Business areas
Business areas
Spain
€1,506 Mill.*
+2.2%
Millions of euros and year-on-year changes. Balances as of 31-03-20.
Highlights
- Positive evolution in the consumer and corporate banking portfolios in the quarter.
- Year-on-year growth in recurring income.
- Reduction of operating expenses.
- Net attributable profit affected by the significant increase in the impairment on financial assets line.
Results
Net interest income
873Gross income
1,506Operating income
728Net attributable profit
-141Activity (1)
Performing loans and advances to customers under mangement
-0.6%Customers funds under management
-0.3%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes.
The United States
€814 Mill.*
-1.7%
Millions of euros and year-on-year changes at constant exchange rate. Balances as of 31-03-20.
Highlights
- Activity driven by the dynamic performance of the commercial portfolio and corporate banking in the quarter.
- Net interest income affected by the Fed’s rate cuts.
- Good performance of fees and commissions and excellent NTI results.
- Net attributable profit affected by the significant increase in the impairment on financial assets line.
Results
Net interest income
549Gross income
814Operating income
315Net attributable profit
-100Activity (1)
Performing loans and advances to customers under mangement
+10.8%Customers funds under management
+6.1%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes at constant exchange rate.
Mexico
€1,991 Mill.*
+6.0%
Millions of euros and year-on-year changes at constant exchange rate. Balances as of 31-03-20.
Highlights
- Good performance of lending activity, supported by the strength of the wholesale portfolio.
- Positive evolution of customer funds, both demand and time deposits.
- Strong operating income.
- Net attributable profit affected by the significant increase in the impairment on financial assets line.
Results
Net interest income
1,545Gross income
1,991Operating income
1,330Net attributable profit
372Activity (2)
Performing loans and advances to customers under mangement
+14.0%Customers funds under management
+14.1%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(2) Excluding repos.
(1) Year on year changes at constant exchange rate.
Turkey
€1,073 Mill.*
+34.0%
Millions of euros and year-on-year changes at constant exchange rate. Balances as of 31-03-20.
Highlights
- Activity has performed well, in both Turkish lira and US dollars.
- Positive evolution of customer funds, especially from demand deposits.
- Good NTI performance and operating expenses growing below inflation.
- Net attributable profit affected by the significant increase in the impairment on financial assets line.
Results
Net interest income
819Gross income
1,073Operating income
763Net attributable profit
129Activity (1)
Performing loans and advances to customers under mangement
+8.3%Customers funds under management
+16.2%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes at constant exchange rate.
South America
€863 Mill.*
+2.4%
Millions of euros and year-on-year changes at constant exchange rates. Balances as of 31-03-20.
Highlights
- Growth in lending, driven by the wholesale portfolio.
- Year-on-year increase of net interest income.
- Lower contribution from NTI.
- Net attributable profit affected by the increase in the impairment on financial assets line.
Results
Net interest income
763Gross income
863Operating income
473Net attributable profit (3)
70Activity (1)
Performing loans and advances to customers under mangement
+10.4%Customers funds under management
+9.8%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes at constant exchange rates.
Rest of Eurasia
€126 Mill.*
+21.6%
Millions of euros and year-on-year changes. Balances as of 31-03-20.
Highlights
- Good performance of lending activity.
- Increased recurring revenues resulting from positive transactional and investment banking and the good performance of NTI.
- Contained growth of operating expenses.
- Improved risk indicators.
Results
Net interest income
47Gross income
126Operating income
53Net attributable profit
44Activity (1)
Performing loans and advances to customers under mangement
+22.4%Customers funds under management
+2.9%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes.
* Gross income
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 the first quarter of 2020, BBVA Group’s business areas reporting structure basically continued to be the same as the one presented at the end of 2019. BBVA Group's business areas are summarized below:
- Spain mainly includes the banking and insurance businesses that the Group carries out in this country.
- The United States includes the business in BBVA USA and the activity of the BBVA, S.A. branch in New York.
- Mexico includes banking and insurance businesses in this country, as well as the activity that BBVA Mexico carries out through its branch in Houston.
- Turkey reports the activity of the group Garanti BBVA that is mainly carried out in this country and, to a lesser extent, in Romania and the Netherlands.
- South America basically includes banking and insurance businesses in the region. With respect to the agreement reached with Banco GNB Paraguay, S.A., for the sale of BBVA Paraguay, the closing of the transaction is subject to obtaining the regulatory authorizations from the competent authorities.
- Rest of Eurasia includes the banking business activity carried out in Asia and in Europe, excluding Spain.
The Corporate Center contains the centralized functions of the Group, 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 business carried out by BBVA, 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 area is based on units at the lowest level and/or companies that comprise the 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, in Turkey and CIB, the results of applying constant exchange rates are given as well as the year-on-year variations at current exchange rates.
Main 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 | |
| 31-03-20 | |||||||||
| Net interest income | 4,556 | 873 | 549 | 1,545 | 819 | 763 | 47 | 4,598 | (41) |
| Gross income | 6,484 | 1,506 | 814 | 1,991 | 1,073 | 863 | 126 | 6,373 | 111 |
| Operating income | 3,566 | 728 | 315 | 1,330 | 763 | 473 | 53 | 3,664 | (98) |
| Profit/(loss) before tax | (1,435) | (196) | (112) | 545 | 340 | 137 | 59 | 772 | (2.207) |
| Net attributable profit | (1,792) | (141) | (100) | 372 | 129 | 70 | 44 | 374 | (2,166) |
| 31-03-19 | |||||||||
| Net interest income | 4,398 | 859 | 615 | 1,500 | 695 | 760 | 40 | 4,469 | (71) |
| Gross income | 6,046 | 1,475 | 804 | 1,902 | 884 | 985 | 104 | 6,153 | (107) |
| Operating income | 3,124 | 661 | 331 | 1,268 | 571 | 606 | 34 | 3,471 | (346) |
| Profit/(loss) before tax | 1,957 | 482 | 160 | 877 | 368 | 417 | 23 | 2,327 | (370) |
| Net attributable profit (2) | 1,182 | 345 | 127 | 627 | 142 | 193 | 16 | 1,450 | (268) |
- General note: as a result of the decision taken by the International Financial Reporting Standards Interpretations Committee (IFRIC) regarding the collecting of interests of written-off financial assets for the purpose of IFRS 9, those collections are presented as reduction of the credit allowances and not as a higher interest income, recognition method applied until December 2019. Therefore, and in order to make the information comparable, the quarterly information of the 2019 income statements has been restated.
Gross income (1)and operating income (1) breakdown
(Percentage. 1Q20)
(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 | NCA&L(1) | |
| 31-03-20 | |||||||||||
| Loans and advances to customers |
382,592 | 168,342 | 69,619 | 50,484 | 39,916 | 34,202 | 22,248 | 384,811 | 353 | (1,362) | (1,211) |
| Deposits from customers | 385,050 | 186,327 | 70,917 | 49,072 | 41,058 | 35,949 | 5,138 | 388,462 | 323 | (2,227) | (1,509) |
| Off-balance sheet funds | 96,438 | 58,528 | - | 20,617 | 3,863 | 12,935 | 495 | 96,438 | - | - | - |
| Total assets/ liabilities and equity | 730,923 | 413,193 | 99,077 | 104,201 | 63,504 | 54,772 | 26,543 | 761,290 | 41,227 | (71,593) | - |
| APRs | 368,654 | 110,929 | 68,765 | 53,522 | 59,163 | 44,876 | 18,878 | 356,134 | 12,520 | - | - |
| 31-12-19 | |||||||||||
| Loans and advances to customers |
382,360 | 167,332 | 63,162 | 58,081 | 40,500 | 35,701 | 19,669 | 384,445 | 813 | (1,692) | (1,205) |
| Deposits from customers | 384,219 | 182,370 | 67,525 | 55,934 | 41,335 | 36,104 | 4,708 | 387,976 | 308 | (2,598) | (1,467) |
| Off-balance sheet funds | 107,803 | 66,068 | - | 24,464 | 3,906 | 12,864 | 500 | 107,803 | - | - | - |
| Total assets/ liabilities and equity | 698,690 | 365,380 | 88,529 | 109,079 | 64,416 | 54,996 | 23,257 | 705,656 | 49,886 | (56,852) | - |
| APRs | 364,448 | 104,911 | 65,170 | 59,299 | 56,642 | 45,413 | 17,989 | 349,422 | 15,026 | - | - |
- (1) Non-current assets and liabilities held for sale (NCA&L) from the BBVA Paraguay.
The balance sheet includes a column, which represents the deletions and balance sheet adjustments between the different business areas, especially in terms of the relationship between the areas in which the parent company operates, i.e. Spain, Rest of Eurasia, the United States and the Corporate Center.