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Hedge accounting | 12 Months Ended
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Dec. 31, 2018
Text block1 [abstract] |
Hedge accounting | Note 7 – Hedge accounting There are three types of hedge relations: Fair value hedge, Cash flow hedge, and Hedge of net investment in foreign operations. In hedge accounting, the groups of risk factors measured by ITAÚ UNIBANCO HOLDING are:
| • |  | Interest Rate: Risk of loss in transactions subject to interest rate variations;
| • |  | Currency: Risk of loss in transactions subject to exchange variation.
The structure of risk limits is extended to the risk factor level, with specific limits that aim at improving the monitoring and understanding process, as well as avoiding concentration of these risks. The structures designed for categories of interest rate and exchange rate are realized considering aggregate risks when there are compatible hedge instruments. Due to a management’s decision, in certain cases risks are hedged for the term and limit of the hedge instrument risk factor. The other risk factors hedged by the institution are presented in Note 32. To protect cash flows and fair value of instruments designated as hedged items, ITAÚ UNIBANCO HOLDING uses derivative financial instruments and financial assets. Currently, Futures Contracts, Options, NDF (non-deliverable forward), Forward, Swap and Financial Assets are used. ITAÚ UNIBANCO HOLDING manages risks through the economic relationship between hedge instruments and hedged items, where the expectation is that these instruments move in opposite directions and in the same proportion, with the purpose of neutralizing risk factors. The designated coverage ratio is always 100% of the risk factor eligible for coverage. The sources of ineffectiveness are in general related to the counterparty’s credit risk and possible mismatches of terms between the hedge instrument and the hedged item.
a) | Cash flow hedge
The cash flow hedge strategies of ITAÚ UNIBANCO HOLDING consist of a hedge of exposure to variations in cash flows, payment of interest and exposure to interest rate, which are attributable to changes in interest rates related to assets and liabilities recognized and changes in interest rates of unrecognized assets and liabilities. ITAÚ UNIBANCO HOLDING has applied cash flow hedge strategies as follows: Interest rate risks
| • |  | Hedge of time deposits and repurchase agreements: to hedge of the variability in cash flows of interest payments resulting from changes in the DI interest rate, through futures contracts;
| • |  | Hedge of Syndicated Loan: to hedge the variability in cash flow of interest payments resulting from changes in the LIBOR interest rate, through futures contracts;
| • |  | Hedge of asset transactions: to hedge the variations in cash flows of interest receipts resulting from changes in the DI rate, through futures contracts;
| • |  | Hedge of assets denominated in UF*: to hedge the variations in cash flows of interest receipts resulting from changes in the UF*, through swap contracts;
| • |  | Hedge of Funding: to hedge the variations in cash flows of interest payments resulting from changes in the TPM* rate and foreign exchange, through swap contracts;
| • |  | Hedge of loan operations: to hedge the variations in cash flows of interest receipts resulting from changes in the TPM* rate, through swap contracts;
| • |  | Hedge of asset-backed securities under repurchase agreements: to hedge changes in cash flows from interest received on changes in Selic (benchmark interest rate), through futures contracts.
* | UF – Chilean unit of account / TPM – Monetary policy rate
ITAÚ UNIBANCO HOLDING does not use the qualitative method to evaluate the effectiveness and to measure the ineffectiveness of such strategies. In such strategies of cash flow hedge, ITAÚ UNIBANCO HOLDING uses the hypothetical derivative method. The hypothetical derivative method is based on a comparison of the change in the fair value of a hypothetical derivative with terms identical to the critical terms of the variable-rate liability, and this change in the fair value of a hypothetical derivative is considered a proxy of the present value of the cumulative change in the future cash flow expected for the hedged liability.
a) | Hedge Cash flow
Strategies |  | Heading |  | 12/31/2018 |
| Hedged item |  |  | Hedge instrument |
| Book Value |  |  | Variation in value recognized in Other comprehensive income |  |  | Cash flow hedge reserve |  |  | Nominal Value |  |  | Variation in the amounts used to calculate hedge ineffectiveness |
| Assets |  |  | Liabilities |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge of deposits and repurchase agreements |  | Securities purchased under agreements to resell |  |  | 0 |  |  |  | 29,727 |  |  |  | (1,682 | ) |  |  | (2,946 | ) |  |  | 29,727 |  |  |  | (1,800 | )
Hedge of assets transactions |  | Loan operations and lease operations and Securities |  |  | 7,866 |  |  |  | 0 |  |  |  | 136 |  |  |  | 136 |  |  |  | 8,003 |  |  |  | 136 |
Hedge of Asset-backed securities under repurchase agreements |  | Securities purchased under agreements to resell |  |  | 36,668 |  |  |  | 0 |  |  |  | 353 |  |  |  | 353 |  |  |  | 38,013 |  |  |  | 359 |
Hedge of loan operations |  | Loan operations and lease operations |  |  | 274 |  |  |  | 0 |  |  |  | 6 |  |  |  | 6 |  |  |  | 268 |  |  |  | 7 |
Hedge of funding |  | Deposits |  |  | 0 |  |  |  | 3,200 |  |  |  | 78 |  |  |  | 86 |  |  |  | 3,105 |  |  |  | 82 |
Hedge of assets denominated in UF |  | Securities |  |  | 13,247 |  |  |  | 0 |  |  |  | 26 |  |  |  | 26 |  |  |  | 13,221 |  |  |  | 23 |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge of highly probable forecast transactions |  |  |  |  | 71 |  |  |  | 0 |  |  |  | 6 |  |  |  | 6 |  |  |  | 71 |  |  |  | 6 |
Total |  |  |  |  | 58,126 |  |  |  | 32,927 |  |  |  | (1,077 | ) |  |  | (2,333 | ) |  |  | 92,408 |  |  |  | (1,187 | )
Strategies |  | Heading |  | 12/31/2017 |
| Hedged item |  |  | Hedge instrument |
| Book Value |  |  | Variation in value recognized in Other comprehensive income |  |  | Cash flow hedge reserve |  |  | Nominal Value |  |  | Variation in the amounts used to calculate hedge ineffectiveness |
| Assets |  |  | Liabilities |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge of deposits and repurchase agreements |  | Securities purchased under agreements to resell |  |  | — |  |  |  | 62,667 |  |  |  | (3,227 | ) |  |  | (3,227 | ) |  |  | 62,667 |  |  |  | (3,377 | )
Hedge of assets transactions |  | Loan operations and lease operations and Securities |  |  | 23,490 |  |  |  | — |  |  |  | 429 |  |  |  | 429 |  |  |  | 23,919 |  |  |  | 429 |
Hedge of Asset-backed securities under repurchase agreements |  | Securities purchased under agreements to resell |  |  | 31,099 |  |  |  | — |  |  |  | 672 |  |  |  | 672 |  |  |  | 31,855 |  |  |  | 670 |
Hedge of loan operations |  | Loan operations and lease operations |  |  | 1,124 |  |  |  | — |  |  |  | 14 |  |  |  | 14 |  |  |  | 1,124 |  |  |  | 13 |
Hedge of funding |  | Deposits |  |  | — |  |  |  | 6,444 |  |  |  | (16 | ) |  |  | (16 | ) |  |  | 6,444 |  |  |  | (17 | )
Hedge of assets denominated in UF |  | Securities |  |  | 15,227 |  |  |  | — |  |  |  | (29 | ) |  |  | (29 | ) |  |  | 15,227 |  |  |  | (34 | )
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge of highly probable forecast transactions |  |  |  |  | 219 |  |  |  | — |  |  |  | (5 | ) |  |  | (5 | ) |  |  | 232 |  |  |  | (5 | )
Total |  |  |  |  | 71,159 |  |  |  | 69,111 |  |  |  | (2,162 | ) |  |  | (2,162 | ) |  |  | 141,468 |  |  |  | (2,321 | )
For strategies of deposits and repurchase agreements to resell, asset transactions and asset-backed securities under repurchase agreements, the entity frequently reestablishes the coverage relationship, since both the hedged item and instruments change over time. This is so because they are portfolio strategies, reflecting guidelines for risk management strategy approved in the proper approval level. The amount of R$ (1,615) in Reserve of Cash Flow Hedge will be recognized in result for the maturity term of the hedged item. In the period ended December 31, 2018, the amount of R$ (499) was recognized in Result related to this deferral.
Hedge Instruments |  | 12/31/2018 |
| Nominal Value |  |  | Book Value (*) |  |  | Variations in fair value used to calculate hedge ineffectiveness |  |  | Variation in value recognized in Other comprehensive income |  |  | Hedge ineffectiveness recognized in income |  |  | Amount reclassified from Cash flow hedge reserve to income |
| Assets |  |  | Liabilities |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate futures |  |  | 75,743 |  |  |  | 256 |  |  |  | 21 |  |  |  | (1,305 | ) |  |  | (1,193 | ) |  |  | (112 | ) |  |  | 0 |
Interest rate Swap |  |  | 16,594 |  |  |  | 3,023 |  |  |  | 13,519 |  |  |  | 112 |  |  |  | 110 |  |  |  | 2 |  |  |  | 0 |
Foreign currency risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
DDI futures |  |  | 6 |  |  |  | 5 |  |  |  | 0 |  |  |  | 1 |  |  |  | 1 |  |  |  | 0 |  |  |  |  |
Option |  |  | 65 |  |  |  | 9 |  |  |  | 0 |  |  |  | 5 |  |  |  | 5 |  |  |  | 0 |  |  |  | 0 |
Total |  |  | 92,408 |  |  |  | 3,293 |  |  |  | 13,540 |  |  |  | (1,187 | ) |  |  | (1,077 | ) |  |  | (110 | ) |  |  | 0 |
Hedge Instruments |  | 12/31/2017 |
| Nominal Value |  |  | Book Value (*) |  |  | Variations in fair value used to calculate hedge ineffectiveness |  |  | Variation in value recognized in Other comprehensive income |  |  | Hedge ineffectiveness recognized in income |  |  | Amount reclassified from Cash flow hedge reserve to income |
| Assets |  |  | Liabilities |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate futures |  |  | 118,441 |  |  |  | 13 |  |  |  | (32 | ) |  |  | (2,278 | ) |  |  | (2,126 | ) |  |  | (152 | ) |  |  | — |
Interest rate Swap |  |  | 22,795 |  |  |  | 14 |  |  |  | (44 | ) |  |  | (38 | ) |  |  | (31 | ) |  |  | (7 | ) |  |  | — |
Foreign currency risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
DDI futures |  |  | 78 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 1 |  |  |  | — |  |  |  | — |
Option |  |  | 154 |  |  |  | 9 |  |  |  | — |  |  |  | (6 | ) |  |  | (6 | ) |  |  | — |  |  |  | — |
Total |  |  | 141,468 |  |  |  | 36 |  |  |  | (76 | ) |  |  | (2,321 | ) |  |  | (2,162 | ) |  |  | (159 | ) |  |  | — |
(*) | Amounts recorded in the Derivatives.
For strategies of deposits and repurchase agreements to resell, asset transactions and asset-backed securities under repurchase agreements, the entity frequently reestablishes the coverage relationship, since both the hedged item and instruments change over time. This is so because they are portfolio strategies, reflecting guidelines for risk management strategy approved in the proper approval level.
b) | Hedge of net investment in foreign operations
ITAÚ UNIBANCO HOLDING strategies of net investments in foreign operations consist of a hedge of the exposure in foreign currency arising from the functional currency of the foreign operation, with respect to the functional currency of the head office, by contracting futures, DDI, NDF and financial assets. The risk hedged in this type of strategy is the foreign exchange risk. ITAÚ UNIBANCO HOLDING does not use the qualitative method to assess the effectiveness and measure the ineffectiveness of these strategies. To evaluate the effectiveness and to measure the ineffectiveness of such strategies, ITAÚ UNIBANCO HOLDING uses the Dollar Offset Method. The Dollar Offset Method is based on a comparison of the change in fair value (cash flow) of the hedge instrument, attributable to changes in exchange rate and gain (loss) arising from the variation in exchange rates, on the amount of investment abroad designated as a hedged item.
Strategies |  | 12/31/2018 |
| Hedged item |  |  | Hedge instrument |
| Book Value (2) |  |  | Variation in value recognized in Other comprehensive income |  |  | Foreign currency convertion |  |  | Nominal Value |  |  | Variation in the amounts used to calculate hedge ineffectiveness |
| Assets |  |  | Liabilities |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge of net investment in foreign operations (1) |  |  | 0 |  |  |  | 14,820 |  |  |  | (7,300 | ) |  |  | (7,300 | ) |  |  | 12,550 |  |  |  | (7,296 | )
Total |  |  | 0 |  |  |  | 14,820 |  |  |  | (7,300 | ) |  |  | (7,300 | ) |  |  | 12,550 |  |  |  | (7,296 | )
Strategies |  | 12/31/2017 |
| Hedged item |  |  | Hedge instrument |
| Book Value (2) |  |  | Variation in value recognized in Other comprehensive income |  |  | Foreign currency convertion |  |  | Nominal Value |  |  | Variation in the amounts used to calculate hedge ineffectiveness |
| Assets |  |  | Liabilities |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge of net investment in foreign operations (1) |  |  | — |  |  |  | 13,074 |  |  |  | (5,507 | ) |  |  | (5,507 | ) |  |  | 10,561 |  |  |  | (5,503 | )
Total |  |  | — |  |  |  | 13,074 |  |  |  | (5,507 | ) |  |  | (5,507 | ) |  |  | 10,561 |  |  |  | (5,503 | )
(1) | Hedge instruments include the overhedge rate of 44.65% regarding taxes.
(2) | Amounts recorded in the Hedge of net investment in foreign operation.
Hedge instruments |  | 12/31/2018 |
| Nominal Value |  |  | Book Value (*) |  |  | Variations in fair value used to calculate hedge ineffectiveness |  |  | Variation in value recognized in Other comprehensive income |  |  | Hedge ineffectiveness recognized in income |  |  | Amount reclassified from foreign currency convertion into income |
| Assets |  |  | Liabilities |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
DDI futures |  |  | 27,990 |  |  |  | 0 |  |  |  | 113 |  |  |  | (11,394 | ) |  |  | (11,353 | ) |  |  | (41 | ) |  |  | 0 |
Forward |  |  | (1,470 | ) |  |  | 1,059 |  |  |  | 0 |  |  |  | 764 |  |  |  | 726 |  |  |  | 38 |  |  |  | 0 |
NDF |  |  | (13,167 | ) |  |  | 255 |  |  |  | 0 |  |  |  | 3,198 |  |  |  | 3,189 |  |  |  | 9 |  |  |  | 0 |
Financial Assets |  |  | (803 | ) |  |  | 803 |  |  |  | 0 |  |  |  | 136 |  |  |  | 138 |  |  |  | (2 | ) |  |  | 0 |
Total |  |  | 12,550 |  |  |  | 2,117 |  |  |  | 113 |  |  |  | (7,296 | ) |  |  | (7,300 | ) |  |  | 4 |  |  |  | 0 |
Hedge instruments |  | 12/31/2017 |
| Nominal Value |  |  | Book Value (*) |  |  | Variations in fair value used to calculate hedge ineffectiveness |  |  | Variation in value recognized in Other comprehensive income |  |  | Hedge ineffectiveness recognized in income |  |  | Amount reclassified from foreign currency convertion into income |
| Assets |  |  | Liabilities |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
DDI futures |  |  | 23,641 |  |  |  | 49 |  |  |  | — |  |  |  | (7,646 | ) |  |  | (7,605 | ) |  |  | (41 | ) |  |  | — |
Forward |  |  | (1,065 | ) |  |  | 1,050 |  |  |  | — |  |  |  | 661 |  |  |  | 623 |  |  |  | 38 |  |  |  | — |
NDF |  |  | (11,474 | ) |  |  | — |  |  |  | 357 |  |  |  | 1,525 |  |  |  | 1,516 |  |  |  | 9 |  |  |  | — |
Financial Assets |  |  | (541 | ) |  |  | 541 |  |  |  | — |  |  |  | (43 | ) |  |  | (41 | ) |  |  | (2 | ) |  |  | — |
Total |  |  | 10,561 |  |  |  | 1,640 |  |  |  | 357 |  |  |  | (5,503 | ) |  |  | (5,507 | ) |  |  | 4 |  |  |  | — |
(*) | Amounts recorded in the Derivatives.
c) | Fair value hedge
The fair value hedge strategy of ITAÚ UNIBANCO HOLDING consists in hedging the exposure to variation in fair value, in the receipt and payment of interest related to recognized assets and liabilities. ITAÚ UNIBANCO HOLDING has applied fair value hedge as follows: Interest rate risk:
| • |  | To protect the risk of variation in the fair value of receipt and payment of interest resulting from variations in the fair value of variable rates involved, by contracting swaps and futures.
ITAÚ UNIBANCO HOLDING does not use the qualitative method to assess effectiveness and to measure ineffectiveness of these strategies. To evaluate the effectiveness and to measure the ineffectiveness of such strategy, ITAÚ UNIBANCO HOLDING uses the percentage approach and dollar offset method:
| • |  | The percentage approach is based on the calculation of change in the fair value of the reviewed estimate for the hedged position (hedge item) attributable to the protected risk versus the change in the fair value of the hedged derivative instrument.
| • |  | The dollar offset method is calculated based on the difference between the variation of the fair value of the hedging instrument and the variation in the fair value of the hedged item attributed to changes in the interest rate.
The effects of hedge accounting on the financial position and performance of ITAÚ UNIBANCO HOLDING are presented below:
Strategies |  | 12/31/2018 |
| Hedged Item |  |  | Hedge Instruments |
| Book Value (*) |  |  | Fair value |  |  | Variation in the amounts used to calculate hedge ineffectiveness |  |  | Nominal Value |  |  | Variation in value recognized in income |
| Assets |  |  | Liabilities |  |  | Assets |  |  | Liabilities |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge of loan operations |  |  | 7,066 |  |  |  | 0 |  |  |  | 7,119 |  |  |  | 0 |  |  |  | 53 |  |  |  | 7,066 |  |  |  | (54 | )
Hedge of funding |  |  | 0 |  |  |  | 9,124 |  |  |  | 0 |  |  |  | 9,081 |  |  |  | (43 | ) |  |  | 9,124 |  |  |  | 43 |
Hedge of fair value through other comprehensive income |  |  | 5,391 |  |  |  | 0 |  |  |  | 5,483 |  |  |  | 0 |  |  |  | 93 |  |  |  | 5,401 |  |  |  | (82 | )
Total |  |  | 12,457 |  |  |  | 9,124 |  |  |  | 12,602 |  |  |  | 9,081 |  |  |  | 103 |  |  |  | 21,591 |  |  |  | (93 | )
Strategies |  | 12/31/2017 |
| Hedged Item |  |  | Hedge Instruments |
| Book Value (*) |  |  | Fair value |  |  | Variation in the amounts used to calculate hedge ineffectiveness |  |  | Nominal Value |  |  | Variation in value recognized in income |
| Assets |  |  | Liabilities |  |  | Assets |  |  | Liabilities |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge of loan operations |  |  | 5,977 |  |  |  | — |  |  |  | 5,978 |  |  |  | — |  |  |  | (50 | ) |  |  | 5,977 |  |  |  | 52 |
Hedge of funding |  |  | — |  |  |  | 12,157 |  |  |  | — |  |  |  | 9,562 |  |  |  | 108 |  |  |  | 12,157 |  |  |  | (113 | )
Hedge of syndicated loan |  |  | — |  |  |  | 794 |  |  |  | — |  |  |  | 779 |  |  |  | — |  |  |  | 794 |  |  |  | — |
Hedge of fair value through other comprehensive income |  |  | 482 |  |  |  | — |  |  |  | 450 |  |  |  | — |  |  |  | (33 | ) |  |  | 482 |  |  |  | 34 |
Total |  |  | 6,459 |  |  |  | 12,951 |  |  |  | 6,428 |  |  |  | 10,341 |  |  |  | 25 |  |  |  | 19,410 |  |  |  | (27 | )
(*) | Amounts recorded in the heading Deposits, Securities, Funds from Interbank Markets and Loan and Lease Operation.
For loan operations strategies, the entity reestablishes the coverage ratio, since both the hedged item and the instruments change over time. This occurs because they are portfolio strategies that reflect the risk management strategy guidelines approved in the proper authority level.
Hedge Instruments |  | 12/31/2018 |
| Nominal Value |  |  | Book value (*) |  |  | Variation in the amount used to calculate hedge ineffectiveness |  |  | Hedge ineffectiveness recognized in income |
| Assets |  |  | Liabilities |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate Swap |  |  | 21,591 |  |  |  | 86 |  |  |  | 1,078 |  |  |  | (93 | ) |  |  | 10 |
Total |  |  | 21,591 |  |  |  | 86 |  |  |  | 1,078 |  |  |  | (93 | ) |  |  | 10 |
Hedge Instruments |  | 12/31/2017 |
| Nominal Value |  |  | Book value (*) |  |  | Variation in the amount used to calculate hedge ineffectiveness |  |  | Hedge ineffectiveness recognized in income |
| Assets |  |  | Liabilities |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate Swap |  |  | 19,410 |  |  |  | 86 |  |  |  | 114 |  |  |  | (27 | ) |  |  | (2 | )
Total |  |  | 19,410 |  |  |  | 86 |  |  |  | 114 |  |  |  | (27 | ) |  |  | (2 | )
(*) | Amounts recorded in the Derivatives.
The tables below present, for each strategy, the nominal value and the fair value adjustments of hedge instruments and the book value of the hedged item:
Strategies |  | 12/31/2018 |  |  | 12/31/2017 |
| Hedge instruments |  |  | Hedged item |  |  | Hedge instruments |  |  | Hedged item |
| Nominal Value |  |  | Fair value adjustments |  |  | Book Value |  |  | Nominal Value |  |  | Fair value adjustments |  |  | Book Value |
Hedge of deposits and repurchase agreements |  |  | 29,727 |  |  |  | (21 | ) |  |  | 29,727 |  |  |  | 62,667 |  |  |  | (32 | ) |  |  | 62,667 |
Hedge of highly probable forecast transactions |  |  | 71 |  |  |  | 6 |  |  |  | 71 |  |  |  | 232 |  |  |  | 9 |  |  |  | 219 |
Hedge of net investment in foreign operations (*) |  |  | 12,550 |  |  |  | 2,230 |  |  |  | 14,820 |  |  |  | 10,561 |  |  |  | 1,283 |  |  |  | 13,074 |
Hedge of loan operations (Fair value) |  |  | 7,066 |  |  |  | (54 | ) |  |  | 7,066 |  |  |  | 5,977 |  |  |  | 52 |  |  |  | 5,977 |
Hedge of loan operations (Cash flow) |  |  | 268 |  |  |  | 7 |  |  |  | 274 |  |  |  | 1,124 |  |  |  | 14 |  |  |  | 1,124 |
Hedge of funding (Fair value) |  |  | 9,124 |  |  |  | 43 |  |  |  | 9,124 |  |  |  | 12,157 |  |  |  | (114 | ) |  |  | 12,157 |
Hedge of funding (Cash flow) |  |  | 3,105 |  |  |  | 82 |  |  |  | 3,200 |  |  |  | 6,444 |  |  |  | (16 | ) |  |  | 6,444 |
Hedge of syndicated loan (Fair value) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 794 |  |  |  |  |  |  |  | 794 |
Hedge of assets transactions |  |  | 8,003 |  |  |  | 136 |  |  |  | 7,866 |  |  |  | 23,919 |  |  |  | 2 |  |  |  | 23,490 |
Hedge of Asset-backed securities under repurchase agreements |  |  | 38,013 |  |  |  | 8 |  |  |  | 36,668 |  |  |  | 31,855 |  |  |  | 11 |  |  |  | 31,099 |
Hedge of assets denominated in UF |  |  | 13,221 |  |  |  | 23 |  |  |  | 13,247 |  |  |  | 15,227 |  |  |  | (28 | ) |  |  | 15,227 |
Hedge of fair value through other comprehensive income |  |  | 5,401 |  |  |  | (82 | ) |  |  | 5,391 |  |  |  | 482 |  |  |  | 34 |  |  |  | 482 |
Total |  |  | 0 |  |  |  | 2,378 |  |  |  | 0 |  |  |  |  |  |  |  | 1,215 |  |  |  |  |
(*) | Hedge instruments include the overhedge rate of 44.65% regarding taxes.
The table below shows the breakdown by maturity of the hedging strategies:
Strategies |  | 12/31/2018 |
| 0-1 year |  |  | 1-2 years |  |  | 2-3 years |  |  | 3-4 years |  |  | 4-5 years |  |  | 5-10 years |  |  | over 10 years |  |  | Total |
Hedge of deposits and repurchase agreements |  |  | 11,925 |  |  |  | 4,729 |  |  |  | 3,519 |  |  |  | 0 |  |  |  | 5,737 |  |  |  | 3,817 |  |  |  | 0 |  |  |  | 29,727 |
Hedge of highly probable forecast transactions |  |  | 71 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 71 |
Hedge of net investment in foreign operations (*) |  |  | 12,550 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 12,550 |
Hedge of loan operations (Fair value) |  |  | 293 |  |  |  | 1,416 |  |  |  | 1,793 |  |  |  | 1,379 |  |  |  | 375 |  |  |  | 822 |  |  |  | 988 |  |  |  | 7,066 |
Hedge of loan operations (Cash flow) |  |  | 0 |  |  |  | 28 |  |  |  | 162 |  |  |  | 78 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 268 |
Hedge of funding (Fair value) |  |  | 1,590 |  |  |  | 297 |  |  |  | 154 |  |  |  | 391 |  |  |  | 377 |  |  |  | 3,972 |  |  |  | 2,343 |  |  |  | 9,124 |
Hedge of funding (Cash flow) |  |  | 2,874 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 231 |  |  |  | 0 |  |  |  | 3,105 |
Hedge of assets transactions |  |  | 6,346 |  |  |  | 0 |  |  |  | 1,657 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 8,003 |
Hedge of Asset-backed securities under repurchase agreements |  |  | 26,943 |  |  |  | 5,838 |  |  |  | 1,517 |  |  |  | 0 |  |  |  | 3,715 |  |  |  | 0 |  |  |  | 0 |  |  |  | 38,013 |
Hedge of assets denominated in UF |  |  | 12,241 |  |  |  | 924 |  |  |  | 56 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 13,221 |
Hedge of fair value through other comprehensive income |  |  | 4,223 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,178 |  |  |  | 0 |  |  |  | 5,401 |
Total |  |  | 79,056 |  |  |  | 13,232 |  |  |  | 8,858 |  |  |  | 1,848 |  |  |  | 10,204 |  |  |  | 10,020 |  |  |  | 3,331 |  |  |  | 126,549 |
Strategies |  | 12/31/2017 |
| 0-1 year |  |  | 1-2 years |  |  | 2-3 years |  |  | 3-4 years |  |  | 4-5 years |  |  | 5-10 years |  |  | over de 10 years |  |  | Total |
Hedge of deposits and repurchase agreements |  |  | 31,471 |  |  |  | 11,205 |  |  |  | 6,210 |  |  |  | 12,125 |  |  |  | — |  |  |  | 1,656 |  |  |  | — |  |  |  | 62,667 |
Hedge of highly probable forecast transactions |  |  | 162 |  |  |  | 70 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 232 |
Hedge of net investment in foreign operations (*) |  |  | 10,561 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 10,561 |
Hedge of loan operations (Fair value) |  |  | 268 |  |  |  | 143 |  |  |  | 628 |  |  |  | 1,502 |  |  |  | 1,335 |  |  |  | 642 |  |  |  | 1,459 |  |  |  | 5,977 |
Hedge of loan operations (Cash flow) |  |  | — |  |  |  | — |  |  |  | 27 |  |  |  | 157 |  |  |  | 75 |  |  |  | 865 |  |  |  | — |  |  |  | 1,124 |
Hedge of funding (Fair value) |  |  | 2,399 |  |  |  | 3,669 |  |  |  | 799 |  |  |  | 218 |  |  |  | 348 |  |  |  | 2,099 |  |  |  | 2,625 |  |  |  | 12,157 |
Hedge of funding (Cash flow) |  |  | 1,646 |  |  |  | 749 |  |  |  | 1,026 |  |  |  | 884 |  |  |  | 525 |  |  |  | 1,614 |  |  |  | — |  |  |  | 6,444 |
Hedge of syndicated loan (Fair value) |  |  | 794 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 794 |
Hedge of assets transactions |  |  | 16,726 |  |  |  | 5,940 |  |  |  | — |  |  |  | 1,253 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 23,919 |
Hedge of Asset-backed securities under repurchase agreements |  |  | 251 |  |  |  | 25,209 |  |  |  | 3,956 |  |  |  | 1,349 |  |  |  | — |  |  |  | 1,090 |  |  |  | — |  |  |  | 31,855 |
Hedge of assets denominated in UF |  |  | 12,352 |  |  |  | 2,822 |  |  |  | — |  |  |  | 53 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15,227 |
Hedge of fair value through other comprehensive income |  |  | — |  |  |  | — |  |  |  | 223 |  |  |  | — |  |  |  | — |  |  |  | 259 |  |  |  | — |  |  |  | 482 |
Total |  |  | 76,630 |  |  |  | 49,807 |  |  |  | 12,869 |  |  |  | 17,541 |  |  |  | 2,283 |  |  |  | 8,225 |  |  |  | 4,084 |  |  |  | 171,439 |
(*) | Classified as current, since instruments are frequently renewed.

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- Definition The entire disclosure for general hedge accounting. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Note Effective 2018-01-01 -Name IFRS -Number 7 -IssueDate 2017-01-01 -Section Hedge accounting -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=7&date=2017-03-01&anchor=F94962&doctype=Standard -URIDate 2017-03-09 + Details
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