Results

• General growth of more recurring revenues in practically all geographic areas.
• Lower contribution from net trading income (NTI).
• Operating expenses under control and improvement in the efficiency ratio in comparison with the same period the previous year.
• Impairment losses on financial assets below the figure for the first half of 2016.
• Provisions (net) and Other gains (losses) higher than in the same period last year due to allocation for restructuring costs.
• As a result, the net attributable profit in the first half of 2017 is €2,306m, 25.9% up on the first six months of 2016.

Net attributable profit (Million euros)

Net attributable profit breakdown ⁽¹⁾ (Percentage. 1H 2017)

⁽¹⁾ Excludes the Corporate Center.

⁽²⁾ Includes the areas Banking activity in Spain and Non Core Real Estate.

Balance sheet and business activity

• Loans and advances to customers (gross) continue to increase in emerging economies but decline in Spain (albeit less than in previous periods) and the United States.
• Non-performing loans continue to improve, particularly in Spain, the United States and Turkey.
• Deposits from customers have again performed well in the more liquid and lower-cost items.
• In off-balance sheet customer funds, the trend in mutual funds continues to be positive.

Solvency

• The capital position is above regulatory requirements, with a fully-loaded CET1 ratio of 11.1% as of 30-Jun-2017 above the established target of 11%. Year-to-date, this ratio has increased by 20 basis points primarily due to organic generation of earnings and a reduction of risk-weighted assets (RWAs).
• One issue of instruments that are eligible as additional Tier 1 capital for €500m with a coupon of 5.875%, and a number of issues that are eligible as Tier 2.

Capital and leverage ratios (Percentage as of 30-06-17)

Risk management

• Positive trend in the metrics related to the credit-risk management in the first six months of the year (stability in the second quarter): as of 30-Jun-2017, the NPL ratio closed at 4.8%, the NPL coverage ratio at 71% and the cumulative cost of risk at 0.92%.

NPL and coverage ratios (Percentage)

Transformation

• The Group's digital and mobile customer base (up 22% and 42% year-on-year, respectively, according to latest available data) continues to increase, as do digital sales in all the geographic areas where BBVA operates.

Digital and mobile costumers ⁽¹⁾(Millions)

⁽¹⁾ Figures in Spain and the United States have been restated.