December 31, 2012 and 2011 (Thousands of pesos)
| December 31, |
|||||
| 2012 | 2011 | ||||
| Operations | |||||
| Pre–tax income | $ | 9,949,324 | $ | 8,904,892 | |
| Adjustments from items not implying cash flows: | |||||
| Depreciation and amortization included in costs and expenses | 1,462,907 | 1,282,746 | |||
| Provision for impairment of loan portfolio | 1,076,930 | 953,242 | |||
| Equity in income of associates | (414,941) | (304,727) | |||
| Profit on sale of investment properties | (3,592) | (1,302) | |||
| Profit on sale of property, furniture and equipment | (78,427) | (17,246) | |||
| Net cost for the period of labor obligations | 90,411 | 70,416 | |||
| Interest earned | (3,334,932) | (3,025,211) | |||
| Accrued interest expense | 985,129 | 847,293 | |||
| (216,515) | (194,789) | ||||
| (Increase) decrease in: |
|||||
| Interest earned from customers | 3,149,057 | 2,790,641 | |||
| Short – term loan portfolio | (2,663,209) | (2,288,668) | |||
| Inventory | (449,224) | (2,028,123) | |||
| Value added tax recoverable | (75,309) | (136,242) | |||
| Other accounts receivable | (75,158) | (222,722) | |||
| Income tax recoverable | (402,997) | - | |||
| Prepaid expenses | (17,561) | (136,563) | |||
| Long – term loan portfolio | (1,621,104) | (780,616) | |||
| Other long–term accounts receivable | (13,471) | (29,751) | |||
| Deferred income | 141,770 | 101,380 | |||
| Suppliers | 704,310 | 1,140,759 | |||
| Creditors | 187,857 | 312,708 | |||
| Taxes paid | (2,302,170) | (2,613,576) | |||
| Provisions | 109,111 | 72,894 | |||
| Employee benefits paid | 9,683 | (58,403) | |||
| Net cash flows provided by operating activities | 6,414,394 | 4,833,821 | |||
| Investment activities |
|||||
| Return on investments | 200,660 | 227,312 | |||
| Acquisition of property, furniture and equipment | (5,284,038) | (3,752,208) | |||
| Sale of property, furniture and equipment | 116,633 | 13,545 | |||
| Sale of investment properties | 59,555 | 21,284 | |||
| Acquisition of investment property | (2,447,588) | (1,381,734) | |||
| Investment in new IT developments | (830,607) | (400,054) | |||
| Net cash flows provided by investment activities | (8,185,385) | (5,271,855) | |||
| Cash (insufficiency) to be used in financing activities | (1,770,991) | (438,034) | |||
| Financing activities |
|||||
| Issuance of unsecured notes | 4,000,000 | - | |||
| Dividends paid | (899,271) | (724,786) | |||
| Loans repaid | - | (2,250,000) | |||
| Interest paid | (985,129) | (847,293) | |||
| Net cash flows provided by financing activities | 2,115,600 | (3,822,079) | |||
| Increase (decrease) in cash and cash equivalents | 344,609 | (4,260,113) | |||
| Cash and cash equivalents at beginning of year | 2,681,547 | 6,929,737 | |||
| Exchange fluctuations of cash | (116,032) | (104,109) | |||
| Cash and cash equivalents at end of year | $ | 2,910,124 | $ | 2,565,515 | |
The accompanying notes are an integral part of these consolidated financial statements.
