Rest of Business
Highlights
- Dynamism of lending activity in all geographical areas in the first half of the year
- Favorable evolution of recurring revenues
- Positive behavior of risk indicators
- Year-on-year improvement in cumulative attributable profit in the first half of the year
BUSINESS ACTIVITY (1) (VARIATION AT CONSTANT EXCHANGE RATES COMPARED TO 31-12-24)
(1) Excluding repos.
NET INTEREST INCOME / AVERAGE TOTAL ASSETS
(PERCENTAGE AT CONSTANT EXCHANGE RATES)
OPERATING INCOME
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +19.4%.
NET ATTRIBUTABLE PROFIT (LOSS)
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +26.3%.
| FINANCIAL STATEMENTS AND RELEVANT BUSINESS INDICATORS (MILLIONS OF EUROS AND PERCENTAGE) | ||||
|---|---|---|---|---|
| Income statement | 1H25 | 𝚫 % | 𝚫 % (1) | 1H24 (2) |
| Net interest income | 376 | 12.0 | 14.9 | 335 |
| Net fees and commissions | 277 | 54.6 | 57.5 | 179 |
| Net trading income | 176 | 4.1 | 7.6 | 169 |
| Other operating income and expenses | 1 | (31.6) | 0.0 | 2 |
| Gross income | 831 | 21.1 | 24.3 | 686 |
| Operating expenses | (398) | 22.9 | 25.5 | (324) |
| Personnel expenses | (206) | 24.5 | 27.5 | (166) |
| Other administrative expenses | (174) | 21.2 | 23.3 | (143) |
| Depreciation | (18) | 21.9 | 24.0 | (15) |
| Operating income | 433 | 19.4 | 23.2 | 362 |
| Impairment on financial assets not measured at fair value through profit or loss | (37) | (20.6) | (19.7) | (46) |
| Provisions or reversal of provisions and other results | (2) | (20.4) | (15.9) | (3) |
| Profit (loss) before tax | 394 | 25.7 | 30.0 | 313 |
| Income tax | (90) | 23.6 | 27.5 | (73) |
| Profit (loss) for the period | 304 | 26.3 | 30.7 | 240 |
| Non-controlling interests | — | — | — | — |
| Net attributable profit (loss) | 304 | 26.3 | 30.7 | 240 |
| Balance sheets | 30-06-25 | 𝚫 % | 𝚫 % (1) | 31-12-24 |
| Cash, cash balances at central banks and other demand deposits | 5,872 | (29.7) | (21.1) | 8,348 |
| Financial assets designated at fair value | 1,720 | 5.7 | 12.2 | 1,627 |
| Of which: Loans and advances | 1,083 | 18.5 | 28.1 | 914 |
| Financial assets at amortized cost | 61,908 | 10.5 | 15.1 | 56,013 |
| Of which: Loans and advances to customers | 55,974 | 11.1 | 15.8 | 50,392 |
| Inter-area positions | — | — | — | — |
| Tangible assets | 205 | (0.2) | 8.1 | 206 |
| Other assets | 462 | 35.3 | 41.6 | 341 |
| Total assets/liabilities and equity | 70,167 | 5.5 | 10.9 | 66,534 |
| Financial liabilities held for trading and designated at fair value through profit or loss | 902 | 40.5 | 57.5 | 642 |
| Deposits from central banks and credit institutions | 2,736 | 36.6 | 43.8 | 2,002 |
| Deposits from customers | 26,033 | (5.1) | (1.5) | 27,432 |
| Debt certificates | 1,585 | (7.9) | (3.5) | 1,721 |
| Inter-area positions (3) | 33,059 | 17.7 | 25.1 | 28,091 |
| Other liabilities (3) | 1,300 | (19.4) | (13.7) | 1,613 |
| Regulatory capital allocated | 4,553 | (9.5) | (5.2) | 5,033 |
| Relevant business indicators | 30-06-25 | 𝚫 % | 𝚫 % (1) | 31-12-24 |
| Performing loans and advances to customers under management (4) | 56,039 | 11.2 | 16.0 | 50,393 |
| Non-performing loans | 166 | (22.0) | (22.0) | 213 |
| Customer deposits under management (4) | 26,033 | (5.1) | (1.5) | 27,432 |
| Off-balance sheet funds (5) | 682 | 5.8 | 5.8 | 645 |
| Risk-weighted assets | 38,687 | (12.9) | (8.6) | 44,407 |
| RORWA (6) | 1.62 | 1.30 | ||
| Efficiency ratio (%) | 47.9 | 50.4 | ||
| NPL ratio (%) | 0.2 | 0.3 | ||
| NPL coverage ratio (%) | 140 | 102 | ||
| Cost of risk (%) | 0.15 | 0.17 | ||
| (1) At constant exchange rate. (2) Revised balances. For more information, please refer to the “Business Areas” section. (3) Revised balances in 2024. (4) Excluding repos. (5) Includes pension funds. (6) For more information on the methodology, as well as the calculation of the metric at the consolidated Group level, see Alternative Performance Measures at this report. |
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Unless expressly stated otherwise, all the comments below on rates of change, for both activity and results, will be given at constant exchange rates. These rates, together with the changes at current exchange rates, can be found in the attached tables of the financial statements and relevant business indicators. Comments that refer to Europe exclude Spain.
Activity
The most relevant aspects of the evolution of BBVA Group's Rest of Business activity during the first half of 2025 were:
Lending activity (performing loans under management) grew 16.0%, thanks to the favorable evolution of project finance as well as corporate lending, highlighting both the New York branch and Asia.
Customer funds under management recorded a decrease of 1.3%, originated in the deposits of the New York branch.
The most relevant aspects of the evolution of BBVA Group's Rest of Business activity during the second quarter of 2025 were:
Lending activity (performing loans under management) grew at a rate of 14.9%, mainly due to the evolution of corporate loans (+12.5%). In terms of geographical areas, growth was particularly strong in Asia, followed by the New York branch and lastly Europe.
On the other hand, compared to the end of March, the NPL ratio decreased to 0.2%, while the coverage ratio increased to 140%, an increase of 3,076 basis points in the quarter due to the reduction of the doubtful balance as a result of the improvement in two singular customers.
Customer funds under management recorded a decrease of 4.9%, due to lower customer deposits in Europe and New York, partially offset by growth in Asia.
Results
Rest of Business achieved an accumulated net attributable profit of €304m during the first half of 2025, 30.7% higher than in the same period of the previous year, favored by the evolution of the recurrent revenues and the NTI, which widely offset the increase in operating expenses.
In the year-on-year evolution of the main lines of the area's income statement at the end of June 2025, the following was particularly noteworthy:
Net interest income grew by 14.9% as a result of increased activity volumes and appropriate price management. By countries, growth in the New York branch stood out.
Net fees and commissions increased by 57.5%, particularly from issuance activity in the primary debt market and relevant operations in project finance and corporate loans.
The NTI grew by 7.6% supported by the strong performance of Global Markets in New York, especially in the equity, interest rates and credit brokerage business.
Increase in operating expenses of 25.5%, with growth mainly in the United States and in Europe due to new hires and investment in strategic projects.
The impairment on financial assets line at the end of June 2025 recorded a balance of €-37m, figure which places below the same period of the previous year, mainly originated in the lower provisions in Europe.
In the second quarter of 2025 and excluding the effect of the exchange rates fluctuations, the Group's Rest of Businesses as a whole generated a net attributable profit of €138m, 16.9% below to the previous quarter. In the quarterly evolution, the good performance of recurring income was offset by a lower NTI. On the other hand, growth in expenses associated with strategic plans.
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