Corporate Center
Financial statements (Millions of euros and percentage)
| Income statement | 2020 | ∆% | 2019 |
|---|---|---|---|
| Net interest income | (149) | (36.0) | (233) |
| Net fees and commissions | (59) | (18.6) | (73) |
| Net trading income | 104 | n.s. | (54) |
| Other operating income and expenses | 47 | 119.8 | 21 |
| Gross income | (57) | (83.1) | (339) |
| Operating expenses | (819) | (14.3) | (955) |
| Personnel expenses | (494) | (16.4) | (591) |
| Other administrative expenses | (131) | (24.5) | (173) |
| Depreciation | (194) | 1.7 | (190) |
| Operating income | (876) | (32.3) | (1,294) |
| Impairment on financial assets not measured at fair value through profit or loss | 4 | n.s. | (0) |
| Provisions or reversal of provisions and other results | (289) | 77.1 | (163) |
| Profit/(loss) before tax | (1,160) | (20.4) | (1,457) |
| Income tax | 305 | 18.1 | 258 |
| RProfit/(loss) after tax | (856) | (28.6) | (1,199) |
| Goodwill impairment in the United States and corporate operations (1) | (1,780) | 35.0 | (1,318) |
| Profit/(loss) for the year | (2,635) | 4.7 | (2,517) |
| Non-controlling interests | 0 | (61.3) | 0 |
| Net attributable profit/(loss) | (2,635) | 4.7 | (2,517) |
| Net attributable profit/(loss) excluding the goodwill impairment in the United States and corporate operations (1) | (856) | (28.6) | (1,199) |
- (1) Include the net capital gain from the sale to Allianz the half plus one share of the company created to jointly develop the non-life insurance business in Spain, excluding the health insurance line.
| Balance sheets | 31-12-20 | ∆% | 31-12-19 |
|---|---|---|---|
| Cash, cash balances at central banks and other demand deposits | 818 | (2,2) | 836 |
| Financial assets designated at fair value | 1,457 | (40.7) | 2,458 |
| Of which: Loans and advances | - | - | - |
| Financial assets at amortized cost | 2,095 | (15.5) | 2,480 |
| Of which: Loans and advances to customers | 503 | (38,1) | 813 |
| Inter-area positions | 17,536 | (18.4) | 21,477 |
| Tangible assets | 2,063 | (7.9) | 2,240 |
| Other assets | 17,705 | (13.2) | 20,394 |
| Total assets/liabilities and equity | 41,674 | (16.5) | 49,886 |
| Financial liabilities held for trading and designated at fair value through profit or loss | 20 | 48,3 | 14 |
| Deposits from central banks and credit institutions | 820 | 14,3 | 718 |
| Deposits from customers | 363 | 17,8 | 308 |
| Debt certificates | 8,179 | 5.4 | 7,764 |
| Inter-area positions | - | - | - |
| Other liabilities | 7,266 | (28.4) | 10,148 |
| Economic capital allocated | (24,995) | 4.2 | (23,989) |
| Total equity | 50,020 | (8.9) | 54,925 |
The Corporate Center registered a cumulative net attributable loss of €2,635m in 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. This attributable loss also includes the result of corporate operations for the net capital gain, of €304m, recorded in the last quarter of 2020 due to the materialization of the agreement with Allianz. For its part, 2019 reflected the goodwill impairment in the United States that amounted to €-1,318m euros at the net attributable loss level, mainly due to the evolution of interest rates in the country and the slowdown in the economy in the fourth quarter of 2019. The Corporate Center’s net attributable loss, excluding the goodwill impairment in the United States and the result of corporate operations in 2020, stood at €-856m, 28.6% better than in 2019, equally excluding the goodwill impairment in the United States.
The most relevant aspects of the income statement evolution are:
- The net interest income increased by 36.0% due to the lower financing costs.
- The NTI recorded €104m, mainly from gains in foreign-exchange rate hedging, which compares very positively to the €-54m registered in 2019.
- Other operating income and expenses include mainly the dividends from Telefónica, S.A., as well as the income from the consolidated companies accounted for by the equity method.
- Containment of the operating expenses, which decreased by 14.3% year-on-year, both for personnel expenses (mainly variable remuneration) and for general expenses.