Business areas
Spain
€5,554 Mill.*
-1.8%
Year on year changes. Balances as of 31-12-20.
Highlights
- Activity growth driven by corporate and investment banking operations and government support programs.
- Improved efficiency ratio, driven by controlled operating expenses.
- Risk indicators contained.
- Net attributable profit affected by the level of impairment on financial assets.
Results
Net interest income
3,553Gross income
5,554Operating income
2,515Net attributable profit
606Activity (1)
Performing loans and advances to customers under mangement
+0.8%Customers funds under management
+8.1%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes.
The United States
€3,152 Mill.*
0.0%
Year on year changes. Balances as of 31-12-20.
Highlights
- Flat lending activity and strong increase in customer deposits in the year.
- The cost of risk favorable evolution continues, with a significant improvement in the quarter.
- Positive evolution of fees and commissions and NTI.
- Net attributable profit impacted by the Fed rate reduction and the significant increase in the impairment on financial assets line.
Results
Net interest income
2,284Gross income
3,152Operating income
1,281Net attributable profit
429Activity (1)
Performing loans and advances to customers under mangement
0.0%Customers funds under management
+13.1%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes at constant exchange rate.
Mexico
€7,017 Mill.*
-0.5%
Year on year changes. Balances as of 31-12-20.
Highlights
- Slight deceleration of activity, impacted by the macroeconomic environment.
- Solid liquidity position.
- Controlled expenses growing significatively under the inflation and the strength of the gross income.
- Net attributable profit affected by the significant increase in the impairment on financial assets line.
Results
Net interest income
5,415Gross income
7,017Operating income
4,677Net attributable profit
1,759Activity (2)
Performing loans and advances to customers under mangement
-1.0%Customers funds under management
+10.0%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(2) Excluding repos.
(1) Year on year changes at constant exchange rate.
Turkey
€3,573 Mill.*
+26.0%
Year on year changes. Balances as of 31-12-20.
Highlights
- Significant credit growth driven by Turkish lira loans. Strong growth in foreign currency deposits.
- Outstanding performance of recurring revenue and efficiency ratio improvement.
- Reduction in the NPL ratio year-to date.
- Double digit growth in the main income statement margins.
Results
Net interest income
2,783Gross income
3,573Operating income
2,544Net attributable profit
563Activity (1)
Performing loans and advances to customers under mangement
+25.9%Customers funds under management
+28.9%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes at constant exchange rate.
South America
€3,225 Mill.*
+1.7%
Year on year changes. Balances as of 31-12-20.
Highlights
- Activity growth impacted by the support measures from the different governments.
- Year-on-year growth in recurring revenues and year-on-year decline in NTI due to the sale of the stake in Prisma in 2019.
- Contained growth in expenditure, well below the area's average inflation.
- Net attributable profit affected by the increase in the impairment on financial assets line.
Results
Net interest income
2,701Gross income
3,225Operating income
1,853Net attributable profit (3)
446Activity (1)
Performing loans and advances to customers under mangement
+12.6%Customers funds under management
+22.5%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes at constant exchange rates.
Rest of Eurasia
€510 Mill.*
+12.3%
Year on year changes. Balances as of 31-12-20.
Highlights
- Activity mainly affected by the loans amortizations made during the second half of the year.
- Contained risk indicators.
- Increased recurring income and good performance of NTI.
- Reduction of operating expenses.
Results
Net interest income
214Gross income
510Operating income
225Net attributable profit
137Activity (1)
Performing loans and advances to customers under mangement
-3.8%Customers funds under management
-1.2%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year on year changes.
* Gross income
This section presents and analyzes the most relevant aspects of the Group's different business areas. Specifically, for each one of them, it shows a summary of the income statement and balance sheet, the business activity figures and the most significant ratios.
At the end of 2020, BBVA Group’s business areas reporting structure continued to be the same as the one presented at the end of 2019, although BBVA has reached agreements that, in some cases, could affect that structure. BBVA Group's business areas and the agreements reached in relation to some of them are summarized below:
- Spain mainly includes the banking and insurance businesses that the Group carries out in this country. In relation to the agreement reached in April 2020 with Allianz to create a bancassurance alliance, by setting up a newly created insurance company, once the authorizations from the competent regulators had been received, on December 14, 2020. BBVA Seguros transferred half plus one share from the aforementioned company to Allianz. The results from this new company are included in this business area.
- The United States incorporates the businesses of BBVA USA, including the Group´s wholesale business through the New York branch office, the stake in Propel Venture Partners and the broker dealer BBVA Securities Inc business, all of which are excluded from the sale agreement reached with PNC. In relation to said agreement (for more information, see the chapter “Highlights” of this report), it includes BBVA USA and other companies in the United States with activities related to this banking business. Likewise, in accordance with IFRS 8 “Operating Segments”, the information for this business area is provided for the financial years 2020 and 2019, including the companies subject to the sale agreement, whose closing is subject to obtaining regulatory authorizations from the competent authorities.
- Mexico includes banking and insurance businesses in this country, as well as the activity that BBVA Mexico carries out through its branch in Houston.
- Turkey reports the activity of the group Garanti BBVA that is mainly carried out in this country and, to a lesser extent, in Romania and the Netherlands.
- South America mainly includes banking and insurance activity carried out in the region. With respect to the agreement reached with Banco GNB Paraguay, S.A., for the sale of BBVA Paraguay, the closing of the transaction materialized on January 22, 2021, once the approval of the competent regulatory authorities was received. The information in this business area includes BBVA Paraguay at the end of December 2020 and 2019.
- Rest of Eurasia includes the banking business activity carried out in Asia and in Europe, excluding Spain.
The Corporate Center contains the centralized functions of the Group, including: the costs of the head offices with a corporate function; management of structural exchange rate positions; some equity instrument issuances to ensure an adequate management of the Group's global solvency. It also includes portfolios whose management is not linked to customer relationships, such as industrial holdings; certain tax assets and liabilities; funds due to commitments to employees; goodwill and other intangible assets.
In addition to these geographical breakdowns, supplementary information is provided for the wholesale business carried out by BBVA, Corporate & Investment Banking (CIB), in the countries where it operates. This business is relevant to have a broader understanding of the Group's activity and results due to the important features of the type of customers served, products offered and risks assumed.
The information by business area is based on units at the lowest level and/or companies that comprise the Group, which are assigned to the different areas according to the main region or company group in which they carry out their activity.
As usual, in the case of the different business areas in Americas, in Turkey and in CIB, the results applying constant exchange rates are given as well as the year-on-year variations at current exchange rates.
Main income statement line items by business area (Millions of euros)
| Business areas | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| BBVA Group |
Spain | The United States |
Mexico | Turkey | South America |
Rest of Eurasia |
∑ Business areas | Corporate Center | |
| 31-12-20 | |||||||||
| Net interest income | 16,801 | 3,553 | 2,284 | 5,415 | 2,783 | 2,701 | 214 | 16,950 | (149) |
| Gross income | 22,974 | 5,554 | 3,152 | 7,017 | 3,573 | 3,225 | 510 | 23,031 | (57) |
| Operating income | 12,219 | 2,515 | 1,281 | 4,677 | 2,544 | 1,853 | 225 | 13,094 | (876) |
| Profit/(loss) before tax | 5,225 | 809 | 502 | 2,472 | 1,522 | 896 | 184 | 6,386 | (1,160) |
| Net attributable profit/(loss) | 1,305 | 606 | 429 | 1,759 | 563 | 446 | 137 | 3,940 | (2,635) |
| 31-12-19 | |||||||||
| Net interest income | 18,124 | 3,567 | 2,395 | 6,209 | 2,814 | 3,196 | 175 | 18,357 | (233) |
| Gross income | 24,463 | 5,656 | 3,223 | 8,029 | 3,590 | 3,850 | 454 | 24,802 | (339) |
| Operating income | 12,561 | 2,402 | 1,257 | 5,384 | 2,375 | 2,276 | 161 | 13,855 | (1,294) |
| Profit/(loss) before tax | 7,716 | 1,878 | 705 | 3,691 | 1,341 | 1,396 | 163 | 9,173 | (1,457) |
| Net attributable profit/(loss) | 3,512 | 1,386 | 590 | 2,699 | 506 | 721 | 127 | 6,029 | (2,517) |
- General note: as a result of the interpretation issued by the International Financial Reporting Standards Interpretations Committee (IFRIC) regarding the collecting of interests of written-off financial assets for the purpose of IFRS 9, those collections are presented as reduction of the credit allowances and not as a higher interest income, recognition method applied until December 2019. Therefore, and in order to make the information comparable, the information of the 2019 income statements has been restated.
GROSS INCOME(1), OPERATING INCOME(1) AND NET ATTRIBUTABLE PROFIT(1) BREAKDOWN (PERCENTAGE. 2020)
(1) Excludes the Corporate Center.
Major balance-sheet items and risk-weighted assets by business area (Millions of euros)
| Business areas | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| BBVA Group |
Spain | The United States |
Mexico | Turkey | South America |
Rest of Eurasia |
∑ Business areas | Corporate Center | Deletions | ||
| 31-12-20 | |||||||||||
| Loans and advances to customers |
365,006 | 167,998 | 57,983 | 50,002 | 37,295 | 33,615 | 18,908 | 365,801 | 503 | (1,299) | |
| Deposits from customers | 409,122 | 206,428 | 69,923 | 54,052 | 39,353 | 36,874 | 4,578 | 411,208 | 363 | (2,449) | |
| Off-balance sheet funds | 102,947 | 62,707 | - | 22,524 | 3,425 | 13,722 | 569 | 102,947 | - | - | |
| Total assets/ liabilities and equity | 736,258 | 405,981 | 93,953 | 110,204 | 59,585 | 55,435 | 22,881 | 748,040 | 41,674 | (53,455) | |
| APRs | 353,272 | 104,388 | 60,365 | 60,797 | 53,021 | 39,804 | 18,249 | 336,624 | 16,648 | - | |
| 31-12-19 | |||||||||||
| Loans and advances to customers |
383,565 | 167,332 | 63,162 | 58,081 | 40,500 | 35,701 | 19,669 | 384,445 | 813 | (1,692) | |
| Deposits from customers | 385,686 | 182,370 | 67,525 | 55,934 | 41,335 | 36,104 | 4,708 | 387,976 | 308 | (2,598) | |
| Off-balance sheet funds | 107,803 | 66,068 | - | 24,464 | 3,906 | 12,864 | 500 | 107,803 | - | - | |
| Total assets/ liabilities and equity | 697,737 | 364,427 | 88,529 | 109,079 | 64,416 | 54,996 | 23,257 | 704,703 | 49,886 | (56,852) | |
| APRs | 364,448 | 104,911 | 65,170 | 59,299 | 56,642 | 45,413 | 17,989 | 349,422 | 15,026 | - | |
- General note: figures without considering the classification of BBVA Paraguay as Non-current Assets and Liabilities Held for Sale as of 31-12-2020 and 31-12-2019 and BBVA USA and the rest of Group's companies in the United States included in the sale agreement signed with PNC as Non-current Assets and Liabilities Held For Sale as of 31-12-2020.
The balance sheet includes a column, which represents the deletions and balance sheet adjustments between the different business areas, especially in terms of the relationship between the areas in which the parent company operates, i.e. Spain, Rest of Eurasia and the United States, and the Corporate Center.
Number of employees
(1) December 2020 data for the United States includes Houston branch employees.
Number of branches
Number of ATMs
