Earnings

The most relevant aspects of earnings in this area in the first half of 2012 are summarized below:

Cumulative net interest income was a negative €185m, compared with a negative €281m in the first six months of 2011. This improvement is mainly due to the positive management of structural interest-rate risk in an environment of falling interest rates that benefited this management.
Favorable performance of NTI, basically as a result of the capital gains recorded on the repurchase of securitization bonds. As a result, NTI increased 26.3% year-on-year to €287m.
Receipt of the Telefónica dividend in the second quarter.
Operating expenses continue to reflect the Group’s investment effort in staff training, technology, brand and infrastructure. They amounted to a cumulative €518m to June, 10.7% up on the figure 12 months earlier.
Provisions booked for further clean-up of real estate and foreclosed assets continue to grow.
As a result, net attributable profit was a negative €658m, compared with a negative €579m in the first half of 2011.

Tables

Income statement

(Million euros)

	Corporate Activities
	1H12	Δ%	1H11
Net interest income	(185)	(34.3)	(281)
Net fees and commissions	(162)	40.9	(115)
Net trading income	287	26.3	227
Other income/expenses	171	(3.6)	178
Gross income	111	n.m.	8
Operating costs	(518)	10.7	(469)
Personnel expenses	(295)	14.9	(257)
General and administrative expenses	(62)	(24.8)	(82)
Deprecation and amortization	(162)	24.7	(130)
Operating income	(408)	(11.5)	(460)
Impairment on financial assets (net)	(36)	(50.9)	(74)
Provisions (net) and other gains (losses)	(580)	21.3	(478)
Income before tax	(1,024)	1.1	(1,012)
Income tax	365	(15.4)	431
Net income	(658)	13.3	(581)
Non-controlling interests	1	(50.3)	2
Net attributable profit	(658)	13.5	(579)
Adjusted ⁽¹⁾	(76)	-	(108)
Net attributable profit (adjusted) ⁽¹⁾	(582)	23.6	(471)

Balance sheet

(Million euros)

	Corporate Activities
	30-06-12	Δ%	30-06-11
Cash and balances with central banks	(323)	24.6	(259)
Financial assets	30,016	14.5	26,211
Loans and receivables	(1,874)	(64.4)	(5,262)
Loans and advances to customers	39	n.m.	(2,816)
Loans and advances to credit institutions and other	(1,913)	(21.8)	(2,446)
Inter-area positions	(299)	(95.3)	(6,382)
Tangible assets	3,207	3.9	3,087
Other assets	19,887	11.8	17,781
Total assets/Liabilities and equity	50,615	43.9	35,176
Deposits from central banks and credit institutions	25,108	n.m.	(7,770)
Deposits from customers	21,298	(12.6)	24,357
Debt certificates	65,226	(18.4)	79,957
Subordinated liabilities	2,970	(47.4)	5,641
Inter-area positions	(64,834)	(5.9)	(68,915)
Financial liabilities held for trading	(4,740)	26.2	(3,756)
Other liabilities	(8,881)	73.2	(5,129)
Valuation adjustments	(2,835)	9.2	(2,596)
Shareholders’ funds	42,946	16.3	36,925
Economic capital allocated	(25,643)	8.9	(23,538)