Business areas

Business areas

Spain
€3,069M*
+1.1%
Mexico
€4,887M*
+23.5% (1)
Turkey
€1,342M*
+55.4% (1)
South America
€1,975M*
+32.7% (2)
Rest of business
€384M*
-13.3%(2)

Spain

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€1,763 Mill.*

+0.1%


Highlights

  • Growth in lending activity and stable customer funds in the quarter
  • Solid asset quality indicators
  • Significant improvement in efficiency
  • Year-on-year decrease of impairment on financial assets during the semester

Results
(Millions of euros)

Net interest income
1,763
+0.1% (2)
Gross income
3,069
+1.1% (2)
Operating income
1,635
+6.9% (2)
Net attributable profit (3)
1,010
+39.2% (2)

Activity (1)

Variation compared to 31-12-21.
Balances as of 30-06-22.

Performing loans and advances to customers under mangement
+3.0%
Customers funds under management
 
-0.9%

Risks

NPL coverage ratio
62%
61%
NPL ratio
4.2%
4.0%
Cost of risk
0.30%
0.20%
DEC 21
JUN 22



(1) Excluding repos.
(2) Year-on-year changes.
(3) The net attributable profit excludes the net impact arisen from the purchase of offices in Spain. Including this impact, the net attributable profit stands at €808m, representing a year-on-year increase of 11.5%.

Mexico

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€3,684 Mill.*

+21.1%


Highlights

  • Growth in lending activity in all segments during the first semester
  • Improved customer spread, which is reflected in the net interest income
  • Significant improvement in the efficiency ratio
  • Loan-loss provisions in line with the first half of 2021

Results
(Millions of euros)

Net interest income
3,684
+21.1% (2)
Gross income
4,887
+23.5% (2)
Operating income
3,316
+29.9% (2)
Net attributable profit
1,821
+48.3% (2)

Activity (1)

Variation compared to 31-12-21 at constant exchange rate.
Balances as of 30-06-22.

Performing loans and advances to customers under mangement
+9.2%
Customers funds under management
 
+3.1%

Risks

NPL coverage ratio
106%
119%
NPL ratio
3.2%
2.8%
Cost of risk
2.67%
2.57%
DEC 21
JUN 22


(1) Excluding repos.
(2) Year-on-year changes at constant exchange rate.

Turkey

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1,163 Mill.*

+104.2%


Highlights

  • Growth in activity, again driven by loans and deposits in Turkish lira
  • Year-on-year growth in recurring revenue and NTI
  • Solid risk indicators
  • Positive half-year net attributable profit

Results
(Millions of euros)

Net interest income
1,163
+104.2% (2)
Gross income
1,342
+55.4% (2)
Operating income
842
+42.9% (2)
Net attributable profit
62
-70.8% (2)

Activity (1)

Variation compared to 31-12-21 at constant exchange rate.
Balances as of 30-06-22.

Performing loans and advances to customers under mangement
+30.6%
Customers funds under management
 
+28.2%

Risks

NPL coverage ratio
75%
83%
NPL ratio
7.1%
5.9%
Cost of risk
1.33%
0.88%
DEC 21
JUN 22


(1) Excluding repos.
(2) Year-on-year changes at constant exchange rate.

South America

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€1,849 Mill.*

+39.8%


Highlights

  • Growth in lending activity and customer funds
  • Significant momentum in recurring income
  • Stability in the efficiency ratio despite the growth in expenses in an inflationary environment
  • Outstanding growth in net attributable profit in the quarter

Results
(Millions of euros)

Net interest income
1,849
+39.8% (2)
Gross income
1,975
+32.7% (2)
Operating income
1,052
+32.8% (2)
Net attributable profit
413
+102.1% (2)

Activity (1)

Variation compared to 31-12-21 at constant exchange rates.
Balances as of 30-06-22.

Performing loans and advances to customers under mangement
+6.9%
Customers funds under management
 
+7.6%

Risks

NPL coverage ratio
99%
100%
NPL ratio
4.5%
4.2%
Cost of risk
1.65%
1.24%
DEC 21
JUN 22


(1) Excluding repos.
(2) Year-on-year changes at constant exchange rates.

Rest of business

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€155 Mill.*

-14.8%


Highlights

  • Balanced growth in lending activity and in customer funds in the first half of 2022
  • Strong net interest income
  • The cost of risk remains at low levels
  • Year-on-year growth in the net attributable profit of the European businesses

Results
(Millions of euros)

Net interest income
155
+6.4% (2)
Gross income
384
-13.3% (2)
Operating income
150
-25.9% (2)
Net attributable profit
128
-24.0% (2)

Activity (1)

Variation compared to 31-12-21 at constant exchange rates.
Balances as of 30-06-22.

Performing loans and advances to customers under mangement
+16.7%
Customers funds under management
 
+16.7%

Risks

NPL coverage ratio
116%
120%
NPL ratio
0.7%
0.5%
Cost of risk
-0.11%
0.00%
DEC 21
JUN 22


(1) Excluding repos.
(2) Year-on-year changes at constant exchange rates.

* Gross income

(1) At constant exchange rate.

(2) At constant exchange rates.

Data at the end of June 2022. Those countries in which BBVA has no legal entity or the volume of activity is not significant, are not included.

This section presents the most relevant aspects of the Group's different business areas. Specifically, for each one of them, it shows a summary of the income statements and balance sheets, the business activity figures and the most significant ratios.

The structure of the business areas reported by the BBVA Group as of June 30, 2022, is identical with the one presented at the end of 2021.

The composition of BBVA Group business areas is summarized below:

  • Spain mainly includes the banking and insurance businesses that the Group carries out in this country, including the proportional share of the results of the 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.
  • Rest of Business mainly incorporates the wholesale activity carried out in Europe (excluding Spain) and in the United States, as well as the banking business developed through BBVA’s branches in Asia.

The Corporate Center contains the centralized functions of the Group, including: the costs of the head offices with a corporate function; structural exchange rate positions management; portfolios whose management is not linked to customer relations, such as financial and industrial holdings; stakes in Funds & Investment Vehicles in tech companies; certain tax assets and liabilities; funds due to commitments to employees; goodwill and other intangible assets as well as such portfolios and assets' funding. Additionally, the results obtained by BBVA USA and the rest of the companies included in the sale agreement to PNC until the closing of the transaction on June 1, 2021, are presented in a single line of the income statements called “Profit (loss) after taxes from discontinued operations”. Finally, the costs related to the BBVA, S.A. restructuring process carried out in Spain during the first half of the year 2021, are included in this aggregate and are recorded in the line "Net cost related to the restructuring process".

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 areas is based on units at the lowest level and/or companies that make up the Group, which are assigned to the different areas according to the main region or company group in which they carry out their activity. With regard to the information related to the business areas, in the first quarter of 2022 the Group changed the allocation criteria for certain expenses related to global technology projects between the Corporate Center and the business areas, therefore, to ensure that year-on-year comparisons are homogeneous, the figures corresponding to the financial year 2021 have been restated, which did not affected the consolidated financial information of the Group. Also in the first quarter of 2022, an equity team from the Global Markets unit was transferred from Spain to New York, with the corresponding transfer of the costs associated with this relocation from the Spain area to the Rest of Business area.

Regarding the shareholders' funds allocation, in the business areas, a capital allocation system based on the consumed regulatory capital is used.

Finally, it should be noted that, as usual, in the case of the different business areas, that is, Mexico, Turkey, South America and Rest of Business, and, additionally, CIB, in addition to the year-on-year variations applying current exchange rates, the variations at constant exchange rates are also disclosed.

Main income statement line items by business area (Millions of euros)

Business areas
BBVA
Group		 Spain Mexico Turkey South
America		 Rest of
Business		 ∑ Business areas Corporate Center
1H22
Net interest income 8,551 1,763 3,684 1,163 1,849 155 8,614 (64)
Gross income 11,509 3,069 4,887 1,342 1,975 384 11,656 (147)
Operating income 6,456 1,635 3,316 842 1,052 150 6,995 (539)
Profit (loss) before tax 4,921 1,414 2,502 637 738 162 5,454 (533)
Net attributable profit (loss) excluding
non-recurring impacts(1)		 3,203 1,010 1,821 62 413 128 3,433 (230)
Net attributable profit (loss) 3,001 808 1,821 62 413 128 3,232 (230)
1H21 (2)
Net interest income 6,955 1,761 2,771 1,036 1,328 141 7,037 (82)
Gross income 10,259 3,035 3,604 1,571 1,480 422 10,112 146
Operating income 5,661 1,529 2,325 1,072 786 194 5,907 (247)
Profit (loss) before tax 3,883 985 1,593 952 414 205 4,148 (265)
Net attributable profit (loss) excluding
non-recurring impacts(1) 		2,327 725 1,119 384 210 159 2,598 (271)
Net attributable profit (loss) 1,911 725 1,119 384 210 159 2,598 (687)
  • (1) Non-recurring impacts include: (I) the net impact arisen from the purchase of offices in Spain in 2022; (II) the net costs related to the restructuring process; and (III) the profit (loss) after tax from discontinued operations derived from the sale of BBVA USA and the rest of the companies in the United States to PNC on June 1, 2021.
  • (2) Restated balances.

GROSS INCOME(1), OPERATING INCOME(1) AND NET ATTRIBUTABLE PROFIT(1) BREAKDOWN (PERCENTAGE. 1H22)

(1) Excludes the Corporate Center and the net impact arisen from the purchase of offices in Spain.

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

Business areas
BBVA
Group		 Spain Mexico Turkey South
America		 Rest of
business		 ∑ Business areas Corporate Center Deletions
30-06-22
Loans and advances
to customers		 350,110 176,109 67,020 35,610 40,176 32,142 351,057 343 (1,291)
Deposits from customers 376,973 211,023 72,692 42,688 43,314 7,735 377,453 191 (670)
Off-balance sheet funds 146,698 86,828 36,908 4,925 17,511 523 146,695 3 -
Total assets/ liabilities and equity 715,294 432,012 140,360 64,101 66,343 46,176 748,991 26,103 (59,800)
RWAs 330,819 109,821 73,869 51,055 49,641 34,389 318,775 12,044 -
31-12-21
Loans and advances
to customers		 318,939 171,081 55,809 31,414 34,608 26,965 319,877 1,006 (1,945)
Deposits from customers 349,761 206,663 64,003 38,341 36,340 6,266 351,613 175 (2,027)
Off-balance sheet funds 147,192 94,095 32,380 3,895 16,223 597 147,190 2 -
Total assets/ liabilities and equity 662,885 413,430 118,106 56,245 56,124 40,328 684,233 30,835 (52,182)
RWAs 307,795 113,797 64,573 49,718 43,334 29,280 300,703 7,092 -

Number of employees

Number of branches

Number of ATMs