Corporate Center

The Corporate Center basically includes: the costs of the head offices that have a corporate function; management of structural exchange-rate positions; specific issues of equity instruments to ensure adequate management of the Group's global solvency; portfolios and their corresponding earnings, whose management is not linked to customer relations, such as industrial holdings; certain tax assets and liabilities; funds due to commitments with employees; goodwill and other intangibles. The Corporate Center's income statement has been influenced mainly by:

  • Greater contribution from NTI than in the same period last year, mainly due to the booking in the first quarter of 2017 of €204m before tax (€174m after tax) in capital gains from the sale on the market of 1.7% of CNCB.
  • Payment of the Telefónica dividend in the second quarter (€53m). The amount is lower than that paid in the second quarter of 2016 as a result of the reduction of the dividend paid by the entity (from €0.4 to €0.2 per share).
  • Containment of operating expenses, which declined 2.7% year-on-year.

Overall, the Corporate Center posted a cumulative negative result of €401m, compared with a bigger loss of €520m in the first half of 2016.

Financial statements (Million euros. Percentage)

Income statement 1H17 ∆% 1H16
Net interest income (190) (22.3) (245)
Net fees and commissions (47) (14.2) (55)
Net trading income 244 172.7 89
Other income/expenses 36 (55.4) 80
Gross income 42 n.s. (130)
Operating expenses (439) (2.7) (451)
Personnel expenses (238) 3.0 (231)
Other administrative expenses (45) (27.9) (63)
Depreciation (156) (1.0) (158)
Operating income (397) (31.7) (582)
Impairment on financial assets (net) (1) (97.5) (26)
Provisions (net) and other gains (losses) (49) (40.0) (81)
Profit/(loss) before tax (447) (35.1) (688)
Income tax 61 (64.4) 171
Profit/(loss) for the year (386) (25.4) (517)
Non-controlling interests (15) n.s. (3)
Net attributable profit (401) (22.9) (520)
Balance sheets 30-06-17 ∆% 31-12-16
Cash, cash balances at central banks and other demand deposits 2 n.s. (2)
Financial assets 1,784 6.5 1,675
Loans and receivables - - 130
of which loans and advances to customers - - 130
Inter-area positions (5,025) 7.9 (4,658)
Tangible assets 1,961 (3.1) 2,023
Other assets 19,939 4.8 19,017
Total assets/liabilities and equity 18,662 2.6 18,186
Financial liabilities held for trading and designated at fair value through profit or loss - - -
Deposits from central banks and credit institutions 11 n.s. -
Deposits from customers - - -
Debt certificates 9,245 (11.9) 10,493
Inter-area positions (18,270) (4.9) (19.217)
Other liabilities 651 (75,6) 2,666
Economic capital allocated (25,739) (3.1) (26,559)
Shareholders' funds 52,764 3.9 50,803