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. As of the end of 2018, the area includes the 20% participation that BBVA maintains in Divarian.

Financial statements (Millions of Euros and percentage)

IFRS 9 IAS 39
Income statement 2018 ∆% 2017
Net interest income (276) (22.8) (357)
Net fees and commissions (59) (32.1) (86)
Net trading income (155) n.s. 436
Other operating income and expenses 57 (29.2) 80
Gross income (432) n.s. 73
Operating expenses (920) 3.6 (888)
Personnel expenses (507) 2.4 (496)
Other administrative expenses (199) 106.3 (96)
Depreciation (214) (27.8) (297)
Operating income (1,352) 65.9 (815)
Impairment on financial assets not measured at fair value through profit or loss (2) (99.8) (1,125)
Provisions or reversal of provisions and other results (65) (10.8) (73)
Profit/(loss) before tax (1,420) (29.5) (2,013)
Income tax 290 75.0 166
Profit/(loss) after tax from ongoing operations (1,130) (38.8) (1,847)
Results from corporate operations (1) 633 - -
Profit/(loss) for the year (497) (73.1) (1,847)
Non-controlling interests 3 n.s. (1)
Net attributable profit (494) (73.3) (1,848)
Net attributable profit excluding results from corporate operations (1,127) (39.0) (1,848)
  • (1) Includes net capital gains from the sale of BBVA Chile.
IFRS 9 IAS 39
Balance sheets 31-12-18 ∆% 31-12-17
Cash, cash balances at central banks and other demand deposits 119 n.s. 5
Financial assets designated at fair value 3,304 31.5 2,514
of which loans and advances - - -
Financial assets at amortized cost - - -
of which loans and advances to customers - - -
Inter-area positions (7,314) n.s. (1,501)
Tangible assets 1,567 (17.2) 1,893
Other assets 24,406 38.8 17,585
Total assets/liabilities and equity 22,084 7.7 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 8,874 1.2 8,772
Inter-area positions (15,195) (7.3) (16,384)
Other liabilities 153 (65.5) 443
Economic capital allocated (21,674) (13.1) (24,941)
Shareholders' funds 49,927 (5.1) 52,606

The Corporate Center registered a net attributable loss of €494m during 2018, which positively compares with a loss of €1,848m in 2017. By entries, the most relevant are the following:

  • Negative contribution from NTI, compared to the capital gains recorded, in the amount of €436m before taxes as of the end of 2017, from the market sales of the stakes in CNCB (€204m in the first quarter, for the sale of 1.7%, and €24m in the third quarter for the sale of the remaining 0.34%).
  • Lower impairment on financial assets, as in 2017 this line registered the recognition of impairment losses of €1,123m from BBVA’s stake in Telefónica, S.A.
  • The result of corporate operations includes the capital gains (net of taxes) originated by the sale of BBVA Chile, which amounts to €633m. Excluding this effect, the attributable profit without corporate operations, amounted to -€1,127m, representing a loss 39.0% lower than the amount registered twelve months earlier.