Corporate Center
The Corporate Center basically includes the costs of the head offices that have a corporate function; management of structural exchange-rate positions; certain issuances 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 relationships, such as industrial holdings; certain tax assets and liabilities; funds due to commitments with employees; goodwill and other intangibles.
The Corporate Center registered a net attributable loss of €188m during the first nine months of 2018, which positively compares with a loss of €656m in the same period of 2017. By entries, the most relevant are the following:
- Negative contribution from NTI, compared to the capital gains recorded, in the amount of €228m before taxes, from the market sales of the stakes in CNCB (204 million in the first quarter, for the sale of 1.7%, and 24 million in the third quarter for the sale of the remaining 0.34%) registered in the same period of the previous year.
- The result of corporate operations registering capital gains (net of taxes) originated by the sale of approximately 68.2% of the capital stock of BBVA Chile, which amounts to €633m. Excluding this effect, the net attributable profit without corporate operations, amounted to €-821m, representing a 25.2% loss, higher than the amount registered twelve months earlier.
Financial statements (Millions of Euros and percentage)
| IFRS 9 | IAS 39 | |||||
|---|---|---|---|---|---|---|
| Income statement | Jan.-Sep. 18 | ∆% | Jan.-Sep. 17 | |||
| Net interest income | (210) | (23.4) | (274) | |||
| Net fees and commissions | (50) | (24.1) | (66) | |||
| Net trading income | (96) | n.s. | 293 | |||
| Other operating income and expenses | 31 | (10.3) | 34 | |||
| Gross income | (325) | n.s. | (13) | |||
| Operating expenses | (696) | 5.3 | (662) | |||
| Personnel expenses | (374) | 4.1 | (359) | |||
| Other administrative expenses | (158) | 106.8 | (77) | |||
| Depreciation | (164) | (27.3) | (226) | |||
| Operating income | (1,022) | 51.5 | (674) | |||
| Impairment on financial assets not measured at fair value through profit or loss | 0 | n.s. | (1) | |||
| Provisions or reversal of provisions and other results | (55) | (3.9) | (58) | |||
| Profit/(loss) before tax | (1,077) | 47.0 | (733) | |||
| Income tax | 253 | 175.7 | 92 | |||
| Profit/(loss) after tax from ongoing operations | (824) | 28.6 | (641) | |||
| Results from corporate operations (1) | 633 | n.s. | - | |||
| Profit/(loss) for the year | (191) | (70.2) | (641) | |||
| Non-controlling interests | 3 | n.s. | (14) | |||
| Net attributable profit | (188) | (71.4) | (656) | |||
| Net attributable profit excluding results from corporate operations | (821) | 25.2 | (656) | |||
- (1) Includes net capital gains from the sale of BBVA Chile.
| IFRS 9 | IAS 39 | |||||
|---|---|---|---|---|---|---|
| Balance sheets | 30-09-18 | ∆% | 31-12-17 | |||
| Cash, cash balances at central banks and other demand deposits | 73 | n.s. | 5 | |||
| Financial assets designated at fair value | 4,101 | 63.2 | 2,514 | |||
| of which loans and advances | - | - | - | |||
| Financial assets at amortized cost | - | - | - | |||
| of which loans and advances to customers | - | - | - | |||
| Inter-area positions | (4,276) | 185,0 | (1,501) | |||
| Tangible assets | 1,581 | (16.5) | 1,893 | |||
| Other assets | 22,332 | 27.0 | 17,585 | |||
| Total assets/liabilities and equity | 23,811 | 16.2 | 20,497 | |||
| 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 | 9,060 | 3.3 | 8,772 | |||
| Inter-area positions | (16,030) | (2.2) | (16,384) | |||
| Other liabilities | 107 | (75.8) | 443 | |||
| Economic capital allocated | (22,363) | (10.3) | (24,941) | |||
| Shareholders' funds | 53,037 | 0.8 | 52,606 | |||