Rest of Eurasia

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.

Income statement	1Q20	∆%	1Q19
Net interest income	47	19.3	40
Net fees and commissions	40	12.9	36
Net trading income	36	36.2	27
Other operating income and expenses	2	32.2	2
Gross income	126	21.6	104
Operating expenses	(73)	3.9	(70)
Personnel expenses	(36)	6.9	(34)
Other administrative expenses	(32)	1.2	(32)
Depreciation	(4)	1.4	(4)
Operating income	53	58.4	34
Impaiment on financial assets not measured at fair value through profit or loss	6	n.s.	(10)
Provisions or reversal of provisions and other results	(0)	(35.2)	(1)
Profit/(loss) before tax	59	160.6	23
Income tax	(15)	125.8	(7)
Profit/(loss) for the year	44	175.3	16
Non-controlling interests	-	-	-
Net attributable profit	44	175.3	16

Balance sheets	31-03-20	∆%	31-12-19
Cash, cash balances at central banks and other demand deposits	287	16.2	247
Financial assets designated at fair value	511	7.1	477
Of which: Loans and advances	-	-	-
Financial assets at amortized cost	25,415	14.3	22,233
Of which: Loans and advances to customers	22,248	13.1	19,669
Inter-area positions	-	-	-
Tangible assets	69	(4.3)	72
Other assets	261	14.7	228
Total assets/liabilities and equity	26,543	14.1	23,257
Financial liabilities held for trading and designated at fair value through profit or loss	44	(23.1)	57
Deposits from central banks and credit institutions	792	(23.7)	1,039
Deposits from customers	5,138	9.1	4,708
Debt certificates	807	(3.8)	838
Inter-area positions	18,449	20.2	15,351
Other liabilities	399	0.1	399
Economic capital allocated	913	5.7	864

Relevant business indicators	31-03-20	∆%	31-12-19
Performing loans and advances to customers under management ⁽¹⁾	22,307	13.4	19,663
Non-performing loans	276	(21.0)	350
Customer deposits under management ⁽¹⁾	5,138	9.1	4,708
Off-balance sheet funds ⁽²⁾	495	(1.1)	500
Risk-weighted assets	18,878	4.9	17,989
Efficiency ratio (%)	57.7		64.6
NPL ratio (%)	0.9		1.2
NPL coverage ratio (%)	121		98
Cost of risk (%)	(0.12)		0.02

⁽¹⁾ Excluding repos.

⁽²⁾ No incluye las cesiones temporales de activos.

⁽³⁾ Includes mutual funds, pension funds and other off-balance sheet funds.

The most relevant aspects of the activity and results in the area in the first quarter of 2020 were:

Lending activity (performing loans under management) grew by 13.4% during the first quarter of the year.
Asset quality indicators improved compared to the end of 2019: the NPL ratio and NPL coverage ratio closed at 0.9% and 121%, respectively, as of March 31, 2020.
Customer deposits under management increased by 9.1% in the first quarter of 2020, supported by the good evolution of both demand deposits and time deposits.
In terms of results, income of a more recurring nature registered a year-on-year increase of 16.2% due to the positive performance of both net interest income (up 19.3% year-on-year) and net fees and commissions (up 12.9% year-on-year), supported by transactional banking and investment and finance banking. The NTI line increased (up 36.2% year-on-year) from the Global Markets activity. Contained growth of operating expenses (up 3.9% year-on-year).
The impairment on financial assets line presented releases of €6m in the quarter for lower loan-loss provisions and includes the impacts recognized as a consequence of the deterioration of the macroeconomic scenario caused by COVID-19 which amounted to €2m. As a result, the area's net attributable profit in the first quarter of 2020 stood at €44m (up 175.3% year-on-year).