Corporate Center
Financial statements (Millions of euros and percentage)
| Income statement | 2021 | ∆% | 2020 |
|---|---|---|---|
| Net interest income | (163) | (0.4) | (164) |
| Net fees and commissions | (36) | (45.5) | (66) |
| Net trading income | 266 | 84.2 | 144 |
| Other operating income and expenses | 146 | n.s. | 22 |
| Gross income | 212 | n.s. | (63) |
| Operating expenses | (881) | 5.4 | (836) |
| Personnel expenses | (558) | 13.2 | (493) |
| Other administrative expenses | (129) | (13.4) | (149) |
| Depreciation | (194) | - | (194) |
| Operating income | (668) | (25.6) | (898) |
| Impairment on financial assets not measured at fair value through profit or loss | (2) | n.s. | 4 |
| Provisions or reversal of provisions and other results | 32 | n.s. | (289) |
| Profit (loss) before tax | (638) | (46.1) | (1,183) |
| Income tax | 94 | (64.9) | 268 |
| Profit (loss) for the year | (544) | (40.6) | (915) |
| Non-controlling interests | (20) | n.s. | - |
| Net attributable profit excluding non-recurring impacts | (564) | (38.3) | (915) |
| Profit (loss) after tax from discontunued operations (1) | 280 | n.s. | (1,729) |
| Corporate operations (2) | - | - | 304 |
| Net cost related to the restructuring process | (696) | - | - |
| Net attributable profit (loss) | (980) | (58.1) | (2,339) |
- (1) Including the results generated by BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021.
- (2) Net capital gains from the sale to Allianz of 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 | 31-12-21 | ∆% | 31-12-20 |
|---|---|---|---|
| Cash, cash balances at central banks and other demand deposits | 9,609 | n.s. | 874 |
| Financial assets designated at fair value | 2,099 | 43.3 | 1,464 |
| Of which: Loans and advances | - | n.s | - |
| Financial assets at amortized cost | 2,175 | 26.6 | 1,718 |
| Of which: Loans and advances to customers | 1,006 | 99.4 | 505 |
| Inter-area positions | - | - | - |
| Tangible assets | 1,964 | (4.8) | 2,063 |
| Other assets | 14,988 | (84.9) | 99,298 |
| Total assets/liabilities and equity | 30,835 | (70.7) | 105,416 |
| Financial liabilities held for trading and designated at fair value through profit or loss | 84 | 17.3 | 72 |
| Deposits from central banks and credit institutions | 825 | (2.4) | 845 |
| Deposits from customers | 175 | (51.7) | 363 |
| Debt certificates | 1,556 | (64.2) | 4,344 |
| Inter-area positions | 7,758 | n.s. | 64 |
| Other liabilities | 6,932 | (91.7) | 83,707 |
| Regulatory capital allocated | (35,257) | 3.7 | (33,998) |
| Total equity | 48,760 | (2.5) | 50,020 |
Results
The Corporate Center recorded a net attributable loss of €564m between January and December 2021, excluding various non-recurring impacts, among them:
- The profit (loss) after tax from discontinued operations which includes the results generated by the Group's businesses in the United States prior to its sale to PNC on June 1, 2021, which amounted to a positive result of €280m, while at the end of December 2020 it stood at €-1,729m, including the goodwill impairment in the United States which amounted to €-2,084m.
- The net cost related to the restructuring process of BBVA S.A. in Spain which amounted to €-696m, of which, before tax, €-754m correspond to the collective layoff and €-240m to branches closures.
Including both non-recurring impacts, the Corporate Center recorded a cumulative net attributable loss of €-980m at the end of December 2021, showing a significant improvement over the previous year. For comparative purposes, it should be noted that the net attributable loss recorded by the Corporate Center in 2020 was positively impacted by the materialization, in the fourth quarter of that year, of the bancassurance agreement reached with Allianz in Spain, which contributed a net capital gain of €304m, recorded in the corporate operations line of the income statement.
In addition to the aforementioned, the most relevant aspects of the year-on-year evolution are summarized below:
- Net fees and commissions evolved positively, since those from the previous year recorded expenses associated with the issuance of the first green convertible bond (CoCo) for an amount of €1,000m.
- NTI increased by 84.2% as a result, mainly, from the valuation of the Group’s stakes in Funds & Investment Vehicles in tech companies.
- The other operating income and expenses line registered a positive result at the end of December 2021, mainly due to higher dividend income obtained from the Group's stake in Telefónica and funds and investment vehicles in tech companies.
- Finally, the provisions or reversal of provisions and other results line compares very positively with the balance of the previous year, mainly due to the deterioration of investments in subsidiaries, joint venture or associates businesses in 2020.