36
BUSINESS AREAS 3Q09
Wholesale Banking & Asset Management
WB&AM highlights in the third
quarter
• The good performance of banking revenues partly
offset lower sales from the industrial holdings
portfolio.
• The increase in customers’ deposits together with
lower lending improved the area’s liquidity profile.
• For the first time BBVA became the leader in the
M&A market in Spain by volume of operations
announced.
• Leadership in investment banking in Mexico.
The Wholesale Banking & Asset Management (WB&AM)
Area handles the Group’s wholesale businesses and asset
management. It is organised around three major units:
Corporate & Investment Banking, Global Markets and
Asset Management. Furthermore it includes the Industrial
and Real Estate Holdings Unit, which contributes to its
diversification, and the Group’s holdings in the CITIC
financial group, associated with expansion in Asia.
In the first nine months of 2009, the area confirmed the
highly recurrent nature of gross income at its main
operating units, Corporate & Investment Banking and
Global Markets, with increases of 24.0% and 7.8%,
respectively. These increases offset the reduction in income
from divestments in the industrial holdings portfolio,
which in the year to 30-Sep-09 were €212m lower than
the same period last year. Despite this, the area only
experienced a decline of €83m (down 5.6%) thanks to the
good performance of recurrent revenues mentioned above.
The growth of recurrent revenue was accompanied by an
improvement in the risk profile because the area took
strategic decisions such as abandoning certain hedge funds
Wholesale Banking & Asset Management
Operating income (Million euros)
–9.1%
359 411
346
93
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
1,116 1,015
386
371
257
Relevant business indicators
(Million euros and percentages)
Customer lending (gross)
Customer deposits (1)
• Deposits
• Assets sold under repurchase
agreement
Off-balance-sheet funds
• Mutual funds
• Pension funds
ROE (%)
Efficiency ratio (%)
NPA ratio (%)
Coverage ratio (%)
(1) Including collection accounts.
and other alternative investment instruments. Despite this,
Asset Management was able to offset the cost of
discontinuing this line of business thanks to the
performance of traditional investment products, which rose
29.1% year-on-year in the first nine months, and the
significant consolidation of its leadership in the Spanish
market.
Apart from the good revenue performance, operating costs
were also kept under control in the year to September,
rising 4.8%. This resulted in a cost/income ratio of 27.7%
(24.9% in the same period last year). The difference is
partly due to 2008 earnings on sales from the industrial
holdings portfolio. Excluding these earnings, the
cost/income ratio for the first nine months of 2008 would
be 29.1%, 140 basis points higher than the current level.
Operating income for the area was therefore down 9.1%
Wholesale Banking & Asset Management
Net attributable profit (Million euros)
+3.7%
268 290
185
30
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
742 770
30-09-09
40,073 (17.4) 48,502
59,627 13.6 52,504
51,676 14.7 45,043
7,951 6.6 7,461
11,039 12.0 9,855
3,874 35.2 2,866
7,165 2.5 6,989
25.9 32.1
27.7 24.9
Wholesale Banking
& Asset Management
0.8 0.1
118 n.m.
268
Δ% 30-09-08
271
231
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