Business areas

Business areas

Spain
€1,726M*
+4.3%
Mexico
€3,306M*
+29.2% (1)
Turkey
€802M*
n.s. (1)
South America
€1,175M*
+66.1%(2)
Rest of business
€260M*
+27.3% (2)

Spain

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€1,726 Mill.*

+4.3%


Highlights

  • Seasonal drop in lending
  • Significant improvement in net interest income
  • Recording of the temporary tax on credit institutions for the financial year 2023
  • Cost of risk remains at low levels, in line with the end of 2022

Results
(Millions of euros)

Net interest income
1,183
+38.2% (2)
Gross income
1,726
+4.3% (2)
Operating income
974
+2.9% (2)
Net attributable profit
541
-9.5%(2)

Activity (1)

Variation compared to 31-12-22.
Balances as of 31-03-23.

Performing loans and advances to customers under mangement
-1.2%
Customers funds under management
 
-1.0%

Risks

NPL coverage ratio
61%
59%
NPL ratio
3.9%
3.9%
Cost of risk
0.28%
0.27%
DEC 22
MAR 23


(1) Excluding repos.
(2) Year-on-year changes.

Mexico

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€3,306 Mill.*

+29.2%


Highlights

  • Favorable performance of the portfolio, with greater dynamism of the retail segment
  • Increase in net interest income as a result of effective spread management
  • Outstanding evolution of the efficiency ratio
  • Significant growth in net attributable profit

Results
(Millions of euros)

Net interest income
2,589
+29.2% (2)
Gross income
3,306
+29.2% (2)
Operating income
2,318
+35.9% (2)
Net attributable profit
1,285
+44.2% (2)

Activity (1)

Variation compared to 31-12-22 at constant exchange rate.
Balances as of 31-03-23.

Performing loans and advances to customers under mangement
+2.3%
Customers funds under management
 
+1.3%

Risks

NPL coverage ratio
129%
137%
NPL ratio
2.5%
2.3%
Cost of risk
2.49%
2.88%
DEC 22
MAR 23


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

Turkey

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802 Mill.*

n.s.


Highlights

  • Significant de-dollarization of the balance sheet
  • Improved risk indicators compared to year-end 2022
  • Net attributable profit positively affected by lower income tax

Results
(Millions of euros)

Net interest income
626
+63.0% (2)
Gross income
802
+n.s. (2)
Operating income
403
+n.s. (2)
Net attributable profit
277
+n.s. (2)

Activity (1)

Variation compared to 31-12-22 at constant exchange rate.
Balances as of 31-03-23.

Performing loans and advances to customers under mangement
+9.5%
Customers funds under management
 
+14.0%

Risks

NPL coverage ratio
90%
99%
NPL ratio
5.1%
4.3%
Cost of risk
0.94%
0.52%
DEC 22
MAR 23


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

South America

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€1,175 Mill.*

+66.1%


Highlights

  • Growth in lending activity and customer funds
  • Favorable performance of recurring income
  • Higher adjustment for hyperinflation in Argentina
  • Improvement of the efficiency ratio

Results
(Millions of euros)

Net interest income
1,190
+81.7% (2)
Gross income
1,175
+66.1% (2)
Operating income
642
+78.1% (2)
Net attributable profit
184
+57.2% (2)

Activity (1)

Variation compared to 31-12-22 at constant exchange rates.
Balances as of 31-03-23.

Performing loans and advances to customers under mangement
+2.9%
Customers funds under management
 
+4.6%

Risks

NPL coverage ratio
101%
99%
NPL ratio
4.1%
4.3%
Cost of risk
1.69%
2.18%
DEC 22
MAR 23


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

Rest of business

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€260 Mill.*

+27.3%


Highlights

  • Growth in lending activity in the New York branch and in customer funds
  • Recurring income dynamism
  • NPL ratio and cost of risk remain at low levels
  • Improved efficiency

Results
(Millions of euros)

Net interest income
113
+49.4% (2)
Gross income
260
+27.3% (2)
Operating income
122
+38.7% (2)
Net attributable profit
92
+11.6% (2)

Activity (1)

Variation compared to 31-12-22 at constant exchange rates.
Balances as of 31-03-23.

Performing loans and advances to customers under mangement
-3.4%
Customers funds under management
 
+2.9%

Risks

NPL coverage ratio
131%
101%
NPL ratio
0.4%
0.5%
Cost of risk
0.04%
0.21%
DEC 22
MAR 23


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

* Gross income
(1) At constant exchange rate.
(2) At constant exchange rates.

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 March 31, 2023, is identical with the one presented at the end of 2022.

The composition of BBVA Group's business areas is summarized below:

  • Spain mainly includes the banking, insurance and asset management activities that the Group carries out in this country.
  • Mexico includes banking, insurance and asset management activities in this country, as well as the activity that BBVA Mexico carries out through its agency 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 includes banking, financial, insurance and asset management activities conducted, mainly, in Argentina, Chile, Colombia, Peru, Uruguay and Venezuela.
  • Rest of Business mainly incorporates the wholesale activity carried out in Europe (excluding Spain), the United States, and 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.

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.

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.

GROSS INCOME(1), OPERATING INCOME(1) AND NET ATTRIBUTABLE PROFIT(1) BREAKDOWN (PERCENTAGE. 1Q23)

(1) Excludes the Corporate Center.

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
1Q23
Net interest income 5,642 1,183 2,589 626 1,190 113 5,702 (60)
Gross income 6,958 1,726 3,306 802 1,175 260 7,269 (311)
Operating income 3,942 974 2,318 403 642 122 4,458 (516)
Profit (loss) before tax 2,944 851 1,768 327 405 111 3,463 (519)
Net attributable profit (loss) 1,846 541 1,285 277 184 92 2,378 (531)
1Q22 (1)
Net interest income 3,943 856 1,748 492 809 75 3,980 (37)
Gross income 5,395 1,655 2,232 500 885 202 5,474 (79)
Operating income 2,989 946 1,487 262 473 87 3,255 (266)
Profit (loss) before tax 2,225 837 1,067 155 315 105 2,480 (255)
Net attributable profit (loss) 1,325 598 777 (76) 160 81 1,540 (215)

(1) Restated balances according to IFRS17 - Insurance contracts.

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
31-03-23
Loans and advances
to customers		 362,317 172,085 77,277 38,995 39,185 35,946 363,488 402 (1,573)
Deposits from customers 395,880 214,476 80,172 51,234 40,782 10,070 396,733 186 (1,039)
Off-balance sheet funds 160,959 90,577 44,408 7,491 17,971 510 160,958 0 —
Total assets/ liabilities and equity 739,564 441,720 151,955 71,222 63,063 50,407 778,367 22,396 (61,198)
RWAs 348,598 116,550 78,316 58,683 47,341 33,725 334,615 13,983 —
31-12-22 (1)
Loans and advances
to customers		 357,351 173,971 71,231 37,443 38,437 37,375 358,456 278 (1,383)
Deposits from customers 394,404 221,019 77,750 46,339 40,042 9,827 394,978 187 (760)
Off-balance sheet funds 150,172 86,759 38,196 6,936 17,760 520 150,170 2 —
Total assets/ liabilities and equity 712,092 427,116 142,557 66,036 61,951 49,952 747,613 22,719 (58,239)
RWAs 337,066 114,474 71,738 56,275 46,834 35,064 324,385 12,682 —
  • (1) Restated balances according to IFRS17 - Insurance contracts.

Number of employees

Number of branches

Number of ATMs