6. Operating segment reporting

The information about operating segments is provided in accordance with IFRS 8. Operating segment reporting represents a basic tool in the oversight and management of the BBVA Group’s various activities. The BBVA Group compiles reporting information on as disaggregated level as possible, and all data relating to the businesses these units manage is recognized in full. These minimum level units are then aggregated in accordance with the organizational structure determined by the BBVA Group management into higher level units and, ultimately, the reportable segments themselves.

During 2015, there have been changes in the reporting structure of the operating segments of the BBVA Group with regard to the current structure during 2014. The increase of participation in Garanti up to 39.9%, (see Note 3), the balance sheet and income statement of Garanti is now presented separately from the Eurasia operating segment. Additionally, some operating expenses related to technology are reclassified from the Corporate Center to the area of banking activities in Spain are reclassified. This reclassification is a result of the transfer of management skills, resources and responsibilities, in terms of technology from the Corporate Center to the area of banking activities in Spain. Thus the business areas are now as follows:

• Banking activity in Spain includes, as in previous years, the Retail Network, Corporate and Business Banking (CBB), Corporate & Investment Banking (CIB), BBVA Seguros and Asset Management. It also includes the portfolios, finance and structural interest-rate positions of the euro balance sheet. Since April 24 it also includes the activity, balance sheet and earnings of the banking business of Catalunya Banc.
• Real estate activity in Spain

It mainly combines loans to real-estate developers and foreclosed real estate assets.

• Turkey

Includes the 39.9% stake in Garanti as of December 31, 2015.

• Mexico

Comprising of the banking and insurance businesses. The banking business includes retail business through its Commercial Banking, Consumer Finance and Corporate and Institutional Banking units; and wholesale banking through CIB.

• The United States

Encompasses the Group’s businesses in the United States.

• South America

Includes the banking and insurance businesses that BBVA carries out in the region.

• Rest of Eurasia

Includes the business carried out in the rest of Europe and Asia, i.e. the retail and wholesale businesses of the BBVA Group in the area.

Finally, Corporate Center is an aggregate that contains the remainder of the items that have not been allocated to the other operating segments, as it basically corresponds to the Group’s holding function. It groups together the costs of the headquarters that have a corporate function; management of structural exchange-rate positions; specific issues of capital instruments to ensure adequate management of the Group’s global solvency; portfolios and their corresponding results, whose management is not linked to customer relations, such as industrial holdings; certain tax assets and liabilities; funds due to commitments with pensioners; goodwill and other intangibles; and the results of certain corporate transactions.

The breakdown of the BBVA Group’s total assets by operating segments as of December 31, 2015, 2014 and 2013 is as follows:

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	Millions of euros
	Total Assets by Operating Segments	2015	2014 (*)	2013 (*)
Banking Activity in Spain	339,643	318,446	314,956
Real Estate Activity in Spain	17,310	17,365	19,975
Turkey (**)	89,003	22,342	19,453
Rest of Eurasia	23,626	22,325	21,771
Mexico	99,472	93,731	81,801
South America	70,661	84,364	77,874
United States	86,454	69,261	53,046
Subtotal Assets by Operating Segments	726,170	627,834	588,876
Corporate Center and other adjustments (***)	23,908	4,108	(6,179)
Total Assets BBVA Group	750,078	631,942	582,697

(*) The figures corresponding to December 2014 and 2013 have been restated in order to allow homogeneous comparisons due to changes in the scope of operating segments. (**) The information is presented under management criteria, pursuant to which Garanti’s assets and liabilities in 2014 and 2013 have been proportionally integrated based on our 25.01% interest in Garanti. After the agreement mentioned in Note 3 came into effect and the Garanti Group began consolidating. (***) Other adjustments include adjustments made to account for the fact that, in our Consolidated Financial Statements, Garanti was accounted for using the equity method until the acquisition of an additional 14.89% rather than using the management criteria referred above.

The attributable profit and main earning figures in the consolidated income statements for the year ended December 31, 2015 by operating segments are as follows:

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Main Margins and Profits by Operating Segments			Millions of euros
			BBVA Group	Operating Segments							Corporate Center	Adjusments (*)
				Spain	Real Estate Activity in Spain	Turkey	Rest of Eurasia	Mexico	South America	United States
2015
Net interest income			16,022	4,000	66	2,194	183	5,393	3,202	1,811	(424)	(404)
Gross income			23,362	6,804	(16)	2,434	473	7,069	4,477	2,652	(212)	(318)
Net operating income (**)			11,254	3,302	(150)	1,273	121	4,456	2,498	846	(982)	(109)
Operating profit /(loss) before tax			4,603	1,492	(713)	853	111	2,769	1,814	705	(1,152)	(1,276)
Profit			2,642	1,046	(492)	371	76	2,090	905	537	(1,891)	-
2014
Net interest income			14,382	3,830	(38)	735	189	4,910	4,699	1,443	(651)	(734)
Gross income			20,725	6,621	(220)	944	736	6,522	5,191	2,137	(575)	(632)
Net operating income (**)			10,166	3,534	(373)	550	393	4,115	2,875	640	(1,328)	(240)
Operating profit /(loss) before tax			3,980	1,220	(1,287)	392	320	2,519	1,951	561	(1,615)	(83)
Profit			2,618	858	(901)	310	255	1,915	1,001	428	(1,249)	-
2013 (*)
Net interest income			13,900	3,838	4	713	195	4,478	4,660	1,402	(678)	(713)
Gross income			20,752	6,103	(111)	929	788	6,194	5,583	2,047	(343)	(439)
Net operating income (**)			9,956	2,860	(253)	522	459	3,865	3,208	618	(1,290)	(34)
Operating profit /(loss) before tax			954	1	(1,868)	339	248	2,358	2,354	534	(1,421)	(1,590)
Profit			2,084	428	(1,268)	264	185	1,802	1,224	390	(941)	-

(*) The figures corresponding to 2014 and 2013 have been restated in order to allow homogeneous comparisons due to changes in the scope of operating segments (see Note 1.3). (**) Gross Income less Administrative Cost and Amortization (***) Includes adjustments due to the fact. In our Consolidated Financial Statements, Garanti Group was accounted for using the equity method instead of using management criteria as referenced earlier.

The accompanying Management Report shows more detail about the consolidated Income Statement as well as the main Balance sheet heading by operating segment.