Balance sheet and business activity

At the close of December 2013, the BBVA Group’s balance sheet and business activity closely reflected the trends mentioned in previous quarters:

• The exchange rates that most influence the Group’s financial statements have continued to lose against the euro. As a result, their effect is negative, both over the quarter and in the last 12 months.
• Loans and advances to customers (gross) has fallen by 1.9% over the quarter and 4.7% on the figure at the end of 2012. In addition to the aforementioned impact of exchange rates, lending in Spain has fallen back again, partly due to the early repayment under the Supplier Payment Fund in November.
• Non-performing loans declined by 1.1% over the last 3 months, with falls both in the domestic (–0.3%) and non-domestic sector (–4.2%). However, over the last 12 months, this item has increased by 27.3%. The classification of refinanced loans carried out in the third quarter in Spain has had a significant impact on these figures.
• Customer funds continue to perform very well in all geographical areas, with a favorable impact on the Group’s commercial gap.
  • Deposits from customers increased by 2.1% over the quarter and 6.0% over the 12 months, thanks to the good performance of deposits in the retail sector and the recovery of wholesale balances.
  • All the different types of off-balance-sheet funds also performed well.
• Lastly, total equity has fallen by 5.4% since September 2013. The impact on quarterly earnings of the signing of a new agreement with the CITIC group and the negative effect of exchange rates are the two basic reasons explaining this decline.

Consolidated balance sheet ⁽¹⁾

(Million euros)

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	31-12-13	Δ %	31-12-12	30-09-13
Cash and balances with central banks	37,064	(1.0)	37,434	27,926
Financial assets held for trading	72,301	(9.6)	79,954	71,409
Other financial assets designated at fair value	2,734	(4.2)	2,853	2,774
Available-for-sale financial assets	80,848	13.1	71,500	80,948
Loans and receivables	363,575	(5.2)	383,410	373,919
Loans and advances to credit institutions	24,203	(8.7)	26,522	27,845
Loans and advances to customers	334,744	(5.2)	352,931	341,553
Other	4,628	16.9	3,957	4,521
Held-to-maturity investments	-	n.m.	10,162	-
Investments in entities accounted for using the equity method	1,497	(78.0)	6,795	6,920
Tangible assets	7,723	(0.8)	7,785	7,574
Intangible assets	8,165	(8.4)	8,912	8,255
Other assets	25,576	(11.7)	28,980	27,452
Total assets	599,482	(6.0)	637,785	607,177
Financial liabilities held for trading	45,782	(18.1)	55,927	47,826
Other financial liabilities at fair value	2,772	10.2	2,516	2,791
Financial liabilities at amortized cost	480,307	(5.2)	506,487	480,708
Deposits from central banks and credit institutions	87,746	(17.6)	106,511	86,262
Deposits from customers	310,176	6.0	292,716	303,656
Debt certificates	65,497	(24.9)	87,212	73,619
Subordinated liabilities	10,579	(10.6)	11,831	9,909
Other financial liabilities	6,309	(23.2)	8,216	7,262
Liabilities under insurance contracts	9,844	9.0	9,032	9,869
Other liabilities	15,962	(20.3)	20,021	18,629
Total liabilities	554,667	(6.6)	593,983	559,821
Non-controlling interests	2,371	(0.1)	2,372	2,254
Valuation adjustments	(3,866)	77.0	(2,184)	(3,328)
Shareholders’ funds	46,310	6.2	43,614	48,429
Total equity	44,815	2.3	43,802	47,355
Total equity and liabilities	599,482	(6.0)	637,785	607,177
Memorandum item:
Contingent liabilities	36,437	(7.8)	39,540	36,813

(1) Pro forma financial statements with Garanti Group accounted for by the proportional consolidation method, without early application of the IFRS 10, 11 and 12.

Loands and advances to customers (gross)

(Billion euros)

(1) At constant exchange rates: -0.8%.

Loans and advances to customers

(Million euros)

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	31-12-13	Δ %	31-12-12	30-09-13
Domestic sector	167,670	(12.1)	190,817	176,431
Public sector	22,128	(12.9)	25,399	25,269
Other domestic sectors	145,542	(12.0)	165,417	151,161
Secured loans	93,446	(11.6)	105,664	95,731
Other loans	52,095	(12.8)	59,753	55,431
Non-domestic sector	156,615	0.2	156,312	154,446
Secured loans	62,401	1.0	61,811	61,927
Other loans	94,214	(0.3)	94,500	92,519
Non-performing loans	25,826	27.3	20,287	26,109
Domestic sector	20,985	38.4	15,159	21,056
Non-domestic sector	4,841	(5.6)	5,128	5,053
Loans and advances to customers (gross)	350,110	(4.7)	367,415	356,986
Loan-loss provisions	(15,366)	6.1	(14,484)	(15,433)
Loans and advances to customers	334,744	(5.2)	352,931	341,553

Customer funds

(Billion euros)

(1) At constant exchange rates: +12.2%.

Customer funds

(Million euros)

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	31-12-13	Δ %	31-12-12	30-09-13
Deposits from customers	310,176	6.0	292,716	303,656
Domestic sector	151,070	7.0	141,169	150,622
Public sector	14,435	(33.8)	21,807	19,278
Other domestic sectors	136,635	14.5	119,362	131,344
Current and savings accounts	53,558	11.1	48,208	50,296
Time deposits	69,977	12.9	61,973	70,246
Assets sold under repurchase agreement and other	13,100	42.7	9,181	10,802
Non-domestic sector	159,106	5.0	151,547	153,034
Current and savings accounts	101,515	3.4	98,169	97,738
Time deposits	49,266	1.2	48,691	47,819
Assets sold under repurchase agreement and other	8,325	77.6	4,688	7,478
Other customer funds	99,213	8.1	91,774	95,109
Spain	59,490	14.0	52,179	56,340
Mutual funds	22,298	16.6	19,116	20,492
Pension funds	20,428	10.0	18,577	19,877
Customer portfolios	16,763	15.7	14,486	15,971
Rest of the world	39,723	0.3	39,596	38,769
Mutual funds and investment companies	21,180	(4.8)	22,255	21,021
Pension funds (1)	4,234	14.8	3,689	3,989
Customer portfolios	14,309	4.8	13,652	13,759
Total customer funds	409,389	6.5	384,491	398,765

(1) They do not include the assets under management by pension fund administrators in Chile, Mexico, Colombia and Peru.