Balance sheet and business activity

The most relevant aspects related to the evolution of the Group's balance sheet and business activity as of June 30, 2020, are summarized below:

  • Loans and advances to customers (gross) increased compared to the end of the previous year (up 1.5%), with increases mainly in the CIB and commercial portfolios that offset the deleveraging in the rest of the portfolios, thanks to the support programs promoted by the governments in the different geographical areas, especially Spain (ICO lines), Turkey (Credit Guarantee Fund), United States (PPP) and Peru (“Reactiva Perú” Plan).
  • Non-performing loans increased by 2.4% in the second quarter, mainly in Turkey, although it did not reach the levels at the end of 2019.
  • Customer deposits closed the first half 4.7% above December balances, with an increase of 4.4% in the quarter, strongly supported by the good performance of demand deposits (up 9.9% in the semester, up 6.7% in the quarter), where customers have deposited the liquidity available to face the pandemic.
  • Off-balance sheet funds recovered somewhat between April and June and grew by 4.5%, although they continue to show a negative growth rate compared to December (down 6.5%), as a result of the negative performance of the markets caused by COVID-19 during the first quarter of the year.
  • Regarding the intangible assets, during the first quarter of 2020, the United States goodwill was impaired by €2,084m due to the COVID-19 pandemic, which does not affect BBVA Group’s tangible net equity, solvency, or liquidity.

CONSOLIDATED BALANCE SHEET (MILLIONS OF EUROS)

30-06-20 ∆% 31-12-19 30-06-19
Cash, cash balances at central banks and other demand deposits 65,877 48.7 44,303 44,565
Financial assets held for trading 119,332 16.2 102,688 105,369
Non-trading financial assets mandatorily at fair value through profit or loss 4,998 (10.1) 5,557 4,918
Financial assets designated at fair value through profit or loss 1,098 (9.6) 1,214 1,403
Financial assets at fair value through accumulated other comprehensive income 70,045 14.5 61,183 63,364
Financial assets at amortized cost 450,222 2.5 439,162 430,930
Loans and advances to central banks and credit institutions 19,615 9.4 17,924 16,421
Loans and advances to customers 387,212 1.3 382,360 377,155
Debt securities 43,396 11.6 38,877 37,354
Investments in subsidiaries, joint ventures and associates 1,366 (8.2) 1,488 1,638
Tangible assets 9,057 (10.0) 10,068 10,302
Intangible assets 4,623 (33.6) 6,966 8,262
Other assets 27,205 4.4 26,060 26,876
Total assets 753,824 7.9 698,690 697,626
Financial liabilities held for trading 108,624 21.2 89,633 91,358
Other financial liabilities designated at fair value through profit or loss 9,203 (8.1) 10,010 8,922
Financial liabilities at amortized cost 559,713 8.3 516,641 513,937
Deposits from central banks and credit institutions 79,023 44.5 54,700 61,457
Deposits from customers 402,184 4.7 384,219 375,104
Debt certificates 64,421 0.7 63,963 62,685
Other financial liabilities 14,085 2.4 13,758 14,692
Liabilities under insurance and reinsurance contracts 9,462 (10.8) 10,606 10,634
Other liabilities 17,266 2.3 16,875 18,085
Total liabilities 704.269 9.4 643,765 642,936
Total equity 49,555 (9.8) 54,925 54,690
Total liabilities and equity 753,824 7.9 698,690 697,626
Memorandum item:
Guarantees given 44,733 (2.0) 45,952 45,650
  • General note: figures considering the classification of BBVA Paraguay as non-current assets and liabilities held for sale (NCA&L), which are included within the other assets and other liabilities figures, respectively, as of 30-06-20 and 31-12-19.

LOANS AND ADVANCES TO CUSTOMERS (MILLIONS OF EUROS) (1)

30-06-20 ∆% 31-12-19 30-06-19
Public sector 27,265 (3.3) 28,193 29,062
Individuals 166,663 (4.6) 174,608 173,191
Mortgages 106,287 (3.8) 110,500 110,904
Consumer 34,560 (5.2) 36,438 36,413
Credit cards 12,230 (17.9) 14,892 13,928
Other loans 13,586 6.3 12,778 11,946
Business 191,199 8.6 176,008 171,053
Non-performing loans 15,637 (2.0) 15,954 15,999
Loans and advances to customers (gross) 400,764 1.5 394,763 389,306
Allowances (2) (13,552) 9.3 (12,402) (12,151)
Loans and advances to customers 387,212 1.3 382,360 377,155
  • (1) Figures considering the classification of BBVA Paraguay as non-current assets and liabilities held for sale (NCA&L), which are included within the other assets and other liabilities figures of the Group consolidated balance sheet, respectively, as of 30-06-20 and 31-12-19.
  • (2) Allowances include the valuation adjustments for credit risk during the expected residual life of those financial instruments which have been acquired (mainly originated from the acquisition of Catalunya Banc, S.A.). As of June 30, 2020, December 31, 2019 and June 30, 2019 the remaining amount was €399m, €433m and €490m, respectively.

LOANS AND ADVANCES TO CUSTOMERS
(GROSS. BILLIONS OF EUROS)

(1) At constant exchange rates: +6.9%.

CUSTOMER FUNDS
(BILLIONS OF EUROS)



(1) At constant exchange rates: +7.5%.

CUSTOMER FUNDS (MILLIONS OF EUROS) (1)

30-06-20 ∆% 31-12-19 30-06-19
Deposits from customers 402,184 4.7 384,219 375,104
Current accounts 308,212 9.9 280,391 269,010
Time deposits 86,137 (10.8) 96,583 99,693
Other deposits 7,835 8.1 7,246 6,401
Other customer funds 100,813 (6.5) 107,803 103,768
Mutual funds and investment companies 63,237 (7.9) 68,639 65,681
Pension funds 35,664 (2.6) 36,630 34,960
Other off-balance sheet funds 1,912 (24.6) 2,534 3,127
Total customer funds 502,997 2.2 492,022 478,872
  • (1) Figures considering the classification of BBVA Paraguay as non-current assets and liabilities held for sale (NCA&L), which are included within the other assets and other liabilities figures of the Group consolidated balance sheet, respectively, as of 30-06-20 and 31-12-19.