Business areas
Spain
€1,726 Mill.*
+4.3%
Highlights
- Seasonal drop in lending
- Significant improvement in net interest income
- Recording of the temporary tax on credit institutions for the financial year 2023
- Cost of risk remains at low levels, in line with the end of 2022
Results
(Millions of euros)
Net interest income
1,183Gross income
1,726Operating income
974Net attributable profit
541Activity (1)
Variation compared to 31-12-22.
Balances as of 31-03-23.
Performing loans and advances to customers under mangement
-1.2%
Customers funds under management
-1.0%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year-on-year changes.
Mexico
€3,306 Mill.*
+29.2%
Highlights
- Favorable performance of the portfolio, with greater dynamism of the retail segment
- Increase in net interest income as a result of effective spread management
- Outstanding evolution of the efficiency ratio
- Significant growth in net attributable profit
Results
(Millions of euros)
Net interest income
2,589Gross income
3,306Operating income
2,318Net attributable profit
1,285Activity (1)
Variation compared to 31-12-22 at constant exchange
rate.
Balances as of 31-03-23.
Performing loans and advances to customers under mangement
+2.3%
Customers funds under management
+1.3%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year-on-year changes at constant exchange rate.
Turkey
802 Mill.*
n.s.
Highlights
- Significant de-dollarization of the balance sheet
- Improved risk indicators compared to year-end 2022
- Net attributable profit positively affected by lower income tax
Results
(Millions of euros)
Net interest income
626Gross income
802Operating income
403Net attributable profit
277Activity (1)
Variation compared to 31-12-22 at constant exchange
rate.
Balances as of 31-03-23.
Performing loans and advances to customers under mangement
+9.5%
Customers funds under management
+14.0%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year-on-year changes at constant exchange rate.
South America
€1,175 Mill.*
+66.1%
Highlights
- Growth in lending activity and customer funds
- Favorable performance of recurring income
- Higher adjustment for hyperinflation in Argentina
- Improvement of the efficiency ratio
Results
(Millions of euros)
Net interest income
1,190Gross income
1,175Operating income
642Net attributable profit
184Activity (1)
Variation compared to 31-12-22 at constant exchange
rates.
Balances as of 31-03-23.
Performing loans and advances to customers under mangement
+2.9%
Customers funds under management
+4.6%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year-on-year changes at constant exchange
rates.
Rest of business
€260 Mill.*
+27.3%
Highlights
- Growth in lending activity in the New York branch and in customer funds
- Recurring income dynamism
- NPL ratio and cost of risk remain at low levels
- Improved efficiency
Results
(Millions of euros)
Net interest income
113Gross income
260Operating income
122Net attributable profit
92Activity (1)
Variation compared to 31-12-22 at constant exchange
rates.
Balances as of 31-03-23.
Performing loans and advances to customers under mangement
-3.4%
Customers funds under management
+2.9%
Risks
NPL coverage ratio
NPL ratio
Cost of risk
(1) Excluding repos.
(2) Year-on-year changes at constant exchange
rates.
* Gross income
(1) At constant exchange rate.
(2) At constant exchange rates.
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 March 31, 2023, is identical with the one presented at the end of 2022.
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.
- 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.
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.
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. 1Q23)
(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 | ||
1Q23 | |||||||||
Net interest income | 5,642 | 1,183 | 2,589 | 626 | 1,190 | 113 | 5,702 | (60) | |
Gross income | 6,958 | 1,726 | 3,306 | 802 | 1,175 | 260 | 7,269 | (311) | |
Operating income | 3,942 | 974 | 2,318 | 403 | 642 | 122 | 4,458 | (516) | |
Profit (loss) before tax | 2,944 | 851 | 1,768 | 327 | 405 | 111 | 3,463 | (519) | |
Net attributable profit (loss) | 1,846 | 541 | 1,285 | 277 | 184 | 92 | 2,378 | (531) | |
1Q22 (1) | |||||||||
Net interest income | 3,943 | 856 | 1,748 | 492 | 809 | 75 | 3,980 | (37) | |
Gross income | 5,395 | 1,655 | 2,232 | 500 | 885 | 202 | 5,474 | (79) | |
Operating income | 2,989 | 946 | 1,487 | 262 | 473 | 87 | 3,255 | (266) | |
Profit (loss) before tax | 2,225 | 837 | 1,067 | 155 | 315 | 105 | 2,480 | (255) | |
Net attributable profit (loss) | 1,325 | 598 | 777 | (76) | 160 | 81 | 1,540 | (215) |
(1) Restated balances according to IFRS17 - Insurance contracts.
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 | ||
31-03-23 | ||||||||||
Loans and advances to customers |
362,317 | 172,085 | 77,277 | 38,995 | 39,185 | 35,946 | 363,488 | 402 | (1,573) | |
Deposits from customers | 395,880 | 214,476 | 80,172 | 51,234 | 40,782 | 10,070 | 396,733 | 186 | (1,039) | |
Off-balance sheet funds | 160,959 | 90,577 | 44,408 | 7,491 | 17,971 | 510 | 160,958 | 0 | — | |
Total assets/ liabilities and equity | 739,564 | 441,720 | 151,955 | 71,222 | 63,063 | 50,407 | 778,367 | 22,396 | (61,198) | |
RWAs | 348,598 | 116,550 | 78,316 | 58,683 | 47,341 | 33,725 | 334,615 | 13,983 | — | |
31-12-22 (1) | ||||||||||
Loans and advances to customers |
357,351 | 173,971 | 71,231 | 37,443 | 38,437 | 37,375 | 358,456 | 278 | (1,383) | |
Deposits from customers | 394,404 | 221,019 | 77,750 | 46,339 | 40,042 | 9,827 | 394,978 | 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 | 712,092 | 427,116 | 142,557 | 66,036 | 61,951 | 49,952 | 747,613 | 22,719 | (58,239) | |
RWAs | 337,066 | 114,474 | 71,738 | 56,275 | 46,834 | 35,064 | 324,385 | 12,682 | — |
- (1) Restated balances according to IFRS17 - Insurance contracts.