XML 68 R29.htm IDEA: XBRL DOCUMENT
v3.20.4

Note 22 - Financial liabilities at amortized cost | 12 Months Ended
--- | ---
Dec. 31, 2020
Financial liabilities at amortized cost Abstract |
Financial liabiltiies measured at amortized cost | 22. Financial liabilities at amortized cost 22.1. Breakdown of the balance The breakdown of the balance under these headings in the accompanying consolidated balance sheets is as follows:
Financial liabilities measured at amortized cost (Millions of Euros)
|  | 2020 | 2019 | 2018
Deposits |  | 415.467 | 438.919 | 435.229
Deposits from central banks |  | 45.177 | 25.950 | 27.281
Demand deposits |  | 163 | 23 | 20
Time deposits and other |  | 38.274 | 25.101 | 26.885
Repurchase agreements (*) |  | 6.740 | 826 | 375
Deposits from credit institutions |  | 27.629 | 28.751 | 31.978
Demand deposits |  | 7.196 | 7.161 | 8.370
Time deposits and other |  | 16.079 | 18.896 | 19.015
Repurchase agreements (*) |  | 4.354 | 2.693 | 4.593
Customer deposits (**) |  | 342.661 | 384.219 | 375.970
Demand deposits |  | 266.250 | 280.391 | 260.573
Time deposits and other |  | 75.666 | 103.293 | 114.188
Repurchase agreements (*) |  | 746 | 535 | 1.209
Debt certificates |  | 61.780 | 63.963 | 61.112
Other financial liabilities |  | 13.358 | 13.758 | 12.844
Total |  | 490.606 | 516.641 | 509.185
(*) See Note 35. (**) Amount in 2020 is mainly due to the stake in BBVA USA (see Note 21). The amount recorded in Deposits from central banks - Time deposits includes the provisions of the TLTRO III facilities of the European Central Bank, mainl y BBVA S.A. amounting to €35,032 million as of December 31, 2020, that basically explains the change compared to the previous year (see Note 7.5). On April 30, 2020, the European Central Bank modified some of the terms and conditions of the TLTRO III facil ities in order to support the continued access of companies and households to bank credit in the face of interruptions and temporary shortages of funds associated with the COVID-19 pandemic. Entities whose eligible net lending exceeds 0% between March 1, 2 020 and March 31, 2021 will pay an interest rate 0.5% lower than the average rate of the deposit facilities during the period that includes from June 24, 2020 to June 23, 2021. This means that the interest rate applicable to the facilities drawn down is -1%. Outside of this period, the average interest rate of the deposit facilities will be applied (currently -0.5%) provided that the financing objectives are met according to the conditions of the European Central Bank. The Group is reasonably certain about the fulfillment of these financing objectives. Therefore, the effective interest rate of each facility is -0.5% and the accounting registration of the discount in the interest rate associated with the COVID-19 pandemic is recognized during the annual perio d from June 24, 2020 to June 23, 2021. The positive remuneration currently being generated by the drawdowns of the TLTRO III facilities is recorded under the heading of "Interest income and other similar income – other income" in the consolidated income st atements and amounts to €211 million as of December 31, 2020 (See Note 37.1). 22.2. Deposits from credit institutions The breakdown by geographical area and the nature of the related instruments of this heading in the accompanying consolidated balance sheets is as follows:
Deposits from credit institutions. December 2020 (Millions of Euros)
| Demand deposits | Time deposits and other (*) | Repurchase agreements | Total
Spain | 345 | 1.405 | 1 | 1.751
Mexico | 689 | 672 | 188 | 1.549
Turkey | 8 | 580 | 28 | 617
South America | 557 | 1.484 | - | 2.041
Rest of Europe | 2.842 | 4.531 | 4.070 | 11.444
Rest of the world | 2.755 | 7.406 | 67 | 10.228
Total | 7.196 | 16.079 | 4.354 | 27.629
(*) Subordinated deposits are included amounting €12 million.
Deposits from credit institutions. December 2019 (Millions of Euros)
| Demand deposits | Time deposits and other (*) | Repurchase agreements | Total
Spain | 2.104 | 1.113 | 1 | 3.218
The United States | 2.082 | 4.295 | - | 6.377
Mexico | 432 | 1.033 | 168 | 1.634
Turkey | 302 | 617 | 4 | 924
South America | 394 | 2.285 | 161 | 2.840
Rest of Europe | 1.652 | 5.180 | 2.358 | 9.190
Rest of the world | 194 | 4.374 | - | 4.568
Total | 7.161 | 18.896 | 2.693 | 28.751
(*) Subordinated deposits are included amounting €195 million.
Deposits from credit institutions. December 2018 (Millions of Euros)
| Demand deposits | Time deposits and other (*) | Repurchase agreements | Total
Spain | 1.981 | 2.527 | 55 | 4.563
The United States | 1.701 | 2.677 | - | 4.379
Mexico | 280 | 286 | - | 566
Turkey | 651 | 669 | 4 | 1.323
South America | 442 | 1.892 | - | 2.335
Rest of Europe | 3.108 | 6.903 | 4.534 | 14.545
Rest of the world | 207 | 4.061 | - | 4.268
Total | 8.370 | 19.015 | 4.593 | 31.978
(*) Subordinated deposits are included amounting €191 million. 22.3. Customer deposits The breakdown by geographical area of this heading in the accompanying consolidated balance sheets, by type of instrument is as follows:
Customer deposits. December 2020 (Millions of Euros)
| Demand deposits | Time deposits and other | Repurchase agreements | Total
Spain | 168.690 | 20.065 | 2 | 188.757
Mexico | 43.768 | 10.514 | 117 | 54.398
Turkey | 17.906 | 16.707 | 8 | 34.621
South America | 25.730 | 11.259 | - | 36.989
Rest of Europe | 8.435 | 12.373 | 619 | 21.427
Rest of the world | 1.720 | 4.748 | - | 6.468
Total | 266.250 | 75.666 | 746 | 342.661
Customer deposits. December 2019 (Millions of Euros)
| Demand deposits | Time deposits and other (*) | Repurchase agreements | Total
Spain | 146.651 | 24.958 | 2 | 171.611
The United States | 46.372 | 19.810 | - | 66.181
Mexico | 43.326 | 12.714 | 523 | 56.564
Turkey | 13.775 | 22.257 | 10 | 36.042
South America | 22.748 | 13.913 | - | 36.661
Rest of Europe | 6.610 | 8.749 | - | 15.360
Rest of the world | 909 | 892 | - | 1.801
Total | 280.391 | 103.293 | 535 | 384.219
(*) Subordinated deposits are included amounting to €189 million.
Customer deposits. December 2018 (Millions of Euros)
| Demand deposits | Time deposits and other (*) | Repurchase agreements | Total
Spain | 138.236 | 28.165 | 3 | 166.403
The United States | 41.222 | 21.317 | - | 62.539
Mexico | 38.383 | 11.837 | 770 | 50.991
Turkey | 10.856 | 22.564 | 7 | 33.427
South America | 23.811 | 14.159 | - | 37.970
Rest of Europe | 7.233 | 14.415 | 429 | 22.077
Rest of the world | 831 | 1.731 | - | 2.563
Total | 260.573 | 114.188 | 1.209 | 375.970
(*) Subordinated deposits are included amounting to €220 million. 22.4. Debt certificates The breakdown of the balance under this heading, by financial instruments and by currency, is as follows:
Debt certificates (Millions of Euros)
| 2020 | 2019 | 2018
In Euros | 42.462 | 40.185 | 37.436
Promissory bills and notes | 860 | 737 | 267
Non-convertible bonds and debentures | 14.538 | 12.248 | 9.638
Covered bonds (*) | 13.274 | 15.542 | 15.809
Hybrid financial instruments (**) | 355 | 518 | 814
Securitization bonds | 2.538 | 1.354 | 1.630
Wholesale funding | 2.331 | 1.817 | 142
Subordinated liabilities | 8.566 | 7.968 | 9.136
Convertible perpetual certificates | 4.500 | 5.000 | 5.490
Non-convertible preferred stock | 159 | 83 | 107
Other non-convertible subordinated liabilities | 3.907 | 2.885 | 3.540
In foreign currencies | 19.318 | 23.778 | 23.676
Promissory bills and notes | 1.024 | 1.210 | 3.237
Non-convertible bonds and debentures | 8.691 | 10.587 | 9.335
Covered bonds (*) | 217 | 362 | 569
Hybrid financial instruments (**) | 455 | 1.156 | 1.455
Securitization bonds | 4 | 17 | 38
Wholesale funding | 1.016 | 780 | 544
Subordinated liabilities | 7.911 | 9.666 | 8.499
Convertible perpetual certificates | 1.633 | 1.782 | 873
Non- convertible preferred stock | 35 | 76 | 74
Other non-convertible subordinated liabilities | 6.243 | 7.808 | 7.552
Total | 61.780 | 63.963 | 61.112
(*) Including mortgage-covered bonds. (**) Corresponds to the issuance of structured notes whose underlying risk differs from the underlying risk of the derivative. Most of the foreign currency issues are denominated in U.S. dollars. 22.4.1. Subordinated liabilities The breakdown of this heading, is as follows:
Memorandum item: Subordinated liabilities at amortized cost
| 2020 | 2019 | 2018
Subordinated deposits | 12 | 384 | 411
Subordinated certificates | 16.476 | 17.635 | 17.635
Preferred stock | 194 | 159 | 181
Compound convertible financial instruments | 6.133 | 6.782 | 6.363
Other non-convertible subordinated liabilities (*) | 10.149 | 10.693 | 11.092
Total | 16.488 | 18.018 | 18.047
(*) Subordinated issues of BBVA Paraguay as of December 31, 2020 and 2019 are recorded in the consolidated balance sheet under the heading “Liabilities included in disposal groups classified as held for sale" amounting to €37 and €40 million, respectively. The subordinated issues of BBVA USA as of December 31, 2020 are recognized in the consolidated balance sheet under the heading “Liabilities included in disposal groups classified as held for sa le" amounting to €735 million (see Note 21). The issuances of BBVA International Preferred, S.A.U., Ltd., Caixa Terrassa Societat de Participacions Preferents, S.A.U. and CaixaSabadell Preferents, S.A.U. are jointly, severally and irrevocably guaranteed by the Bank. The balance variances are mainly due to the following transactions: Convertible perpetual liabilities The AGM held on March 17, 2017, resolved, under agenda item five, to confer authority to the Board of Directors to issue securities convertible into newly issued BBVA shares, on one or several occasions, within the maximum term of five years to be counted from the approval date of the authorization, up to a maximum overall amount of €8 billion or its equivalent in any other currency. L ikewise, the AGM resolved to confer to the Board of Directors the authority to totally or partially exclude shareholders’ pre-emptive subscription rights within the framework of a specific issue of convertible securities, although this power was limited to enable the nominal amount of the capital increases resolved or effectively carried out for conversion of mandatory convertible issuances made under this authority (without prejudice to anti-dilution adjustments), with exclusion of pre-emptive subscription rights and of those likewise resolved or carried out with exclusion of pre-emptive subscription rights in use of the authority to increase the share capital conferred by the AGM held on March 17, 2017, under agenda item four, do not exceed the maximum nom inal amount, overall, of 20% of the share capital of BBVA at the time of the authorization, this limit not being applicable to contingent convertible issues. Under that delegation, BBVA made the following issuances that qualify as additional tier 1 capital of the Bank and the Group in accordance with Regulation (EU) 575/2013: In May and November 2017, BBVA carried out two issues of perpetually convertible securities (additional Tier 1 capital instruments) excluding shareholders' pre-emptive rights, for a nominal amount of 500 million euros and 1,000 million U.S. dollars, respectively. These issues are listed on the Global Exchange Market of Euronext Dublin of the Irish Stock Exchange and were directed only to qualified investors and foreign private banking clients, and cannot be placed or subscribed in Spain or among investors resident in Spain. In September 2018 and March 2019, BBVA carried out both issuances of perpetual contingent convertible securities (additional tier 1 instruments), with exclusion of pre-emptive subscription rights of shareholders, for a total nominal amount of €1 billion each. These issuances are listed in the AIAF Fixed Income Securities Market and were targeted only at professional clients and eligible counterparties, not being offe red or sold to any retail clients. On September 5, 2019, BBVA carried out an issuance of perpetual contingent convertible securities (additional tier 1 instruments), with exclusion of pre-emptive subscription rights of shareholders, for a total nominal am ount of $1 billion. This issuance is listed in the Global Exchange Market of Euronext Dublin and was targeted only at qualified investors, not being offered to, and not being subscribed for, in Spain or by Spanish residents. On July 15, 2020, BBVA carried out an issuance of perpetual contingent convertible securities (additional tier 1 instruments), with exclusion of pre-emptive subscription rights of shareholders, for a total nominal amount of €1 billion. This issuance is listed in the AIAF Fixed Income S ecurities Market and was targeted only at professional clients and eligible counterparties, not being offered or sold to any retail clients. Additionally, an issue of perpetually convertible securities (additional Tier 1 capital instruments) is outstanding, which was carried out in April 2016, for an amount of 1,000 million euros, by virtue of previous delegations of the shareholders' meeting. This issue was directed only to qualified investors and foreign private banking clients, and cannot be placed or su bscribed in Spain or among investors residing in Spain. This issue is listed on the Global Exchange Market of Euronext Dublin of the Irish Stock Exchange and is computed as additional Tier 1 capital of the Bank and the Group, in accordance with Regulation (EU) 575/2013. These perpetual securities will be converted into newly issued ordinary shares of BBVA if the CET 1 ratio of the Bank or the Group is less than 5.125%, in accordance with their respective terms and conditions. These issuances may be fully redeemed at BBVA’s option only in the cases contemplated in their respective terms and conditions and, in any case, in accordance with the provisions of the applicable legislation. In particular: On May 9, 2018, the Bank early redeemed the issuance of contingently convertible preferred securities (additional tier 1 instruments) carried out by the Bank on May 9, 2013, for an amount of $1.5 billion on the First Reset Date of the issuance and once the prior consent from the Regulat or had been obtained. On February 19, 2019 the Bank early redeemed the issuance of contingently convertible preferred securities (additional tier 1 instruments), carried out by the Bank on February 19, 2014, for a total amount of €1.5 billion and once the prior consent from the Regulator had been obtained. On February 18, 2020, the Bank early redeemed the issuance of contingently convertible preferred securities (additional tier 1 instruments) carried out by the Bank on February 18, 2015, for an amount of €1.5 billion on the First Reset Date of the issuance and once the prior consent from the Regulator had been obtained. P referred securities The breakdown by issuer of the balance under this heading in the accompanying consolidated balance sheets is as follo ws:
Preferred securities by issuer (Millions of Euros)
| 2020 | 2019 | 2018
BBVA International Preferred, S.A.U. (1) | 35 | 37 | 35
Unnim Group (2) | 159 | 83 | 98
BBVA USA | - | 19 | 19
BBVA Colombia | - | 20 | 19
Other | - | - | 9
Total | 194 | 159 | 181
A breakdown of the maturity of the lease liabilities, due after December 31, 2020 is provided below: (1) Call exercised. (2) Unnim Group: Issuances prior to the acquisition by BBVA. These issuances were fully subscribed at the moment of the issue by qualified/institutional investors outside the Group and are redeemable, totally or partially, at the issuer’s option after five years from the issue date, depending on the terms of each is suance and with the prior consent from the Bank of Spain or the relevant authority. In connection with the above, once the necessary authorization from the European Central Bank was received and in conformity with its authority to redeem: The Extraordinary and Universal General Meeting of Caixasabadell Preferents, S.A. Unipersonal, at its meeting held on December 11, 2020, decided to delegate on the company’s Board of Directors the authority to agree on the total early redemption of its only live issuance, subject to the applicable legal provisions and having previously obtained all necessary authorisations. In use of such delegation, having satisfied all legal and contractual formalities required and having obtained all relevant authorizations, the company’s Board of Directors, on the same date, agreed to carry out the early redemption of the total nominal amount of the issuance on January 14, 2021. As a result, once all necessary communications were released, on January 14, 2021 the total early redemption o f the issuance took place. The Extraordinary and Universal General Meeting of BBVA International Preferred, S.A. Unipersonal, at its meeting held on December 11, 2020, decided to delegate on the company’s Board of Directors the authority to agree on the to tal early redemption of its only live issuance, subject to the applicable legal provisions and having previously obtained all necessary authorisations. In use of such delegation, having satisfied all legal and contractual formalities required and having ob tained all relevant authorizations, the company’s Board of Directors, on the same date, agreed to carry out the early redemption of the total nominal amount of the issuance on January 19, 2021. As a result, once all necessary communications were released, on January 19, 2021 the total early redemption of the issuance took place. The Extraordinary and Universal General Meeting of Caixa Terrassa Societat de Participacions Preferents, S.A. Unipersonal, at its meeting held on December 11, 2020, decided to deleg ate on the company’s Board of Directors the implementation of all necessary actions in order to modify its only live issuance so as to include a new clause regarding the early redemption of the preferred securities. In use of the delegated authority and ha ving obtained all necessary authorizations, the company’s Board of Directors, on the same date, agreed to modify the relevant issuance in order to include a new clause for the total early redemption of the preferred securities on January 29, 2021, therefor e convening the relevant meeting of noteholders of the issuance to be held in Bilbao, on January 14, 2021, at first call, or on January 15, 2021, at second call. Having satisfied all applicable legal requirements, the noteholders’ meeting was held at first call and passed, with the necessary majority of votes, among other resolutions, the inclusion of a new total early redemption clause. As a result, on January 29, 2021 the total early redemption of the issuance took place. 22.5. Other financial liabilities The breakdown of the balance under this heading in the accompanying consolidate d balance sheets is as follows:
Other financial liabilities (Millions of Euros)
| 2020 | 2019 | 2018
Lease liabilities | 2.674 | 3.335 |
Creditors for other financial liabilities | 2.408 | 2.623 | 2.891
Collection accounts | 3.275 | 3.306 | 4.305
Creditors for other payment obligations | 5.000 | 4.494 | 5.648
Total | 13.358 | 13.758 | 12.844
Maturity of future payment obligations (Millions of Euros)
|  | Up to 1 year | 1 to 3 years | 3 to 5 years | Over 5 years | Total
Leases |  | 244 | 430 | 397 | 1.602 | 2.674

X
- Definition Text Block which displays the disclosure of financial liabilities at amortized cost + References No definition available. + Details
Name: | bbva_Disclosureoffinancialliabilitiesatamortizedcostexplanatory
Namespace Prefix: | bbva_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | bbva_Financialliabilitiesatamortizedcostabstact
Namespace Prefix: | bbva_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration