Business areas

Business areas

Spain
€4,646M*
+2.9%
Mexico
€7,754M*
+24.9% (2)
Turkey
€2,357M*
+81.9% (2)
South America
€3,167M*
+38.9%(3)
Rest of business
€585M*
-8.7% (3)

Spain

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€4,646 Mill.*

+2.9%


Highlights

  • Growth in lending activity in the year
  • Significant improvement in efficiency
  • Favorable evolution of net interest income and improvement in the customer spread
  • Solid risk indicators with a decrease in the balance of non-performing loans and the NPL ratio

Results
(Millions of euros)

Net interest income
2,695
+2.3% (2)
Gross income
4,646
+2.9% (2)
Operating income
2,489
+10.2% (2)
Net attributable profit (3)
1,514
+27.1%(2)

Activity (1)

Variation compared to 31-12-21.
Balances as of 30-09-22.

Performing loans and advances to customers under mangement
+3.1%
Customers funds under management
 
-0.8%

Risks

NPL coverage ratio
62%
64%
NPL ratio
4.2%
3.9%
Cost of risk
0.30%
0.24%
DEC 21
SEP 22



(1) Excluding repos.
(2) Year-on-year changes.
(3) The net attributable profit excludes the net impact arisen from the purchase of offices in Spain. Including this impact, the net attributable profit stands at €808m, representing a year-on-year increase of 11.5%.

Mexico

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€7.754 Mill.*

+24.9%


Highlights

  • Balanced investment growth in the first nine months
  • Good performance of recurring income and NTI
  • Significant improvement in the efficiency ratio
  • Excellent net attributable profit in the quarter

Results
(Millions of euros)

Net interest income
5,921
+23.9% (2)
Gross income
7,754
+24.9% (2)
Operating income
5,284
+31.7% (2)
Net attributable profit
2,964
+47.5% (2)

Activity (1)

Variation compared to 31-12-21 at constant exchange rate.
Balances as of 30-09-22.

Performing loans and advances to customers under mangement
+12,6%
Customers funds under management
 
+2,6%

Risks

NPL coverage ratio
106%
133%
NPL ratio
3.2%
2.5%
Cost of risk
2.67%
2.57%
DEC 21
SEP 22


(1) Excluding repos.
(2) Year-on-year changes at constant exchange rate.

Turkey

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1,163 Mill.*

+104.2%


Highlights

  • Growth in activity, again driven by loans and deposits in Turkish lira
  • Lower hyperinflation adjustment in the quarter
  • Strength of risk indicators
  • Year-on-year growth in net attributable profit

Results
(Millions of euros)

Net interest income
1,976
+122.9% (2)
Gross income
2,357
+81.9% (2)
Operating income
1,567
+73.8% (2)
Net attributable profit
Resultado atribuido
336
+7.4% (2)

Activity (1)

Variation compared to 31-12-21 at constant exchange rate.
Balances as of 30-09-22.

Performing loans and advances to customers under mangement
+41.6%
Customers funds under management
 
+48.3%

Risks

NPL coverage ratio
75%
86%
NPL ratio
7.1%
5.6%
Cost of risk
1.33%
0.89%
DEC 21
SEP 22


(1) Excluding repos.
(2) Year-on-year changes at constant exchange rate.

South America

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€3,167 Mill.*

+38.9%


Highlights

  • Growth in lending activity and customer funds
  • Improvement of the NPL ratio and coverage stability
  • Favorable behavior of net interest income and NTI in the quarter
  • Stability of the efficiency ratio in the quarter despite the growth of expenses in an inflationary environment

Results
(Millions of euros)

Net interest income
3,074
+51.8% (2)
Gross income
3,167
+38.9% (2)
Operating income
1,674
+39.5% (2)
Net attributable profit
614
+98.3% (2)

Activity (1)

Variation compared to 31-12-21 at constant exchange rates.
Balances as of 30-09-22.

Performing loans and advances to customers under mangement
+10.2%
Customers funds under management
 
+12.6%

Risks

NPL coverage ratio
99%
100%
NPL ratio
4.5%
4.1%
Cost of risk
1.65%
1.43%
DEC 21
SEP 22


(1) Excluding repos.
(2) Year-on-year changes at constant exchange rates.

Rest of business

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€585 Mill.*

-8.7%


Highlights

  • Growth in lending activity and in customer funds in the first nine months of 2022
  • Strong net interest income, which grows at double-digit
  • Increase in operating expenses
  • The cost of risk remains at low levels

Results
(Millions of euros)

Net interest income
244
+10.7% (2)
Gross income
585
-8.7% (2)
Operating income
217
-25.9% (2)
Net attributable profit
183
-24.8% (2)

Activity (1)

Variation compared to 31-12-21 at constant exchange rates.
Balances as of 30-09-22.

Performing loans and advances to customers under mangement
+26.2%
Customers funds under management
 
+27.8%

Risks

NPL coverage ratio
116%
158%
NPL ratio
0.7%
0.4%
Cost of risk
-0.11%
0.02%
DEC 21
SEP 22


(1) Excluding repos.
(2) Year-on-year changes at constant exchange rates.

* Gross income
(1) Net attributable profit excludes the net impact of the acquisition of offices in Spain. Including this impact, net attributable profit came to 1,312 million euros, an increase of 10.2% year-on-year.
(2) At constant exchange rates.
(3) At constant exchange rates.

Data at the end of September 2022. Those countries in which BBVA has no legal entity or the volume of activity is not significant, are not included.

This section presents the most relevant aspects of the Group's different business areas. Specifically, for each one of them, it shows a summary of the income statements and balance sheets, the business activity figures and the most significant ratios.

The structure of the business areas reported by the BBVA Group as of September 30, 2022, is identical with the one presented at the end of 2021.

The composition of BBVA Group business areas is summarized below:

  • Spain mainly includes the banking and insurance businesses that the Group carries out in this country, including the proportional share of the results of the company created from the bancassurance agreement reached with Allianz at the end of 2020.
  • Mexico includes banking and insurance businesses in this country, as well as the activity that BBVA Mexico carries out through its branch in Houston.
  • Turkey reports the activity of the group Garanti BBVA that is mainly carried out in this country and, to a lesser extent, in Romania and the Netherlands.
  • South America mainly includes banking and insurance activity conducted in the region.
  • Rest of Business mainly incorporates the wholesale activity carried out in Europe (excluding Spain) and in the United States, as well as the banking business developed through BBVA’s branches in Asia.

The Corporate Center contains the centralized functions of the Group, including: the costs of the head offices with a corporate function; structural exchange rate positions management; portfolios whose management is not linked to customer relations, such as financial and industrial holdings; stakes in Funds & Investment Vehicles in tech companies; certain tax assets and liabilities; funds due to commitments to employees; goodwill and other intangible assets as well as such portfolios and assets' funding. Additionally, the results obtained by BBVA USA and the rest of the companies included in the sale agreement to PNC until the closing of the transaction on June 1, 2021, are presented in a single line of the income statements called “Profit (loss) after taxes from discontinued operations”. Finally, the costs related to the BBVA, S.A. restructuring process carried out in Spain during the first half of the year 2021, are included in this aggregate and are recorded in the line "Net cost related to the restructuring process".

In addition to these geographical breakdowns, supplementary information is provided for the wholesale business carried out by BBVA, Corporate & Investment Banking (CIB), in the countries where it operates. This business is relevant to have a broader understanding of the Group's activity and results due to the important features of the type of customers served, products offered and risks assumed.

The information by business areas is based on units at the lowest level and/or companies that make up the Group, which are assigned to the different areas according to the main region or company group in which they carry out their activity. With regard to the information related to the business areas, in the first quarter of 2022 the Group changed the allocation criteria for certain expenses related to global technology projects between the Corporate Center and the business areas, therefore, to ensure that year-on-year comparisons are homogeneous, the figures corresponding to the financial year 2021 have been restated, which did not affect the consolidated financial information of the Group. Also in the first quarter of 2022, an equity team from the Global Markets unit was transferred from Spain to New York, with the corresponding transfer of the costs associated with this relocation from the Spain area to the Rest of Business area.

Regarding the shareholders' funds allocation, in the business areas, a capital allocation system based on the consumed regulatory capital is used.

Finally, it should be noted that, as usual, in the case of the different business areas, that is, Mexico, Turkey, South America and Rest of Business, and, additionally, CIB, in addition to the year-on-year variations applying current exchange rates, the variations at constant exchange rates are also disclosed.

Main income statement line items by business area (Millions of euros)

Business areas
BBVA
Group		 Spain Mexico Turkey South
America		 Rest of
Business		 ∑ Business areas Corporate Center
Jan.-Sep. 22
Net interest income 13,811 2,695 5,921 1,976 3,074 244 13,908 (97)
Gross income 18,366 4,646 7,754 2,357 3,167 585 18,510 (144)
Operating income 10,494 2,489 5,284 1,567 1,674 217 11,232 (737)
Profit (loss) before tax 7,909 2,120 3,962 1,211 1,129 229 8,651 (741)
Net attributable profit (loss) excluding
non-recurring impacts(1)		 5,044 1,514 2,964 336 614 183 5,610 (566)
Net attributable profit (loss) 4,842 1,312 2,964 336 614 183 5,408 (566)
Jan.-Sep. 21 (2)
Net interest income 10,708 2,634 4,280 1,651 2,061 211 10,836 (128)
Gross income 15,589 4,514 5,558 2,414 2,294 605 15,384 206
Operating income 8,613 2,259 3,592 1,679 1,204 278 9,012 (398)
Profit (loss) before tax 6,182 1,616 2,534 1,503 649 294 6,595 (413)
Net attributable profit (loss) excluding
non-recurring impacts(1) 		3,727 1,191 1,799 583 327 229 4,129 (401)
Net attributable profit (loss) 3,311 1,191 1,799 583 327 229 4,129 (817)
  • (1) Non-recurring impacts include: (I) the net impact arisen from the purchase of offices in Spain in 2022; (II) the net costs related to the restructuring process; and (III) the profit (loss) after tax from discontinued operations derived from the sale of BBVA USA and the rest of the companies in the United States to PNC on June 1, 2021.
  • (2) Restated balances.

GROSS INCOME(1), OPERATING INCOME(1) AND NET ATTRIBUTABLE PROFIT(1) BREAKDOWN (PERCENTAGE. 1H22)

(1) Excludes the Corporate Center and the net impact arisen from the purchase of offices in Spain.

MAIN BALANCE-SHEET ITEMS AND RISK-WEIGHTED ASSETS BY BUSINESS AREA (MILLIONS OF EUROS)

Business areas
BBVA
Group		 Spain Mexico Turkey South
America		 Rest of
business		 ∑ Business areas Corporate Center Deletions
30-09-22
Loans and advances
to customers		 361,731 176,152 73,530 36,898 41,017 35,319 362,917 161 (1,347)
Deposits from customers 389,705 212,863 76,623 47,198 44,547 8,751 389,981 185 (461)
Off-balance sheet funds 150,504 85,181 40,251 5,571 18,976 524 150,502 3 -
Total assets/ liabilities and equity 738,680 437,454 152,096 68,404 69,097 47,532 774,583 21,508 (57,411)
RWAs 341,685 108,733 80,491 53,435 51,484 35,559 329,702 11,983 -
31-12-21
Loans and advances
to customers		 318,939 171,081 55,809 31,414 34,608 26,965 319,877 1,006 (1,945)
Deposits from customers 349,761 206,663 64,003 38,341 36,340 6,266 351,613 175 (2,027)
Off-balance sheet funds 147,192 94,095 32,380 3,895 16,223 597 147,190 2 -
Total assets/ liabilities and equity 662,885 413,430 118,106 56,245 56,124 40,328 684,233 30,835 (52,182)
RWAs 307,795 113,797 64,573 49,718 43,334 29,280 300,703 7,092 -

Number of employees

Number of branches

Number of ATMs