Financial statements (Millions of euros and percentage)
| Income statement |
1H20 |
∆% |
1H19 |
| Net interest income |
(69) |
(47.3) |
(132) |
| Net fees and commissions |
(35) |
(20.9) |
(44) |
| Net trading income |
185 |
n.s. |
(74) |
| Other operating income and expenses |
18 |
32.5 |
13 |
| Gross income |
98 |
n.s. |
(236) |
| Operating expenses |
(406) |
(15.8) |
(482) |
| Personnel expenses |
(232) |
(17.2) |
(280) |
| Other administrative expenses |
(78) |
(29.7) |
(111) |
| Depreciation |
(96) |
5.4 |
(91) |
| Operating income |
(307) |
(57.2) |
(718) |
| Impairment on financial assets not measured at fair value through profit or loss |
- |
- |
- |
| Provisions or reversal of provisions and other results |
(2,193) |
n.s. |
(44) |
| Profit/(loss) before tax |
(2,500) |
228.1 |
(762) |
| Income tax (1) |
85 |
(45.5) |
156 |
| Profit/(loss) for the year |
(2,415) |
298.5 |
(606) |
| Non-controlling interests |
(1) |
(92.4) |
(10) |
| Net attributable profit (1) |
(2,416) |
291.9 |
(616) |
| Of which: |
|
|
|
| Goodwill impairment in the United States |
(2,084) |
|
|
| Net attributable profit excluding the goodwill impairment in the United States |
(332) |
(46.2) |
(616) |
| Balance sheets |
30-06-20 |
∆% |
31-12-19 |
| Cash, cash balances at central banks and other demand deposits |
837 |
0.1 |
836 |
| Financial assets designated at fair value |
1,865 |
(24.1) |
2,458 |
| Of which: Loans and advances |
- |
- |
- |
| Financial assets at amortized cost |
2,087 |
(15.8) |
2,480 |
| Of which: Loans and advances to customers |
425 |
(47.7) |
813 |
| Inter-area positions |
15.676 |
(27.0) |
21.477 |
| Tangible assets |
2.126 |
(5.1) |
2.240 |
| Other assets |
17.953 |
(12.0) |
20.394 |
| Total assets/liabilities and equity |
40.544 |
(18.7) |
49.886 |
| Financial liabilities held for trading and designated at fair value through profit or loss |
26 |
90.3 |
14 |
| Deposits from central banks and credit institutions |
870 |
21.3 |
718 |
| Deposits from customers |
308 |
0.2 |
308 |
| Debt certificates |
7,079 |
(8.8) |
7,764 |
| Inter-area positions |
- |
- |
- |
| Other liabilities |
7,837 |
(22.8) |
10,148 |
| Economic capital allocated |
(25,131) |
4.8 |
(23,989) |
| Shareholders' funds |
49,555 |
(9.8) |
54,925 |
The Corporate Center registered a net attributable loss of €2,416m in the first half of 2020, due to the €2,084m goodwill impairment in the United States in the first quarter of 2020, which was fundamentally caused by the negative impact of the macroeconomic scenario adjustment due to the COVID-19 pandemic. The most relevant aspects of the evolution of the area are:
- The net interest income reflects lower financing costs.
- The NTI recorded €185m, mainly from gains in foreign-exchange rate hedging, which compares very positively to the -€74m in the first half of 2019.
- Other income/expenses primarily related to Telefónica, S.A. dividends, as well as the income from companies accounted for by the equity method.
- Containment of operating expenses, which decreased by 15.8% year-on-year, both for personnel expenses (mainly for variable remuneration) and for general expenses.
- Provisions and other results include the goodwill impairment in the United States booked in the first quarter of 2020.
