Balance sheet and business activity

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

  • Loans and advances to customers (gross) decreased by 4.0% compared to the end of the previous year, with deleveraging in all the portfolios during the quarter. Compared to December 2019, the corporate portfolio still shows a slight growth (up 0.2%), although significantly below that registered in the first half of 2020 (up 8.6%), when a massive accumulation of liquidity, through the different support programs promoted by the governments in the different geographical areas, was materialized. In the retail segment, during the third quarter new credit origination approached pre-pandemic levels.
  • Non-performing loans loans decreased by 0.9% in the third quarter.
  • Customer deposits closed September 2.8% above December balances, strongly supported by the good performance of demand deposits (up 9.8%), where customers have deposited the available liquidity to face the pandemic.
  • Off-balance sheet funds continue to show a negative growth rate compared to December (down 7.2%).
  • Regarding the intangible assets, during the first quarter of 2020 there was an impairment of the goodwill in the United States in the amount of €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)

30-09-20 ∆% 31-12-19 30-09-19
Cash, cash balances at central banks and other demand deposits 72,171 62.9 44,303 40,932
Financial assets held for trading 107,468 4.7 102,688 110,874
Non-trading financial assets mandatorily at fair value through profit or loss 5,147 (7.4) 5,557 5,209
Financial assets designated at fair value through profit or loss 1,117 (8.0) 1,214 1,400
Financial assets at fair value through accumulated other comprehensive income 72,198 18.0 61,183 63,275
Financial assets at amortized cost 427,687 (2.6) 439,162 437,792
Loans and advances to central banks and credit institutions 18,788 4.8 17,924 19,655
Loans and advances to customers 365,605 (4.4) 382,360 378,775
Debt securities 43,293 11.4 38,877 39,363
Investments in subsidiaries, joint ventures and associates 1,241 (16.6) 1,488 1,550
Tangible assets 8,690 (13.7) 10,068 10,208
Intangible assets 4,369 (37.3) 6,966 8,508
Other assets 26,927 3.3 26,060 29,269
Total assets 727,014 4.1 698,690 709,017
Financial liabilities held for trading 95,016 6.0 89,633 92,407
Other financial liabilities designated at fair value through profit or loss 9,382 (6.3) 10,010 9,583
Financial liabilities at amortized cost 548,025 6.1 516,641 518,215
Deposits from central banks and credit institutions 72,745 33.0 54,700 60,554
Deposits from customers 395,132 2.8 384,219 379,333
Debt certificates 67,024 4.8 63,963 63,324
Other financial liabilities 13,124 (4.6) 13,758 15,003
Liabilities under insurance and reinsurance contracts 9,505 (10.4) 10,606 10,834
Other liabilities 16,565 (1.8) 16,875 20,949
Total liabilities 678,493 5.4 643,765 651,988
Non-controlling interests 5,404 (12.8) 6,201 6,299
Accumulated other comprehensive income (14,552) 42.3 (10,226) (9,143)
Shareholders’ funds 57,669 (2.2) 58,950 59,873
Total equity 48,522 (11.7) 54,925 57,029
Total liabilities and equity 727,014 4.1 698,690 709,017
Memorandum item:
Guarantees given 42,805 (6.2) 45,952 45,655
  • 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.

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

30-09-20 ∆% 31-12-19 30-09-19
Public sector 25,199 (10.6) 28,193 27,782
Individuals 162,028 (7.2) 174,608 173,744
Mortgages 104,112 (5.8) 110,500 110,956
Consumer 33,580 (7.8) 36,438 35,144
Credit cards 12,057 (19.0) 14,892 14,469
Other loans 12,279 (3.9) 12,778 13,176
Business 176,359 0.2 176,008 173,410
Non-performing loans 15,433 (3.3) 15,954 16,337
Loans and advances to customers (gross) 379,018 (4.0) 394,763 391,273
Allowances (2) (13,413) 8.1 (12,402) (12,499)
Loans and advances to customers 365,605 (4.4) 382,360 378,775
  • (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.
  • (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 September 30, 2020, December 31, 2019 and September 30, 2019 the remaining amount was €382m, €433m and €462m, respectively.

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

(1) At constant exchange rates: +4.2%.

CUSTOMER FUNDS
(BILLIONS OF EUROS)



(1) At constant exchange rates: +8.7%.

CUSTOMER FUNDS (MILLIONS OF EUROS) (1)

30-09-20 ∆% 31-12-19 30-09-19
Deposits from customers 395,132 2.8 384,219 379,333
Current accounts 307,790 9.8 280,391 272,729
Time deposits 79,866 (17.3) 96,583 100,147
Other deposits 7,476 3.2 7,246 6,457
Other customer funds 100,040 (7.2) 107,803 105,826
Mutual funds and investment companies 62,912 (8.3) 68,639 66,748
Pension funds 35,393 (3.4) 36,630 36,179
Other off-balance sheet funds 1,735 (31.5) 2,534 2,899
Total customer funds 495,171 0.6 492,022 485,159
  • (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.