2014 was a difficult year, although it was positive from the economic point of view. Global GDP grew by 3.3%, slightly above the figure for 2013. The stronger growth in the developed economies offset a certain slowdown in emerging economies as a whole, where the performance of individual countries varied greatly.
For BBVA it was a productive year because we achieved good earnings, took important decisions that improve the Group’s growth potential and made notable progress in our digital transformation strategy to become the best Bank in the world.
The net attributable profit in 2014 was €2,618m, an increase of 25.7% in current euros. In constant euros, i.e. not taking into account the exchange-rate effect, the net attributable profit increased by 54.6% from a year earlier. These results have been characterized by increased revenue, cost control, improved risk indicators and a strengthening of the capital base.
Gross income totaled €21,357m, slightly above the figure in 2013, and an increase of 9.6% in constant euros. Overall, expenses fell by 2.2% as a result of management actions adapted to each market. The trend in risk indicators has been positive. The NPA ratio has improved to 5.8%, the coverage ratio has increased to 64%, loan-loss and real-estate provisions have dropped by 25% and the cost of risk is down 34 basis points to 1.25%.