CONSOLIDATED
Cash Flow Statements
(Notes 1, 2 and 3)
Figures expressed in thousands of pesos
| December 31, | |||||
| Note | 2020 | 2019 | |||
|---|---|---|---|---|---|
| Operating activities | |||||
| Profit before income tax | $ | 371,403 | $ | 16,992,479 | |
| Adjustment from items not implying cash flows: | |||||
| Depreciation and amortization | 5,194,182 | 4,705,436 | |||
| Provision for impairment of the loan portfolio | 8 | 5,182,681 | 3,911,269 | ||
| Lease concessions | 18 | (233,232) | - | ||
| Inventory reserve | 922,727 | 962,962 | |||
| Equity in the results of associates | 11.2 | 523,773 | (684,274) | ||
| Cost on sale of property, furniture and equipment | 708,280 | 615,570 | |||
| Net cost for the period of employee benefits | 17 | 445,754 | 310,296 | ||
| Interest earned | (7,322,875) | (7,771,037) | |||
| Interest expense | 4,210,487 | 3,678,467 | |||
| 9,631,777 | 5,728,689 | ||||
| (Increase) decrease in: | |||||
| Interest earned from customers | 7,211,422 | 7,746,599 | |||
| Short term loan portfolio | 224,196 | (5,863,659) | |||
| Inventory | 942,693 | (3,630,164) | |||
| Value added tax recoverable | (489,483) | (476,436) | |||
| Other accounts receivable | (317,492) | 37,246 | |||
| Prepaid expenses | 330,301 | (260,125) | |||
| Increase (decrease) in: | |||||
| Suppliers | 1,709,550 | (1,024,069) | |||
| Provisions | 704,412 | (132,894) | |||
| Deferred income | (134,066) | 214,686 | |||
| Creditors | (1,010,748) | 70,896 | |||
| Employee benefits paid | (196,036) | (2,342) | |||
| Taxes paid | (3,955,677) | (4,199,888) | |||
| Net cash flows from operating activities | 15,022,252 | 15,201,018 | |||
| Investment activities | |||||
| Capital increase in associates | (129,672) | (319,547) | |||
| Dividends received from associates | - | 213,147 | |||
| Acquisition of property, furniture and equipment | 13 | (3,697,145) | (5,871,512) | ||
| Acquisition of investment property | 12 | (148,515) | (2,169,490) | ||
| Sale of property, furniture and equipment | 52,296 | 98,025 | |||
| Investment in new information technology developments | 14 | (668,503) | (689,470) | ||
| Net cash flows from investing activities | (4,591,539) | (8,738,847) | |||
| Cash to be applied in financing activities | 10,430,713 | 6,462,171 | |||
| Financing activities | |||||
| Dividends paid | 20.1 | (8) | (1,474,397) | ||
| Interest paid | 16 | (2,961,220) | (2,549,259) | ||
| Contracted debt | 8,500,000 | 5,000,000 | |||
| Debt paid | (6,500,000) | - | |||
| Principal of lease payments | (776,716) | (816,554) | |||
| Interest of lease payments | (1,111,336) | (1,071,554) | |||
| Sale of shares | 20 | 546,493 | 66,025 | ||
| Repurchase of shares | 20 | (566,788) | (517,133) | ||
| Net cash flows from financing activities | (2,869,575) | (1,362,872) | |||
| Increase (decrease) of cash and temporary investments | 7,561,138 | 5,099,299 | |||
| Cash and cash equivalents at the beginning of the year | 18,959,340 | 13,785,519 | |||
| Effects of exchange rate changes on cash and cash equivalents | (324,542) | (250,020) | |||
| Cash and cash equivalents at end of year | $ | 26,195,936 | $ | 18,634,798 | |
The 
accompanying notes are an integral part of these consolidated financial statements.