Rest of Business
Highlights
- Increase in lending and growth in customers funds
- Positive behavior of recurring revenues
- Good behavior of risk indicators in the quarter
- Improvement of the efficiency ratio
BUSINESS ACTIVITY (1)
(VARIATION AT CONSTANT EXCHANGE RATES COMPARED TO 31-12-24)
(1) Excluding repos.
NET INTEREST INCOME / AVERAGE TOTAL ASSETS
(PERCENTAGE AT CONSTANT EXCHANGE RATES)
OPERATING INCOME
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +31.6%.
NET ATTRIBUTABLE PROFIT (LOSS)
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +41.8%.
| FINANCIAL STATEMENTS AND RELEVANT BUSINESS INDICATORS (MILLIONS OF EUROS AND PERCENTAGE) | ||||
|---|---|---|---|---|
| Income statement | 1Q25 | ∆ % | ∆ % (1) | 1Q24 (2) |
| Net interest income | 191 | 21.8 | 21.7 | 157 |
| Net fees and commissions | 137 | 56.0 | 55.3 | 88 |
| Net trading income | 107 | 14.1 | 13.7 | 94 |
| Other operating income and expenses | 1 | 76.8 | 122.7 | 1 |
| Gross income | 437 | 28.6 | 28.3 | 339 |
| Operating expenses | (200) | 25.3 | 24.8 | (160) |
| Personnel expenses | (105) | 26.9 | 26.3 | (82) |
| Other administrative expenses | (87) | 24.3 | 24.0 | (70) |
| Depreciation | (9) | 16.0 | 15.6 | (7) |
| Operating income | 236 | 31.6 | 31.5 | 180 |
| Impairment on financial assets not measured at fair value through profit or loss | (19) | 17.9 | 17.9 | (16) |
| Provisions or reversal of provisions and other results | 3 | n.s. | n.s. | (1) |
| Profit (loss) before tax | 220 | 35.6 | 35.4 | 163 |
| Income tax | (47) | 16.8 | 16.0 | (40) |
| Profit (loss) for the period | 173 | 41.8 | 41.8 | 122 |
| Non-controlling interests | — | — | — | — |
| Net attributable profit (loss) | 173 | 41.8 | 41.8 | 122 |
Balance sheets | 31-03-25 | ∆ % | ∆ % (1) | 31-12-24 |
| Cash, cash balances at central banks and other demand deposits | 6,499 | (22.1) | (19.1) | 8,348 |
| Financial assets designated at fair value | 1,818 | 11.7 | 14.0 | 1,627 |
| Of which: Loans and advances | 1,047 | 14.5 | 17.6 | 914 |
| Financial assets at amortized cost | 55,948 | (0.1) | 1.3 | 56,013 |
| Of which: Loans and advances to customers | 50,152 | (0.5) | 1.0 | 50,392 |
| Inter-area positions | — | — | — | — |
| Tangible assets | 191 | (6.9) | (4.4) | 206 |
| Other assets | 369 | 8.2 | 10.0 | 341 |
| Total assets/liabilities and equity | 64,826 | (2.6) | (0.9) | 66,534 |
| Financial liabilities held for trading and designated at fair value through profit or loss | 550 | (14.3) | (10.9) | 642 |
| Deposits from central banks and credit institutions | 2,754 | 37.6 | 40.2 | 2,002 |
| Deposits from customers | 28,032 | 2.2 | 3.5 | 27,432 |
| Debt certificates | 1,579 | (8.2) | (6.8) | 1,721 |
| Inter-area positions (3) | 26,100 | (7.1) | (5.1) | 28,091 |
| Other liabilities (3) | 1,266 | (21.5) | (19.5) | 1,613 |
| Regulatory capital allocated | 4,543 | (9.7) | (8.3) | 5,033 |
Relevant business indicators | 31-03-25 | ∆ % | ∆ %(1) | 31-12-24 |
| Performing loans and advances to customers under management (4) | 50,169 | (0.4) | 1.0 | 50,393 |
| Non-performing loans | 200 | (6.4) | (6.4) | 213 |
| Customer deposits under management (4) | 28,032 | 2.2 | 3.5 | 27,432 |
| Off-balance sheet funds (5) | 655 | 1.6 | 1.6 | 645 |
| Risk-weighted assets | 36,814 | (17.1) | (15.7) | 44,407 |
| Efficiency ratio (%) | 45.9 | 50.4 | ||
| NPL ratio (%) | 0.3 | 0.3 | ||
| NPL coverage ratio (%) | 109 | 102 | ||
| Cost of risk (%) | 0.16 | 0.17 | ||
(1) At constant exchange rate.
(2) Revised balances. For more information, please refer to the “Business Areas” section.
(3) Revised balances in 2024.
(4) Excluding repos.
(5) Includes pension funds.
Unless expressly stated otherwise, all the comments below on rates of change, for both activity and results, will be given at constant exchange rates. These rates, together with the changes at current exchange rates, can be found in the attached tables of the financial statements and relevant business indicators. Comments that refer to Europe exclude Spain.
Activity
The most relevant aspects of the evolution of BBVA Group's Rest of Business activity during the first quarter of 2025 were:
- Lending activity (performing loans under management) grew at a rate of 1.0%, mainly due to the evolution of corporate loans (+0.8%). Geographically, the New York branch stood out, followed by Europe.
- On the other hand, compared to the end of December, the NPL ratio has continued at 0.3%, while the coverage ratio increased to 109% due to the decrease in the non-performing balance.
- Customer funds under management increased by 3.5% mainly originated in demand deposits at branches in Europe.
Results
Rest of Business achieved an accumulated net attributable profit of €173m accumulated during the first three months of 2025, 41.8% higher than in the same period of the previous year, favored by the evolution of the recurrent revenues and the NTI, which widely offset the increase in operating expenses.
In the year-on-year evolution of the main lines of the area's income statement at the end of March 2025, the following was particularly noteworthy:
- Net interest income showed an increase of 21.7% as a result of increased activity volumes and appropriate price management. By countries, growth in the New York branch stood out.
- Net fees and commissions increased by 55.3%, mainly due to singular financing transactions in Investment Banking & Finance (hereinafter IB&F) in Europe and transactional banking fees.
- The NTI grew by 13.7% supported by the strong performance of Global Markets in New York, especially in the equity and credit brokerage business.
- Increase in operating expenses of 24.8%, with growth mainly in the United States and in Europe due to new hires and investment in strategic projects.
- The impairment on financial assets line at the end of March 2025 recorded a balance of €-19m, mainly due to the growth of provisions in New York, partially offset by the decline in Europe.