34
BUSINESS AREAS 3Q09
Spain and Portugal
In the large companies segment, the loan portfolio
stands at €17,108m (up 9.6% year-on-year) and
customer funds are €4,706m (equal to the same date of
last year). Operating income rose 19.7% year-on-year to
€222m and net attributable profit came to €74m.
During the quarter BBVA acted as global co-ordinator
and adviser in a €222m capital increase for NH Hotels.
Lending to institutions grew 19.7% to €24,883m and
customer funds rose 4.3% to €14,887m. Operating
income was €254m (up 31.1% year-on-year) and net
attributable profit reached €173m (up 9.9%).
Important operations during the period include loans of
€236m to Madrid Council and €100m for the regional
government of Galicia.
Manageable lending in the real estate developer
segment continues to fall (down 7.7% in the first nine
months), commensurate with the decline in the housing
market. Therefore the unit switched new finance to the
demand in the public housing program (VPO), which
now accounts for 50% of homes financed (this
percentage has doubled in the last 12 months).
Other units
The Consumer Finance unit manages consumer finance
and on-line banking, via Uno-e, Finanzia and other
companies in Spain, Portugal and Italy. In the first nine
months of 2009 it obtained operating income of €111m
(up 28.4% year-on-year) thanks to good price
management and lower costs (down 12.7%). The net
attributable loss of €88m was due to an increase in
loan-loss provisions following a rise in non-performing
assets, especially those linked to consumer finance.
In Spain the loan portfolio stands at €6,407m, rising
3.7% year-on-year. The market share for consumer
credit increased 22 basis points to reach 4.2%. In the
vehicle prescription business the unit invoiced €725m.
Uno-e’s loan portfolio stands at €1,084m and invoicing
came to €1,283m (€1,487m at 30-Sep-08). Customer
funds managed or brokered by the unit came to
€1,329m, up 4.0%. This includes savings and current
accounts, which increased 9.9%.
In Portugal, BBVA Finanziamento invoiced €173m in
the first nine months and total lending is up 14.1%
year-on-year to €483m. And at 30-Sep-09 the leasing
plan companies in Italy had a fleet of 13,787 vehicles.
BBVA Portugal’s market has suffered less than Spain’s
although consumption and investment are stagnant. The
unit’s retail business remains buoyant with a lower risk
profile and further cost controls. It has a new campaign
for loans that allow customers with mortgages to reduce
their monthly repayments or request an additional loan.
It also launched revolving credit and easy credit cards for
private individuals as well as Business Classic BBVA and
Business Gold BBVA for companies. Other initiatives to
capture and maintain the loyalty of customers include a
programme that offers special conditions for customers
over 59 years of age. It also offers loan insurance for
companies in conjunction with CESCE (an insurance
company). Products available for customer funds include
two special deposits for conservative customers
(Multidepósitos BBVA and Depósito Fortaleza BBVA)
and another for those with a greater risk appetite
(Depósito Dual Acciones BBVA). BBVA Gest, the mutual
fund manager, was picked as best manager in Portugal
by Morningstar Inc. Lastly, in the investment banking
area, the unit signed a €25m leverage finance operation
for Emparque to acquire Cintra Aparcamiento.
The loan portfolio is up 4.9% year-on-year to €6,175m
and customer funds (affected by strong competition)
stand at €1,885m (€2,049m at 30-Sep-08). The increase
in business and suitable price management helped net
interest income to rise 8.9% year-on-year to €65m.
Together with the increase in net fee income and the cost
controls, operating income increased 33.6% to €49m
and net attributable profit jumped 61.4% to €20m.
In the first nine months the insurance unit contributed
revenues of €388m from its own policies and €20m in
brokerage on the policies of other companies. Net
attributable profit came to €207m (up 10.4%
year-on-year).
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