Corporate Center
Financial statements (Millions of euros and percentage)
| Income statement | 2019 | ∆% | 2018 |
|---|---|---|---|
| Net interest income | (233) | (13.4) | (269) |
| Net fees and commissions | (73) | 24.0 | (59) |
| Net trading income | (54) | (65.0) | (155) |
| Other operating income and expenses | 21 | (66.1) | 63 |
| Gross income | (339) | (19.3) | (420) |
| Operating expenses | (955) | 9.6 | (871) |
| Personnel expenses | (591) | 12.1 | (527) |
| Other administrative expenses | (173) | 20.3 | (144) |
| Depreciation | (190) | (4.6) | (200) |
| Operating income | (1,294) | 0.2 | (1,291) |
| Impairment on financial assets not measured at fair value through profit or loss | (0) | (98.4) | (2) |
| Provisions or reversal of provisions and other results | (1,481) | n.s. | 830 |
| Profit/(loss) before tax | (2,775) | n.s. | (463) |
| Income tax (1) | 258 | 119.3 | 118 |
| Profit/(loss) for the year (1) | (2,517) | n.s. | (346) |
| Non-controlling interests | 0 | (91.8) | 3 |
| Net attributable profit (1) | (2,517) | n.s. | (343) |
| Of which: | |||
| Goodwill impairment in the United States | (1,318) | ||
| Capital gains from the sale of BBVA Chile | 633 | ||
| Net attributable profit excluding the goodwill impairment in the United States and the capital gains from the sale of BBVA Chile | (1,199) | 22.8 | (976) |
(1) As a result of the amendment to IAS 12 "Income Taxes", and in order to make the information comparable, the 2018 income statement has been restated.
| Balance sheets | 31-12-19 | ∆% | 31-12-18 |
|---|---|---|---|
| Cash. cash balances at central banks and other demand deposits | 836 | 14.2 | 732 |
| Financial assets designated at fair value | 2,458 | (10.2) | 2,738 |
| Of which: Loans and advances | - | - | - |
| Financial assets at amortized cost | 2,480 | (6.9) | 2,665 |
| Of which: Loans and advances to customers | 813 | (17.9) | 990 |
| Inter-area positions | (21,621) | 54.2 | (14,026) |
| Tangible assets | 2,240 | 42.4 | 1,573 |
| Other assets | 20,394 | (9.8) | 22,598 |
| Total assets/liabilities and equity | 6,787 | (58.3) | 16,281 |
| Financial liabilities held for trading and designated at fair value through profit or loss | 14 | (65.1) | 39 |
| Deposits from central banks and credit institutions | 718 | (2.1) | 733 |
| Deposits from customers | 308 | n.s. | 36 |
| Debt certificates | 7,764 | (5.5) | 8,212 |
| Inter-area positions | (32,067) | 40.6 | (22,808) |
| Other liabilities | 56 | (70.5) | 1,917 |
| Economic capital allocated | (23,989) | 9.9 | (21,833) |
| Shareholders' funds | 53,474 | 7.0 | 49,985 |
The Corporate Center recorded a negative net attributable profit of €2,517m in 2019, resulting from the goodwill impairment of the United States for an amount of €1,318m in December 2019. The net attributable profit was a loss of €343m, as it included the net capital gains from the sale of BBVA Chile. In addition, the most significant parts of the change in the 2019 statement was:
- The NTI had a positive year-on-year comparison, as the losses generated in 2019 were lower than those in 2018, mainly due to increased capital gains in the portfolio of industrial and financial holdings.
- Other operating income and expenses primarily include Telefónica, S.A. dividends, as well as the income of companies accounted for by the equity method, including holdings in real estate companies. The positive contribution of this line in 2019 was 66.1% less than in 2018.
- Operating expenses include the expenses from the corporate functions and whose year-on-year increase (+9.6%) is related to the expenses associated with data and cybersecurity.
- The line of provisions or reversal of provisions and other gains (losses) shows, in 2019, the goodwill impairment in the United States, and in 2018, the capital gains generated by the sale of BBVA Chile.