Business areas

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.

BBVA Group’s business areas reporting structure differs from the one presented at the end of 2020, mainly as a consequence of the disappearance of the United States as a business area, derived from the sale agreement reached with PNC. Most of the businesses in the United States excluded from this agreement, together with those of the former business area “Rest of Eurasia” constitute a new area called “Rest of Business”.

The composition of BBVA Group business areas at the end of the first quarter of 2021 are summarized below:

• Spain mainly includes the banking and insurance businesses that the Group carries out in this country, including the results of the new company created from the bancassurance agreement reached with Allianz at the end of 2020.
• 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 conducted in the region. The information for this business area includes BBVA Paraguay data for the results, activity, balances and relevant business indicators for 2020 and is not included in 2021 as the sale agreement was reached in January 2021.
• Rest of Business mainly incorporates the wholesale activity carried out in Europe (excluding Spain) and in the United States from the New York branch, as well as, the institutional business that the Group develops through the broker dealer BBVA Securities Inc. It also incorporates the banking business developed through BBVA’s 5 branches in Asia.

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, 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 as well as such portfolios and assets´ funding. Furthermore, includes the results from the venture capital fund Propel Venture Partners. Additionally and until all required authorizations are received and the aforementioned sale agreement with PNC is realized, the results obtained by the Group´s businesses in The United States included in said agreement are presented in a single line of the income statements called “Profit (loss) after taxes from discontinued operations”.

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. The figures corresponding to 2020 have been elaborated following the same criteria and the same structure of the areas that have been already explained, in a way that year-on-year comparisons are homogeneous.

Regarding the Shareholders´ funds allocation, a capital allocation system based on the consumed regulatory capital is used.

As usual, in the case of the different business areas in South America, in Turkey, in Rest of Business 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)

GROSS INCOME⁽¹⁾, OPERATING INCOME⁽¹⁾ AND NET ATTRIBUTABLE PROFIT⁽¹⁾ BREAKDOWN (PERCENTAGE. 1Q21)

⁽¹⁾ Excludes the Corporate Center.

MAIN BALANCE-SHEET ITEMS AND RISK-WEIGHTED ASSETS BY BUSINESS AREA (MILLIONS OF EUROS)

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 Business, and the Corporate Center.

Number of employees

Number of branches

Number of ATMs