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 |