Business areas

Business areas

Spain
€5,833M*
+26.3%
Mexico
€10,475M*
+22.3% (1)
Turkey
€2,310M*
+184.0% (1)
South America
€3,577M*
+52.9%(2)
Rest of business
€852M*
+48.6% (2)

Spain

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€5,833 Mill.*

+26.3%


Highlights

  • Growth in consumer loans, SMEs and public sector during the year
  • Net interest income dynamism continues
  • Very significant improvement of the efficiency ratio
  • Cost of risk remains at low levels

Results
(Millions of euros)

Net interest income
4,053
+50.8% (2)
Gross income
5,833
+26.3% (2)
Operating income
3,532
+42.6% (2)
Net attributable profit
2,110
+61.9%(2)

Activity (1)

Variation compared to 31-12-22.
Balances as of 30-09-23.

Performing loans and advances to customers under management
-0.5%
Customer funds under management
 
-0.7%

Risks

NPL coverage ratio
61%
55%
NPL ratio
3.9%
4.0%
Cost of risk
0.28%
0.31%
DEC 22
SEP 23


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

Mexico

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€10,475 Mill.*

+22.3%


Highlights

  • Lending activity acceleration in the quarter, with greater dynamism of the retail segment
  • Net interest income continues to grow at double digit rates
  • Favorable evolution of the efficiency ratio
  • Quarterly net attributable profit continues at high levels

Results
(Millions of euros)

Net interest income
8,164
+23.3% (2)
Gross income
10,475
+22.3% (2)
Operating income
7,300
+25.2% (2)
Net attributable profit
3,987
+22.3% (2)

Activity (1)

Variation compared to 31-12-22 at constant exchange rate.
Balances as of 30-09-23.

Performing loans and advances to customers under mangement
+8.0%
Customer funds under management
 
+6.1%

Risks

NPL coverage ratio
129%
127%
NPL ratio
2.5%
2.6%
Cost of risk
2.49%
2.94%
DEC 22
SEP 23


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

Turkey

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2,210 Mill.*

+184.0%


Highlights

  • The dedollarization of the balance sheet continues in the quarter
  • Improvement of the NPL ratio and NPL coverage ratio
  • The cost of risk remains at low levels
  • Net attributable profit of the third quarter negatively impacted by the hyperinflation adjustment and the increase in the tax rate

Results
(Millions of euros)

Net interest income
1,581
+21.3% (2)
Gross income
2,310
+184.0% (2)
Operating income
1,264
n.s. (2)
Net attributable profit
367
n.s. (2)

Activity (1)

Variation compared to 31-12-22 at constant exchange rate.
Balances as of 30-09-23.

Performing loans and advances to customers under mangement
+46.7%
Customer funds under management
 
+59.8%

Risks

NPL coverage ratio
90%
100%
NPL ratio
5.1%
3.8%
Cost of risk
0.94%
0.26%
DEC 22
SEP 23


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

South America

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€3,577 Mill.*

+52.9%


Highlights

  • Growth in lending activity
  • Excellent evolution of the net interest income
  • Favorable NTI evolution
  • Higher adjustment for hyperinflation in Argentina

Results
(Millions of euros)

Net interest income
3,892
+67.6% (2)
Gross income
3,577
+52.9% (2)
Operating income
1,900
+65.5% (2)
Net attributable profit
496
+20.5% (2)

Activity (1)

Variation compared to 31-12-22 at constant exchange rates.
Balances as of 30-09-23.

Performing loans and advances to customers under mangement
+6.9%
Customer funds under management
 
-9.9%

Risks

NPL coverage ratio
101%
93%
NPL ratio
4.1%
4.6%
Cost of risk
1.69%
2.50%
DEC 22
SEP 23


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

Rest of business

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€852 Mill.*

+48.6%


Highlights

  • Recovery in lending activity during the quarter
  • Dynamism in recurring income and NTI in the year
  • NPL ratio and cost of risk remain at low levels
  • Efficiency improvement continues in year-on-year terms

Results
(Millions of euros)

Net interest income
405
+70.2% (2)
Gross income
852
+48.6% (2)
Operating income
424
+99.5% (2)
Net attributable profit
322
+80.8% (2)

Activity (1)

Variation compared to 31-12-22 at constant exchange rates.
Balances as of 30-09-23.

Performing loans and advances to customers under mangement
+0.8%
Customer funds under management
 
+2.9%

Risks

NPL coverage ratio
131%
82%
NPL ratio
0.4%
0.6%
Cost of risk
0.04%
0.09%
DEC 22
SEP 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 September 30, 2023, is the same as 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. Finally, in the description of this aggregate, it is worth mentioning that the Corporate Center tax expense includes the difference between the effective tax rate in the period of each business area and the expected tax rate of the Group for the year as a whole.

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. JAN.-SEP. 2023)

(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
Jan.-Sep. 23
Net interest income 17,843 4,053 8,164 1,581 3,892 405 18,096 (253)
Gross income 22,104 5,833 10,475 2,310 3,577 852 23,047 (943)
Operating income 12,863 3,532 7,300 1,264 1,900 424 14,420 (1,557)
Profit (loss) before tax 9,487 3,053 5,472 1,089 1,021 410 11,044 (1,558)
Net attributable profit (loss) excluding non-recurring impacts 5,961 2,110 3,987 367 496 322 7,282 (1,321)
Net attributable profit (loss) 5,961 2,110 3,987 367 496 322 7,282 (1,321)
Jan.-Sep. 22 (1)
Net interest income 13,790 2,687 5,922 1,961 3,074 243 13,887 (97)
Gross income 18,255 4,620 7,661 2,347 3,186 584 18,399 (144)
Operating income 10,428 2,477 5,218 1,561 1,693 217 11,166 (737)
Profit (loss) before tax 7,844 2,107 3,896 1,205 1,148 229 8,585 (741)
Net attributable profit (loss) excluding non-recurring impacts (2) 4,997 1,505 2,918 333 625 182 5,563 (566)
Net attributable profit (loss) 4,795 1,304 2,918 333 625 182 5,361 (566)

(1) Balances restated according to IFRS 17 - Insurance contracts.

(2) Non-recurring impacts includes the net impact arisen from the purchase of offices in Spain in the second quarter of 2022.

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
30-09-23
Loans and advances
to customers		 376,336 173,619 86,727 37,466 42,119 37,862 377,794 129 (1,587)
Deposits from customers 403,861 212,725 86,373 51,104 44,535 10,204 404,942 191 (1,272)
Off-balance sheet funds 160,485 93,024 52,741 7,894 6,345 480 160,484 1 -
Total assets/liabilities and equity 757,736 437,757 173,017 69,272 67,136 55,740 802,923 22,671 (67,858)
RWAs 357,972 117,112 88,290 53,056 50,255 35,087 343,799 14,173 -
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) Balances restated according to IFRS 17 - Insurance contracts.

Number of employees

Number of branches

Number of ATMs