Shareholder Report
january-june 2015

The BBVA Group’s earnings grew sharply in the first quarter

Earnings

Group Earnings

BBVA Group has generated a half-yearly net attributed profit of €2,759m, a figure that is over twice that for the same period the previous year. These earnings include those generated by Catalunya Banc, whose effect is practically neutral at the level of net attributable profit.

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Income statement


  • 7.521
    30-06-15
  • 6,9
    Δ%
  • 7.038
    30-06-14
  • 11.554
    30-06-15
  • 11,4
    Δ%
  • 10.368
    30-06-14
  • 5.836
    30-06-15
  • 14,6
    Δ%
  • 5.093
    30-06-14
  • 3.046
    30-06-15
  • 44,4
    Δ%
  • 2.109
    30-06-14
  • 2.759
    30-06-15
  • 107,7
    Δ%
  • 1.328
    30-06-14

Geographical diversification

Banking activity in Spain: The purchase of Catalunya Banc was completed on April 24. As of June 30, this bank contributed €23,459m to the loan book and €29,555m in customer funds. Excluding the effect of this change in scope, the rate of fall in gross customer lending continues to slow (-0.6% since December 2014), thanks to the good performance of new loans granted. Net attributable profit in the area is €809m, a year-on-year rise of 33.1%.

Real-estate activity in Spain: The loss of €300m compares very favorably with the same period last year, basically due to the lower loan-loss and real estate provisioning requirements, as well as better revenue from sales.

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Mayor income statement items by business area


Million euros
  • 7.521
    Net interest income
  • 11.554
    Gross income
  • 5.836
    Operating income
  • 3.046
    Pre-tax profit
  • 2.759
    Net attributable profit
  • 1.982
    Net interest income
  • 3.711
    Gross income
  • 2.208
    Operating income
  • 1.152
    Pre-tax profit
  • 809
    Net attributable profit
  • (14)
    Net interest income
  • (56)
    Gross income
  • (125)
    Operating income
  • (437)
    Pre-tax profit
  • (300)
    Net attributable profit
  • 881
    Net interest income
  • 1.332
    Gross income
  • 449
    Operating income
  • 390
    Pre-tax profit
  • 286
    Net attributable profit
  • 425
    Net interest income
  • 510
    Gross income
  • 289
    Operating income
  • 219
    Pre-tax profit
  • 174
    Net attributable profit
  • 2.734
    Net interest income
  • 3.558
    Gross income
  • 2.248
    Operating income
  • 1.380
    Pre-tax profit
  • 1.041
    Net attributable profit
  • 1.652
    Net interest income
  • 2.297
    Gross income
  • 1.283
    Operating income
  • 927
    Pre-tax profit
  • 474
    Net attributable profit
  • 85
    Net interest income
  • 265
    Gross income
  • 89
    Operating income
  • 66
    Pre-tax profit
  • 43
    Net attributable profit
  • 7.746
    Net interest income
  • 11.617
    Gross income
  • 6.441
    Operating income
  • 3.698
    Pre-tax profit
  • 2.528
    Net attributable profit
  • (225)
    Net interest income
  • (63)
    Gross income
  • (605)
    Operating income
  • (652)
    Pre-tax profit
  • 230
    Net attributable profit

Solvency

BBVA ended the first half of 2015 with comfortable capital levels clearly above the minimum regulatory requirements, and a leverage ratio (fully-loaded) that continues to compare very favorably with the rest of its peer group.

Credit rating agencies

Risks

In the first half of 2015 the main variables related to the Group's credit risk management have been positive. The increase in credit risk and non-performing loans, as well as the performance of the main risk indicators, have been affected by the incorporation of Catalunya Banc. On a comparable basis, the general tone remains positive.

  • The Group's credit risk has increased by 4.2% in the quarter.
  • Non-performing loans amount to €26,369m. Excluding those from Catalunya Banc, this heading declined 3.1% in the quarter to €22,476m.

Digital transformation

BBVA Group had 13.5 million digital customers as of June 2015, a year-on-year increase of 21%. This growth is even bigger (59%) if we focus on the customers who connect with the Bank via their cell phones. Of the new consumer loans granted by BBVA in Spain, 17.9% were arranged through digital channels.

Other matters of interest

The Board of Directors has appointed Carlos Torres Vila as President and COO. It has also approved an organizational structure whose top priority is to boost the business and continue to grow profitably, increasing the number of customers with the focus on their satisfaction. In order to gain market share, customers and business, BBVA is committed to investing in new capabilities associated with customer experience, big data, technology and engineering, marketing and digital sales, and talent and new digital businesses. BBVA has drawn up a new Code of Conduct to adapt to social, technological and regulatory changes. It strengthens the Bank's commitment to its customers, employees and society as a whole.