BBVA in 2017

A customer-oriented global financial services group

Created with Sketch.

Letter from the Group Executive Chairman

2017 has been a good year for BBVA. The Group's revenues have reached a historic level, our capital strength has been reinforced, and our transformation strategy has gathered pace as it enters the execution stage”


Francisco González. Group Executive Chairman

Read more

The most relevant aspects

Awards and recognitions

BBVA in figures

A summary of 2017

Created with Sketch.

Business areas

Banking activity in Spain

Highlights Activity Results Risks

Highlights

  • Deleveraging and increase in more liquid and off-balance-sheet funds continue.
  • Good performance of net fees and commissions.
  • Reduction of operating expenses.
  • Solid asset-quality indicators.

Spain

Gross income. Year-on-year change.

€6,180m

Arrow Up Green

-3.7%

Activity

Year-on-year change, data as of 31-12-2017.

  • Performing loans under management

    -1.1%

  • Total customer funds
    under management

    +1.9%

Spain

Results

Year-on-year change.

  • Net interest income

    €3,738m

    Arrow Down Green

    -3.6%

  • Gross income

    €6,180m

    Arrow Down Green

    -3.7%

  • Operating income

    €2,802m

    Arrow Down Green

    -1.3%

  • Net attributable profit

    €1,381m

    Arrow Up Green

    +52.7%

Spain

Risks

NPL coverage ratio

53%

50%

NPL ratio

5.8%

5.2%

Cost of risk

0.32%

0.31%

DEC 16

DEC 17

Spain

Non Core Real Estate

Highlights Net exposure Results

Highlights

  • Positive trend in Spanish real-estate sector figures continues.
  • Further decline in net exposure, NPLs and losses.
  • Agreement with Cerberus for the transfer of real-estate assets to a new company and subsequent sale of 80% of this company to Cerberus.

Spain

Gross income. Year-on-year change.

€-17m

Arrow Down Green

+157.8%

Results

Year-on-year change.

  • Net interest income

    €71m

    Arrow Up Green

    +19.5%

  • Gross income

    €-17m

    Arrow Up Green

    +157.8%

  • Operating income

    €-132m

    Arrow Up Green

    +1.2%

  • Net attributable profit

    €-501m

    Arrow Down Green

    -15.8%

Spain

Net exposure

Million euros.

  • Real-estate developer loans

  • Foreclosed assets

  • Other real-estate assets

-37.2%

 

10,212
 
 

6,416

DEC 16

DEC 17

Spain

The United States

Highlights Activity Results Risks

Highlights

  • Lending remained stable over the year.
  • Increase in deposits from customers.
  • Positive performance of the net interest income and net fees and commissions.
  • Higher income tax charge due to the tax reform approved at the end of 2017.
  • Solid risk indicators.

The United States

Gross income. Year-on-year change at constant exchange rate.

€2,919m

Arrow Up Green

+10.5%

Activity

Year-on-year change at constant exchange rate. Data as of 31-12-2017.

  • Performing loans under management

    -0.1%

  • Total customer funds
    under management

    +1.8%

The United States

Results

Year-on-year change at constant exchange rate.

  • Net interest income

    €2,158m

    Arrow Up Green

    +13.0%

  • Gross income

    €2,919m

    Arrow Up Green

    +10.5%

  • Operating income

    €1,061m

    Arrow Up Green

    +26.1%

  • Net attributable profit

    €511m

    Arrow Up Green

    +14.6%

The United States

Risks

NPL coverage ratio

94%

104%

NPL ratio

1.5%

1.2%

Cost of risk

0.37%

0.42%

DEC 16

DEC 17

The United States

Mexico

Highlights Activity Results Risks

Highlights

  • Good performance in activity.
  • Positive trend in gross income.
  • Cost continue to increase below gross income, and double-digit year-on-year growth in net attributable profit.
  • Stable asset quality indicators.

Mexico

Gross income. Year-on-year change at constant exchange rate.

€7,080m

Arrow Up Green

+8.0%

Activity

Year-on-year change at constant exchange rate. Data as of 31-12-2017.

  • Performing loans under management

    +5.5%

  • Total customer funds
    under management

    +11.4%

Mexico

Results

Year-on-year change at constant exchange rate.

  • Net interest income

    €5,437m

    Arrow Up Green

    +9.5%

  • Gross income

    €7,080m

    Arrow Up Green

    +8.0%

  • Operating income

    €4,635m

    Arrow Up Green

    +9.5%

  • Net attributable profit

    €2,162m

    Arrow Up Green

    +12.7%

Mexico

Risks

NPL coverage ratio

127%

123%

NPL ratio

2.3%

2.3%

Cost of risk

3.40%

3.30%

DEC 16

DEC 17

Mexico

Turkey

Highlights Activity Results Risks

Highlights

  • Solid growth in activity.
  • Very positive growth in more recurring revenue items.
  • Operating expenses increase below the level of inflation and the rate of increase in gross income.
  • Risk indicators affected by more additions to NPL from certain wholesale loans that are practically fully provisioned.

Turkey

Gross income. Year-on-year change at constant exchange rate.

€4,115m

Arrow Up Green

+19.2%

Activity

Year-on-year change at constant exchange rate. Data as of 31-12-2017.

  • Performing loans under management

    +13.9%

  • Total customer funds
    under management

    +15.8%

Turkey

Results

Year-on-year change at constant exchange rate.

  • Net interest income

    €3,331m

    Arrow Up Green

    +20.6%

  • Gross income

    €4,115m

    Arrow Up Green

    +19.2%

  • Operating income

    €2,612m

    Arrow Up Green

    +27.8%

  • Net attributable profit

    €826m

    Arrow Up Green

    +70.0%

Turkey

Risks

NPL coverage ratio

124%

85%

NPL ratio

2.7%

3.9%

Cost of risk

0.87%

0.82%

DEC 16

DEC 17

Turkey

South America

Highlights Activity Results Risks

Highlights

  • Activity continues to grow at a good pace.
  • More recurring revenue items performing very well.
  • Expenses grow below gross income.
  • Macroeconomic environment evolution has impacted the performance of risk indicators.
  • Agreement to sell the franchise in Chile to Scotiabank.

South America

Gross income. Year-on-year change at constant exchange rates.

€4,451m

Arrow Up Green

+13.9%

Activity

Year-on-year change at constant exchange rates. Data as of 31-12-2017.

  • Performing loans under management

    +9.7%

  • Total customer funds
    under management

    +10.5%

South
America

Results

Year-on-year change at constant exchange rates.

  • Net interest income

    €3,200m

    Arrow Up Green

    +15.1%

  • Gross income

    €4,451m

    Arrow Up Green

    +13.9%

  • Operating income

    €2,444m

    Arrow Up Green

    +15.1%

  • Net attributable profit

    €861m

    Arrow Up Green

    +14.0%

South
America

Risks

NPL coverage ratio

103%

89%

NPL ratio

2.9%

3.4%

Cost of risk

1.15%

1.32%

DEC 16

DEC 17

South
America

Rest of Eurasia

Highlights Activity Results Risks

Highlights

  • Positive trend in lending in Europe.
  • Trend in deposits strongly influenced by the negative interest-rate environment.
  • Earnings down due to lower revenues, despite the good performance of expenses and loan-loss provisions.
  • Good performance of asset quality indicators.

Rest of Eurasia

Gross income. Year-on-year change.

€468m

Arrow Down Green

-4.8%

Activity

Year-on-year change. Data as of 31-12-2017.

  • Performing loans under management

    -2.7%

  • Total customer funds
    under management

    -27.4%

Rest of Eurasia

Results

Year-on-year change.

  • Net interest income

    €180m

    Arrow Up Green

    +8.7%

  • Gross income

    €468m

    Arrow Down Green

    -4.8%

  • Operating income

    €160m

    Arrow Up Green

    +7.0%

  • Net attributable profit

    €125m

    Arrow Up Green

    +17.4%

Rest of Eurasia

Risks

NPL coverage ratio

84%

74%

NPL ratio

2.7%

2.4%

Cost of risk

-0.22%

-0.16%

DEC 16

DEC 17

Rest of Eurasia