Corporate Center
The Corporate Center basically includes the costs of the head offices that have a corporate function; management of structural exchange-rate positions; specific issues of equity instruments to ensure adequate management of the Group's global solvency; portfolios and their corresponding earnings, whose management is not linked to customer relations, such as industrial holdings; certain tax assets and liabilities; funds due to commitments with employees; goodwill and other intangibles. The Corporate Center's income statement has been influenced mainly by:
- Greater contribution from NTI than in the same period last year, mainly due to the registration of €228m in pre-tax capital gains from the sale of the stake in CNCB (€204m in the first quarter for the sale of 1.7% and €24m in the third quarter for the disposal of the remaining 0.34%).
- Decline in the other income/expenses heading (down 63.9%), very strongly affected by the reduction in the dividend paid by Telefónica in the second quarter of 2017 from €0.4 in the second quarter of 2016 to €0.2 per share.
- Containment of operating expenses, which declined 1.5% year-on-year.
Overall, the Corporate Center posted a cumulative negative result of €654m, compared with a bigger loss of €700m in the same period of 2016.
Financial statements (Million euros. Percentage)
| Income statement | Jan.-Sep. 17 | ∆% | Jan.-Sep. 16 |
|---|---|---|---|
| Net interest income | (274) | (20.2) | (344) |
| Net fees and commissions | (66) | (18.3) | (81) |
| Net trading income | 293 | 18.8 | 247 |
| Other income/expenses | 34 | (63.9) | 95 |
| Gross income | (13) | (84.6) | (83) |
| Operating expenses | (660) | (1.5) | (670) |
| Personnel expenses | (352) | (1.7) | (358) |
| Other administrative expenses | (78) | (10.6) | (87) |
| Depreciation | (230) | 2.4 | (225) |
| Operating income | (673) | (10.7) | (753) |
| Impairment on financial assets (net) | (1) | (96.9) | (26) |
| Provisions (net) and other gains (losses) | (58) | (59.6) | (143) |
| Profit/(loss) before tax | (731) | (20.7) | (922) |
| Income tax | 92 | (59.1) | 224 |
| Profit/(loss) for the year | (640) | (8.3) | (698) |
| Non-controlling interests | (14) | n.s. | (3) |
| Net attributable profit | (654) | (6.6) | (700) |
| Balance sheets | 30-09-17 | ∆% | 31-12-16 |
|---|---|---|---|
| Cash, cash balances at central banks and other demand deposits | 4 | n.s. | (2) |
| Financial assets | 1,772 | 5.7 | 1,675 |
| Loans and receivables | - | - | 130 |
| of which loans and advances to customers | - | - | 130 |
| Inter-area positions | (3,443) | (26.1) | (4,658) |
| Tangible assets | 1,929 | (4.7) | 2,023 |
| Other assets | 15,114 | (20.5) | 19,017 |
| Total assets/liabilities and equity | 15,375 | (15.5) | 18,186 |
| Financial liabilities held for trading and designated at fair value through profit or loss | - | - | - |
| Deposits from central banks and credit institutions | - | - | - |
| Deposits from customers | - | - | - |
| Debt certificates | 8,989 | (14.3) | 10,493 |
| Inter-area positions | (21,668) | 12.8 | (19,217) |
| Other liabilities | 479 | (82.0) | 2,666 |
| Economic capital allocated | (25,179) | (5.2) | (26,559) |
| Shareholders' funds | 52,755 | 3.8 | 50,803 |