Additional pro forma information: Corporate & Investment Banking
Highlights
- Lending upward trend continues, with sustained quarter-on-quarter growth
- Favorable evolution of recurrent revenues and NTI in the quarter
- Solid gross income in all business divisions
- Outstanding attributable profit in the quarter
BUSINESS ACTIVITY (1)
(VARIATION AT CONSTANT EXCHANGE RATES COMPARED TO 31-12-24)
(1) Excluding repos.
RECURRING REVENUES / AVERAGE TOTAL ASSETS
(PERCENTAGE AT CONSTANT EXCHANGE RATES)
OPERATING INCOME
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +30.1%.
NET ATTRIBUTABLE PROFIT (LOSS)
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +29.0%.
The pro forma information of CIB does not include the application of hyperinflation accounting nor the wholesale business of the Group in Venezuela.
| FINANCIAL STATEMENTS AND RELEVANT BUSINESS INDICATORS (MILLIONS OF EUROS AND PERCENTAGE) | ||||
|---|---|---|---|---|
| Income statement | 1Q25 | ∆ % | ∆ % (1) | 1Q24 (2) |
| Net interest income | 707 | 27.5 | 40.3 | 555 |
| Net fees and commissions | 347 | 13.0 | 20.7 | 307 |
| Net trading income | 669 | 28.2 | 37.3 | 522 |
| Other operating income and expenses | (12) | (46.0) | (41.0) | (23) |
| Gross income | 1,711 | 25.7 | 36.0 | 1,361 |
| Operating expenses | (434) | 14.3 | 20.3 | (379) |
| Personnel expenses | (196) | 15.7 | 19.8 | (169) |
| Other administrative expenses | (209) | 14.6 | 22.9 | (182) |
| Depreciation | (29) | 3.6 | 6.7 | (28) |
| Operating income | 1,278 | 30.1 | 42.3 | 982 |
| Impairment on financial assets not measured at fair value through profit or loss | (24) | n.s. | n.s. | 35 |
| Provisions or reversal of provisions and other results | 10 | n.s. | n.s. | (1) |
| Profit (loss) before tax | 1,264 | 24.5 | 36.7 | 1,015 |
| Income tax | (352) | 16.2 | 28.2 | (303) |
| Profit (loss) for the period | 912 | 28.0 | 40.3 | 712 |
| Non-controlling interests | (84) | 19.1 | 29.7 | (70) |
| Net attributable profit (loss) | 828 | 29.0 | 41.5 | 642 |
Balance sheets | 31-03-25 | ∆ % | ∆ % (1) | 31-12-24 (2) |
| Cash, cash balances at central banks and other demand deposits | 6,027 | (35.4) | (33.3) | 9,333 |
| Financial assets designated at fair value | 103,381 | (7.9) | (7.6) | 112,237 |
| Of which: Loans and advances | 38,512 | 4.7 | 4.8 | 36,785 |
| Financial assets at amortized cost | 116,154 | 1.3 | 3.2 | 114,620 |
| Of which: Loans and advances to customers | 95,563 | 2.8 | 4.9 | 92,966 |
| Inter-area positions | — | — | — | — |
| Tangible assets | (329) | n.s. | n.s. | 194 |
| Other assets | 14,918 | (7.4) | (5.6) | 16,111 |
| Total assets/liabilities and equity | 240,151 | (4.9) | (3.7) | 252,495 |
| Financial liabilities held for trading and designated at fair value through profit or loss | 71,270 | (11.4) | (11.3) | 80,460 |
| Deposits from central banks and credit institutions | 36,402 | 5.2 | 5.7 | 34,589 |
| Deposits from customers | 70,896 | 3.7 | 6.4 | 68,346 |
| Debt certificates | 7,518 | 15.4 | 15.7 | 6,516 |
| Inter-area positions | 38,714 | (10.2) | (8.5) | 43,094 |
| Other liabilities | 2,768 | (59.7) | (59.1) | 6,872 |
| Regulatory capital allocated | 12,583 | (0.3) | 1.7 | 12,617 |
Relevant business indicators | 31-03-25 | ∆ % | ∆ % (1) | 31-12-24 (2) |
| Performing loans and advances to customers under management (3) | 95,262 | 2.5 | 4.6 | 92,914 |
| Non-performing loans | 578 | (3.5) | 5.1 | 599 |
| Customer deposits under management (3) | 66,879 | 4.2 | 6.9 | 64,174 |
| Off-balance sheet funds (4) | 4,157 | 8.1 | 11.6 | 3,844 |
| Efficiency ratio (%) | 25.3 | 28.6 | ||
General note: For the translation of the income statement in those countries where hyperinflation accounting is applied, the punctual exchange rate as of March 31, 2025 is used.
(1) At constant exchange rates.
(2) Revised balances. For more information, please refer to the “Business Areas” section.
(3) Excluding repos.
(4) Includes mutual funds, customer portfolios and other off-balance sheet funds.
Unless expressly stated otherwise, all the comments below on rates of change, for both activity and results, will be given at constant exchange rates. For the conversion of these figures in those countries in which accounting for hyperinflation is applied, the end of period exchange rate as of March 31, 2025 is used. These rates, together with changes at current exchange rates, can be found in the attached tables of financial statements and relevant business indicators. When making comments referring to Europe in this area, Spain is excluded.
Activity
The most relevant aspects related to the area's activity in the first quarter of 2025 were:
- Lending stood at the end of March 2025, 4.6% above the balance at December 31,2024, continuing the upward trend shown in recent quarters. It was observed a particularly strong growth both in transactional business and in Investment Banking & Finance (IB&F). Spain, the United States and Mexico drove this growth, with outstanding operations in project finance and corporate lending.
- Customer funds grew by +7.1% during the first quarter of the year 2025, with good performance in almost all geographical areas.
Results
CIB generated a net attributable profit of €828m in the first three months of 2025, up 41.5% year-on-year, reflecting the strength of the Group's wholesale businesses, with the aim of offering a value proposition focused on the needs of its customers17.
All business divisions posted double-digit revenue growth: Global Markets, supported by the good performance of equities and currencies; Global Transaction Banking (GTB), thanks to the positive evolution of recurring revenues, mainly net interest income; and an excellent quarter in IB&F, with unique operations in fees and commissions and good performance of net interest income.
The most relevant aspects of the year-on-year income statement evolution of this aggregate as of end of March 2025 are summarized below:
- Net interest income grew by 40.3%, thanks to the growth of the portfolio and an adequate price management. By geographical areas, Mexico and Turkey show a stronger growth, as well as Rest of Business.
- Net fees and commissions grew by 20.7%, especially in the primary debt market, treasury management in Mexico and relevant operations in project finance and corporate lending.
- In the NTI line (+37.3%), the Global Markets unit showed a favorable evolution. Equity and currency trading stood out in the quarter. Commercial activity showed growth compared to the same period of the previous year, with special mention to the evolution in the United States, followed by South America.
- Operating expenses increased by 20.3% due to higher personnel expenses associated with strategic plans and new capacities, as well as growth in technology expenses, associated with the execution of strategic projects for the area. However, the efficiency ratio stood at 25.3% at the end of March, which represents an improvement of 332 basis points compared to the first three months of 2024, thanks to the strong growth in gross margin.
- Provisions for impairment on financial assets line recorded a provision of €24m, mainly originated in Europe, which compares with the €35m released in the previous year (28 at constant exchange rates).
17 CIB results do not include the application of hyperinflation accounting.