Balance sheet and business activity
The most relevant aspects related to the evolution of the Group's balance sheet and business activity as of September 30, 2023 are summarized below:
- Loans and advances to customers recorded an increase of 5.3% compared to the end of December 2022, strongly favored by the evolution of retail loans (+6.9% at Group level), supported by both the good performance of credit cards and consumer loans (+12.5% overall at Group level) in Mexico, Turkey and South America, and mortgage loans, mainly in Mexico. On the other hand, loans to the public sector and business loans (+11.0% and +3.0%, respectively) showed a positive dynamic, originating mainly in Mexico.
- Customer funds increased by 3.6% compared to the end of December 2022, thanks both to the growth in deposits from customers which increased by 2.4% due to the positive evolution of time deposits in all business areas and to the increase in off-balance sheet funds, which grew by +6.9% thanks to the evolution of mutual funds and customer portfolios, highlighting the good performance in Mexico and Spain.
CONSOLIDATED BALANCE SHEET (MILLIONS OF EUROS)
| 30-09-23 | ∆% | 31-12-22 | 30-09-22 | |
|---|---|---|---|---|
| Cash, cash balances at central banks and other demand deposits | 66,859 | (16.2) | 79,756 | 88,076 |
| Financial assets held for trading | 134,804 | 21.8 | 110,671 | 119,966 |
| Non-trading financial assets mandatorily at fair value through profit or loss | 8,490 | 23.2 | 6,888 | 7,290 |
| Financial assets designated at fair value through profit or loss | 939 | 2.9 | 913 | 978 |
| Financial assets at fair value through accumulated other comprehensive income | 63,792 | (2.4) | 65,374 | 69,374 |
| Financial assets at amortized cost | 446,046 | 7.6 | 414,421 | 418,032 |
| Loans and advances to central banks and credit institutions | 21,674 | 6.1 | 20,431 | 22,797 |
| Loans and advances to customers | 376,336 | 5.3 | 357,351 | 361,176 |
| Debt securities | 48,036 | 31.1 | 36,639 | 34,059 |
| Investments in joint ventures and associates | 926 | 1.1 | 916 | 903 |
| Tangible assets | 9,385 | 7.4 | 8,737 | 8,567 |
| Intangible assets | 2,310 | 7.1 | 2,156 | 2,211 |
| Other assets | 24,184 | 8.6 | 22,259 | 22,494 |
| Total assets | 757,736 | 6.4 | 712,092 | 737,890 |
| Financial liabilities held for trading | 118,276 | 23.7 | 95,611 | 104,534 |
| Other financial liabilities designated at fair value through profit or loss | 12,862 | 21.6 | 10,580 | 10,678 |
| Financial liabilities at amortized cost | 544,853 | 3.0 | 529,172 | 545,288 |
| Deposits from central banks and credit institutions | 60,140 | (7.8) | 65,258 | 84,196 |
| Deposits from customers | 403,861 | 2.4 | 394,404 | 390,277 |
| Debt certificates | 65,241 | 17.7 | 55,429 | 54,811 |
| Other financial liabilities | 15,612 | 10.9 | 14,081 | 16,003 |
| Liabilities under insurance and reinsurance contracts | 11,260 | 11.1 | 10,131 | 10,787 |
| Other liabilities | 17,032 | 5.9 | 16,081 | 16,771 |
| Total liabilities | 704,283 | 6.5 | 661,575 | 688,057 |
| Non-controlling interests | 3,703 | 2.2 | 3,623 | 3,652 |
| Accumulated other comprehensive income | (16,213) | (8.1) | (17,642) | (16,638) |
| Shareholders’ funds | 65,963 | 2.2 | 64,535 | 63,019 |
| Total equity | 53,453 | 5.8 | 50,517 | 49,833 |
| Total liabilities and equity | 757,736 | 6.4 | 712,092 | 738,890 |
| Memorandum item: | ||||
| Guarantees given | 57,520 | 4.2 | 55,182 | 54,954 |
General note: 2022 figures have been restated according to IFRS 17 - Insurance contracts.
LOANS AND ADVANCES TO CUSTOMERS (MILLIONS OF EUROS)
| 30-09-23 | ∆% | 31-12-22 | 30-09-22 | |
|---|---|---|---|---|
| Public sector | 23,178 | 11.0 | 20,884 | 20,488 |
| Individuals | 167,675 | 6.9 | 156,838 | 157,928 |
| Mortgages | 93,306 | 1.9 | 91,569 | 93,244 |
| Consumer | 38,672 | 7.5 | 35,965 | 36,327 |
| Credit cards | 21,350 | 22.8 | 17,382 | 16,453 |
| Other loans | 14,347 | 20.4 | 11,921 | 11,904 |
| Business | 182,766 | 3.0 | 177,374 | 180,539 |
| Non-performing loans | 13,947 | 3.4 | 13,493 | 14,256 |
| Loans and advances to customers (gross) | 387,565 | 5.1 | 368,588 | 373,210 |
| Allowances (1) | (11,229) | (0.1) | (11,237) | (12,035) |
| Loans and advances to customers | 376,336 | 5.3 | 357,351 | 361,176 |
(1) Allowances include valuation adjustments for credit risk throughout the expected residual life in those financial instruments that have been acquired (mainly originating from the acquisition of Catalunya Banc, S.A.). As of September 30, 2023, December 31, 2022 and September 30, 2022, the remaining amount was €153m, €190m and €202m, respectively.
LOANS AND ADVANCES TO CUSTOMERS (BILLIONS OF EUROS)
(1) At constant exchange rates: +5.8%.
CUSTOMER FUNDS (BILLIONS OF EUROS)
(1) At constant exchange rates: +4.2%.
CUSTOMER FUNDS (MILLIONS OF EUROS)
| 30-09-23 | ∆% | 31-12-22 | 30-09-22 | |
|---|---|---|---|---|
| Deposits from customers | 403,861 | 2.4 | 394,404 | 390,277 |
| Current accounts | 309,847 | (2.0) | 316,082 | 314,631 |
| Time deposits | 90,102 | 19.1 | 75,646 | 73,564 |
| Other deposits | 3,911 | 46.2 | 2,676 | 2,082 |
| Other customer funds | 160,485 | 6.9 | 150,172 | 150,504 |
| Mutual funds and investment companies and customer portfolios (1) | 128,985 | 18.4 | 108,936 | 108,315 |
| Pension funds | 27,304 | (29.4) | 38,653 | 39,178 |
| Other off-balance sheet funds | 4,196 | 62.5 | 2,582 | 3,011 |
| Total customer funds | 564,346 | 3.6 | 544,576 | 540,781 |
(1) Includes the customer portfolios in Spain, Mexico, Colombia and Peru.