The Group's summarized consolidated balance sheets as of December 31, 2013 and December 31, 2012 are shown below.
At the end of 2013, the performance of the balance sheet and business activity of the BBVA Group have been in general similar to those in previous periods. One important factor to be noted, however, is the widespread depreciation of currencies against the euro, which had an impact on the Group's financial statements, and had a negative effect on the year-on-year rates of change in the main variables.
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| ASSETS | Millions of Euros | ||
|---|---|---|---|
| 2013 | 2012 | % Change | |
| CASH AND BALANCES WITH CENTRAL BANKS | 34,903 | 35,494 | (1.7) |
| FINANCIAL ASSETS HELD FOR TRADING | 72,112 | 79,829 | (9.7) |
| OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 2,413 | 2,530 | (4.6) |
| AVAILABLE-FOR-SALE FINANCIAL ASSETS | 77,774 | 67,500 | 15.2 |
| LOANS AND RECEIVABLES | 350,945 | 371,347 | (5.5) |
| Loans and advances to credit institutions | 22,862 | 25,448 | (10.2) |
| Loans and advances to customers | 323,607 | 342,163 | (5.4) |
| Debt securities | 4,476 | 3,736 | 19.8 |
| HELD-TO-MATURITY INVESTMENTS | - | 10,162 | n.m. |
| FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 98 | 226 | (56.6) |
| HEDGING DERIVATIVES | 2,530 | 4,894 | (48.3) |
| NON-CURRENT ASSETS HELD FOR SALE | 2,880 | 4,229 | (31.9) |
| INVESTMENTS IN ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 4,742 | 10,782 | (56.0) |
| INSURANCE CONTRACTS LINKED TO PENSIONS | - | - | n.m. |
| REINSURANCE ASSETS | 619 | 50 | n.m. |
| TANGIBLE ASSETS | 7,534 | 7,572 | (0.5) |
| INTANGIBLE ASSETS | 6,759 | 7,132 | (5.2) |
| TAX ASSETS | 11,582 | 11,650 | (0.6) |
| OTHER ASSETS | 7,684 | 7,668 | 0.2 |
| TOTAL ASSETS | 582,575 | 621,072 | (6.2) |
As of December 31, 2013, the Group's “Total assets” stood at €582,575 million, down 6.2% on the €621,072 million as of December 31, 2012. This decline is the result of several factors. First, the negative effect of the exchange rates mentioned above. Second, lending in Spain and in CIB portfolios, especially in developing economies, continued to decline as in previous periods. This is despite the steady increase recorded in emerging countries.
As of December 31, 2013, the balance of “Loans and receivables” stood at €350,945 million, down 5.5% on the €371,347 million as of December 31, 2012.
Within this heading, the balance of "Loans and advances to credit institutions" is €22,862 million, a 10.2% decrease on December 31, 2012. The heading “Loans and advances to customers” as of December 31, 2013 totaled €323,607 million, down 5.4% on the €342,163 million posted as of December 31, 2012, but with performance varying between the geographical areas in question.
By business areas, the main trends are:
- Banking activity in Spain continues to be affected by the deleveraging process in the economy, which is still underway. Overall, gross customer lending in the area is down 7.8% year-on-year.
- Eurasia includes the Garanti Group for analysis of the area's earnings and activity. The area's loans and advances to customers (gross) as of December 31, 2013 is €28,397 million, down 6.1% on the figure for December 2012. The performance in Eurasia has been mixed, however: the wholesale segment in Europe and Asia contrasts with the retail portfolio, mainly focused on BBVA's stake in Garanti. Wholesale client portfolios in the region are down, while steady growth continues in lending to the retail segment, and specifically lending in Garanti. Excluding the negative effect of the exchange rate, Garanti registered growth of 27.6% in loans in liras and of 9.7% in its foreign currency portfolio, related to project finance.
- Mexico has maintained a good rate of growth, largely stemming from wholesale portfolios, which are up 14.3%. Within the wholesale portfolios, lending to SMEs posted the highest rates of growth, while lending to corporates also shows a positive trend. Retail lending is up 6.6% over the year. Loans to small businesses are the segment which saw the biggest growth in year-on-year terms, followed by credit cards, while personal mortgages have been practically flat in year-on-year terms. This has resulted in positive growth in gross loans and advances to customers of 3.3% against December 2012.
- South America continues to show a high year-on-year growth in business, in practically all the countries where the Group operates. In fact, the loan book decreased by 0.5% on the figure for December 2012. Particularly noteworthy is the increase in lending from the retail segment, above all in consumer finance, credit cards and, to a lesser degree, mortgage loans.
- The United States has performed strongly, underpinned by a positive trend in turnover reported by BBVA Compass. The loan book has grown 3.2%. A breakdown of lending by portfolio shows balanced growth within each portfolio, with the usual exception of lending to construction real estate, where the figure continues to shrink as part of a deliberate policy. Compass, which accounts for 94% of total lending in the United States, has registered an outstanding rise in commercial loans and in consumer finance and credit cards, while steady percentage rises continue in personal mortgages.
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| LIABILITIES AND EQUITY | Millions of Euros | ||
|---|---|---|---|
| 2013 | 2012 | % Change | |
| LIABILITIES |
|
|
|
| FINANCIAL LIABILITIES HELD FOR TRADING | 45,648 | 55,834 | (18.2) |
| OTHER FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 2,467 | 2,216 | 11.3 |
| FINANCIAL LIABILITIES AT AMORTIZED COST | 464,141 | 490,605 | (5.4) |
| Deposits from central banks | 30,893 | 46,475 | (33.5) |
| Deposits from credit institutions | 52,423 | 55,675 | (5.8) |
| Customer deposits | 300,490 | 282,795 | 6.3 |
| Debt certificates | 64,120 | 86,255 | (25.7) |
| Subordinated liabilities | 10,556 | 11,815 | (10.7) |
| Other financial liabilities | 5,659 | 7,590 | (25.4) |
| FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | - | - | n.m. |
| HEDGING DERIVATIVES | 1,792 | 2,968 | (39.6) |
| LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | - | - | n.m. |
| LIABILITIES UNDER INSURANCE CONTRACTS | 9,834 | 9,020 | 9.0 |
| PROVISIONS | 6,853 | 7,834 | (12.5) |
| TAX LIABILITIES | 2,530 | 3,820 | (33.8) |
| OTHER LIABILITIES | 4,460 | 4,586 | (2.7) |
| TOTAL LIABILITIES | 537,724 | 577,270 | (6.9) |
| EQUITY | - | - | n.m. |
| STOCKHOLDERS’ FUNDS | 46,310 | 43,614 | 6.2 |
| VALUATION ADJUSTMENTS | (3,831) | (2,184) | 75.4 |
| NON-CONTROLLING INTEREST | 2,371 | 2,372 | (0.0) |
| TOTAL EQUITY | 44,850 | 43,802 | 2.4 |
| TOTAL LIABILITIES AND EQUITY | 582,575 | 621,072 | (6.2) |
As of December 31, 2013, the balance under the heading “Financial liabilities at amortized cost" totaled €464,141 million, down 5.4% on the €490,605 million posted as of December 31, 2012.
“Customer deposits”, which accounts for 65% of this heading, stood at €300,490 million at the close of 2013. This 6.3% increase on the €282,795 million posted as of December 31, 2012 has been fueled by the strong performance of the typical headings of the retail segment, i.e. current and savings accounts and time deposits in both the domestic and non-domestic sectors. Despite the difficult economic environment, the BBVA Group continues to demonstrate its great capacity to gather new funds thanks to the high capillarity of its commercial network.
“Debt certificates” fell 25.7% during the year, with a particularly significant fall of 43.6% in promissory notes and bills. This source of finance has been partly replaced by the increase in time deposits. “Subordinated liabilities” are down 10.7%, impacted by the maturity of €1,238 million of BBVA, S.A. debt securities in June 2013.