Below is presented the conciliation of the Group’s financial statements with the Garanti Group using the equity method versus consolidation in proportion to the percentage of the BBVA Group’s stake in the Turkish entity. In terms of reporting to the market, this consolidation method is deemed better for evaluating the nature and financial effects of the Garanti Group’s business activities, consistent with the information from previous periods, and more coherent in its effects on capital adequacy. Moreover, in 2013 the corporate operations heading includes the results from the Group’s pension business in Latin America and the capital gains from the sale of the various companies, the capital gain from the disposal of BBVA Panama, the capital gain generated by the reinsurance operation on the individual life and accident insurance portfolio in Spain and the effects of the conclusion of the agreement with the CITIC group.
Consolidated income statement BBVA Group
(Million euros)
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Garanti Group consolidated in proportion to the percentage of the Group’s stake and with the heading “Results from corporate operations” |
Garanti Group consolidated using the equity method |
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1Q14 | 1Q13 | 1Q14 | 1Q13 |
| Net interest income | 3,391 | 3,623 | 3,244 | 3,424 |
| Net fees and commissions | 985 | 1,052 | 943 | 1,003 |
| Net trading income | 751 | 719 | 733 | 681 |
| Dividend income | 29 | 19 | 29 | 19 |
| Income by the equity method | (14) | (1) | 55 | 157 |
| Other operating income and expenses | (90) | 7 | (92) | - |
| Gross income | 5,051 | 5,419 | 4,912 | 5,284 |
| Operating expenses | (2,613) | (2,758) | (2,252) | (2,391) |
| Personnel expenses | (1,375) | (1,458) | (1,329) | (1,406) |
| General and administrative expenses | (959) | (1,025) | (923) | (985) |
| Depreciation and amortization | (279) | (276) | (271) | (265) |
| Operating income | 2,438 | 2,661 | 2,389 | 2,628 |
| Impairment on financial assets (net) | (1,103) | (1,376) | (1,078) | (1,472) |
| Provisions (net) | (144) | (167) | (140) | (147) |
| Other gains (losses) | (173) | (287) | (174) | 473 |
| Income before tax | 1,017 | 831 | 998 | 1,482 |
| Income tax | (273) | (205) | (254) | (364) |
| Net income from ongoing operations | 744 | 626 | 744 | 1,118 |
| Net income from discontinued operations | - | - | - | 823 |
| Results from corporate operations | - | 1,315 | - | - |
| Net income | 744 | 1,941 | 744 | 1,941 |
| Non-controlling interests | (120) | (206) | (120) | (207) |
| Net attributable profit | 624 | 1,734 | 624 | 1,734 |
Consolidated balance sheet BBVA Group
(Million euros)
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Garanti Group consolidated in proportion to the percentage of the Group’s stake |
Garanti Group consolidated using the equity method |
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31-03-14 | 31-03-14 |
| Cash and balances with central banks | 27,546 | 25,522 |
| Financial assets held for trading | 76,433 | 76,236 |
| Other financial assets designated at fair value | 3,385 | 3,040 |
| Available-for-sale financial assets | 88,236 | 84,931 |
| Loans and receivables | 360,938 | 348,190 |
| Loans and advances to credit institutions | 21,441 | 20,179 |
| Loans and advances to customers | 334,698 | 323,363 |
| Debt securities | 4,799 | 4,648 |
| Held-to-maturity investments | - | - |
| Investments in entities accounted for using the equity method | 1,319 | 4,623 |
| Tangible assets | 7,474 | 7,298 |
| Intangible assets | 8,139 | 6,729 |
| Other assets | 25,666 | 25,411 |
| Total assets | 599,135 | 581,980 |
| Financial liabilities held for trading | 48,976 | 48,810 |
| Other financial liabilities at fair value | 3,040 | 2,525 |
| Financial liabilities at amortized cost | 476,656 | 460,536 |
| Deposits from central banks and credit institutions | 84,461 | 80,054 |
| Deposits from customers | 309,817 | 299,685 |
| Debt certificates | 62,892 | 61,951 |
| Subordinated liabilities | 12,123 | 12,100 |
| Other financial liabilities | 7,363 | 6,746 |
| Liabilities under insurance contracts | 10,102 | 10,092 |
| Other liabilities | 16,306 | 15,961 |
| Total liabilities | 555,079 | 537,925 |
| Non-controlling interests | 1,863 | 1,863 |
| Valuation adjustments | (3,636) | (3,637) |
| Shareholders' funds | 45,830 | 45,829 |
| Total equity | 44,056 | 44,056 |
| Total equity and liabilities | 599,135 | 581,980 |
| Memorandum item: |
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| Contingent liabilities | 34,878 | 31,897 |
