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Note 22 | 12 Months Ended
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Dec. 31, 2022
Financial liabilities at amortised cost [Abstract] |
Disclosure of Financial liabilities at amortised cost [Text Block] | Financial liabilities at amortized costBreakdown of the balance The breakdown of the balance under these headings in the consolidated balance sheets is as follows:
Financial liabilities measured at amortized cost (Millions of Euros)
| 2022 | 2021 | 2020
Deposits | 459,114 | 416,947 | 415,467
Deposits from central banks | 38,323 | 47,351 | 45,177
Demand deposits | 205 | 8 | 163
Time deposits and other | 33,534 | 41,790 | 38,274
Repurchase agreements | 4,584 | 5,553 | 6,740
Deposits from credit institutions | 26,935 | 19,834 | 27,629
Demand deposits | 11,434 | 7,601 | 7,196
Time deposits and other | 11,787 | 8,599 | 16,079
Repurchase agreements | 3,714 | 3,634 | 4,354
Customer deposits | 393,856 | 349,761 | 342,661
Demand deposits | 316,082 | 293,015 | 266,250
Time deposits and other | 75,516 | 55,479 | 75,666
Repurchase agreements | 2,259 | 1,267 | 746
Debt certificates | 55,429 | 55,763 | 61,780
Other financial liabilities | 14,086 | 15,183 | 13,358
Total | 528,629 | 487,893 | 490,606
The amount recorded in "Deposits from central banks - Time deposits" includes the drawdowns of the TLTRO III facilities of the European Central Bank, mainly by BBVA S.A., amounting to €26,711 million as of December 31, 2022, €38,692 million as of December 31, 2021 and €35,032 million as of December 31, 2020, after the partial repayment made in December 2022 (see Note 7.5). On April 30, 2020, the European Central Bank modified some of the terms and conditions of the TLTRO III facilities 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 exceeded 0% between March 1, 2020 and March 31, 2021 paid an interest rate 0.5% lower than the average rate of the deposit facilities during the period from June 24, 2020 to June 23, 2021. On December 10, 2020, the European Central Bank extended the support via targeted lending operations (TLTRO), extending by twelve additional months, until June 2022, the period of application of favorable interest rates to credit institutions for which the net variation of their eligible loans, between October 1, 2020 and December 31, 2021, reached a given lending performance threshold. Additionally, the maximum borrowing amount was increased to 55% of the eligible loans (from 50% previously). This meant that the interest rate applicable to the outstanding operations was -1% provided that the lending objectives were met according to the conditions of the European Central Bank. As of December 31, 2021, the Group fulfilled these lending objectives. Therefore, the recognition of the favorable interest rate associated with the COVID-19 pandemic was recognized for the period from June 24, 2020 to June 23, 2022. In its monetary policy decision of October 27, 2022, the ECB decided to adjust the interest rates applicable to TLTRO III from November 23, 2022 and offer credit institutions additional voluntary early repayment dates for these operations. In this sense, up to November 23, 2022, outside of special periods, the interest rate applicable to each drawdown is the average rate of the deposit facilities from the beginning of each drawdown until November 23. From November 23, 2022 until the maturity date or early redemption date of the corresponding TLTRO III operation, the interest rate applicable to the remaining TLTRO III operations will be indexed to the average applicable key ECB interest rates over this period. In December 2022, BBVA began the repayment of the TLTRO III program for an amount of €12 billion, corresponding to approximately a third of the total drawn amount. The positive income generated by the drawdowns of the TLTRO III facilities was recorded under the heading of "Interest and other income – Other income" in the consolidated income statements (see Note 37.1), while the negative remuneration generated by the drawdowns of the TLTRO III facilities are recorded under "Interest expense" in the consolidated income statement. Deposits from credit institutions The breakdown by geographical area and the nature of the related instruments of this heading in the consolidated balance sheets is as follows:
Deposits from credit institutions (Millions of Euros)
| Demand deposits | Time deposits and other (1) | Repurchase agreements | Total
December 2022 |  |  |  |
Spain | 1,215 | 1,429 | 67 | 2,709
Mexico | 855 | 732 | — | 1,587
Turkey | 10 | 633 | 29 | 672
South America | 844 | 2,251 | — | 3,095
Rest of Europe | 3,613 | 2,944 | 1,669 | 8,226
Rest of the world | 4,897 | 3,797 | 1,949 | 10,645
Total | 11,434 | 11,787 | 3,714 | 26,935
December 2021 |  |  |  |
Spain | 1,671 | 375 | — | 2,047
Mexico | 444 | 558 | — | 1,002
Turkey | 83 | 672 | 37 | 792
South America | 532 | 1,225 | — | 1,757
Rest of Europe | 1,841 | 3,110 | 2,549 | 7,500
Rest of the world | 3,030 | 2,657 | 1,048 | 6,736
Total | 7,601 | 8,599 | 3,634 | 19,834
December 2020 |  |  |  |
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
(1) Subordinated deposits are included amounting to €24, €14 and €12 million as of December 31, 2022, 2021 and 2020, respectively. Customer deposits The breakdown by geographical area of this heading in the consolidated balance sheets, by type of instrument is as follows:
Customer deposits (Millions of Euros)
| Demand deposits | Time deposits and other | Repurchase agreements | Total
December 2022 |  |  |  |
Spain | 188,803 | 13,389 | 2 | 202,194
Mexico | 64,671 | 12,916 | 630 | 78,217
Turkey | 22,117 | 17,254 | 747 | 40,118
South America | 27,083 | 14,505 | — | 41,587
Rest of Europe | 11,670 | 14,224 | 880 | 26,774
Rest of the world | 1,737 | 3,228 | — | 4,965
Total | 316,082 | 75,516 | 2,259 | 393,856
December 2021 |  |  |  |
Spain | 181,565 | 10,407 | 2 | 191,974
Mexico | 53,359 | 10,383 | 505 | 64,247
Turkey | 19,725 | 13,644 | 6 | 33,376
South America | 28,039 | 9,822 | — | 37,861
Rest of Europe | 8,933 | 9,546 | 754 | 19,234
Rest of the world | 1,393 | 1,677 | — | 3,070
Total | 293,015 | 55,479 | 1,267 | 349,761
December 2020 |  |  |  |
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
Debt certificates The breakdown of the balance under this heading, by financial instruments and by currency, is as follows:
Debt certificates (Millions of Euros) |
| 2022 | 2021 | 2020
In Euros | 35,611 | 36,289 | 42,462
Promissory bills and notes | 1,079 | 319 | 860
Non-convertible bonds and debentures | 16,979 | 15,712 | 14,538
Covered bonds (1) | 7,665 | 9,930 | 13,274
Hybrid financial instruments (2) | 959 | 366 | 355
Securitization bonds | 2,501 | 2,302 | 2,538
Wholesale funding | 139 | 438 | 2,331
Subordinated liabilities | 6,289 | 7,221 | 8,566
Convertible perpetual certificates | 3,000 | 3,500 | 4,500
Non-convertible preferred stock | — | — | 159
Other non-convertible subordinated liabilities | 3,289 | 3,721 | 3,907
In foreign currencies | 19,819 | 19,475 | 19,318
Promissory bills and notes | 351 | 579 | 1,024
Non-convertible bonds and debentures | 9,323 | 7,885 | 8,691
Covered bonds (1) | 114 | 178 | 217
Hybrid financial instruments (2) | 3,724 | 2,843 | 455
Securitization bonds | — | 4 | 4
Wholesale funding | 111 | 412 | 1,016
Subordinated liabilities | 6,196 | 7,574 | 7,911
Convertible perpetual certificates | 1,876 | 1,771 | 1,633
Non- convertible preferred stock | — | — | 35
Other non-convertible subordinated liabilities | 4,320 | 5,803 | 6,243
Total | 55,429 | 55,763 | 61,780
(1) Including mortgage-covered bonds. In years 2022, 2021 and 2020 there were several maturities of mortgage bonds. (2) Corresponds to structured note issuances with embedded derivatives that have been segregated according to IFRS 9. Subordinated liabilities The breakdown of this heading in the consolidated balance sheets is as follows:
Memorandum item: Subordinated liabilities at amortized cost (Millions of Euros)
|  | 2022 | 2021 | 2020
Subordinated deposits |  | 24 | 14 | 12
Subordinated certificates |  | 12,485 | 14,794 | 16,476
Preferred stock |  | — | — | 194
Compound convertible financial instruments |  | 4,876 | 5,271 | 6,133
Other non-convertible subordinated liabilities |  | 7,609 | 9,523 | 10,149
Total |  | 12,509 | 14,808 | 16,488
The balance variances are mainly due to the following transactions: Perpetual Contingent Convertible Securities The Annual General Shareholders' Meeting of BBVA held on March 17, 2017, resolved, under agenda item five, to confer authority on 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 date the resolution was adopted, up to the maximum overall amount of €8 billion or its equivalent in any other currency. Likewise, the Annual General Shareholders' Meeting resolved to confer on the Board of Directors 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 ensure the nominal amount of the capital increases resolved or carried to cover the conversion of the mandatory convertible issues in use of 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 under the Annual General Shareholders' Meeting held on March 17, 2017, under agenda item four, do not exceed the maximum nominal 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 has made since 2020 the following contingently convertible issuance that qualifies as additional tier 1 capital of the Bank and the Group in accordance with Regulation (EU) 575/2013: –On July 15, 2020, BBVA carried out an issuance of perpetual contingent convertible securities (additional tier 1 instruments), with exclusion of shareholders' pre-emptive subscription rights, for a total nominal amount of €1 billion. This issuance is listed in the AIAF Fixed Income Securities Market and was targeted only at professional clients and eligible counterparties, not being offered or sold to any retail clients. Furthermore, the Annual General Shareholders' Meeting of BBVA held on April 20, 2021, resolved, under agenda item five, to authorize the Board of Directors of BBVA, with sub-delegation powers, to issue convertible securities, whose conversion is contingent and which are intended to meet regulatory requirements for their eligibility as capital instruments (CoCos), in accordance with the solvency regulations applicable from time to time, subject to the legal and statutory provisions that may be applicable at any time. The Board of Directors may make issues on one or several times within the maximum term of five years from the date on which this resolution was adopted, up to the maximum overall amount of €8 billion or its equivalent in any other currency. The Board of Directors may also resolve to exclude, either fully or partially, the pre-emptive subscription rights of shareholders within the framework of a concrete issuance, complying in all cases with the legal requirements and limitations established for this purpose at any given time. Likewise, the authority conferred by the Annual General Meeting of Shareholders held on March 17, 2017 under its agenda item five was repealed in the unused part. As of the date hereof the Bank has not made use of the authority granted by the BBVA General Shareholders' Meeting held on April 20, 2021. These perpetual securities issued must 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 type of issuances made by the Bank 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, throughout the financial years 2020, 2021 and 2022: –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 was obtained. –On April 14, 2021, the Bank early redeemed the issuance of contingently convertible preferred securities (additional tier 1 instruments) carried out by the Bank on April 14, 2016, for an amount of €1 billion on the First Reset Date of the issuance and once the prior consent from the Regulator was obtained. –On May 24, 2022, the Bank early redeemed the issuance of contingently convertible preferred securities (additional tier 1 instruments) carried out by the Bank on May 24, 2017, for an amount of €500 million on the First Reset Date and once the prior consent from the Regulator was obtained. Convertible Securities Subsequently, the Annual General Shareholders' Meeting of BBVA held on March 18, 2022, resolved, under agenda item five, to confer authority on the Board of Directors of BBVA, with sub-delegation powers, to issue securities convertible into new BBVA shares (other than contingently convertible securities, envisaged to meet regulatory requirements for their eligibility as capital instruments (CoCos) referred to in the resolutions adopted by BBVA's Annual General Shareholders' Meeting held on April 20, 2021, under agenda item five), subject to provisions in the law and in BBVA's bylaws that may be applicable at any time, on one or several occasions within the maximum term of five years to be counted as from the date on which the resolution was adopted, up to a maximum total amount of €6 billion, or the equivalent in any other currency. The Board of Directors may also resolve to exclude, either fully or partially, the pre-emptive subscription rights of shareholders within the framework of a specific issuance, complying in all cases with the legal requirements and limitations established for this purpose at any given time. As of the date hereof the Bank has not made use of the authority granted by the BBVA General Shareholders' Meeting held on March 18, 2022. Other financial liabilities The breakdown of the balance under this heading in the consolidated balance sheets is as follows:
Other financial liabilities (Millions of Euros) |  |
| 2022 | 2021 | 2020
Lease liabilities (1) | 1,398 | 2,560 | 2,674
Creditors for other financial liabilities | 3,589 | 2,657 | 2,408
Collection accounts | 3,426 | 3,839 | 3,275
Creditors for other payment obligations (2) | 5,673 | 6,127 | 5,000
Total | 14,086 | 15,183 | 13,358
(1) The variation in 2022 corresponds mainly to the closing of the transaction with Merlin Properties for which 100% of the shares of Tree Inversiones Inmobiliarias, SOCIMI, S.A. were acquired by BBVA Group (see Note 17). (2) In 2021, this caption includes the amount committed for the acquisition of own shares under the share buyback program (see Notes 2.2.14 and 4). A breakdown of the maturity of the lease liabilities, due after December 31, 2022 is provided below:
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 | 142 | 260 | 305 | 691 | 1,398

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