Balance sheet and business activity
The most relevant aspects related to the evolution of the Group's balance sheet and business activity in 2020, are summarized below::
- Loans and advances to customers (gross) decreased by 4.5% compared to the end of the previous year, with deleveraging in all the portfolios in the last quarter of 2020, with the exception of consumer and credit cards, which showed some dynamism thanks to the recovery of economic activity in the new normal environment. In the comparison with December 2019, the mortgage portfolio registered the greatest reduction in absolute terms, despite the good origination data in several geographical areas.
- Non-performing loans were lower than at the end of December of the previous year, despite the increase in the last quarter of the year, mainly due to the entries of non-performing loans in the retail portfolios in Mexico.
- Customer deposits closed December 2020 6.1% above December 2019 balances, strongly supported by the good performance of demand deposits (up 14.0%), where customers have deposited the available liquidity to face the pandemic and which more than offset the reduction in time deposits.
- Off-balance sheet funds recovered in the quarter (up 2.9%) although it continued to show a negative growth rate compared to December 2019 (down 4.5%), mainly due to the unfavorable evolution of the markets during the first quarter of the year.
- Regarding intangible assets, the balance sheet figures as of December 31, 2020 and December 31, 2019 include the goodwill impairments in the United States registered in the last quarter of 2019 and the first quarter of 2020, with no effect on the tangible net equity, solvency or liquidity of the BBVA Group.
CONSOLIDATED BALANCE SHEET (MILLIONS OF EUROS)
| 31-12-20 | ∆% | 31-12-19 | |
|---|---|---|---|
| Cash, cash balances at central banks and other demand deposits | 77,303 | 73.1 | 44,666 |
| Financial assets held for trading | 109,288 | 7.4 | 101,735 |
| Non-trading financial assets mandatorily at fair value through profit or loss | 5,211 | (6.2) | 5,557 |
| Financial assets designated at fair value through profit or loss | 1,117 | (8.0) | 1,214 |
| Financial assets at fair value through accumulated other comprehensive income | 74,416 | 21.6 | 61,186 |
| Financial assets at amortized cost | 430,260 | (2.3) | 440,430 |
| Loans and advances to central banks and credit institutions | 20,821 | 16.2 | 17,924 |
| Loans and advances to customers | 365,006 | (4.8) | 383,565 |
| Debt securities | 44,434 | 14.1 | 38,940 |
| Investments in subsidiaries, joint ventures and associates | 1,437 | (3.5) | 1,488 |
| Tangible assets | 8,629 | (14.4) | 10,077 |
| Intangible assets | 4,297 | (38.4) | 6,970 |
| Other assets | 24,301 | (0.5) | 24,413 |
| Total assets | 736,258 | 5.5 | 697,737 |
| Financial liabilities held for trading | 86,689 | (2.2) | 88,680 |
| Other financial liabilities designated at fair value through profit or loss | 10,050 | 0.4 | 10,010 |
| Financial liabilities at amortized cost | 565,085 | 9.1 | 518,182 |
| Deposits from central banks and credit institutions | 77,513 | 41.6 | 54,722 |
| Deposits from customers | 409,122 | 6.1 | 385,686 |
| Debt certificates | 64,591 | 0.9 | 64,004 |
| Other financial liabilities | 13,860 | 0.6 | 13,771 |
| Liabilities under insurance and reinsurance contracts | 9,951 | (6.2) | 10,606 |
| Other liabilities | 14,463 | (5.7) | 15,333 |
| Total liabilities | 686,239 | 6.8 | 642,812 |
| Non-controlling interests | 5,471 | (11.8) | 6,201 |
| Accumulated other comprehensive income | (14,356) | 40.4 | (10,226) |
| Shareholders’ funds | 58,904 | (0.1) | 58,950 |
| Total equity | 50,020 | (8.9) | 54,925 |
| Total liabilities and equity | 736,258 | 5.5 | 697,737 |
| Memorandum item: | |||
| Guarantees given | 43,294 | (5.8) | 45,952 |
- 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.
LOANS AND ADVANCES TO CUSTOMERS (MILLIONS OF EUROS)
| 31-12-20 | ∆% | 31-12-19 | |
|---|---|---|---|
| Public sector | 24,273 | (14.0) | 28,226 |
| Individuals | 163,460 | (6.5) | 174,867 |
| Mortgages | 103,922 | (6.0) | 110,534 |
| Consumer | 34,256 | (6.1) | 36,500 |
| Credit cards | 12,742 | (14.6) | 14,925 |
| Other loans | 12,540 | (2.8) | 12,907 |
| Business | 174,492 | (1.4) | 176,920 |
| Non-performing loans | 15,914 | (0.5) | 16,000 |
| Loans and advances to customers (gross) | 378,139 | (4.5) | 396,012 |
| Allowances (1) | (13,133) | 5.5 | (12,447) |
| Loans and advances to customers | 365,006 | (4.8) | 383,565 |
- 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.
- (1) 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 December 31, 2020 and December 31, 2019 the remaining amount was €363m and €433m, respectively.
LOANS AND ADVANCES TO CUSTOMERS
(GROSS. BILLIONS OF EUROS)
(1) At constant exchange rates: +3.5%.
CUSTOMER FUNDS
(BILLIONS OF EUROS)
(1) At constant exchange rates: +11.9%.
CUSTOMER FUNDS (MILLIONS OF EUROS)
| 31-12-20 | ∆% | 31-12-19 | |
|---|---|---|---|
| Deposits from customers | 409,122 | 6.1 | 385,686 |
| Current accounts | 320,685 | 14.0 | 281,270 |
| Time deposits | 80,007 | (17.7) | 97,170 |
| Other deposits | 8,430 | 16.3 | 7,246 |
| Other customer funds | 102,947 | (4.5) | 107,803 |
| Mutual funds and investment companies | 64,869 | (5.5) | 68,639 |
| Pension funds | 36,215 | (1.1) | 36,630 |
| Other off-balance sheet funds | 1,863 | (26.5) | 2,534 |
| Total customer funds | 512,068 | 3.8 | 493,488 |
- 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.