Business areas
Business areas
Spain
Millions of euros and year-on-year changes
Highlights
- Positive trend of activity, especially in high profitable segments.
- Net Interest income affected by lower ALCO contribution and the impact of IFRS 16.
- Significant reduction in operating expenses.
- Continues improvement in Credit risk indicators.
Results
Net interest income
882Gross income
1,497Operating income
683Net attributable profit
345Activity (2)
Performing loans and advances to customers under mangement
+1.8%Customers funds under management
+4.3%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes.
(2) Excluding repos.
The United States
Millions of euros and year-on-year changes at constant exchange rate
Highlights
- Good performance in consumer and commercial segments activity.
- Net interest income increase, main lever of results and of customer spreads.
- Operating expenses growth below the inflation rate, efficiency improvement.
- Net Attributable profit affected by impairment on financial assets associated to the macroeconomic environment, to specific customers and to write-offs in consumer.
Results
Net interest income
615Gross income
804Operating income
331Net attributable profit
127Activity (2)
Performing loans and advances to customers under mangement
+6.6%Customers funds under management
+1.5%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes at constant exchange rate.
(2) Excluding repos.
Mexico
Millions of euros and year-on-year changes at constant exchange rate
Highlights
- Lending growth, supported by commercial, consumer and mortgages.
- Positive trend of net interest income in line with activity.
- Operating expenses influenced by the increase of the contribution to the BBVA Bancomer Foundation.
- Good asset quality indicators
Results
Net interest income
1,500Gross income
1,902Operating income
1,268Net attributable profit
627Activity (2)
Performing loans and advances to customers under mangement
+10.4%Customers funds under management
+7.3%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes at constant exchange rate.
(2) Excluding repos.
Turkey
Millions of euros and year-on-year changes at constant exchange rate
Highlights
- Positive trend in lending.
- Good performance of net interest income, as a result of the inflation-linked bonds performance.
- Operating expenses growth below the inflation rate.
- Net Attributable profit affected by the impairment on financial assets associated to the macroeconomic environment.
Results
Net interest income
695Gross income
884Operating income
571Net attributable profit
142Activity (2)
Performing loans and advances to customers under mangement
+8.5%Customers funds under management
+21.0%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes at constant exchange rate.
(2) Excluding repos.
South America
Millions of euros and year-on-year changes at constant exchange rates
Highlights
- Activity continues to grow at a good pace.
- Good performance of net interest income.
- Net Attributable profit impacted by Argentina's hyperinflation adjustment.
- Positive trend in net attributable profit of the main countries in the region: Argentina, Colombia and Peru.
Results
Net interest income
760Gross income
985Operating income
606Net attributable profit
193Activity (2) (3)
Performing loans and advances to customers under mangement
+7.5%Customers funds under management
+12.2%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes at constant exchange rates.
(2) Excluding repos.
(3) Excluding BBVA Chile as of March 31, 2018.
Rest of Eurasia
Millions of euros and year-on-year changes
Highlights
- Good performance in lending activity.
- Positive trend of operating expenses.
- Net Attributable profit affected by the decline in income in an environment of negative interest rates.
- Improvement in risk indicators.
Results
Net interest income
39Gross income
103Operating income
34Net attributable profit
16Activity (2)
Performing loans and advances to customers under mangement
+20.3%Customers funds under management
-6.5%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes.
(2) Excluding repos.
(1) Gross income. Year-on-year change.
(2) Gross income. Year-on-year change at constant exchange rate.
(3) Gross income. Year-on-year change at constant exchange rates.
Business Areas
Spain (1)
€1,497 Mill
-5.7%
Millions of euros and year-on-year changes
Highlights
- Positive trend of activity, especially in high profitable segments.
- Net Interest income affected by lower ALCO contribution and the impact of IFRS 16.
- Significant reduction in operating expenses.
- Continues improvement in Credit risk indicators.
Results
Net interest income
882Gross income
1,497Operating income
683Net attributable profit
345Activity (2)
Performing loans and advances to customers under mangement
+1.8%Customers funds under management
+4.3%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes.
(2) Excluding repos.
The United States (2)
€804 Mill
+6.3%
Millions of euros and year-on-year changes at constant exchange rate
Highlights
- Good performance in consumer and commercial segments activity.
- Net interest income increase, main lever of results and of customer spreads.
- Operating expenses growth below the inflation rate, efficiency improvement.
- Net Attributable profit affected by impairment on financial assets associated to the macroeconomic environment, to specific customers and to write-offs in consumer.
Results
Net interest income
615Gross income
804Operating income
331Net attributable profit
127Activity (2)
Performing loans and advances to customers under mangement
+6.6%Customers funds under management
+1.5%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes at constant exchange rate.
(2) Excluding repos.
Mexico (2)
€1,902 Mill
+5.3%
Millions of euros and year-on-year changes at constant exchange rate
Highlights
- Lending growth, supported by commercial, consumer and mortgages.
- Positive trend of net interest income in line with activity.
- Operating expenses influenced by the increase of the contribution to the BBVA Bancomer Foundation.
- Good asset quality indicators
Results
Net interest income
1,500Gross income
1,902Operating income
1,268Net attributable profit
627Activity (2)
Performing loans and advances to customers under mangement
+10.4%Customers funds under management
+7.3%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes at constant exchange rate.
(2) Excluding repos.
Turkey (2)
€884 Mill
+15.5%
Millions of euros and year-on-year changes at constant exchange rate
Highlights
- Positive trend in lending.
- Good performance of net interest income, as a result of the inflation-linked bonds performance.
- Operating expenses growth below the inflation rate.
- Net Attributable profit affected by the impairment on financial assets associated to the macroeconomic environment.
Results
Net interest income
695Gross income
884Operating income
571Net attributable profit
142Activity (2)
Performing loans and advances to customers under mangement
+8.5%Customers funds under management
+21.0%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes at constant exchange rate.
(2) Excluding repos.
South America (3)
€985 Mill
+12.4%
Millions of euros and year-on-year changes at constant exchange rates
Highlights
- Activity continues to grow at a good pace.
- Good performance of net interest income.
- Net Attributable profit impacted by Argentina's hyperinflation adjustment.
- Positive trend in net attributable profit of the main countries in the region: Argentina, Colombia and Peru.
Results
Net interest income
760Gross income
985Operating income
606Net attributable profit
193Activity (2) (3)
Performing loans and advances to customers under mangement
+7.5%Customers funds under management
+12.2%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes at constant exchange rates.
(2) Excluding repos.
(3) Excluding BBVA Chile as of March 31, 2018.
Rest of Eurasia (1)
€103 Mill
-17.8%
Millions of euros and year-on-year changes
Highlights
- Good performance in lending activity.
- Positive trend of operating expenses.
- Net Attributable profit affected by the decline in income in an environment of negative interest rates.
- Improvement in risk indicators.
Results
Net interest income
39Gross income
103Operating income
34Net attributable profit
16Activity (2)
Performing loans and advances to customers under mangement
+20.3%Customers funds under management
-6.5%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Year on year changes.
(2) Excluding repos.
(1) Gross income. Year-on-year change.
(2) Gross income. Year-on-year change at constant exchange rate.
(3) Gross income. Year-on-year change at constant exchange rates.
This section presents and analyzes the most relevant aspects of the Group's different business areas. Specifically, for each one of them, it shows a summary of the income statement and balance sheet, the business activity figures and the most significant ratios.
In 2019, BBVA Group’s business areas reporting structure of the BBVA Group's business areas differs from the one presented at the end of the 2018, as a result of the integration of the Non-Core Real Estate business area into Banking Activity in Spain, now reported as “Spain”. In order to make the 2019 information comparable to 2018, the figures for both areas have been reexpressed. BBVA Group's business areas are summarized below:
- Spain mainly includes the banking and insurance businesses that the Group carries out in Spain.
- The United States includes the Group's business activity in the country through BBVA Compass group and BBVA’s New York branch.
- Mexico includes the Group's banking and insurance businesses in this country as well as the activity of BBVA Bancomer’s branch in Houston.
- Turkey reports the activity of Garanti group that is mainly carried out in this country and, to a lesser extent, in Romania and the Netherlands.
- South America basically includes the Group's banking and insurance businesses in the region.
- Rest of Eurasia includes the banking business activity carried out by the Group in Europe, excluding Spain, and in Asia.
The Corporate Center contains the Group’s holding function, including: the costs of the head offices with a corporate function; management of structural exchange rate positions; some equity instruments issuances to ensure an adequate management of the Group's global solvency. It also includes portfolios whose management is not linked to customer relationships, such as industrial holdings; certain tax assets and liabilities; funds due to commitments to employees; goodwill and other intangible assets.
In addition to these geographical breakdowns, supplementary information is provided for the wholesale businesses carried out by BBVA, i.e. Corporate & Investment Banking (CIB), in the countries where it operates. This business is relevant to have a broader understanding of the Group's activity and results due to the important features of the type of customers served, products offered and risks assumed.
The information by business areas is based on units at the lowest level and/or companies that comprise the e Group, which are assigned to the different areas according to the main region or company group in which they carry out their activity.
As usual, in the case of the different business areas in America and Turkey and in CIB, the results of applying constant exchange rates are given as well as the year-on-year variations at current exchange rates.
Major income statement items by business area (Millions of euros)
| Business areas | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| BBVA Group |
Spain | The United States |
Mexico | Turkey | South America |
Rest of Eurasia |
∑ Business areas | Corporate Center and other |
||
| 31-03-19 | ||||||||||
| Net interest income | 4,420 | 822 | 615 | 1,500 | 695 | 760 | 39 | 4,491 | (71) | |
| Gross income | 6,069 | 1,497 | 804 | 1,902 | 884 | 985 | 103 | 6,176 | (107) | |
| Operating income | 3,147 | 683 | 331 | 1,268 | 571 | 606 | 34 | 3,493 | (346) | |
| Profit/(loss) before tax | 1,957 | 482 | 160 | 877 | 368 | 417 | 23 | 2,327 | (370) | |
| Net attributable profit | 1,164 | 345 | 127 | 627 | 142 | 193 | 16 | 1,450 | (286) | |
| 31-03-18 (1) (2) | ||||||||||
| Net interest income | 4,287 | 927 | 524 | 1,317 | 753 | 791 | 43 | 4,355 | (67) | |
| Gross income | 6,026 | 1,588 | 699 | 1,711 | 996 | 1,008 | 126 | 6,127 | (102) | |
| Operating income | 3,050 | 744 | 264 | 1,138 | 641 | 523 | 54 | 3,365 | (314) | |
| Profit/(loss) before tax | 2,170 | 577 | 252 | 782 | 519 | 345 | 71 | 2,546 | (376) | |
| Net attributable profit | 1,290 | 404 | 196 | 567 | 200 | 157 | 48 | 1,572 | (282) | |
- (1) The impact derived from the accounting for hyperinflation in Argentina for the first nine months of 2018 was recorded for the first time in the third quarter of the year, with accounting effects on January 1, 2018. In order to make the 2019 information comparable to 2018, the income statements for the first three quarters of the 2018 fiscal year have been reexpressed to reflect the impacts of inflation on their income and expenses.
- (2) The income statements for 2018 were reexpressed due to changes in the reallocation of some expenses related to global projects and activities between the Corporate Center and the business areas incorporated in 2019.
Gross income (1), operating income (1) and net attributable profit breakdown (1) (Percentage. 1Q19)
(1) Excludes the Corporate Center.
Major balance-sheet items and risk-weighted assets by business area (Millions of euros)
| Business areas | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| BBVA Group |
Spain | The United States |
Mexico | Turkey | South America |
Rest of Eurasia |
∑ Business areas | Corporate Center | Deletions | |
| 31-03-19 | ||||||||||
| Loans and advances to customers |
380,799 | 170,893 | 61,403 | 53,480 | 42,025 | 35,691 | 18,257 | 381,748 | 551 | (1,500) |
| Deposits from customers | 378,527 | 181,723 | 65,165 | 50,904 | 40,544 | 37,236 | 5,065 | 380,638 | 280 | (2,391) |
| Off-balance sheet funds | 103,227 | 64,225 | - | 22,744 | 3,370 | 12,481 | 407 | 103,227 | - | - |
| Total assets/liabilities and equity |
691,200 | 356,552 | 85,160 | 101,738 | 67,130 | 57,031 | 20,582 | 688,193 | 16,075 | (13,068) |
| Risk-weighted assets | 360,689 | 107,935 | 64,969 | 54,794 | 58,526 | 44,964 | 16,004 | 347,191 | 13,498 | - |
| 31-12-18 (1) | ||||||||||
| Loans and advances to customers |
374,027 | 170,438 | 60,808 | 51,101 | 41,478 | 34,469 | 16,598 | 374,893 | 990 | (1,857) |
| Deposits from customers | 375,970 | 183,414 | 63,891 | 50,530 | 39,905 | 35,842 | 4,876 | 378,456 | 36 | (2,523) |
| Off-balance sheet funds | 98,150 | 62,559 | - | 20,647 | 2,894 | 11,662 | 388 | 98,150 | - | - |
| Total assets/liabilities and equity |
676,689 | 354,901 | 82,057 | 97,432 | 66,250 | 54,373 | 18,834 | 673,848 | 16,281 | (13,440) |
| Risk-weighted assets | 348,264 | 104,125 | 64,175 | 53,177 | 56,486 | 42,724 | 15,464 | 336,151 | 12,113 | - |
- (1) The impact derived from the accounting for hyperinflation in Argentina for the first nine months of 2018 was recorded for the first time in the third quarter of the year, with accounting effects on January 1, 2018. In order to make the 2019 information comparable to the 2018, the balance sheets of the first three quarters of the 2018 have been reexpressed to reflect the impacts of inflation on their assets and liabilities.
Since 2019, a column has been added, which includes the deletions and balance sheet adjustments between different business areas, especially in terms of the relationship between the areas in which the parent company operates, i.e. Spain, Rest of Eurasia and Corporate Center. In previous years, these deletions were allocated to the different areas, mainly in Banking Activity in Spain. Accordingly, the figures from the previous year have been reexpressed to show comparable series.
Number of employees
Number of branches
Number of ATMs
