As in earlier quarters, focussed management of entry prices
and firm handling of spreads have been key factors to
compensate for the moderation in the growth of lending
volumes grew more slowly (ending September at
€24,529m), practically flat against the previous year
(–0.3%). Meanwhile, customer funds in the banks ended
September at €32,338m (including mutual-fund balances).
This was a year-on-year growth of 10.8%. Current
accounts performed especially well, rising 20.1% against
September 2008. The assets under management in the
pension-fund business reached €33,180m at the end of the
quarter, with like-for-like growth of 17.6% year-on-year (ie,
excluding the impact of the exit from the Consolidar AFJP).
Year-to-date, 9.0% more assets were brought in than during
the same nine-month period of 2008. In the insurance
companies the year-on-year comparison is impacted by the
exit of Consolidar Salud at the end of last year.
Revenues continued to evolve positively, especially net
interest income, which went up to €1,822m year to date,
15.6% more than the first nine months of the previous
year, driven by improved spreads. Fee income also
performed favourably, fed by revenues related to customer
business. It stood at €619m to September (up 11.1%). Net
trading income (at €360m) benefitted from the bullish year
on the financial markets, with high returns from the
pension fund managers’ and the insurance companies’
proprietary trading, and the realisation of capital gains on
equity-portfolio divestments during the first half of the
year. Year to date gross income to September reached
€2,800m. Year-on-year growth was a sound 21.8%.
Cost control was another fundamental issue this year.
Operating costs stood at €1,116m, their growth slowing to
9.3%, significantly below the average inflation rate for the
region. This improved the cost-income ratio to 39.9%
(44.9% in the first nine months of 2008), while operating
income, at €1,684m was up 31.7% year-on-year.
During the last three months, risk acceptance policy has
been strict and the active recovery measures adopted in
previous quarters have been maintained, such that there
was hardly any worsening of asset quality. The NPA ratio
was kept under control and stable, standing at 2.8% at the
end of September, a similar level against the 2.6% reported
at the end of the second quarter and not far from the 2008
year-end ratio of 2.1%. Impairment losses on financial
assets were €310m to September, with a year-on-year
increase of 46.9%. Coverage of doubtful risks remained
within the area’s comfort zone (127%).
Banking business
The entities comprising the area’s banking business
contributed an attributable profit of €600m over the last
nine months. This was a year-on-year increase of 16.1%.
The details of their performance are highlighted below.
In Argentina, BBVA Banco Francés generated an
attributable profit of €91m to September, influenced by
excellent net interest and fee income, which rose
respectively at 22.9% and 34.0% year-on-year, despite the
notable slowdown in lending growth (up 6.9%, excluding
loans to the public sector, which were affected by the swap
of secured loans carried out at the end of last year).
Customer funds behaved very well, growing 17.3% year-
on-year. The rising revenues and moderation in costs
brought operating income up to €197m (a 37.5% rise
year-on-year). Euromoney declared BBVA Banco Francés to
be the best bank in Argentina in 2009.
BBVA Chile and Forum brought in an attributable profit of
€61m to September (up 36.8%). Gross income grew 30.3%,
boosted by the excellent performance of several income lines,
especially fee income (up 43.0%) and net trading income (up
252.8%). Trading income was boosted by divestment from
the fixed-income portfolio during the first half of the year.
Business-volume growth slowed significantly, although
consumer credit and transactional customer funds continued
performing well, rising 5.8% and 8.3%, respectively.
Operating income performed well, reaching €166m over the
nine month period, reporting a 51.0% rise.
In Colombia, BBVA’s banking business generated €112m
in attributable profit. Here too, the performance of
revenues was the key to this 10.4% growth. Net interest
income showed healthy growth (up 11.7%), as active
management of spreads offset the decline in the loan
book experienced by the entire financial industry in
Colombia. Apart from these favourable data on the
revenue side, costs grew just 2.5%, such that the
cost-income ratio at the end of September was 36.6% (as
against 40.5% one year earlier) and operating income
stood at €280m (up 20.9%). Euromoney ranked BBVA
Colombia as having the best transactional services in the
country for 2009.
BBVA Banco Continental in Peru obtained an attributable
profit of €89m (up 39.2%). Its revenues also showed
excellent performance, especially its net interest income (up
3Q09 BUSINESS AREAS
South America
49
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