Finance

Balance Sheet

The Financial Services sector has had a considerable impact on the balance sheet of Migros Group. Compared to the previous year, the balance sheet total rose by CHF 1.8 billion to CHF 68.4 billion, much of which can be attributed to the increase in mortgage and other customer receivables, customer deposits and liabilities as well as issued debt instruments.

Customer deposits as at 31 December 2019 amounted to 51.8% (previous year: 50.8%).

Balance sheet Migros Group CHF 68.4 billion

Balance sheet in detail

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Migros Group Retail and industry sector 1 Financial services sector 1
In CHF million 2019 2018 2019 2018 2019 2018
Assets
Cash and cash equivalents 7'614 7'039 2'357 2'614 5'334 4'495
Receivables due from banks 193 135 13 10 180 127
Mortgages and other customer receivables 40'392 39'010 - - 40'413 39'017
Other receivables 1'089 1'130 1'097 1'137 1 2
Inventories 2'627 2'785 2'627 2'785 - -
Financial assets 1'401 1'384 568 563 832 821
Investments in associated companies and joint ventures 88 81 825 819 - -
Investment property 243 355 219 327 24 27
Fixed assets 12'547 12'781 12'463 12'692 84 89
Intangible assets 695 743 680 719 15 24
Other assets 1'514 1'158 1'480 1'122 34 36
Balance sheet total 68'402 66'601 22'331 22'789 46'917 44'638
Liabilities
Payables due to banks 575 675 206 427 390 255
Customer deposits and liabilities 35'403 33'840 - - 35'482 33'913
Other financial liabilities 1'903 2'233 1'899 2'229 4 4
Other liabilities 2'685 2'873 2'628 2'801 66 80
Provisions 170 143 162 137 8 5
Issued debt instruments 6'730 6'137 200 - 6'530 6'137
Liabilities from employee benefits 767 796 745 776 21 21
Current income tax payables 74 79 46 56 29 23
Deferred income tax liabilities 1'314 1'409 1'007 1'080 307 328
Total liabilities 49'621 48'184 6'893 7'507 42'836 40'765
Total equity including minority interests 18'781 18'417 15'438 15'282 4'081 3'873
Balance sheet total 68'402 66'601 22'331 22'789 46'917 44'638

1 Unaudited; before consolidation of transactions between the two sectors.

Balance sheet of the Retail and Industry sector

The balance sheet total for the Retail and Industry sector fell by 2.0 % to CHF 22.3 billion as at 31 December 2019 due to the disposal of Depot Group and m-way.

The carrying amount of fixed assets decreased by CHF 229 million on the previous year to CHF 12'463 million. During the past financial year, companies in the Retail and Industry sector invested a total of CHF 1'557 million (previous year: CHF 1'499 million), mainly in renewing the branch network and plants in Switzerland. Investments totalling CHF 58 million (previous year: CHF 62 million) were made outside of Switzerland.

Intangible assets amounted to CHF 680 million as at 31 December 2019 (previous year: CHF 719 million). This decrease is essentially due to the change in the scope of consolidation.

The balance sheet structure of the Retail and Industry sector remains very healthy. Net financial assets stood at CHF 389 million on 31 December 2019 (previous year: CHF 309 million). EBITDA was CHF 1'390 million (previous year: CHF 1'796 million). Equity increased by CHF 155 million to CHF 15'438 million and corresponds to 69.1% (previous year: 67.1%) of the balance sheet total.

Balance sheet of the Financial Services sector

During the reporting year, mortgages and other customer receivables increased by CHF 1.4 billion on the previous year to CHF 40.4 billion (+3.6%).

On the liabilities and equity side, customer deposits and liabilities increased by CHF 1.6 billion or 4.6%. Customer deposits totalled CHF 35.5 billion at the end of 2019. Migros Bank thus continues to benefit from a comfortable refinancing structure.

Due to the positive result for the year, the bank once again managed to strengthen its equity base. As at 31 December 2019, the bank's equity amounted to CHF 4.1 billion, significantly above the coverage required under Swiss banking law.