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.