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 results, 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 by the recognition of the impairment losses of €1,123m from BBVA's stake from Telefónica, S.A.
- Greater contribution from NTI than last year, mainly due to the recording 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%). In 2016 there was also a sale of 0.75% in the third quarter with lower capital gains.
- Reduction in the other income/expenses heading (down 54.5% year-on-year), mainly impacted by the cut in the dividend paid by Telefónica.
- Moderation of operating expenses, which remained at similar levels to those of 2016 (up 0.9% year-on-year).
As a result, the Corporate Center had a net attributable loss of €1,844m, which compares with a loss of €794m in 2016. Excluding the effect of the impairment losses in Telefónica, the net attributable loss was €722m.
Financial statements (Million euros. Percentage)
| Income statement | 2017 | ∆% | 2016 |
|---|---|---|---|
| Net interest income | (357) | (21.6) | (455) |
| Net fees and commissions | (86) | (21.2) | (110) |
| Net trading income | 436 | 22.2 | 357 |
| Other income/expenses | 80 | (54.5) | 177 |
| Gross income | 73 | n.s. | (31) |
| Operating expenses | (884) | 0.9 | (876) |
| Personnel expenses | (484) | 0.3 | (483) |
| Other administrative expenses | (97) | 12.7 | (86) |
| Depreciation | (303) | (1.3) | (307) |
| Operating income | (811) | (10.6) | (907) |
| Impairment on financial assets (net) | (1,125) | n.s. | (37) |
| Provisions (net) and other gains (losses) | (73) | (47.3) | (139) |
| Profit/(loss) before tax | (2,009) | 85.4 | (1,084) |
| Income tax | 166 | (43.3) | 293 |
| Profit/(loss) for the year | (1,843) | 133.1 | (791) |
| Non-controlling interests | (1) | (60.0) | (3) |
| Net attributable profit | (1,844) | 132.3 | (794) |
| Balance sheets | 31-12-17 | ∆% | 31-12-16 |
|---|---|---|---|
| Cash, cash balances at central banks and other demand deposits | 5 | n.s. | (2) |
| Financial assets | 2,520 | 50.4 | 1,675 |
| Loans and receivables | - | - | 130 |
| of which loans and advances to customers | 130 | ||
| Inter-area positions | (1,501) | (67.8) | (4,658) |
| Tangible assets | 1,893 | (6.4) | 2,023 |
| Other assets | 17,579 | (7.6) | 19,017 |
| Total assets/liabilities and equity | 20,496 | 12.7 | 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 | 8,772 | (16.4) | 10,493 |
| Inter-area positions | (16,384) | (14.7) | (19,217) |
| Other liabilities | 443 | (83.4) | 2,666 |
| Economic capital allocated | (24,941) | (6.1) | (26,559) |
| Shareholders' funds | 52,606 | 3.5 | 50,803 |