Financial statements (Millions of euros and percentage)
| Income statement |
1Q20 |
∆% |
1Q19 |
| Net interest income |
(41) |
(41.3) |
(71) |
| Net fees and commissions |
(9) |
(43.3) |
(15) |
| Net trading income |
179 |
n.s. |
(7) |
| Other operating income and expenses |
(19) |
30.9 |
(14) |
| Gross income |
111 |
n.s. |
(107) |
| Operating expenses |
(208) |
(12.9) |
(239) |
| Personnel expenses |
(117) |
(12.2) |
(133) |
| Other administrative expenses |
(44) |
(30.1) |
(63) |
| Depreciation |
(48) |
10.0 |
(43) |
| Operating income |
(98) |
(71.8) |
(346) |
| Impairment on financial assets not measured at fair value through profit or loss |
(0) |
(95.8) |
(1) |
| Provisions or reversal of provisions and other results |
(2,109) |
n.s. |
(23) |
| Profit/(loss) before tax |
(2,207) |
n.s. |
(370) |
| Income tax (1) |
41 |
(60.1) |
102 |
| Profit/(loss) for the year |
(2,166) |
n.s. |
(268) |
| Non-controlling interests |
- |
- |
- |
| Net attributable profit (1) |
(2,166) |
n.s. |
(268) |
| Of which: |
|
|
|
| Goodwill impairment in the United States |
(2,084) |
|
|
| Net attributable profit excluding the goodwill impairment in the United States |
(82) |
(69.4) |
(268) |
| Balance sheets |
31-03-20 |
∆% |
31-12-19 |
| Cash, cash balances at central banks and other demand deposits |
767 |
(8.2) |
836 |
| Financial assets designated at fair value |
1,967 |
(20.0) |
2,458 |
| Of which: Loans and advances |
- |
- |
- |
| Financial assets at amortized cost |
2,052 |
(17.3) |
2,480 |
| Of which: Loans and advances to customers |
353 |
(56.5) |
813 |
| Inter-area positions |
15,433 |
(28.1) |
21,477 |
| Tangible assets |
2,177 |
(2.8) |
2,240 |
| Other assets |
18,831 |
(7.7) |
20,394 |
| Total assets/liabilities and equity |
41,227 |
(17.4) |
49,886 |
| Financial liabilities held for trading and designated at fair value through profit or loss |
93 |
n.s. |
14 |
| Deposits from central banks and credit institutions |
851 |
18.5 |
718 |
| Deposits from customers |
323 |
4,9 |
308 |
| Debt certificates |
7,169 |
(7.7) |
7,764 |
| Inter-area positions |
- |
- |
- |
| Other liabilities |
8,937 |
(11.9) |
10,148 |
| Economic capital allocated |
(25,320) |
5.5 |
(23,989) |
| Shareholders' funds |
49,174 |
(10.5) |
54,925 |
The Corporate Center registered a net attributable loss of €2,166m in the first quarter of 2020, due to the goodwill impairment in the United States of €2,084m in the same quarter which is fundamentally caused by the negative impact of the adjustment of the macroeconomic scenario due to COVID-19. The most relevant aspects about the evolution of the area are:
- The net interest income reflects lower financing costs.
- The NTI recorded €179m mainly from gains in foreign-exchange rate hedging, which compares very positively to the €-7m of the first quarter of 2019.
- Containment of operating expenses, which decreased by 12.9% year-on-year, both for personnel expenses (mainly for variable remuneration) and for general expenses.
- Provisions or reversal of provisions and other results include in the first quarter of 2020 the goodwill impairment in the United States.
