30	TRANSACTIONS WITH RELATED PARTIES

The Group’s consolidated financial statements at December 31, 2017 and 2016 include transactions with related companies, the Board of Directors, the Group’s key executives (defined as the Management of Credicorp) and the companies which are controlled by these individuals through their majority shareholding or their role as Chairman or CEO.

The table below shows the main transactions with related parties as of December 31, 2017 and 2016:

	2017		2016
	S/000		S/000

Statement of financial situation -
Direct loans		1,468,211		1,181,648
Available-for-sale investments and trading securities		715,490		433,517
Deposits		(1,022,462)		(264,564)
Trading derivatives		(2,674)		1,074

Statement of income
Interest income related to loans – income		23,992		28,872
Interest expenses related to deposits – expense		(8,342)		(8,001)
Other income		7,247		9,098

Off balance sheet
Indirect loans		385,360		236,106

All transactions with related parties are made in accordance with normal market conditions available to other customers. At December 31, 2017, direct loans to related companies are secured by collaterals, had maturities between January 2018 and July 2028 at an annual average interest rate of 6.01 percent (at December 31, 2016 they had maturities between January 2017 and September 2026 and bore an annual average interest rate of 7.15 percent). Also, at December 31, 2017 and 2016, the Group maintains an allowance for loan losses to related parties amounting to S/7.2 million and S/6.4 million, respectively.

At December 31, 2017 and 2016, directors, officers and employees of the Group have been involved, directly and indirectly, in credit transactions with certain subsidiaries of the Group, as permitted by Peruvian Banking and Insurance Law Nº26702, which regulates and limits certain transactions with employees, directors and officers of a bank or an insurance company. At December 31, 2017 and 2016, direct loans to employees, directors, key management and family members amounted to S/957.2 million and S/1,015.9 million, respectively; they are repaid monthly and earn interest at market rates.

The Group’s key executives’ compensation (including the related income taxes assumed by the Group) as of December 31, 2017, 2016 and 2015 was as follows:

	2017		2016		2015
	S/000		S/000		S/000

Remunerations		41,211		43,177		37,255
Director’s fees		7,105		7,351		6,692
Total		48,316		50,528		43,947

Additionally, approximately S/32.1 million of stock awards vested at December 31, 2017 (S/30.1 million and S/22.3 million at December 31, 2016 and 2015, respectively). The related income tax is assumed by the Group.

At December 31, 2017 and 2016 the Group holds interests in various mutual funds and hedge funds managed by certain of the Group’s Subsidiaries; those interests are classified as trading securities or available-for-sale investments.

The details of the mutual funds classified as available-for-sale are presented below:

	2017		2016
	S/000		S/000

Held-for-trading and available-for-sale investments
Mutual funds – Soles		125,056		2,741
Mutual funds – Bolivianos		77,804		88,838
Mutual funds – U.S. Dollars		40,588		38,436
Mutual funds – Colombian pesos		21,525		1,747
Mutual funds – Chilean pesos		14,267		13,501
Total		279,240		145,263

Restricted Mutual Funds		416,696		368,418