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FIRST VICE PRESIDENCY
OF THE GOVERNMENT
MINISTRY OF
FINANCE
COMPTROLLER GENERAL OF
THE STATE ADMINISTRATION
ANNUAL ACCOUNTS AUDIT
ICO - INSTITUTO DE CRÉDITO
OFICIAL
2026 Audit Plan -
Financial Year 2025
AUDInet Code 2026/86
PUBLIC AUDIT DIVISION I
Free translation of the auditors’ 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, E.P.E.
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 31 December 2025, 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:
•
Verifyng 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 the 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 process of generating
accounting information.
-
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, 2026, 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 assumed by state public sector entities subject to the Spanish
General Accounting Plan and its adaptations resulting from their status as public sector entities.
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 audited 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 entity’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 management committee 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 management committee either intends or
has a legal obligation to liquidate the entity 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 Chairman 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, 2026.

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INSTITUTO DE CRÉDITO OFICIAL
Financial Statements as of 31 December 2025 and
Management Report for the 2025 financial year

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INSTITUTO DE CRÉDITO OFICIAL
BALANCE SHEETS AS OF 31 DECEMBER 2025 AND 2024
(Expressed in thousands of euros)
1
ASSETS
2024
Cash, balances with central banks and other demand deposits (Note 6)
2 684 836
Financial assets held for trading (Note 7)
15 448
Derivatives
15 448
Token entry: Loaned or pledged as collateral
-
Financial assets not held for trading mandatorily measured at fair value, through profit or
loss (Note 8)
-
-
Financial assets at fair value, through other comprehensive income (Note 9)
3 337 302
Equity instruments
1 933 852
Debt securities
1 403 450
Loans and advances
-
Token entry: Loaned or pledged as collateral
-
Financial assets at amortised cost (Note 10)
30 804 340
Debt securities
7 429 279
Loans and advances
23 375 061
Credit institutions
10 477 256
Customers
12 897 805
Token entry: Loaned or pledged as collateral
-
Derivatives – hedge accounting (Note 11)
354 479
Investments in subsidiaries, joint ventures and associates (Note 12)
57 466
Subsidiaries
1 940
Joint Ventures
-
Associates
55 526
Property, plant and equipment (Note 13)
81 335
Property, plant and equipment
For own use
81 335
Token entry: Acquired under lease
-
Intangible assets (Note 14)
12 502
Other intangible assets
12 502
Tax assets (Note 15)
401 907
Current tax assets
877
Deferred tax assets
401 030
Other assets (Note 16)
30 610
Other assets
30 610
Non-current assets and disposal groups classified as held for sale (Note 17)
-
TOTAL ASSETS
37 780 225

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INSTITUTO DE CRÉDITO OFICIAL
BALANCE SHEETS AS OF 31 DECEMBER 2025 AND 2024
(Expressed in thousands of euros)
2
LIABILITIES
2025
2024
Financial liabilities held for trading (Note 7)
10 924
14 723
Derivatives
10 924
14 723
Financial liabilities designated at fair value, through profit or loss
-
-
Financial liabilities at amortised cost (Note 18)
34 738 989
30 079 809
Deposits
8 147 582
7 915 987
Central Banks
-
-
Credit institutions
7 269 690
7 285 837
Customers
877 892
630 150
Debt securities issued
26 282 036
21 865 199
Other financial liabilities
309 371
298 623
Token entry: Subordinated liabilities
-
-
Derivatives – hedge accounting (Note 11)
789 230
1 201 481
Provisions (Note 19)
730 186
862 891
Pensions and other defined benefit retirement obligations
974
910
Procedural issues and pending tax litigation
-
-
Commitments and guarantees given
76 301
60 204
Remaining provisions
652 911
801 777
Tax liabilities (Note 15)
205 107
183 311
Current tax liabilities
8 147
3 971
Deferred tax liabilities
196 960
179 340
Other liabilities (Note 16)
51 804
53 414
TOTAL LIABILITIES
36 526 240
32 395 629
NET EQUITY
Capital and reserves (Note 20)
6 016 132
5 738 211
Paid-in capital
4 315 584
4 314 901
Retained earnings
-
-
Revaluation reserves
15 394
16 305
Other reserves
1 407 916
1 167 209
Balance for the year
277 238
239 796
Less: Interim dividends
-
-
Accumulated other comprehensive income (Note 21)
59 681
(353 615)
Items not to be reclassified to profit or loss
417 532
371 765
FV changes in equity instruments at fair value through other comprehensive income
417 532
371 765
Items that can be reclassified to profit or loss
(357 851)
(725 380)
Hedging derivatives. Cash flow hedge reserve
(362 719)
(734 902)
FV changes in debt instruments at fair value through other comprehensive income
4 868
9 522
TOTAL NET EQUITY
6 075 813
5 384 596
TOTAL EQUITY AND LIABILITIES
42 602 053
37 780 225

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INSTITUTO DE CRÉDITO OFICIAL
BALANCE SHEETS AS OF 31 DECEMBER 2025 AND 2024
(Expressed in thousands of euros)
3
TOKEN ENTRY
2025
2024
Financial guarantees granted (Note 22)
1 113 406
749 994
Other commitments granted (Note 22)
5 822 099
4 861 883
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INSTITUTO DE CRÉDITO OFICIAL
INCOME STATEMENTS FOR THE YEARS ENDING ON 31 DECEMBER 2025 AND 2024
(Expressed in thousands of euros)
4
2025
2024
Interest income (Note 24)
1 229 356
1 318 085
(Interest expense) (Note 25)
(930 683)
(1 063 516)
NET INTEREST INCOME
298 673
254 569
Dividend income (Note 26)
21 096
20 147
Commissions income (Note 27)
49 822
40 261
Commissions expense (Note 27)
(9 031)
(7 324)
Gains or (losses) from derecognition of financial assets and liabilities not measured at fair value, through profit or
loss, net (Note 28)
-
(1 535)
Financial assets at fair value, through other comprehensive income
-
-
Financial assets at amortised cost
-
(1 535)
Other financial assets and liabilities
-
-
Gains or (losses) on financial assets and liabilities held for trading, net (Note 29)
(1 717)
(818)
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)
35 773
45 580
Net exchange differences (Note 2.4)
(18 855)
6 300
Other operating income (Note 32)
1 104
1 047
Other operating expenses (Note 32)
-
-
GROSS MARGIN
376 865
358 227
Administration costs
(52 961)
(49 105)
Staff costs (Note 33)
(29 279)
(28 159)
Other administrative expenses (Note 34)
(23 682)
(20 946)
Amortisation
(6 839)
(5 036)
Property, plant and equipment (Note 13)
(2 227)
(2 185)
Intangible assets (Note 14)
(4 612)
(2 851)
Provisions (or reversal) of provisions (Note 19)
(21 703)
(9 646)
Impairment (or reverse impairment) of financial assets not measured at fair value through profit and loss or net
gains or losses upon adjustment
83 500
36 391
Financial assets at fair value, through other comprehensive income (Note 9)
-
(20)
Financial assets at amortised cost (Notes 10)
83 500
36 411
Impairment (or reverse impairment) on non-financial assets, net
496
(81)
Goodwill and other intangible assets (Note 14)
-
-
Other assets (Note 17)
496
(81)
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)
(204)
73
PRE-TAX PROFIT (LOSS) FROM GOING CONCERNS
379 154
330 823
Income tax expense (income) on going concerns (Note 23)
(101 916)
(91 027)
AFTER-TAX PROFIT (LOSS) FROM GOING CONCERNS
277 238
239 796
AFTER-TAX PROFIT (LOSS) FROM DISCONTINUED OPERATIONS
-
-
BALANCE FOR THE YEAR
277 238
239 796
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INSTITUTO DE CRÉDITO OFICIAL
STATEMENTS OF CHANGES IN NET EQUITY
I- STATEMENTS OF RECOGNISED INCOME AND EXPENSE FOR THE YEARS
ENDING ON 31 DECEMBER 2025 AND 2024
(Expressed in thousands of euros)
5
2025
2024
Balance for the year
277 238
239 796
Other comprehensive income
413 296
(544 268)
Items not to be reclassified to profit or loss
45 767
6 036
Changes in fair value of equity instruments measured at fair value, through other
comprehensive income (Note 21)
65 381
8 623
Hedge accounting gains or losses
Income tax on items that will not be reclassified
(19 614)
(2 587)
Items that can be reclassified to profit or loss
367 529
(550 304)
Cash flow hedges, effective portion (Note 21)
531 690
(798 724)
Debt instruments at fair value through other comprehensive income (Note 21)
(6 649)
12 576
Income tax on items that can be reclassified to profit or loss
(157 512)
235 844
Total global balance for the year
690 534
(304 472)
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INSTITUTO DE CRÉDITO OFICIAL
STATEMENTS OF CHANGES IN NET EQUITY
II. STATEMENTS OF CHANGES IN TOTAL NET EQUITY FOR THE YEARS ENDING ON 31 DECEMBER 2025
AND 2024
(Expressed in thousands of euros)
6
As of 31/12/2025
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
ACCUMULATED
OTHER
COMPREHENSIVE
INCOME
TOTAL NET
EQUITY
Closing balance as of 31 December 2024
4 314 901
-
1 183 514
-
-
239 796
-
5 738 211
(353 615)
5 384 596
Total recognised income and expenses
-
-
-
-
-
277 238
-
277 238
413 296
690 534
Other changes in net equity:
Capital increases / endowment fund
Transfers between equity items
-
-
239 796
-
-
(239 796)
-
-
-
-
Other increases (decreases) in net equity
683
-
-
-
-
-
683
-
683
Total other changes in net equity
683
-
239 796
-
-
(239 796)
-
683
-
683
Closing balance as of 31 December 2025
4 315 584
-
1 423 310
-
-
277 238
6 016 132
59 681
6 075 813
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INSTITUTO DE CRÉDITO OFICIAL
STATEMENTS OF CHANGES IN NET EQUITY
II. STATEMENTS OF CHANGES IN TOTAL NET EQUITY FOR THE YEARS ENDING ON 31 DECEMBER 2025
AND 2024
(Expressed in thousands of euros)
7
As of 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
ACCUMULATED
OTHER
COMPREHENSIVE
INCOME
TOTAL NET
EQUITY
Closing balance as of 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) net in equity
-
-
-
-
-
-
-
-
-
-
Total other changes in net equity
-
-
240 215
-
-
(240 215)
-
-
-
-
Closing balance as of 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
CASH FLOW STATEMENTS FOR THE YEARS ENDING ON 31 December 2025 AND
2024
(Expressed in thousands of euros)
8
2025
2024
A. CASH FLOWS FROM OPERATING ACTIVITIES
940 898
534 122
1. Balance for the year
277 238
239 796
2. Adjustments to obtain cash flows from operating activities
(89 013)
(64 937)
Amortisation
6 839
5 036
Other adjustments
(95 852)
(69 973)
3. Net increase/decrease in operating assets
(3 764 191)
(5 545 437)
Financial assets held for trading
2 250
7 930
Other financial assets at fair value, through profit or loss
-
-
Financial assets at fair value, through other comprehensive income
148 622
(1 697 905)
Financial assets at amortised cost
(4 273 651)
(3 564 904)
Other operating assets
358 588
(290 558)
4. Net increase/decrease in operating liabilities
4 585 257
5 964 756
Financial liabilities held for trading
(3 799)
(8 887)
Other financial liabilities at fair value, through profit or loss
-
-
Financial liabilities at amortised cost
4 659 180
6 531 512
Other operating liabilities
(70 124)
(557 869)
5. Income tax receipts / payments
(68 393)
(60 056)
B. CASH FLOWS FROM INVESTING ACTIVITIES
(10 336)
(8 266)
6. Payments
(10 336)
(8 272)
Property, plant and equipment (Note 13)
(219)
(1 237)
Intangible assets (Note 14)
(7 678)
(7 035)
Investments in subsidiaries and associates (Note 12)
(2 439)
-
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
Property, plant and equipment (Note 13)
-
6
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 THE YEARS ENDING ON 31 December 2025 AND
2024
(Expressed in thousands of euros)
9
2025
2024
C. CASH FLOWS FROM FINANCING ACTIVITIES
683
-
8. Payments
-
-
Dividends
-
-
Subordinated liabilities
-
-
Amortisation of equity instruments
-
-
Acquisition of equity instruments
-
-
Other payables related to financing activities
9. Receivables
683
-
Subordinated liabilities
-
-
Issue of equity instruments
-
-
Disposal of equity instruments
-
-
Other receivables related to financing activities (Note 20)
683
-
D. EFFECT OF EXCHANGE RATE MOVEMENTS
-
-
E. NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
931 245
525 856
F. CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD
2 684 836
2 158 980
G. CASH AND CASH EQUIVALENTS AT END OF THE PERIOD
3 616 081
2 684 836
TOKEN ENTRY
COMPONENTS OF CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
Cash (Note 6)
4
6
Balance of cash equivalents at central banks (Note 6)
3 600 833
2 664 864
Other financial assets (Note 6)
15 244
19 966
Less: bank overdrafts repayable on demand
-
-
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INSTITUTO DE CRÉDITO OFICIAL
Annual report for the financial year
ending on 31 December 2025
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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 under 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, assets
and treasury, as well as management autonomy to fulfil 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 on the Organisation and Functioning of the
General State Administration and approving its Articles of Association. The most recent update
of the Articles of Association occurred with the publication of Royal Decree 1149/2015 of 18
December. In all matters not covered by the above regulations, the Institute is governed by
the special regulations of credit institutions and by the general regulations of the private civil,
commercial and labour legal system.
Since the entry into force of Royal Decree 1149/2015, 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 hiring criteria, such as professional suitability, qualifications and repute, with
incompatibilities being regulated and setting a three-year term, 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 or 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
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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
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 the serious breach of confidentiality or 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 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 severe
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,
encouraging 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. 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. Fondo Español de Desarrollo Sostenible (FEDES - Spanish Fund for Sustainable
Development). Replaced in 2025 the previous FONPRODE (Fondo para la Promoción
del Desarrollo - Development Promotion Fund). The latter 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 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. In
December 2010, this Fund absorbed the Microcredit Fund, also managed by the
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Institute since 1998 until its integration into FONPRODE.
4. Fund for the Internationalisation of Enterprises (hereinafter, FIEM). 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 a 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, 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 a 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 140 billion euros, 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
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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.
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 income statement.
9. UKRAINE Guarantee facilities. This facility is included in the Response Plan to
Russia's war in Ukraine and is endowed with up to 10 billion euros. 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
income statement.
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 income
statement.
The Council of Ministers Agreement on 23 December 2025 amended the Council of
Ministers Agreement on 13 February 2024, extending the duration of the guarantee
facility until 31 December 2027 and re-stipulating certain conditions, criteria and
requisites applicable to access it.
11. RESIDENTIAL BUILDING REHABILITATION Guarantee Facilities. Law 10/2022, of 14
June, on urgent measures to drive building renovation in the context of the RTRP
(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
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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
corresponding fees, which are recorded as income in the income statement.
12. DANA Guarantee Facilities. 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
new set of measures aimed at reactivating the economy of the areas affected by the
flood waters. This package of measures aims to mitigate the material damage, 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 1 billion
euros, 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 240 million euros 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 income
statement.
13. The State Guarantee Lines to promote the construction of public and private housing
intended for social rental and whose financing is granted by means of the ICO Vivienda
Social [Social Housing] facility of the RTRP.
By means of Article 86 of RDL 8/2023 of 27 December, a guarantee facility was
approved for partial coverage by the State of the financing granted with funds from the
RTRP Addendum, intended to increase the social rental or affordable housing stock
with the goal of financing the construction of up to 40,000 new homes, as well as
improving the existing housing stock intended for social or affordable housing.
Thus, the ICO loan facility for the impetus given to social housing foreseen in the RTRP
Addendum is complemented by a guarantee facility that will provide partial financing
coverage for the construction of energy-efficient building or renovation using energy-
efficiency criteria.
The Council of Ministers, in its meeting on 9 April 2024, approved the Agreement which
authorises MIVAU to undertake this agreement with ICO, which was signed on 29 July
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 income statement.
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14. Public Guarantee Facility for companies affected by tariff measures. On 3 April 2025
the Government announced the immediate deployment of a Commercial Relaunch and
Response Plan, endowed with over 14 billion euros, with the aim of softening the
negative impact of the trade war and erect a shield to protect our economy. As part of
the approved initiatives, the Council of Minister approved Royal Decree-Law 4/2025
on 08 April 2025, consisting of urgent measures to respond to the threat of tariffs and
commercial relaunch, which include the creation of a new guarantee facility amounting
up to 5 billion euros through ICO in order to back financing to companies, both
exporters and importers, affected by the change in tariff policies of the United States
and support potential industrial reconversion processes.
Companies who can tap into this facility are exporters and importer who have a
significant direct or indirect exposure to the American market, which are supported in
the face of potential damage caused by the change in tariff policy of the USA and given
incentives for the realisation of business reconversion projects, bolstering their
resilience and efficiency.
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 income statement.
15. Recovery, Transformation and Resilience Plan (RTRP) of the European Union. The
Council of Ministers on 27 February 2024 approved an agreement establishing the
general conditions for the implementation of facilities under the loans of the addendum
to the Recovery Plan, amounting to 40 billion euros, and ordering their management
under Instituto de Crédito Oficial.
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 ICO and AXIS, and the Spain Audiovisual Hub Fund was removed from the list of
facilities managed by ICO/AXIS.
The facilities which are then managed by ICO are used to finance investment projects
that favour the dual green and digital transition of companies, strengthening their
competitiveness. A specific facility has also been enabled to increase the stock of
public social rented housing.
The Council of Ministers, at its meeting on 09 December 2025, adopted an Agreement
by which it approved the Addendum for the Simplification of the Recovery,
Transformation and Resilience Plan, designed as a response to the Communiqué from
the European Commission on 04 June 2025, “Next Generation EU – Path to 2026”,
which urged Member States to review their plans to streamline procedures and
maximise the use of the funds.
This update reduces the administrative burden, prioritises strategic investments and
upholds the ambition of the investment projects and reforms to modernise the country,
and simultaneously accelerate the reaching of milestones and objectives that can tap
into 100% of the transfers (nearly 80 billion euros) and reduce the public debt forecast
to 22.8 billion euros in loans, given that the strong pace of the Spanish economy leads
to less reliance on European loans, which offer less of a financial advantage compared
to public treasury issues and count as public debt.
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On the other hand, it will give continuance to investments beyond 2026, giving shape
to a national financial safety net with a lower administrative burden. Among other
factors, the agreement will inject 10.5 billion euros of capital into ICO, which will allow
the bank to increase its assets by approximately 60 billion euros though different
actions to be implemented through the España Crece [Spain Grows] Fund.
In addition, it will make a 2.8-billion-euro endowment to the Institute for interest rate
allowances and/or non-refundable tranches, in the aim of making general-interest
projects with positive externalities more viable.
The Agreement with MINECO to enact these changes was signed on 30 December
and the signing with MIVAU will be forthcoming.
The initiatives in which the Institute participates 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. 300 million euros will be earmarked to facilitate
loans to households and private and public companies, which may be used,
among other purposes, to develop projects related to sustainable transport,
energy efficiency, renewable energies, the decarbonisation of industry, water
management, the circular economy and adaptation to climate change.
• 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 600 million euros to finance the growth and resilience of companies,
especially SMEs. As part of this facility, the tourism industry will have a 1 billion
euros 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 750 million euros earmarked
for the financing projects aimed at increasing the stock of social rentals or
affordable housing, as its name indicates, as well as to improve the existing stock
of social housing.
16. ICO-Growth Financing Facility. With the aim of further contributing to economic growth,
promoting business activity and job creation, ICO complements its counter-cyclical role
and adopts a more proactive attitude during expansion phases.
To do this, in accordance with the eligibility, admission and management conditions of
these operations, the General Council approved on 27 March 2025 the general
conditions document of the direct financing instrument for small and mid-sized
companies, ICO Crecimiento [ICO Growth], with a budget of 1 billion euros, to be
expanded upon prior agreement of the General Council.
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The validity is extended to 31 December 2027 and the purpose is to grant loans to
SMEs whose company headquarters, establishment or production or development
facility is located in Spain, with the aim of financing the growth and internationalisation
of the company by means of direct financing.
It will be development both through bilateral transactions and those co-financed with
private banks and other financial agents with capacity to originate operations.
The application for financing will be done by filling in the online form enabled for this
purpose.
With the exception of the direct and mediation activity, the activity related to the RTRP and
the activity of ICO-Growth, 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 attached consolidated income statement).
1.2 Basis of presentation of the financial statements
The financial statements of Instituto de Crédito Oficial for the year ending on 31 December
2025 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 this report on the financial statements.
The Institute’s financial statements the year ending on 31 December 2025 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 as of 31 December 2025, 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 2024 is
presented solely and exclusively for comparative purposes with the information relating to the
financial year 2025 and, therefore, does not constitute the Institute's financial statements for
the financial year 2024.
Note 2 summarises the significant accounting policies and measurement bases applied in
preparing the Institute's financial statements for the year ending on 31 December 2025.
Main regulatory changes in the period from 1 January to 31 December 2025
Bank of Spain Circular 1/2025 of 19 December
This rule amends circulars 4/2017 of 27 November on financial information rules, and circular
1/2013 of 24 May on the CIR [Risk Information Centre], with purpose of: i) maintaining
alignment with international financial reporting standards, IRFS-EU; ii) incorporating the result
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of the review on requirements relating to credit risk coverage due to country risk; iii)
incorporate other minor changes, such as clarifications or corrections; and iv) introduce
changes in certain confidential financial statements, adding or removing reports. The rule has
had no significant impact on ICO.
ECB Guidance 2025/2595 of 10 December
In late 2025, ECB Guidance 2025/2595 of 10 December entered into force, which relates to
the supervisory approach to non-performing exposures (NPE) in less significant entities with
the scope of the SSM (Single Supervisory Mechanism). This rule applies to ICO whereas the
entity adhered to the reporting requirements of the Bank of Spain in this respect, with the
commitment of allocating the provisions set out in this rule in the 2026 financial year, with an
approximate impact of 8 million euros (allocation to provisions).
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 2025 financial year have been prepared by the Chairman of
the Entity on 26 March 2026 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 ending on 31 December
2025 and the attached report 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 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 as of 31
December 2025 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 income statement 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
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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, on 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. As of 31 December 2025, the balance of net
assets was zero and the amount of revenue generated in the year was 48 thousand euros (3
thousand euros in net assets and 157 thousand euros in earnings as of 31 December 2024).
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 ICO Group, together with ICO.
Consequently, the Institute has prepared, in addition to its own financial statements, the
consolidated financial statements of ICO Group in accordance with current regulations, which
also include interests in joint ventures and investments in associates.
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
attached balance sheet as of 31 December 2025 and 2024, income statement, statement of
changes in total equity, statement of recognised income and expense and cash flow statement
for 2025 and 2024 is as follows:
Thousands of euros
2025
2024
Individual
Consolidated
Individual
Consolidated
Assets
42 602 053
42 644 475
37 780 225
37 817 961
Net worth
6 075 813
6 177 824
5 384 596
5 482 740
Balance for the year
277 238
280 783
239 796
250 048
Total income and expenses recognised in
equity
690 534
694 079
(304 472)
(294 220)
Net increase / (Decrease) in
cash or cash equivalents
931 245
931 536
525 856
526 181
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.
1.6.1 Financial investments for environmental purposes
In the 2025 financial year, and within the framework of the third-party financing activity of the
Institute, financial investments were made that substantially contribute to environmental
protection and betterment.
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Given that green transactions are not identified under a specific accounting heading in the
balance sheet in such a way that permits a direct extraction of the new entries in the year,
green financial investment in 2025 has been estimated as the year-on-year variation (2025-
2024) of outstanding balances. This methodology has been applied in coherence with the
criteria agreed upon recently with the National Accounting Office of the IGAE (General
Comptroller of the State Administration).
In accordance with this approach, green financial investment for the 2025 financial year is
estimated at 1,195,209 thousand euros. However, given the wide range of operations of ICO,
three blocks can be discerned, given the availability of information and level of itemisation are
not standardised in all cases:
• Direct Financing: In this modality, the entity has determined a classification with its
internal criteria, based on Regulation (EU) 2020/852 on Taxonomy and international
environmental standards such as Green Loan Principles and Sustainability-Linked
Loan Principles, presenting a breakdown for the 6 environmental objectives proposed.
Green financial investment estimated in Direct Financing rose to 738,901 thousand
euros, itemised as follows:
DIRECT FINANCING
Objective 1
Objective
2
Objective 3
Objective 4
Objective 5
Objective 6
Climate change
mitigation
Adaptation to
climate
change
Sustainable use
and protection
of water
resources
Transition to a
circular
economy
Pollution
forecasting
and control
Biodiversity
protection and
recovery
TOTAL GREEN
FINANCIAL
INVESTMENT
Estimate of Green
Financial Investment
2025
€663,942,781
- €
€35,274,105
€33,972,484
- €
€5,711,808
€738,901,178
Of which with entities
of the state SP
€124,876,045
- €
- €
- €
- €
- €
• Mediation Facilities: The estimated green financial investment involving Mediation
Facilities amounted to 456,308 thousand euros. Two different blocks can be
determined according to the available information:
o International Channel Facility and MIVAU Building Renovation Facility 2025:
given greater information availability, sustainable transactions can be itemised
in the six environmental objectives.
o Other mediation facilities: due to more limited availability of information, the
sustainable transaction cannot be itemised according to the six environmental
objectives and categorised as green financial investments without allocating a
specific objective.
MEDIATION FACILITIES
Objective 1
Objective 2
Objective 3
Objective 4
Objective 5
Objective 6
Not allocated
Climate change
mitigation
Adaptation to
climate change
Sustainable use
and protection of
water resources
Transition to a
circular
economy
Pollution
forecasting and
control
Biodiversity
protection and
recovery
Financial investment
without allocating a
specific objective
TOTAL GREEN
FINANCIAL
INVESTMENT
Estimate of Green
Financial Investment 2025
€295,722,700
- €
€34,585,433
- €
- €
- €
€126,000,000
€456,308,133
Of which with entities of
the state SP
- €
- €
- €
- €
- €
- €
- €
• AXIS: The estimated green financial investment involving venture capital funds
managed by AXIS amounted to 82,366 thousand euros. Although these investments
are classified internally as green in accordance with the applicable criteria, sufficient
information is not available for their itemisation by the six environmental objectives.
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TOTAL GREEN FINANCIAL INVESTMENT
WITHOUT ALLOCATING A SPECIFIC
OBJECTIVE - AXIS
Estimate of Green Financial Investment
2025 without allocating by objective
€82,366,431
1.6.2 Energy consumption and carbon footprint
The consumption for the year is described below in physical and monetary units, as well as
the scope 1 and scope 2 emissions:
Consumption for the year:
• Water: 2,088.46 m
3
; €7,407.45
• Electricity (100% renewable, with Guarantee of Origin): 1,867,902 kWh; €334,379.02
• Diesel B: 589 litres; €585.95
• Fluorinated gases:
o R-407C: 35 kg; €2,879.35
o R-410A: 10 kg; € 893.40
Carbon footprint:
• Scope 1: 90.43 t CO₂e
• Scope 2: 0 t CO₂e. The value of scope 2 is zero as ICO's electrical supply is 100%
guaranteed renewable supply.
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
information 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 Community 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
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replaced, as of 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
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 Community 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:
o 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.
o 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.
o 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%.
o 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
at 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:
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o 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.
o 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.
o 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 contents 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.
As of 2015 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 did so 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 adopted, 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 ICO.
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 is to be applied starting
1 January 2025. This regulation has had a positive impact on ICO, improving the solvency
ratio.
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As of 31 December 2025 and 2024, the eligible capital of the Entity's group is as follows:
Thousands of euros
2025
2024
Common Equity Tier 1 capital
4 650 222
4 651 571
- Capital
4 315 584
4 314 901
- Prudential reserves and filters (*)
334 638
336 670
Tier 2 capital
-
-
- Other reserves (*)
-
-
- General credit risk adjustments
-
-
Total eligible capital
4 650 222
4 651 571
Total minimum capital (**)
2 499 429
2 998 592
(*) 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 12.37% of risk-weighted assets (RWA), the level of the total capital requirement (OCR) set by the Bank of Spain for the Group in
2025 (14.91% in 2024).
As of 31 December 2025 and 2024, the most relevant data on the Group's minimum capital
are as follows (amounts in thousands of euros):
Thousands of euros
2025
2024
Tier 1 capital
4 650 222
4 651 571
Risk-weighted assets (RWA)
20 205 568
20 111 284
Tier 1 capital ratio (%)
23.01%
23.13%
Total eligible capital
4 650 222
4 651 571
Total eligible capital ratio (%)
23.01%
23.13%
Minimum eligible capital ratio (%) (*)
12.37%
14.91%
(*) The minimum total capital ratio on 31 December 2025, established by the Bank of Spain for the Institute's Group
is 12.37%, considering both the requirements of EU Regulation 575/2013 (8%) and the additional capital requirements
(1.328%), the capital conservation buffer (2.5%) and the countercyclical capital buffer (0.54%).
On 31 December 2025 and 2024, the Group's total eligible capital exceeds the minimum
requirements of the entity by 2,150,793 thousand euros and 1,652,979 thousand euros,
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 2025 of 141,775 thousand euros (14,187,521 thousand euros 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).
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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 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. The
estimated amount for 2025 is 145 thousand euros, which will be posted in 2026.
No significant events other than those indicated in the preceding paragraphs have occurred
between the end of the financial year (31 December 2025) and the preparation of these
financial statements (26 March 2026).
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 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 individuals, 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 executed operation 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 on 31 December 2025 and 31 December 2024 of total net assets was zero. The
net income generated in 2025 amounted to 3,574 thousand euros (4,701 thousand euros in
2024), mainly due to the recovery of write-offs.
2. ACCOUNTING POLICIES AND MEASUREMENT BASES APPLIED
The following accounting policies and measurement bases have been applied in the
preparation of ICO's consolidated financial statements for the year ending on 31 December
2025:
a) Going concern principle
In preparing the financial statements, it has been considered that the management of the
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27
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 their 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 on 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:
• Power: 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 positive only, negative
only 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 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 attached 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 or 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 existing unrealized capital gains, net of tax, 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 income statement.
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Dividends accrued during the year on these shareholdings are recorded under "Dividend
income" in the income statement (Note 26).
Note 12 provides information on the accounting data as of 31 December 2025 and 2024 under
this heading.
Annex I provides relevant information on these entities, all of which close on 31 December.
2.1.2 Associates
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 attached 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 sale costs necessary to sell it or 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 income statement.
Dividends accrued during the year on these shareholdings are recorded under "Dividend
income" in the income statement (Note 26).
Relevant information on these entities is provided in Annex I.
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 effective
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
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29
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 de-recognised and, simultaneously, any rights or
obligations retained or created as a result of the transfer are recognised in the balance
sheet.
• If all the 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 de-recognised 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
financial asset transferred but not de-recognised and the cost of the new financial
liability.
• If neither the risks nor 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:
o If the Entity does not retain control of the transferred financial instrument, in
which case it is de-recognised and any rights or obligations withheld or created
as a result of the transfer are recognised.
o 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
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30
specifically finance the transferred assets. The net amount of the transferred
asset and the associated liability shall be the amortised cost of the withheld
rights and obligations, if the transferred asset is measured at amortised cost,
or the fair value of the withheld rights and obligations, if the transferred asset is
measured at fair value.
Therefore, financial assets are only de-recognised 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 de-recognised 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
lack 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.
As for amortised cost, it means the acquisition cost of a financial asset or liability, adjusted
(plus or minus, as appropriate) for repayments on the principal and interest, plus or minus, as
appropriate, the portion charged to the income statement, 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, by the 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
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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, joint ventures and associates are stated at cost, where
applicable, and adjusted for any impairment losses.
Changes to the carrying amount of financial assets are generally recognised with a balancing
entry in the income statement, 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 income statement, at their net amount
under "Gains or losses on financial assets measured at fair value through profit or loss” in the
income statement.
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 “Accumulated other comprehensive income”, unless they arise from exchange
differences. Amounts included under "Accumulated other comprehensive income" for changes
in the fair value of these financial instruments remain in equity until the asset in which they
arise is de-recognised, at which time they are written off against the income statement, unless
they are financial instruments whose valuation changes will never be reclassified in the income
statement.
In addition, changes in the carrying amount of items included under “Non-current assets held
for sale” are recognised with a balancing entry in “Accumulated other 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.
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 hedge items and the items hedged, in terms
of the type of risk hedged, are recognised directly in the income statement.
• Valuation differences relating to the ineffective portion of cash flow hedges and net
investments in foreign operations are directly posted to the income statement.
• In cash flow hedges, valuation differences arising on the effective portion of the hedged
item are recognised temporarily in “Accumulated other comprehensive income” as
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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 “Accumulated other
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 income statement 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 income
statement, 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 income statement with a balancing entry in
"Accumulated other comprehensive income" as adjustments to financial assets for macro-
hedges.
In cash flow hedges on the 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 “Accumulated other
comprehensive income”, at which time it is recognised in the income statement. The change
in value of hedging derivatives for the ineffective portion of the hedge is recognised directly in
the income statement.
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 by posting the 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 to the carrying amount of financial liabilities are generally recognised with a
balancing entry in the income statement, with a distinction being made between those 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 income statement, at their
net amount, under "Gains or losses on financial liabilities posted at fair value posted to profit
or loss” in the income statement.
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 valuation of financial assets and liabilities
Financial instruments are classified in the Institute's balance sheet according to the following
categories:
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• Cash, balances held in cash with central banks, and other demand deposits: correspond
to cash balances and balances held at the Bank of Spain, at other central banks and at
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:
o 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 managed together 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.
o 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.
o 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 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
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securities included in this category are initially measured at fair value, adjusted by
the amount of the transaction costs which are directly attributable to the acquisition
of the financial asset, which are posted in the income statement 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 income statement 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 through
maturity.
Interest accrued on assets included in this category, calculated using the effective
interest method, is recognised under "Interest income" in the income statement.
Exchange differences on securities included in this portfolio denominated in non-
euro currencies 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.
The 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 the
financial asset, which are posted in the income statement using the effective interest rate
method as defined in Bank of Spain Circular 4/2017 through maturity, unless the financial
assets have no fixed maturity, in which case they are posted in the income statement
when they become impaired or are de-recognised. 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 income statement, respectively. Impairment losses on these
instruments are accounted for in accordance with Note 2.7. Exchange differences on
financial assets denominated in non-euro currencies are recorded in accordance with
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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 "Accumulated other comprehensive income" as valuation
adjustments until the financial asset is de-recognised, at which time the balance recorded
under this heading is recognised in the income statement 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 the transaction costs which are directly attributable to the emission of
the financial liabilities, which will be posted in the income statement using the effective
interest method as defined in Bank of Spain Circular 4/2017 through maturity. They are
subsequently measured at amortised cost, calculated using the effective interest rate
method as defined in Circular 4/2017.
Interest accrued on these securities, calculated using the effective interest method, is
recorded under "Interest expense" in the income statement. Exchange differences on
securities included in this portfolio denominated in non-euro currencies 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 in the above categories shall be made on the basis
of two elements: (i) the entity's business model for managing financial assets; (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 amount of outstanding principal;
• 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 elect, irrevocably and at initial
recognition, to include investments in equity instruments that are not required to
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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.
Where 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 income statement. If an entity reclassifies
a debt instrument from fair value with changes to profit or loss at the 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.
The effective interest rate and the estimate of expected credit losses shall not be
adjusted consequently to 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 accumulated other 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 will be valued at the reclassification
date as if it had always been valued 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
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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 an
associate shall be measured at fair value up to 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 accumulated other comprehensive income in net equity
shall be retained until the investment is de-recognised, 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.
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 2025 and 2024 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 assets. 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
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rate, foreign currency exchange rate and market risks, among others. When these
transactions meet certain requirements set out in Rules Thirty-one and Thirty-two 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 income statement.
• 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 income statement.
Specifically referring to 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 fair value in both the hedge items and the items
hedged, in terms of the type of risk hedged, are recognised directly in the income
statement.
• In cash flow hedges, valuation differences arising on the effective portion of the hedged
item are recognised temporarily in “Accumulated other 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 income statement 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
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accounting, net" in the attached income statement.
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 income statement 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 "Accumulated other comprehensive income" as valuation adjustments for
cash flow hedges in equity in the balance sheet will remain recognised in equity until the
forecast hedged transaction occurs, at which time it shall be taken to the income statement
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 "Accumulated other comprehensive income" as valuation
adjustments for cash flow hedges relating to the transaction is recognised immediately in the
income statement.
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 the Euro are deemed to be denominated in foreign
currencies.
On 31 December 2025 and 2024, the equivalent value of foreign currency financial assets and
liabilities held by ICO is as follows (in thousands of euros):
2025
2024
Assets
Liabilities
Assets
Liabilities
Pounds sterling
411 669
361 950
373 078
334 061
US Dollars
3 531 708
14 201 155
3 188 414
13 569 689
Swiss francs
43
-
27
-
Japanese yen
565
27 268
638
30 785
Other currencies
349 789
98 540
325 021
144 906
4 293 774
14 688 913
3 887 178
14 079 441
As of 31 December 2025 and 2024, the equivalent value of foreign currency financial assets
and liabilities (in thousands of euros) held by ICO is as follows, classified by type:
2025
2024
Assets
Liabilities
Assets
Liabilities
Loans to Credit Institutions
2 355 036
1 953 287
Loans to Clients
1 933 046
1 921 924
Other financial assets
5 692
11 967
Deposits with Credit Institutions
2 725 351
3 532 078
Debt securities issued
11 945 932
10 546 864
Other financial liabilities
17 630
499
4 293 774
14 688 913
3 887 178
14 079 441
On initial recognition, receivables and payables denominated in foreign currency are
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translated into the functional currency using the spot exchange rate at the time they are
recognised, understood as the exchange rate for immediate delivery. Subsequent to initial
recognition, the following rules apply for the translation of balances denominated in foreign
currency into the functional currency:
(i) Monetary assets and liabilities are translated at the closing rate, which is the average
spot rate on the 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 on the 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 income statement. 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 “Accumulated other 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 on 31 December 2025 and 2024 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 loss of 18,855 thousand euros on 31
December 2025 (gain of 6,300 thousand euros on 31 December 2024) and are recognised
under "Net exchange differences" in the attached profit-and-loss statement.
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, dividend and similar income and expenses
In general, interest income, interest expense and similar items are recognised on an accruals
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 to 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
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through profit or loss are recognised in the income statement 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 income statement at the time of
payment.
• Those arising from transactions or services that continue over time, which are
recognised in the income statement over the course of said transactions or services.
• Those relating to a single act, which are posted in the income statement when they are
incurred.
2.5.3 Non-financial income and expenses
These are recognised on an accruals basis.
2.5.4 Collections and payments deferred over time
These 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 statement, provided 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.
• 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 statement 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 statement for the period in which the impairment is reversed or reduced.
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.
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Portfolios of debt instruments, guarantees granted and contingent commitments granted,
regardless of their holder, instrumentation or guarantee, 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 probability of the collateral being realised.
In calculating the current value of the 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 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 for grouping
assets include 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 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 the income statement, the guarantees
and contingent commitments granted are classified according to the insolvency risk
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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 residing in a given
country due to circumstances other than normal commercial risk.
In addition to the specific impairment hedges indicated above, the Institute hedges the inherent
losses incurred on debt instruments not measured at fair value through the income statement
and contingent exposures classified as normal risk through a collective hedge, which are
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:
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
Normal risk in special
surveillance
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risk
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
Of which: 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
The Institute established the corresponding provisions as of 31 December 2025 with the
utmost prudence, and with the aim of being able to strengthen its balance sheet, with a detailed
analysis of each borrower where it has been 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 as 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 income statement of interest accruals based on contractual terms is
discontinued for all individually rated debt instruments and for those whose impairment losses
have been calculated collectively as having amounts past due in excess of three months.
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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
minus any impairment losses previously recognised in the income statement.
When there is objective evidence that the decline in fair value is due to impairment, unrealised
losses recognised directly in “Accumulated other comprehensive income” as valuation
adjustments in equity are recognised immediately in the income statement. If all or part of the
impairment losses are subsequently recovered, the amount, in the case of debt securities, is
recognised in the income statement for the period of recovery, while for equity instruments,
this is recognised in under “Accumulated other 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
income statement on the classification date.
In the case of investments in subsidiaries, joint ventures 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 income statement for the
period in which they occur and subsequent recoveries are recognised in the income statement
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
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 on financial guarantees is discounted by
recording the differences in the income statement 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 income
statement on a straight-line basis over the expected life of the guarantee or on
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46
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 income statement,
using the effective interest rate method calculated according to the contents of Bank 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 the lessor in operating leases, the acquisition cost of the leased
assets is presented under "Property, plant and equipment" 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 income statement
on a straight-line basis under "Other operating income".
When the Institute acts as lessee in operating lease transactions, they recognise 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
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47
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 valued, without restatement, at the amount to be paid for the services
received, and are generally recorded as personnel expenses for the year and as an accrual
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, which 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, a pension plan 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 as of 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).
The 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 attached income statement as of 31 December 2025, nor 31 December 2024.
2.10.3 Death, 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, as of 31 December 2025, the Institute has a provision for post-employment
commitments of 974 thousand euros (910 thousand euros as of 31 December 2024).
2.10.4 Severance payments
Severance payments are recognised under "Personnel expenses" in the attached income
statements with a credit to "Provisions for pensions and similar obligations" under "Provisions"
in the attached 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.
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48
As of 31 December 2025 and 2024, 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 income statement.
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
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 it 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 Property, plant and equipment
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49
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 therefore does not depreciate.
The annual depreciation charge for tangible assets is recognised under "Depreciation -
Property, plant and equipment" in the income statement 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
its recoverable amount, in which case it reduces 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 income statement.
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 income statement and
adjusts future depreciation charges accordingly. In no case 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 income statement for future years for
depreciation on the basis of new service life.
Upkeep and maintenance expenses for property, plant and equipment for own use are
charged to "Other administrative expenses" in the income statement in the year in which they
are incurred. Finance costs incurred as a result of financing property, plant and equipment for
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50
own use are posted in the income statement 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 property, plant and equipment 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
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 attached
income statement.
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 income
statement. 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 for 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 on 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
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51
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 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 2025 and 2024, 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 income
statement.
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.
• Investment activities: the acquisition and disposal of long-term assets and other
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 attached 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
income statement.
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.
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52
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 their carrying
amount at the time they are considered as such and their fair value, net of estimated costs to
sell, whichever is lower. 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
sale 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 attached income
statement. 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 income statement.
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
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 97 complaints were received in 2025 (122 in 2024), which were responded to in an
average of 1.8 working days (well below the maximum of 15 working days set out in the
procedure). 61% of the total relate to credit transactions under the COVID-19 and First Home
Guarantee facilities, 20% mentioned the traditional ICO Mediation Facilities, so many were
passed on to the financial institutions themselves. 18% refer to new direct financing products
from ICO applied for online, which means most of these point to technical issues in processing
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53
or being rejected from the product. The remaining 2% mention other issues that are unrelated
to the products or services managed by ICO.
4. DISTRIBUTION OF PROFITS
The balance for the year 2025 amounted to 277,238 thousand euros 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. In 2024, the balance was 239,796 thousand euros, applied in its
entirety to reserves.
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 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 income statement and on the value 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 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 1/2025 of 29 January 2025 of the Chairman’s Office),
has created specialised units reporting to the Directorate of Risk Management, which reports
to the Directorate General for Financing and Risks.
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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 acceptability 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 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 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.
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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 out and those
under way 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 issuances 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.
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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.
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 these gaps in balance.
Internal metrics: Liquidity cushion
In addition, the Institute maintains a cushion 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 reserve has sufficient
capacity to cover its negative liquidity gaps, which serves two purposes:
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57
• Provide flexibility in planning the volume and timing of fund-raising 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 cushion
The following tables show a comparison of liquidity inflows and outflows at different maturities
(partial and cumulative liquidity gaps). In the case of non-euro currency inflows and outflows,
their countervalue in that currency has been included. It also includes the evolution of the
liquid asset cushion with more capital, and its level of coverage of liquidity gaps at different
maturities.
Level 2A and 2B assets (according to the nomenclature of the Basel Bank Supervisory
Committee) are also incorporated as high-liquid assets, as well as the permanent deposit
facility, in order to better adhere the reported information to regulatory reports on liquidity risk.
As of 31 December 2025 (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
2,625,205
4,965,572
8,065,755
8,550,094
9,688,893
13,910,001
8,605,011
Outflows conv. euro
(2,012,677)
(3,599,632)
(10,162,985)
(12,514,875)
(8,688,080)
(10,041,060)
(7,688,271)
Partial liquidity GAPs
612,528
1,365,940
(2,097,230)
(3,964,781)
1,000,813
3,868,941
916,740
Cumulative liquidity gaps
612,528
1,978,468
(118,762)
(4,083,543)
(3,082,730)
786,211
1,702,951
Highly liquid asset cushion
11,223,098
11,118,644
11,171,913
11,003,301
9,513,260
6,118,714
3,474,306
Difference accumulated
negative gaps / cushion
11,835,626
13,097,112
11,053,151
6,919,758
6,430,530
6,904,925
5,177,257
% cushion coverage over
accumulated negative gaps
N/A
N/A
9407%
269%
309%
N/A
N/A
As of 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
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58
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 cushion
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 / cushion
8,820,530
8,083,833
7,626,661
5,640,986
2,202,382
5,178,486
4,147,632
% cushion coverage over
accumulated negative gaps
N/A
957%
586%
285%
139%
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.
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 2025 with the average total liquid assets and the average
net liquidity outflows, liquidity outflows and liquidity inflows.
LIQUIDITY COVERAGE RATIO (LCR) 2025
Quarterly average (in % and thousands of euro)
Q1
Q2
Q3
Q4
LCR RATIO
683.10%
595.88%
523.27%
434.75%
TOTAL LIQUID ASSETS
9,458,953
9,945,555
12,161,571
11,105,978
NET LIQUIDITY OUTFLOWS
1,562,011
1,682,002
2,368,844
3,064,435
Liquidity outflows
4,444,400
4,076,724
4,531,442
6,795,309
Liquidity inflows
2,882,389
2,394,722
2,162,598
3,730,874
Finally, the table below contains information on the net stable funding ratio (NSFR) at the end
of each calendar quarter of 2025, which also reflects the stable funding available at the end
of each quarter and the funding required on the same dates.
NET STABLE FUNDING RATIO (NSFR) 2025
Quarterly average (in % and thousands of euro)
Q1
Q2
Q3
Q4
NSFR RATIO
134.91%
131.40%
131.58%
124.51%
STABLE FUNDING AVAILABLE
30,209,557
29,489,929
30,420,244
28,520,669
STABLE FUNDING REQUIRED
22,392,691
22,442,510
23,118,796
22,906,864
Maturity analysis of traded and hedging financial derivatives
The contractual maturities of derivatives as of 31 December 2025 and 2024 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:
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As of 31 December 2025:
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
53,191
-
112,141
46 781
-
212,113
-Of which: credit
commitments regarded as
derivatives
Hedging derivatives
11,295,831
9,721,179
2,102,915
1,115,102
-
24,235,027
11,349,022
9,721,179
2,215,056
1,161,883
-
24,447,140
As of 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
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 non-discounted
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 on 31 December 2025 and 2024,
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
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during the year to obtain the financial resources necessary to meet the payment obligations
contracted by 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 21 November 2025.
5.4. Market risk at 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 three-pronged market risk
measurement system: 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 in the euro and dollar
balances have been applied (250 basis point for the pound), applying a gradual floor
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of -1.5% 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 35-million-euro 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 in the euro and dollar
balances (250 basis points for the pound), with the aforementioned adjustments to
interest rate movements, the sensitivity of ICO's net interest margin as of 31 December
2025 was -18.66 million euros in total, with the following distribution: -12.69 million
euros from the euro balance, -0.68 million euros from the US dollar balance and -0.83
million euros from the pound sterling balance. By exchange rate (with movements of
+/- 10% in USD/EUR and GBP/EUR exchange rates), it stood at -3.61 million euros in
dollars and -0.84 million euros in pound sterling.
The total sensitivity of ICO's Financial Margin as of 31 December 2024 was -24.48
million euros, distributed as follows: -17.21 million euros from the euro balance, -3.16
million euros from the US dollar balance and -0.41 million euros from the pound sterling
balance. By exchange rate (with movements of +/- 10% in USD/EUR and GBP/EUR
exchange rates), it stood at -3.06 million euros in dollars and -0.64 million euros 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 increases or decreases of +/- 200 basis points in the euro and dollar balances
(250 basis points for the pound) have been applied with a floor, in the scenario of falling
rates, of -1.5% for immediate maturities, a floor that will increase by 3 basis points per
year, until reaching 0% for maturities of 50 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
As of 31 December 2025, ICO's Net Asset Value sensitivity values stood at -6.48% of
the same in aggregate value with the following balance distribution: -5.89% for the euro
interest rate, -0.23% for the US dollar and -0.10% for the pound sterling. By exchange
rate, the dollar would show a sensitivity of -0.18% and the pound -0.09%.
As of 31 December 2024, ICO's Net Asset Value sensitivity values were -7.60% with
the following balance distribution: -7.07% for the euro interest rate, -0.29% for the US
dollar balance and -0.04% for the pound sterling balance. Exchange rate sensitivities
were -0.18% for the dollar and -0.03% for the pound.
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
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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 property, plant and equipment) 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 as of 31 December
2025 are the euro and the US dollar.
In terms of balance sheet assets, the euro accounts for approximately 90.31% of the
total, the US dollar for 7.97% and other currencies for the remainder.
On the liabilities side, they account for around 97.99% of the balance sheet total, with
approximately 60.62% of the total in euros and 37.37% in US dollars.
At year-end 2024, ICO's main currencies of activity were also the euro and the US
dollar. In this case, between them they accounted for around 98.26% of total assets,
with the euro accounting for 90.19% and the dollar for the remaining 8.07%, while they
accounted for 97.80% of liabilities, 56.36% in euros and 41.45% in dollars.
With regard to the currencies in which 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 at 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.
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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
on their valuation as a going concern, that is, under the premise that the company is in
operation, in addition to assessing collateral or personal guarantees, where applicable, in
order to issue an opinion on the risk operation and the client or 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, information from the World Bank, International Monetary Fund,
ratings agencies and the OECD are used.
5.6. Operational risk at 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.
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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.
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
2025
2024
Amount
% of total
Amount
% of total
Real estate investment
565
4%
347
2%
Construction of subsidised housing for sale
1
0%
2
0%
Construction of subsidised housing for rent
553
4%
310
2%
Land acquisition and development
11
0%
35
0%
Other
-
-
-
-
Tangible investment
11,879
80%
12,743
79%
Renewable energies
3,218
22%
3 135
20%
Water infrastructure
81
1%
72
0%
Electricity infrastructures
1,946
13%
2 140
13%
Gas and hydrocarbon infrastructures
1,291
9%
1 430
9%
Transport infrastructure
3,580
24%
3 970
25%
Tourism and leisure
59
0%
109
1%
Social and health infrastructures
104
1%
95
1%
Telecommunications
220
1%
457
3%
Audiovisual production and exhibition
34
0%
48
0%
Business parks and other constructions
16
0%
21
0%
Other
1,047
7%
962
5%
Material Investment: R&D&I
283
2%
304
2%
ICO financing facilities-Auton.Comm. Agencies
0
0
-
-
Company acquisitions
337
2%
417
3%
General corporate needs
1,365
9%
1 590
10%
Restructuring of liabilities
84
1%
146
1%
General budgets of the Local Auth.
600
4%
816
5%
14,830
100%
16,059
100%
(*) Including loans and advances to clients 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.
As of 31 December 2025 and 2024 the outstanding risk is mainly concentrated in the sectors
included under the heading "Material Investment", which accumulates 80% of the total risk in
2025 (79% in 2024). Within this heading, the weight of the following sectors stands out:
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65
"Transport infrastructure" (24% of the total in 2025 and 25% in 2024), "Renewable energies",
with 22% of the total risk in 2025 (20% in 2024) and "Electricity infrastructure", (13% of the
total balance in 2025 and 2024).
5.7.2 Classification by geographical destination of financial investment
The total risk as of 31 December 2025 is distributed between 70% corresponding to financing
operations in Spain, amounting to 10.332 billion (74% in 2024 for 11.823 billion euros), and
30% in operations aimed at financing investment projects in other countries, amounting to
4.498 billion euros (4.237 billion euros in 2024).
The distribution of risk for investment projects in Spain by Autonomous Community in 2025 is
as follows: Nationwide 73%, Madrid with 10%, Andalusia with 2%, Catalonia and Valencia with
3% (77%, 9%, 2%, 3% and 2.6% in 2024, respectively).
As of 31 December 2025 and 2024, the risk of transactions destined for international markets
is distributed as follows:
Millions of euros
2025
2024
Amount
Percentage
Amount
Percentage
European Economic Union
748
17%
1,052
25%
Latin America
820
18%
199
5%
United States
440
10%
422
10%
Rest of Europe
427
9%
1,868
44%
Multi-region (*)
2,063
46%
696
16%
4,498
100%
4,237
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 as of 31 December 2025 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
1 976 270
88 648
25 167
73 258
15 089
-
25 167
301
Other financial companies
(financial activity)
300 236
37 625
86 380
54 091
37 625
32 290
-
-
Non-financial companies
(non-financial activity)
10 515 307
397 864
2 258 263
2 236 243
76 150
148 308
73 074
122 352
Constr / real estate dev
326 320
326 320
-
326 320
-
-
-
-
Civil works
331 930
-
205 917
128 064
8 637
69 215
-
-
Other purposes
9 857 057
71 544
2 052 346
1 781 859
67 513
79 092
73 074
122 352
Large companies
9 024 694
49 402
1 479 480
1 295 019
25 749
29 671
73 074
105 369
SMEs and indiv. comp.
832 363
22 142
572 866
486 840
41 764
49 421
-
16 983
Rest of Households
28 148
6 839
7 498
6 096
743
-
-
7 498
Housing
13 672
743
-
-
743
-
-
-
Consumer
883
-
-
-
-
-
-
-
Other purposes
13 593
6 096
7 498
6 096
-
-
-
7 498
TOTAL
12 819 961
530 976
2 377 308
2 369 686
129 607
180 598
98 241
130 151
The distribution as of 31 December 2024 is as follows:
Sec. int. loans: carrying amount over LTV
TOTAL
Of which:
Sec. real
Of which:
other sec. int.
< 40%
40 – 60%
60- 80%
80 – 100%
> 100%
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66
estate
loans
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
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:
2025
2024
(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
49 350
35 088
Total outstanding payments
2 765
1 303
Amount paid in less than maximum period (late payment regulations)
49 350
35 088
(number of invoices)
Invoices paid in less than the maximum period (late payment regulations)
4 265
3 592
(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 the reports on their 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 report on 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
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67
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 date of invoice (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.
5.9 Concentration of risks and other specific legislation for ICO
As of 31 December 2025 and 2024, 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.
On 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:
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68
2025
2024
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
579 727
-
121 038
361 589
-
163 481
Of which: doubtful
50 324
-
49 158
67 829
-
66 408
Token entry
Failed assets
-
-
-
-
-
-
Thousands of euros
2025
2024
Token entry:
Total loans and advances to clients, excluding public administrations
10 843 691
10 420 735
Total assets
42 602 053
37 780 225
Full coverage for normal risk
388 447
368 565
The total lending for construction and real estate development financing as of 31 December
2025 represented 1.36% of the balance sheet total (0.96% as of 31 December 2024).
• Breakdown of financing for construction and property development (gross amounts):
Thousands of euros
2025
2024
1 Unsecured by mortgage
11 385
35 340
2 Secured by mortgage
568 342
326 249
2.1 Completed buildings
287 737
277 004
2.1.1 Housing
245 419
249 629
2.1.2 Other
42 318
27 375
2.2 Buildings under construction
280 606
49 245
2.2.1 Housing
280 606
49 245
2.2.2 Other
-
-
2.3 Land
-
-
2.3.1 Developed land
-
-
2.3.2 Other land
TOTAL
579 727
361 589
• Loans to households for home purchase:
Thousands of euros
2025
2024
Gross
amount
Of which:
doubtful
Gross amount
Of which:
doubtful
Loan for home purchase
13 768
-
14 452
-
-
Unsecured by mortgage
13 020
-
14 090
-
-
Secured by mortgage
748
-
362
-
-
• Breakdown of lending to households for home purchase, mortgage collateral
(percentage of risk over last available valuation, LTV):
As of 31 December 2025:
Thousands of euros
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69
LTV<40%
40%<LTV<60%
60%<LTV<80%
80%<LTV<100%
LTV>100%
Gross amount
455
171
122
-
-
• Of which:
doubtful
-
As of 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
-
• Foreclosed assets received in payment of debts from construction and property
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 as of 31 December 2025
and 2024 (gross amounts), as required by Bank of Spain Circular 6/2013 on public and
confidential financial reporting standards, is set out below:
As of 31 December 2025 (gross amounts in thousands of euros):
Secured
Unsecured
TOTAL
amounts
TOTAL coverage
Public Administrations
-
25 038
25 038
15 685
- of which: doubtful
-
11 935
11 935
11 935
Finance companies (financial
assets)
-
-
-
-
- of which: doubtful
-
-
-
-
Non-financial companies and
industrial enterprises
358 545
176 714
535 259
232 537
- of which: doubtful
170 858
88 113
258 971
211 646
- of which: non-doubtful real
estate finan
7 825
-
7 825
4 593
- of which: doubtful real estate
finan
1 138
-
1,138
1 138
Other households
152
-
152
-
TOTAL
358 697
201 752
560 449
248 222
As of 31 December 2024 (gross amounts in thousands of euros):
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70
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
As of 31 December 2025, the total number of refinanced or restructured operations was 90
(87 as of 31 December 2024): 32 unsecured transactions (34 as of 31 December 2024) and
58 secured transactions (53 as of 31 December 2024) Of the total number of refinanced or
restructured transactions, 45 are of doubtful risk (43 as of 31 December 2024).
6. CASH, BALANCES WITH CENTRAL BANKS AND OTHER DEMAND DEPOSITS
The breakdown of the balance of this item in the balance sheets as of 31 December 2025 and
2024 is as follows:
Thousands of euros
2025
2024
Cash
4
6
Cash in Bank of Spain
3 600 833
2 664 864
Of which: Mandatory for compliance with minimum reserve ratios
141 775
110 540
Other demand deposits
15 244
19 966
3 616 081
2 684 836
7. FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING
The entire balance of these items in the balance sheets as of 31 December 2025 and 2024
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) as of 31 December 2025 and 2024:
Thousands of euros
Notional
Asset
Liability
2025
2024
2025
2024
2025
2024
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71
By market type
Organised markets
-
-
-
-
-
Unorganised markets
212 113
307 448
11 481
15 448
10 924
14 723
212 113
307 448
11 481
15 448
10 924
14 723
By product type
Swaps
212 113
307 448
11 481
15 448
10 924
14 723
212 113
307 448
11 481
15 448
10 924
14 723
By counterpart
Credit institutions
106 057
153 724
11 481
15 448
10 924
14 723
Other sectors
106 056
153 724
-
-
-
-
212 113
307 448
11 481
15 448
10 924
14 723
By type of risk
Exchange rate risk
53 191
117 913
8 694
10 618
8 645
10 440
Interest rate risk
158 922
189 535
2 787
4 830
2 279
4 283
212 113
307 448
11 481
15 448
10 924
14 723
The fair value of these items has been calculated in all cases, both in 2025 and 2024, taking
as a reference the implicit curves of the money and government bond markets.
As of 31 December 2025 and 2024, 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
2025
2024
Tier I
Tier II
Tier III
Tier I
Tier II
Tier III
Asset trading derivatives
-
11 481
-
-
15 448
-
Liability trading derivatives
-
10 924
-
-
14 723
-
The amounts shown below are those recognised in the income statements for 2025 and 2024
(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
2025
2024
Profit
Loss
Net
Profit
Loss
Net
Tier 1
-
-
-
-
-
-
Tier 2
31 437
(33 154)
(1 717)
45 874
(46 692)
(818)
Tier 3
-
-
-
-
-
-
During the 2025 and 2024 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. FINANCIAL ASSETS NOT HELD FOR TRADING MANDATORILY MEASURED AT
FAIR VALUE, THROUGH PROFIT OR LOSS
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72
The breakdown of the net balance of this item in the balance sheet as of 31 December 2025
and 2024 is as follows:
Thousands of euros
2025
2024
Equity instruments
-
-
Debt securities
-
-
No fair value gains and losses were recognised in the income statement in this respect in 2025
and 2024 (Note 30).
9. FINANCIAL ASSETS AT FAIR VALUE, THROUGH OTHER COMPREHENSIVE
INCOME
The breakdown of the balance of this item in the balance sheet as of 31 December 2025 and
2024, by investment, is as follows:
Thousands of euros
2025
2024
Equity instruments:
FOND ICO Growth (1)
128 209
132 465
FOND ICO Sustainability and Infrastructures (2)
205 047
166 902
FOND ICO Global (3)
1 388 997
1 235 511
FOND ICO Next Tech (4)
395 804
278 022
FONS MEDITERRANEA FCR (5)
6
4
MARGUERITE FUND MEH (6)
30 989
32 016
IEF (7)
33 013
31 088
SWIFT (8)
9
8
EDW (9)
265
237
MARGUERITE III FUND INVEST EU (10)
28 760
18 438
BEKA & BOLSCHARE IBERIAN INVEST EU (11)
23 770
17 152
RURAL DE INVERSIONES INVEST EU (12)
6 081
2 887
SC CLIMATE IMPACT INVEST EU (13)
28 677
19 122
IBER ACTIVOS INMOBILIARIOS (14)
-
-
CELSA STEEL SA (15)
-
-
2 269 627
1 933 852
Debt securities (16)
960 165
1 403 450
3 229 792
3 337 302
The balance, net of the tax effect, of "Accumulated other comprehensive income" as changes
in the fair value of these financial instruments as of 31 December 2025 and 2024 is as follows
(Note 21):
Thousands of euros
2025
2024
Debt instruments
4 868
9 522
Equity instruments
417 532
371 765
422 400
381 287
The movements during 2025 and 2024 in “Financial assets at fair value, through other
comprehensive income” are shown below:
Thousands of euros
2025
2024
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73
Balance at beginning of year
3 337 302
1 624 558
Additions for purchases
570 962
2 041 557
Sales and depreciation
(737 204)
(343 652)
Fair value changes (Note 21)
58 732
14 839
Provision for impairment
-
-
Other movements due to impairment losses (application)
-
-
Year-end balance
3 229 792
3 337 302
(1) FOND ICO Growth (previously FONDICO Pyme). A venture capital fund set up in May
1993, in which the Institute is the sole shareholder, managed by Axis Participaciones
Empresariales. No contributions in 2025 (contributions of 15,025 thousand euros in
2024). The amount committed by ICO and pending disbursement stood at 61,000
thousand euros on 31 December 2025 (70,000 thousand euros on 31 December
2024).
(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 2025 were 33,318 thousand euros (net contributions
of 21,240 thousand euros in 2024). The amount committed by ICO pending
disbursement stood at 70,000 thousand euros on 31 December 2025, 39,000 of which
were commitments registered within the framework of the RRM implemented at ICO
(51,000 thousand euros on 31 December 2024).
(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 2025 were 67,000 thousand euros (142,000 thousand euros in 2024). The amount
committed by ICO pending disbursement stood at 877,000 thousand euros on 31
December 2025 271,000 of which were commitments registered within the framework
of the RRM implemented at ICO (876,000 thousand euros on 31 December 2024).
(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 2025 were 145,652 thousand euros (167,900 thousand euros in 2024).
The amount committed by ICO and pending disbursement stood at 542,000 thousand
euros on 31 December 2025 (586,000 thousand euros on 31 December 2024).
(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 regions of the Maghreb. Currently
in the liquidation phase, with no contributions nor reimbursements in 2025
(reimbursement of 2,074 thousand euros in 2024).
(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 in either 2025 or 2024.
(7) EIF. Share equivalent to 0.66% of the total European Investment Fund as of 31
December 2025 (0.66% as of 31 December 2024). There have been no net
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74
contributions in either 2025 or 2024. As of 31 December 2025, an amount of 38,933
thousand euros (38,933 thousand euros as of 31 December 2024) 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 as of March 2012.
(10) MARGUERITTE 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 2025 there have been net contributions
of 10,035 thousand euros (net contributions of 7,090 thousand euros as of 31
December 2024).
(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 2025 there were net contributions amounting to 4,410 thousand euros (17,783
thousand euros in 2024).
(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 2025 there were net contributions of 3,415 thousand euros (2,954 thousand euros
in 2024).
(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 2025 there were net contributions amounting to 6,566 thousand euros (19,753
thousand euros in 2024).
(14) IBER ACTIVOS INMOBILIARIOS. 7.28% stake in the entity, fully provisioned (net
book amount nil).
(15) CELSA STEEL 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
2025
2024
Maturity up to 1 year
477 157
449 194
Maturity between 1 and 2 years
483 008
477 756
Maturity between 2 and 3 years
-
476 500
Maturity over 3 years
-
-
960 165
1 403 450
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75
As of 31 December 2025 and 2024, 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
2025
2024
Tier I
Tier II
Tier III
Tier I
Tier II
Tier III
Debt securities
960 165
-
-
1 403 450
-
-
Equity instruments
-
-
2 269 627
1 933 852
-
There were no derecognitions in 2025 that had an impact on the income statement, nor in
2024 (Note 28).
10. FINANCIAL ASSETS AT AMORTISED COST
The breakdown of the balance of this item in the balance sheets as of 31 December 2025 and
2024 is as follows (including impairment losses and other valuation adjustments):
Thousands of euros
2025
2024
Debt securities (Note 10.1)
9 810 812
7 429 279
Loans and advances:
25 350 679
23 375 061
Credit institutions (Note 10.2)
12 436 391
10 477 256
Customers (Note 10.3)
12 914 288
12 897 805
35 161 491
30 804 340
The movement in impairment losses recognised for credit risk hedging and the cumulative
amount of impairment losses at the beginning and end of 2025 and 2024 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 as of 1 January 2024
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
-
-
-
-
Translation adjustments
512
381
307
1 200
Balance as of 31 December 2024
10 645
579 716
142 317
732 678
Allocations charged to profit and loss
12 038
100 105
14 505
126 648
Recoveries charged to profit and loss
(143)
(190 769)
(6 430)
(197 342)
Use of funds
-
-
-
-
Other movements
-
1 435
-
1 435
Translation adjustments
(1 004)
144
(729)
(1 589)
Balance as of 31 December 2025
21 536
490 631
149 663
661 830
The breakdown of provisions for doubtful risks and for normal risks under special surveillance
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76
based on the criteria for their determination is presented below:
Thousands of euros
2025
2024
Provision for doubtful risks (with defaults):
349 513
424 317
On account of late payment
4 336
8 591
For reasons other than late payment
345 177
415 726
Provision for normal risk in special surveillance
141 118
155 399
TOTAL
490 631
579 716
The provision for normal risk under special surveillance relates to credit assets amounting to
875,291 thousand euros on 31 December 2025 (1,067,440 thousand euros as of 31 December
2024).
The following is a detail of those financial assets classified as loans and receivables and
considered impaired due to their credit risk on 31 December 2025 and 2024, classified by
counterparty as well as according to the time elapsed since the maturity of the oldest unpaid
amount at those dates of each transaction. Impaired assets guaranteed by the State are
detailed in Note 10.3.
Impaired assets as of 31 December 2025
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
575 627
-
-
-
-
-
-
48 653
524 280
Impaired assets as of 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
On 31 December 2025 there was a balance of assets with country risk amounting to 1,122,664
thousand euros, with a country risk hedge of 21,536 thousand euros (636,619 thousand euros
on 31 December 2024 with a hedge of 10,645 thousand euros).
The amount of non-impaired past-due assets for 2025 and 2024 stood at 3,965 thousand
euros and 36,294 thousand euros, respectively, with an age in both years of between one and
three months.
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77
The movement in impaired financial assets written off as their recovery is considered remote
(write-offs) is as follows:
Thousands of euros
2025
2024
Balance at beginning of year
1 365 718
1 376 215
Additions:
4 788
54 207
For use of balance
For other reasons
4 788
54 207
Recoveries:
(342 491)
(67 046)
By cash collection without additional financing
(12 682)
(66 063)
By asset foreclosure
-
-
Other
(329 809)
(983)
Permanent derecognitions: other causes:
Net change due to exchange rate differences
(4 325)
2 342
Balance at year-end
1 023 690
1 365 718
The net amount recognised in the attached income statement for 2025 and 2024 as a result
of the movement in assets whose recovery is considered remote (written-off assets) amounts
to a gain of 12,807 thousand euros and 66,063 thousand euros, 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
for fixed-income securities and securities-bearing financial assets.
The breakdown of the balance of this item in the balance sheet as of 31 December 2025 and
2024, by type of counterparty, is as follows:
Thousands of euros
2025
2024
By types of counterparts
Resident public administrations
5 286 144
4 271 761
Resident credit institutions
99 429
-
Other resident sectors
4 216 703
2 981 290
Other non-resident sectors
208 536
176 228
9 810 812
7 429 279
The breakdown by maturity on 31 December 2025 and 2024 is as follows:
Thousands of euros
2025
2024
By maturity
Up to 1 year
1 438 410
1 080 034
Over 1 year up to 2 years
2 632 250
551 762
Over 2 years up to 3 years
1 982 778
2 206 222
Over 3 years up to 4 years
917 694
1 508 521
Over 4 years up to 5 years
1 045 705
663 519
Over 5 years
1 793 975
1 419 221
9 810 812
7 429 279
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78
As of 31 December 2025 these assets bore an average annual interest rate of 2.76% (31
December 2024: 2.82%).
The interest accrued during 2025 and 2024 on these securities amounted to 257,145 thousand
euros and 203,042 thousand euros, respectively, and is included under "Interest income" in
the attached income statement (Note 24).
The Institute had credit risk coverage as of 31 December 2025 (normal risk) amounting to
38,049 thousand euros on these assets (27,497 thousand euros on 31 December 2024).
The movements during 2025 and 2024 in the item “Debt securities at amortised cost” are
shown below:
Thousands of euros
2025
2024
Balance at beginning of year
7 429 279
6 302 584
Additions for purchases
5 563 289
3 280 693
Movements due to impairment losses
-
12 923
Depreciation and sales
(3 181 756)
(2 166 921)
Year-end balance
9 810 812
7 429 279
No gains or losses on financial transactions arising from the derecognition of assets included
under "Debt securities" were recognised in 2025, nor in 2024 (Note 28).
10.2 Loans and advances to credit institutions
The breakdown of the balance of this item in the balance sheet as of 31 December 2025 and
2024 is as follows:
Thousands of euros
2025
2024
By nature -
Deposits with financial institutions (Note 10.2.1)
5 132 342
2 545 820
Nationally mediated loans (Note 10.2.2)
5 052 782
6 047 342
Internationally mediated loans (Note 10.2.3)
2 204 535
1 830 816
Other loans to credit institutions (Note 10.2.4)
-
-
12 389 659
10 423 978
Impairment losses
(28 174)
(13 627)
Other valuation adjustments (interest and financial charges)
74 906
66 905
12 436 391
10 477 256
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79
10.2.1 Deposits with financial institutions
The balance of "Deposits with financial institutions" grouped by maturity as of 31 December
2025 and 2024 is shown below:
Thousands of euros
2025
2024
Up to 1 year
5 132 342
2 545 820
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
-
-
5 132 342
2 545 820
During the 2025 financial year, the heading "Deposits with financial institutions" accrued an
average annual interest rate of 2.44% (3.61% during 2024). All deposits included under this
heading are term deposits, as of 31 December 2025 and 2024.
The interest accrued during 2025 and 2024 on these loans amounted to 91,038 thousand
euros and 68,576 thousand euros, respectively, and is included under "Interest income" in the
income statement (Note 24).
10.2.2 Nationally mediated loans
This Institute 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 as of 31 December 2025 and 2024. During the 2025
and 2024 financial years no new mediation facilities were approved in which the Institute
assumes the risk of the final borrowers.
The detail of the balance of nationally mediated loans as of 31 December 2025 and 2024 by
years of maturity is as follows:
Thousands of euros
2025
2024
Up to 1 year
1 376 428
1 497 157
Over 1 year up to 2 years
1 128 385
1 313 753
Over 2 years up to 3 years
921 554
1 062 726
Over 3 years up to 4 years
629 808
845 967
Over 4 years up to 5 years
389 228
562 118
Over 5 years
607 379
765 621
5 052 782
6 047 342
As of 31 December 2025 and 2024, the nationally mediated loans bore an average annual
interest rate of 3.23% and 3.57% respectively.
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80
The interest accrued during 2025 and 2024 on domestic mediation loans amounted to 137,757
thousand euros and 177,990 thousand euros, respectively, and is recognised under "Interest
income" in the income statement (Note 24).
10.2.3 Internationally mediated loans
Internationally mediated loans are a new activity of ICO as of 2018, with the aim of supporting
the internationalisation of Spanish companies through financing to banks in the place of
investment.
The detail of the balance of internationally mediated loans as of 31 December 2025 and 2024
by years of maturity is as follows:
Thousands of euros
2025
2024
Up to 1 year
388 929
248 390
Over 1 year up to 2 years
550 357
202 439
Over 2 years up to 3 years
208 523
491 126
Over 3 years up to 4 years
209 151
155 174
Over 4 years up to 5 years
215 325
143 202
Over 5 years
632 250
590 485
2 204 535
1 830 816
As of 31 December 2025 and 2024, the internationally mediated loans bore an average annual
interest rate of 3.23 % and 3.57 % respectively.
The interest accrued during 2025 and 2024 on international mediation loans amounted to
96,527 thousand euros and 88,904 thousand euros, respectively, and is recognised under
"Interest income" in the attached income statement (Note 24).
This heading includes impairment losses for insolvency risk (normal credit risk and country
risk) totalling 28,175 thousand euros on 31 December 2025 (13,627 thousand euros on 31
December 2024) (Note 10.2).
10.3 Loans and advances to customers
The breakdown of the balance of this item in the balance sheet as of 31 December 2025 and
2024, by type of counterparty, is as follows:
Thousands of euros
2025
2024
By types of counterparts
Resident public administrations
1 977 027
2 347 183
Non-resident public administrations
69 069
68 994
Other resident sectors
9 365 674
9 071 516
Other non-resident sectors
1 965 131
1 883 945
Other financial assets
94 327
150 190
13 471 228
13 521 828
Impairment losses
(595 607)
(691 554)
Other valuation adjustments (interest and financial charges)
38 667
67 531
12 914 288
12 897 805
The heading "Other resident sectors" includes the value of certain investments made in
various Economic Interest Groupings (4,242 thousand euros as of 31 December 2025 and
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81
23,994 thousand euros as of 31 December 2024) 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 income statement (balance of the provision of 30,875 thousand euros on 31 December
2025 and 33,154 thousand euros on 31 December 2024) (Notes 19 and 23).
The interest accrued during 2025 and 2024 on these loans amounted to 508,660 thousand
euros and 651,669 thousand euros, respectively, and is recognised under "Interest income"
in the income statement (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" as of 31 December 2025 and 2024, by
type of counterparty and type of instrument, are detailed below:
Thousands of euros
2025
2024
Balances included in "resident public administrations"
Loans to the Central Government
1 608 634
1 779 648
Loans to regional governments
368 393
567 537
Valuation adjustments
(68 996)
(89 188)
1 908 031
2 257 997
Balances included in "Other resident sectors
Doubtful assets
3 862
4 249
Loans to other public bodies
2 185 454
2 399 859
Lending to other sectors
464 168
434 215
2 653 484
2 838 323
Total State-guaranteed operations
4 561 515
5 096 320
The breakdown of "Loans to Central Government" as of 31 December 2025 and 2024 is as
follows:
Thousands of euros
2025
2024
Loans to the State and its Autonomous Bodies
1 607 761
1 779 064
Accounts receivable from the Public Treasury
873
584
1 608 634
1 779 648
The heading "Accounts receivable 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. The balances of these accounts,
which are stated at nominal value, do not bear any interest.
Interest income contributed to the income statement by public sector entities during 2025 and
2024 (Note 24) is as follows:
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82
Thousands of euros
2025
2024
Central Administration
Regional Administrations
Other public sector entities
46 879
18 580
79 018
88 220
26 388
103 355
144 477
217 963
The breakdown of the principal amounts of loans classified under "Loans and advances to
customers", including valuation adjustments and excluding impairment losses, by maturity, as
of 31 December 2025 and 2024 is as follows:
Thousands of euros
2025
2024
By maturity
Up to 1 year
2 419 219
2 392 005
Over 1 year up to 2 years
1 493 818
1 115 602
Over 2 years up to 3 years
1 614 963
1 604 366
Over 3 years up to 4 years
1 675 620
1 803 091
Over 4 years up to 5 years
1 128 421
1 921 299
Over 5 years
5 177 854
4 752 996
13 509 895
13 589 359
As of 31 December 2025 and 2024, loans to customers bore an average annual interest rate
of 4.00 % and 4.88 % respectively.
As of 31 December 2025, no losses were recognised in the income statement for financial
transactions arising from the derecognition of assets included under "Loans and receivables"
(losses of 1,535 thousand euros as of 31 December 2024) (Note 28).
11. DERIVATIVES – HEDGE ACCOUNTING
This item in the attached 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 non-Euribor remuneration,
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.
Starting 30 September 2025, the Institute has decided to record derivatives that swap a fixed
interest rate for a variable rate as fair value hedges, in those which are also perform an
exchange rate swap. Before this date, the Institute had considered these to be cash flow
hedges. This change should be considered as a change in estimation that is aligned both with
the Entity’s hedging policy and the applicable accounting standards.
For the years ending on 31 December 2025 and 2024, 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:
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83
Thousands of euros
Notional
Asset
Liability
2025
2024
2025
2024
2025
2024
By type of hedge
Fair value hedges
12 086 996
11 080 440
74 753
283 080
208 668
80 222
Cash flow hedges
12 148 031
10 650 545
62 392
71 399
580 562
1 121 259
24 235 027
21 730 985
137 145
354 479
789 230
1 201 481
By product type
Swaps
24 235 027
21 730 985
137 145
354 479
789 230
1 201 481
24 235 027
21 730 985
137 145
354 479
789 230
1 201 481
By counterpart
Credit institutions
24 235 027
21 730 985
137 145
354 479
789 230
1 201 481
24 235 027
21 730 985
137 145
354 479
789 230
1 201 481
By type of risk
Exchange rate risk
16 770 920
12 054 197
46 809
186 350
688 362
1 096 100
Interest rate risk
7 464 107
9 676 788
90 336
168 129
100 868
105 381
24 235 027
21 730 985
137 145
354 479
789 230
1 201 481
As of 31 December 2025 and 2024, 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
2025
2024
Tier I
Tier II
Tier III
Tier I
Tier II
Tier III
Asset hedging derivatives
-
137 145
-
-
354 479
-
Liability hedging derivatives
-
789 230
-
-
1 201 481
-
The fair value of these items has been calculated in all cases, both in 2025 and 2024, 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 2025 and 2024
financial years is as follows:
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84
Thousands of euros
Group
entities
Multi-group
entities
Associates
Total
Balance as of 1 January 2024
1 940
-
55 526
57 466
Additions
-
-
-
-
Withdrawals
-
-
-
-
Other movements
-
-
-
-
Impairment
-
-
-
-
Balance as of 31 December 2024
1 940
-
55 526
57 466
Additions
-
-
2 439
2 439
Withdrawals
-
-
-
-
Other movements
-
-
-
-
Impairment
-
-
-
-
Balance as of 31 December 2025
1 940
-
57 965
59 905
Annex I contains the details of the shareholdings, as well as the most relevant data as of 31
December 2025 and 2024.
13. PROPERTY, PLANT AND EQUIPMENT
The changes in property, plant and equipment and related accumulated depreciation during
2025 and 2024 were as follows:
Buildings for
own use
Furniture,
vehicles and other
property.
Total
Cost
Balances as of 1 January 2025
117 872
17 156
135 028
Additions
170
49
219
Disposals by sale or by other means
-
-
-
Balances as of 31 December 2025
118 042
17 205
135 247
Accumulated depreciation
Balances as of 1 January 2025
44 099
8 943
53 042
Allocations
1 937
291
2 228
Transfers and other movements
-
-
-
Balances as of 31 December 2025
46 036
9 234
55 270
Impairment losses
As of 31/12/2025
-
651
651
Net tangible assets
Balances as of 31 December 2025
72 006
7 320
79 326
Cost
Balances as of 1 January 2024
117 205
16 592
133 797
Additions
673
564
1 237
Disposals by sale or by other means
(6)
-
(6)
Balances as of 31 December 2024
117 872
17 156
135 028
Accumulated depreciation
Balances as of 1 January 2024
42 173
8 684
50 857
Allocations
1 926
259
2 185
Transfers and other movements
Balances as of 31 December 2024
44 099
8 943
53 042
Impairment losses
As of 31/12/2024
-
651
651
Net tangible assets
Balances as of 31 December 2024
73 773
7 562
81 335
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85
As of 31 December 2025, the balance of property, plant and equipment for own use for a gross
amount of 21,203 thousand euros (32,474 thousand euros as of 31 December 2024) was fully
depreciated.
In accordance with the Institute's policy, all tangible assets were insured as of 31 December
2025 and 2024.
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 as of 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 53,106 thousand
euros, creating a revaluation reserve for the resulting capital gain, net of the tax effect. The
discounted carrying amount was used as deemed cost at that date.
The revaluation reserve for this item amounted to 15,394 thousand euros as of 31 December
2025 (16,305 thousand euros as of 31 December 2024) (Note 20).
The fair value of some of the entity's property, plant and equipment as of 31 December 2025
and 2024, 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
2025
2024
Book value
Fair value
Book value
Fair value
Property, plant and equipment for own use
79 326
134 027
81 335
114 252
Real estate
70 508
125 209
72 275
105 192
Other
7 320
7 320
7 562
7 562
Property, plant and equipment under
construction
1 498
1 498
1 498
1 498
The fair value of the property, plant and equipment shown in the table above has been
estimated as follows:
• For those assets for which an up-to-date 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 2025 and
2024.
14. INTANGIBLE ASSETS
Details of this item in the balance sheet as of 31 December 2025 and 2024 relate exclusively
to other intangible assets.
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86
Thousands of euros
Estimated service life
2025
2024
With indefinite service life
-
-
-
With a finite service life
3 years to 10 years
70 948
63 270
Total gross
70 948
63 270
Of which:
Internally developed
3 years
61 400
55 589
Other
10 years
9 548
7 681
Accumulated depreciation
(53 243)
(48 631)
Impairment losses
(2 137)
(2 137)
15 568
12 502
As of 31 December 2025 and 2024, all the items included under this heading relate to
computer software. As of 31 December 2025 the amount of fully amortised intangible assets
is 47,376 thousand euros (47,260 thousand euros as of 31 December 2024).
15. TAX ASSETS AND LIABILITIES
The detail of the balance of Tax Assets and Liabilities as of 31 December 2025 and 2024 is
as follows:
Thousands of euros
Assets
Liabilities
2025
2024
2025
2024
Current taxes:
970
877
8 147
3 971
Corporate income tax (Note 23)
-
-
6 318
2 247
VAT
970
877
17
11
Income tax (IRPF)
-
-
1 254
1 234
Social Security
-
-
558
479
Deferred taxes:
243 671
401 030
196 960
179 340
Impairment losses on loans and receivables
88 220
86 072
-
-
Cash flow hedge valuation (Note 21)
155 451
314 958
-
-
Reappraisal of real estate
-
-
15 932
15 932
Restatement of financial assets at fair value through other compreh. inc.
(Note 21)
-
-
181 028
163 408
244 641
401 907
205 107
183 311
The movements during 2025 and 2024 in deferred tax assets and liabilities are shown below:
Thousands of euros
Assets
Liabilities
2025
2024
2025
2024
Balance at beginning of year
401 030
148 970
179 340
172 981
Impairment losses on Loans and Receivables
2 148
12 443
-
-
Cash flow hedge valuation (Note 21)
(159 507)
239 617
-
-
Restatement of financial assets at fair value through other compreh.
inc. (Note 21)
-
17 620
6 359
Year-end balance
243 671
401 030
196 960
179 340
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16. OTHER ASSETS AND OTHER LIABILITIES
The breakdown of this “Other Assets” in the attached balance sheet as of 31 December 2025
and 2024 is as follows:
Thousands of euros
OTHER ASSETS
2025
2024
Other assets
27 415
13 668
Accruals
19 208
16 942
46 623
30 610
“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 2025, the overall amount of these fees receivable by ICO is 8,035 thousand euros per
annum (8,024 thousand euros in 2024), also recognised in the attached income statement 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
pending accrual in the Institute's income statement (570 thousand euros as of 31 December
2025 and 695 thousand euros as of 31 December 2024).
The composition of the balance of "Other liabilities" in the balance sheet as of 31 December
2025 and 2024 is as follows:
Thousands of euros
OTHER LIABILITIES
2025
2024
Other liabilities
200
200
Accruals
51 604
53 214
51 804
53 414
The "Accruals" heading includes the amounts accrued and pending on commissions payable
to financial institutions for the concepts of "2025 mediation facility rebate quota" amounting to
2,681 thousand euros (55 thousand euros in 2024). Also included are the fees for managing
the various facilities, which were charged to the RDL12/95 Fund (in accordance with the
applicable regulations) and are pending accrual in the Institute’s income statement, amounting
to 40,198 thousand euros as of 31 December 2025 (46,811 thousand euros as of 31
December 2024).
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 on 31 December 2025 and 31 December 2024 arose from
financing related to land for real estate development, construction or property development.
The movement in the years ending on 31 December 2025 and 2024 is shown below:
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Thousands of euros
Cost
Impairment
Total
Balance as of 1 January 2024
11 802
(11 802)
-
Additions
81
(81)
-
Withdrawals/Utilisations
(130)
130
-
Transfers
-
-
-
Balance as of 31 December 2024
11 753
(11 753)
-
Additions
204
(204)
-
Withdrawals/Utilisations
(1 057)
1 057
-
Transfers
Balance as of 31 December 2025
10 900
(10 900)
-
Impairment charges of 496 thousand euros were recognised for these non-financial assets in
2025 (81 thousand euros in 2024).
Losses on the sale of non-current assets held for sale amounting to 204 thousand euros (73
thousand euros in gains in 2024) were recognised in 2025 under "Gains (losses) on non-
current assets and disposal groups classified as held for sale not qualifying as discontinued
operations" in the attached income statements.
Each year, the Institute’s management bodies approve the corresponding divestment plan for
these assets.
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:
BUILDINGS FOR RESIDENTIAL USE
Thousands of € previous appraisal
Appraisal Company
Appraisal Method
2,245
EUROVALORACIONES
COMPARISON
63
EUROVALORACIONES
COST
51
EUROVALORACIONES
DYNAMIC RESIDUAL
7
GESVALT
PRESENT VALUE OF RENTS
71
VALTECNIC
COMPARISON
2,437
BUILDINGS FOR TERTIARY USE
Thousands of € previous appraisal
Appraisal Company
Appraisal Method
66
EUROVALORACIONES
COMPARISON
30
EUROVALORACIONES
DYNAMIC RESIDUAL
96
RURAL LAND
Thousands of € previous appraisal
Appraisal Company
Appraisal Method
2
EUROVALORACIONES
PRESENT VALUE OF RENTS
109
EUROVALORACIONES
COMPARISON
5
GLOVAL VALUATION
PRESENT VALUE OF RENTS
4
GRUPO TASVALOR
COMPARISON
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120
URBAN AND DEVELOPABLE LAND
Thousands of € previous appraisal
Appraisal Company
Appraisal Method
3,531
EUROVALORACIONES
DYNAMIC RESIDUAL
44
EUROVALORACIONES
OTHERS
39
GRUPO TASVALOR
DYNAMIC RESIDUAL
3,614
TOTAL
6,267
18. FINANCIAL LIABILITIES AT AMORTISED COST
The items comprising the balances of this section in the attached balance sheets are detailed
below:
Thousands of euros
2025
2024
By type of counterpart
Deposits from Central Banks (Note 18.1)
-
-
Deposits from credit institutions (Note 18.2)
7 269 690
7 285 837
Client deposits (Note 18.3)
877 892
630 150
Debt securities issued (Note 18.4)
26 282 036
21 865 199
Other financial liabilities (Note 18.5)
309 371
298 623
Money market transactions (Note 18.6)
-
-
34 738 989
30 079 809
18.1 Central Bank Deposits
In the 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 as of 31 December 2025 and
2024, based on the nature of the transactions, is as follows:
Thousands of euros
2025
2024
By type:
European Investment Bank loans
2 807 087
3 918 509
Interbank deposits
325 304
181 353
Loans from other financial institutions
3 163 191
2 153 623
Valuation adjustments (accruals and hedges)
974 108
1 032 352
7 269 690
7 285 837
Interbank deposits mature within one year from 31 December 2025 and 2024, respectively.
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European Investment Bank Loans have the following final maturity schedule:
Thousands of euros
2025
2024
Up to 1 year
437 277
825 441
Over 1 year up to 2 years
176 212
467 786
Over 2 years up to 3 years
515 068
139 984
Over 3 years up to 4 years
91 080
608 525
Over 4 years up to 5 years
671 882
42 101
Over 5 years
915 568
1 834 672
2 807 087
3 918 509
The breakdown by maturity of "Loans from other financial institutions" is as follows:
Thousands of euros
2025
2024
Up to 1 year
95 299
78 771
Over 1 year up to 2 years
475 322
30 008
Over 2 years up to 3 years
484 330
503 393
Over 3 years up to 4 years
57 600
500 132
Over 4 years up to 5 years
185 791
-
Over 5 years
1 864 849
1 041 319
3 163 191
2 153 623
18.3 Client deposits
The composition by sector of the balance of this item in the balance sheets as of 31 December
2025 and 2024 is shown below:
Thousands of euros
2025
2024
By type of counterparty
Public Administrations
860 777
613 780
Other resident sectors (1)
8 134
9 228
Other non-resident sectors
-
-
Valuation adjustments - accruals
8 981
7 142
877 892
630 150
(1) As of 31 December 2025 and 2024, 8,134 thousand euros and 9,228 thousand euros are sight accounts, respectively.
On 31 December 2025 and 2024, the detail by nature of the balance recorded under "Public
Administrations" is as follows:
Thousands of euros
2025
2024
Contrato de Ajuste Recíproco de Intereses or C.A.R.I. (Reciprocal Interest
Adjustment Contract)
11 975
15 956
Public Administration Current Accounts and other items
294 963
340 451
State funds received associated with the RRM (note 18.5)
553 839
257 373
860 777
613 780
18.4 Debt securities issued
The breakdown of this heading as of 31 December 2025 and 2024 is as follows:
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Thousands of euros
2025
2024
Bonds and debentures issued
25 572 720
21 849 952
Valuation adjustments (*)
709 316
15 247
26 282 036
21 865 199
(*) Including transaction costs and valuation adjustments for accounting hedges
The movements in bonds and debentures issued during the 2025 and 2024 financial years
are as follows:
Thousands of euros
2025
2024
Balance at beginning of year
21 849 952
16 556 039
Issues
20 365 843
21 980 591
Amortisations
(15 448 064)
(16 723 598)
Exchange rate differences
(1 195 011)
36 920
Year-end balance
25 572 720
21 849 952
Details of outstanding borrowings as of 31 December 2025 and 2024 are shown below,
grouped by currency:
Thousands of euros
Number of
issues
2025
2024
Currency
2025
2024
104
74
US dollar
11 285 740
10 230 239
105
78
Euro
14 030 709
11 366 387
-
-
Swiss Franc
-
-
-
-
Australian Dollar
-
-
1
1
Pound Sterling
56 902
59 563
1
1
Yen
27 161
30 664
2
2
Renminbi Yuan
124 515
134 306
5
3
Turkish Lira
47 693
28 793
25 572 720
21 849 952
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 2025, the total financial cost of borrowings, both in euro and in foreign currency, which is
recorded under "Interest expenses" in the attached income statement, amounted to 1,689,902
thousand euros, representing an average annual interest rate of 6.72% (2.54% with
accounting hedges). In 2024, the financial cost amounted to 1,022,598 thousand euros ,
representing an average annual interest rate of 5.15% (3.56% 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 2025 nor in 2024, included under "Gains and losses on
derecognition of assets and liabilities not measured at fair value through profit or loss" in the
attached income statement (Note 28).
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92
18.5 Other financial liabilities
The breakdown of the balance of this item in the attached balance sheets as of 31 December
2025 and 2024 is as follows:
Thousands of euros
2025
2024
FOMIT - Renove Turismo
1 106
5 091
Renta Universidad Loans
55 346
60 494
Futur E
-
-
RRM Funds
202 303
192 627
Other Funds and other items
50 616
40 411
309 371
298 623
In 2024, ICO begun 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 202,303 thousand euros as of 31
December 2025 (192,627 thousand euros as of 31 December 2024). The funds received and
allocated to RRM operations totalled 553,839 thousand euros as of 31 December 2025
(257,373 thousand euros as of 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, Masters 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 towards 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
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93
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 short-term asset transfers, all of which are government debt securities.
19. PROVISIONS
On 31 December 2025 and 2024, the detail of the balances of this section in the attached
balance sheet is as follows:
Thousands of euros
2025
2024
Pension funds and similar obligations
974
910
Provisions for commitments and guarantees given
76 301
60 204
Other provisions
652 911
801 777
730 186
862 891
The breakdown of the balance of "Other provisions" in the attached balance sheets as of 31
December 2025 and 2024 is as follows:
Thousands of euros
2025
2024
Royal Decree-Law 12/1995 Fund
609 022
759 166
Fund for recovered amounts BBVA
200
106
Prestige Facility Fund
8 364
8 364
EIG equity compensation fund (Note 10.3)
30 875
33 154
Other funds
4 450
987
652 911
801 777
Royal Decree-Law 12/1995 Fund
Royal Decree-Law 12/1995 of 28 December, published in the Official State Gazette (BOE) of
30 December 1995, effective as of 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 150,253 thousand euros, 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 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 income statement.
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.
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94
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 amounted to zero in 2025 (72
thousand euros in 2024), with the returns obtained on the management of the resources
allocated to the Fund itself amounting to 14,229 thousand euros and 43,780 thousand euros
in 2025 and 2024, respectively. From 2023 onwards, this income, due to its nature, is recorded
as finance costs in the net interest income of the income statement.
In accordance with the provisions of Law 12/1996, of 30 December, on the General State
Budget, an initial amount of 150,253 thousand euros was allocated to this Fund in 1997, drawn
from the Ordinary State Loan.
249,500 thousand euros 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 ICO).
The movements in 2025 and 2024 in this fund, which is included under "Other provisions" in
the attached balance sheet as of 31 December 2025 and 2024, are as follows:
Thousands of euros
Balance as of 1 January 2024
1 507 275
Interest income
43 780
State Contributions
-
Application of ICO 2022 profits
-
Loan recoveries (principal and interest)
72
Applications
(34)
Net credits from commissions on COVID facilities (and other State guarantee facilities)
(791 927)
Balance as of 31 December 2024
759 166
Interest income
14 229
State Contributions
-
Application of ICO 2023 profits
-
Loan recoveries (principal and interest)
-
Applications
-
Net credits from commissions on COVID facilities (and other State guarantee facilities)
(164 373)
Balance as of 31 December 2025
609 022
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.
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95
However, the management of the operations affected by the cancellation process has resulted
in ICO continuing to receive collections on these loans, which, in accordance with prudent
man criteria, are not generally recorded as income in the income statement. For those
accounted for as income, there is a provision of 200 thousand euros in 2025 (106 thousand
euros as of 31 December 2024).
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.
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
attached income statement, with a balance of 30,875 thousand euros and 33,154 thousand
euros in 2025 and 2024, respectively (Note 10.3).
The movements in Provisions in 2025 and 2024 are as follows:
Thousands of euros
Provision for
taxes
Pension funds
and similar
obligations
Provisions for
contingent
liabilities and
commitments
Other
provisions
Total
Balances as of 1 January 2024
-
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 as of 31 December 2024
-
910
60 204
801 777
862 891
Allocations
-
64
23 169
3 784
27 017
Recoveries
-
-
(5 314)
-
(5 314)
Use of funds
-
-
-
(34 802)
(34 802)
Transfers and other movements (1)
-
-
-
(117 848)
(117 848)
Exchange rate differences
-
-
(1 758)
-
(1 758)
Balances as of 31 December 2025
-
974
76 301
652 911
730 186
(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 (150,143 thousand euros
as of 31 December 2025 and 748,109 thousand euros as of 31 December 2024) and for the provision to the EIG equity
compensation fund (Notes 10.3 and 23) (32,295 thousand euros as of 31 December 2025 and 19,589 thousand euros as
of 31 December 2024).
20. OWN FUNDS
A reconciliation of the carrying amount at the beginning and at the end of the 2025 and 2024
financial years in the section on "Own Funds" in the balance sheets is presented below:
Thousands of euros
Revaluation
Other
Balance of
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Capital
reserves
reserves
the
year
Total
Balance as of 1 January 2024
4 314 901
17 216
926 083
240 215
5 498 415
Distribution of profits
-
-
240 215
(240 215)
-
Other reserve movements
-
(911)
911
-
-
Balance for the year
-
-
-
239 796
239 796
Other movements
-
-
-
-
-
Balance as of 31 December 2024
4 314 901
16 305
1 167 209
239 796
5 738 211
Distribution of profits
-
-
239 796
(239 796)
-
Other reserve movements
-
(911)
911
-
-
Balance for the year
-
-
-
277 238
277 238
Other movements
683
-
-
-
683
Balance as of 31 December 2025
4 315 584
15 394
1 407 916
277 238
6 016 132
The line "Other movements" mainly records the annual equity contribution, in accordance with
the provisions of Law 24/2001 of 27 December, amounting to 683 thousand euros in 2025 and
zero in 2024. 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. ACCUMULATED OTHER COMPREHENSIVE INCOME (valuation adjustments)
The balance of this heading, broken down by gross amount and net of the tax effect, is as
follows:
Thousands of euros
2025
2024
Gross
Tax Effect (Note
15)
Net
Gross
Tax Effect (Note
15)
Net
Financial assets at fair value,
through other comprehensive
income (Note 9)
603 429
(181 029)
422 400
544 696
(163 409)
381 287
Cash flow hedging of assets and
liabilities
(518 170)
155 451
(362 719)
(1 049 860)
314 958
(734 902)
TOTAL
85 259
(25 578)
59 681
(505 164)
151 549
(353 615)
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 attached 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
2025
2024
Opening balance
(353 615)
190 653
Variation in the fair value of financial assets at fair value, through other
comprehensive income (Note 9)
41 113
14 839
Reclassification of financial assets at fair value, through profit or loss
Cash flow hedges
372 183
(559 107)
Closing balance
59 681
(353 615)
22. FINANCIAL GUARANTEES GIVEN AND CONTINGENT COMMITMENTS
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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).
The breakdown of the balance of this heading as of 31 December 2025 and 2024 is shown
below:
Thousands of euros
2025
2024
Guarantees granted
Financial guarantees
1 113 406
749 994
1 113 406
749 994
Contingent commitments
Available from third parties:
From credit institutions
723 575
1 016 461
From the Public Administration sector
962 403
832 972
From other resident sectors
1 903 420
1 035 127
From non-resident sectors
497 891
275 755
Other contingent commitments
81 590
79 635
Securities subscribed pending disbursement:
1 653 220
1 621 933
5 822 099
4 861 883
6 935 505
5 611 877
Income from guarantee instruments (guarantees and sureties) is recorded under "Fee and
commission income" in the accompanying income statement (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 profit for 2025 and 2024 to the taxable income for
corporate income tax purposes is as follows:
Thousands of euros
2025
2024
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Pre-tax accounting profit
379 154
330 823
Permanent differences
For expenses on foreign taxes paid
834
1 218
For imputed tax losses of investees
(145 604)
(90 469)
234 384
241 572
Temporary differences:
For impairment losses and other non-deductible provisions
68 782
82 280
Reversal of temporary differences arising in other periods
(61 620)
(40 806)
7 162
41 474
Tax base
241 546
283 046
Full quota (30%)
72 464
84 914
Deductions and allowances
(694)
(1 034)
Withholdings and payments on account
(65 452)
(81 633)
Payable / (repayable) quota
6 318
2 247
Income tax expense
69 621
71 438
Adjustments to income tax expense due to allocation to investee bases (Note 19)
32 295
19 589
Income tax expense for the year
101 916
91 027
The year includes the allocation of the tax losses of the EIGs in which ICO holds different
proportions of capital, amounting to 145,604 thousand euros in 2025 (allocation of 90,469
thousand euros in tax losses in 2024). 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 2025.
There are no deductions for tax incentives applied in 2025 and 2024. The deduction for
international double taxation (input tax) amounts to 694 thousand euros and 1,034 thousand
euros, respectively. There are no international double taxation deductions to be offset at the
end of 2025.
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
attached 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. The Entity has not had any impact on current or deferred taxes related
to the application of this new regulation.
In 2025, ICO approved its Tax Strategy, determining the fiscal guidelines and principle that
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are applicable for the entity. The document lays out the corporate culture in tax matters and
established the principles of the fiscal strategy.
24. INTEREST INCOME
The breakdown of interest and similar items for 2025 and 2024 is as follows, according to their
origin:
Thousands of euros
2025
2024
Financial assets at fair value, through other comprehensive income
35 716
35 586
Financial assets at amortised cost
1 192 879
1 275 919
Derivatives, hedge accounting
(2 100)
93
Other assets
229
3 370
Interest income on liabilities
2 632
3 117
1 229 356
1 318 085
25. INTEREST EXPENSES
The breakdown of the balance of this section in the income statement for the years 2025 and
2024 is as follows:
Thousands of euros
2025
2024
Financial liabilities at amortised cost
Derivatives, hedge accounting
Other liabilities
1 970 884
(1 054 440)
14 229
1 327 846
(308 202)
43 780
Interest expense on assets
10
92
930 683
1 063 516
26. DIVIDEND INCOME
All the returns obtained for this concept relate to the equity portfolio, amounting in 2025 and
2024 to 21,096 thousand euros and 20,147 thousand euros, respectively.
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27. FEE AND COMMISSION INCOME AND EXPENSE
The breakdown of the balance of this section in the income statement is as follows:
Thousands of euros
2025
2024
Commission income
For contingent liabilities
11 128
7 369
Availability commissions
8 551
7 828
Management fees for COVID guarantees and other State guarantees
8 205
8 037
Other commissions
21 938
17 027
49 822
40 261
Commission expenses
For signature risk
(2 714)
(3 279)
Other commissions
(6 317)
(4 045)
(9 031)
(7 324)
Net commissions for the year
40 791
32 937
The heading for income from "Other commissions" includes an amount of 8,035 thousand
euros in fees from the Autonomous Community Financing Fund and the Local Authority
Financing Fund for the management of both Funds (8,024 thousand euros as of 31 December
2024) (Note 16).
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 section in the income statement, according to the origin
of the items comprising it, is as follows:
Thousands of euros
2025
2024
Financial assets at fair value, through other comprehensive income (Note 9)
-
-
Financial assets at amortised cost, loans and receivables (Note 10.3)
-
(1,535)
Financial assets at amortised cost, debt securities (Note 10.1)
-
-
Financial liabilities at amortised cost (Note 18.3)
-
-
-
(1 535)
29. GAINS OR LOSSES ON FINANCIAL ASSETS AND LIABILITIES HELD FOR
TRADING, NET
The breakdown of the balance of this section in the income statement, according to the origin
of the items comprising it, is as follows:
Thousands of euros
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2025
2024
Trading derivatives (Note 7)
(1 717)
(818)
(1 717)
(818)
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) amounted to a loss of 1,327 thousand euros as of 31 December 2025 (loss of 1,345
thousand euros as of 31 December 2024).
30. GAINS OR LOSSES FROM ASSETS AND LIABILITIES MANDATORILY MEASURED
AT FAIR VALUE, THROUGH PROFIT OR LOSS, NET
The breakdown of the balance of this section in the income statement is as follows:
Thousands of euros
2025
2024
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 section in the income statement is as follows:
Thousands of euros
2025
2024
Hedging derivatives (Note 11)
35 773
45 580
35 773
45 580
This item includes the results of changes in the fair value of both hedges and hedged items.
32. OTHER OPERATING INCOME AND EXPENSES
The breakdown of the balance of "Other operating income" and "Other operating expenses"
in the income statement is as follows:
Thousands of euros
OTHER OPERATING INCOME
2025
2024
Income from the operation of real estate
512
513
Other concepts
592
534
1 104
1 047
Thousands of euros
OTHER OPERATING EXPENSES
2025
2024
Other concepts
-
-
-
-
33. STAFF COSTS
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The breakdown of the balance of this item in the income statement for 2025 and 2024 is as
follows:
Thousands of euros
2025
2024
Wages and salaries
21 815
20 824
Social security contributions
5 633
5 497
Other expenditure
1 831
1 838
29 279
28 159
The number of employees of the Institute as of 31 December 2025 and 2024, distributed by
occupational category and gender, was as follows:
Distribution of staff
Men
Women
2025
2024
2025
2024
Management
6
8
10
8
Supervisors and technicians
128
124
184
172
Administrative staff
6
5
54
52
140
137
248
232
The average number of employees of the Institute in the financial years 2025 and 2024,
distributed by occupational category and gender, was as follows:
Average distribution of staff
Men
Women
2025
2024
2025
2024
Management
7
8
9
8
Supervisors and technicians
127
131
175
177
Administrative staff
6
5
54
53
140
144
238
238
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 2025 with a disability of more than 33% is 7
persons (5 persons in 2024).
Remuneration and other benefits of the General Council
During the 2025 and 2024 financial years, the Institute recorded in the income statement 132
thousand euros and 101 thousand euros (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
2025 and 2024 financial years is as follows:
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2025 Financial Year:
Salary remuneration
Thousands of euros
Other
No. of persons
Fixed
Variable
Remuneration
Thousands of
euros
Total
Thousands of euros
7 (*)
753
84
14
851
(*) One of the Directors left in January 2025 and was replaced by another person who held the position of General Manager.
The remuneration received by both in the exercise of the position has been recorded.
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
As of 31 December 2025 and 2024 there were no loans granted to the executive members of
the Institute's General Council. As of 31 December 2025, the loans granted under the
Institute's internal staff loan regulations had an outstanding balance of 14,661 thousand euros
and the average interest rate was 2.51% (15,376 thousand euros as of 31 December 2024
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.
34. OTHER ADMINISTRATION COSTS
The breakdown of the balance of this section in the income statement is as follows:
Thousands of euros
2025
2024
Property, plant and equipment
817
867
Computing
6 017
5 915
Communications
2 938
2 605
Advertising and publicity
2 845
2 049
Contributions and taxes
1 880
2 236
Other administrative expenses
9 185
7 274
23 682
20 946
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 Auditores S.L.P firm (which
audited the 2025 and 2024 financial years, by virtue of a contract entered into with the IGAE
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for the provision of a collaboration service in the auditing of annual accounts) for the provision
of audit-related services amounting to 11.3 thousand euros (5.65 thousand euros for the audit
services of the individual annual accounts and 5.65 thousand euros for those of the
consolidated accounts). The amount invoiced for non-audit services during the 2025 financial
year amounted to 139.3 thousand euros, excluding taxes (119.8 thousand euros in the 2024
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 as of 31 December 2025
and 31 December 2024 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 as of 31 December 2025 and 2024 is as follows:
Thousands of euros
Book value
Fair value
ASSETS
2025
2024
2025
2024
Financial assets at amortised cost
35 161 491
30 804 340
35 133 239
31 240 789
LIABILITIES
Financial liabilities at amortised cost
37 738 989
30 079 809
34 633 864
30 217 738
The fair value has been calculated in all cases, both in 2025 and 2024, taking as a reference
the implied curves of the money and government bond markets.
36. TRANSACTIONS WITH SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
The balances held on 31 December 2025 and 2024 by the Institute with Subsidiaries, Joint
Ventures and Associates are as follows:
AXIS
• Customer deposits (financial liabilities at amortised cost): 60,560 thousand euros as of
31 December 2025 (61,321 thousand euros as of 31 December 2024);
• Dividend income of 20,393 thousand euros (19,484 thousand euros in 2024).
CERSA
• Customer deposits (financial liabilities at amortised cost): 175,563 thousand euros as
of 31 December 2025 (193,568 thousand euros as of 31 December 2024).
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COFIDES
• Dividend income of 507 thousand euros (490 thousand euros in 2024).
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INSTITUTO DE CRÉDITO OFICIAL
MANAGEMENT REPORT
Financial Environment and Policy Framework
The general economic and financial situation in which 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 kept growing in 2025 at a strong pace
In 2025, the Spanish economy maintained a strong pace of growth of 2.8%, with the Spanish
GDP continuing to stand out in comparison to the weak growth of the other major European
economies, in a year in which political, economic and commercial uncertainty remained high,
particularly influence by the ongoing wars and conflict and the tariff policies of the US
government.
The growth of the Spanish GDP in 2025 was situated above the path projected by the leading
economic bodies in the first half of the year and not only grew more than the large Eurozone
economies in 2025, as Germany grew by 0.4%, Italy by 0.7% and France by 0.9%, but also
the aggregate GDP of the Eurozone itself, which grew by 1.5% in 2025.
The outlook for 2026 and 2027 is that Spain will continue to outgrow the Eurozone. According
to the IMF's January 2026 updated forecast, the Spanish GDP will grow by 2.3% in 2026 and
1.9% in 2027, higher than the major Eurozone countries and the Eurozone's own aggregate
figure, whose growth forecast is for 1.3% in 2026 and 1.4% in 2027.
The impetus of the Spanish GDP continues to be supported by the creation of jobs, in a context
of strong growth of the foreign population, reflected in dynamic private consumption. Thus,
both consumption and investment, backed by the roll-out of European funds, have continued
to be the main engines of growth and have recorded growth rates above those observed in
2024. In this way, internal demand has contributed to the growth of the Spanish economy in
2025 with 3.6 percentage points. In terms of external activity, despite a scenario of global
uncertainty, which has largely affected the export of goods, it is worth noting the strong
performance of tourism and the export of non-tourism services.
The labour market remains strong
On the labour market, job creation remained solid during 2025, in line with the overall energy
in economic activity. According to data from the Active Population Survey (APS), 605,400
more people were employed in the fourth quarter of 2025 than in the fourth quarter of 2024,
equivalent to a 2.8% increase in employment, above the rate of job creation observed in 2024,
the year in which employment grew by 2.2%, adding 468,200 more workers. With these
favourable developments, the number of employed persons according to the APS reached a
new all-time high in 2025 to stand at 22,463,300 by year's end. At the same time, according
to the APS the unemployment rate continued to fall in 2025, dropping below 10% for the first
time since the first quarter of 2008. Specifically, 9.93% unemployment in the fourth quarter of
2025, as opposed to the 10.61% in the 4th quarter of 2024, with the total number of
unemployed persons falling to 2,477,100, 118,400 fewer than a year before, thus reaching the
minimums last seen in the second quarter of 2008.
In summary, Spain succeeded in keeping up its strong pace of growth in 2025 amidst great
geopolitical and commercial uncertainty, once again leading growth among the major
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European powers. This positive performance rested upon a strong labour market, with major
job creation taking place in high-technology sectors, a major energy boost coming from the
investments deployed by European funding, not to mention the broad financing capacity of the
Spanish economy, reflected largely by the good performance of service exports and lower
public and private indebtedness in relation to the GDP.
Regarding inflation, in the whole of 2025, the average rate of general inflation was 2.7%, one
tenth lower than the 2024 average, thus continuing the gradual moderation of prices seen in
recent years, although such moderation has indeed slowed. Underlying inflation also
decelerated in 2025, from an average of 2.9% in 2024 to 2.3% in 2025, which has offset the
acceleration of inflation seen on more volatile components (unprocessed foodstuffs and
energy products). In the Eurozone as a whole, average inflation in 2025 stood at 2.1%, down
from 2.4% in 2024, thus prolonging the trend towards moderation of previous years and
practically reaching the 2% benchmark set by the European Central Bank (ECB).
The forecasts of the main bodies estimate that prices in Spain will continue decelerating over
2026 and drop to a rate closer to 2% by the end of the year. For the Eurozone, the ECB
forecasts the inflation rate to stabilise around the target of 2%, although such forecasts are
not exempt from risks given current context of elevated geopolitical instability.
The official rates remained stable in the second half of the year
The ECB Governing Council continued in the first half of 2025 with a process of trimming the
interest rate begun in June 2024, making eight consecutive rate cuts from June 2024 to June
2025, all 25 basis points, reaching the applicable interest rate of 2.0% on deposit facilities and
the applicable interest rates of 2.15% and 2.40% on main financing operations and the
marginal lending facilities, respectively. After this cycle of interest rate cuts, starting in July
2025 and until the end of the year, the ECB has kept rates unchanged over four consecutive
meetings. Consequent to these decisions, the interest rate applicable to the deposit facility,
which is the rate that ECB ultimately guides its monetary policy, ended 2025 at 2.0%, as
opposed to 3.0% at the end of 2024, while the interest rates applicable to main financing
operations and the marginal lending facilities stood at 2.15% and 2.40%, respectively (3.15%
and 3.40% at the end of 2024).
The ECB opted to keep interest rates unchanged in its latest meeting, taking into account that
inflation in the Eurozone has been hovering around the 2% target over the course of 2025,
and the forecasts maintained by the Governing Council consider that inflation will stabilise
around the 2% target in the medium term.
In addition, the process of reducing the ECB's balance sheet continued in 2025, which had
begun in 2023, as the ECB stopped reinvesting the principal of maturing securities from its
asset purchase programmes (since the end of 2024, no amount of the Pandemic Emergency
Purchase Programme, or PEPP, has been reinvested, and since July 2023, no reinvestments
have been made from the Asset Purchase Programme or APP). In 2026, the gradual balance
sheet reduction is expected to continue, although it historically remains at a high level.
European funds continue driving the economy
In 2025, the Spanish government continued to manage European funds from the Next
Generation EU (NGEU) instrument through the Recovery, Transformation and Resilience Plan
(RTRP), which includes a wide range of investments and reforms that, in addition to the
quantitative impact of the investments themselves, are estimated to make a structural and
qualitative impact on the structure of the Spanish economy. To be specific, the Ministry of the
Economy estimates that the Recovery Plan will have meant an injection of over 6% into the
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GDP in just five years, with nearly 80 billion euros transferred, fulfilling its two major goals: a
quick recovery after the pandemic and the structural modernisation of the productive fabric.
According to the data published through the Spanish Government’s ELISA data visualisation
tool, as of 30 November 2025 86,696 billion euros had been called, 62,975 billion of which
corresponded to resolved calls, as opposed to the 77,777 billion euros called up to December
2024, 49.97 billion of which were resolved calls up to that date, which demonstrates that the
progress of the plan continued at a good pace during 2025.
At the end of 2025, Spain had received 71.4 billion euros in European disbursements, 55
billion of which corresponded to transfers, making it one of the Member States with the highest
degree of milestone and objective completion. In terms of loans, the Government has adjusted
their use to 22.7 billion euros, in line with the positive performance of the Spanish economy
and the improvement in the Treasury's financing conditions.
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, upholding investments in the green and social areas, promoting housing,
as well as key future areas in the digital transition.
In order to extend the effects of the NextGenerationEU funds beyond August 2026, the
Government has announced the creation of the Fondo España Crece (Spain Grows Fund).
ICO will see heightened capacity as a national promotional bank with the NextGenerationEU
funds with an injection of 10.5 billion euros in equity and 2.8 billion euros in transfers to support
financial instruments. This capacity will pave the way for the mobilisation of 120 billion euros
in public-private partnerships. This vehicle will always co-invest with the private sectors
through loans, guarantees or equity instruments, prioritising key sectors to improve the
productivity of the Spanish economy: housing, energy, digitalisation, Artificial Intelligence,
reindustrialisation, the circular economy, infrastructure, water and sanitation, or security.
All of this will continuing having a positive impact on the Spanish economy through the impetus
from investment and the effects will extend far beyond the lifespan of the programme.
Applied corporate interest rates continue falling
The ECB's monetary policy continues impacting the evolution of the rates applied to new
financing operations, which continued their downward trend until year’s end, the point which
they stabilised. The across-the-board cuts to the rates applied to new operations over the
course of 2025, as compared to 2024, in addition to the evident effect of making financing
more affordable, continued toward the increase in new credit flows. The average interest rate
applied to companies in transactions of less than 1 million euros, which can be taken as an
approximation of the rate applied to SMEs, fell from 4.1% in December 2024 to 3.2% in
December 2025. In any case, there has been a general reduction in the interest rates applied,
irrespective of the size of the transactions and their maturity.
These interest rate changes were reflected in the volume of financial sector activity during
2025, with new business lending operations rising by 9.3% in 2025 compared to 2024. A
certain tapering off could be seen with respect to 2024, when volume rose by 16% over 2023,
which reflects the deceleration seen in 2025 in operations of less than 1 million (from 15.8%
in 2024 to 4.1% in 2025), while operations of over one million continued growing at a high
pace (15.7% in 2025, near the 16% in 2024).
This increase in new operation can also be seen in the total accumulated credit, as the
outstanding balance of financing for productive activities continued to grow during 2025, a
trend that had already begun in 2024.
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Doubtful assets ratios continue to fall
In terms of the bank credit quality, the doubtful assets ratio among Spanish credit institutions
continued on its downward trend over the course of 2025, standing at under 3% for the first
time since late 2008. In November 2025 it stood at 2.78%, down from the 3.32% where it
ended in 2024. This development is explained by the lower 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 3.43% in September 2025 (latest
available data), also down from 3.85% in December 2024.
The demand for credit from companies that banking entities perceive according to the Bank
Lending Survey has continued to rise until late 2025, at which point a certain moderation has
been observed. The growth of demand over 2025 would be explained by the lower interest
rates, although the drop in application in the last quarter would be mainly due to fewer
investments in fixed capital and, to a lesser extent, to the rise in the use of own funds.
Financing and guarantees
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 that, 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 pursue 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 and guarantees 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).
The initiatives carried out by the Institute in 2025 are part of its 2022-2027 Strategy and take
as a reference the EU Financial Framework 2021-2027 and the Recovery, Transformation and
Resilience Plan (RTRP), 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 ICO Group's Strategy 2022-2027, new initiatives and
challenges arose that prompted the definition of an addendum to the Strategy that would set
out 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
ICO Group Strategy, which includes new initiatives derived from the new macroeconomic
environment of growth.
The Addendum to the ICO Group Strategy 2022-27 aims to further some of its initiatives by
incorporating actions that were either already being carried out, such as the channelling and
management of the funds of the Recovery and Resilience Mechanism (RRM), or to increase
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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, which are companies with high growth potential that are subject to financing
restrictions or companies needing to finance intangible assets. In addition, the aim is to
address situations of under-financing for different reasons such as accessibility to the housing
market or the financing of certain investment projects abroad through State Funds.
During 2025, the Institute has continued to deploy the facilities articulated in relation to the
loans of the addendum to the RTRP 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-Social Housing Facility) are aimed at financing investment projects that favour the
two-fold green and digital transition of companies, thereby reinforcing their competitiveness.
The Council of Ministers, at its meeting on 09 December 2025, adopted an Agreement by
which it approved the Addendum for the Simplification of the RTRP, designed as a response
to the Communiqué from the European Commission on 04 June 2025, “Next GenerationEU –
Path to 2026”, which urged Member States to review their plans to streamline procedures and
maximise the use of the funds.
This update reduces the administrative burden, prioritises strategic investments and upholds
the ambition of the investment projects and reforms to modernise the country, and
simultaneously accelerate the reaching of milestones and objectives and reduce the public
debt forecast to 22.8 billion euros in loans, given that the strong pace of the Spanish economy
leads to less reliance on European loans, which offer less of a financial advantage compared
to Public Treasury issues.
On the other hand, it will give continuance to investments beyond 2026, giving shape to a
national financial safety net with a lower administrative burden. Among other factors, a
contribution of 10.5 billion euros to the equity of ICO is envisaged, plus 2.8 billion euros in
funds for allowances. 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 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.
The total volume in approvals in 2025 ICO made in favour of companies rose by over 15% in
comparison to 2024. New concessions in 2025 amount to 9,131,918 thousand euros
compared to 7,930,037 thousand euros accumulated in the 2024 financial year.
The breakdown of activity recorded in the different blocks is in line with the adaptation of ICO’s
activity to market changes, which demand more assumption of risk by institutions such as
ICO.
Thus, ICO’s direct approvals in 2025 rose by 48% over 2024, reaching a volume of 7,131,983
thousand euros by the end of 2025, with growth in all financing products and modes.
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During 2025 ICO has 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.
At the end of 2025, the Institute set into motion the ICO Growth product, forming part of its
portfolio of direct activity products, intended for small and mid-sized companies, and having
an initial endowment of 1,000,000 thousand euros. The financing is applied for via the ICO
online portal, making it ICO’s first 100% digital direct financing tool.
ICO’s direct financing activity has helped give impetus to investment projects and meet the
investment and liquidity needs of companies so they can do their business, and at the same
time it has driven the promotion of large, long-term investment projects, both in Spain and
abroad, complementary to private initiative. The detail of the volumes of direct activity intended
for approved companies is as follows:
• By means of loans and credits amounting to 3,937,903 thousand euros and 859,170
thousand euros issued in guarantees.
• Through complementary direct activity, the acquisition of bonds issued by companies
with medium and long-term maturities amounting to 1,424,500 thousand euros has
been approved. In the short term, promissory notes from issuance programmes
registered in the MARF have been acquired, whose outstanding balance at the end of
2025 amounts to 347,900 thousand euros.
Another of the Institute's main strategic lines of action is carried out through AXIS, the venture
capital subsidiary of ICO Group, which acts in public-private partnership with the venture
capital sector by managing assets over four funds, in which the Institute is the sole participant:
Fond-ICO Global, Fond-ICO Next Tech, Fond-ICO Growth (previously called 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.
FOND-ICO GLOBAL, F.C.R is 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
1.2 billion euros, has since grown to its current size of 4.5 billion euros.
In June 2025 the AXIS Board of Directors approved the resolution for the 17th Call, selecting
12 funds in three categories: incubation and technology transfer, venture capital, and
expansion, which will see an investment of up to 1 billion euros. 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.
Through the 17 calls for proposals completed until 31 December 2025, investments for up to
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5,327 million euros have been approved, with a target investment volume of 14,344 million
euros in Spanish companies.
FOND-ICO CRECIMIENTO F.C.R. [GROWTH] (previously FOND-ICO PYME [SME])
endowed with 250 million euros, whose main objective is the development of innovative and
unique venture capital initiatives as a fund of funds: Sustainability and Social Impact,
Diversified Debt, COVID-19 Entrepreneurial Ecosystem or European Angels Fund in
collaboration with the European Investment Fund (EIF). In addition, this fund aims to support
companies which, having reached a certain degree of maturity, need to finance their
expansion, technological development, growth and/or internationalisation.
In 2025, two investment operation were approved, amounting to 13 million euros.
FOND-ICO SOSTENIBILIDAD E INFRAESTRUCTURAS, F.I.C.C. [SUSTAINABILITY AND
INFRASTRUCTURE] Through this fund, endowed with 400 million euros, the Institute
provides financing to companies through capital investments, subordinated debt and equity
loans. The fund, amounting to between 10 and 40 million euros, takes a minority interest and
does not imply effective control of the company.
Its goal is to invest directly or through other investment funds in sustainable infrastructure
projects in Spain and abroad with Spanish companies.
During 2025, the Axis Board of Directors has approved three operations through this fund for
up to 120 million euros.
FOND-ICO NEXT TECH, F.C.R, is an initiative launched in 2020 in collaboration with the State
Secretariat of Digitalisation and Artificial Intelligence (SEDIA for its Spanish initials), whose
aim is to invest in funds, corporate vehicles and companies that boost the scalability of
Spanish companies in the digitalisation and artificial intelligence sector.
During 2025, work has been done on redefining the strategy of this fund with the Spanish
Society for Technological Transformation (SETT), with the active management of the existing
portfolio. In addition, in 2025 the commitment with ETCI (European Tech Champions Initiative)
was expanded with an additional 300 million euros, reaching a total commitment of 700 million
euros with this pan-European initiative.
In addition, ICO is a participant in four funds managed by firms other than AXIS 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). Within this category, in 2025 Invest EU investment committee
approved guarantees to ICO amounting 143.5 million euros, for an investment commitment
from the Institute of 287 million euros.
Finally, the Institute approved 1,999,936 thousand euros in 2025 through the different ICO
mediation facilities to finance both business activities and investment projects related to
activity in Spain and abroad and the exportation business of Spanish companies. In this last
area, it is worth highlighting the ICO International Channel facility, which reached a volume of
new approvals of 1,201,365 thousand euros, 24% higher than 2024.
ICO as State Financing Agency
As the State Financing Agency, ICO plays two different roles. On one hand, it manages
different official financing instruments and funds devoted to export and development and it
facilitates the sustainability of regional and local governments. On the other, it manages the
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113
various guarantee facilities of the State through an effective public-private partnership model.
In the management of funds and instruments, in 2025 the Institute continued acting on behalf
of the State in three areas of activity: 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 Spanish Sustainable Development Fund (FEDES), which in 2025 replaced FONPRODE
(Fund for the Promotion of Development), and the Water Fund (FCAS), on behalf of the
Spanish Agency for International Development Cooperation (AECID).
At the end of 2025, the balance managed by ICO for these funds amounted to 217.879 billion
euros:
• Fondo de Financiación a Comunidades Autónomas (Autonomous Community
Financing Fund) had an outstanding balance of 205.632 billion euros.
• Fondo de Financiación a Entidades Locales (Local Authority Financing Fund) closed
2024 with a balance of 6.05 billion euros.
• State funds for internationalisation and financial cooperation for development (CARI,
FIEM, FEDES and FCAS) had a combined balance 6.197 billion.
Regarding the management of public guarantee facilities, in 2025 ICO continued the task
entrusted to it by the manager of these on behalf of the various ministerial bodies holding the
guarantee. At the close of 2025, ICO managed seven guarantee facility, some of which have
already completed with schedule concession period, with ICO performing in this case the
management tasks related to applying term extension measures and monitoring defaults and
recoveries:
• Management of guarantee facilities on behalf of the Ministry of Economy, Governance
and Enterprise (MINECO): COVID, Ukraine, DANA and Tariffs.
Management of guarantee facilities on behalf of the Ministry of Housing and the Urban Agenda
(MIVAU): First home mortgage for young people and families with dependent minors, Urban
and rural regeneration programme, and RRM social housing financing guarantee. At the close
of 2025, the Institute managed an outstanding balance of State guarantees of these facilities
for an amount exceeding 20 billion euros.
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 2025, medium- and long-term funds of 8,686 million euros were raised. 1 billion euros of
this amount was through two sustainable bond issues: a green bond issue and a social bond
issue of 500 million euros each.
The resources raised with 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.
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114
ICO consolidates its position as one of the leading European issuers in this sustainable bond
market, with 19 issues (12 social and 7 green) amounting to over 9.5 billion euros.
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 42,602,053 thousand euros at the end of 2025
(37,780,225 thousand euros at the end of 2024), with the heading of financial assets at
amortised cost being the main cause of the annual increase. Specifically, the outstanding
balance of financial assets at amortised cost is 35,161,491 thousand euros (30,804,340
thousand euros as of 31 December 2024), broken down as follows:
• Loans to credit institutions amounted to 12,436,391 thousand euros (10,477,256
thousand euros in 2024). This heading mainly includes the outstanding balances of
transactions from the mediation facilities and deposits loaned on the interbank market.
• Loans to customers closed 2025 with a balance of 12,914,288 thousand euros
compared to 12,897,805 thousand euros the previous year.
• Debt securities amounted to 9,810,812 thousand euros at the close of 2025, as
opposed to 7,429,279 thousand euros in 2024.
In 2025, the outstanding balance of the debt securities portfolio at fair value through other
comprehensive income decreased to 960,165 thousand euros (1,403,450 thousand euros on
31 December 2024 ) and the balance of equity instruments increased to 2,269,627 thousand
euros (1,933,852 thousand euros at year-end 2024). This heading contains the Institute’s
shares in the venture capital funds.
At the close of 2025, the balance of financial liabilities at amortised cost rose to 34,738,989
thousand euros, above the 2024 figure (30,079,809 thousand euros).
The net equity items of ICO increased to 6,016,132 thousand euros at the close of 2025.
Earnings from the 2024 financial year (239,796 thousand euros) were wholly destined to
increasing the Institute’s reserves.
At the close of 2025, ICO’s CET-1 level and total capital was 22.85% individually and 23.01%
at the consolidated level, well above 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 2025 amounts to 298,673 thousand euro
(254,569 thousand euros in 2024).
The gross margin in 2025 is 376,865 thousand euros (358,227 thousand euros in 2024).
Operating expenses (administration and depreciation) amounted to 59,800 thousand euros,
higher than in 2024 (54,141 thousand euros).
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115
The 2025 financial year ended with a reversal of impairment of financial assets at amortised
cost of 83,500 thousand euros and net provisions of 21,703 thousand euros.
As a result, the pre-tax profit is 379,154 thousand euros and the balance for the year is
277,238 thousand euros.
Research and Development Expenditure
There was no research and development activity during the year.
Code of Good Tax Practices
In April 2025, the Institute adhered to the Code of Good Tax Practices in order to apply the
best fiscal practices in its activity. Among the objective assumed by ICO is the implication of
its clients in the compliance of tax liabilities, thus fostering transparency and responsible fiscal
planning.
The commitment of ICO include the collaboration with the Tax Authority and avoid participating
in the financing of excessively complex or opaque corporate structures as well as entities
domiciled or tax resident in non-cooperative jurisdictions.
Although its adherence to the Code took place in 2025, ICO, subject to anti-money laundering
and terrorism financing rules, complies with the law in know-your-customer information,
including the identification of beneficial owners, as well as the analysis of corporate structures
and reporting on the source and use of funds. The application of due diligence measures is
also useful in fiscal matters, although the regulatory basis is different.
Both share a key objective: increase transparency, reduce risks and prevent illicit conduct,
particularly in relating to the concealment of income, opaque structures and tax fraud.
Own shares
Not applicable to the Institute.
Staff
The average number of staff of the Institute in 2025 is 378 employees, compared to 382 in
2024.
Subsequent events
Significant subsequent events are detailed in section 1.8 of these notes to the consolidated
financial statements.
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Annex I: Shareholdings as of 31/12/2025 and 31/12/2024 (direct and indirect)
116
Information relevant to investments in associates and subsidiaries as of 31 December 2025 and 2024 is presented
below:
As of 31 December 2025:
% share
Book value of the shareholding
Entity Data
Management
Activity
Direct
Indirect
Total
Gross
Impairment
Net
Assets
Net Worth
Balance
Associates
CERSA, Compañía Española de
Reafianzamiento, S.A.
Paseo de la Castellana
151 - Madrid
Rebonding of
guarantee operations
granted by MGSs.
24.39%
-
24.39%
49 499
-
49 499
985 115
839 036
-
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
266 840
256 252
20 551
Dependent Entities
57 965
-
57 965
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
61 766
60 602
19 765
59 905
-
59 905
Unaudited financial information as of 31 December 2025
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Annex I: Shareholdings as of 31/12/2025 and 31/12/2024 (direct and indirect)
117
As of 31 December 2024:
% share
Book value of the shareholding
Entity Data
Management
Activity
Direct
Indirect
Total
Gross
Impairment
Net
Assets
Net Worth
Balance
Associates
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
64 435
61 226
25 487
57 466
-
57 466
Unaudited financial information as of 31 December 2024
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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 23rd, 2026 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 2025.

2) Submit the annual accounts and the management report for the 2025
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 23rd, 2026.

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 aA/GABUhV+i3jtc8i1j/sw== Estado Fecha y hora
Firmado Por Manuel Illueca Muñoz - Presidente Firmado 24/04/2026 15:48:32
Paula Novo Cuba - Director Firmado 23/04/2026 19:13:47
Observaciones Página 1/1
Url De Verificación https://verifirma.ico.es/verifirma/code/aA%2FGABUhV%2Bi3jtc8i1j%2Fsw%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
2025, drawn up on March 26, 2026, 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, as of the date of electronic signature




Manuel Illueca Muñoz
Chairman of the Instituto de Crédito Oficial

Código Seguro De Verificación vUnKWB3UvbCZPLMM/TwBgQ== Estado Fecha y hora
Firmado Por Manuel Illueca Muñoz - Presidente Firmado 24/04/2026 15:47:42
Observaciones Página 1/1
Url De Verificación https://verifirma.ico.es/verifirma/code/vUnKWB3UvbCZPLMM%2FTwBgQ%3D%3D
Normativa Este informe tiene carácter de copia electrónica auténtica con validez y eficacia administrativa de ORIGINAL (art. 27 Ley 39/2015).