Business areas

Business areas

Spain
€6,145M*
+4.3%
Mexico
€10,839M*
+25.9% (1)
Turkey
€3,185M*
+76.9% (1)
South America
€4,261M*
+45.1%(2)
Rest of business
€790M*
-1.1% (2)

Spain

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€6,145 Mill.*

+4.3%


Highlights

  • Lending growth in the most profitable segments in 2022
  • Double-digit operating income growth
  • Significant improvement in efficiency in the year
  • Solid risk indicators, with a reduction of both the non-performing loans balance and the NPL ratio in 2022

Results
(Millions of euros)

Net interest income
3,784
+8.1% (2)
Gross income
6,145
+4.3% (2)
Operating income
3,226
+13.3% (2)
Net attributable profit
1,678
+8.4%(2)

Activity (1)

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

Performing loans and advances to customers under mangement
+1.8%
Customers funds under management
 
+2.1%

Risks

NPL coverage ratio
62%
61%
NPL ratio
4.2%
3.9%
Cost of risk
0.30%
0.28%
DEC 21
DEC 22



(1) Excluding repos.
(2) Year-on-year changes.

Mexico

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€10,839 Mill.*

+25.9%


Highlights

  • Balanced and double-digit growth in both the wholesale and retail portfolio in the year
  • Very positive performance of recurring income due to increased activity and improved customer spreads
  • Risk indicators improvement and outstanding performance of the efficiency ratio
  • Constant increase in the quarterly net attributable profit

Results
(Millions of euros)

Net interest income
8,378
+26.8% (2)
Gross income
10,839
+25.9% (2)
Operating income
7,406
+33.0% (2)
Net attributable profit
4,182
+44.8% (2)

Activity (1)

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

Performing loans and advances to customers under mangement
+16.5%
Customers funds under management
 
+8.2%

Risks

NPL coverage ratio
106%
129%
NPL ratio
3.2%
2.5%
Cost of risk
2.67%
2.47%
DEC 21
DEC 22


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

Turkey

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3,185 Mill.*

+76.9%


Highlights

  • Acceleration of local currency portfolio and reduction of exposure to foreign currency portfolios
  • Lower hyperinflation adjustment in the quarter
  • Strength of risk indicators
  • Quarterly growth in net attributable profit

Results
(Millions of euros)

Net interest income
2,631
+110.9% (2)
Gross income
3,185
+76.9% (2)
Operating income
2,119
+66.9% (2)
Net attributable profit
509
+31.0% (2)

Activity (1)

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

Performing loans and advances to customers under mangement
+59.2%
Customers funds under management
 
+63.0%

Risks

NPL coverage ratio
75%
90%
NPL ratio
7.1%
5.1%
Cost of risk
1.33%
0.94%
DEC 21
DEC 22


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

South America

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€4,261 Mill.*

+45.1%


Highlights

  • Growth in lending activity and customer funds
  • NPL and NPL coverage ratio improvement in the quarter
  • Favorable behavior of recurring income in the quarter
  • Improvement of the efficiency ratio

Results
(Millions of euros)

Net interest income
4,137
+57.7% (2)
Gross income
4,261
+45.1% (2)
Operating income
2,284
+50.5% (2)
Net attributable profit
734
+80.0% (2)

Activity (1)

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

Performing loans and advances to customers under mangement
+13.7%
Customers funds under management
 
+14.0%

Risks

NPL coverage ratio
99%
101%
NPL ratio
4.5%
4.1%
Cost of risk
1.65%
1.69%
DEC 21
DEC 22


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

Rest of business

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€790 Mill.*

-1.1%


Highlights

  • Growth in lending activity and in customer funds in 2022
  • Strong net interest income, which grows at double-digit
  • Risk indicators improvement in the year
  • Cost of risk at very low levels

Results
(Millions of euros)

Net interest income
332
+15.5% (2)
Gross income
790
-1.1% (2)
Operating income
276
-16.2% (2)
Net attributable profit
240
-15.1% (2)

Activity (1)

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

Performing loans and advances to customers under mangement
+36.5%
Customers funds under management
 
+47.2%

Risks

NPL coverage ratio
116%
131%
NPL ratio
0.7%
0.4%
Cost of risk
-0.11%
0.04%
DEC 21
DEC 22


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

* Gross income
(1) At constant exchange rate.
(2) At constant exchange rates.

Data at the end of December 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 December 31, 2022, is identical with the one presented at the end of 2021.

The composition of BBVA Group's business areas is summarized below:

  • Spain mainly includes the banking, insurance and asset management activities that the Group carries out in this country, including the proportional share of the results of the company arisen from the bancassurance agreement reached with Allianz at the end of 2020.
  • Mexico includes banking, insurance and asset management activities in this country, as well as the activity that BBVA Mexico carries out through its agency 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 includes banking, financial, insurance and asset management activities conducted, mainly, in Argentina, Chile, Colombia, Peru, Uruguay and Venezuela.
  • Rest of Business mainly incorporates the wholesale activity carried out in Europe (excluding Spain), the United States, and 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 of 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.

GROSS INCOME(1), OPERATING INCOME(1) AND NET ATTRIBUTABLE PROFIT(1) BREAKDOWN (PERCENTAGE. 2022)

(1) Excludes the Corporate Center.

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
2022
Net interest income 19,153 3,784 8,378 2,631 4,137 332 19,263 (109)
Gross income 24,890 6,145 10,839 3,185 4,261 790 25,219 (329)
Operating income 14,130 3,226 7,406 2,119 2,284 276 15,311 (1,181)
Profit (loss) before tax 10,490 2,625 5,690 1,644 1,429 277 11,665 (1,175)
Net attributable profit (loss) excluding
non-recurring impacts(1)		 6,621 1,879 4,182 509 734 240 7,544 (922)
Net attributable profit (loss) 6,420 1,678 4,182 509 734 240 7,342 (922)
2021 (2)
Net interest income 14,686 3,501 5,836 2,370 2,859 283 14,849 (163)
Gross income 21,066 5,890 7,603 3,422 3,162 776 20,854 212
Operating income 11,536 2,847 4,921 2,412 1,639 323 12,143 (607)
Profit (loss) before tax 8,240 2,075 3,505 1,952 940 346 8,817 (577)
Net attributable profit (loss) excluding
non-recurring impacts(1) 		5,069 1,548 2,551 739 476 276 5,590 (522)
Net attributable profit (loss) 4,653 1,548 2,551 739 476 276 5,590 (938)
  • (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.

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
31-12-22
Loans and advances
to customers		 358,023 174,031 71,754 37,443 38,526 37,375 359,128 278 (1,383)
Deposits from customers 393,856 220,471 77,750 46,339 40,042 9,827 394,430 187 (760)
Off-balance sheet funds 150,172 86,759 38,196 6,936 17,760 520 150,170 2 -
Total assets/ liabilities and equity 713,140 427,193 143,405 66,043 62,067 49,952 748,660 22,719 (58,239)
RWAs 337,102 114,474 71,738 56,275 46,834 35,064 324,385 12,718 —
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