XML 44 R27.htm IDEA: XBRL DOCUMENT v3.23.1
Provisions
 12 Months Ended
Dec. 31, 2022
Provisions [abstract]  
Disclosure of Provisions
20. Provisions
The Group, as a result of the ordinary course of its business, may be a party to legal lawsuits of a labor, commercial and tax nature. A provision is recognized whenever the loss is classified as probable.
 
  •  
Financial guarantees and loan commitments: reflects the ECL arising from financial guarantees issued, unused balances of checking account overdrafts, credit cards and other loan commitments.
 
  •  
Provisions for reorganization: consistent with the goal of further aligning the organizational structure with the corporate strategy, achieving efficiency gains and streamlining the decision-making process across all work teams.
 
  •  
Other provisions: reflects the estimated amounts to pay class actions, labour, tax and commercial claims as well as other miscellaneous complaints.
 
    
December 31,
2022
     
December 31,
2021
  
Other provisions
      5,975,247        6,654,198  
Provisions commercial claims
      3,496,091        4,735,527  
Provisions labor-related
      614,825        552,679  
Provisions tax claims
      594,810        627,828  
Others
      1,269,521        738,164  
Provisions for reorganization
      —          2,616,915  
Financial guarantees and loan commitments
      2,694,198        1,662,857  
    
 
 
     
 
 
  
TOTAL
   
 
8,669,445
 
   
 
10,933,970
 
    
 
 
     
 
 
  
 
 
Changes in fiscal year 2022 and 2021 are included below:
 
Accounts
   
Balances as of
December 31,
2021
     
Increases
     
Provision
reversals
    
Provisions
used
    
Inflation
adjustment
    
Balances as of
December 31,
2022
  
- Other provisions
      6,654,198        4,112,912        (1,748 )      (848,113 )      (3,942,002 )      5,975,247  
Provisions commercial claims
      4,735,527        1,941,895        —         (408,497 )      (2,772,834 )      3,496,091  
Provisions labor-related
      552,679        666,023        —         (299,248 )      (304,629 )      614,825  
Provisions tax claims
      627,828        409,216        —         (132,108 )      (310,126 )      594,810  
Others
      738,164        1,095,778        (1,748 )      (8,260 )      (554,413 )      1,269,521  
- Provisions for reorganization
      2,616,915        2,373,713        (227,853 )      (3,703,183 )      (1,059,592 )      —    
- Financial guarantees and loan commitments
      1,662,857        2,044,813        —         —         (1,013,472 )      2,694,198  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
TOTAL PROVISIONS
   
 
10,933,970
 
   
 
8,531,438
 
   
 
(229,601
) 
  
 
(4,551,296
) 
  
 
(6,015,066
) 
  
 
8,669,445
 
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
                                                    
 
Accounts
   
Balances as of
December 31,
2020
     
Increases
     
Provision
reversals
    
Provisions
used
    
Inflation
adjustment
    
Balances as of
December 31,
2021
  
- Other provisions
      7,744,134        3,103,206        (4,402 )      (1,217,503 )      (2,971,237 )      6,654,198  
Provisions commercial claims
      5,756,787        1,999,220        —         (898,043 )      (2,122,437 )      4,735,527  
Provisions labor-related
      737,720        356,639        —         (277,874 )      (263,806 )      552,679  
Provisions tax claims
      537,919        354,576        —         (20,091 )      (244,576 )      627,828  
Others
      711,708        392,771        (4,402 )      (21,495 )      (340,418 )      738,164  
- Provisions for reorganization
      5,966,220        4,411,298        (576,486 )      (5,648,848 )      (1,535,269 )      2,616,915  
- Financial guarantees and loan commitments
      4,012,231        1,382,454        (2,344,672 )      —         (1,387,156 )      1,662,857  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
TOTAL PROVISIONS
   
 
17,722,585
 
   
 
8,896,958
 
   
 
(2,925,560
) 
  
 
(6,866,351
) 
  
 
(5,893,662
) 
  
 
10,933,970
 
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
                                                    
The expected terms to settle these obligations are as follows:
 
December 31, 2022
              
Provisions
    Within 12 months      After 12 months  
Other provisions
      1,972,540        4,002,707  
Provisions commercial claims
      814,865        2,681,226  
Provisions labor-related
      116,589        498,236  
Provisions tax claims
      594,810        —    
Others
      446,276        823,245  
Financial guarantees and loan commitments
      2,694,198        —    
 
December 31, 2021
              
Provisions
    Within 12 months      After 12 months  
Other provisions
      4,059,122        2,595,076  
Provisions commercial claims
      2,828,955        1,906,572  
Provisions labor-related
      192,504        360,175  
Provisions tax claims
      627,828        —    
Others
      409,835        328,329  
Provisions for reorganization
      2,616,915        —    
Financial guarantees and loan commitments
      1,662,857        —    
 
 
Possible contingencies
Contingent liabilities have not been recognized in these financial statements and correspond to 163 claims received (in court or administrative proceedings), that have arisen in the Bank’s ordinary course of business. The estimated amount of said claims amounts to 34,801 of which an outflow of funds is estimated for approximately 3,669 in the next 12 months. These claims are primarily related to leasing claims, petitions to secure evidence, and labor claims. The Group’s management and legal advisors consider that the probability of these cases resulting in an outflow of resources is possible, but not probable, and that the potential cash disbursements should not be material.