Business areas

Business areas

Spain
€7,888M*
+29.1%
Mexico
€14,267M*
+20.4% (1)
Turkey
€2,981M*
+140.3% (1)
South America
€4,331M*
+43.9%(2)
Rest of business
€1,103M*
+40.7% (2)

Spain

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€7,888 Mill.*

+29.1%


Highlights

  • Growth in consumer loans, SMEs and public sector during the year
  • Favorable evolution of core revenues
  • Very relevant improvement of the efficiency ratio during the year
  • Cost of risk remains at low levels

Results
(Millions of euros)

Net interest income
5,620
+48.9% (2)
Gross income
7,888
+29.1% (2)
Operating income
4,743
+47.7% (2)
Net attributable profit
2,755
+65.3%(2)

Activity (1)

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

Performing loans and advances to customers under management
-0.9%
Customer funds under management
 
+1.7%

Risks

NPL coverage ratio
61%
55%
NPL ratio
3.9%
4.1%
Cost of risk
0.28%
0.37%
DEC 22
DEC 23


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

Mexico

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€14,267 Mill.*

+20.4%


Highlights

  • Growth of all the segments in the loan portfolio, with greater dynamism of the retail segment
  • Double digit year-on-year growth in all the income statement margins
  • Favorable evolution of the efficiency ratio
  • Quarterly net attributable profit continues at high levels

Results
(Millions of euros)

Net interest income
11,054
+19.5% (2)
Gross income
14,267
+20.4% (2)
Operating income
9,883
+22.0% (2)
Net attributable profit
5,340
+17.1% (2)

Activity (1)

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

Performing loans and advances to customers under mangement
+10.9%
Customer funds under management
 
+12.2%

Risks

NPL coverage ratio
129%
123%
NPL ratio
2.5%
2.6%
Cost of risk
2.49%
2.96%
DEC 22
DEC 23


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

Turkey

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2,981 Mill.*

+140.3%


Highlights

  • The dedollarization of the balance sheet continues in the quarter
  • Progressive improvement of the NPL ratio in the year
  • The cost of risk remains at low levels during 2023
  • Net attributable profit growth in the quarter

Results
(Millions of euros)

Net interest income
1,869
+8.0% (2)
Gross income
2,981
+140.3% (2)
Operating income
1,581
+206.9% (2)
Net attributable profit
528
n.s. (2)

Activity (1)

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

Performing loans and advances to customers under mangement
+64.2%
Customer funds under management
 
+77.8%

Risks

NPL coverage ratio
90%
97%
NPL ratio
5.1%
3.8%
Cost of risk
0.94%
0.25%
DEC 22
DEC 23


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

South America

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€4,331 Mill.*

+43.9%


Highlights

  • Growth in lending activity focused on the retail segments
  • Excellent evolution of the net interest income and of the NTI
  • Improvement in the efficiency of the area
  • Higher adjustment for hyperinflation in Argentina and the Argentine peso devaluation in the fourth quarter

Results
(Millions of euros)

Net interest income
4,394
+47.5% (2)
Gross income
4,331
+43.9% (2)
Operating income
2,397
+63.8% (2)
Net attributable profit
613
+43.2% (2)

Activity (1)

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

Performing loans and advances to customers under mangement
+8.1%
Customer funds under management
 
-9.3%

Risks

NPL coverage ratio
101%
88%
NPL ratio
4.1%
4.8%
Cost of risk
1.69%
2.51%
DEC 22
DEC 23


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

Rest of business

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€1,103 Mill.*

+40.7%


Highlights

  • Growth in lending activity during the year, favored by the recovery during the quarter
  • Dynamism in net interest income and NTI in the year
  • The cost of risk remains at low levels
  • Significant improvement of the efficiency ratio

Results
(Millions of euros)

Net interest income
539
+63.6% (2)
Gross income
1,103
+40.7% (2)
Operating income
507
+84.9% (2)
Net attributable profit
389
+63.7% (2)

Activity (1)

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

Performing loans and advances to customers under mangement
+5.7%
Customer funds under management
 
+32.5%

Risks

NPL coverage ratio
131%
69%
NPL ratio
0.4%
0.7%
Cost of risk
0.04%
0.08%
DEC 22
DEC 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 December 31, 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 portfolios and assets' funding. Finally, in the description of this aggregate, it is worth mentioning that the Corporate Center's tax expense includes for each period 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. 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
2023
Net interest income 23,089 5,620 11,054 1,869 4,394 539 23,476 (386)
Gross income 29,542 7,888 14,267 2,981 4,331 1,103 30,571 (1,029)
Operating income 17,233 4,743 9,883 1,581 2,397 507 19,111 (1,878)
Profit (loss) before tax 12,419 3,947 7,359 1,325 1,206 479 14,317 (1,898)
Net attributable profit (loss) excluding non-recurring impacts 8,019 2,755 5,340 528 613 389 9,626 (1,607)
Net attributable profit (loss) 8,019 2,755 5,340 528 613 389 9,626 (1,607)
2022(1)
Net interest income 19,124 3,774 8,378 2,611 4,138 332 19,233 (109)
Gross income 24,743 6,112 10,734 3,172 4,265 790 25,072 (329)
Operating income 14,042 3,210 7,336 2,111 2,290 276 15,223 (1,181)
Profit (loss) before tax 10,402 2,610 5,620 1,636 1,434 277 11,577 (1,175)
Net attributable profit (loss) excluding non-recurring impacts (2) 6,559 1,868 4,131 505 738 240 7,482 (922)
Net attributable profit (loss) 6,358 1,667 4,131 505 738 240 7,280 (922)

(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
31-12-23
Loans and advances
to customers		 377,643 173,169 88,112 37,416 41,213 39,322 379,231 230 (1,819)
Deposits from customers 413,487 216,198 92,564 50,651 42,567 13,056 415,037 181 (1,732)
Off-balance sheet funds 164,367 97,253 53,254 7,768 5,525 566 164,366 1 —
Total assets/liabilities and equity 775,558 457,624 173,489 68,329 64,779 64,274 828,495 23,074 (76,011)
RWAs 363,916 121,779 91,865 54,506 49,117 36,410 353,678 10,238 —
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