Sareb books accumulated net losses of €750 million since its creation

In view of the information published regarding Sareb’s financial situation, the company wishes to clarify that, in line with the current accounting regulation, the net accumulated losses since it was founded in 2012 amount to €750 million. 

Thus, said figures fully reflect the equity used by the company during this period. Sareb currently holds €4,049 million in capital and subordinated debt, compared to the €4,800 million, which it held when it was founded.

The following table details the results posted by the institution for the years since its creation, based on the criteria established in Royal Decree 4, dated 2 December 2016. The 2012 financial year is also included, despite the fact that the company was founded on 28 November 2012.

(In EUR millions)

*amounts resulting from the restatement of the financial accounts

By applying the aforementioned Royal Decree, Sareb was able to reverse the writedowns applied in previous financial years and attribute them instead to shareholder equity.

According to this regulation, the unrealised capital losses of Sareb’s portfolio are booked to a value adjustment account, which is entered into the company’s balance sheet and forms part of its net worth. At year-end 2016, as per the announcement made on 30 March, this account registered a balance of €3,389 million (€3,289 million net of tax effect).

Sareb would like to reiterate that every year it has meticulously applied the required accounting criteria when preparing its financial accounts. In its early years, and in the absence of a specific accounting framework for the valuation of its portfolio, it acted as per the guidance provided by the overseer. The company subsequently followed the indications set out in Circular 5 issued by the Bank of Spain on 30 September 2015, and Royal Decree 4 dated 2 December 2016, both of which were retroactively applicable.