43.7% for the first quarter of 2008. Operating income
was €82m, up 27.1%.
BBVA Banco Continental, in Peru, presented high
quarterly growth in its net interest income, a
determining factor being the maintenance of its rate of
expansion in business volumes at similar levels to
earlier quarters. Its loan-book grew 34.0% to March,
with similar increases in loans to individuals and
companies; whilst customer funds rose 19.6%, with
especially significant growth in current and savings
accounts (up 28.3%). The other lines of income and
expenses also performed favourably. The entity’s
operating income rose 30.1% year on year, whilst net
attributable profit reached €28m, up 28.5% on the
same quarter of 2008.
In Venezuela, BBVA Banco Provincial generated a
quarterly net attributable profit of €64m. This was
3.1% higher than the previous year. Its growth was held
back by regulatory changes that came into force in the
second half of last year, namely new constraints on
lending and borrowing rates and the limitation on
collecting certain kinds of fees. It was also hit by lower
net trading income (down 98.1%) due to the high
capital gains on fixed-income portfolio divestments
booked to the first quarter of 2008. Lending volumes
slowed their pace of growth, rising 15.8%, above all in
retail loans. However, customer funds remain buoyant,
with 30.9% higher volume than in March 2008. Costs
have shown a marked slowdown, growing 17.1%,
which is below the country’s inflation rate. Provisions
have remained flat to the last few quarters.
During the quarter, BBVA Panama generated a profit of
€8m; BBVA Paraguay €7m, and BBVA Uruguay
€1.2m.
South America. Data per country (banking business, pensions and insurance)
(Million euros)
Country
Argentina
Chile
Colombia
Peru
Venezuela
Other countries (1)
TOTAL
1Q09
Operating income
Δ% Δ% at constant
exchange rate 1Q08
(1) Panama, Paraguay, Uruguay, Bolivia and Ecuador. Additionally, it includes eliminations and other charges.
Pensions and Insurance
During the quarter, pensions and insurance management
reported a net attributable profit of €26m. This was up
69.0% on the previous year, despite the impact of
exiting the Consolidar health and the Consolidar
pension businesses. The excellent performance of sales
and the lower instability on financial markets meant the
pension business could generate €16m, three times its
earnings in the same quarter of 2008. However, the
change in perimeter for the insurance business led it to
reduce its reported earnings by 5.4% to €10m. Without
including the Consolidar Salud data, net attributable
profit increased 9.2%.
AFP Provida, the pension fund in Chile, brought in
9.1% more business than in the first quarter of 2008.
This volume growth explains the surge in its fee income
(up 31.4%). As volatility on the market lessened, net
trading income ceased to be a negative factor, such that
net attributable profit reached €10m, significantly
higher than twelve months earlier.
In Argentina, after exiting Consolidar Salud and after
the State takeover of Consolidar AFJP, the Consolidar
Group this quarter now comprised Consolidar Seguros,
Consolidar Retiro and Consolidar ART, operating in
insurance, retirement and workplace risks, respectively.
It showed a net attributable profit of €9m for the
quarter, with sound performance in sales, claims ratios
and expenses.
Finally, AFP Horizonte, the pension fund in Peru,
reported a net attributable profit of €4m. This was up
185.0%. AFP Horizonte in Colombia generated €3m
profit, up 72.9%.
83 12.1 11.0 74 52 (1.2) (2.1) 52
94 132.6 164.8 40 30 96.8 124.1 15
90 28.0 40.1 70 34 23.2 34.8 27
108 39.4 33.3 78 32 43.3 37.1 22
160 2.5 (10.8) 157 67 21.2 5.5 56
13 82.5 47.9 7 11 22.8 2.5 9
548 28.7 23.4 426 225 24.3 19.5 181
1Q09
Net attributable profit
1Q09 BUSINESS AREAS
South America
Δ% Δ% at constant
exchange rate 1Q08
47
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