Corporate Center

Financial statements (Millions of euros and percentage)

Income statement 1H19 ∆% 1H18
Net interest income (132) (4.1) (137)
Net fees and commissions (44) 36.6 (32)
Net trading income (74) 27.8 (58)
Other operating income and expenses 13 (65.7) 39
Gross income (236) 25.4 (188)
Operating expenses (482) 11.3 (433)
Personnel expenses (280) 10.4 (254)
Other administrative expenses (111) 50.2 (74)
Depreciation (91) (13.6) (105)
Operating income (718) 15.6 (621)
Impaiment on financial assets not measured at fair value through profit or loss - - -
Provisions or reversal of provisions and other results (44) (43.3) (77)
Profit/(loss) before tax (762) 9.1 (698)
Income tax 156 3.9 150
Profit/(loss) after tax from ongoing operations (606) 10.6 (548)
Results from corporate operations - - -
Profit/(loss) for the year (606) 10.6 (548)
Non-controlling interests (10) 2.4 (10)
Net attributable profit (616) 10.4 (558)
Net attributable profit excluding results from corporate operations (616) 10.4 (558)
Balance sheets 30-06-19 ∆% 31-12-18
Cash. cash balances at central banks and other demand deposits 933 27.4 732
Financial assets designated at fair value 2,615 (4.5) 2,738
Of which: Loans and advances - - -
Financial assets at amortized cost 2,034 (23.7) 2,665
Of which: Loans and advances to customers 349 (64.8) 990
Inter-area positions (18,794) 34.0 (14,026)
Tangible assets 2,232 41.9 1,573
Other assets 21,546 (4.7) 22,598
Total assets/liabilities and equity 10,567 (35.1) 16,281
Financial liabilities held for trading and designated at fair value through profit or loss 16 (60,3) 39
Deposits from central banks and credit institutions 874 19.2 733
Deposits from customers 302 n.s. 36
Debt certificates 6,945 (15.4) 8,212
Inter-area positions (28,822) 26.4 (22,808)
Other liabilities 197 (90.0) 1,975
Economic capital allocated (22,442) 2.8 (21,833)
Shareholders' funds 53,496 7.1 49,927

The Corporate Center registered a net attributable loss of €616m in the first half of 2019, compared to the loss of €558m in the same period of 2018 (up 10.4%). The most relevant results in the first half of the year were:

  • Negative contribution from NTI, mainly due to the solid performance of the Mexican peso, since this line includes results related to exchange rate hedges of the year’s results and those from operations with industrial and financial holdings.
  • Other income/expenses mainly includes the dividends of Telefónica, S.A. and the earnings of the companies accounted for the equity method, including certain investments in companies in the real estate sector. 
  • Operating expenses include those expenses for central functions that are of corporate nature; the year- on- year increase is related to data and cybersecurity costs.
  • Provisions (net) and other gains (losses) decreased 43.3% year-on-year, and includes various expenses such as the Group’s pension contributions and restructuring costs, etc.