Financial statements (Millions of euros and percentage)
| Income statement |
Jan.-Sep. 20 |
∆% |
Jan.-Sep. 19 |
| Net interest income |
(103) |
(46.7) |
(193) |
| Net fees and commissions |
(50) |
(19.1) |
(61) |
| Net trading income |
175 |
n.s. |
(53) |
| Other operating income and expenses |
2 |
n.s. |
(0) |
| Gross income |
26 |
n.s. |
(308) |
| Operating expenses |
(610) |
(15.0) |
(718) |
| Personnel expenses |
(358) |
(15.7) |
(425) |
| Other administrative expenses |
(107) |
(29.7) |
(153) |
| Depreciation |
(144) |
2.9 |
(140) |
| Operating income |
(584) |
(43.0) |
(1,025) |
| Impairment on financial assets not measured at fair value through profit or loss |
- |
- |
- |
| Provisions or reversal of provisions and other results |
(2,316) |
n.s. |
(64) |
| Profit/(loss) before tax |
(2,900) |
166.3 |
(1,089) |
| Income tax (1) |
201 |
(1.0) |
203 |
| Profit/(loss) for the year |
(2,699) |
204.6 |
(886) |
| Non-controlling interests |
(0) |
(99.2) |
(5) |
| Net attributable profit (1) |
(2,699) |
202.9 |
(891) |
| Of which: |
|
|
|
| Goodwill impairment in the United States |
(2,084) |
|
|
| Net attributable profit excluding the goodwill impairment in the United States |
(615) |
(31.0) |
(891) |
| Balance sheets |
30-09-20 |
∆% |
31-12-19 |
| Cash, cash balances at central banks and other demand deposits |
771 |
(7.7) |
836 |
| Financial assets designated at fair value |
1,444 |
(41.2) |
2,458 |
| Of which: Loans and advances |
- |
- |
- |
| Financial assets at amortized cost |
1,944 |
(21.6) |
2,480 |
| Of which: Loans and advances to customers |
279 |
(65.7) |
813 |
| Inter-area positions |
16,721 |
(22.1) |
21,477 |
| Tangible assets |
2,121 |
(5.3) |
2,240 |
| Other assets |
17,793 |
(12.8) |
20,394 |
| Total assets/liabilities and equity |
40,795 |
(18.2) |
49,886 |
| Financial liabilities held for trading and designated at fair value through profit or loss |
26 |
88.5 |
14 |
| Deposits from central banks and credit institutions |
861 |
20.0 |
718 |
| Deposits from customers |
298 |
(3.3) |
308 |
| Debt certificates |
8,232 |
6.0 |
7,764 |
| Inter-area positions |
- |
- |
- |
| Other liabilities |
7.498 |
(26.1) |
10,148 |
| Economic capital allocated |
(24,641) |
2.7 |
(23,989) |
| Shareholders' funds |
48,522 |
(11.7) |
54,925 |
The Corporate Center registered a net attributable loss of €2,699m, accumulated from January to September 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 €175m, mainly from gains in foreign-exchange rate hedging, which compares very positively to the €-53m registered in the first nine months of 2019.
- Other operating income and expenses includes mainly the dividends from Telefónica, S.A., as well as the income from companies accounted for by the equity method.
- Containment of the operating expenses, which decreased by 15.0% year-on-year, both for personnel expenses (mainly 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.
