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January - June 2012

Other information: Corporate & Investment Banking

C&IB highlights in the second quarter

  • Rating downgrades have had a negative impact on activity.
  • Diversified revenue.
  • Resilient operating income.

Industry Trends

The second quarter of 2012 was characterized by a worsening of the debt crisis in the peripheral European countries and by downgrades in Spain’s sovereign rating. This has negatively affected wholesale business activity in general, above all in Europe.

Despite this situation, BBVA has maintained high-quality recurring earnings at CIB thanks to its differential customer-centric business model, and its portfolio diversified by products and geographical areas.

Unless indicated otherwise, all comments below on percentage changes refer to constant exchange rates, with the aim of providing a better understanding of the performance of BBVA’s wholesale business.

Income statement

(Million euros)


Corporate & Investment Banking

1H12 Δ% Δ% (1) 1H11
Net interest income 850 14.1 12.0 745
Net fees and commissions 349 4.1 1.6 335
Net trading income 134 (46.0) (47.6) 249
Other income/expenses 62 83.5 88.5 34
Gross income 1,395 2.4 0.2 1,363
Operating costs (437) 5.6 3.0 (414)
Personnel expenses (243) 3.1 0.9 (235)
General and administrative expenses (189) 7.3 4.3 (176)
Deprecation and amortization (6) 105.2 96.0 (3)
Operating income 958 1.0 (1.0) 949
Impairment on financial assets (net) (67) n.m. n.m. 12
Provisions (net) and other gains (losses) (17) 140.9 114.1 (7)
Income before tax 874 (8.4) (10.0) 954
Income tax (262) (5.0) (6.6) (275)
Net income 612 (9.8) (11.4) 679
Non-controlling interests (60) 37.7 27.3 (43)
Net attributable profit 553 (13.0) (14.2) 635
(1) At constant exchange rate.

Balance sheet

(Million euros)


Corporate & Investment Banking

30-06-12 Δ% Δ% (1) 30-06-11
Cash and balances with central banks 6,145 29.7 12.5 4,739
Financial assets 83,060 22.7 22.0 67,670
Loans and receivables 74,391 6.5 4.2 69,877
Loans and advances to customers 61,010 6.8 4.1 57,104
Loans and advances to credit institutions and other 13,381 4.8 4.5 12,773
Inter-area positions 7,720 (45.3) (48.0) 14,109
Tangible assets 32 40.7 34.9 23
Other assets 3,044 33.1 29.6 2,286
Total assets/Liabilities and equity 174,392 9.9 7.5 158,705
Deposits from central banks and credit institutions 69,075 13.3 11.6 60,952
Deposits from customers 37,256 (27.6) (30.1) 51,440
Debt certificates (215) (61.9) (61.9) (563)
Subordinated liabilities 1,554 (25.9) (26.9) 2,098
Inter-area positions - - - -
Financial liabilities held for trading 55,831 66.5 66.2 33,536
Other liabilities 5,766 (21.2) (25.3) 7,315
Economic capital allocated 5,125 30.5 26.5 3,927
(1) At constant exchange rate.

C&IB. Operating income

(Million euros at constant exchange rate)

(1) At current exchange rates: +1.0%.

C&IB. Net attributable profit

(Million euros at constant exchange rate)

(1) At current exchange rates: – 13.0%.
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