40
BUSINESS AREAS 3Q09
Mexico
Mexico highlights in the third
quarter
• Good commercial activity performance and price
management continue to drive revenues.
• Cost-income ratio hit a new high, with practically flat
year-on-year cost growth.
• Stabilisation of impairment losses and reduction of
the credit card NPA ratio.
• Moody’s confirmed the rating of Bancomer’s financial
strength.
This area runs the banking, pensions and insurance
businesses that the BBVA Bancomer Financial Group
operates in Mexico.
During the third quarter of this year, the Mexican
economy has shown signs of gradual recovery,
suggesting that the worst of the crisis may be over.
Despite reporting the greatest contraction in the last 30
years, this downturn has been different from previous
ones. This time the country’s internal structural
strengths enabled markets to get through without any
breakdowns in the financial system or crises in the
balance of payments and with only a slight correction in
the labour market.
Inflation continues to slow down. At annual rates, it
ended the quarter at 4.89%, down from the 5.74%
reported in the previous quarter. This was
fundamentally due to shrinking demand and a policy of
freezing public-sector prices (above all energy prices).
The exchange rate ended September at 19.7 pesos to
the euro, with an additional depreciation of 6.0% over
the quarter. In this economic environment, the Bank of
Mexico. Operating income
(Million euros at constant exchange rate)
2,393 2,564
830 863
769 794 785
833 867
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
(1) At current exchange rate: –8.0%.
+7.1% (1)
Relevant business indicators
(Million euros and percentages)
Customer lending (gross)
Customer deposits (2)
Off-balance-sheet funds
• Mutual funds
• Pension funds
Other placements
Customer portfolios
Efficiency ratio (%)
NPA ratio (%)
Coverage ratio (%)
(1) At constant exchange rate.
(2) Excluding deposits and Bancomer’s Market unit repos.
Mexico has maintained the funding rate for banks at
4.50% since 17th July.
The attached tables show the area’s performance with
both current and constant exchange rates. The
comments below are referenced to the constant rate
figures.
Despite adverse conditions, during the first nine months
of 2009 the area’s net interest income grew 3.9%
year-on-year. The main driving factors were the positive
sales results in all businesses and well focussed price
management. Thus, the public has continued to place its
funds in the bank, with current accounts rising 11.0%
year-on-year. Meanwhile, term deposits have gone up
6.8% from one year ago. Price management in the
loan-book has continued to offset the drop in consumer
Mexico. Net attributable profit
(Million euros at constant exchange rate)
435 393
(1) At current exchange rate: –28.1%.
487
380 384
365 353
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
–16.2% (1)
1,315 1,101
30-09-09
Mexico
Δ% Δ% (1)
26,643 (19.7) 0.9 33,184
27,810 (16.2) 5.3 33,191
18,881 (12.7) 9.7 21,632
10,160 (19.0) 1.8 12,543
8,721 (4.0) 20.6 9,089
2,850 (16.9) 4.5 3,429
4,869 (21.8) (1.7) 6,225
31.1 32.6
4.0 2.7
135 192
30-09-08
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