financial statements 2015


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  • Double-digit growth in both lending and deposits continues.
  • Improved performance of the retail portfolio.
  • Resilience of the area’s earnings, in a moderate economic environment.
  • Adequate asset quality that compares favorably with the banking system as a whole.
Business activity

(Year-on-year change at constant exchange rate. Data as of 31-12-2015)

Net interest income/ATA

(Percentage. Constant exchange rate)

Operating income

(Million euros at constant exchange rate)

(1) At current exchange rate: +8.3%.
Net attributable profit

(Million euros at constant exchange rate)

(1) At current exchange rate: +9.1%.
Breakdown of loans and advances to customers (gross) excluding repos

(Percentage as of 31-12-2015)

Breakdown of customer deposits under management

(Percentage as of 31-12-2015)

Financial statements and relevant business indicators
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Million euros and percentage
Income statement 2015 Δ% Δ% (1) 2014
Net interest income 5,393 9.8 9.5 4,910
Net fees and commissions 1,223 4.9 4.6 1,166
Net trading income 196 0.5 0.2 195
Other income/expenses 257 2.6 2.3 250
Gross income 7,069 8.4 8.1 6,522
Operating expenses (2,613) 8.6 8.3 (2,406)
Personnel expenses (1,121) 9.8 9.5 (1,020)
General and administrative expenses (1,273) 6.2 5.9 (1,199)
Depreciation and amortization (219) 17.1 16.8 (187)
Operating income 4,456 8.3 8.0 4,115
Impairment on financial assets (net) (1,633) 7.7 7.4 (1,517)
Provisions (net) and other gains (losses) (53) (32.3) (32.5) (79)
Income before tax 2,769 9.9 9.6 2,519
Income tax (678) 12.4 12.1 (604)
Net income 2,091 9.1 8.8 1,916
Non-controlling interests (1) 10.6 10.3 (1)
Net attributable profit 2,090 9.1 8.8 1,915
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Million euros and percentage
Balance sheet 31-12-15 Δ% Δ% (1) 31-12-14
Cash and balances with central banks 6,363 6.0 12.2 6,004
Financial assets 32,986 (3.9) 1.8 34,311
Loans and receivables 53,262 11.4 18.0 47,800
Loans and advances to customers 47,513 5.1 11.2 45,224
Loans and advances to credit institutions and other 5,748 123.1 136.2 2,576
Tangible assets 2,126 27.9 35.4 1,662
Other assets 4,735 19.8 26.8 3,953
Total assets/liabilities and equity 99,472 6.1 12.3 93,731
Deposits from central banks and credit institutions 12,817 10.3 16.8 11,617
Deposits from customers 49,539 7.8 14.2 45,937
Debt certificates 5,204 3.4 9.5 5,033
Subordinated liabilities 4,425 7.2 13.5 4,128
Financial liabilities held for trading 7,134 (6.3) (0.8) 7,616
Other liabilities 14,993 4.0 10.1 14,421
Economic capital allocated 5,360 7.7 14.0 4,979
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Million euros and percentage
Relevant business indicators 31-12-15 Δ% Δ% (1) 31-12-14
Loans and advances to customers (gross) (2) 48,757 4.6 10.7 46,630
Customer deposits under management (2) 43,321 10.8 3.3 39,091
Off-balance sheet funds (3) 21,557 (2.4) 3.3 22,094
Efficiency ratio (%) 37.0

NPL ratio (%) 2.6

NPL coverage ratio (%) 120

Cost of risk (%) 3.28

(1) Figures at constant exchange rate. (2) Excluding repos. (3) Includes mutual funds, pension funds and other off-balance sheet funds.

Macro and industry trends

Economic growth in Mexico in 2015 has approached 2.5%, 0.4 percentage points more than in 2014, thanks to the improvement in domestic demand (with the increase in employment and the anchoring of inflation at low levels) and stronger industrial activity in the United States in the first half of the year. Keeping inflation at low levels (2.7% a year on average in 2015) will help make the expected increase in interest rates very gradual and limited. In December, the Bank of Mexico increased the reference rate by 25 basis points to 3.25%, in line with the Federal Reserve’s strategy, and this synchronization is expected to be maintained in 2016.

In 2015, the Mexican peso depreciated year-on-year against the euro by 5.5% in terms of the year-end exchange rate, which means a practically flat performance in terms of average exchange rates. Unless expressly stated otherwise, all the comments below on rates of change will be expressed at a constant exchange rate.

The country’s financial system maintains high levels of solvency, with a total capital adequacy ratio of 15.0% as of November 2015, according to the latest information available from the Bank of Mexico. The NPL ratio has declined slightly over the year (2.8% as of November, according to the public information released by the National Securities Banking Commission, Comisión Nacional Bancaria de Valores –CNBV–). In terms of activity, and despite the loan portfolio has posted double-digit percentage increases driven by the wholesale segments, a slight slowdown was registered in November 2015 due to some repayments in the companies segment. However, consumer finance and mortgage lending continue to grow above 10%. Fund gathering has also performed strongly, in both demand and time deposits. The increase in reference rates could have a positive impact on the system’s earnings, as a result of the positive sensitivity of net interest income to rate increases.


Double-digit growth of the loan book: up 10.7% year-on-year, with data as of 31-Dec-2015. Thus, more moderate performance than in previous quarters due to significant pre-payments from the public sector portfolio.

Despite the above, the wholesale portfolio is notably strong, with a year-on-year increase of 12.7%. This has allowed BBVA in Mexico to increase its market share by 50 basis points since December 2014, according to the public information released by the CNBV at the end of November 2015. Within this portfolio, one highlight for the second consecutive quarter, is the good performance of real-estate developers, which ended the year with a year-on-year growth of 26.4%. Commercial lending (corporations and SMEs) finished the year with a balance 15.1% higher than on the same date in 2014.

The retail portfolio registers a slight improvement toward the end of 2015, closing the year with year-on-year growth of 10.3%, boosted by lending to small businesses (SMEs) and consumer finance. SMEs show the greatest strength, with a year-on-year rate of growth of 24.0%. Consumer loans grow by 21.9%, thanks to the strategy of pre-approved loans for the bank’s customer base. This has enabled BBVA in Mexico to register a gain in market share of 80 basis points in this category compared to the figure for December 2014, according to the public information released by the CNBV for November 2015. A high rate of pre-payments is still happening in the credit card and mortgage portfolios. However, new production of bank credit cards has performed well, with year-on-year growth of 10.2%. Thus, the credit card portfolio showed a year-on-year increase through December 2015 of 2.2%. New mortgage loans have risen by 7.9% over the same period, and as a consequence the balance of this portfolio stands at 3.9% above the volume at the end of 2014.

This trend in lending has been parallel to an adequate asset quality. The NPL ratio (2.6% as of December 2015) remains at levels similar to those at the end of the third quarter but below those of the closing of 2014 (2.9%), while the coverage ratio has improved by 633 basis points over the year to 120% (121% as of 30-Sep-2015 and 114% as of 31-Dec-2014). It is worth noting that, in local terms, the figures continue to compare positively with the market.

Total customer funds ended the year with year-on-year growth of 12.2%. Fund gathering maintains its positive trend (up 17.3%), heavily influenced by the good performance of both current and savings accounts (up 21.6%) and time deposits (up 16.1%). The above also enables BBVA in Mexico to maintain a profitable funding mix, with a greater weight of low-cost funds. Off-balance-sheet funds ended 2015 with year-on-year growth of 3.3%.


BBVA in Mexico registered strong earnings in 2015. The net attributable profit stands at €2,090m, which means a year-on-year rise of 8.8%, due to:

  • Good performance of net interest income, which is up 9.5% in year-on-year terms. Its performance has been heavily influenced by a growth in activity more biased toward wholesale segments, as well as by a lower contribution from the Global Markets unit.
  • Improved performance of income from fees and commissions mainly in the last part of the year, thanks to the revenue from Corporate & Investment Banking, with accumulated growth of 4.6%.
  • NTI heavily influenced by the negative trend in the markets, although due to the positive effect from the exchange rate market, this heading ends the year with figures very similar to those registered in 2014.
  • The other income/expenses item is slightly up (2.3% in year-on-year terms), due to an increased contribution to the Deposit Guarantee Fund as a result of a larger volume of liabilities. Earnings from the insurance business, which are included under this heading, continue to improve and closed the year with year-on-year growth of 10.9%.
  • Operating expenses are up 8.3%, partly due to the impact of the investment plans being executed in Mexico since 2013.
  • Lastly, impairment losses on financial assets are up year-on-year by 7.4%, below the increase registered by the loan portfolio. Thus, the cumulative cost of risk through December has declined to 3.28% (3.45% in 2014).