(Depósito Fortaleza Nómina). In just 45 days the
campaign brought in €891m in time deposits, 5,130 new
customers and boosted cross selling with 761 new
accounts for direct salary credits, 248 direct debits and
1,210 cards. In addition, BBVA reinforced its positioning
and leadership in the Spanish mutual fund market. It is
the benchmark for conservative funds, which are the
most popular in 2009. Pension plans grew 7.5%
year-on-year and the balance managed by the unit stands
at €9,752m, maintaining market leadership. Lastly, this
overview of customer funds is complemented by the
placement of the convertible bond issue mentioned above.
The BBVA Patrimonios unit closed the quarter with
funds managed in Spain rising 8.9% year-on-year to
€10,962m and a 7.4% increase in its customer base
(the result of various action plans). In the private
banking sector the unit commenced marketing of the
VISA Infinite card, which offers a series of exclusive
services with the goal of generating customer loyalty. In
addition it ran a media campaign to advertise its new
identity, which now includes high-value customers as
well as the special unit for wealthy customers (BBVA
Patrimonios).
The Insurance unit rounded out its product range with
two new policies in the car (Coche Gama Terceros) and
house (Vivienda Plus) insurance areas, whose prices and
cover meet the needs of specific customer segments. The
volume of premiums issued on individual risk policies
(life and non-life) came to €423m in the year to
September. BBVA Seguros continues to lead in
individual life insurance policies in Spain with a 13.2%
market share at June 2009 (latest available figure).
More than 38,000 people have taken out savings
policies, generating €148m in premiums (up 59.7%).
The small business segment covers professional
practices, the self-employed, retailers, the farming
community and small companies. The corresponding
loan portfolio stands at €14,285m (€16,861m at
30-Sep-08). It has been a difficult year for this segment
but BBVA managed to place 18,300 ICO operations
worth €465m. It also designed a plan for retailers with
competitive deposits and loans. Co-operation
agreements were signed with a freelance-workers
association, with taxi operators and with restaurateurs,
providing their 400,000 members with access to BBVA’s
financial services.
Corporate & Business Banking
The corporate & business banking unit (CBB) handles
SMEs, large companies, institutions and developers,
with specialised branch networks for each segment. It
also contains the product management unit that designs
and markets specific products for different market
segments. The latest FRS report confirms BBVA’s leading
position with a 35.2% nominal market share in the
SME segment and 69.0% in the major company
segment.
In 2009 the unit developed special action plans for each
segment and these helped to consolidate the profitable
growth and customer commitment. The Anticipa Plan
identifies growth opportunities via anticipation and the
Fortaleza Plan helps to increase sales of BBVA’s
products. Other plans aim at enhancing the relationship
with customers whose consumption of banking
products is low.
Despite the adverse environment, the unit’s loan
portfolio at 30-Sep-09 stands at €90,803m (up 0.3%
year-on-year) and customer funds on the balance sheet
are €25,893m, up 3.9% in the quarter in those
gathered in the domestic commercial network.
The policy of profitable growth, the successful
management of business opportunities and the cost
controls helped operating income to rise 7.6%
year-on-year to €1,252m in the first nine months. Net
attributable profit increased 1.4% to €677m.
In the third quarter the unit signed various agreements
related to ICO operations (government-sponsored credit)
in the transport, tourism, cultural and development
sectors. BBVA plays a prominent role in the placement of
the ICO credit lines. In the first nine months it closed
€1,798m of operations, of which the liquidity line
accounts for €1,008m and the SME line €447m.
The unit has more than 60,000 customers in the SME
segment with a loan portfolio of €30,640m and
customer funds of €7,672m. For the first nine months
operating income came to €648m and net attributable
profit was €385m (€412m at 30-Sep-08). The unit
drew up plans to boost the capture of new customers in
order to maintain its current leadership.
3Q09 BUSINESS AREAS
Spain and Portugal
33
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