Spain and Portugal highlights in the
third quarter
• Stable revenues and cost containment.
• Stabilisation of gross entries to NPA.
• Higher market share in liquid customer funds (from
individuals) and mutual funds.
• Leadership in the SME and large company segments
(FRS Report).
The Spain & Portugal Area provides a distinctly
different and innovative approach to banking through
specialised branch networks where the customer is the
prime focus of business. It handles the financial and
non-financial needs of individual customers (Spanish
Retail Network) including the upper-middle market
segment (BBVA Patrimonios). SMEs, large companies,
and public and private institutions are managed by the
Corporate & Business Banking Unit (CBB). Other
specialised units handle consumer finance and internet
banking (the Consumer Finance Unit), the bancassurance
business (BBVA Seguros) and BBVA Portugal.
In the third quarter of 2009 activity in the domestic
market continued to be lopsided. Lending is slowing
whereas fund gathering is buoyant, reflecting the record
savings rate of the Spanish public. Furthermore lower
interest rates have led to greater demand for liquid
deposits, bonds and the more conservative types of
collective investment.
In this context, the area continued to apply its
particular model of retail management. This entails
Spain and Portugal. Operating income
(Million euros)
+3.4%
3,463
3,348 1,139
1,201
1,132 1,143 1,135 1,128
1,074 1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
Relevant business indicators
(Million euros and percentages)
Customer lending (gross)
Customer deposits (1)
Off-balance-sheet funds
•Mutual funds
•Pension funds
Other placements
Customer portfolios
ROE (%)
Efficiency ratio (%)
NPA ratio (%)
Coverage ratio (%)
(1) Including collection accounts and individual annuities.
customer focus, an extensive commitment to society, a
high level of efficiency and risk control. And it had an
effect on the stability of the third quarter, particularly
on the area’s earnings and on efficiency. The
cost/income ratio stands at 34.6%, practically the same
as the excellent level recorded in the first half
(compared to 36.7% in the same period last year). The
gross entries to non-performing assets have stabilised
and the NPA ratio has slowed down its growth and is
now 4.0%. The coverage ratio (59%) has been
strengthened by adding €830m to generic loan-loss
provisions.
At 30-Sep-09 the area’s loan portfolio stands at
€205,495m (€206,750m a year earlier). Market share
in the household segment increased to 12.0% (11.9% at
Spain and Portugal. Net attributable profit
(Million euros)
—2.1%
673 619 624 649 657
613 606
3Q09 BUSINESS AREAS
Spain and Portugal
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
1,916 1,877
30-09-09
205,495 (0.6) 206,750
94,064 (1.8) 95,751
41,026 (7.7) 44,472
30,868 (11.9) 35,028
10,158 7.6 9,444
,
8,268 59.0 5,200
12,964 12.8 11,494
34.6 35.5
34.6 36.7
4.0 1.9
59 97
Δ%
30-09-08
31
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