWN
FUNDS
OTHER
ACCUMULATED
COMPREHENSIVE
INCOME
TOTAL NET
EQUITY
Closing balance at 31 December 2023
4 314 901
-
943 299
-
-
240 215
-
5 498 415
190 653
5 689 068
Total recognised income and expenses
-
-
-
-
-
239 796
-
239 796
(544 268)
(304 472)
Other changes in net equity:
Capital increases / endowment fund
Transfers between equity items
-
-
240 215
-
-
(240 215)
-
-
-
-
Other increases (decreases) in net equity
-
-
-
-
-
-
-
-
-
-
Total other changes in net equity
-
-
240 215
-
-
(240 215)
-
-
-
-
Closing balance at 31 December 2024
4 314 901
-
1 183 514
-
-
239 796
-
5 738 211
(353 615)
5 384 596
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INSTITUTO DE CRÉDITO OFICIAL
STATEMENTS OF CHANGES IN NET EQUITY
II. STATEMENTS OF CHANGES IN TOTAL NET EQUITY FOR YEARS ENDED 31 DECEMBER 2024 AND 2023
(Expressed in thousands of euros)
7
At 31/12/2023
OWN FUNDS
Capital /
Endowment
fund
Share
premium
Reserves
Other equity
instruments
Less:
Proprietary
securities
Balance
for the
year
Less: dividends
and
remuneration
TOTAL
OWN
FUNDS
OTHER
ACCUMULATED
COMPREHENSIVE
INCOME
TOTAL NET
EQUITY
Closing balance at 31 December 2022
4 314 687
-
943 298
-
-
127 951
-
5 385 936
128 627
5 514 563
Total recognised income and expenses
-
-
-
-
-
240 215
-
240 215
62 026
302 241
Other changes in net equity:
Capital increases / endowment fund
214
-
-
-
-
-
-
214
-
214
Transfers between equity items
-
-
1
-
-
-
-
1
-
1
Other increases (decreases) net in equity
-
-
-
-
-
(127 951)
-
(127 951)
-
(127 951)
Total other changes in net equity
214
1
-
-
(127 951)
-
(127 736)
-
(127 736)
Closing balance at 31 December 2023
4 314 901
-
943 299
-
-
240 215
-
5 498 415
190 653
5 689 068
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INSTITUTO DE CRÉDITO OFICIAL
CASH FLOW STATEMENTS FOR YEARS ENDED 31 DECEMBER 2024 AND 2023
(Expressed in thousands of euros)
8
2024
2023
A. CASH FLOWS FROM OPERATING ACTIVITIES
534 122
(477 987)
1. Balance for the year
239 796
240 215
2. Adjustments to obtain cash flows from operating activities
(64 937)
62 002
Amortisation
5 036
4 645
Other adjustments
(69 973)
57 357
3. Net increase/decrease in operating assets
(5 545 437)
(2 367 120)
Financial assets held for trading
7 930
6 440
Other financial assets at fair value, through profit or loss
-
-
Financial assets at fair value, through other comprehensive income
(1 697 905)
835 633
Financial assets at amortised cost
(3 564 904)
(3 337 907)
Other operating assets
(290 558)
128 714
4. Net increase/decrease in operating liabilities
5 964 756
1 613 670
Financial liabilities held for trading
(8 887)
(6 104)
Other financial liabilities at fair value, through profit or loss
-
-
Financial liabilities at amortised cost
6 531 512
1 866 468
Other operating liabilities
(557 869)
(246 694)
5. Income tax receipts / payments
(60 056)
(26 754)
B. CASH FLOWS FROM INVESTING ACTIVITIES
(8 266)
(683)
6. Payments
(8 272)
(1 481)
Tangible assets (Note 13)
(1 237)
-
Intangible assets (Note 14)
(7 035)
(1 481)
Investments in subsidiaries and associates (Note 12)
-
Non-current assets and associated liabilities held for sale (Note 17)
-
Debt securities at amortised cost
-
Other payables related to investment activities
-
7. Receivables
6
798
Tangible assets (Note 13)
6
798
Intangible assets (Note 14)
-
-
Holdings (Note 12)
-
-
Non-current assets and associated liabilities held for sale (Note 17)
-
-
Debt securities at amortised cost
-
-
Other receivables related to investing activities
-
-
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INSTITUTO DE CRÉDITO OFICIAL
CASH FLOW STATEMENTS FOR YEARS ENDED 31 DECEMBER 2024 AND 2023
(Expressed in thousands of euros)
9
2024
2023
C. CASH FLOWS FROM FINANCING ACTIVITIES
-
215
8. Payments
-
-
Dividends
-
-
Subordinated liabilities
-
-
Amortisation of equity instruments
-
-
Acquisition of equity instruments
-
-
Other payables related to financing activities
9. Receivables
-
215
Subordinated liabilities
-
-
Issuance of equity instruments
-
-
Disposal of equity instruments
-
-
Other receivables related to financing activities (Note 20)
-
215
D. EFFECT OF EXCHANGE RATE CHANGES
-
-
E. NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
525 856
(478 455)
F. CASH AND CASH EQUIVALENTS AT THE START OF PERIOD
2 158 980
2 637 435
G. CASH AND CASH EQUIVALENTS AT END OF PERIOD
2 684 836
2 158 980
MEMORANDUM ITEM
COMPONENTS OF CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
Cash (Note 6)
6
6
Cash equivalents at central banks (Note 6)
2 664 864
2 123 983
Other financial assets (Note 6)
19 966
34 991
Less: bank overdrafts repayable on demand
-
-
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INSTITUTO DE CRÉDITO OFICIAL
Notes to the Financial Statements for the financial year
ended 31 December 2024
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1. INTRODUCTION, BASIS OF PRESENTATION AND OTHER INFORMATION
1.1 Introduction
Instituto de Crédito Oficial, E.P.E. (the Institute or ICO), created by Law 13/1971 on the Official
Credit System and Organisation, was regulated, until the publication of Royal Decree-Law
12/1995 on urgent budgetary, tax and financial measures, by the provisions of Article 127 of
Law 33/1987 on the General State Budget for 1988 and certain non-repealed provisions of the
aforementioned Law 13/1971.
The registered offices of the Institute are located at Paseo del Prado, 4, in Madrid, where it
carries out all its activities, having no network of offices.
The Institute is a public business entity as provided for in Article 103 of Law 40/2015, on the
Public Sector Legal System, attached to the Ministry of Economy, Trade and Enterprise,
through the Secretary of State for Economy and Business Support; in legal terms, it is a credit
institution and is considered a State Financial Agency, with its own legal personality, its own
assets and treasury, as well as management autonomy for the fulfilment of its purposes.
The Secretary of State for the Economy and Business Support is responsible for the strategic
direction of the Institute, as well as for evaluating and monitoring the results of its activities.
The Institute is governed by the provisions of the aforementioned Law 40/2015, on the Public
Sector Legal System; by the Sixth Additional Provision of Royal Decree Law 12/1995, on
urgent budgetary, tax and financial measures; by the applicable provisions of General
Budgetary Law 47/2003; by its Articles of Association, approved by Royal Decree 706/1999,
adapting Instituto de Crédito Oficial to Law 6/1997 of 14 April, and approving its Articles of
Association; and, where not provided for in the above regulations, by the special rules
governing credit institutions and the general rules of private civil, commercial and labour law.
With regard to Corporate Governance, in addition to the aforementioned Law 40/2015, the
provisions of Royal Decree 1149/2015 of 18 December apply to the Institute. Since its entry
into force, its General Council is made up of the Chair and ten Members (nine up to that point),
who are appointed through the application of objective selection criteria, such as prestige and
qualifications, with incompatibilities being regulated and for a period of three years, extendable
for a further three years (once only). Independent Directors have a double vote when dealing
with financial business matters and will therefore form a majority on the ICO General Council
. The appointment and dismissal of the members is the responsibility of the Council of
Ministers, at the proposal of the Minister of Economy, Trade and Enterprise.
The requirements for appointment as an independent director include: recognised commercial
and professional integrity, appropriate knowledge and experience, no potential ongoing
conflicts of interest, and no activities for their own account or for the account of others that are
in effective competition with ICO. It is also required not to be linked to credit institutions,
financial credit institutions, investment services companies, collective investment
undertakings and venture capital companies, nor to their subsidiaries, groups to which these
belong or associations.
The members of the General Council shall perform their duties in the interests of ICO at all
times, and shall keep secret any confidential information, data, reports or background
information to which they have had access in the performance of their duties, even after they
have ceased to hold office. Their term may be terminated by resignation accepted by the
Minister of Economy, Trade and Enterprise, by expiry of their term of office in the case of
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independent members, or by resignation in the case of members from the public sector. The
supervening lack of suitability in the case of independent directors shall also be grounds for
removal, as well as for serious breach of the confidentiality duties or incurring in a conflict of
interest.
The purposes of the Institute are the support and promotion of economic activities that
contribute to the growth and improvement of the distribution of national wealth and, in
particular, those activities that, due to their social, cultural, innovative or ecological importance,
deserve to be encouraged.
In order to achieve these aims, the Institute shall comply with its principles to operate in full
compliance with the principles of financial equilibrium and the adequacy of means and ends.
In addition, the Institute’s functions are to:
a) Contribute to alleviating the economic effects produced by situations of serious
economic crisis, natural catastrophes or other similar events, in accordance with the
instructions received for this purpose from the Council of Ministers or the Government
Delegate Commission for Economic Affairs.
b) Act as an instrument for the implementation of certain economic policy measures,
following the fundamental lines established by the Council of Ministers or the
Government Delegate Commission for Economic Affairs, or the Minister of Economy,
Trade and Enterprise, subject to the rules and decisions adopted in this respect by its
General Council.
Within the framework of these purposes and functions are the following types of operations:
1. Direct activity and mediation, modalities that have a wide range of financing and
guarantee products whereby ICO contributes to promoting viable business projects,
favouring the companies’ growth, their long-term investments and their international
activity, with the aim of fostering sustainable growth, job creation and wealth
distribution.
2. Reciprocal Interest Adjustment Contract (hereinafter CARI, for its Spanish initials). This
export backing system ensures a return to the member financial institution, domestic
or foreign, which adheres to it. The Institute acts in these operations as a mere
intermediary, passing on its management costs to the State, in accordance with the
provisions of the General State Budget Law for each financial year.
The net result of interest adjustments with member banks is periodically offset or
credited to the Institute by the State, depending on whether the result is a debit or a
credit, respectively.
3. Development Promotion Fund (hereinafter FONPRODE). It was created in 2010, under
Law 36/2010, its activity consists of providing credit for development projects and
programmes, on a state-to-state basis, in less developed countries. The Institute acts
as an agent of the Government and the implementation, administration and accounting
of these operations is conducted separately from its other operations, in separate
accounts from the Institute, with ICO receiving, in accordance with the General State
Budget Law for each financial year, the costs for managing these operations. In
December 2010, this Fund absorbed the Microcredit Fund, also managed by the
Institute since 1998 until its integration into FONPRODE.
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4. Fund for the Internationalisation of Enterprises (hereinafter, FIEM). It was created in
2010, in accordance with Law 11/2010, its activity consists of repayable project
financing, on concessional or market terms, linked to the acquisition of Spanish goods
and services or to the execution of Spanish investment projects or projects of national
interest. The Institute also acts as an agent of the Government and the instrumentation,
administration and accounting of these operations is conducted separately from its
other operations, in separate accounts from the Institute, with ICO receiving, in
accordance with the General State Budget Law for each financial year, the costs for
managing these operations.
5. Water and Sanitation Cooperation Fund, created through the Sixty-first Additional
Provision of Law 51/2007 of 26 December, on the 2008 General State Budget, to
finance projects in the areas of water and sanitation, under a co-financing system with
the national authorities of Latin American countries which are priorities for Spanish
cooperation.
6. Local Entity Financing Fund, created through Royal Decree Law 17/2014 of 26
December, on measures for the financial sustainability of Autonomous Communities,
Local Entities and other economic measures, with the aim of guaranteeing the financial
sustainability of the member municipalities, by meeting their financial needs. The
assets of this Fund are funded by the proceeds from the settlement of the Supplier
Payment Financing Mechanism (created by Royal Decrees 4/2012 and 7/2012), in the
portion corresponding to Local Entities, to which it succeeds in all its rights and
obligations, taking effect on 1 January 2015. ICO acts as the operations manager,
without these operations forming part of its accounts. For this activity, the Institute
receives the corresponding management fee.
7. Autonomous Community Financing Fund, created through Royal Decree Law 17/2014
of 26 December, on measures for the financial sustainability of Autonomous
Communities and Local Entities, and other economic measures, with the aim of
guaranteeing the financial sustainability of the member Autonomous Communities.
The assets of this Fund are funded by the proceeds from the settlement of the
Autonomous Community Liquidity Fund (created by Royal Decree 21/2012), to which
it succeeds in all its rights and obligations, taking effect on 1 January 2015. Also
included in its assets is the portion of the Supplier Payment Financing Mechanism that
corresponds to the Autonomous Communities. ICO acts as the operations manager,
without these operations forming part of its accounts. For this activity, the Institute
receives the corresponding management fee.
8. ICO COVID-19 guarantee facilities, established and regulated by RD Law 8/2020 of
17 March 2020, RD Law 25/2020 of 3 July 2020, RD Law 11/2020 of 31 March, RD
Law 34/2020 of 17 November, and RD Law 5/2021 of 12 March. These regulations,
implemented through the corresponding Council of Ministers' Agreements, approved
the establishment of several State guarantee facilities, subject to EU State aid
regulations, amounting to more than EUR 140 billion, with the aim of facilitating the
maintenance of employment and alleviating the economic effects of the COVID-19
health crisis. Guarantees were issued for the financing granted by financial institutions
to facilitate access to credit and liquidity for companies and the self-employed (liquidity
guarantee facility), as well as to meet the financial needs arising from new investments
(investment guarantee facility). In the same way, specific tranches were made
available in which guarantees are established for promissory note issues by
companies in the Alternative Fixed Income Market (MARF for its Spanish initials).
These guarantees have a maximum term of 10 years. Finally, a guarantee facility
intended for tenants was also envisaged, in the form of liquidity loans guaranteed and
subsidised by the State, in order to help households in renting their primary residence.
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The Council of Ministers Agreement (CMA) of 21 June 2022 enabled the possibility of
extending the maturity of the guarantees managed on behalf of the State in liquidity
and investment facilities for the entire life of the operations. In this activity, ICO acts in
the name and on behalf of the State, performing management and administration
functions for which the Institute earns the corresponding fees, which are recorded as
income in the profit and loss account.
9. UKRAINE Guarantee facilit. This facility is included in the Response Plan to Russia's
war in Ukraine and is endowed with up to EUR 10 billion. The facility is subject to EU
state aid rules and is regulated by RD Law 6/22 of 19 March and, regarding the
tranches managed by ICO, by the CMA of 10 May 2022 (subsequently amended by
the CMA of 11 October 2022), and by the CMA of 22 November 2022, the CMA of 27
December 2022 and the CMA of 5 December 2023, subsequently amended by the
CMA of 27 December 2023. In this activity, ICO also acts in the name and on behalf of
the State, performing management and administration functions for which the Institute
earns the corresponding fees, which are recorded as income in the profit and loss
account.
10. FIRST HOME guarantee facility for the purchase of the first home for young people
under 35 years of age and families with dependent minors. By Council of Ministers
Agreement of 9 May 2023, the Ministry of Housing and Urban Agenda (MIVAU) and
ICO were urged to create a guarantee facility for the partial coverage on behalf of the
State of the financing for the purchase of the first home intended for primary and
permanent residence by young people and families with dependent minors. Royal
Decree-Law 5/2023 of 28 June approved the implementation of the guarantee facility
for the partial coverage on behalf of the State of the financing for the purchase of the
first home intended for primary and permanent residence by young people and families
with dependent minors. The subsequent Council of Ministers Agreement of 13
February 2024 established the terms and conditions of the guaranteed operations.
Finally, by the Council of Ministers Agreement of 9 April 2024, the MIVAU, through the
General Secretariat of the Urban Agenda, Housing and Architecture, was authorised
to sign an agreement with ICO for the management of the aforementioned guarantee
facility. The agreement was signed by the parties on 23 April 2024 and published in
the State Bulletin (BOE) on 7 May 2024. In this activity, ICO also acts in the name and
on behalf of the State, performing management and administration functions for which
the Institute earns the corresponding fees, which are recorded as income in the profit
and loss account.
11. RESIDENTIAL BUILDING REHABILITATION Guarantee Facility. Law 10/2022, of 14
June, on urgent measures to drive building renovation in the context of the PRTR
(Recovery, Transformation and Resilience Plan), regulates a series of measures for
renovating and improving the existing housing stock, including the approval of a
guarantee facility for partial coverage by the State of the financing of refurbishment
works that contribute to improved energy efficiency. For its part, the Council of
Ministers Agreement of 11 July 2022 establishes the applicable conditions, criteria and
requirements of the guarantee facility for the partial coverage, on behalf of the State,
of the financing of refurbishment works that contribute to the improved energy
efficiency. On 14 November 2022, MITMA (now MIVAU) signed an agreement with
ICO, published in the BOE on 21 February 2023, so that ICO, acting in the name and
on behalf of the aforementioned body, would make available to financial institutions a
financing and guarantee facility in accordance with the conditions set out in the
aforementioned agreement of 11 July 2022. During 2024, financial institutions have
started marketing the financing product and, consequently, the granting of guarantees
through ICO. In this activity, ICO also acts in the name and on behalf of the State,
performing management and administration functions for which the Institute earns the
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corresponding fees, which are recorded as income in the profit -and loss account.
12. DANA Guarantee Facility. As a response to the serious situation caused by the
Valencia flash flooding (DANA) of October 2024, the Council of Ministers, at its meeting
of 5 November 2024, approved Royal Decree-Law 6/2024 adopting urgent measures
to respond to the damage caused by the flooding in different municipalities between
28 October and 4 November 2024. Subsequently, at the meeting of the Council of
Ministers on 11 November 2024, Royal Decree-Law 7/2024 was approved, adopting
urgent measures to promote the Immediate Response, Reconstruction and
Relaunching Plan in response to the damage caused by the flash flooding, amending
some aspects previously regulated in RDL 6/2024. At its meeting on 28 November
2024, the Council of Ministers approved, by means of Royal Decree-Law 8/2024, a set
of new measures aimed at reactivating the economy of the areas affected by the flood
waters. This package of measures aims to mitigate the material damage suffered,
promote economic recovery and facilitate the reactivation of business activity in the
affected areas. On 11 November 2024 the Council of Ministers approved the terms
and conditions of a first tranche of the ICO guarantee facility, for an amount of up to
EUR 1 billion, aimed at backing up to 80% of the main lending operations granted by
financial institutions to households, companies and the self-employed. Subsequently,
the Council of Ministers, at its meeting on 28 November 2024, adopted an agreement
allowing a second tranche of up to EUR 240 million to be made available with interest
subsidies from the State. In this activity, ICO also acts in the name and on behalf of
the State, performing management and administration functions for which the Institute
earns the corresponding fees, which are recorded as income in the profit and loss
account.
13. European Union Recovery, Transformation and Resilience Plan (RTRP). The Council
of Ministers of 27 February 2024 approved an agreement establishing the general
conditions for the implementation of five facilities under the loans of the addendum to
the Recovery Plan, amounting to EUR 40 billion, and instructing Instituto de Crédito
Oficial to manage them.
By subsequent Agreement of the Council of Ministers of 28 November 2024, the
Agreement of 27 February 2024 was amended and the Sociedad Española para la
Transformación Tecnológica, EPE (SETT [Spanish Society for the Technological
Transformation]) was entrusted with the deployment of the Next Tech Fund, shared
with the ICO and AXIS, and the Spain Audiovisual Hub Fund was removed from the
list of facilities managed by the ICO group.
The four facilities to be managed by the ICO will be used to finance investment projects
that favour the dual green and digital transition of companies, strengthening their
competitiveness. Specific facilities will also be put in place to boost the audiovisual
sector and disruptive technologies, as well as to increase the stock of public social
rental housing.
The initiatives in which the Institute will eventually participate as an implementing entity
are the following:
▪ ICO-Verde Facility [Green]. The decision-making body is the Ministry of Economy,
Commerce and Business, through the State Secretariat for the Economy and
Business Affairs. EUR 22 billion will be earmarked to facilitate loans to households
and private and public companies, which may be used, among other purposes, to
develop sustainable transport projects, energy efficiency, renewable energy, the
industry decarbonisation, water management, circular economy and adaptation to
climate change.
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▪ ICO-Empresas y Emprendedores Facility [Business and Entrepreneurs]. The
decision-making body is the Ministry of Economy, Commerce and Business,
through the State Secretariat for the Economy and Business Affairs. Endowed with
EUR 8.15 billion to finance the growth and resilience of companies, especially
SMEs. As part of this facility, the tourism industry will have a EUR 1 billion tranche
for projects aimed at developing new products or services, new organisational or
innovation processes that improve efficiency, as well as investments aimed at
increasing the category of the establishment and improving the sustainability of
the property.
▪ ICO-Vivienda Facility [Housing]. The decision-making body is the Ministry of
Housing and Urban Agenda (MIVAU) through the Secretary of State for Housing
and Urban Agenda. This line will be endowed with EUR 4 billion earmarked for the
financing projects aimed at increasing the stock of social rentals or affordable
housing, as well as to improve the existing stock of social housing.
▪ Next-Tech Fund. The decision-making body is the Ministry for the Digital
Transformation and the Civil Service. Fund endowed with EUR 4 billion aimed at
continuing to facilitate the growth of Spanish start-ups in disruptive technologies,
promoting innovation and digitisation. In accordance with the contents of the
Council of Ministers Agreement of 28 November 2024, this facility will be
implemented jointly by SETT, ICO and AXIS.
The provisions of the Council of Ministers Agreement of 27 February 2024 will be
implemented by means of agreements with the decision-making entities, regulating the
conditions and procedures to be applied in the granting of funding to final recipients
and financial intermediaries and guaranteeing compliance with the milestones and
objectives associated with each investment.
▪ On 24 June 2024, the Ministry of Economy, Trade and Enterprise and ICO signed
the agreement that regulates the conditions of the ICO-Green and ICO-
Businesses and Entrepreneurs facilities, activating the deployment of EUR 30.15
billion of the Recovery Plan loans with which these programmes are endowed.
▪ On 29 July 2024, the agreement between ICO and the MIVAU was signed for the
implementation of the ICO Vivienda facility, which launches EUR 4 billion in loans
to public and private developers for projects aimed at increasing the stock of social
rental or energy-efficient affordable housing through new construction or
refurbishment, and which also includes financing for land or building purchases.
On 30 December 2024, ICO and MIVAU signed an addendum to the agreement
signed on 29 July in order to clarify the content of certain clauses and to include
some aspects not regulated in the initial version of the agreement.
With the exception of the direct and mediation activity and the activity related to the RTRP,
which is included in the Institute's accounts, the rest of its functions are public fund
management operations that ICO performs as the State Finance Agency, which are therefore
not included in the Institute's accounts, in accordance with the regulations applicable to each
(except for the fees that the Institute receives for these functions, which are included in the
accompanying profit and loss account).
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1.2 Basis of presentation of the financial statements
The financial statements of Instituto de Crédito Oficial for the year ended 31 December 2024
are presented in accordance with the provisions of Bank of Spain Circular 4/2017 of 27
November to credit institutions on public and confidential financial reporting standards and
financial statement formats ("Circular 4/2017") and its subsequent amendments, which
constitute the development of the International Financial Reporting Standards approved by
the European Union ("EU-IFRS") and their adaptation by the Spanish credit institution sector,
in accordance with Regulation (EC) no. 1606/2002 of the European Parliament and of the
Council of 19 July 2002 on the application of International Accounting Standards. In addition,
in the preparation of these financial statements, the other general Spanish mercantile and
accounting regulations and the other applicable Bank of Spain Circulars and regulations have
been applied and, where applicable, the relevant information required by these regulations
has been included in these notes to the financial statements.
The Institute’s financial statements the year ended 31 December 2024 have been prepared
by taking into account all applicable accounting policies and standards and the mandatory
valuation policies so as to present fairly, in all material respects, the net assets and financial
position of the Institute at 31 December 2024, and the results of its operations and its cash
flows for the year then ended, in accordance with the applicable financial reporting framework
referred to above and, in particular, the accounting policies and standards contained therein.
The information contained in these financial statements for the financial year 2023 is
presented solely and exclusively for comparative purposes with the information relating to the
financial year 2024 and, therefore, does not constitute the Institute's financial statements for
the financial year 2023.
Note 2 summarises the significant accounting policies and measurement bases applied in
preparing the Institute's financial statements for the year ended 31 December 2024.
Main regulatory changes in the period from 1 January to 31 December 2024
Bank of Spain Circular 1/2024 of 26 January
This rule sets out the information to be sent to the Bank of Spain on the capital structure and
equity shares of credit institutions. The rule has had no significant impact on ICO.
There are no accounting principles and rules or mandatory measurement bases which,
although their effect is significant, have not been applied in the preparation of these financial
statements. A summary of the most significant accounting principles and rules and
measurement bases applied in these financial statements is included in Note 2. The
information contained in these financial statements is the responsibility of the Chairman of the
Entity.
The financial statements for the 2024 financial year have been prepared by the Chairman of
the Entity on 27 March 2025 and are pending approval by the General Council of the Institute,
which is expected to approve them without material changes. Unless otherwise stated, these
financial statements are presented in thousands of euros.
1.3 Responsibility for the information and estimates made
The information contained in ICO’s financial statements for the year ended 31 December 2024
and the accompanying notes to the financial statements is the responsibility of the Chairman
of the Institute. In preparing these financial statements, estimates made by ICO have
occasionally been used to quantify certain assets, liabilities, income, expenses and
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commitments which have been reported herein. Basically, these estimates refer to:
- Impairment losses on certain assets (Note 2.7).
- The assumptions used in the actuarial calculation of post-employment benefit liabilities
and commitments and other long-term commitments to employees (Note 2.10.2).
- The useful life of tangible and intangible assets (Notes 2.12 and 2.13).
- Losses on future obligations arising from contingent commitments granted (Note 2.14).
- The fair value of certain non-traded assets (Note 2.2.3).
- Recoverability of tax assets (Note 2.11).
Although these estimates were made on the basis of the best information available at 31
December 2024 on the events analysed, it is possible that future events may make it
necessary to significantly adjust these estimates (upwards or downwards) in future periods;
this would be done prospectively by recognising the effects of the change in estimate in the
corresponding profit and loss account for the affected periods.
1.4 Transfer of assets and liabilities of the defunct Argentaria
The defunct entities Argentaria, Caja Postal and Banco Hipotecario, S.A., were the result of
the merger of Corporación Bancaria de España, S.A., Banco Exterior de España, S.A. (BEX),
Caja Postal, S.A. and Banco Hipotecario de España, S.A. (BHE), as recorded in the public
deed of merger dated 30 September 1998. Banco de Crédito Agrícola, S.A. (BCA) had been
previously absorbed by Caja Postal, S.A. and Banco de Crédito Local de España, S.A. (BCL),
also belonging to the former entity, retains its own legal personality.
Pursuant to the terms of the Council of Ministers Agreement of 15 January 1993, at 31
December 1992 the Institute acquired the assets and liabilities of BCL, BHE, BCA and BEX
arising from economic policy operations guaranteed by the State or the Institute itself, in
particular loans and guarantees to companies undergoing restructuring (under the legislation
on restructuring and reindustrialisation), exceptional loans to flood victims, loans granted by
these institutions prior to their incorporation as public limited companies, and other assets,
rights and shares in companies.
Furthermore, on 25 March 1993, a contract was signed with the banks concerned for the
management of the assets and liabilities transferred, including their administration and proper
accounting in accordance with the banking regulations in force.
In January 2019, the management, administration and accounting of the transferred assets
and liabilities was taken over by the Institute. At 31 December 2024, the balance of net assets
was EUR 3,000 and the amount of revenue generated in the year was EUR 157,000 (EUR
8,000 in net assets and EUR 109,000 in earnings at 31 December 2023).
1.5 Presentation of consolidated financial statements
In addition to the operations it carries out directly, ICO is the head of a group of subsidiaries,
which are engaged in various activities and make up the ICO Group, together with ICO.
Consequently, the Institute has prepared, in addition to its own financial statements, the
consolidated financial statements of the ICO Group in accordance with current regulations,
which also include interests in joint ventures and investments in associates.
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Pursuant to Article 42 of the Commercial Code, the Institute has prepared the Group's
consolidated financial statements on the same date. The effect of this consolidation on the
accompanying balance sheet at 31 December 2024 and 2023, profit and loss account, the
statement of changes in total equity, the statement of recognised income and expense and
the cash flow statement for 2024 and 2023 is as follows:
Thousands of euros
2024
2023
Individual
Consolidated
Individual
Consolidated
Assets
37 780 225
37 817 961
31 656 823
31 689 303
Net worth
5 384 596
5 482 740
5 689 068
5 776 071
Balance for the year
239 796
250 048
240 215
252 265
Total income and expenses recognised in
equity
(304 472)
(294 220)
302 241
314 291
Net increase / (Decrease) in
cash or cash equivalents
525 856
526 181
(478 455)
(478 741)
1.6 Environmental impact and greenhouse gas emission allowances
ICO's global operations are governed by laws relating to the protection of the environment
(Environmental Laws). The Institute considers that it is in material compliance with such Laws
and that it maintains procedures designed to ensure and promote compliance.
The Institute considers that it has taken appropriate measures to protect and improve the
environment and to minimise, where necessary, its environmental impact, in compliance with
the relevant regulations in force. During 2024 and 2023, ICO has not made any significant
environmental investments and has not considered it necessary to recognise any provision for
environmental risks and charges, nor does it consider that there are any significant
contingencies relating to the protection and improvement of the environment. In addition, the
Institute has not held any greenhouse gas emission allowances.
1.7 Minimum coefficients
1.7.1 Minimum Capital Requirements Coefficient
On 22 May 2008, the Bank of Spain issued Circular 3/2008 on the determination and control
of minimum capital requirements. The aforementioned Circular was the final implementation,
in terms of credit institutions, of the legislation on capital requirements and supervision on a
consolidated basis of financial institutions enacted upon Law 36/2007 of 16 November, which
amended Law 13/1985 of 25 May, on the investment ratio, capital requirements and disclosure
obligations of financial intermediaries and other financial system regulations, and which also
includes Royal Decree 216/2008 of 15 February, on the capital requirements of financial
institutions. This completed the process of adapting Spanish legislation on credit institutions
to EU Directives 2006/48/EC of the European Parliament and of the Council of 14 June 2006
relating to the taking up and pursuit of the business of credit institutions (consolidation) and
2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital
adequacy of investment firms and credit institutions (consolidation). The two above-mentioned
Directives thoroughly revised, following the equivalent Accord adopted by the Basel
Committee on Banking Supervision (known as Basel II), the minimum capital requirements for
credit institutions and their consolidable groups.
Law 10/2014 of 26 June on the regulation, supervision and solvency of credit institutions
replaced, at 1 January 2014, the previous legal body of prudential banking regulation (Law
13/1985 of 25 May and Bank of Spain Circular 3/2008). Prior to this, the European Union
transposed the Basel III agreements of December 2010 into its legal system through
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013
on prudential requirements for credit institutions and investment firms and amending
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Regulation (EU) No 648/2012 and Directive 2013/36/EU of the European Parliament and of
the Council of 26 June 2013 on the access to the activity of credit institutions and the prudential
supervision of credit institutions and investment firms, amending Directive 2002/87/EC and
repealing Directives 2006/48/EC and 2006/49/EC, whose transposition into Spanish law
began with RD-Law 14/2013 of 29 November, on urgent measures for the adaptation of
Spanish law to European Union regulations on the supervision and solvency of financial
institutions.
The main purpose of Law 10/2014 of 26 June, was to adapt the Spanish legal system to the
imposed international and European Union regulatory changes, directly incorporating the
provisions of Regulation (EU) 575/2013 of 26 June (CRR) and duly transposing Directive
2013/36/EU of 26 June (CRD). These EU regulations have substantially altered the rules
applicable to credit institutions, since aspects such as the supervisory regime, capital
requirements and the sanctioning regime have been extensively amended.
The CRR and the CRD regulate capital requirements in the European Union and reflect the
recommendations set out in the Basel III Capital Accord, in particular:
- The CRR, which is directly applicable by the Member States, contains the prudential
requirements to be implemented by credit institutions and covers, inter alia:
- The definition of eligible own funds items, establishing the requirements to be
met by hybrid instruments for their calculation and limiting the calculation the
amount of minority interests.
- The definition of prudential filters and deductions from capital elements in each
capital tier. In this respect, it should be noted that the regulation incorporates new
deductions with respect to Basel II (net tax assets, pension funds, etc.) and
changes existing deductions. However, a phased timetable for full
implementation of between 5 and 10 years is established.
- The setting of minimum requirements (Pillar I), establishing three levels of capital
requirements: Common Equity Tier I capital with a minimum ratio of 4.5%, Tier I
capital with a minimum ratio of 6% and Total Capital with a minimum required
ratio of 8%.
- The requirement for financial institutions to calculate a leverage ratio, which is
defined as the institution's Tier I capital divided by the total assumed exposure
not adjusted for risk. From 2016 onwards, the ratio is publicly disclosed and the
final definition was set in 2017 by supervisors.
- As for the CRD, which is to be implemented by Member States in their national
legislation with their discretion, its main object and purpose is to coordinate national
provisions concerning the access to the activity of credit institutions and investment
firms, their governance arrangements and their supervisory framework. The CRD,
among other aspects, includes the demand for additional capital requirements over
and above those established in the CRR, which will be implemented progressively until
2019 and whose non-compliance implies limitations on discretionary distributions of
earnings, specifically:
- A capital conservation buffer and countercyclical capital buffer, following on from
the Basel III regulatory framework and to offset the pro-cyclical effects of financial
regulation, including a requirement to hold a capital conservation buffer of 2.5%
of common equity Tier I capital for all financial institutions and an institution-
specific countercyclical capital buffer of common equity Tier I capital.
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- A buffer against systemic risks. On the one hand for global systemically important
institutions, as well as for other systemically important institutions, in order to
lessen non-cyclical systemic or macro-prudential risks, i.e. to cover risks of
disturbances in the financial system that could have serious negative
consequences for the financial system and the real economy of a Member State.
- In addition, the CRD, as part of its supervisory powers, establishes that the
competent authority may require credit institutions to hold own funds in excess
of the minimum requirements set out in the CRR (Pillar II).
According to the provisions of Add. Prov. 8 of Law 10/2014, of 26 June, on the regulation,
supervision and solvency of credit institutions, Titles II (Solvency of credit institutions), III
(Supervision) and IV (Sanctioning Regime) of said Law shall apply to Instituto de Crédito
Oficial, with the exceptions determined by regulation, and the provisions on the duty of
confidentiality of information.
From 2015 onwards, and in accordance with the provisions of Bank of Spain Circular 2/2014,
the capital buffers established in the aforementioned regulation are applicable. To date, no
amount has been set by the Supervisor for the specific countercyclical capital buffer. ICO is
not considered a Global Systemically Important Institution (G-SII), nor an Other Systemically
Important Institution (O-SII).
In the 2019 financial year, EU Regulation 2019/876 of 20 May (CRR II) on the solvency of
credit institutions was adopted, amending Regulation (EU) 575/2013. Although the standard
generally entered into force on 28 June 2021, certain provisions entered into force on 27 June
2019 (scope of application, supervisory powers, definitions, capital requirements and eligible
liabilities, and definitions of the leverage ratio). These provisions had no impact on ICO.
In the 2020 financial year, EU Regulation 2020/873 of 24 June 2020 was approved, amending
EU Regulations EU 575/2013 and EU 2019/876 regarding certain adaptations made in
response to the COVID-19 pandemic (among other measures, the extension of transitional
provisions relating to the effect of IFRS 9 on provisions for solvency purposes, the
establishment of new temporary prudential filters and the advancement of the new accounting
of for certain exposures, and the application of the SME and Infrastructure Support Factor).
The provisions of this regulation have had little significant impact on the ICO.
At 31 December 2024 and 2023, the eligible capital of the Entity's group is as follows:
Thousands of euros
2024
2023
Common Equity Tier 1 capital
4 651 571
4 749 323
- Capital
4 314 901
4 314 901
- Prudential reserves and filters (*)
336 670
434 422
Tier 2 capital
-
-
- Other reserves (*)
-
-
- General credit risk adjustments
-
-
Total eligible capital
4 651 571
4 749 323
Total minimum capital (**)
2 998 592
2 710 544
(*) The sum of the reserves used for calculating the Group's eligible capital differs from those reported in the consolidated balance sheet because
intangible asset adjustments and prudential filter adjustments are being taken into account in the calculation of eligible capital.
(**) Calculated as 14.91% of risk-weighted assets (RWA), the level of the total capital requirement (OCR) set by the Bank of Spain for the Group in
2024 (15.16% in 2023).
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At 31 December 2024 and 2023, the most relevant data on the Group's minimum capital are
as follows (amounts in thousands of euros):
Thousands of euros
2024
2023
Tier 1 capital
4 651 571
4 749 323
Risk-weighted assets (RWA)
20 111 284
17 879 576
Tier 1 capital ratio (%)
23.13%
26.56%
Total eligible capital
4 651 571
4 749 323
Total eligible capital ratio (%)
23.13%
26.56%
Minimum eligible capital ratio (%) (*)
14.91%
15.16%
(*) The minimum total capital ratio at 31 December 2024, established by the Bank of Spain for the Institute's Group
is 14.91%, considering both the requirements of EU Regulation 575/2013 (8%) and the additional capital requirements
(4.29%), the capital conservation buffer (2.5%) and the countercyclical capital buffer (0.12%).
At 31 December 2024 and 2023, the Group's total eligible capital exceeds the minimum
requirements of the entity by EUR 1,652,979 thousand and EUR 2,038,779 thousand,
respectively.
1.7.2 Minimum Reserve Ratio
In accordance with the procedure laid down in Regulation ECB/2021/1 of 22 January 2021 on
the application of minimum reserves, the Institute is required to hold minimum reserves at the
end of 2024 of EUR 110,540 thousand (EUR 11,064,010 thousand reserve base).
1.7.3 Capital Management
For management purposes, the Institute considers eligible Tier 1 and Tier 2 capital as own
funds, as set out in the regulations applicable to it for solvency purposes (EU Regulation
575/2013).
In this respect, regulatory capital requirements are directly incorporated into its capital
management, the aim being to always hold a solvency ratio of no less than the minimum
established for the institution by the Bank of Spain. This objective is achieved through
appropriate capital planning.
1.8 Subsequent events
In accordance with the provisions of the Eleventh Additional Provision of Law 24/2001 of 27
December on Fiscal, Administrative and Social Measures, amended by Law 42/2006 on the
2007 General Budget, the amounts recovered following the cancellation of the debts engaged
by the State with ICO pertaining to certain credits and guarantees granted by the former
Official Credit Institutions and by the Institute itself will become part of the Institute's assets.
The estimated amount for 2024 is EUR 700 thousand, which will be recorded for accounting
purposes in 2025.
EU Regulation 2024/1623 (amending EU Regulation 575/2013 on capital requirements for
credit institutions) and EU Directive 2024/1619 (amending Directive 2013/36/EU on regulatory
supervisory powers regarding the solvency of credit institutions) were adopted during the 2024
financial year. The above regulation amends certain aspects of capital requirements for credit
risk, credit valuation adjustment, operational risk and market risk and will apply starting 1
January 2025. This regulation will have a positive impact on ICO, improving the solvency ratio.
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No significant events other than those indicated in the preceding paragraphs have occurred
between the end of the financial year (31 December 2024) and the preparation of these
financial statements (27 March 2025).
1.9 Business segment reporting
The Institute's main activity is the granting of financing facilities and direct loans and, therefore,
in accordance with the applicable regulations, it is considered that the information relating to
the segmentation of the ICO's operations into different business lines is not relevant.
ICO operates both domestically and abroad, always linked to the financing of operations that
have a Spanish interest.
1.10 ICO-Direct lending activity
In June 2010, ICO launched a new lending activity called "ICO-Direct [ICO-Directo]", aimed at
financing the self-employed, SMEs and non-profit entities residing in Spain (with more than
one year of activity), for investments in national territory (machinery, furniture, computer
equipment, real estate, etc.). This activity complemented the Institute's typical activities
through its mediation facilities with financial institutions, and broadened the available financing
channels for SMEs and the self-employed. The ICO Directo facility was extended for 2011 and
2012, ending in June 2012.
The formalisation and administration of the ICO Directo operation was carried out by the
financial institutions Banco Santander (BS) and Banco Bilbao Vizcaya Argentaria (BBVA), the
successful bidders in the tender held by the Institute for this purpose.
The balance at 31 December 2024 of total net assets was zero (also at 31 December 2023).
The net income generated in 2024 amounted to EUR 4,701 thousand (EUR 4,346 thousand
in 2023), mainly due to the recovery of write-offs.
1.11 ICO Local Entities 2011 lending activity
The ICO-Local Entities 2011 [ICO-Entidades Locales 2011] facility was launched as a result
of the Royal Decree Law to boost the sustainability of public accounts and social protection
approved in July 2011 by the Council of Ministers, whose objective was to alleviate the
situation of many self-employed and small companies that, given the current economic
situation, were facing a serious problem in settling their collection rights for supplies, works
and services carried out for local entities.
The objective of this facility was to provide liquidity to local entities for the payment of
outstanding invoices issued up to 30 April 2011. This financial facility was primarily intended
to enable the cancellation of debts to the self-employed and small and medium-sized
enterprises, also taking into account the date of issue of the certificates or documents.
The ICO-Local Entities Facility was open from July to November 2011 and enabled 1,029 local
councils, provincial councils and island councils throughout Spain to pay 222,975 outstanding
invoices amounting to EUR 967 million for supplies, works and services provided by 38,338
self-employed workers and SMEs in 2011.
The formalisation and administration of the operations of the ICO Local Entities 2011 facility
was carried out by several contracting companies participating in the project.
At 31 December 2024 the balance of these assets (classified as doubtful assets) was zero
(EUR 28 thousand at 31 December 2023).
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This facility was guaranteed for the Institute with the Share of National Tax Revenue (SNTR)
of the borrowing local entities. The reduction in the outstanding amount of this facility, from
the onset until 31 December 2024, charged to the SNTR, is EUR 65.31 million (EUR 65.31
million at 31 December 2023). Of the 1,029 institutions covered, a total of 409 institutions had
to resort to the SNTR by 31 December 2024.
2. ACCOUNTING POLICIES AND MEASUREMENT BASES APPLIED
The following accounting policies and measurement bases have been applied in the
preparation of ICO's financial statements for the year ended 31 December 2024:
a) Going concern principle
In preparing the financial statements, it has been considered that the management of the
Institute will continue for the foreseeable future. Therefore, the application of the accounting
rules is not aimed at determining the value of the net assets for the purpose of their global or
partial transfer or the resulting amount in the event of liquidation.
b) Accrual principle
These financial statements, except for the cash flow statements, where applicable, have been
prepared on the basis of the actual flow of goods and services, regardless of the payable or
receivable date.
c) Other general principles
The financial statements have been prepared on a historical cost basis, adjust by the
revaluation, where applicable, of land and buildings (only at 1 January 2004) (note 13),
available-for-sale financial assets and financial assets and liabilities (including derivatives) at
fair value.
2.1 Holdings
2.1.1 Group entities
Subsidiaries are those entities over which the Institute has control. It is understood that an
entity controls an investee when it is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over
the investee.
To be considered subsidiaries, the following must apply:
- Powers: An investor has power over an investee when the investor has existing rights
that give it the ability to direct the relevant activities, that is, the activities that
significantly affect the investee's returns;
- Returns: An investor is exposed, or entitled, to variable returns from its involvement
with an investee when the investor's returns from its involvement may vary depending
on the economic performance of the investee. Investor returns can be only positive,
only negative or both positive and negative.
- Relationship between power and returns: An investor controls an investee if the
investor not only has power over the investee and is exposed, or is entitled, to variable
returns from its involvement with the investee, but also has the ability to use its power
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to affect the returns it earns from its involvement with the investee.
These holdings are presented in these financial statements under "Investments in
subsidiaries, joint ventures – Subsidiaries” in the accompanying balance sheet and are stated
at acquisition cost, net of any impairment losses on these investments, where applicable.
When, in accordance with the provisions of Bank of Spain Circular 4/2017, there is evidence
of impairment of these investments, the amount of the impairment is estimated as the negative
difference between their recoverable amount (calculated as the higher of the fair value of the
investment after the costs necessary to sell it and its value in use, the latter defined as the
current value of the cash flows expected to be received from the holding in the form of
dividends and those corresponding to its disposal, to the extent that its underlying book value
adjusted for unrealised gains at the date of valuation is not considered more representative)
and their carrying amount. Impairment losses on these holdings and recoveries of such losses
are credited or debited, respectively, to "Gains or losses on derecognition of non-financial
assets, net" in the profit and loss account.
Dividends accrued during the year on these shareholdings are recorded under "Dividend
income" in the profit and loss account (Note 26).
Note 12 provides information on the accounting data at 31 December 2024 and 2023 under
this heading.
Annex I provides relevant information on these entities, all of which close at 31 December.
2.1.2 Associated entities
These are entities over which the Institute has the ability to exercise significant influence,
although they do not constitute a decision-making unit with the Institute and are not under joint
control. This capacity usually takes the form of a (direct or indirect) shareholding of 20% or
more of the voting rights of the investee.
Under the new rules, control is defined as the power to govern the financial and operating
policies of a company so as to obtain benefits from its activities.
Holdings in associated entities are presented in these financial statements under "Investments
in subsidiaries, joint ventures and associates - Associates" in the accompanying balance sheet
and are stated at acquisition cost, net of any impairment losses on these investments, where
applicable.
When, in accordance with the provisions of Bank of Spain Circular 4/2017, there is evidence
of impairment of these investments, the impairment amount is estimated as the negative
difference between their recoverable amount (calculated as the higher of the fair value of the
investment after the sale costs necessary to sell it and its value in use, the latter defined as
the current value of the cash flows expected to be received from the holding in the form of
dividends and those corresponding to its disposal, to the extent that its underlying book value
adjusted for unrealised gains at the date of valuation is not considered to be more
representative) and their carrying amount. Impairment losses on these holdings and
recoveries of such losses are credited or debited, respectively, to "Gains or losses on
derecognition of non-financial assets, net" in the profit and loss account.
Dividends accrued during the year on these shareholdings are recorded under "Dividend
income" in the profit and loss account (Note 26).
Relevant information on these entities is provided in Annex I.
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2.2 Financial instruments
2.2.1 Initial recognition of financial instruments
Financial instruments are initially recognised in the balance sheet when the Institute becomes
a party to the contract giving rise to them, in accordance with the terms of that contract. In
particular, debt instruments such as loans and cash deposits are recorded from the date on
which the legal right to receive or the legal obligation to pay respectively arises. Financial
derivatives are generally recognised on the trade date.
Financial asset trades instrumented through standard contracts, understood as those
contracts in which the reciprocal obligations of the parties must be consummated within a time
frame established by regulation or market convention and which cannot be settled by offset,
such as stock exchange contracts or forward foreign exchange contracts, are recorded from
the date on which the benefits, risks, rights and duties inherent to all owners are transferred
to the acquiring party, which, depending on the type of financial asset traded, may be the trade
date or the settlement or delivery date. Specifically, transactions in the spot foreign exchange
market are recorded on the settlement date; transactions in equity instruments traded on
Spanish secondary securities markets are recorded on the trade date; and transactions in debt
instruments traded on Spanish secondary securities markets are recorded on the settlement
date.
2.2.2 Transfers and derecognition of financial instruments
Transfers of financial instruments are accounted for by taking into account the manner in which
the risks and rewards associated with the transferred financial instruments are transferred,
based on the following criteria:
- If the risks and rewards are substantially transferred to third parties, such as in
unconditional sales, sales under repurchase agreements at fair value at the
repurchase date, sales of financial assets with a purchased call option or deeply out-
of-the-money put option, asset securitisations in which the transferor does not retain
subordinated financing or grant any credit enhancement to the new holders, etc., the
transferred financial instrument is derecognised and, simultaneously, any rights or
obligations retained or created as a result of the transfer are recognised in the balance
sheet.
- If all risks and rewards associated with the transferred financial instrument are
substantially retained, such as in sales of financial assets under repurchase
agreements for a fixed price or for the sale price plus interest, securities lending
contracts in which the borrower has an obligation to return the same or similar assets,
etc., the transferred financial instrument is not derecognised and continues to be
measured on the same basis as before the transfer. However, the associated financial
liability is recognised for accounting purposes at an amount equal to the consideration
received, which is subsequently measured at amortised cost, the revenue from the
transferred but not derecognised financial asset and the cost of the new financial
liability.
- If neither the risks and rewards associated with the transferred financial instrument are
substantially transferred nor retained, such as in sales of financial assets with a
purchased call option or written put option that are neither deeply in-the-money nor
deeply out-of-the-money, securitisations where the transferor assumes subordinated
financing or other credit enhancements for a portion of the transferred asset, etc., a
distinction is made between:
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- If the Entity does not retain control of the transferred financial instrument, in which
case it is derecognised and any rights or obligations retained or created as a
result of the transfer are recognised.
- If the Entity retains control of the transferred financial instrument, in which case
it is still recognised on the balance sheet for an amount equal to its exposure to
changes in value and an associated financial liability is recognised for an amount
equal to the consideration received. Such liabilities are subsequently measured
at amortised cost unless they qualify for classification as financial liabilities at fair
value, through profit or loss. Because they do not constitute a current obligation,
when calculating the amount of this financial liability, the amount of financial
instruments (such as asset-backed securities and loans) held by the Entity that
constitute its own financing to which the financial assets are transferred shall be
deducted to the extent that these instruments specifically finance the transferred
assets. The net amount of the transferred asset and the associated liability shall
be the amortised cost of the retained rights and obligations, if the transferred
asset is measured at amortised cost, or the fair value of the retained rights and
obligations, if the transferred asset is measured at fair value.
Therefore, financial assets are only derecognised from the balance sheet when the cash flows
they generate have been extinguished or when substantially all the risks and rewards
associated with them have been transferred to third parties.
Similarly, financial liabilities are only derecognised from the balance sheet when the
obligations they generate have been extinguished or when they are acquired with the intention
of cancelling them or repositioning them.
2.2.3 Fair value and amortised cost of financial instruments
Financial assets
The fair value of a financial instrument on a specified date is the amount for which it could be
bought or sold on that date between two knowledgeable, willing parties in an arm's length
transaction. The most objective and common reference for the fair value of a financial
instrument is the price that would be paid for it in a deep, regulated and transparent market
("quoted price" or "market price").
When there is no market price for a given financial instrument, its fair value is estimated on
the basis of the price established in recent transactions involving similar instruments or, in the
absence thereof, on the basis of valuation models sufficiently contrasted by the international
financial community, taking into account the specific characteristics of the instrument to be
valued and, in particular, the different types of risk associated with it.
Specifically, the fair value of financial derivatives traded on deep, regulated and transparent
markets included in the trading portfolios is assimilated to their daily quotation and if, for
exceptional reasons, their quotation cannot be established on a given date, they are valued
using methods similar to those used to value derivatives not traded on regulated markets.
The fair value of OTC derivatives or derivatives traded on shallow or non-transparent regulated
markets is taken to be the sum of the future cash flows arising from the instrument, discounted
to present value at the date of valuation ("present value" or "theoretical close"), using methods
recognised by the financial markets in the valuation process: "net present value” (NPV) and
option pricing models.
Amortised cost means the acquisition cost of a financial asset or liability, adjusted (plus or
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minus, as appropriate) for repayments on the principal and interest, plus or minus, as
appropriate, the portion charged to the profit and loss account, using the effective interest
method to determine the difference between the initial amount and the redemption value of
such financial instruments. In the case of financial assets, the amortised cost also includes
adjustment to its value incurred by potential impairment losses.
The effective interest rate is the discount rate that exactly matches the initial value of a financial
instrument to all of its estimated cash flows from all sources over its remaining life. For fixed-
rate financial instruments, the effective interest rate coincides with the contractual interest rate
established at the time of acquisition, adjusted, where applicable, for fees and transaction
costs that, in accordance with the provisions of Bank of Spain Circular 4/2017, must be
included in the calculation of the effective interest rate. For variable rate financial instruments,
the effective interest rate is estimated in a manner similar to that for fixed rate transactions
and is recalculated at each contractual interest rate review date on the basis of changes to
the future cash flows of the transaction.
Equity investments in other entities whose fair value cannot be determined in a sufficiently
objective manner and financial derivatives whose underlying assets are such instruments and
are settled by delivery of these instruments are carried at cost adjusted for any impairment
losses, where applicable.
Equity investments in subsidiaries, jointly controlled entities and associates are stated at cost,
where applicable, and adjusted for any impairment losses.
Changes in the carrying amount of financial assets are generally recognised with a balancing
entry in the profit and loss account, with a distinction being made between those arising from
the accrual of interest and similar items, which are recognised under "Interest income", and
those arising from other causes, which are recognised in the profit and loss account, at their
net under "Gains or losses on financial assets measured at fair value posted to profit or loss”
in the profit and loss account.
However, changes in the carrying amount of instruments included in the financial asset
portfolio measured at fair value through other comprehensive income are recognised
temporarily in “Other accumulated comprehensive income”, unless they arise from exchange
differences. Amounts included under "Other accumulated comprehensive income" for
changes in the fair value of these financial instruments remain in equity until the asset in which
they arise is derecognised, at which time they are written off against the profit and loss
account, unless they are financial instruments whose valuation changes will never be
reclassified in the profit and loss account.
In addition, changes in the carrying amount of items included under “Non-current assets held
for sale” are recognised with a balancing entry in “Other accumulated comprehensive income”
as equity valuation adjustments.
In relation to financial instruments, fair value measurements reflected in the financial
statements are classified using the following fair value hierarchy:
i) Level I: fair values are derived from quoted prices (unadjusted) in active markets for
the same instrument.
ii) Level II: fair values are derived from quoted prices in active markets for similar
instruments, prices of recent transactions or expected flows, or other valuation
techniques in which all significant inputs are based on directly or indirectly observable
market data.
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iii) Level III: fair values are derived from valuation techniques in which some significant
input is not based on observable market data.
For financial assets designated as hedged items and accounting hedges, valuation differences
are recorded on the basis of the following criteria:
- In fair value hedges, differences in both the hedging items and the hedged items, in
terms of the type of risk hedged, are recognised directly in the profit and loss account.
- Valuation differences relating to the ineffective portion of cash flow hedges and net
investments in foreign operations are directly posted to the profit and loss account.
- In cash flow hedges, valuation differences arising on the effective portion of the hedged
item are recognised temporarily in “Other accumulated comprehensive income” as
valuation adjustments in equity.
- In net investment hedges in overseas businesses, valuation differences arising on the
effective portion of the hedged item are recognised temporarily in “Other accumulated
comprehensive income” as valuation adjustments in equity.
In the latter two cases, valuation differences are not recognised in profit or loss until the gain
or loss on the hedged item is recognised in the profit and loss account or until the maturity
date of the hedged item.
In fair value hedges of the interest rate risk of a financial instrument portfolio, gains or losses
arising on measurement of the hedging instruments are recognised directly in the profit and
loss account, while gains or losses due to changes in the fair value of the hedged amount, in
respect of the hedged risk, are recognised in the profit and loss account with a balancing entry
in "Other accumulated comprehensive income" as adjustments to financial assets for macro-
hedges.
In cash flow hedges of interest rate risk in a financial instrument portfolio, the effective portion
of the change in the value of the hedging instrument is recognised temporarily as valuation
adjustments in equity until the forecast transactions occur in “Other accumulated
comprehensive income”, at which time it is recognised in the profit and loss account. The
change in value of hedging derivatives for the ineffective portion of the hedge is recognised
directly in the profit and loss account.
Financial liabilities
Financial liabilities are recognised at amortised cost, as defined for financial assets, except as
follows:
- Financial liabilities included under "Financial liabilities held for trading" and "Financial
liabilities designated at fair value, through profit or loss" are measured at fair value as
defined for financial assets. Financial liabilities hedged in fair value hedging
transactions are adjusted for changes in their fair value in relation to the risk hedged
in the hedging transaction.
- Financial derivatives with underlying equity instruments whose fair value cannot be
determined in a sufficiently objective manner and are settled by delivery are measured
at cost.
Changes in the carrying amount of financial liabilities are generally recognised with a
balancing entry in the profit and loss account, with a distinction being made between those
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arising from the accrual of interest and similar items, which are recognised under "Interest
expenses", and those arising from other causes, which are recognised in the profit and loss
account, at their net amount, under "Gains or losses on financial liabilities at fair value through
profit or loss” in the profit and loss account.
For financial liabilities designated as hedged items and accounting hedges, valuation
differences are recorded on the basis of the criteria indicated for Financial Assets in the
previous note.
2.2.4 Classification and measurement of financial assets and liabilities
Financial instruments are classified in the Institute's balance sheet according to the following
categories:
- Cash, balances held in cash with central banks, and other demand deposits: these
correspond to cash balances and balances held at the Bank of Spain, at other central
banks and other credit institutions;
- Financial assets and liabilities designated at fair value, through profit or loss: this
category comprises financial instruments held for trading and other financial assets
and liabilities designated at fair value, through profit or loss:
• Financial assets held for trading are those that are acquired with the intention of
being realised in the short term or that form part of a portfolio of identified financial
instruments that are jointly managed and for which there is evidence of recent
actions to realise short-term gains. Derivative instruments that do not meet the
definition of a financial guarantee contract and have not been designated as
accounting hedging instruments, including those held separately from hybrid
financial instruments, also form part of this portfolio.
• Financial liabilities held for trading are those that have been issued with the
intention of repurchasing them in the near future or form part of a portfolio of
identified or jointly managed financial instruments for which there is evidence of
recent actions to realise short-term gains, short positions in securities resulting
from sales of assets purchased under non-optional reverse repurchase
agreements or securities borrowed and derivative instruments that do not meet
the definition of a financial guarantee contract and have not been designated as
accounting hedging instruments, including those held separately from hybrid
financial instruments, and those arising from the outright sale of financial assets
purchased under reverse repurchase agreements or securities borrowed. The
fact that a financial liability is used to fund trading assets does not in itself imply
that it is included in this category.
• The following are considered to be other financial assets or liabilities at fair value
through profit or loss:
- Financial assets that are not held for trading but are considered to be hybrid
financial assets and are measured entirely at fair value, and those that are
managed together with insurance contract liabilities measured at fair value
or with financial derivatives that have the purpose and effect of significantly
reducing their exposure to changes in fair value or that are managed
together with financial liabilities and derivatives in order to significantly
reduce the overall exposure to interest rate risk.
- Financial liabilities designated upon initial recognition by the Institute or
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when doing so provides more relevant information because:
- This eliminates or significantly reduces inconsistencies in recognition or
measurement that would arise from measuring assets or liabilities, or
recognising their gains or losses, on different bases.
- A group of financial liabilities or financial assets and financial liabilities is
managed and its performance is measured on a fair value basis in
accordance with a documented risk management or investment
strategy and information about that group is also provided on a fair
value basis to key management personnel.
- Assets measured at amortised cost. This category includes:
o Debt securities with fixed maturity and fixed or determinable cash flows.
Debt securities included in this category are initially measured at fair value,
adjusted by the amount of the transaction costs directly attributable to the
acquisition of the financial asset, which are posted in the profit and loss
account using the effective interest method as defined in Bank of Spain
Circular 4/2017. They are subsequently measured at amortised cost,
calculated using their effective interest rate.
o Loans and receivables: this category includes financing lent to third parties
arising from the typical lending and credit activities conducted by the
Institute and debts owed to them by purchasers of goods and users of the
services they provide. Also included in this category are financial leasing
transactions in which companies act as lessors.
The financial assets included in this category are initially measured at fair value,
adjusted by the amount of the fees, commissions and transaction costs that are directly
attributable to the acquisition of the financial asset and which, according to Bank of
Spain Circular 4/2017, must be posted to the profit and loss account using the effective
interest method through maturity. Subsequent to acquisition, assets acquired in this
category are measured at amortised cost.
Assets acquired at a discount are carried at the cash amount paid and the difference
between their redemption value and the cash amount paid is recognised as finance
income using the effective interest method over the remaining term to maturity.
Interest accrued on assets included in this category, calculated using the effective
interest method, is recognised under "Interest income" in the profit and loss account.
Exchange differences on securities included in this portfolio denominated in currencies
other than Euro are recorded according to the contents of Note 2.4. Any impairment
losses incurred on these securities are recorded in accordance with the contents of
Note 2.7. Debt securities included in fair value hedges are recorded in accordance with
the contents of Note 2.3.
- Financial assets at fair value through other comprehensive income: this category
includes debt securities not classified as instruments owned by the Institute at
amortised cost or as instruments at fair value through profit or loss, as well as equity
instruments owned by the Institute relating to entities other than subsidiaries, joint
ventures or associates that are not classified at fair value through profit or loss.
Instruments included in this category are initially measured at fair value, adjusted by
the amount of the transaction costs that are directly attributable to the acquisition of
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the financial asset, which are posted in the profit and loss account using the effective
interest rate method as defined in Bank of Spain Circular 4/2017 until maturity, unless
the financial assets have no fixed maturity, in which case they are posted in the profit
and loss account when they become impaired or are derecognised. Subsequent to
acquisition, financial assets included in this category are measured at fair value.
Notwithstanding the above, equity instruments whose fair value cannot be sufficiently
determined objectively are measured in these financial statements at cost, net of any
impairment loss, calculated in accordance with the criteria set out in Note 2.7.
Interest or dividend income accrued on these financial assets is recognised with a
balancing entry under "Interest income" (calculated using the effective interest method)
and "Dividend income" in the profit and loss account, respectively. Impairment losses
on these instruments are accounted for in accordance with Note 2.7. Exchange
differences on financial assets denominated in currencies other than Euro are recorded
in accordance with Note 2.4. Changes in the fair value of financial assets hedged in
fair value hedging transactions are measured in accordance with Note 2.3.
Other changes in the fair value of financial assets from the time of acquisition are
recognised in equity under "Other accumulated comprehensive income" as valuation
adjustments until the financial asset is derecognised, at which time the balance
recorded under this heading is recognised in the profit and loss account under "Gains
and losses on derecognition of financial assets and liabilities measured at fair value
through profit or loss".
- Financial liabilities at amortised cost: this financial instrument category includes
financial liabilities that are not included in any of the above categories.
Financial liabilities included in this category are initially measured at fair value, adjusted
by the amount of transaction costs directly attributable to the issue of financial liabilities,
which will be posted in the profit and loss account using the effective interest method
as defined in Bank of Spain Circular 4/2017 until maturity. They are subsequently
measured at amortised cost, calculated using the effective interest rate method as
defined in Circular 4/2017.
The interest accrued on these securities, calculated using the effective interest
method, is recorded under "Interest expense" in the profit and loss account. Exchange
differences on securities included in this portfolio denominated in currencies other than
Euro are recorded according to the contents of Note 2.4. Financial liabilities included
in fair value hedges are recognised according to the contents of Note 2.3.
Notwithstanding the foregoing, financial instruments that must be considered as non-current
assets held for sale in accordance with the provisions of Rule Thirty-Four of Bank of Spain
Circular 4/2017 are presented in the financial statements in accordance with the criteria
explained in Note 2.16.
The classification of financial instruments into the above categories shall be made on the basis
of two elements: (i) the entity's business model for managing financial assets; and (ii) the
contractual cash flow characteristics of the financial assets:
- A financial asset is classified in the financial asset portfolio at amortised cost when
both conditions are met: (i) it is managed under a business model whose objective
is to hold financial assets to receive the contractual cash flows; and (ii) the
contractual terms result in cash flows at specified dates, which are always
payments of principal and interest on the outstanding principal amount;
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33
- A financial asset is classified in the financial asset portfolio at fair value through
other comprehensive income when both of the following conditions are met: (i) it
is managed under a business model whose objective combines the receipt of
contractual cash flows from financial assets and sale; (ii) the contractual terms
result in cash flows at specified dates, which are always payments of principal
and interest on the amount of outstanding principal;
- A financial asset is classified in the portfolio of financial assets held for trading or
financial assets mandatorily at fair value through profit or loss whenever the
entity's business model for the management or characteristics of its contractual
cash flows make its classification unsuitable for any of the above portfolios.
Notwithstanding the above, an entity may irrevocably elect, at initial recognition,
to include investments in equity instruments that are not required to be classified
as held for trading in the portfolio of financial assets at fair value through other
comprehensive income which would be mandatorily classified as financial assets
at fair value through profit or loss. This option shall be exercised on an instrument-
by-instrument basis.
In addition, an entity may irrevocably elect to designate, at initial recognition, any
financial asset at fair value through profit or loss if by doing so it eliminates or
significantly reduces an inconsistent measurement or recognition (also referred to
as an 'accounting mismatch') that would otherwise arise from measuring the
assets or liabilities, or recognising their gains and losses, on different bases.
When accounting mismatches exist, this option can be exercised irrespective of
the entity's business model for the management and characteristics of its
contractual cash flows.
In addition, irrespective of the provisions of the preceding paragraphs, an entity
may choose, at initial recognition or subsequently, to designate any financial asset
as belonging to the financial asset portfolio at fair value through profit or loss,
provided that the requirements set out in Circular 4/2017 are met.
Reclassifications between financial instrument portfolios, where appropriate, are made
exclusively in accordance with the following assumptions:
- When an entity changes its business model for managing financial assets, it shall
reclassify all affected financial assets in accordance with the following
paragraphs. Such reclassification shall be made prospectively from the date of
reclassification, with no restatement of previously recognised gains, losses or
interest. In general, changes in the business model occur very infrequently.
- If an entity reclassifies a debt instrument from amortised cost to fair value through
profit or loss, the entity shall estimate its fair value at the date of reclassification.
Any gain or loss arising from the difference between the previous amortised cost
and the fair value is recognised in the profit and loss account. If an entity
reclassifies a debt instrument from fair value through profit or loss at amortised
cost, the fair value of the asset at the date of reclassification becomes its new
gross carrying amount.
- If an entity reclassifies a debt instrument from amortised cost to fair value through
other comprehensive income, the entity shall estimate its fair value at the date of
reclassification. Any gain or loss arising from the differences between the previous
amortised cost and the fair value is recognised as other comprehensive income.
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The effective interest rate and the estimate of expected credit losses shall not be
adjusted as a result of the reclassification.
- If a debt instrument is reclassified from fair value through other comprehensive
income to amortised cost, the financial asset shall be reclassified at fair value at
the date of reclassification. The cumulative gain or loss in net equity at the date
of reclassification to other accumulated comprehensive income shall be reversed
using the carrying amount of the asset at the date of reclassification as the
offsetting entry. Thus, the debt instrument shall be measured at the
reclassification date as if it had always been measured at amortised cost. The
effective interest rate and the estimate of expected credit losses shall not be
adjusted as a result of the reclassification.
- If an entity reclassifies a debt instrument from fair value through profit or loss to
fair value through other comprehensive income, the financial asset shall continue
to be measured at fair value, with no change in the accounting for previous value
changes.
- If an entity reclassifies a debt instrument from fair value through other
comprehensive income to fair value through profit or loss, the financial asset shall
continue to be measured at fair value. The cumulative gain or loss in net equity
previously accumulated in accumulated other comprehensive income shall be
transferred to profit or loss for the period at the date of reclassification.
- When an investment in a subsidiary, joint venture or an associate ceases to
qualify as such, the retained investment, if any, shall be measured at its fair value
at the date of reclassification, recognising any gain or loss arising from the
difference between its carrying amount before reclassification and its fair value
recognised in profit or loss or in other comprehensive income, as appropriate,
based on the subsequent measurement of the retained investment.
- An interest in an entity prior to its classification as a subsidiary, joint venture or
associate shall be measured at fair value until the date control, joint control or
significant influence is obtained. At the latter date, the entity shall estimate the fair
value of the previous interest by recognising any gain or loss arising from the
difference between its pre-reclassification carrying amount and that fair value in
profit or loss or in other comprehensive income, as appropriate. If applicable, the
cumulative gain or loss in other accumulated comprehensive income in net equity
shall be retained until the investment is derecognised, at which time it shall be
reclassified to a reserve item.
- An entity shall not reclassify any financial liabilities.
Changes arising from the following circumstances are not reclassifications for the purposes of
the preceding paragraphs:
a) When an item that was previously a designated and effective hedging instrument in a
cash flow hedge or a hedge of a net investment in a foreign transaction no longer
qualifies as a hedging instrument.
b) When an item becomes a designated and effective hedging instrument in a cash flow
hedge or a hedge of a net investment in a foreign transaction.
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c) When there are changes in the measurement of financial instruments because they
are, or cease to be, designated at fair value through profit or loss.
There have been no reclassifications during the 2024 and 2023 financial years.
2.3 Financial derivatives
Financial derivatives are instruments which, in addition to providing a gain or loss, may, under
certain conditions, offset all or part of the credit and/or market risks associated with balances
and transactions, using interest rates, certain indices, the prices of certain securities, cross-
currency exchange rates or other similar references as underlying items. The Institute uses
financial derivatives traded on organised markets or traded bilaterally with the counterparty
outside organised markets (OTC).
The Institute uses financial derivatives as part of its strategy to reduce its exposure to interest
rate, foreign currency exchange rate and market risks, among others. When these
transactions meet certain requirements set out in Rules Thirty-First and Thirty-Second of Bank
of Spain Circular 4/2017, they are considered "hedging" transactions.
When the Institute designates a transaction as a hedge, it does so at the inception of the
transactions or instruments included in the hedge and appropriately documents the hedging
transaction. The documentation of these hedging transactions makes an adequate
identification of both the hedged instrument (s) and the hedging instrument(s), as well as the
nature of the risk to be hedged, and the criteria or methods used by the Institute to assess the
effectiveness of the hedge over its entire duration, taking into account the risk to be hedged.
The Institute only considers hedging transactions that are found to be highly effective over the
duration of the transactions. A hedge is considered highly effective if, over the expected life of
the hedge, the changes in the fair value or cash flows attributable to the hedged risk in the
hedging instrument(s) are almost entirely offset by changes in the fair value or cash flows of
the hedging instrument(s), as the case may be.
To measure the effectiveness of hedging transactions defined as such, the Institute analyses
whether, from inception to the term end of the defined hedge, the changes in the fair value or
cash flows of the hedged item attributable to the hedged risk can be expected, prospectively,
to be almost fully offset by changes in the fair value or cash flows of the hedging instrument(s),
as appropriate, and, retrospectively, the results of the hedge have varied within a range of
eighty to one hundred and twenty-five per cent of the hedged item's performance.
The Institute's hedging transactions are classified into the following categories:
- Fair value hedges: these hedge the exposure to changes in the fair value of financial
assets and liabilities or standing commitments, or an identified portion of such assets,
liabilities or standing commitments, which are attributable to a particular risk and
provided that they affect the profit and loss account.
- Cash flow hedges: these hedge the change in cash flows that is attributable to a
particular risk associated with a financial asset or liability or a highly probable forecast
transaction, provided that it could affect the profit and loss account.
Specifically referring to financial instruments designated as hedged items and accounting
hedges, valuation differences are recorded on the basis of the following criteria:
- In fair value hedges, differences in fair value in both the hedge items and the items
hedged, in terms of the type of risk hedged, are recognised directly in the profit and
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loss account.
- In cash flow hedges, valuation differences arising on the effective portion of the hedged
item are recognised temporarily in “Other accumulated comprehensive income” as
valuation adjustments for cash flow hedges. The financial instruments hedged in this
type of hedging transactions are recorded in accordance with the criteria explained in
Note 2.2 without any changes to them, due to the fact that they have been considered
as hedged instruments.
In the latter case, valuation differences are not recognised in profit or loss until the gain or loss
on the hedged item is recognised in the profit and loss account or until the maturity date of the
hedged item.
Differences in valuation of the hedging instrument corresponding to the ineffective portion of
cash flow hedges are recognised directly under "Gains or (losses) arising from hedge
accounting, net" in the accompanying profit and loss account.
The Institute discontinues hedge accounting when the hedging instrument matures or is sold,
when the hedging transaction no longer qualifies as a hedge, or when the hedge accounting
is revoked.
When, in accordance with the provisions of the preceding paragraph, the fair value hedging
transaction is discontinued, in the case of hedged items measured at amortised cost, the
adjustments to their value made as a result of the application of hedge accounting described
above are posted in the profit and loss account until the maturity of the hedged instruments,
applying the effective interest rate recalculated at the date the hedging transaction is
discontinued.
If a cash flow hedge is discontinued, the cumulative gain or loss on the hedging instrument
recognised under "Other accumulated comprehensive income" as valuation adjustments for
cash flow hedges in equity in the balance sheet shall remain recognised in equity until the
forecast hedged transaction occurs, at which time it shall be taken to the profit and loss
account or, if the hedged item is a forecast transaction that culminates in the recognition of a
financial asset or liability, the acquisition cost of the asset or liability to be recognised shall be
adjusted. In the case of forecast transactions, where it is expected that the transaction will not
take place, the amount recognised in "Other accumulated comprehensive income" as
valuation adjustments for cash flow hedges relating to the transaction is recognised
immediately in the profit and loss account.
2.4 Foreign currency transactions and functional currency
The Institute's functional currency is the Euro. Accordingly, all balances and transactions
denominated in currencies other than Euro are deemed to be denominated in foreign
currencies.
At 31 December 2024 and 2023, the equivalent value of foreign currency financial assets and
liabilities held by ICO is as follows (in thousands of euros):
2024
2023
Assets
Liabilities
Assets
Liabilities
Pounds sterling
373 078
334 061
304 035
275 323
US Dollars
3 188 414
13 569 689
2 678 621
9 856 669
Swiss francs
27
-
-
274 439
Japanese yen
638
30 785
666
32 110
Other currencies
325 021
144 906
374 671
44 716
3 887 178
14 079 441
3 357 993
10 483 257
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At 31 December 2024 and 2023, the equivalent value of foreign currency financial assets and
liabilities (in thousands of euros) held by the ICO is as follows, classified by type:
2024
2023
Assets
Liabilities
Assets
Liabilities
Loans to Credit Institutions
1 953 287
1 542 287
Loans to Clients
1 921 924
1 803 731
Other financial assets
11 967
11 975
Deposits with Credit Institutions
3 532 078
3 460 183
Debt securities issued
10 546 864
7 022 652
Other financial liabilities
499
422
3 887 178
14 079 441
3 357 993
10 483 257
On initial recognition, receivables and payables denominated in foreign currencies are
translated into the functional currency using the spot exchange rate at the date of recognition,
understood as the exchange rate for immediate delivery. Subsequent to initial recognition, the
following rules apply for the translation of balances denominated in foreign currencies into the
functional currency:
(i) Monetary assets and liabilities are translated at the closing exchange rate, which is the
average spot rate at reporting date.
(ii) Non-monetary items measured at historical cost are translated at the exchange rate at
the date of acquisition.
(iii) Non-monetary items measured at fair value are translated at the exchange rate at the
date when the fair value is determined.
(iv) Income and expenses are translated at the exchange rate at transaction date.
However, an average exchange rate for the period is used for all transactions during
the period, unless it has changed significantly. Depreciation is translated at the
exchange rate applied to the corresponding asset.
Exchange differences arising on the translation of receivables and payables denominated in
foreign currencies are generally recorded in the profit and loss account. However, the
exchange rate component of the revaluation of the non-monetary item is disclosed in the case
of exchange differences arising on such items measured at fair value, whose adjustment to
this value is recognised under “Other accumulated comprehensive income” as valuation
adjustments in net equity.
The exchange rates used by the Institute to translate balances denominated in the main
foreign currencies in which it operates into euros for the purpose of preparing the financial
statements are the market rates at 31 December 2024 and 2023 as published by the European
Central Bank at each date.
The net amount of exchange differences arising on the translation of receivables and payables
denominated in foreign currencies amounted to a gain of EUR 6,300 thousand at 31 December
2024 (loss of EUR 3,744 thousand at 31 December 2023) and are recognised under "Net
exchange differences" in the accompanying profit and loss account.
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2.5 Recognition of income and expenses
The most significant accounting policies used by the Institute to recognise its income and
expenses are summarised below.
2.5.1 Interest income and expenses, dividend and similar items
In general, interest income, interest expenses and similar items are recognised on an accrual
basis using the effective interest method as defined in Bank of Spain Circular 4/2017.
Dividends received from other companies are recognised as income upon the Institute's right
to receive them.
2.5.2 Commissions, fees and similar items
Income and expenses for commissions, fees and similar items, which should not be included
in the calculation of the effective interest rate on transactions and/or are not included in the
acquisition cost of financial assets or liabilities other than those classified at fair value through
profit or loss are recognised in the profit and loss account using criteria that vary according to
their nature. The most significant of these are:
- Those linked to the acquisition of financial assets and liabilities measured at fair value
through profit or loss, which are recognised in the profit and loss account at the time of
payment.
- Those arising from transactions or services that continue over time, which are
recognised in the profit and loss account over the course of said transactions or
services.
- Those relating to a single act, which are posted in the profit and loss account when
they are incurred.
2.5.3 Non-financial income and expenses
They are recognised on an accruals basis.
2.5.4 Collections and payments deferred over time
They are recognised for accounting purposes at the amount resulting from discounting the
expected cash flows at market rates.
2.6 Balance offsets
Only receivables and payables arising from transactions that are contractually or legally must
be settled on a net basis or are to be realised simultaneously on the asset side and then settled
on the liability side are offset and therefore presented on the balance sheet at their net amount.
2.7 Impairment of financial assets
The carrying amount of financial assets is generally adjusted by charging it to the profit and
loss account, provided that there is objective evidence that an impairment loss has occurred,
which happens:
- In the case of debt instruments, such as loans and debt securities, when an event
occurs after initial recognition or the combined effect of several events has a negative
impact on their future cash flows.
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- In the case of equity instruments, when an event occurs after initial recognition or the
combined effect of several events is such that the carrying amount cannot be
recovered.
As a general rule, the carrying amount of financial instruments is adjusted for impairment by
charging it to the profit and loss account for the period in which the impairment becomes
evident and the recovery of previously recognised impairment losses, if any, is recognised in
the profit and loss account for the period in which the impairment is reversed or reduced. If
the recovery of any recorded impairment amount be considered remote, it is removed from
the balance sheet, although the Institute may take the necessary actions to try to recover it
until its rights have been definitively extinguished due to the end of the statute of limitations,
forgiveness or other grounds.
Portfolios of debt instruments, guarantees granted and contingent commitments granted,
regardless of their holder, instrumentation or collateral, are analysed to determine the credit
risk to which the Institute is exposed and estimate the needs to hedge against impairment. For
the preparation of the financial statements, the Institute classifies its transactions according to
their credit risk, making a separate analysis of the insolvency risk attributable to the client and
the country risk to which they are exposed, if any.
The estimated future cash flows of a debt instrument are all the amounts, principal and
interest, that the Institute estimates it will earn over the life of the instrument. The estimate
considers all relevant information that is available at when preparing the financial statements
that provides information about the collectability of future contractual cash flows. In addition,
the estimate of future cash flows from collateralised instruments takes into account the cash
flows that would result from their realisation, less the costs required to obtain and subsequently
sell them, regardless of the likelihood of the collateral being realised.
In calculating the current value of estimated future cash flows, the discount rate used is the
original effective interest rate of the instrument, if its contractual rate is fixed, or the effective
interest rate at the reporting date determined according to the contract terms, if it is a variable
rate.
For debt instruments measured at amortised cost, the amount of impairment losses incurred
is equal to the negative difference between their carrying amount and the current value of their
estimated future cash flows, using as the discount rate the instrument’s original effective
interest rate, if its contractual rate is fixed, or the effective interest rate at the reporting date
determined according to the contract terms, if it is a variable rate. In the case of indexed debt
instruments, their market value may be used as a proxy, provided that it is sufficiently reliable
to be considered representative of the value that could be recovered by the Institute.
Objective evidence of impairment is determined individually for all significant debt instruments,
and individually or collectively for groups of debt instruments that are not individually
significant. Where a particular instrument cannot be included in any group of assets with
similar risk characteristics, it is solely analysed on an individual basis to determine whether it
is impaired and, if so, to estimate the impairment loss.
The collective assessment of a group of financial assets for the purpose of estimating
impairment losses is performed as follows:
- Debt instruments are included in groups that have similar credit risk characteristics,
indicative of the debtors' ability to pay all amounts, principal and interest, in accordance
with the contractual terms. The credit risk characteristics considered in grouping assets
are, among others, the type of instrument, the debtor's sector of activity, the
geographical area of activity, the type of collateral, the age of past-due amounts and
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any other factor that is relevant to the estimation of future cash flows.
- Future cash flows for each group of debt instruments are estimated according to the
Institute's historical loss record for instruments with credit risk characteristics similar to
those of the respective group, after the necessary adjustments to bring historical data
in line with current market conditions.
- The impairment loss for each group is the difference between the carrying amount of
all debt instruments in the group and the present value of their estimated future cash
flows.
Debt instruments not measured at fair value through profit or loss, the guarantees and
contingent commitments granted are classified according to the insolvency risk attributable to
the client or the transaction, in the categories defined by the applicable standard (Bank of
Spain Circular 4/2017). For debt instruments not classified as normal risk, specific allowances
for impairment are estimated on the basis of the criteria set out in the aforementioned Circular,
taking into account the age of the unpaid amounts, the collateral provided, the client’s
economic situation and, where applicable, that of the guarantors.
Similarly, these financial instruments are analysed to determine their credit risk on the basis
of country risk, which is understood to be the risk associated with clients resident in a given
country due to circumstances other than normal commercial risk.
In addition to the specific impairment hedges indicated above, the Institute hedges inherent
losses incurred on debt instruments not measured at fair value through profit or loss account
and contingent exposures classified as normal risk through a collective hedge, calculated on
the basis of the historical impairment record and other circumstances known at the time of
measurement that correspond to inherent losses incurred at the date of the financial
statements, calculated using statistical procedures, which are pending allocation to specific
transactions.
In this regard, the Institute has used the parameters established by the Bank of Spain, based
on its experience and the information it has on the sector, which determine the method and
amount to be used to hedge the inherent impairment losses incurred on debt instruments and
contingent risks classified as normal risk, which are periodically adjusted in accordance with
the evolution of the aforementioned data. This method for determining the coverage of
impairment losses is based on the application of percentages established in Annex 9 of Bank
of Spain Circular 4/2017 and its subsequent amendments, which vary according to the risk
classification of the financial instruments set out in the aforementioned Annex.
In general, for impaired debt instruments, impairment due to default is calculated by applying
the following percentages, depending on the transaction's risk segment and the age of the
past-due amounts, on the outstanding risk not covered by the amount to be regained from any
effective collateral that may exist, in accordance with the model provided by the Bank of Spain
based on the experience of the Spanish market:
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Over 90
days up to
6 months
Over 6
months
up to 9
months
Over 9
months up to
1 year
Over 1
year up to
15 months
Over 15
months up
to 18
months
Over 18
months up
to 21 months
Over 21
months
Non-financial corporations and sole
proprietors
Specialised financing
Construction and property devel
70
75
85
90
95
100
100
Civil works
55
65
70
80
95
100
100
Other specific financ
55
65
75
90
95
100
100
Non-specialised financing
Large companies
55
65
75
90
95
100
100
SMEs
65
70
75
85
90
95
100
Individual entrepreneurs
35
45
60
65
80
95
100
Households
Home purchase
Primary resid amnt < 80% guarantee
45
50
65
70
85
95
100
Primary residence amnt > 80%
guarantee
45
50
65
70
85
95
100
Non-primary residence
45
50
65
70
85
95
100
Consumer credit (incl. credit card debt)
55
65
80
85
95
100
100
Other purposes
55
65
80
85
95
100
100
The generic coverage for operations classified as normal risk shall be different from that
calculated for normal risk transaction under special surveillance, according to the following
percentages, and on the basis of the amount not covered by effective guarantees:
Normal
risk
Normal risk in special
surveillance
Non-financial corporations and sole
proprietors
Specialised financing
Construction and property devel
1.9
30.0
Civil works
2.0
18.8
Other specific financ
0.6
9.6
Non-specialised financing
Large companies
0.6
9.6
SMEs
1.1
17.8
Individual entrepreneurs
1.4
13.9
Households
Home purchase
Primary resid amnt < 80% guarantee
0.7
18.0
Primary residence amnt > 80%
guarantee
0.7
18.0
Non-primary residence
0.7
18.0
Consumer credit
1.8
20.2
Relating to: credit card debt
1.0
11.6
Other purposes
1.8
20.2
In the estimation of effective collateral for the purpose of hedging calculations, the following
estimated haircuts shall be applied to the reference value of such collateral:
TYPE OF SECURITY INTEREST
Discount on
reference value
(%)
Property guarantees (first encumbrance)
Finished buildings and building elements
Dwellings
30
Offices, commercial premises and multi-purpose
industrial spaces
40
Other
45
Urban land and land for development
40
Other real estate
45
Pledges of financial instruments
Money deposits
0
Other financial instruments with active market
10
Other financial instruments with no active market
20
Other security interests (e.g. second mortgages,
personal property)
50
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The Institute established the corresponding provisions at 31 December 2023 with the utmost
prudence and with the aim of strengthening its balance sheet, with a detailed analysis of each
borrower where deemed necessary, and taking into account the underlying uncertainties in
the financing due to the macroeconomic environment.
In the case of foreclosed real estate assets or assets received in payment of debts, the
following discounts shall be applied to the reference value for such assets for the purposes of
valuing any hedges that may apply:
TYPE OF PROPERTY FORECLOSED
Discount on
reference value
(%)
Finished buildings and building elements
Dwellings
25
Offices, commercial premises and multi-purpose
industrial spaces
30
Other
32
Urban land and land for development
35
Other real estate
40
The recognition in the profit and loss account of interest accruals based on contractual terms
is discontinued for all individually rated debt instruments and for those for which impairment
losses have been calculated collectively as having amounts past due in excess of three
months.
The amount of impairment losses incurred on debt and equity instruments included in
"Financial assets at fair value, through other comprehensive income", is equal to the positive
difference between their acquisition cost, net of any principal repayment, and their fair value
less any impairment losses previously recognised in the profit and loss account.
When there is objective evidence that the decline in fair value is due to impairment, unrealised
losses recognised directly in “Other accumulated comprehensive income” as valuation
adjustments in equity are recognised immediately in the profit-and-loss account. If all or part
of the impairment losses are subsequently recovered, the amount, in the case of debt
securities, is recognised in the profit and loss account for the period of recovery, while for
equity instruments, this is recognised in under “Other accumulated comprehensive income”
as net equity valuation adjustments.
In the case of debt and equity instruments classified under “Non-current assets held for sale”,
losses previously recognised in equity are considered to be realised and recognised in the
profit and loss account at the classification date.
In the case of investments in subsidiaries, jointly controlled entities and associates, the
Institute estimates the amount of impairment losses by comparing their recoverable amount
with their carrying amount. Such impairment losses are recognised in the profit-and-loss
account for the period in which they occur and subsequent recoveries are recognised in the
profit and loss account for their period of recovery.
Should the recovery of any recorded impairment amount be considered remote, it is removed
from the balance sheet, although the Institute may take the necessary actions to try to recover
it until its rights have been definitively extinguished due to the end of the statute of limitations,
forgiveness or other grounds.
2.8 Guarantees granted and provisions made thereon
A financial guarantee contract is a contract that requires the issuer to make specified
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payments to reimburse the creditor for the losses the latter incurs when a specified debtor
defaults on its payment obligation under the original or modified terms of a debt instrument,
regardless of its legal form, which may be a guarantee, financial collateral, insurance contract
or credit derivative, among others.
The issuer of these financial guarantee contracts recognises them under “Other financial
liabilities” at fair value plus the transaction costs that are directly attributable to their issue,
unless the contracts are issued by insurance entities.
At inception, unless there is evidence to the contrary, the fair value of financial guarantee
contracts issued to an unrelated third party in an arm's length transaction is the premium
received plus the present value of the cash flows to be received, if applicable, using an interest
rate similar to that of financial assets granted by the Institute with a similar term and risk.
Simultaneously, the present value of the future cash flows to be received is recognised as a
credit to the asset using the above interest rate.
Subsequent to the initial recognition, contracts are treated using the following criteria:
i) The value of fees or premiums receivable for financial guarantees is discounted by
recording the differences in the profit and-loss account as finance income.
(ii) The value of financial guarantee contracts that have not been classified as doubtful
is the amount initially recognised as a liability less the portion taken to the profit
and loss account on a straight-line basis over the expected life of the guarantee
or on another basis that more suitably reflects the perceived economic benefits
and risks of the guarantee.
The classification of a financial guarantee contract as doubtful shall imply the constitution of a
suitable hedge, included under the heading "Provisions for commitments and guarantees
given".
2.9 Accounting for leasing transactions
2.9.1 Financial leases
Financial leasing transactions are those in which all the risks and rewards incidental to
ownership of the leased asset are substantially transferred to the lessee.
When the Institute acts as lessor of an asset in a financial leasing transaction, the sum of the
present values of the amounts to be received from the lessee plus the guaranteed residual
value, usually the price to exercise the lessee's purchase option at the end of the lease, is
recognised as financing lent to third parties and is therefore included under "Loans and
receivables" in the balance sheet, in accordance with the nature of the lessee.
When the Institute acts as the lessee in a financial leasing transaction, it presents the cost of
the leased assets on the balance sheet, according to the nature of the leased asset, and,
simultaneously, a liability for the same amount (whichever of the following is lower: the fair
value of the leased asset or the sum of the current values of the amounts payable to the lessor,
plus the price to exercise the lessee's purchase option, if applicable). These assets are
depreciated using criteria similar to those applied to the Institute's tangible assets for own use
(Note 2.12).
In both cases, financial income and expenses arising from these contracts are credited and
charged, respectively, to "Interest income" and "Interest expense" in the profit and loss
account, using the effective interest rate method calculated according to the contents of Bank
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of Spain Circular 4/2017.
2.9.2 Operating leases
In operating leases, ownership of the leased asset and substantially all the risks and rewards
incidental to ownership remain with the lessor.
When the Institute acts as lessor under operating leases, the acquisition cost of the leased
assets is presented under "Tangible assets" either as "Investment property" or "Other assets
leased under operating leases", depending on the nature of the leased assets. These assets
are depreciated in accordance with the policies adopted for similar tangible assets for own
use and income from lease contracts is recognised in the profit and loss account on a straight-
line basis under "Other operating income".
When the Institute acts as lessee in operating lease transactions, it recognises a lease liability
for the current value of the lease payments to be made (fixed, variable, exercise of purchase
option and others), as the initial measurement of the contract, and a right-of-use asset
measured at cost.
2.10 Staff costs
2.10.1 Short-term remuneration
Short-term employee benefits are remunerations whose payment is made within twelve
months after the end of the financial year in which the employees render their services. These
remunerations are measured, without restatement, at the amount to be paid for the services
received, and are generally recorded as personnel expenses for the year and as a liability
accrual account for the difference between the total expense and the amount already paid.
2.10.2 Post-employment commitments
Pension commitments entered into by the Institute for its employees are included in the
Collective Bargaining Agreement in force and correspond to defined contribution
commitments.
The Institute's staff are members of the Plan de Pensiones del Sistema de Empleo de
Promoción Conjunta (Pension Plan of the Joint Promotion Employment System), promoted by
the Spanish Civil Service, regulated by the Consolidated Text of the Pension Plans and Funds
Regulation Act, approved by Royal Legislative Decree 1/2002 of 29 November and its
Regulations approved by Royal Decree 304/2004 of 20 February, and which is part of the
BBVA Empleo Doce pension fund, whose managing entity is Gestión de Previsión y
Pensiones, Entidad Gestora de Fondos de Pensiones, and depositary entity, BBVA.
As defined contribution commitments, the Institute has assumed an annual contribution for its
staff with over two years of service in the Administration at 1 May of the corresponding year,
regardless of whether they are career or interim civil servants, contract staff, temporary staff
or senior officials, which is calculated according to the following parameters:
• The occupational group to which the employee belongs.
• Seniority (understood as the number of 3-year periods of service of the civil servant,
regardless of the type of contract).
Amounts to be contributed will be those approved by the General State Budget Law for each
year, and no amount has been recorded as an expense under "Personnel expenses" in the
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accompanying profit and loss account at 31 December 2024 or 31 December 2023.
2.10.3 Death and disability and retirement awards
Commitments to employees for retirement benefits and pre-retirement death and disability
benefits and similar items are estimated by calculating the present value of their legal and
implicit obligations at the date of the financial statements, after deducting any actuarial losses
less any actuarial gains, unrecognised past service costs and the fair value of the assets
covering the commitments, including insurance policies. All past service costs and actuarial
gains and losses are recognised immediately.
In this respect, at 31 December 2024, the Institute has a provision for post-employment
commitments of EUR 910 thousand (EUR 836 thousand at 31 December 2023).
2.10.4 Severance payments
Severance payments are recognised under "Personnel expenses" in the accompanying profit
and loss accounts with a credit to "Provisions for pensions and similar obligations" under
"Provisions" in the accompanying balance sheets only when the Institute is demonstrably
committed to terminating the employment of an employee or group of employees before their
normal retirement date, or to pay severance payments as a result of an offer made to
encourage voluntary redundancy by employees.
At 31 December 2024 and 2023, the Institute has not recognised any provisions in this respect
as there is no plan or agreement requiring such a provision.
2.11 Tax on profits
Corporate income tax is treated as an expense and is generally recorded under "Income tax
expense or income from continuing operations" in the profit and loss account.
The Tax on Profit expense for the year is calculated as the tax payable in respect of the taxable
profit for the year, adjusted by the amount of changes during the year in recorded assets and
liabilities arising from temporary differences, tax credits and tax relief and any tax loss
carryforwards (Note 23).
The Institute considers that a temporary difference exists when there is a difference between
the carrying amount and the tax base of an asset or liability. The tax base of an asset or liability
is the amount attributed to it for tax purposes. A taxable temporary difference is one that will
generate a future obligation for the Institute to make a payment to the relevant authorities. A
deductible temporary difference is one that will give rise to a right of reimbursement or a lower
payment to be made by the Institute to the relevant administration in the future.
Credits for deductions and allowances and credits for tax loss carryforwards are amounts
which, having produced or carried out the activity or obtained the result to generate their
entitlement, are not applied for tax purposes in the corresponding tax return until the conditions
established in the tax regulations to do so have been met, and the Institute considers it likely
to be applied in future tax years.
Current tax assets and liabilities are those taxes that are expected to be recoverable or
payable from the tax authorities within twelve months from the date of recognition. Deferred
tax assets and deferred tax liabilities are amounts expected to be recovered or paid,
respectively, from the related tax authorities in future periods.
Deferred tax liabilities are recognised for all taxable temporary differences. However, there
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are no deferred tax liabilities arising from the recognition of goodwill.
The Institute only recognises deferred tax assets arising from deductible temporary
differences, tax credits, tax relief or tax loss carryforwards if the following conditions are met:
- Deferred tax assets are only recognised if it is considered likely for the Institute to have
sufficient future taxable profit to be utilised against the applicable earnings.
- In the case of deferred tax assets arising from tax loss carryforwards, these have arisen
from identified causes that are unlikely to recur.
Deferred tax assets and liabilities are not recognised when an initially recorded asset or liability
does not arise in a business combination and, at the time of recognition, has not affected either
accounting or taxable profit or loss.
At the end of each reporting period, the deferred tax assets and liabilities are reviewed to
ensure that they are still valid, and the appropriate adjustments are made in accordance with
the results of the analyses performed.
2.12 Tangible assets
2.12.1 Property, plant and equipment for own use
Property, plant and equipment for own use include those assets, whether owned or acquired
under finance leases, which are held by the Institute for current or future use for administrative
purposes or for the production or supply of goods and which are expected to be used for more
than one financial year. This category includes tangible assets received by the Institute for the
full or partial settlement of financial assets representing receivables from third parties and
those which are intended to be put to their own continued use, among others. Property, plant
and equipment for own use are stated in the balance sheet at their acquisition cost, which is
the fair value of any consideration given plus all cash payments made or committed, less
accumulated depreciation and, where applicable, estimated losses resulting from comparing
the net value of each item with its corresponding recoverable amount.
For these purposes, the acquisition cost of foreclosed assets that become part of the Institute's
property, plant and equipment for own use is assimilated to the net amount of the financial
assets delivered in exchange for their foreclosure.
Depreciation is calculated using the straight-line method on the basis of the acquisition cost
of the assets less their residual value, it being understood that the land on which the buildings
and other structures stand has an indefinite life and is therefore not depreciated.
The annual depreciation charge for tangible assets is recognised under "Depreciation -
Tangible assets" in the profit and loss account and is basically equivalent to the following
depreciation rates (determined on the basis of the average years of estimated service life of
the various assets):
Annual percentage
Real estate
2%
Facilities
4 to 15%
Office furniture and equipment
10%
Information processing equipment
25%
Transport elements
16%
At the end of each reporting period, the Institute assesses whether there is any internal or
external indication that the net carrying amount of its property, plant and equipment exceeds
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its recoverable amount, in which case it reduces the the asset’ carrying amount to its
recoverable amount and adjusts future depreciation charges in proportion to the adjusted
carrying amount and its new remaining service life, if a re-estimate were necessary. This
reduction in the carrying amount of property, plant and equipment for own use is charged, if
necessary, to "Impairment of non-financial assets" in the profit and loss account.
Similarly, when there is an indication of a recovery in the value of an impaired tangible asset,
the Institute records the reversal of the impairment loss recognised in prior periods with a
corresponding credit to "Impairment of non-financial assets" in the profit and loss account and
adjusts future depreciation charges accordingly. Under no circumstances may the reversal of
an impairment loss on an asset increase its carrying amount above that which it would have
had if no impairment loss had been recognised in prior periods.
The estimated service life of property, plant and equipment for own use are reviewed at least
once a year in order to detect significant changes therein which, if any, are adjusted by means
of the corresponding adjustment charged to the profit and loss account for future years for
depreciation on the basis of new service life.
Upkeep and maintenance expenses on property, plant and equipment for own use are
charged to "Other administrative expenses" in the profit and loss account in the year in which
they are incurred. Finance costs incurred as a result of financing property, plant and equipment
for own use are posted in the profit and loss account on an accruals basis and do not form
part of the asset acquisition cost.
2.12.2 Investment property
“Investment property" in the balance sheet includes the net values of land, buildings and other
structures which are held either for rental purposes or for capital appreciation as a result of
future increases in their respective market prices.
The criteria applied for the recognition of the acquisition cost of investment property, for its
depreciation, for the estimation of its respective service life and for the recording of possible
impairment losses are the same as those described for tangible assets for own use (Note
2.12.1).
2.13 Intangible assets
Intangible assets are identifiable non-monetary assets, albeit without physical substance, that
arise as a result of a legal transaction or have been developed internally by the Institute. Only
intangible assets whose cost can be estimated in a reasonably objective manner and from
which it is probable that future economic benefits will flow to the Institute are recognised.
Intangible assets, other than goodwill, are stated in the balance sheet at acquisition or
production cost, net of accumulated amortisation and any impairment losses.
Intangible assets may have an "indefinite service life" when, based on an analysis of all
relevant factors, it is concluded that there is no foreseeable limit to the period over which the
asset is expected to generate net cash inflows for the Institute, or a "finite service life" in all
other cases.
Intangible assets with an indefinite service life do not depreciate, although at each balance
sheet date the Institute reviews their respective remaining service life to ensure that they are
still indefinite or, if not, to proceed accordingly.
Intangible assets with a finite life depreciate over their life, applying similar criteria to those
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adopted for the depreciation of tangible assets. The annual depreciation of intangible assets
with a finite service life is recognised under "Depreciation - Intangible assets" in the
accompanying profit and loss account.
Intangible assets with an indefinite service life and those with a finite service life are
recognised by the Institute according to any impairment loss on the carrying amount of these
assets with a balancing entry under "Impairment of non-financial assets" in the profit and loss
account. The criteria for recognising impairment losses on these assets and, where applicable,
recoveries of impairment losses recognised in prior years are similar to those applied to
property, plant and equipment for own use (Note 2.12.1).
2.14 Provisions and contingent liabilities
In preparing the Institute's financial statements, a distinction is made between:
- Provisions: credit balances covering current obligations at the date of the balance
sheet that arise from past events that could give rise to a loss for the entities, which
are considered likely to occur, whose nature is certain, but whose amount and/or time
of derecognition is uncertain.
- Contingent liabilities: potential obligations arising from past events, the realisation of
which is conditional on the occurrence or non-occurrence of one or more future events
beyond the control of the Institute.
The Institute's financial statements include all material provisions considered more likely than
not to occur and whose liability will have to be settled. Contingent liabilities are not recognised
in the financial statements, but are disclosed in accordance with the requirements of Bank of
Spain Circular 4/2017 (Note 19).
Provisions are quantified on the basis of the best information available on the consequences
of the event giving rise to them. They are re-estimated at each balance sheet closing date and
are used to meet the specific obligations for which they were originally recognised and are
reversed, in full or in part, when these obligations cease to exist or are less likely.
At year-end 2024 and 2023, various legal proceedings and claims were in progress against
the Institute arising from its ordinary course of business. ICO's legal advisors have come to
the understanding that the conclusion of these proceedings and claims will not have a material
effect, above and beyond where included as a provision, if applicable, in the financial
statements for the years in which they are concluded.
Provisions considered necessary in accordance with the above criteria are entered into
accounts with a charge or credit to "Provisions or reversal of provisions" in the profit and loss
account.
2.15 Cash flow statements
In cash flow statements, the following expressions are used in the following senses:
- Cash flows: inflows and outflows of cash and cash equivalents, which are short-term,
highly liquid investments with low risk of value changes.
- Operating activities: typical activities of credit institutions, as well as other activities that
cannot be classified as investment or financing activities.
- Investing activities: the acquisition and disposal of long-term assets and other
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investments not included in cash and cash equivalents.
- Financing activities: activities that result in changes in the size and composition of
equity and liabilities that are not part of operating activities.
2.16 Non-current assets held for sale and liabilities associated with non-current
assets held for sale
The heading “Non-current assets classified as held for sale” in the accompanying balance
sheet includes assets of all types that are not considered operating activities but whose
amounts are expected to be realised or recovered in more than one year from the date of
these financial statements.
When, exceptionally, the sale is expected to occur in a period exceeding one year, the Institute
restates the value of the sale cost, recording the increase in value due to the passage of time
under "Gains (losses) on disposal of assets not classified as discontinued operations" in the
profit and loss account.
Therefore, the recovery of the carrying amount of these items, which may be of a financial or
non-financial nature, is expected to occur through the price obtained on disposal, rather than
through its ongoing use.
Specifically, real estate and other non-current assets received by the Institute in full or partial
satisfaction of its debtors' payment obligations are considered non-current assets held for sale,
unless the Institute has decided to make ongoing use of these assets.
Symmetrically, the heading "Liabilities associated with non-current assets held for sale"
includes the balances payable associated with the Institute's disposal groups or discontinued
operations.
In general, assets classified as non-current assets held for sale are measured at the lower of
their carrying amount at the time they are considered as such and their fair value, net of
estimated selling costs. As long as they remain classified in this category, tangible and
intangible assets that are depreciable by their nature are not depreciated.
In the event that the carrying amount of the assets exceeds the fair value of the assets, net of
selling costs, the Institute adjusts the carrying amount of the assets by the amount of this
excess, with a balancing entry under "Gains (Losses) on non-current assets and disposal
groups classified as held for sale not qualifying as discontinued operations" in the
accompanying profit and loss account. If there are subsequent increases in the assets’ fair
value, the Institute reverses the losses previously recognised by increasing the carrying
amount of the assets up to the limit of the amount prior to their potential impairment, with a
balancing entry under the previously indicated heading. Gains (losses) from the sale of non-
current assets held for sale are presented under "Gains (losses) on non-current assets and
disposal groups classified as held for sale not qualifying as discontinued operations" in the
profit and loss account.
Notwithstanding the above, financial assets, assets arising from employee benefits, deferred
tax assets and insurance contract assets that are part of a disposal group or a discontinued
operation are not measured in accordance with the above paragraphs, but in accordance with
the principles and rules applicable to these items, as explained in Note 2 above.
2.17 Business combinations
Business combinations resulting in the acquisition of an entity that retains its legal form
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separate from the Institute are recognised in these financial statements at the acquisition cost
under "Investments in subsidiaries, joint ventures and investees" in the balance sheet (Note
2.1).
3. CUSTOMER SERVICE
On 24 July 2004, Order Eco 734 came into force on the functioning of the Customer Service
Department, which aims to regulate the Customer Service Departments and the Customer
Ombudsman of banks and financial institutions. In relation to this service, and although ICO
is not obliged to have a customer service department, the Institute has been dealing with all
the claims and complaints it receives, basically in relation to the operations inherent to its
activity as a financial agency. In order to achieve the highest quality in the services provided,
in December 2006 the Institute decided to create a unit responsible for centralising the
reception, processing, attention and response to all complaints and suggestions from ICO
suppliers, users and customers.
A total of 122 complaints were received in 2024 (140 in 2023), which were responded to in an
average of 1.9 working days (much less than the maximum period of 15 working days set out
in the procedure). Of the total, 40% are related to the marketing by financial institutions of the
Guarantee Facility for the purchase of first homes by young people and families with
dependent minors. 16% are related to operations under the COVID-19 and Ukraine Guarantee
Facilities, so many of them were passed on to the financial institutions. 3% mentioned
difficulties in applying for the DANA Guarantee Facility at their financial institutions. Another
3% came from holders or guarantors who had defaulted on ICO Directo payments. 34% were
related to the other Mediation Facilities and 4% to other issues unrelated to the products or
services managed by ICO.
4. DISTRIBUTION OF RESULTS
The balance for the year 2024 amounted to EUR 239,796 thousand and, at the date of
preparation of these Financial Statements, was pending distribution by the Ministry of
Economy, Trade and Enterprise. Such distribution shall be in accordance with the provisions
of its Articles of Association.
5. RISK EXPOSURE AND OTHER INFORMATION
5.1. Risk. General aspects
Risk is an inherent part of financial activity. Its proper measurement, management and control
should contribute to the achievement of healthy margins and the maintenance of the bank's
solvency, which is the basis for the confidence held by clients, investors and employees.
Without attempting to make an exhaustive classification of the risks borne by a financial
institution, they can basically be classified into four categories: Liquidity Risk, Market Risk,
Credit Risk and Operational Risk.
• Liquidity Risk: This risk is incurred as a result of a lack of sufficient liquid resources
with which to meet its obligations, either due to a mismatch in the maturity structure of
assets and liabilities, or due to an exceptional market crisis.
• Market Risk: This includes the impact on the profit and loss account and on the value
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of the entity's equity due to adverse variations in relevant financial variables, such as
the interest rates in the national currency or other currencies, exchange rates, share
prices, etc. This risk can be further subdivided into two main groups: Balance sheet or
structural market risk and market risk on trading portfolios.
• Credit Risk: This refers to the risk of not fully recovering the principal and interest on
investments within the timeframe foreseen. This type of risk can also be broken into
two main groups: Bank counterparty risks and credit risk on investment transactions.
• Operational Risk: This is incurred as a result of administrative errors, internal
processes, accounting, IT, legal or external risks due to unforeseen circumstances.
ICO, as a credit institution, is exposed to this set of risks that must be identified, measured
and monitored in order to be managed effectively. This is done in accordance with the Risk
Policy Manual approved by its General Council, a document that compiles different
methodologies, applicable regulations, procedures and organisational structure.
5.2. Risks. Organisational structure
In order to cover all areas of risk, Instituto de Crédito Oficial, within its organisational structure
(according to Organisational Circular 2/2024 of 18 September 2024 of the Chairman’s Office),
has created specialised units reporting to the Directorate of Risk Management, which reports
to the Directorate General for Financing, Risks and State Funds.
The Directorate of Risk Management is responsible for designing and proposing internal risk
policies and the methodologies for analysing, managing and monitoring the Institute's financial
and credit risks necessary to assess their eligibility and control, and is in charge of supervising
ICO's compliance with national and international risk standards. The specialised Risk units
within the Directorate of Risk Management are the ALM Management and General Risk
Control Department and the Risk Policy Area, each with specific functions.
The main functions of the ALM Management and General Risk Control Department are as
follows:
• The management and control of the financial risks of ICO's balance sheet, with the aim
of ensuring that the Institute's balance sheet is adequately positioned within the
established limits, including proposing better management and coverage procedures.
• The development and control of the pricing policy relating to ICO's lending activity
• Management and control of counterparty risk with financial intermediaries
It reports to the Balance Sheet Management and Financial Risk Control Area and the Banking
and Financial Intermediaries Risk Area.
The main functions of the Balance Sheet Management and Financial Risk Control Area are
as follows:
• Calculation, management and control of financial risks on the ICO balance sheet.
Liquidity risk, interest rate risk and foreign exchange rate risk, including simulations of the
indicators and ratios that measure them.
• Preparation and proposal of methodologies for measuring financial risks, as well as
drafting of regulatory reports related to the above risks.
• Management and control of the pricing policy relating to ICO's lending activity, with
the development and proposal of applicable methodologies, as well as the maintenance of the
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Risk Adjusted Return (RAR) tool and methodology.
• Monitoring and development of the applicable indicators for the RAF.
• Analysis of securitisation credit risk and portfolio guarantee operations through the
securitisation tool.
The main functions of the Banking and Financial Intermediaries Risk Area are as follows:
• Development and monitoring of the counterparty limits allocation policy for financial
intermediaries and analysis of financial institutions.
• Administration and control of counterparty limits for mediation and treasury
operations.
• Counterparty risk management for treasury operations.
• Calculation of CVA and add-ons, parameters related to counterparty risk.
• Prepare regulatory reports on large bank risks.
The main functions of the Risk Policy Area are as follows:
• Defining and promoting the policies and methodologies used in credit risk admission and
monitoring in individual and standardised direct operations and new products, as well as
verifying the compliance with these guidelines in the risk assessment of operations
utilising ICO's various financial instruments.
▪ Development of proposed credit risk assessment models and their integration of ESG
risks.
▪ Preparation of proposed methodologies for measuring financial risks and the annual
preparation of the IACL, RAF and Risk Map in the areas of its competence.
In short, ICO has at its disposal a team of professionals specialised in each type of risk and
with the responsibility inherent to their function, who act in accordance with the guiding
principles on risk, the current Risk Policy Manual and existing internal procedures.
5.3 Liquidity risk at ICO
Liquidity risk is defined as the inability of an institution to meet its payment obligations due
to a lack of sufficient liquid resources or, in order to meet such obligations, it is forced to
raise funds or liquidate assets under particularly burdensome conditions.
ICO’s management and control of liquidity risk adheres to the following principles, which
are in line with regulatory requirements.
▪ Involvement and participation of senior management: The management and
control of liquidity risk is a key element for the Institute’s executive staff and
administration, through a reporting and information system that ensures that
the governing bodies and the Board regularly have all the necessary
information to make decisions and supervise this risk.
▪ Quality of information: Reliable, rapid and quality information is essential for
sound decision-making. To this end, the technological developments carried
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out and those underway as part of the 2024-2027 Digitalisation Plan are
aimed at making information gathering more efficient and ensuring its
quality.
▪ Forward looking approach: This approach aims to detect risks in advance by
carrying out periodic simulations also taking into account activity forecasts.
▪ Prudent management: Beyond compliance with regulatory ratios, the
internally established limits and warning signals are sufficiently broad to
ensure a prudent state of liquidity, without forgetting the associated
profitability or cost, and actively managing to mitigate the associated risk and
optimise liquidity.
▪ Planning: To facilitate the obtaining of the necessary resources to cover the
commitments undertaken and the planned activity. In this respect, the
Financing Plan is approved annually by the General Council.
Continuing with the previous section, ICO's own idiosyncrasies set it apart from other
financial institutions and the definition of its liquidity management procedures:
▪ According to its Articles of Association, approved by Royal Decree 706/1999
of 30 April, ICO is not authorised to raise funds from the general public
(Article 24.7). ICO's financial planning comes mainly from issues on
international and domestic financial markets, which enjoy the direct, explicit,
irrevocable and unconditional guarantee of the Spanish State vis-à-vis third
parties (Article 24.2).
▪ Having a single operational headquarters, with no domestic or foreign
branches or subsidiaries, facilitates operational control and liquidity
monitoring.
▪ ICO, as a State Financing Agency, is guaranteed by the Kingdom of Spain
in its issues, as mentioned above, which in terms of credit risk equates it
with Spanish risk and, therefore, the liquidity risk due to market collapse is
lower than in other entities.
▪ It also highlights the possibility of obtaining resources through contributions
from the State or other public entities, companies and associations that may
contribute to the financing of its activity, as indicated in RDL 12/1995 of 28
December, on urgent budgetary, tax and financial measures.
All of the above make ICO's liquidity management different in comparison to most credit
institutions.
In general, there is no specific capital requirement for liquidity risk beyond a series of rules of
conduct to be followed (qualitative requirements) contained in Rule Fifty-one of the sixth
chapter on risk management in Circular 2/2016, which also mentions the need to report the
actions carried out in the capital self-assessment and supervisory review process contained
in Chapter 5.
In this regard, the Capital and Liquidity Self-Assessment Report (IACL) is prepared annually
and submitted to the Bank of Spain as part of the supervisory review and evaluation process
(SREP).
ICO has a well-defined organisational structure responsible for the reporting, monitoring,
management and control of liquidity risk. The flow of information circulates from the competent
units of the Directorate of Risk Management to the Council via the necessary Committees
(COAP and/or COPER), adapting the detail of this information to the needs of each case.

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Within a prudent framework for liquidity risk management, a structure of limits and warning
signals has been defined, which are approved by the Council and then integrated within the
institution's Risk Appetite Framework.
ICO uses the liquidity gap and the liquidity buffer as the main internal metrics for managing
and controlling balance sheet liquidity risk. In addition, ICO takes into account the regulatory
LCR and NSFR ratios.
Key liquidity risk metrics
Internal metrics: Liquidity gap
ICO's liquidity management is based on an analysis of the difference between the inflows and
outflows generated by the contractual maturities of the operations on its balance sheet
(liquidity gap) and the flows generated by activity forecasts. This analysis provides the
necessary information on the volume of funds that will need to be raised, using the various
sources of funding available to the institution.
This liquidity gap provides information on the mismatches between the daily inflows and
outflows of all on- and off-balance sheet items.
Liquidity is monitored on a daily basis for a period of at least 12 months. This monitoring and
control of the established limits is carried out on a weekly basis and also at the end of each
month, with a horizon of up to one week, one month, three months and six months.
As indicated above, ICO has established quantitative limits and warning signals that enable it
to anticipate possible liquidity stress situations.
In addition, the liquidity gap analysis is extended at least monthly to cover the entire life of the
balance sheet in order to keep a balance in these gaps.
Internal metrics: Liquidity buffer
In addition, the Institute maintains a buffer of high-quality liquid assets that would allow it, if
necessary, to obtain immediate liquidity by discounting them at the European Central Bank.
The balance of assets available for use by the Institute as a liquidity buffer has sufficient
capacity to cover its negative liquidity gaps, which serves two purposes:
- Provide flexibility in planning the volume and timing of fundraising to cover liquidity
gaps.
- Safety buffer to be able to cope with possible tensions or crisis situations that could
occur in the markets.
There is an internal requirement to hold a portfolio containing bonds of the Kingdom of Spain
or Spanish-backed bonds for an amount that at least covers the limit on the accumulated
three-month liquidity gap.
Information on liquidity gaps and liquid asset buffer
The following tables show a comparison of liquidity inflows and outflows at different maturities
(partial and cumulative liquidity gaps). In the case of inflows and outflows in currencies other
than Euro, their countervalue in that currency has been included. It also includes the evolution
of the liquid asset buffer with more capital, and its level of coverage of liquidity gaps at different
maturities.

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With respect to the information collected in the previous year, it has been adjusted to include
level 2A and 2B assets (according to the Basel Committee on Banking Supervision
nomenclature) as highly liquid assets, as well as the standing deposit facility, which was
considered under the inflow heading. These changes were made in order to bring the
information submitted closer to the regulatory reporting of liquidity risk.
At 31 December 2024 (thousands of euros):
Up to 1 month
1-3 months
3-6 months
6-12 months
1-2 years
2-5 years
Over 5 years
Inflows conv. euro
3,243,069
3,182,605
3,522,491
6,503,741
8,586,246
15,640,930
8,683,276
Outflows conv. euro
(2,966,550)
(4,402,672)
(4,148,177)
(7,977,317)
(11,132,133)
(9,104,795)
(8,057,378)
Partial liquidity gaps
276,519
(1,220,067)
(625,686)
(1,473,576)
(2,545,887)
6,536,135
625,898
Cumulative liquidity gaps
276,519
(943,548)
(1,569,234)
(3,042,810)
(5,588,697)
947,438
1,573,336
Highly liquid asset buffer
8,544,011
9,027,381
9,195,895
8,683,796
7,791,079
4,231,048
2,574,296
Difference accumulated
negative gaps / buffer
8,820,530
8,083,833
7,626,661
5,640,986
2,202,382
5,178,486
4,147,632
% buffer coverage over
accumulated negative gaps
N/A
957%
586%
285%
139%
N/A
N/A
At 31 December 2023 (thousands of euros):
Up to 1 month
1-3 months
3-6 months
6-12 months
1-2 years
2-5 years
Over 5 years
Inflows conv. euro
3,288,010
3,548,137
3,234,221
6,097,740
5,055,285
12,711,850
7,584,485
Outflows conv. euro
-2,855,834
-6,119,248
-4,045,038
-7,339,322
-4,429,624
-8,080,447
-4,988,425
Partial liquidity gaps
432,176
-2,571,111
-810,817
-1,241,582
625,661
4,631,403
2,596,061
Cumulative liquidity gaps
432,176
-2,138,934
-2,949,751
-4,191,333
-3,565,671
1,065,731
3,661,792
Highly liquid asset buffer
6,227,052
6,725,674
7,208,024
7,383,887
6,790,765
3,082,761
2,065,760
Difference accumulated
negative gaps / buffer
6,659,228
4,586,740
4,258,273
3,192,554
3,225,093
4,148,492
5,727,552
% buffer coverage over
accumulated negative gaps
N/A
314%
244%
176%
190%
N/A
N/A
As can be seen in the tables above, the accumulated negative liquidity gaps are more than
covered by the available liquid asset buffer.

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Regulatory metrics: LCR and NSFR ratio
In relation to the liquidity coverage ratio, the table below shows the quarterly averages of the
liquidity coverage ratio (LCR) based on month-end observations over the previous twelve
months, indicating each quarter of 2024 with the average total liquid assets and the average
net liquidity outflows, liquidity outflows and liquidity inflows.
LIQUIDITY COVERAGE RATIO (LCR) 2024
Quarterly average (in % and thousands of euros)
1T
2T
3T
4T
LCR RATIO
376.80%
595.43%
351.04%
519.05%
TOTAL LIQUID ASSETS
5,698,796
6,779,612
6,463,320
8,893,326
NET LIQUIDITY OUTFLOWS
1,537,542
1,291,957
1,882,742
2,316,150
Liquidity outflows
4,354,475
4,171,121
4,462,383
5,847,326
Liquidity inflows
2,816,933
2,879,165
2,579,641
3,531,176
Finally, the table below contains information on the net stable funding ratio (NSFR) at the end
of each calendar quarter of 2024, which also reflects the stable funding available at the end
of each quarter and the funding required at the same dates.
NET STABLE FUNDING RATIO (NSFR) 2024
Quarterly average (in % and thousands of euros)
1T
2T
3T
4T
NSFR RATIO
117.17%
108.58%
113.21%
124.55%
STABLE FUNDING AVAILABLE
23,804,184
23,634,104
25,354,593
27,828,661
STABLE FUNDING REQUIRED
20,315,615
21,765,575
22,396,773
22,342,600
Maturity analysis of traded and hedging financial derivatives
The contractual maturities of derivatives at 31 December 2024 and 2023 considered important
to understanding the Institute's cash flow schedule are presented below by notional amount
and are entered into accounts as financial assets and liabilities. These exclude derivatives
embedded in hybrid financial instruments and loan commitments, which are considered to be
financial derivatives because they can be settled by offset, in cash or with another financial
asset:
At 31 December 2024:
Thousands of euros
Up to 1 year
From 1 to 5
years
From 6 to 10
years
From 11 to
15 years
From 16
to 20
years
Total
Trading derivatives
-
117,913
139,529
50 006
-
307,448
-Of which: credit
commitments regarded as
derivatives
Hedging derivatives
7,579,801
10,406,889
3,153,524
590,771
-
21,730,985
7,579,801
10,524,802
3,293,053
640,777
-
22,038,433

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At 31 December 2023:
Thousands of euros
Up to 1 year
From 1 to 5
years
From 6 to 10
years
From 11 to
15 years
From 16 to
20 years
Total
Trading derivatives
88,305
165,158
-
83,280
-
336,743
-Of which: credit
commitments regarded as
derivatives
Hedging derivatives
7,976,615
4,694,444
2,634,891
5,426
-
15,311,375
8,064,920
4,859,602
2,634,891
88,706
-
15,648,118
In relation to the information indicated in the tables above, it should be noted that:
▪ When a counterparty can choose when an amount is to be paid, the derivative is
allocated in the first period in which it can demand payment from the Institute;
▪ The amounts presented in the tables above correspond to the undiscounted
contractual amounts. In this respect, interest rate swaps are presented at their net
amount if they are settled by offset; loan commitments considered as derivatives are
presented at their gross amount; other financial derivatives are presented at their
contractual amounts to be exchanged if they are not settled by offset;
▪ For those derivatives whose amount is not contractually fixed at the balance sheet
date, e.g. because the amount depends on the performance of a certain index, the
remaining maturity considered for classification purposes in the above tables has been
determined by considering the conditions that existed at 31 December 2024 and 2023,
respectively.
Planning
In addition to the daily management and monitoring of liquidity risk, each year the General
Council approves the Financing Plan for the current year and its projections for the following
two years, the purpose of which is to establish the criteria and action plans to be implemented
during the year to obtain the financial resources necessary to meet the payment obligations
contracted by the ICO Group, as well as to implement the investment plan envisaged in the
management budgets and future action plans.
This plan includes a policy to diversify the basic sources of financing in order to minimise risk.
Liquidity contingency plan
Similarly, there is a Liquidity Contingency Plan, approved by the General Council on 27
February 2018, which includes early-warning management mechanisms to detect potential
liquidity needs in which specific action is required to raise funds in the markets where ICO
operates. The established indicators fall into two categories, liquidity gap indicators and
market alert indicators. It also establishes an order of priority as a reference when resorting to
sources of funding in stress scenarios.
This Contingency Plan is reviewed and updated annually, the latest version being the one
presented at the Assets and Liabilities Committee (ALCO) on 18 September 2024.

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5.4. Market risk in ICO
As indicated above, two main groups can be distinguished within this risk: Balance sheet or
structural market risk and portfolio risk. As an internal policy, ICO currently tries to minimise
its trading portfolios, maintaining only those which, in accordance with current accounting
regulations, cannot be classified as hedging or investment portfolios. Therefore, with regard
to ICO’s market risk, it stems almost exclusively from its structural balance sheet risk.
1) Two basic criteria emerge from the Institute’s exposure to interest and exchange rate
changes: Profitability and Solvency:
Profitability: The relevant variable is the Net Interest Margin or Financial Margin.
Solvency: An entity's capital is the main guarantee vis-à-vis its lenders. The value of
this capital or equity should be the main criterion for measuring solvency.
Under these considerations, ICO has implemented a market risk measurement system
based on three pillars: a) Calculation of the sensitivity of the annual Financial Margin.
b) Calculation of the sensitivity of the Net Asset Value and c) Calculation of the "Value
at Risk" of hypothetical trading portfolios, if any.
2) Methodology. The methodology used to measure balance sheet risks, in terms of
Financial Margin and Net Asset Value, is based on the technique of simulating the
effects of changes to the risk factors (interest rates and exchange rates) on these
aggregates.
In the case of “Value at Risk”, the methodology will be determined by the type of
portfolio involved and may be based on a parametric, historical simulation or Monte
Carlo methodology.
3) The degree of risk. The decision on the degree of risk assumed by ICO is the
responsibility of Senior Management, which, at the proposal of the Directorate of Risk
Management, approves the applicable limits. These limits are reviewed periodically.
For the purposes of establishing a limit to the sensitivity of the Financial Margin, this
will be estimated according to the implicit rates calculated on the market curve and the
other curve where increases or decreases of +/- 200 basis points have been applied,
applying a floor of -1% in the below-margin scenario. The difference between the two
calculations, in absolute value, shall be the estimated sensitivity, whose amount may
not entail a decrease in the simulated Financial Margin of more than 35% of the Gross
Margin, provided that it does not exceed 65% of the Financial Margin established in
the annual Budget. In any case, a EUR 35 million reduction will be tolerated.
To determine the sensitivity of the net interest margin to exchange rate movements in
the Euro/US Dollar and Euro/Pound Sterling currencies, movements of +/- 10% will be
assumed.
The exchange rate risk may in no case exceed 25% of the overall limit established for
the Financial Margin.
As a result of applying these movements of +/- 200 basis points, with the
aforementioned adjustments to interest rate movements, the sensitivity of the ICO's
net interest margin at 31 December 2024 was EUR -24.48 million in total, with the
following distribution: EUR -17.21 million from the euro balance, EUR -3.16 million from
the US dollar balance and EUR -4.10 million from the pound sterling balance. By
exchange rate (with movements of +/- 10% in USD/EUR and GBP/EUR exchange
rates), it stood at EUR -3.06 million in dollars and EUR -0.64 million in pound sterling.

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The total sensitivity of ICO's Financial Margin at 31 December 2023 was EUR -53.11
million, distributed as follows: EUR -49.83 million from the euro balance, EUR -1.19
million from the US dollar balance and EUR -0.24 million from the pound sterling
balance. By exchange rate (with movements of +/- 10% in USD/EUR and GBP/EUR
exchange rates), it stood at EUR -1.34 million in dollars and EUR -0.52 million in pound
sterling.
For the purposes of setting a limit on the sensitivity of the Net Asset Value, the current
values of our balance sheet will be calculated using a market curve and another curve
where +/- 200 basis point increases or decreases have been applied with a floor, in the
scenario of falling rates, of -1% for immediate maturities, a floor that will increase by 5
basis points per year, until reaching 0% for maturities of 20 years or more. This floor is
an absolute floor applied to the resulting yield curve after the shift. The difference
between the two values will be considered as the sensitivity of the Net Asset Value of
our balance sheet in absolute value. The percentage (%) that this variation represents
of the Net Asset Value may not represent a decrease above 10% of the estimated Net
Asset Value.
To determine the sensitivity of the Net Asset Value to exchange rate movements in the
Euro/US Dollar and Euro/Pound Sterling currencies, movements of +/- 10% will be
assumed
At 31 December 2024, ICO's Net Asset Value sensitivity values stood at -7.60% of the
same in aggregate value with the following balance distribution: -7.07% for the euro
interest rate, -0.29% for the US dollar and -0.04% for the pound sterling. By exchange
rate, the dollar would show a sensitivity of -0.18% and the pound sterling -0.03%.
At 31 December 2023, ICO's Net Asset Value sensitivity values were -5.75% with the
following balance distribution: -5.52% for the euro interest rate, -0.14% for the US dollar
balance and -0.04% for the pound sterling balance. Exchange rate sensitivities were -
0.03% for the dollar and -0.02% for the pound sterling.
In addition to the aforementioned sensitivities and results, ICO has established a
regular system integrated with the risk measurement, management and control
application in order to verify the impact that different evolution scenarios for significant
financial variables could have on the Financial Margin or Net Asset Value, and
performs other sensitivity estimates on a monthly basis based on different hypotheses
of interest rate movements.
Furthermore, in accordance with the EBA guidelines on Balance Sheet Interest Rate
Risk Management in non-trading activities, GL/2018/02, the change in the Economic
Value of Equity (EVE) is calculated on a quarterly basis, at least for each currency,
when the assets or liabilities denominated in that currency represent 5% or more of the
total financial assets (excluding tangible assets) or financial liabilities of the banking
book—or less than 5% if the sum of the assets or liabilities included in the calculation
is less than 90% of the total financial assets or financial liabilities—in each of the 6
scenarios marked by the banking book (parallel upward or downward movement of
200 b.p., monetary easing, flattening, rising short rates and falling short rates).
4) Risk modification. The final step in effective risk management is the ability to adjust
sensitivities to bring them into line with the desired risk values at any given time, using
on-balance sheet or off-balance sheet instruments, depending on market opportunities
and management decisions.
The main currencies in which ICO holds balance sheet positions at 31 December 2024
are the euro and the US dollar.

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In terms of balance sheet assets, the euro accounts for approximately 90.19% of the
total, the US dollar for 8.07% and other currencies for the remainder.
On the liabilities side, they account for around 97.80% of the balance sheet total, with
approximately 56.36% of the total in euro and 41.45% in US dollars.
At year-end 2023, ICO's main currencies of activity were also the euro and the US
dollar. In this case, between them they accounted for around 97.92% of total assets,
with the euro accounting for 89.82% and the dollar for the remaining 8.10%, while they
accounted for 97.26% of liabilities, 59.30% in euros and 37.95% in dollars.
With regard to the currencies in which the ICO operates, with the exception of the balances in
euro and US dollars, its balances are practically closed to interest rate and exchange rate risk,
either because the financing is raised in the corresponding currency and converted into euro
by means of a derivative hedging the currency flows, or because the financing of a given asset
is tailor-made to avoid these risks.
5.5. Credit risk in ICO
With regard to credit risk, there are two main groups: counterparty risk and country risk.
The first group includes transactions with financial institutions, both on- and off-balance sheet.
It is controlled by a system that integrates the administration of transactions and the risks
arising from them in real time, providing traders with up-to-date information on the counterparty
lines available at any given time.
A methodology for the consumption of counterparty facilities has been defined and approved
by the competent bodies of ICO, based on the valuation of transactions at market prices plus
a potential future risk or "add-on" which is measured as a percentage of the nominal value of
the transaction and calculated as the maximum potential loss at 95% confidence over the life
of the transaction. The methodology is reviewed periodically and, in particular, the add-ons
are adjusted at least every six months.
ICO's General Council also periodically approves the basic criteria for the establishment of the
counterparty facilities and carries out an individual analysis of each. These counterpart
facilities are subdivided into two main groups as a consequence of ICO’s operational
characteristics. On the one hand, there are counterpart facilities for treasury operations. On
the other hand, the counterpart facilities for mediation transactions, which are operations
where ICO finances different investment projects through framework programmes signed with
different entities.
The derivative transactions contracted by ICO have high credit-quality counterparts, such that
a very high percentage of them, nearly 100%, have an investment grade agency rating, being
national and international institutions. In addition, for this type of operation, it is general policy
to sign ISDA or CMOF (Master Agreement for Financial Transaction) contracts and collateral
contracts in order to reduce counterparty risk as much as possible.
In any case, ICO's activity with financial institutions, both in mediation and treasury, is carried
out with counterparts that, for almost 92% of the risk, have an investment grade agency rating.
Regarding corporate credit risk, ICO has structured different stages of assessment and
control: Admission, Monitoring and Recovery.
In the Admission process, an analysis of the companies and operations is conducted based

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on their valuation as a going concern, in addition to assessing guarantees, where applicable,
in order to issue an opinion on the risk operation and potential client, the basis for subsequent
decision-making by the Operations Committee or General Council, as the case may be.
The objective of the Monitoring process (direct lending) is to ensure that the Institute's loan
portfolio is of the highest quality, that is, to ensure that loans are repaid punctually on the
agreed dates. The basic unit of monitoring is the client, not the transaction, so that any impact
on a transaction affects the risk rating of the client and its Group. This is achieved through
ongoing monitoring, with periodic reviews of clients’ economic and financial situation and by
keeping the decision support tools up to date in order to detect warning signs, as well as
promoting action plans to respond to problematic risks for the purposes of maximising the
repayment on the financing granted.
In a section on credit risk, special mention should be made of country risk. Country risk refers
to the creditworthiness of the total number of counterparts considered to belong to a
geographic, political and legally defined area as a state.
In this respect, ICO has approved a methodology for measuring country risk that follows the
regulations in force, fulfilling the objective of assessing countries by risk groups according to
multiple criteria, thus making it possible to have a defined criterion when provisioning for
country risk, offering an assessment of that country, evaluating its direct credit operations and
segmenting the non-resident credit portfolio. As sources of information for the classification of
countries into risk groups, ratings from rating agencies and the OECD-CESCE are used.
5.6. Operational risk in ICO
The measurement and control of operational risks is becoming increasingly important,
especially in view of the Basel Capital Accord (Basel III). This covers the risk arising from
losses due to inadequate processes, incorrect records, system failures, legal risk or risk of
loss embedded in the process of executing transactions.
Operational risk is broken down into three main risks: technological, business continuity and
conduct risk:
- Technology risk: is the risk of loss due to inadequate or failed internal system
processes or due to external events. In addition, this risk includes cybersecurity and
system operations.
- Business continuity risk: the risk of not continuing to perform the essential functions
of ICO following a critical situation that has disrupted normal processes.
- Conduct risk: the risk of loss due to failures by the staff, including conduct risk.
In this area, a number of tools have been developed that will facilitate the task of handling
operational risk. Specifically, this refers to the Risk Map, which includes all the risks detected
by ICO and the controls to be conducted to properly manage them, the monthly monitoring
policies of the scorecard or activity indicators, the development of internal processes and
procedures, the definition of policies for monitoring clients and operations, the internal control
of incidents, and the existing contingency plan. In addition, it is worth highlighting the periodic
controls on procedures and operations conducted by the various internal and external audit
services.

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5.7 Outstanding corporate credit exposure
5.7.1 Sectoral classification
On a sectoral basis, the outstanding exposure (*) is distributed as follows:
Millions of euros
2024
2023
Amount
% of total
Amount
% of total
Real estate investment
347
2%
381
3%
Construction of subsidised housing for sale
2
0%
4
0%
Construction of subsidised housing for rent
310
2%
277
2%
Land acquisition and development
35
0%
87
1%
Other
-
-
13
0%
Tangible investment
12,743
79%
10 963
78%
Renewable energies
3 135
20%
2 280
16%
Water infrastructure
72
0%
77
1%
Electricity infrastructures
2 140
13%
2 675
19%
Gas and hydrocarbon infrastructures
1 430
9%
1 048
7%
Transport infrastructure
3 970
25%
3 377
25%
Tourism and leisure
109
1%
107
1%
Social and health infrastructures
95
1%
89
1%
Telecommunications
457
3%
192
1%
Audiovisual production and exhibition
48
0%
50
0%
Business parks and other constructions
21
0%
25
0%
Other
962
5%
716
5%
Material Investment: R&D&I
304
2%
327
2%
ICO financing facilities-Auton.Comm. Agencies
-
-
-
-
Company acquisitions
417
3%
519
4%
General corporate needs
1 590
10%
1 194
8%
Restructuring of liabilities
146
1%
132
1%
General budgets of the Local Auth.
816
5%
896
6%
16,059
100%
14 085
100%
(*) Including loans and advances to customers without valuation adjustments or impairment losses (except for "other financial
assets"). Also includes financial guarantees to clients and resident government debt securities classified as loans and advances
receivable.
At 31 December 2024 and 2023 the outstanding risk is mainly concentrated in the sectors
included under the heading "Material Investment", which accumulates 79% of the total risk in
2024 (78% in 2023). Within this heading, the weight of the following sectors stands out:
"Transport infrastructure" (25% of the total in 2024 and 2023), "Electricity infrastructure" (13%
of the total balance in 2024 and 19% in 2023) and "Renewable energies", with 20% of the total
risk in 2024 (16% in 2023).
5.7.2 Classification by geographical destination of financial investment
The total risk at 31 December 2024 is distributed between 74% corresponding to financing
operations in Spain, amounting to EUR 11,823 million (74% in 2023 for EUR 10,396 million),
and 26% in operations aimed at financing investment projects in other countries, amounting
to EUR 4,237 million (EUR 3,690 million in 2023).
The distribution of risk for investment projects in Spain by Autonomous Community in 2024 is
as follows: National 77%, Madrid with 9%, Catalonia with 3%, Valencia with 2.6% and
Andalusia with 2% (77%, 7%, 4%, 3% and 2% in 2023, respectively).

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At 31 December 2024 and 2023, the risk of transactions destined for international markets is
distributed as follows:
Millions of euros
2024
2023
Amount
Percentage
Amount
Percentage
European Economic Union
1,052
25%
1,025
28%
Latin America
199
5%
1,036
28%
United States
422
10%
172
5%
Rest of Europe
1,868
44%
30
1%
Multi-region (*)
696
16%
1,426
38%
4,237
100%
3,689
100%
(*) Includes the risk of operations whose external investment takes place in different countries or multiple geographical areas.
5.7.3 Distribution of client loans by activity
The distribution at 31 December 2024 is as follows:
Sec. int. loans: carrying amount over LTV
TOTAL
Of which:
Sec. real
estate
Of which:
other sec. int.
loans
< 40%
40 – 60%
60- 80%
80 – 100%
> 100%
Public Administrations
2 327 145
97 957
26 254
90 330
33 504
-
-
376
Other financial companies
(financial activity)
450 012
22 479
164 368
75 604
-
69 923
-
41 320
Non-financial companies
(non-financial activity)
9 945 551
179 554
1 814 818
1 626 797
141 714
73 681
84 310
67 870
Constr / real estate dev
94 687
94 686
-
94 687
-
-
-
-
Civil works
328 493
-
273 008
235 190
24 457
13 361
-
-
Other purposes
9 522 371
84 868
1 541 810
1 296 920
117 257
60 320
84 310
67 870
Large companies
8 495 566
59 797
958 774
822 872
113 301
4 114
34 304
43 979
SMEs and indiv. comp.
1 026 805
25 071
583 036
474 048
3 956
56 206
50 006
23 891
Rest of Households
25 173
3 167
7 101
10 268
-
-
-
-
Housing
14 351
360
-
360
-
-
-
-
Consumer
914
-
-
-
-
-
-
-
Other purposes
9 908
2 807
7 101
9 908
-
-
-
-
TOTAL
12 747 880
303 157
2 012 541
1 802 999
175 218
143 604
84 310
109 566
The distribution at 31 December 2023 is as follows:
Sec. int. loans: carrying amount over LTV
TOTAL
Of which:
Sec. real
estate
Of which:
other sec. int.
loans
< 40%
40 – 60%
60- 80%
80 – 100%
> 100%
Public Administrations
2 799 588
105 975
27 176
93 122
39 581
-
-
448
Other financial companies
(financial activity)
477 832
-
163 997
63 507
-
44 600
-
55 890
Non-financial companies
(non-financial activity)
9 229 852
179 441
1 401 783
1 140 855
167 485
47 185
164 021
61 678
Constr / real estate dev
88 679
88 679
-
72 495
-
-
16 184
-
Civil works
281 861
-
222 530
179 340
29 645
13 545
-
-
Other purposes
8 859 311
90 762
1 179 253
889 020
137 840
33 640
147 837
61 678
Large companies
7 828 146
63 206
570 990
444 935
118 225
-
39 347
31 689
SMEs and indiv. comp.
1 031 165
27 556
608 263
444 085
19 615
33 640
108 490
29 989
Rest of Households
27 613
5 452
8 044
12 409
-
-
-
1 087
Housing
13 767
463
-
463
-
-
-
-
Consumer
808
-
-
-
-
-
-
-
Other purposes
13 038
4 989
8 044
11 946
-
-
-
1 087
TOTAL
12 534 885
290 869
1 601 000
1 309 894
207 067
91 784
164 021
119 103
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5.8 Information on payment deferrals to suppliers
The information required by the third additional provision of Law 15/2010 of 5 July is as follows:
2024
2023
(days)
Average supplier payment period
6.75
6.75
Ratio of paid transactions
7
7
Ratio of outstanding transactions
3.5
3.5
(thousands of euros)
Total payments made
35 088
32 147
Total outstanding payments
1 303
1 043
Amount paid in less than maximum period (late payment regulations)
35 088
32 147
(number of invoices)
Invoices paid in less than the maximum period (late payment regulations)
3 592
3 236
(percentage)
Amount paid in less than the maximum period over total payments
100%
100%
Invoices paid in less than the maximum period over total invoices
100%
100%
In accordance with the provisions of Law 3/2004, the maximum legal payment period is 30
days, which may be extended by agreement between the parties up to a limit of 60 calendar
days.
The third additional provision of Law 15/2010 of 5 July, amending Law 3/2004 of 29 December,
which establishes measures to combat late payment in commercial transactions, as amended
by the second final provision of Law 31/2014 of 3 December, and by Article 9 of Law 18/2022
of 28 September, establishes the duty of unlisted commercial companies that cannot present
abridged financial statements to expressly include their average payment period to suppliers
in their notes to the financial statements, the monetary volume and number of invoices paid
under the maximum period established in the regulations on late payment and the percentage
that they represent of the total number of invoices and of the total monetary payments to their
suppliers.
For the purposes of a proper understanding of the information contained in this note, in
accordance with the provisions of the ICAC [Accounting and Auditing Institute of Spain]
Resolution of 29 January 2016, on information to be included in the notes to the financial
statements in relation to the average payment period to suppliers in commercial transactions,
it should be noted that "Suppliers" are understood to be trade creditors for debts with suppliers
of goods and services.
In view of the activity in which the Institute is mainly engaged (financial activity), the information
presented in this Note on deferred payments relates exclusively to payments to suppliers for
the provision of services and supplies to the Institute, other than payments to depositors and
holders of securities issued by the Institute, which have been made in all cases in strict
compliance with the contractual and legal deadlines established for each, whether they are
liabilities on demand or with deferred payment. It also does not include information on
payments to suppliers excluded from the scope of this reporting obligation in accordance with
the provisions of the aforementioned Resolution of the Accounting and Auditing Institute of
Spain, such as payments to suppliers of fixed assets or creditors for financial leasing
transactions that are not considered trade creditors. For the purpose of the above information,
payments corresponding to inter-company receivables and payables have been eliminated.
For the purpose of preparing this information, and in view of the nature of the Entity's activities
and operations, the calculation of days payable and days outstanding is based on the period
elapsed between the invoice date (which in practice usually coincides with or is very close to
the date of receipt of the goods or services from the supplier) and the date of actual payment
or the year-end date, respectively.
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5.9 Risk concentration and other ICO-specific legislation
At 31 December 2024 and 2023, the Group is exempt from compliance with the limits on large
exposures set out in the applicable regulations (Part Four of EU Regulation 575/2013), as
provided for in the Institute's own Articles of Association.
At 31 March 2012, Royal Decree Law 12/2012 of 30 March was published, establishing the
Institute’s treatment of exposures to financial institutions with registered offices in EU Member
States.
5.10 Information on financing for construction and property development and on real
estate assets foreclosed under financing operations for these purposes
With regard to the policies and strategies relating to the real estate risk portfolio, the Institute's
admission processes follow specific policies for this type of product (developers with
experience in the sector, accredited sales percentages, information on rental demand by
independent experts, among other criteria), studying the economic and financial viability of the
projects.
There is subsequent validation and control of disbursements by certifications, monitoring of
the progress of works, and oversight of sales.
Studies have also been conducted to detect the reasons for the payment difficulties of clients
who have are in arrears, with a view to proposing solutions to enable the successful
completion of operations.
Information on financing for construction and property development is provided below:
- Financing for construction and real estate development and coverage thereof:
2024
2023
Gross
amount
Excess over the
value of the
guarantee
Specific
coverage
Gross amount
Excess over
the value of the
guarantee
Specific
coverage
Real estate financing
361 589
-
163 481
403 089
-
167 216
Of which: doubtful
67 829
-
66 408
87 116
-
85 505
Memorandum item
Failed assets
-
-
-
-
-
-
Thousands of euros
2024
2023
Memorandum item:
Total loans and advances to customers, excluding public administrations
10 420 735
9 735 297
Total assets
37 780 225
31 656 823
Full coverage for normal risk
368 565
379 169
Total lending for construction and real estate development financing at 31 December 2024
represented 0.96% of the balance sheet total (1.27% at 31 December 2023).
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66
- Breakdown of financing for construction and property development (gross amounts):
Thousands of euros
2024
2023
1 Unsecured by mortgage
35 340
88 081
2 Secured by mortgage
326 249
315 008
2.1 Completed buildings
277 004
301 482
2.1.1 Housing
249 629
279 718
2.1.2 Remainder
27 375
21 764
2.2 Buildings under construction
49 245
13 526
2.2.1 Housing
49 245
13 526
2.2.2 Remainder
-
-
2.3 Land
-
-
2.3.1 Developed land
-
-
2.3.2 Remaining land
TOTAL
361 589
403 089
- Loans to households for home purchase:
Thousands of euros
2024
2023
Gross
amount
Of which:
doubtful
Gross amount
Of which:
doubtful
Loan for home purchase
14 452
-
13 864
-
-
Unsecured by mortgage
14 090
-
13 398
-
-
Secured by mortgage
362
-
466
-
-
- Breakdown of lending to households for home purchase, mortgage collateral
(percentage of risk over last available valuation, LTV):
At 31 December 2024:
Thousands of euros
LTV<40%
40%<LTV<60%
60%<LTV<80%
80%<LTV<100%
LTV>100%
Gross amount
175
110
77
-
-
- Of which:
doubtful
-
At 31 December 2023:
Thousands of euros
LTV<40%
40%<LTV<60%
60%<LTV<80%
80%<LTV<100%
LTV>100%
Gross amount
298
76
92
-
-
- Of which:
doubtful
-
- Foreclosed assets received in payment of debts from construction and property
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67
development financing.
None of the foreclosed assets that form part of the entity's balance sheet (Note 17)
derive from financing to construction and property development companies, nor from
mortgage financing to households for home purchase, nor do they consist of equity
instruments, shareholdings and financing to non-consolidated companies holding such
assets.
5.11 Information on refinanced and restructured operations
The information relating to refinanced and restructured transactions at 31 December 2024 and
2023 (gross amounts), as required by Bank of Spain Circular 6/2013 on public and confidential
financial reporting standards, is set out below:
At 31 December 2024 (gross amounts in thousands of euros):
Secured
Unsecured
TOTAL
amounts
TOTAL coverage
Public Administrations
-
35 340
35 340
26 318
- of which: doubtful
-
22 568
22 568
22 568
Finance companies (financial
assets)
-
-
-
-
- of which: doubtful
-
-
-
-
Non-financial companies and
industrial enterprises
333 869
179 513
513 382
238 091
- of which: doubtful
202 211
64 492
266 703
221 976
- of which: non-doubtful real
estate finan
10 494
-
10 494
4 737
- of which: doubtful real estate
finan
2 311
-
2 311
2 311
Other households
156
2
158
-
TOTAL
334 025
214 855
548 880
264 409
At 31 December 2023 (gross amounts in thousands of euros):
Secured
Unsecured
TOTAL
amounts
TOTAL coverage
Public Administrations
-
88 082
88 082
51 844
- of which: doubtful
-
36 844
-
36 844
Finance companies (financial
assets)
-
-
-
-
- of which: doubtful
-
-
-
-
Non-financial companies and
industrial enterprises
305 617
133 667
439 284
212 913
- of which: doubtful
197 784
32 017
229 801
195 659
- of which: non-doubtful real
estate financing
-
-
-
-
- of which: doubtful real estate
financing
3 628
-
-
3 628
Other households
231
1
231
-
TOTAL
305 848
221 749
527 597
264 757
At 31 December 2024, the total number of refinanced or restructured operations was 87 (71
at 31 December 2023): 34 unsecured transactions (34 at 31 December 2023) and 53 secured
transactions (37 at 31 December 2023). Of the total number of refinanced or restructured
transactions, 43 are of doubtful risk (44 at 31 December 2023).
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68
6. CASH, BALANCES AT CENTRAL BANKS AND OTHER DEMAND DEPOSITS
The breakdown of the balance of this item in the balance sheets at 31 December 2024 and
2023 is as follows:
Thousands of euros
2024
2023
Cash
6
6
Cash at Bank of Spain
2 664 864
2 123 983
Mandatory for compliance with minimum reserve ratios
110 540
2 123 983
Other demand deposits
19 966
34 991
2 684 836
2 158 980
7. FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING
The entire balance of these items in the balance sheets at 31 December 2024 and 2023
consists of trading derivatives.
Trading derivatives transactions relate mainly to instruments with which the Institute manages
balance sheet positions on an overall basis but which, as they do not meet the regulatory
requirements for hedge accounting, are classified in the trading portfolio.
Set out below is a breakdown, by class of derivative, of the fair value of the Institute's trading
derivatives and their notional value (the amount on the basis of which future payments and
receipts for these derivatives are calculated) at 31 December 2024 and 2023:
Thousands of euros
Notional
Assets
Liabilities
2024
2023
2024
2023
2024
2023
By market type
Organised markets
-
-
-
-
-
Unorganised markets
307 448
336 743
15 448
24 197
14 723
23 610
307 448
336 743
15 448
24 197
14 723
23 610
By product type
Swaps
307 448
336 743
15 448
24 197
14 723
23 610
307 448
336 743
15 448
24 197
14 723
23 610
By counterpart
Credit institutions
153 724
212 524
15 448
-
14 723
23 610
Other sectors
153 724
124 219
-
24 197
-
-
307 448
336 743
15 448
24 197
14 723
23 610
By type of risk
Exchange rate risk
117 913
253 463
10 618
22 794
10 440
22 572
Interest rate risk
189 535
83 280
4 830
1 403
4 283
1 038
307 448
336 743
15 448
24 197
14 723
23 610
The fair value of these items has been calculated in all cases, both in 2024 and 2023, taking
as a reference the implicit curves of the money and government bond markets.
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69
At 31 December 2024 and 2023, the classification of the trading portfolio, measured at fair
value, according to the tiered hierarchies set out in Note 2.2.3, is detailed below:
Thousands of euros
2024
2023
Tier I
Tier II
Tier III
Tier I
Tier II
Tier III
Asset trading derivatives
-
15 448
-
-
24 197
-
Liability trading derivatives
-
14 723
-
-
23 610
-
Amounts shown below are those recognised in the profit and loss accounts for 2024 and 2023
(Note 29) for changes in the fair value of the Institute's financial instruments included in the
portfolio of assets held for trading, corresponding to unrealised gains and losses,
distinguishing between those financial instruments whose fair value is determined by
reference to published prices in active markets (Tier 1), estimated using a valuation technique
whose inputs are obtained from observable market data (Tier 2) and the remainder (Tier 3):
Thousands of euros
2024
2023
Profit
Loss
Net
Profit
Loss
Net
Tier 1
-
-
-
-
-
-
Tier 2
45 874
(46 692)
(818)
26 226
(25 286)
940
Tier 3
-
-
-
-
-
-
During the 2024 and 2023 financial years, changes in the fair value of derivatives classified
as Level 2 are solely due to purchases, sales and changes in fair value as a result of applying
the valuation techniques described above, with no reclassifications between tiers.
8. NON-TRADING FINANCIAL ASSETS MANDATORILY MEASURED AT FAIR
VALUE, THROUGH PROFIT OR LOSS
The breakdown of the net balance of this item in the balance sheet at 31 December 2024 and
2023 is as follows:
Thousands of euros
2024
2023
Equity instruments
-
-
Debt securities
-
-
At 31 December 2023 this heading included one debt instrument, classified as doubtful risk,
with 100% accounting coverage (amounting to EUR 40,167 thousand) and therefore being
fully provisioned. At the end of 2024, this amount was declared a write-off.
In 2024, no fair value gains and losses were recognised in the profit and loss account in this
respect (also in 2023) (Note 30).
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70
9. FINANCIAL ASSETS AT FAIR VALUE, THROUGH OTHER COMPREHENSIVE
INCOME
The breakdown of the balance of this item in the balance sheet at 31 December 2024 and
2023, by investment, is as follows:
Thousands of euros
2024
2023
Equity instruments:
FOND ICO SMEs (1)
132 465
119 024
FOND ICO Sustainability and Infrastructures (2)
166 902
139 980
FOND ICO Global (3)
1 235 511
1 066 870
FOND ICO Next Tech (4)
278 022
126 362
FONS MEDITERRANEA FCR (5)
4
3 485
MARGUERITE FUND MEH (6)
32 016
39 041
IEF (7)
31 088
30 246
SWIFT (8)
8
6
EDW (9)
237
206
MARGUERITE III FUND INVEST EU (10)
18 438
8 337
BEKA & BOLSCHARE IBERIAN INVEST EU (11)
17 152
-
RURAL DE INVERSIONES INVEST EU (12)
2 887
-
SC CLIMATE IMPACT INVEST EU (13)
19 122
-
IBER ACTIVOS INMOBILIARIOS (14)
-
-
PICO ESPADAS SA (15)
-
-
1 933 852
1 533 557
Debt securities (16)
1 403 450
91 001
3 337 302
1 624 558
The balance, net of the tax effect, of "Other accumulated comprehensive income" as changes
in the fair value of these financial instruments at 31 December 2024 and 2023 is as follows
(Note 21):
Thousands of euros
2024
2023
Debt instruments
9 522
719
Equity instruments
371 765
365 729
381 287
366 448
The movements during 2024 and 2023 in “Financial assets at fair value, through other
comprehensive income” are shown below:
Thousands of euros
2024
2023
Balance at beginning of year
1 624 558
2 460 191
Additions for purchases
2 041 557
417 778
Sales and depreciation
(343 652)
(1 241 704)
Fair value changes (Note 21)
14 839
(11 707)
Provision for impairment
-
-
Other movements due to impairment losses (application)
-
-
Year-end balance
3 337 302
1 624 558
(1) FOND ICO SME. A venture capital fund set up in May 1993, in which the Institute is
the sole shareholder, managed by Axis Participaciones Empresariales. The net
contribution in 2024 was EUR 15,025 thousand (contributions of EUR 15,025 thousand
in 2023). The amount committed by ICO and pending disbursement stood at EUR
70,000 thousand at 31 December 2024 (EUR 61,000 thousand at 31 December 2023).
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71
(2) FOND ICO Sustainability and Infrastructures. Venture capital fund created in 2019,
100% owned by the Institute and managed by Axis Participaciones Empresariales.
The Institute's net contributions in 2023 were EUR 21,240 thousand (net contributions
of EUR 19,000 thousand in 2023). The amount committed by ICO and pending
disbursement stood at EUR 51,000 thousand at 31 December 2024 (EUR 68,000
thousand at 31 December 2023).
(3) FOND ICO Global. Venture capital fund created in 2014, 100% owned by the Institute
and managed by Axis Participaciones Empresariales. The Institute's net contributions
in 2024 were EUR 142,000 thousand (EUR 79,000 thousand in 2023). The amount
committed by ICO and pending disbursement stood at EUR 876,000 thousand at 31
December 2024 (EUR 733,000 thousand at 31 December 2023). Of the total amount
committed at 31 December 2024, a total of EUR 157,455 thousand corresponds to
commitments for projects associated with the RRM scheme for Venture Capital Funds
managed by Axis.
(4) FOND ICO Next Tech. Venture capital fund created in 2021, 100% owned by the
Institute and managed by Axis Participaciones Empresariales. The Institute's net
contributions in 2024 were EUR 167,900 thousand (EUR 114,300 thousand in 2023).
The amount committed by ICO and pending disbursement stood at EUR 586,000
thousand at 31 December 2024 (EUR 504,000 thousand at 31 December 2023).
(5) FONS MEDITERRANEA. Fund set up in October 2005, in which the Institute
participates together with other public and private entities. The Fund was created to
invest in Spanish companies' projects in the African Maghreb. Currently in liquidation,
in 2024 ICO received a repayment of EUR 2,074 thousand (no net contributions in
2023).
(6) MARGUERITE FUND MEH. With the participation of Europe's leading public financial
institutions, the Marguerite Fund is a European equity fund aimed at supporting
infrastructure investments that implement key EU policies on climate change, energy
security and trans-European networks. This initiative also seeks to serve as a
benchmark for other similar funds to be established in the EU, with the aim of
combining the ROI principle, based on market policies, with the objectives set by public
policies. The Fund is managed by ICO, although the final outcome of the eventual
liquidation of the Fund will not affect the Institute's balance sheet, as it is fully
guaranteed by the Spanish Ministry of Finance, which provides it with the necessary
funds. No net contributions were made to the Fund in 2024 (net contributions of EUR
(986) thousand in 2023).
(7) EIF. Share equivalent to 0.66% of the total European Investment Fund at 31 December
2024 (0.66% at 31 December 2023). There have been no net contributions in either
2024 or 2023. At 31 December 2024, an amount of EUR 38,933 thousand (31
December 2023: EUR 38,933 thousand) was pending disbursement.
(8) SWIFT. Participation of the Institute in 1 share in this entity, as a full member from
2008.
(9) EDW. 3.57% stake in the entity European Datawarehouse GmbHG at March 2012.
(10) MARGUERITE III FUND INVEST EU. At the end of 2022, ICO acquired shares in this
fund, as Implementing Partner of the European Commission, under the European
Commission's Invest-EU Guarantee Programme. This investment is backed by an EC
guarantee to ICO for 50% of the investment. In 2024 there have been net contributions
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72
of EUR 7,090 thousand (net contributions of EUR 8,261 thousand at 31 December
2023).
(11) BEKA & BOLSCHARE IBERIAN. ICO took a 43.98% stake in 2024, as Implementing
Partner of the European Commission, under the European Commission's Invest-EU
Guarantee Programme. ICO's investment is backed by a 50% guarantee from the EC.
In 2024 there were net contributions amounting to EUR 17,783 thousand.
(12) RURAL DE INVERSIONES. ICO took a 49% stake in 2024, as Implementing Partner
of the European Commission, under the European Commission's Invest-EU
Guarantee Programme. ICO's investment is backed by a 50% guarantee from the EC.
In 2024 there were net contributions of EUR 2,954 thousand.
(13) SC CLIMATE IMPACT III. ICO took a 20.05% stake in 2024, as Implementing Partner
of the European Commission, under the European Commission's Invest-EU
Guarantee Programme. ICO's investment is backed by a 50% guarantee from the EC.
In 2024 there were net contributions amounting to EUR 19,753 thousand.
(14) IBER ACTIVOS INMOBILIARIOS. 7.28% stake in the entity, fully provisioned (net
book amount nil).
(15) PICO ESPADAS SA. 1.55% stake in the entity, fully provisioned (net book amount
nil).
(16) As part of its liquidity management policy and business models, ICO may make
investments in debt instruments classified as financial assets at fair value, through
other comprehensive income. In general, these are fixed-income securities issued by
the government (public debt).
The breakdown by maturity of these assets is as follows:
Thousands of euros
2024
2023
Maturity up to 1 year
449 194
-
Maturity between 1 and 2 years
477 756
70 590
Maturity between 2 and 3 years
476 500
20 411
Maturity over 3 years
-
-
1 403 450
91 001
At 31 December 2024 and 2023, the classification of financial assets at fair value through
other comprehensive income, according to the tier hierarchies set out in Note 2.2.3, is as
follows:
Thousands of euros
2024
2023
Tier I
Tier II
Tier III
Tier I
Tier II
Tier III
Debt securities
1 403 450
91 001
Equity instruments
1 933 852
1 533 557
There were no derecognitions in 2024 with an impact on the profit and loss account. In 2023,
losses of EUR 20,946 thousand (Note 28) on derecognition of financial assets at fair value
through other comprehensive income were recognised in the Institute's profit and loss account
for these assets, which were reclassified from equity to the extent that they were measured at
fair value at the time of sale.
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73
10. FINANCIAL ASSETS AT AMORTISED COST
The breakdown of the balance of this item in the balance sheets at 31 December 2024 and
2023 is as follows (including impairment losses and other valuation adjustments):
Thousands of euros
2024
2023
Debt securities (Note 10.1)
7 429 279
6 302 584
Loans and advances:
23 375 061
20 901 994
Credit institutions (Note 10.2)
10 477 256
8 300 598
Clientele (Note 10.3)
12 897 805
12 601 396
30 804 340
27 204 578
The movement in impairment losses recognised for credit risk hedging and the cumulative
amount of impairment losses at the beginning and end of 2024 and 2023 of the portfolio of
financial assets at amortised cost are presented below:
Thousands of euros
Provision for
Country Risk
Provision for
doubtful risk
and normal
risk in special
surveillance
Provision for
normal risk
Total
Balance at 1 January 2023
1 919
453 635
192 885
648 439
Allocations charged to profit and loss
2 904
137 562
2 881
143 347
Recoveries charged to profit and loss
(35)
(50 439)
(30 946)
(81 420)
Use of funds
(8 771)
(8 771)
Other movements
Adjustments for exchange differences
(84)
339
(25)
230
Balance at 31 December 2023
4 704
532 326
164 795
701 825
Allocations charged to profit and loss
5 558
102 863
4 509
112 930
Recoveries charged to profit and loss
(129)
(55 854)
(27 294)
(83 277)
Use of funds
-
-
-
-
Other movements
-
-
-
-
Adjustments for exchange differences
512
381
307
1 200
Balance at 31 December 2024
10 645
579 716
142 317
732 678
The breakdown of provisions for doubtful risks and for normal risks under special surveillance
based on the criteria for their determination is presented below:
Thousands of euros
2024
2023
Provision for doubtful risks (with defaults):
424 317
421 942
On account of late payment
8 591
24 386
For reasons other than late payment
415 726
397 556
Provision for normal risk in special surveillance
155 399
110 384
TOTALS
579 716
532 326
The provision for normal risk under special surveillance relates to credit assets amounting to
EUR 1,067,440 thousand at 31 December 2024 (31 December 2023: EUR 544,623 thousand).
The following is a detail of those financial assets classified as loans and receivables and
considered impaired due to their credit risk at 31 December 2024 and 2023, classified by
counterparty as well as according to the period elapsed since the maturity of the oldest unpaid

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74
amount at those dates of each transaction. Impaired assets guaranteed by the State are
detailed in Note 10.3.
Impaired assets at 31 December 2024
Thousands of euros
No
arrears
3-6
month
s
6-9
months
9-12
months
12-15
months
15-18
month
s
18-21
month
s
Over 21
months
TOTAL
By types of counterparts
Non-financial corporations
459 438
-
-
-
-
-
-
69 746
529 184
Impaired assets at 31 December 2023
Thousands of euros
No arrears
3-6
month
s
6-9
months
9-12
months
12-15
months
15-18
month
s
18-21
month
s
Over 21
months
TOTAL
By types of counterparts
Non-financial corporations
472 560
-
-
-
42 612
-
350
24 035
539 557
At 31 December 2024 there is a balance of assets with country risk amounting to EUR 636,619
thousand, with a country risk hedge of EUR 10,645 thousand (31 December 2023: EUR
240,259 thousand with a hedge of EUR 4,704 thousand).
The amount of non-impaired past-due assets for 2024 and 2023 stood at EUR 36,294
thousand and EUR 45,458 thousand, respectively, with an age in both years of between one
and three months.
The movement in impaired financial assets written off as their recovery is considered remote
(write-offs) is as follows:
Thousands of euros
2024
2023
Balance at beginning of year
1 376 215
1 461 682
Additions:
54 207
1 983
For use of balance
-
For other reasons
54 207
1 983
Recoveries:
(67 046)
(86 125)
By cash collection without additional financing
(66 063)
(73 434)
By asset foreclosure
-
-
Other
(983)
(12 691)
Permanent derecognitions: other causes:
-
Net change due to exchange rate differences
2 342
(1 325)
Balance at year-end
1 365 718
1 376 215
The net amount recognised in the accompanying profit and loss account for 2024 and 2023
as a result of the movement in assets whose recovery is considered remote (written-off assets)
amounts to a gain of EUR 66,063 thousand and EUR 73,434 thousand, respectively (see
"Impairment (or reverse impairment) of financial assets not measured at fair value through
profit and loss or net gains or losses upon adjustment").
10.1 Debt securities
The heading "Debt securities" includes the amount of financial assets valued at amortised cost

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for fixed-income securities and securities-bearing financial assets.
At the end of 2013, the Institute's Operations Committee approved Annex 5 to the Framework
Contract for the 2015 ICO Mediation Facilities, to regulate the conditions and operations to be
applied to the conversion into bonds of the loan drawdowns made by institutions in the 2015
ICO facilities. This approval included the general specifications regarding facilities eligible for
conversion, the amounts, the accrual of interest, the eligible entities, the timetable and the
compensation to the Financial Institutions. The debt securities resulting from this conversion
of mediated loans are also included under this heading "Debt securities".
The breakdown of the balance of this item in the balance sheet at 31 December 2024 and
2023, by type of counterparty, is as follows:
Thousands of euros
2024
2023
By types of counterparts
Resident public administrations
4 271 761
3 585 044
Resident credit institutions
-
1 193
Other resident sectors
2 981 290
2 539 761
Other non-resident sectors
176 228
176 586
7 429 279
6 302 584
The breakdown by maturity at 31 December 2024 and 2023 is as follows:
Thousands of euros
2024
2023
By maturity
Up to 1 year
1 080 034
850 743
Over 1 year up to 2 years
551 762
806 189
Over 2 years up to 3 years
2 206 222
415 084
Over 3 years up to 4 years
1 508 521
2 037 649
Over 4 years up to 5 years
663 519
1 202 335
Over 5 years
1 419 221
990 584
7 429 279
6 302 584
At 31 December 2024 these assets bore an average annual interest rate of 2.82% (31
December 2023: 2.42%).
The interest accrued during 2024 and 2023 on these securities amounted to EUR 203,042
thousand and EUR 145,325 thousand, respectively, and is included under "Interest income"
in the accompanying profit and loss account (Note 24).
The Institute had credit risk coverage at 31 December 2024 (normal risk) amounting to EUR
27,497 thousand on these assets (EUR 40,420 thousand at 31 December 2023).
The movements during 2024 and 2023 in the item “Debt securities at amortised cost” are
shown below:
Thousands of euros
2024
2023
Balance at beginning of year
6 302 584
6 781 025
Additions for purchases
3 280 693
3 677 545
Movements due to impairment losses
12 923
2 102
Depreciation and sales
(2 166 921)
(4 158 088)
Year-end balance
7 429 279
6 302 584
At 31 December 2024, no gains or losses on financial transactions arising from the

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derecognition of assets included under "Debt securities" were recognised (also at 31
December 2023) (Note 28).
10.2 Loans and advances to credit institutions
The breakdown of the balance of this item in the balance sheet at 31 December 2024 and
2023 is as follows:
Thousands of euros
2024
2023
By nature -
Deposits with financial institutions (Note 10.2.1)
2 545 820
1 441 534
Nationally mediated loans (Note 10.2.2)
6 047 342
5 721 898
Internationally mediated loans (Note 10.2.3)
1 830 816
1 089 129
Other loans to credit institutions (Note 10.2.4)
-
1 722
10 423 978
8 254 283
Impairment losses
(13 627)
(4 738)
Other valuation adjustments (interest and financial charges)
66 905
51 053
10 477 256
8 300 598
10.2.1 Deposits with financial institutions
The balance of "Deposits with financial institutions" grouped by maturity at 31 December 2024
and 2023 is shown below:
Thousands of euros
2024
2023
Up to 1 year
2 545 820
1 441 534
Over 1 year up to 2 years
-
-
Over 2 years up to 3 years
-
-
Over 3 years up to 4 years
-
-
Over 4 years up to 5 years
-
-
Over 5 years
-
-
2 545 820
1 441 534
During the 2024 financial year, the heading "Deposits with financial institutions" accrued an
average annual interest rate of 3.61% (3.96% during 2023). All deposits included under this
heading are term deposits, at 31 December 2024 and 2023.
The interest accrued during 2024 and 2023 on these loans amounted to EUR 68,576 thousand
and EUR 44,093 thousand, respectively, and is included under "Interest income" in the profit
and loss account (Note 24).
10.2.2 Nationally mediated loans
This Institute’s operation, which has been in place since 1993, aims to help finance small and
medium-sized enterprises in Spain. These facilities are implemented through loans granted
by the Institute to different financial institutions, which execute the final loans with the
corresponding companies. In this way, different facilities are approved each year for different
amounts and objectives, always focused on Spanish SMEs.
In general, the Institute does not assume any risk of insolvency of the final borrowers on these
facilities. On an ad hoc basis, ICO did assume part of the risk in certain liquidity facilities from
2009-2012, which had no outstanding risk at 31 December 2024 and 2023. During the 2024
and 2023 financial years no new mediation facilities were approved in which the Institute
assumes the risk of the final borrowers.

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The detail of the balance of nationally mediated loans at 31 December 2024 and 2023 by
years of maturity is as follows:
Thousands of euros
2024
2023
Up to 1 year
1 497 157
1 459 317
Over 1 year up to 2 years
1 313 753
1 160 827
Over 2 years up to 3 years
1 062 726
964 558
Over 3 years up to 4 years
845 967
726 814
Over 4 years up to 5 years
562 118
577 823
Over 5 years
765 621
832 559
6 047 342
5 721 898
At 31 December 2024 and 2023, the nationally mediated loans bore an average annual
interest rate of 3.57 % and 2.80 % respectively.
The interest accrued during 2024 and 2023 on domestic mediation loans amounted to EUR
177.990 thousand and EUR 112.653 thousand, respectively, and is recognised under "Interest
income" in the profit and loss account (Note 24).
10.2.3 Internationally mediated loans
Internationally mediated loans are a new activity of ICO at 2018, with the aim of supporting
the internationalisation of Spanish companies through financing to banks at the place of
investment.
The detail of the balance of internationally mediated loans at 31 December 2024 and 2023 by
years of maturity is as follows:
Thousands of euros
2024
2023
Up to 1 year
248 390
253 785
Over 1 year up to 2 years
202 439
148 156
Over 2 years up to 3 years
491 126
111 496
Over 3 years up to 4 years
155 174
90 884
Over 4 years up to 5 years
143 202
87 376
Over 5 years
590 485
397 432
1 830 816
1 089 129
At 31 December 2024 and 2023, the internationally mediated loans bore an average annual
interest rate of 3.57 % and 2.80 % respectively.
The interest accrued during 2024 and 2023 on international mediation loans amounted to EUR
88,904 thousand and EUR 61,812 thousand, respectively, and is recognised under "Interest
income" in the accompanying profit and loss account (Note 24).
This heading includes impairment losses for insolvency risk (normal credit risk and country
risk) totalling EUR 13,627 thousand at 31 December 2024 (31 December 2023: EUR 4,738
thousand) (Note 10.2).
10.2.4 Other loans to credit institutions
This heading includes the balances of lending transactions with resident and non-resident
credit institutions carried out directly (no mediation).

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The detail of the balance of these loans at 31 December 2024 and 2023 by years of maturity
are as follows:
Thousands of euros
2024
2023
Up to 1 year
-
1 722
Over 1 year up to 2 years
-
-
Over 2 years up to 3 years
-
-
Over 3 years up to 4 years
-
-
Over 4 years up to 5 years
-
-
Over 5 years
-
-
-
1 722
At 31 December 2024 and 2023, loans to credit institutions bore an average annual interest
rate of 4.01% and 6.46%, respectively.
The interest accrued during 2024 and 2023 on these loans amounted to a loss of EUR 4
thousand and a profit of EUR 195 thousand, respectively, recognised under "Interest income"
in the profit and loss account (Note 24).
10.3 Loans and advances to customers
The breakdown of the balance of this item in the balance sheet at 31 December 2024 and
2023, by type of counterparty, is as follows:
Thousands of euros
2024
2023
By types of counterparties
Resident public administrations
2 347 183
2 898 361
Non-resident public administrations
68 994
20 551
Other resident sectors
9 071 516
8 514 519
Other non-resident sectors
1 883 945
1 699 033
Other financial assets
150 190
66 511
13 521 828
13 198 975
Impairment losses
(691 554)
(656 667)
Other valuation adjustments (interest and financial charges)
67 531
59 088
12 897 805
12 601 396
The heading "Other resident sectors" includes the value of certain investments made in
various Economic Interest Groupings (EUR 23,994 thousand at 31 December 2024 and EUR
115 thousand at 31 December 2023) as these are structures with assured profitability. The
return on the aforementioned holdings has a financial and tax component, due to the inclusion
in the taxable income of the Institute for corresponding tax losses of these entities. In order to
adjust the financial-tax benefit obtained with the final result determined for the investment, an
accounting provision is recorded annually with a charge to “Income tax” in the profit and loss
account (balance of the provision of EUR 33,154 thousand at 31 December 2024 and EUR
13,565 thousand at 31 December 2023) (Notes 19 and 23).
The interest accrued during 2024 and 2023 on these loans amounted to EUR 651,669
thousand and EUR 536,634 thousand, respectively, and is recognised under "Interest income"
in the profit and loss account (Note 24).
Of the above balances, the transactions guaranteed by the public sector, included in "Other
resident sectors" and "Resident public administrations", including valuation adjustments, and
classified under "Loans and advances to customers" at 31 December 2024 and 2023, by type
of counterparty and type of instrument, are detailed below:

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Thousands of euros
2024
2023
Balances included in "resident public administrations"
Loans to the Central Government
1 779 648
2 267 730
Loans to regional governments
567 537
630 631
Valuation adjustments
(89 188)
(119 380)
2 257 997
2 778 981
Balances included in "Other resident sectors
Doubtful assets
4 249
4 733
Loans to other public bodies
2 399 859
2 206 203
Lending to other sectors
434 215
431 916
2 838 323
2 642 852
Total State-guaranteed operations
5 096 320
5 421 833
The breakdown of "Loans to Central Government" at 31 December 2024 and 2023 is as
follows:
Thousands of euros
2024
2023
Loans to the State and its Autonomous Bodies
1 779 064
2 267 615
Accounts receivable from the Public Treasury
584
115
1 779 648
2 267 730
The heading "Accounts receivables from the Treasury" includes the amounts settled by the
Institute with the Treasury pending effective repayment in respect of subsidies to be received
to offset the interest rate differentials on mediation loans. Balances of these accounts, which
are stated at nominal value, do not accrue interest.
Interest income contributed to the profit and loss account by public sector entities during 2024
and 2023 (Note 24) is as follows:
Thousands of euros
2024
2023
Central Administration
Regional Administrations
Other public sector entities
88 220
26 388
103 355
74 756
22 337
59 485
217 963
156 578
The breakdown of the principal amounts of loans classified under "Loans and advances to
customers", including valuation adjustments and excluding impairment losses, by maturity, at
31 December 2024 and 2023 is as follows:
Thousands of euros
2024
2023
By maturity
Up to 1 year
2 392 005
3 031 158
Over 1 year up to 2 years
1 115 602
1 267 414
Over 2 years up to 3 years
1 604 366
1 188 015
Over 3 years up to 4 years
1 803 091
1 346 261
Over 4 years up to 5 years
1 921 299
1 461 361
Over 5 years
4 752 996
4 963 854
13 589 359
13 258 063
At 31 December 2024 and 2023, loans to customers bore an average annual interest rate of
4.88% and 4.64%, respectively.
At 31 December 2024, losses of EUR 1,535 thousand have been recognised in the profit and

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loss account for financial transactions arising from the derecognition of assets included under
"Loans and receivables" (losses of EUR 500 thousand at 31 December 2023) (Note 28).
11. DERIVATIVES – HEDGE ACCOUNTING
This item in the accompanying balance sheets includes hedging instruments recorded at fair
value, as described in Note 2.3.
The derivatives contracted and their hedged items were mainly the following:
- Interest rate swaps, which hedge financial instruments with remuneration other than
Euribor, mainly ICO issues.
- Foreign exchange insurance, which hedges changes in fair value and cash flows
relating to various financial instruments.
The valuation methods used to determine the fair values of the derivatives were discounted
cash flow for interest rate and exchange rate derivatives.
For the years ended 31 December 2024 and 2023, the total notional amounts of derivatives
and the fair values of financial derivatives recorded as "Hedging derivatives" classified by
hedge type, counterparty and type of risk (all of them contracted in OTC markets) are detailed
below:
Thousands of euros
Notional
Assets
Liabilities
2024
2023
2024
2023
2024
2023
By type of coverage
Fair value hedges
11 080 440
9 783 753
283 080
216 605
80 222
246 493
Cash flow hedges
10 650 545
5 527 622
71 399
86 167
1 121 259
337 303
21 730 985
15 311 375
354 479
302 772
1 201 481
583 796
By product type
Swaps
21 730 985
15 311 375
354 479
302 772
1 201 481
583 796
21 730 985
15 311 375
354 479
302 772
1 201 481
583 796
By counterpart
Credit institutions
21 730 985
15 311 375
354 479
302 772
1 201 481
583 796
21 730 985
15 311 375
354 479
302 772
1 201 481
583 796
By type of risk
Exchange rate risk
12 054 197
8 886 785
186 350
171 913
1 096 100
442 136
Interest rate risk
9 676 788
6 424 590
168 129
130 859
105 381
141 660
21 730 985
15 311 375
354 479
302 772
1 201 481
583 796
At 31 December 2024 and 2023, the classification of hedging derivatives, measured at fair
value, according to the tiered hierarchies set out in Note 2.2.3, is detailed below:
Thousands of euros
2024
2023
Tier I
Tier II
Tier III
Tier I
Tier II
Tier III
Asset hedging derivatives
-
354 479
-
-
302 772
-
Liability hedging derivatives
-
1 201 481
-
-
583 796
-

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The fair value of these items has been calculated in all cases, both in 2024 and 2023, taking
as a reference the implicit curves of the money markets.
Following the entry into force of IFRS 13 on 1 January 2013, the Institute incorporated the
corresponding valuation adjustment for counterparty and own credit risk in the valuation of
derivative instruments (Notes 7 and 29).
12. INVESTMENTS IN SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
The movement in this item in the consolidated balance sheets during the 2024 and 2023
financial years is as follows:
Thousands of euros
Group
entities
Multigroup
entities
Partner
entities
Total
Balance at 1 January 2023
1 940
-
55 526
57 466
Additions
-
-
-
-
Withdrawals
-
-
-
-
Other movements
-
-
-
-
Impairment
-
-
-
-
Balance at 31 December 2023
1 940
-
55 526
57 466
Additions
-
-
-
-
Withdrawals
-
-
-
-
Other movements
-
-
-
-
Impairment
-
-
-
-
Balance at 31 December 2024
1 940
-
55 526
57 466
Annex I contains the details of the shareholdings, as well as the most relevant data at 31
December 2024 and 2023.

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13. TANGIBLE ASSETS
Changes in property, plant and equipment and related accumulated depreciation during 2024
and 2023 is as follows:
Buildings for
own use
Furniture,
vehicles and other
property.
Total
Cost
Balances at 1 January 2024
117 205
16 592
133 797
Additions
673
564
1 237
Disposals by sale or by other means
(6)
-
(6)
Balances at 31 December 2024
117 872
17 156
135 028
Accumulated depreciation
Balances at 1 January 2024
42 173
8 684
50 857
Allocations
1 926
259
2 185
Transfers and other movements
Balances at 31 December 2024
44 099
8 943
53 042
Impairment losses
At 31/12/2024
-
651
651
Net tangible assets
Balances at 31 December 2024
73 773
7 562
81 335
Cost
Balances at 1 January 2023
115 950
16 377
132 327
Additions
1 255
215
1 470
Disposals by sale or by other means
-
-
Balances at 31 December 2023
117 205
16 592
133 797
Accumulated depreciation
Balances at 1 January 2023
40 239
8 350
48 589
Allocations
1 934
334
2 268
Transfers and other movements
-
-
-
Balances at 31 December 2023
42 173
8 684
50 857
Impairment losses
At 31/12/2023
-
651
651
Net tangible assets
Balances at 31 December 2023
75 032
7 257
82 289
At 31 December 2024, the balance of property, plant and equipment for own use for a gross
amount of EUR 32,474 thousand (31 December 2023: EUR 20,304 thousand) was fully
depreciated.
In accordance with the Institute's policy, all tangible assets are insured at 31 December 2024
and 2023.
The First Transitional Provision, section B) 6 of Bank of Spain Circular 4/2004 allowed any
item included in tangible assets to be valued at fair value at 1 January 2004. In order to carry
out this revaluation, ICO commissioned the corresponding appraisals of the properties used
for operations, which increased the value of ICO's fixed assets by EUR 53,106 thousand,
creating a revaluation reserve for the resulting capital gain, net of the tax effect. The updated
carrying amount was used as deemed cost at that date.
The revaluation reserve for this item amounts to EUR 17,216 thousand at 31 December 2024
(31 December 2023: EUR 17,216 thousand) (Note 20).

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The fair value of some of the entity's property, plant and equipment at 31 December 2024 and
2023, according to the categories in which they were classified, together with their
corresponding carrying amounts at those dates, are set out below:
Thousands of euros
2024
2023
Book value
Fair value
Book value
Fair value
Property, plant and equipment for own use
81 335
114 252
82 289
113 023
Real estate
72 275
105 192
74 577
105 192
Other
7 562
7 562
7 257
7 376
Property, plant and equipment under
construction
1 498
1 498
455
455
The fair value of property, plant and equipment shown in the table above has been estimated
as follows:
- For those assets for which an updated valuation by a Bank of Spain-authorised
appraiser is not available, the fair value included in the above table has been obtained
from estimates made by the entity taking into account market data on the evolution of
the price of tangible assets with similar characteristics to those of the entity.
- For assets for which there is an updated appraisal carried out by an appraiser
authorised by the Bank of Spain, the fair value has been taken as the value obtained
from the appraisal carried out in accordance with the provisions of OM/805/2003.
All properties for own use have been appraised by an entity included in the corresponding
register of the Bank of Spain, following the comparison method methodology, during 2024 and
2023.
14. INTANGIBLE ASSETS
Details of this item in the balance sheet at 31 December 2024 and 2023 relate exclusively to
other intangible assets.
Thousands of euros
Estimated service life
2024
2023
With indefinite service life
-
-
-
With a finite service life
3 years to 10 years
63 270
56 235
Total gross
63 270
56 235
Of which:
Internally developed
3 years
55 589
44 940
Other
10 years
7 681
11 295
Accumulated depreciation
(48 631)
(45 780)
Impairment losses
(2 137)
(2 137)
12 502
8 318
At 31 December 2024 and 2023, all the items included under this heading relate to computer
software. At 31 December 2024 the amount of fully amortised intangible assets is EUR 47,260
thousand (31 December 2023: EUR 44,773 thousand).

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15. TAX ASSETS AND LIABILITIES
The detail of the balance of Tax Assets and Liabilities at 31 December 2024 and 2023 is as
follows:
Thousands of euros
Assets
Liabilities
2024
2023
2024
2023
Current taxes:
877
22 236
3 971
1 439
Corporate income tax (Note 23)
-
21 577
2 247
-
VAT
877
659
11
24
Income tax (IRPF)
-
-
1 234
971
Social Security
-
-
479
444
Deferred taxes:
401 030
148 970
179 340
172 981
Impairment losses on loans and receivables
86 072
73 629
-
-
Cash flow hedge valuation (Note 21)
314 958
75 341
-
-
Reappraisal of real estate
-
-
15 932
15 932
Restatement of financial assets at fair value w/changes to other compreh.
inc. (Note 21)
-
-
163 408
157 049
401 907
171 206
183 311
174 420
The movements during 2024 and 2023 in deferred tax assets and liabilities are shown below:
Thousands of euros
Assets
Liabilities
2024
2023
2024
2023
Balance at beginning of year
148 970
174 345
172 981
153 641
Impairment losses on Loans and Receivables
12 443
(18 132)
-
-
Cash flow hedge valuation (Note 21)
239 617
(7 243)
-
-
Restatement of financial assets at fair value w/changes to other
compreh. inc. (Note 21)
-
-
6 359
19,340
Year-end balance
401 030
148 970
179 340
172,981
16. OTHER ASSETS AND OTHER LIABILITIES
The breakdown of this “Other Assets” in the accompanying balance sheet at 31 December
2024 and 2023 is as follows:
Thousands of euros
OTHER ASSETS
2024
2023
Other assets
13 668
6 590
Accruals
16 942
15 869
30 610
22 459
“Accruals" includes, among other items, the accrual of fees receivable by the Institute for the
management of the mechanisms of the Fondo de Financiación a Entidades Locales (Local
Authority Financing Fund) and for the management of the operations of the Fondo de
Financiación a Comunidades Autónomas (Autonomous Community Financing Fund) (Note
1.1). In 2024, the overall amount of these fees receivable by ICO is EUR 8,024 thousand per
annum (EUR 9,000 thousand in 2023), also recognised in the accompanying profit and loss
account for these amounts under "Fee and commission income" (Note 27).
Also included are the fees paid by ICO for the COVID guarantee for operations held by the
Institute (paid to the RDL12/95 Fund in accordance with the applicable regulations) and

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85
pending accrual in the Institute's profit and loss account (EUR 695 thousand at 31 December
2024 and EUR 1,690 thousand at 31 December 2023).
The composition of the balance of "Other liabilities" in the balance sheet at 31 December 2024
and 2023 is as follows:
Thousands of euros
OTHER LIABILITIES
2024
2023
Other liabilities
200
-
Accruals
53 214
55 958
53 414
55 958
The "Accruals" heading includes amounts accrued and pending on commissions payable to
financial institutions for the concepts of "2024 mediation facility rebate quota" amounting to
EUR 55 thousand (EUR 2,000 thousand in 2023). Also included are the fees for managing the
COVID and UKRAINE guarantees, which were charged to the RDL12/95 Fund (in accordance
with the applicable regulations) and are pending accrual in the Institute’s profit and loss
account (EUR 46,811 thousand at 31 December 2024 and EUR 49,706 thousand at 31
December 2023).
17. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE
The entire balance of this heading relates to foreclosed assets. None of the foreclosed assets
included under this heading at 31 December 2024 and 31 December 2023 arose from
financing related to land for real estate development, construction or property development.
The movement in the years ended 31 December 2024 and 2023 is shown below:
Thousands of euros
Cost
Impairment
Total
Balance at 1 January 2023
60 460
(60 460)
-
Additions
4
(4)
-
Withdrawals/Utilisations
(48 662)
48 662
-
Transfers
-
-
-
Balance at 31 December 2023
11 802
(11 802)
-
Additions
81
(81)
-
Withdrawals/Utilisations
(130)
130
-
Transfers
-
-
-
Balance at 31 December 2024
11 753
(11 753)
-
Impairment charges of EUR 81 thousand were recognised for these non-financial assets in
2024 (EUR 4 thousand in 2023).
Gains (losses) on the sale of non-current assets held for sale amounting to EUR 73 thousand
(EUR 2,764 thousand in 2023) were recognised in 2024 under "Gains (losses) on non-current
assets and disposal groups classified as held for sale not qualifying as discontinued
operations" in the accompanying profit and loss accounts.
Each year, the Institute’s management bodies approve the corresponding divestment plan for
these assets.

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In accordance with the provisions of Rule 60 of Bank of Spain Circular 4/2017, non-current
assets held for sale are classified into broad categories: land, distinguishing between urban,
developable and rural land, and buildings, distinguishing between residential, industrial and
tertiary uses. The appraisal companies, the methodology used in the appraisal of the assets
and the amount valued for each asset class per company/agency are reported below:
Thousands of € previous appraisal
Appraisal Company
Appraisal Method
6
ALIA TASACIONES
COMPARISON
31
COHISPANIA
COMPARISON
1,588
EUROVALORACIONES
COMPARISON
135
EUROVALORACIONES
COST
7
GESVALT
PRESENT VALUE OF RENTS
70
GRUPO TASVALOR
COMPARISON
71
VALTECNIC
COMPARISON
1,908
BUILDINGS FOR TERTIARY USE
Thousands of € previous appraisal
Appraisal Company
Appraisal Method
79
EUROVALORACIONES
COMPARISON
30
EUROVALORACIONES
DYNAMIC RESIDUAL
109
RURAL LAND
Thousands of € previous appraisal
Appraisal Company
Appraisal Method
2
EUROVALORACIONES
PRESENT VALUE OF RENTS
134
EUROVALORACIONES
COMPARISON
4
GRUPO TASVALOR
COMPARISON
140
URBAN AND DEVELOPABLE LAND
Thousands of € previous appraisal
Appraisal Company
Appraisal Method
4,046
EUROVALORACIONES
DYNAMIC RESIDUAL
44
EUROVALORACIONES
OTHERS
39
GRUPO TASVALOR
DYNAMIC RESIDUAL
4,129
TOTAL
6,286

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87
18. FINANCIAL LIABILITIES AT AMORTISED COST
The items comprising the balances of this caption in the accompanying balance sheets are
detailed below:
Thousands of euros
2024
2023
By type of counterpart
Deposits from Central Banks (Note 18.1)
-
327 075
Deposits from credit institutions (Note 18.2)
7 285 837
5 722 623
Customer deposits (Note 18.3)
630 150
368 001
Debt securities issued (Note 18.4)
21 865 199
16 920 632
Other financial assets (Note 18.5)
298 623
114 263
Money market transactions (Note 18.6)
-
95 702
30 079 809
23 548 296
18.1 Central Bank Deposits
In 2019 and 2020 financial years, ICO participated in several calls for LTROs and TLTROs of
the European Central Bank. The amount under this heading corresponds to these
transactions.
18.2 Deposits from credit institutions
The breakdown of the balance of this item in the balance sheets at 31 December 2024 and
2023, by type of transaction, is as follows:
Thousands of euros
2024
2023
By nature:
European Investment Bank loans
3 918 509
3 976 291
Interbank deposits
181 353
194 464
Loans from other financial institutions
2 153 623
1 375 112
Valuation adjustments (accruals/deferrals and hedges)
1 032 352
176 756
7 285 837
5 722 623
Interbank deposits mature within one year from 31 December 2024 and 2023, respectively.
European Investment Bank Loans have the following final maturity schedule:
Thousands of euros
2024
2023
Up to 1 year
825 441
584 470
Over 1 year up to 2 years
467 786
793 860
Over 2 years up to 3 years
139 984
445 124
Over 3 years up to 4 years
608 525
134 605
Over 4 years up to 5 years
42 101
574 544
Over 5 years
1 834 672
1 443 688
3 918 509
3 976 291

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88
The breakdown by maturity of "Loans from other financial institutions" is as follows:
Thousands of euros
2024
2023
Up to 1 year
78 771
78 750
Over 1 year up to 2 years
30 008
78 750
Over 2 years up to 3 years
503 393
30 000
Over 3 years up to 4 years
500 132
492 896
Over 4 years up to 5 years
-
500 000
Over 5 years
1 041 319
194 716
2 153 623
1 375 112
18.3 Customer deposits
The composition by sector of the balance of this item in the balance sheets at 31 December
2024 and 2023 is shown below:
Thousands of euros
2024
2023
By type of counterparty
Public Administrations
613 780
353 577
Other resident sectors (1)
9 228
12 566
Other non-resident sectors
-
-
Valuation adjustments - accruals and deferrals
7 142
1 858
630 150
368 001
(1) Of which, at 31 December 2024 and 2023, EUR 9,228 thousand and EUR 12,566 thousand are sight accounts, respectively.
At 31 December 2024 and 2023, the detail by nature of the balance recorded under "Public
Administrations" is as follows:
Thousands of euros
2024
2023
Contrato de Ajuste Recíproco de Intereses or C.A.R.I. (Reciprocal Interest
Adjustment Contract)
15 956
16 063
Public Administration Current Accounts and other items
340 451
337 514
State funds received associated with the RRM (note 18.5)
257 373
-
613 780
353 577
18.4 Debt securities issued
The breakdown of this heading at 31 December 2024 and 2023 is as follows:
Thousands of euros
2024
2023
Bonds and debentures issued
21 849 952
16 556 039
Valuation adjustments (*)
15 247
364 593
21 865 199
16 920 632
(*) Including transaction costs and valuation adjustments for accounting hedges

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The movements in bonds and debentures issued during the 2024 and 2023 financial years
are as follows:
Thousands of euros
2024
2023
Balance at beginning of year
16 556 039
13 351 201
Issues
21 980 591
24 024 547
Amortisations
(16 723 598)
(20 561 661)
Exchange rate differences
36 920
(258 048)
Year-end balance
21 849 952
16 556 039
Details of outstanding borrowings at 31 December 2024 and 2023 are shown below, grouped
by currency:
Thousands of euros
Number of
issues
2024
2023
Currency
2024
2023
74
49
US dollar
10 230 239
6 616 445
78
55
Euro
11 366 387
9 583 488
-
1
Swiss Franc
-
269 978
-
2
Australian Dollar
-
54 144
1
-
Pound Sterling
59 563
-
1
1
Yen
30 664
31 984
2
-
Yuan Renminbi
134 306
-
3
-
Turkish Lira
28 793
-
21 849 952
16 556 039
Details of each outstanding issuance can be consulted on the Institute's website (www.ico.es)
in the section "Investors - ICO Bonds - Benchmark issues".
In 2024, the total financial cost of borrowings, both in euro and in foreign currency, which is
recorded under "Interest expenses" in the accompanying profit and loss account, amounted
to EUR 1,022,598 thousand, representing an average annual interest rate of 5.15% (3.56%
with accounting hedges). In 2023, the financial cost amounted to EUR 878,209 thousand,
representing an average annual interest rate of 4.70% (2.58% with the effect of accounting
hedges) (Note 25).
No gains or losses on financial transactions arising from the purchase of financial liabilities at
amortised cost were recognised in 2024 (also in 2023), included under "Gains and losses on
derecognition of assets and liabilities not measured at fair value through profit or loss" in the
accompanying profit and loss account (Note 28).
18.5 Other financial liabilities
The breakdown of the balance of this item in the accompanying balance sheets at 31
December 2024 and 2023 is as follows:
Thousands of euros
2024
2023
FOMIT - Renove Turismo
5 091
13 045
Préstamos Renta Universidad
60 494
60 888
Futur E
-
152
RRM Funds
192 627
-
Other Funds and other items
40 411
40 178
298 623
114 263

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In 2024, ICO started channelling RTRP funds through its various facilities. For this purpose, it
receives funds from the ministries which, in principle and until the corresponding asset
transactions are made available, are classified on the balance sheet as other (long-term)
financial liabilities. Once the asset operations associated with the Recovery and Resilience
Mechanism (RRM) are drawn down, the funds received are reclassified as liability loans
(Customer Deposits), in "mirror" operations. The funds received from the RRM that have not
yet been allocated to asset operations amount to a total of EUR 192,627 thousand at 31
December 2024. Funds received and allocated to RRM operations totalled EUR 257,373
thousand at 31 December 2024 (Note 18.3).
This heading also includes funds received by the Institute, which are repayable in accordance
with the regulations applicable to each. Detailed information on the mediation facilities
associated with each of these funds can be found on the Institute's website at www.ico.es.
The funds associated with the most important facilities are:
- FOMIT-Renove Turismo facility: the aim of this facility is to provide support for financial
projects aimed at the comprehensive renovation and modernisation of tourist
infrastructures and destinations.
- Préstamos Renta Universidad Facility: the aim of this facility is to provide loans linked
to the possession of a future income, to do postgraduate, Master's or doctoral studies
for the 2011-2012 academic year.
- FuturE Facility: This facility is designed to encourage projects aimed at supporting the
tourism sector in its commitment to sustainability, helping to reorient current tourism
activity from the perspective of sustainability and eco-efficiency, taking into account
environmental and sustainable development variables, with the aim of consolidating
the position of Spanish tourism at the forefront of the rational use of energy, the use of
renewable energies, the reduction of the water footprint, and waste management.
Unlike the Institute's other mediation facilities, which are financed by ICO by raising funds on
the market, the financial funds for these operations are provided directly by the State, through
accounts opened at the Institute in the name of the corresponding ministries. The balance of
these funds, given the mechanics of the operations, corresponds to the amount drawn down
by the operations executed and which are also included under the Institute's "Loans and other
receivables" heading (net amounts drawn down less the amounts amortised), so that this
amount plus the balance of the associated current account (which includes the available
balance of the aforementioned facilities) is always equal to the amount received by the Institute
for provisioning the facility.
18.6 Money market operations
This item includes repurchase agreements, all of which are repurchase agreements of
government debt securities.

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19. PROVISIONS
At 31 December 2024 and 2023, the detail of the balances of this caption in the accompanying
balance sheet is as follows:
Thousands of euros
2024
2023
Pension funds and similar obligations
910
836
Provisions for commitments and guarantees given
60 204
50 579
Other provisions
801 777
1 530 260
862 891
1 581 675
The breakdown of the balance of "Other provisions" in the accompanying balance sheets at
31 December 2024 and 2023 is as follows:
Thousands of euros
2024
2023
Royal Decree-Law 12/1995 Fund
759 166
1 507 275
Fund for recovered amounts BBVA
106
106
Prestige Facility Fund
8 364
8 326
EIG equity compensation fund (Note 10.3)
33 154
13 565
Other funds
987
988
801 777
1 530 260
Royal Decree-Law 12/1995 Fund
Royal Decree-Law 12/1995 of 28 December, published in the Official State Gazette of 30
December 1995, effective at 1 January 1996, established that Instituto de Crédito Oficial would
create, drawn from the resources of the State Loan referred to in paragraph 4 of number 1 of
the Council of Ministers Agreement of 11 December 1987, a Fund for a maximum amount of
EUR 150,253 thousand, earmarked for provisioning and charging, in accordance with the rules
in force for credit institutions, the amounts corresponding to non-performing loans and bad
debts which might arise in the future in the exercise of the functions listed in Note 1. Additional
Provision 4 of Law 66/1997 of 30 December on Fiscal, Administrative and Social Measures
established that, without prejudice to the application of the rules, the Council of Ministers or
the CDGAE may authorise the ICO to draw on the Special Provision Fund R.D.L. 12/95 for
losses arising in the exercise of its functions, provided that they have not been the subject of
a specific appropriation in the General State Budget. This Fund was created in 1996 and
recorded under the heading "Other provisions".
Those loans or transactions which, due to their terms and conditions, require the application
of this Fund are provisioned against it without affecting the Institute's profit and loss account.
As they are already provisioned through this Fund, the loans covered by it are therefore not
included in the calculation of the general and specific loan loss provision.
The Fund is credited, in addition to its initial allocation, with future allocations made by the
Instituto de Crédito Oficial through the application of surplus earnings and those made or
authorised by the State when assuming or offsetting losses or through other suitable systems.
The Fund is also credited with the amounts of recoveries obtained on loans provisioned or
declared written-off which were drawn from the Fund, which in 2024 and 2023 amounted to
EUR 72 thousand and EUR 29 thousand, respectively, with the returns obtained on the
management of the resources allocated to the Fund itself amounting to EUR 43,780 thousand
in 2024 and EUR 46,521 thousand in 2023. From 2023 onwards, this income, due to its nature,
is recorded as finance costs in the net interest income of the profit and loss account.

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In accordance with the provisions of Law 12/1996, of 30 December, on General State Budgets,
an initial amount of EUR 150,253 thousand was allocated to this Fund in 1997, drawn from
the Ordinary State Loan.
EUR 249,500 thousand was allocated in 2004, drawn from the State Loan to ICO, by
agreement of the Council of Ministers on 30 July 2004.
As a result of the COVID-19 health crisis and the implementation of State guarantee facilities
to support private sector financing, financial institutions pay guarantee commissions to ICO
which, in accordance with the procedures approved for this purpose, are recorded as direct
payments to the RDL 12/95 Fund. On the other hand, the necessary costs for the Institute's
procuring the management of this activity are also drawn from this fund. The purpose of these
allocations is to cover future defaults that may arise from the execution of the guarantees
granted and which under no circumstances may affect the Institute's assets (in the event of
insufficient funds, the State will provision the necessary amounts directly to the ICO).
The movements in 2024 and 2023 in this fund, which is included under "Other provisions" in
the accompanying balance sheet at 31 December 2024 and 2023, are as follows:
Thousands of euros
Balance at 1 January 2023
1 672 132
Interest income
46 521
State Contributions
-
Application of ICO 2022 profits
127 951
Loan recoveries (principal and interest)
-
Applications
(147)
Net credits from commissions on COVID facilities (and other State guarantee facilities)
(339 182)
Balance at 31 December 2023
1 507 275
Interest income
43 780
State Contributions
-
Application of ICO 2023 profits
-
Loan recoveries (principal and interest)
72
Applications
(34)
Net credits from commissions on COVID facilities (and other State guarantee facilities)
(791 927)
Balance at 31 December 2024
759 166
Fund for recovered amounts BBVA
Regarding this heading, under the Eleventh Additional Provision of Law 24/2001, of 27
December, on Tax, Administrative and Social Measures, in 2001 and 2002 the Institute used
part of its assets to cancel the overdue debt contracted by the State with the Institute as a
result of certain loans and guarantees granted by the former Official Credit Institutions and by
the Institute itself, with a State guarantee.
However, the management of the operations affected by the cancellation process has resulted
in ICO continuing to receive collections on these loans, which, following a prudent criterion,
are not generally recorded as income in the profit and loss account. For those accounted for
as income, there is a provision of EUR 106 thousand in 2024 (EUR 106 thousand at 31
December 2023).
Prestige Facility Fund
The Prestige Line Fund has its origin in RDL 7/2002, of 22 November, which authorises the
debiting to the Special Provisioning Fund RDL 12/95 of written-off amounts derived from the
Prestige loan facility, with credit to this specific provisioning fund.

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93
EIG equity compensation fund
The heading “EIG equity compensation fund” includes the provision recorded to adjust the
return on operations carried out through Economic Interest Groupings to their profitability
(Note 10.3). This provision has been recognised with a charge to “Tax of Profits” in the
accompanying profit and loss account, with a balance of EUR 33,154 thousand and EUR
13,565 thousand in 2024 and 2023, respectively (Note 10.3).
The movements in Provisions in 2024 and 2023 are as follows:
Thousands of euros
Provision for
taxes
Pension funds
and similar
obligations
Provisions for
contingent
liabilities and
commitments
Other
provisions
Total
Balances at 1 January 2023
-
770
59 396
1 704 589
1 764 755
Allocations
-
66
6 528
5
6 599
Recoveries
-
-
(15 466)
(270)
(15 736)
Use of funds
-
-
-
(22 764)
(22 764)
Transfers and other movements (1)
-
-
-
(151 300)
(151 300)
Exchange rate differences
-
-
121
-
121
Balances at 31 December 2023
-
836
50 579
1 530 260
1 581 675
Allocations
-
74
11 420
-
11 494
Recoveries
-
-
(1 848)
-
(1 848)
Use of funds
-
-
-
(34)
(34)
Transfers and other movements (1)
-
-
-
(728 449)
(728 449)
Exchange rate differences
-
-
53
-
53
Balances at 31 December 2024
-
910
60 204
801 777
862 891
(1) Transfers and other movements mainly consist of net credits to the RDL 12/95 Fund for the collection of commissions /
payment and recovery of bad debts, COVID-19 guarantees and other State guarantee facilities (EUR 748,109 thousand at
31 December 2024 and EUR 339,182 thousand at 31 December 2023) and for the provision to the EIG equity compensation
fund (Notes 10.3 and 23) (EUR 19,589 thousand at 31 December 2024 and EUR 13,527 thousand at 31 December 2023).
20. OWN FUNDS
A reconciliation of the carrying amount at the beginning and at the end of the 2024 and 2023
financial years in the caption "Shareholders' equity" in the balance sheets is presented below:
Thousands of euros
Capital
Revaluation
reserves
Other
reserves
Balance of
the
year
Total
Balance at 1 January 2023
4 314 687
18 126
925 172
127 951
5 385 936
Distribution of results
-
-
-
(127 951)
(127 951)
Other reserve movements
-
(910)
911
-
1
Balance for the year
-
-
-
240 215
240 215
Other movements
214
-
-
-
214
Balance at 31 December 2023
4 314 901
17 216
926 083
240 215
5 498 415
Distribution of results
-
-
240 215
(240 215)
-
Other reserve movements
-
(911)
911
-
-
Balance for the year
-
-
-
239 796
239 796
Other movements
-
-
-
-
-

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94
Balance at 31 December 2024
4 314 901
16 305
1 167 209
239 796
5 738 211
The line "Other movements" mainly records the annual equity contribution, in accordance with
the provisions of Law 24/2001 of 27 December, with no amount in 2024 (EUR 214 thousand
in 2023). In accordance with the Eleventh Additional Provision of said law, the amounts
recovered after the cancellation of the debts engaged by the State with ICO pertaining to
certain credits and guarantees granted by the former Official Credit Institutions and by the
Institute itself will become part of the Institute's assets.
21. OTHER ACCUMULATED OVERALL PROFIT (valuation adjustments)
The balance of this heading, broken down by gross amount and net of the tax effect, is as
follows:
Thousands of euros
2024
2023
Gross
Tax Effect (Note
15)
Net
Gross
Tax Effect (Note
15)
Net
Financial assets at fair value,
through other comprehensive
income (Note 9)
544 696
(163 409)
381 287
523 497
(157 049)
366 448
Cash flow hedging of assets and
liabilities
(1 049 860)
314 958
(734 902)
(251 136)
75 341
(175 795)
TOTAL
(505 164)
151 549
(353 615)
272 361
(81 708)
190 653
The balance of this heading corresponds to the items “Financial assets at fair value, through
other comprehensive income” and “Cash flow hedging derivatives” in the accompanying
balance sheets. The first account includes the net amount of the tax effect of changes in the
fair value of assets classified at fair value through other comprehensive income, which, as
indicated in Note 2.2.4, should be classified as an integral part of the Institute's equity. The
second reflects changes in the fair value of cash flow hedging instruments.
Thousands of euros
2024
2023
Opening balance
190 653
128 627
Variation in the fair value of financial assets at fair value, through other
comprehensive income (Note 9)
14 839
45 126
Reclassification of financial assets at fair value, through profit or loss
Cash flow hedges
(559 107)
16 900
Closing balance
(353 615)
190 653
22. FINANCIAL GUARANTEES GIVEN AND CONTINGENT COMMITMENTS
These headings include the amounts that Instituto de Crédito Oficial must pay on behalf of
third parties in the event that those originally obliged to pay end up defaulting, in response to
commitments assumed in the course of its normal business (financial guarantees granted), as
well as the amounts made available by third parties (contingent commitments).

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95
The breakdown of the balance of this heading at 31 December 2024 and 2023 is shown below:
Thousands of euros
2024
2023
Guarantees granted
Financial guarantees
749 994
553 986
749 994
553 986
Contingent commitments
Available from third parties:
From credit institutions
1 016 461
471 864
From the Public Administration sector
832 972
328 191
From other resident sectors
1 035 127
1 451 115
From non-resident sectors
275 755
549 496
Other contingent commitments
79 635
81 395
Securities subscribed pending disbursement:
1 621 933
1 404 933
4 861 883
4 286 994
5 611 877
4 840 980
Income from guarantee instruments (guarantees and sureties) is recorded under "Fee and
commission income" in the accompanying profit and loss account (note 27).
23. TAX SITUATION
The Institute has been subject to corporate income tax under the general regime since 1999
(previously exempt under specific regulations).
The reconciliation of the accounting results for 2024 and 2023 to the taxable income for
corporate income tax purposes is as follows:
Thousands of euros
2024
2023
Pre-tax accounting profit
330 823
336 891
Permanent differences
For expenses on foreign taxes paid
1 218
1 049
For tax loss carryfowards from investees
(90 469)
(58 105)
241 572
279 835
Temporary differences:
For impairment losses and other non-deductible provisions
82 280
13 896
Reversal of temporary differences arising in other periods
(40 806)
(74 285)
41 474
(60 389)
Tax base
283 046
219 446
Full quota (30%)
84 914
65 834
Deductions and allowances
(1 034)
(802)
Withholdings and payments on account
(81 633)
(86 609)
Payable / (repayable) quota
2 247
(21 577)
Income tax expense
71 438
83 149
Adjustments to income tax expense due to allocation to investee bases (Note 19)
19 589
13 527
Income tax expense for the year
91 027
96 676

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96
The year includes the allocation of the tax loss carryforwards of the EIGs in which ICO holds
different proportions of capital, amounting to EUR 90,469 thousand in 2024 (allocation of EUR
58,105 thousand in tax losses in 2023). The allocation of the tax bases has been carried out
according to the information provided by the entities. It has been decided to allocate these
items in the same year as the year in which the EIG balance sheets are closed.
There are no tax loss carryforwards to be offset for tax purposes at the end of 2024.
There are no deductions for tax incentives applied in 2024 and 2023. The deduction for
international double taxation (input tax) amounts to EUR 1,034 thousand and EUR 802
thousand, respectively. There are no international double taxation deductions to be offset at
the end of 2024.
There have been no changes in the depreciation methods for fixed assets for exceptional
reasons.
Taxes and other tax liabilities applicable to the Institute for the last four financial years are
subject to audit by the tax authorities.
Due to possible interpretations of the tax regulations applicable to certain transactions,
basically related to the new corporate income tax liability following the phase of full exemption
from corporate income tax, there may be certain contingent tax liabilities. However, in the
opinion of the Institute's tax officials, the possibility of these liabilities materialising is remote
and, in any case, the tax liability that might arise from them would not significantly affect the
accompanying financial statements.
Law 7/2024 of 20 December has been published, establishing a supplementary tax to ensure
an overall minimum level of taxation for multinational groups and large domestic groups,
applicable retroactively for years beginning on or after 31 December 2023.
ICO, together with its subsidiaries, as a large group of which the bank is the ultimate parent
entity, is subject to this supplementary tax.
Likewise, the Entity has not had any impact on current or deferred taxes related to the
application of this new regulation.
24. INTEREST INCOME
The breakdown of interest and similar items for 2024 and 2023 is as follows, according to their
origin:
Thousands of euros
2024
2023
Financial assets at fair value, through other comprehensive income
35 586
1 226
Financial assets at amortised cost
1 275 919
994 937
Derivatives, hedge accounting
93
(466)
Other assets
3 370
254
Interest income on liabilities
3 117
6 330
1 318 085
1 002 281

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97
25. INTEREST EXPENSES
The breakdown of the balance of this caption in the profit and loss account for the years 2024
and 2023 is as follows:
Thousands of euros
2024
2023
Financial liabilities at amortised cost
Derivatives, hedge accounting
Other liabilities
1 327 846
(308 202)
43 780
1 100 062
(437 877)
46 521
Interest expense on assets
92
3 326
1 063 516
712 032
26. DIVIDEND INCOME
All the returns obtained for this concept relate to the equity portfolio, amounting in 2024 and
2023 to EUR 20,147 thousand and EUR 16,964 thousand, respectively.
27. FEE AND COMMISSION INCOME AND EXPENSES
The breakdown of the balance of this caption in the profit and loss account is as follows:
Thousands of euros
2024
2023
Commission income
For contingent liabilities
7 369
8 257
Availability commissions
7 828
8 444
Management fees for COVID guarantees and other State guarantees
8 037
7 726
Other commissions
17 027
16 925
40 261
41 352
Commission expenses
For signature risk
(3 279)
(4 816)
Other commissions
(4 045)
(4 651)
(7 324)
(9 467)
Net commissions for the year
32 937
31 885
The heading for income from "Other commissions" includes an amount of EUR 8,024
thousand in fees from the Autonomous Community Financing Fund and the Local Authority
Financing Fund for the management of both Funds (EUR 9,000 thousand at 31 December
2023) (Note 16).

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98
28. GAINS OR LOSSES FROM DERECOGNITION OF FINANCIAL ASSETS AND
LIABILITIES NOT MEASURED AT FAIR VALUE, THROUGH PROFIT OR LOSS, NET
The breakdown of the balance of this caption in the profit and loss account, according to the
origin of the items comprising it, is as follows:
Thousands of euros
2024
2023
Financial assets at fair value, through other comprehensive income (Note 9)
-
(20 946)
Financial assets at amortised cost, loans and receivables (Note 10.3)
(1,535)
(500)
Financial assets at amortised cost, debt securities (Note 10.1)
-
-
Financial liabilities at amortised cost (Note 18.3)
-
-
(1 535)
(21 446)
29. GAINS OR LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR
TRADING, NET
The breakdown of the balance of this caption in the profit and loss account, according to the
origin of the items comprising it, is as follows:
Thousands of euros
2024
2023
Trading derivatives (Note 7)
(818)
940
(818)
940
Following the entry into force of IFRS 13 (1 January 2013), the Institute incorporated the
corresponding valuation adjustment for counterparty and own credit risk in the valuation of
derivative instruments (CVA-DVA). The adjustment made for this item (included under this
heading) at 31 December 2024 amounted to a loss of EUR 1,345 thousand (loss of EUR 427
thousand at 31 December 2023).
30. GAINS OR LOSSES FROM ASSETS AND LIABILITIES MANDATORILY AT FAIR
VALUE, THROUGH PROFIT OR LOSS, NET
The breakdown of the balance of this caption in the profit and loss account is as follows:
Thousands of euros
2024
2023
Equity instruments at fair value through profit or loss (Note 8)
-
-
-
-
31. GAINS OR LOSSES RESULTING FROM HEDGE ACCOUNTING, NET
The breakdown of the balance of this caption in the profit and loss account is as follows:
Thousands of euros
2024
2023
Hedging derivatives (Note 11)
45 580
45 568
45 580
45 568

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99
This item includes the results of changes in the fair value of both hedges and hedged items.
32. OTHER OPERATING INCOME AND OTHER OPERATING EXPENSES
The breakdown of the balance of "Other operating income" and "Other operating expenses"
in the profit and loss account is as follows:
Thousands of euros
OTHER OPERATING INCOME
2024
2023
Income from the operation of real estate
513
507
Other concepts
534
574
1 047
1 081
Thousands of euros
OTHER OPERATING EXPENSES
2024
2023
Other concepts
-
-
-
-
33. STAFF COSTS
The breakdown of the balance of this item in the profit and loss account for 2024 and 2023 is
as follows:
Thousands of euros
2024
2023
Wages and salaries
20 824
19 106
Social security contributions
5 497
4 871
Other expenditure
1 838
1 471
28 159
25 448
The number of employees of the Institute at 31 December 2024 and 2023, distributed by
occupational category and gender, was as follows:
Distribution of staff
Men
Women
2024
2023
2024
2023
Management
8
7
8
7
Supervisors and technicians
124
126
172
174
Administrative staff
5
5
52
50
137
138
232
231

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The average number of employees of the Institute in the financial years 2024 and 2023,
distributed by occupational category and gender, was as follows:
Average distribution of staff
Men
Women
2024
2023
2024
2023
Management
8
8
8
7
Supervisors and technicians
131
121
177
165
Administrative staff
5
5
53
51
144
134
238
223
NOTE: Since the signing of the 5th Collective Agreement (published in the Official State Gazette of 24 October 2008), general
services staff have been integrated into the administrative staff occupational group.
The average number of Institute employees in 2024 with a disability of more than 33% is 5
persons (6 persons in 2023).
Remuneration and other benefits of the General Council
During the 2024 and 2023 financial years, the Institute recorded in the profit and loss account
EUR 101 thousand and EUR 111 thousand (under "Other administrative expenses"),
respectively, for remuneration accrued by its General Council for salaries, allowances and
other remuneration. These allowances were paid to the Treasury, in accordance with the
applicable regulations in force, in the case of members of the General Council with the status
of Senior Civil Servants.
The remuneration received by the Institute’s Chairman and Senior Management during the
2024 and 2023 financial years is as follows:
2024 Financial Year:
Salary remuneration
Thousands of euros
Other
No. of persons
Fixed
Variable
Remuneration
Thousands of
euros
Total
Thousands of euros
5
692
84
13
788
2023 Financial Year:
Salary remuneration
Thousands of euros
Other
No. of persons
Fixed
Variable
Remuneration
Thousands of
euros
Total
Thousands of
euros
6
732
101
16
849
At 31 December 2024 and 2023 there were no loans granted to the executive members of the
Institute's General Council. At 31 December 2024, the loans granted under the Institute's
internal staff loan regulations had an outstanding balance of EUR 15,376 thousand and the
average interest rate was 2.51% (31 December 2023: EUR 14,686 thousand with an average
interest rate of 2.51%).
In addition, as of that date, no pension or life insurance obligations had been incurred in
respect of former or current members of the General Council.

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34. OTHER ADMINISTRATION COSTS
The breakdown of the balance of this caption in the profit and loss account is as follows:
Thousands of euros
2024
2023
Property, plant and equipment
867
986
Computing
5 915
6 177
Communications
2 605
2 469
Advertising and publicity
2 049
382
Contributions and taxes
2 236
2 069
Other administrative expenses
7 274
7 105
20 946
19 188
Audit costs
The audit of the financial statements is carried out by the Intervención General de la
Administración del Estado - IGAE [General Comptroller of the State Administration] and,
therefore, there is no remuneration to the auditors for this concept as they are assumed by
the comptroller itself (Ministry of Finance).
The amount invoiced by companies using the Forvis Mazars brand (which audited the 2024
and 2023 financial years, by virtue of a contract entered into with the IGAE for the provision of
a collaboration service in the auditing of annual accounts) for the provision of audit-related
services amounting to EUR 11.3 thousand (EUR 5.65 thousand for the audit services of the
individual annual accounts and EUR 5.65 thousand for those of the consolidated accounts).
The amount invoiced for non-audit services during the 2024 financial year amounted to EUR
119.8 thousand, excluding taxes (EUR 115.9 thousand in the 2023 financial year).
35. FAIR VALUE
As mentioned above, financial assets are recognised in the balance sheet at fair value, except
for loans and other receivables and equity instruments whose market value cannot be reliably
estimated.
Similarly, financial liabilities are recognised in the balance sheet at amortised cost, except for
those included in the trading portfolio.
Part of the assets recognised under "Loans and receivables" and the liabilities recognised
under "Financial liabilities at amortised cost" in the balance sheet at 31 December 2024 and
31 December 2023 are at variable rates, with periodic interest rate reviews, and therefore their
fair value as a result of movements in market interest rates is not significantly different from
that recognised in the Institute's balance sheet. On the other hand, the fair value of the assets
and liabilities under these headings referenced at a fixed rate has been obtained by applying
a weighted average maturity and a weighted average rate, through which the fair value is
calculated by means of a discounted cash flow. The fair value of the total assets and liabilities
under these headings at 31 December 2024 and 2023 is as follows:
Thousands of euros
Book value
Fair value
ASSETS
2024
2023
2024
2023
Financial assets at amortised cost
30 804 340
27 204 578
31 240 789
27 466 132
LIABILITIES
Financial liabilities at amortised cost
30 079 809
23 548 296
30 217 738
23 628 324

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The fair value has been calculated in all cases, both in 2024 and 2023, taking as a reference
the implied curves of the money and government bond markets.
36. TRANSACTIONS WITH SUBSIDIARIES, JOINTLY CONTROLLED ENTITIES AND
ASSOCIATES
The balances held at 31 December 2024 and 2023 by the Institute with Subsidiaries, Jointly
Controlled Entities and Associates are as follows:
AXIS
- Customer deposits (financial liabilities at amortised cost): EUR 61,321 thousand at 31
December 2024 (EUR 55,544 thousand at 31 December 2023);
- Dividend income of EUR 19,484 thousand.
CERSA
- Customer deposits (financial liabilities at amortised cost): EUR 193,568 thousand at
31 December 2024 (EUR 239,393 thousand at 31 December 2023).
COFIDES
- Dividend income of EUR 490 thousand.

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INSTITUTO DE CRÉDITO OFICIAL
MANAGEMENT REPORT
Financial Environment and Policy Framework
The general economic and financial situation in which the ICO Group conducts its business is
a highly significant factor insofar as it defines the context in which it acts. This is also because
it largely determines the guidelines that the Group adopts to provide the best response to the
needs of the Spanish economy and its productive fabric in each circumstance.
The Spanish economy grew faster than expected and accelerated its pace of expansion
compared to 2023, despite the prevalent uncertainty
In 2024 as a whole, the Spanish economy accelerated its growth rate to 3.2%, above its 2.7%
growth observed in 2023 and above expectations at the beginning of 2024. Spanish GDP
growth again stood out in a context in which the major European economies featured weak
growth and even the contraction of activity, such as that experienced in Germany. Thus, as
Spain had already reached 2019 output level in 2022, our country has led economic growth
among the main Eurozone economies from 2019 to today, amidst a context of great
uncertainty, with several conflicts in the vicinity of Europe, a stressed energy market and
weakness in the evolution of international trade. Moreover, although in the second half of 2024
interest rates started to decline, the monetary policy stance has remained tight.
As indicated, Spanish GDP continued to grow at a rate clearly above that observed in the rest
of the large Eurozone economies and the Eurozone aggregate itself, whose GDP grew by
0.4% in 2023 and 0.7% in 2024. As a result, the Spanish economy is showing a greater
capacity to adapt to the challenges arising from the current economic situation, continuing to
perform very well economically despite being subject to very similar conditions to those of the
rest of the Eurozone.
Moreover, the outlook for 2025 and 2026 suggests that Spain will continue to grow faster than
the rest of the large Eurozone economies. According to the IMF's January 2025 updated
forecast, the Spanish GDP will grow by 2.3% in 2025 and 1.8% in 2026, higher than the large
Eurozone countries and the Eurozone's own aggregate figure, whose growth forecast is 1.0%
in 2025 and 1.4% in 2026.
A more specific analysis of Spanish growth during 2024 shows that the expansion of activity
was mainly driven by domestic demand, although the foreign sector continued to make a
positive contribution. Within domestic demand, both consumption and investment increased
their contribution to growth and made positive contributions. Private consumption rose more
than in 2023, propped up by improved purchasing power and a strong labour market, while
public consumption also maintained high growth. The public consumption figures were
influenced by the increased deployment of the Recovery, Transformation and Resilience Plan
financed by Next Generation EU funds, which also had a significant influence on the evolution
of investment, which as mentioned above made a larger contribution than in the previous year.
During 2024, ICO continued to participate in the deployment of these European funds. These
investment operations, in addition to their immediate effect, are expected to have a structural
effect that will continue to have a positive impact for several years to come. The momentum
of the external sector was due to the resilience of trade in goods, the remarkable recovery of
tourism and the dynamism of trade in non-tourism services.
In the labour market, job creation continued during 2024. According to data from the Active
Population Survey (APS), 468,100 more people were employed in the fourth quarter of 2024
than in the fourth quarter of 2023, equivalent to a 2.2% increase in employment. The number
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of employed persons reached a new all-time high (21,857,900 employed persons in the fourth
quarter of 2024). In parallel, the unemployment rate continued to fall in 2024 and stood at
10.6% at the end of the year, down from 11.8% in Q4 2023, with the total number of
unemployed falling to 2,595,500, 265,300 fewer than a year earlier (in relative terms the
decline was 9.3%) and a new low at the end of the year since 2007. Looking at the number of
workers affiliated to Social Security, in 2024 there was an increase of 501,952 affiliates, which
is equivalent to an increase of 2.4%, reaching 21,337,962 affiliates, the highest figure in the
entire historical data series. The number of unemployed registered with the public employment
services also declined during 2024, with 146,738 fewer registered unemployed than a year
earlier, a rate of decrease of 5.4%, bringing the total number of registered unemployed in
December 2024 to 2,560,718, also the lowest since 2007.
During 2024 Spain has had to deal with the harsh effects of a climate catastrophe caused by
torrential rains that mainly affected the province of Valencia during the autumn of 2024. In
addition to the horrible loss of life, the natural disaster caused substantial material losses, and
coordinated efforts are being made by all public administrations to help mitigate the damage
and rebuild the damaged structures as quickly as possible. This catastrophe, according to
Bank of Spain estimates, could have detracted between 0.1 and 0.2% from quarterly GDP
growth in the fourth quarter of 2024, although this would be a transitory impact that would be
offset in the first months of 2025 by the fiscal impulse from the various support measures
approved. ICO has participated prominently in these efforts, in particular with the deployment
of specific guarantee programmes, in coordination with the other institutions.
All in all, Spain was able to accelerate its growth momentum in 2024 in a context that continued
to be characterised by uncertainty and weak growth in its immediate environment. This
positive performance continued to be the result of growth with a positive contribution from both
domestic demand and the external sector, reflected, among others, in a dynamic labour
market, ample financing capacity of the Spanish economy and a decline in both public and
private indebtedness relative to the GDP.
Inflation continued to moderate during 2024
Throughout 2024 inflation continued to show a moderating trend, although there have been
ups and downs in price developments as a result of the comparative effect between individual
months. In 2024 as a whole, prices increased by 2.8% compared to the previous year, when
they had risen by 3.5%. The moderation of inflation is even more noticeable when looking at
what happened in 2022, when prices grew by 8.4%. Core inflation also decelerated in 2024 to
2.9%, broadly in line with general inflation, but well below the 6.0% increase in core inflation
in 2023. This generalised tapering off of price increases has been influenced by the lower
inflationary pressure from energy and commodities, the measures implemented by the
government to alleviate inflation and the monetary policy of the European Central Bank, which,
despite applying some interest rate cuts in 2024, held firm to a restrictive monetary policy
during the year. In the Eurozone as a whole, inflation was also on a decelerating trend without
yet reaching the 2% target, with average inflation standing at 2.4% in 2024, down from 5.4%
in 2023.
The forecasts of the main organisations, both for Spain and for the Eurozone as a whole,
estimate that in 2025 inflation will be in line with the monetary policy target (2% in the medium
term). Moreover, institutions such as the European Central Bank expect inflation not only to
reach the target, but to stabilise at that target in the medium term. However, all forecasts are
equally uncertain about these projections, with a variety of risks that could disrupt the actual
materialisation of these forecasts.
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The ECB has approved several interest rate cuts
The Governing Council of the European Central Bank (ECB) intensified during 2024 the
normalisation process initiated in previous years. Thus, following the cycle of interest rate
hikes, it kept interest rates unchanged between September 2023 and June 2024, when, in
view of the gradual convergence of inflation towards the 2% medium-term target, it decided to
cut interest rates for the first time. This rate cut in June 2024 was followed by three more in
2024. Following these rate cuts, the deposit facility, which is the rate at which the ECB has
guided its monetary policy stance of late, ended 2024 at 3.0%, compared to the 4.0% where
it ended in 2023.
At the beginning of 2025 the ECB decided on a further rate cut and it is expected that this cut
may be followed by several more during 2025. These have come as the ECB expects inflation
for the Eurozone as a whole to be at the 2% target in 2025 and to remain around that target
over the medium term. In any case, the ECB Governing Council maintains that it will continue
to apply a data-dependent approach to the determination of its monetary policy.
In addition to the interest rate cuts, the process of reducing the ECB's balance sheet was
intensified in 2024, with all amounts of refinancing operations with financial institutions being
repaid in full during 2024 and the balance sheet reduction intensifying via the redemption of
maturing amounts of ECB-owned debt. In 2025, the balance sheet reduction is expected to
continue, although it historically remains at a high level.
The deployment of European funds continued in 2024
The Government of Spain continued, in 2024, the management of European funds from the
Next Generation EU (NGEU) instrument through the Recovery, Transformation and Resilience
Plan (RTRP). The RTRP envisages a wide range of investments and reforms which, in
addition to the quantitative impact of the investments themselves, are expected to have a
structural and qualitative impact on the very structure of the Spanish economy.
According to data published by the Spanish Government, at 31 December 2024, EUR 79,854
million had been assigned to various published calls, of which the vast majority (EUR 77,419
million) had already been committed. EUR 47,616 million of this total amount is for calls for
proposals that have been resolved. This progress continued at a good pace in 2024 (by the
end of 2023, the total calls issued amounted to EUR 59 billion while the calls decided stood
at EUR 33 billion).
ICO is part of the entities in charge of the implementation of the RTRP, in particular part of the
Addendum approved by the European Commission in October 2023. The Institute is focusing
on supporting SMEs, strengthening investments in the green and social areas, as well as key
future areas in the digital transition.
Business rates were lowered in 2024 in parallel with cuts in official interest rates
The ECB's monetary policy was reflected in the evolution of new lending rates, which followed
a clear downward trend. The lowering of new business rates, in addition to the clear effect of
making financing cheaper, is causing an increased flow in new credit flows, with this effect
being particularly evident from the second half of 2024 onwards. The average interest rate
applied to companies in transactions of less than EUR 1 million, which can be taken as an
approximation of the rate applied to SMEs, fell from 5.28% in December 2023 to 4.07% in
December 2024. In any case, there has been a generalised reduction in the interest rates
applied, irrespective of the size of the transactions and their maturity.
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These interest rate changes were reflected in the volume of financial sector activity during
2024, with new business lending operations rising by 16.0% in 2024 compared to 2023, when
there was a 3.4% decline in the volume of new business lending compared to 2022. The rate
of transactions of under one million grew faster, from 11.9% in 2023 to 16.0% in 2024 while
those over one million went from a 17.6% drop in 2023 to a 16.0% growth in 2024.
This increase in new business was also reflected in total cumulative lending. The outstanding
balance of total credit to enterprises at the end of 2024 was 1.0% higher than that at the end
of 2023, when it had been 2.1% lower than the rate of the previous year.
The doubtful assets ratio showed a slight downward trend in 2024
The doubtful assets ratio of Spanish credit institutions trended gently downwards throughout
2024. In November 2024 (latest available data) it stood at 3.38%, down from 3.54% in
December 2023. This development is explained by a decrease in the volume of credit
classified as doubtful, in parallel with an increase in the volume of total credit. With regard to
credit to production activities, the doubtful assets ratio stood at 3.98% in September 2024
(latest available data), also down from 4.06% in December 2023.
Banks' perceived and expected demand for corporate credit in the bank lending survey
increased, especially in the second half of 2024. This was influenced by the easing of financial
conditions applied by banks, particularly in the second half of the year.
In this new context of lower interest rates, although still far from pre-2020 interest rates, ICO
will continue to offer a wide range of products to the Spanish productive fabric. Through its
wide range of intermediary entities, the Institute will continue to offer advantageous conditions
so that financing continues to flow towards the productive fabric, while still providing direct
financing through its different modalities and broadening the focus towards smaller
companies, with special emphasis on the priority activities in accordance with its frameworks
of reference and its strategy, complemented by the Addendum approved in September 2024.
It will also continue to manage the RTRP products that it is responsible for channelling into
the economy, using public-private partnership mechanisms.
Activity
In accordance with its Articles of Association, the purposes of ICO are to act as the support
and promotion of economic activities that contribute to the growth and improvement of the
distribution of national wealth and, in particular, those which, due to their social, cultural,
innovative or ecological importance, deserve to be encouraged. In order to achieve these
aims, Instituto de Crédito Oficial shall fully comply with the principles of financial equilibrium
and the adequacy of means and ends.
To this end, the Institute continues to support the Spanish productive fabric through a wide
range of products, prioritising long-term financing, internationalisation and investments aimed
at digital transformation, sustainability and social and territorial cohesion. In this way, ICO
flexibly responds to the needs and challenges posed by the different economic scenarios, with
the aim of contributing to sustainable growth, job creation and wealth distribution.
To meet these objectives, ICO acts in two ways: as a National Promotional Bank, granting
financing to companies, SMEs and the self-employed both in Spain and internationally, and
as a State Financial Agency: Management of funds and guarantees on behalf of the State (off-
balance sheet operation of the Institute).
All the initiatives carried out by the Institute in 2024 are part of its 2022-2027 Strategy and
take as a reference the EU Financial Framework 2021-2027 and the Recovery,
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107
Transformation and Resilience Plan, which structures the Government's economic policy
around the green and digital transition, social and regional cohesion and equality.
Three years after the implementation of the ICO Group's Strategy 2022-2027, new initiatives
and challenges have arisen that have prompted the definition of an addendum to the Strategy
that defines the action plan for a non-cyclical ICO, as opposed to the counter-cyclical ICO that
has produced such good results in recent years, identifying opportunities to mitigate market
failures and reorienting the Group's business model towards a stage of sustained growth.
For this reason, the General Council of 26 September 2024 approved the Addendum to the
current ICO Group Strategy, which includes new initiatives derived from the new
macroeconomic environment of growth. It also integrates the management of the EU Next
Generation funds assigned to ICO in the second phase of the Recovery Plan. The activity
associated with these funds represents a strong increase in the ICO Group's activity to
underpin the expansionary phase of the Spanish economy.
The Addendum to the ICO Group Strategy 2022-27 aims to deepen some of its initiatives by
incorporating actions that are either already being carried out, such as the channelling and
management of the funds of the Recovery and Resilience Mechanism (RRM), or to increase
ICO's proximity to the business fabric at times of an economic growth cycle and that respond
to the mitigation of certain market failures with a negative impact on business financing.
In this sense, the focus has been placed on some targets for action such as unbanked
companies; companies with high growth potential, but subject to financing restrictions; or
companies in need of intangible financing. In addition, situations of under-financing will be
addressed for different reasons such as accessibility to the housing market or the financing of
certain investment projects abroad through State Funds.
During the last quarter of 2024, the Institute deployed the facilities articulated in relation to the
loans of the addendum to the Recovery, Transformation and Resilience Plan (PRTR), in
accordance with the terms and conditions regulated by the agreement of the Council of
Ministers dated 27 February 2024, as amended by the subsequent agreement of the Council
of Ministers of 28 November 2024. The facilities managed by ICO as executing entity (ICO-
Green Facility, ICO-Business and Entrepreneurs, and ICO-Housing Facility) are aimed at
financing investment projects that favour the two-fold green and digital transition of companies,
thereby reinforcing their competitiveness. Specific facilities have also been put in place to
increase the stock of public social rented housing.
In addition, in the second phase of the Recovery Plan, the management of the Next Tech
Fund, endowed with EUR 4 billion, ICO is collaborating, via AXIS, with SETT (Sociedad
Española para la Transformación Tecnológica), the Spanish government agency driving
technology transformation. This cooperation is currently framed within Spain's contribution to
the European Tech Champions Initiative.
As a National Promotional Bank, the Institute has a comprehensive catalogue of bank
financing products, guarantees and complementary financing aimed at all types of companies
and entities, adapted to their needs and designed to boost their activity both in Spain and in
international markets.
This offer takes the form of different instruments designed to accompany and support Spanish
companies, which are articulated through two fund distribution mechanisms: ICO mediation
facilities in collaboration with credit institutions operating in Spain and financing and guarantee
programmes in which the Institute acts directly with clients.
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The total volume of new financing and guarantees issued by the ICO to companies,
entrepreneurs and regional governments in 2024 amounts to EUR 7,206,739 thousand.
The volume of loans drawn down through the various ICO mediation facilities in 2024 totalled
EUR 3,050,116 thousand through 18,695 operations, 67% of which went to micro-SMEs
(companies with up to nine employees) and 26% to loans of EUR 25,000 or less.
The design of the ICO mediation facilities is based on the two strategic areas of action
differentiated according to the place where the investment is carried out:
o Domestic: to finance business activities and investment projects related to activity in
Spain. In 2024, 17,976 operations were granted, amounting to EUR 2,034,027
thousand, 67% of the total amount allocated to the mediation lines.
o International: these facilities are aimed at financing the internationalisation and export
activity of Spanish companies. In 2024, 719 operations were granted, amounting to
EUR 1,016,089 thousand on the various facilities.
In terms of direct activity, during 2024 ICO complemented financing through loans and credits
and the issuance of guarantees with the acquisition of other corporate debt instruments.
Specifically, bonds issued by Spanish companies were purchased to facilitate the financing of
their medium and long-term investment plans (corporate bonds); project bonds, as a financing
instrument linked to large infrastructure operations; and corporate bonds and promissory
notes issued through the Alternative Fixed Income Market (MARF), aimed at providing issuers,
especially SMEs, with access to financing to cover their short and medium-term liquidity
needs.
Through all these forms of direct financing and guarantees, funds have been made available
and guarantees have been issued for an amount of EUR 4,156,623 thousand in 2024, helping
to meet companies’ investment and liquidity needs and continuing to promote large long-term
investment projects, both in Spain and abroad, as a complement to private initiatives. The
detail of the volumes of direct activity made available to the companies is as follows:
o Through direct banking activity, loans and credits amounting to EUR 2,266,943
thousand were drawn down and guarantees amounting to EUR 341,130 thousand
were issued.
o Through complementary direct activity, bonds issued by companies with medium and
long-term maturities were acquired for EUR 573,555 thousand and, in the short term,
promissory notes were acquired from issuance programmes registered in the MARF
for EUR 974,994 thousand.
Another of the Institute's main strategic lines of action in its role as a National Promotional
Bank is carried out through AXIS, the venture capital subsidiary of the ICO Group, which acts
in public-private partnership with the venture capital sector by managing assets of EUR 12.15
billion spread over four funds, in which the Institute is the sole participant: Fond-ICO Global,
Fond-ICO Next Tech, Fond-ICO SME, and Fond-ICO Sustainability and Infrastructures.
The investments made with these Funds, which are minority investments and do not involve
effective control of the companies, are aimed at promoting the stimulation and consolidation
of the private venture capital fund ecosystem, both in the early stages: venture capital,
incubation and technology transfer and “business angels” (jointly with the European
Investment Fund), as well as expansion, growth and debt, thus supporting the creation and
growth of highly innovative and technology-based companies.
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Fond-ICO Global, the first public venture capital "fund of funds" created in Spain, aims to
promote the creation of privately managed venture capital funds that invest in Spanish
companies, facilitating alternative and complementary financing channels to bank financing
and giving impetus to their capitalisation and growth. The fund, with an initial endowment of
EUR 1.2 billion, has since grown to its current size of EUR 4.5 billion.
In May 2024 the AXIS Board of Directors approved the resolution for the 16th Call, Fond-ICO
Sobral largest so far, selecting 12 funds in three categories: incubation and technology
transfer, venture capital, and expansion, which will see an investment of up to EUR 900 million.
Depending on the type of project, the resources will come from one of the following facilities
managed by ICO in the Addendum to the RTRP: ICO RRM Green and ICO RRM Businesses
and Entrepreneurs
In addition, at the December 2024 meeting of the AXIS Board of Directors, the launch of the
17th Call was approved, in very similar terms to the previous one. Twelve funds/managers will
be selected in three categories: Incubation and Technology Transfer, Venture Capital and
Expansion in which up to EUR 900 million will be invested. Depending on the type of project,
the resources will also come from one of the facilities managed by ICO in the Addendum to
the RTRP.
Through the 16 calls for proposals completed until 31 December 2024, investments for up to
EUR 4,327 million have been approved, with a target investment volume of EUR 12,796 million
in Spanish companies. For every euro of public capital invested by Fond-ICO Global, private
funds will invest a minimum of EUR 3.3 in Spain.
Fond-ICO SME, endowed with EUR 250 million, has the aim of promoting the business fabric
and job creation through participation in Spanish SMEs, with equity and quasi-equity
instruments. It currently focuses on investing in funds that in turn invest in strategic or
innovative activity segments, such as sustainability, social impact and the entrepreneurial
ecosystem, as well as promoting complementary financing to bank loans through business
angels or diversified debt (crowdlending/crowdfunding).
During 2024, shareholdings have been purchased as part of the Sustainability and Social
Impact Initiative in various funds for an amount of up to EUR 19 million.
Through Fond-ICO Sustainability and Infrastructures, endowed with EUR 400 million, the
Institute provides financing to companies through capital investments, subordinated debt and
equity loans. The goal of this fund is to invest directly or through other funds in sustainable
infrastructure projects in Spain and abroad with Spanish companies.
During 2024, the Axis Board of Directors has approved operations through this fund for EUR
60 million.
AXIS and the State Secretariat for Digitalisation and Artificial Intelligence (SEDIA) launched
Fond-ICO Next Tech in 2021. This fund invests in funds, corporate vehicles and companies
that drive high-impact innovative digital projects and investment in scale-ups with the aim of
mobilising EUR 8 billion, half from public funds and half from private investment, over an initial
four-year period.
At the ICO General Council, held on 23 February 2023, a commitment was approved to
increase the size of FondICO Next Tech by an additional EUR 2 billion to EUR 4 billion. This
expansion was approved by the AXIS Board of Directors in July 2023. During 2024, this Board
approved Fond-ICO Next Tech's participation in funds and companies for a cumulative amount
of EUR 193 million.
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110
In addition, ICO is a participant in four funds, three of which are guaranteed by the Invest EU
programme. Along with these funds, there is the fund associated with the InvestEU Social and
Affordable Housing product, following the approval on 17 September 2024 of ICO's
participation in equity funds within the Sustainable Social Infrastructure Window (SSIW).
In its role as the State's Financial Agency, ICO manages the funds and instruments for official
financing for exports and development, facilitates the sustainability of regional and local
administrations and, since 2020, through an efficient public-private partnership model, has
been managing various public guarantee facilities on behalf of the State.
With regard to the activity managed by the guarantee facilities associated with the COVID-19
crisis, the State backed EUR 108,073,024 thousand during the course of the facilities, until
expiring on 30 June 2022. During the 2024 financial year, the Institute continued to manage
the various measures agreed by the Government in relation to the COVID guarantee
operations executed during its period of validity; in particular, the monitoring of the extension
of the maturity and grace period of the guaranteed operations regulated in the Council of
Ministers Agreement of 21 June 2022. In addition, ICO monitors and controls defaults and
recoveries under the guarantee facility.
In 2024, the Institute also carried out the management of the State public guarantee facility
stemming from the war in Ukraine, regulated under Royal Decree Law 6/2022. This facility,
endowed with up to EUR 10 billion, expired at 31 December 2024, accumulating up to that
date a total guaranteed volume of EUR 6,085,662 thousand, corresponding to 37,339 loan
operations with a financed amount of EUR 7,825,708 thousand.
It should also be noted that the Council of Ministers Agreement of 5 December 2023 instructs
ICO to extend the maturity of the guarantees granted to companies and the self-employed
under the ICO Ukraine Guarantee Facility when certain conditions established in the
Agreement are met. This extension may be carried out throughout the life of the operations.
Given the success of the above-mentioned PPP guarantee model, its use as a lever for new
programmes and products has been extended during 2024:
o Guarantee facility for first-home buyers intended for primary and permanent residence
of young people and families with dependent minors. The terms and conditions of the
backed operations are established by the Council of Ministers Agreement of 13
February 2024, and subsequently regulated by means of an Agreement signed
between the MIVAU and ICO for the management of the guarantee facility. At 31
December 2024, 844 loan operations had been guaranteed on a financed amount of
EUR 96 million, guaranteeing EUR 17 million.
o Guarantee facility for the financing of refurbishment works that contribute to the
improvement of energy efficiency. Financial institutions have started marketing this
financing and guarantee product during the 2024 financial year. At 31 December 2024,
30 loan operations had been guaranteed on a financed amount of EUR 21 million,
guaranteeing EUR 10 million.
o DANA Guarantee Facilities. On 11 November 2024 the Council of Ministers approved
the terms and conditions of a first tranche of the ICO guarantee facility, for an amount
of up to EUR 1 billion, aimed at backing up to 80% of the main lending operations
granted by financial institutions to households, companies and the self-employed.
Subsequently, the Council of Ministers, at its meeting on 28 November 2024, adopted
an agreement allowing for a second tranche of up to EUR 240 million to be made
available with interest subsidies from the State.
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111
At 31 December, financial institutions had registered 2,758 applications for funding
under this facility.
In addition to the management of public guarantees, in 2024 the Institute continued to manage
other funds and instruments on behalf of the State in three areas of action: financing of the
State's peripheral administration through the Territorial Funds of Autonomous Communities
and Local Entities, on behalf of the Ministry of Finance; promotion of the internationalisation
of Spanish companies through the Enterprise Internationalisation Fund (FIEM) and the
Reciprocal Interest Contract (CARI), on behalf of the Ministry of Industry, Trade and Tourism;
and financial cooperation for development, through the Fund for the Promotion of
Development (FONPRODE) and the Water Fund (FCAS), on behalf of the Spanish Agency
for International Development Cooperation (AECID).
At the end of 2024, the balance managed by the ICO for these funds amounted to EUR
223,604 million:
o Fondo de Financiación a Comunidades Autónomas (Autonomous Community
Financing Fund) had an outstanding balance of EUR 210,841 million.
o State funds for internationalisation and financial cooperation for development (CARI,
FIEM, FONPRODE and FCAS) had a combined balance EUR 6,501 million.
o Fondo de Financiación a Entidades Locales (Local Authority Financing Fund) closed
2024 with a balance of EUR 6,262 million.
Fundraising
The Institute finances its medium and long-term activity mainly through debt issues on the
capital markets and through bilateral loans from multilateral financial institutions. ICO is not
financed through the General State Budget, nor does it take deposits from private individuals.
In 2024, medium- and long-term funds of EUR 11,144 million were raised. EUR 1 billion of this
amount was through two sustainable bond issues: a green bond issue and a social bond issue
of EUR 500 million each.
The resources raised through the green bonds will be used to finance projects that empower
the ecological transition and the development of sustainable finance, in line with the objectives
of the National Recovery, Transformation and Resilience Plan. The funds raised through the
issuance of social bonds are intended to promote projects that generate a positive social
impact.
ICO consolidates its position as one of the leading European issuers in this sustainable bond
market, with 17 issues (11 social and 6 green) amounting to EUR 8,550 million.
Balance Sheet
ICO occupies a prominent place in the Spanish financial system and plays an important role
in the Spanish economy.
The Institute's balance sheet totalled EUR 37,780,225 thousand at the end of 2024 (EUR
31,656,823 thousand at the end of 2023), whose yearly variation is mainly due to the increase
in financial assets at amortised cost. Specifically, the outstanding balance of financial assets
at amortised cost is EUR 30,804,340 thousand (31 December 2023: EUR 27,204,578
thousand), broken down as follows:
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112
• Loans to credit institutions amounted to EUR 10,477,256 thousand (EUR 8,300,598
thousand in 2023). This heading mainly includes the outstanding balances of
transactions from the mediation facilities.
• Loans to customers closed the year with a balance of EUR 12,897,805 thousand
compared to EUR 12,601,396 thousand the previous year.
• Debt securities amounted to EUR 7,429,279 thousand; EUR 6,302,584 thousand at
year-end 2023.
In 2024, the outstanding balance of the debt securities portfolio at fair value through other
comprehensive income increased to EUR 1,403,450 thousand (31 December 2023: EUR
91,001 thousand) and the balance of equity instruments increased to EUR 1,933,852
thousand (EUR 1,533,557 thousand at year-end 2023). This heading mainly includes the
Institute's holdings in venture capital funds managed by AXIS Participaciones Empresariales
S.G.E.I.C., S.A., S.M.E., a management company wholly owned by Instituto de Crédito Oficial.
In line with the increase in lending and financial activity, the balance of financial liabilities at
amortised cost increased during 2024, ending the year at EUR 30,079,809 thousand (EUR
23,548,296 thousand in 2023).
ICO's net worth amounted to EUR 5,738,211 thousand at the end of 2024, with results from
the previous year having been used to increase the Institute's reserves. The ICO Group's
solvency ratio at year-end stood at 23.13%, well above the regulatory minimums.
Risk management policy
The Institute's liquidity, market, credit and operational risk management activities are
described in Notes 5.3 to 5.6 of the notes to the financial statements.
Results
The net interest income at the end of December 2024 amounts to EUR 254,569 thousand
(EUR 290,249 thousand in 2023).
The gross margin in 2024 is EUR 358,227 thousand (EUR 361,497 thousand in 2023).
Operating expenses (administration and depreciation) amounted to EUR 54,141 thousand,
higher than in 2023 (EUR 49,281 thousand).
The 2024 financial year ended with a reversal of impairment of financial assets not measured
at fair value of EUR 36,391 thousand and net provisions of EUR 9,646 thousand.
As a result, the pre-tax profit is EUR 330,823 thousand and results for the year amount to EUR
239,796 thousand.
Research and Development Expenditure
There was no research and development activity during the year.
Own shares
Not applicable to the Institute.
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113
Staff
The average number of staff of the Institute in 2024 is 382 employees, compared to 357 in
2023.
Subsequent events
Significant subsequent events are detailed in section 1.8 of these notes to the financial
statements.
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Annex I: Shareholdings at 31/12/2024 and 31/12/2023 (direct and indirect)
114
Relevant information on investments in associates and subsidiaries at 31 December 2024 and 2023 is presented
below:
At 31 December 2024:
Shareholding %
Book value of the shareholding
Entity Data
Address
Activity
Direct
Indirect
Total
Gross
Impairment
Net
Assets
Net Worth
Balance
Partner Entities
CERSA, Compañía Española de
Reafianzamiento, S.A.
Paseo de la Castellana
151 - Madrid
Rebonding of
guarantee operations
granted by MGSs.
24.39%
-
24.39%
47 060
-
47 060
954 450
800 812
-
COFIDES, Compañía Española
de Financiación del Desarrollo,
S.A.
Príncipe De Vergara,
132 - Madrid
Financial support for
private projects with
Spanish interest
carried out in
developing countries
20.31%
-
20.31%
8 466
-
8 466
245 243
234 374
20 927
Dependent Entities
55 526
-
55 526
AXIS Participaciones
Empresariales Sociedad Gestora
de Entidades de Capital Riesgo,
S.A.
Los Madrazo, 38
- Madrid
Financial
investments
100.00%
-
100.00%
1 940
-
1 940
62 435
61 226
25 487
57 466
-
57 466
Unaudited financial information at 31 December 2024
Graphics
Annex I: Shareholdings at 31/12/2024 and 31/12/2023 (direct and indirect)
115
At 31 December 2023:
Shareholding %
Book value of the shareholding
Entity Data
Address
Activity
Direct
Indirect
Total
Gross
Impairment
Net
Assets
Net Worth
Balance
Partner Entities
CERSA, Compañía Española de
Reafianzamiento, S.A.
Paseo de la Castellana
151 - Madrid
Rebonding of
guarantee operations
granted by MGSs.
24.39%
-
24.39%
47 060
-
47 060
954 032
775 910
-
COFIDES, Compañía Española
de Financiación del Desarrollo,
S.A.
Príncipe De Vergara,
132 - Madrid
Financial support for
private projects with
Spanish interest
carried out in
developing countries
20.31%
-
20.31%
8 466
-
8 466
221 555
215 864
27 404
Dependent Entities
55 526
-
55 526
AXIS Participaciones
Empresariales Sociedad Gestora
de Entidades de Capital Riesgo,
S.A.
Los Madrazo, 38
- Madrid
Financial
investments
100.00%
-
100.00%
1 940
-
1 940
56 347
54 984
24 116
57 466
-
57 466
Unaudited financial information at 31 December 2023
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PAULA NOVO CUBA, GENERAL SECRETARY OF THE INSTITUTO DE CRÉDITO
OFICIAL, BY VIRTUE OF THE POWERS ESTABLISHED IN ARTICLE 13 OF ITS
BYLAWS, APPROVED BY ROYAL DECREE 706/1999, OF 30 APRIL,
C E R T I F I E S:
At the General Board session on April 24th, 2025 the following resolution,
among others, was adopted:
1) Approve the individual and consolidated annual accounts (balance sheet,
profit and loss account, statement of recognised income and expense,
statement of changes in equity, cash Flow statement and notes to the
financial statements) and the management report of the Instituto de Crédito
Oficial (ICO) for the financial year 2024.

2) Submit the annual accounts and the management report for the 2024
financial year, together with the proposed allocation of profits, within one
month of approval, for consideration by the Minister for Economy, Trade and
Business, who shall approve the allocation of profits, subject to a nonbinding
report from the Ministry of Finance to be issued within ten days of the
request.
It is hereby certified in accordance with the provisions of article 19.5. of Law
40/2015, of 1 October, on the Legal Regime of the Public Sector, in relation to article
9.9 of the ICO's Bylaws, which has not yet approved the minutes of the session of
April 24th, 2025.
For the record and for the relevant purposes, this certification is issued in
Madrid on the date of electronic signature.

Approved by:
THE CHAIRMAN,
Manuel Illueca Muñoz

Código Seguro De Verificación z4SZSsI2WSS5ZtNn4b6tVA== Estado Fecha y hora
Firmado Por Paula Novo Cuba - Secretaria General Firmado 28/04/2025 09:34:01
Manuel Illueca Muñoz - Presidente Firmado 25/04/2025 14:34:59
Observaciones Página 1/1
Url De Verificación https://verifirma.ico.es/verifirma/code/z4SZSsI2WSS5ZtNn4b6tVA%3D%3D
Normativa Este informe tiene carácter de copia electrónica auténtica con validez y eficacia administrativa de ORIGINAL (art. 27 Ley 39/2015).

Graphics





STATEMENT OF RESPONSIBILITY
OF THE ANNUAL FINANCIAL REPORT


Manuel Illueca Muñoz, Chairman of Instituto de Crédito Oficial, declares that, to
the best of his knowledge, the individual and consolidated annual accounts for
2024, drawn up on March 27, 2025, in accordance with the applicable accounting
principles, give a true and fair view of the net worth, financial position and results
of Instituto de Crédito Oficial and of the companies included in the consolidation
taken as a whole, and that the management reports, both individual and
consolidated, include a true and fair analysis of the evolution and business results
and of the position of Instituto de Crédito Oficial and of the companies included
in the consolidation taken as a whole, along with a description of the main risks
and uncertainties they face.

Madrid, April 25, 2025




Manuel Illueca Muñoz
Chairman of the Instituto de Crédito Oficial

Código Seguro De Verificación 98RJzBDeTYpXnfq3a7tJLA== Estado Fecha y hora
Firmado Por Manuel Illueca Muñoz - Presidente Firmado 25/04/2025 14:38:06
Observaciones Página 1/1
Url De Verificación https://verifirma.ico.es/verifirma/code/98RJzBDeTYpXnfq3a7tJLA%3D%3D
Normativa Este informe tiene carácter de copia electrónica auténtica con validez y eficacia administrativa de ORIGINAL (art. 27 Ley 39/2015).