8
GROUP INFORMATION 3Q09
Earnings
Net interest income
(Million euros)
3,088
2,726 2,829 3,043
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
(1) At constant exchange rate: +23.5%.
and liquidity to lending operations and containing the
cost of funds; identifying products or segments with
better risk-adjusted returns; and optimising the
structure of customer funds. These actions led to an
improvement in the entry prices both of new operations
Breakdown of yields and costs
Cash and balances with central banks
Financial assets and derivatives
Loans and advances to credit institutions
Loans and advances to customers
•Euros
- Domestic
- Other
•Foreign currencies
Other assets
TOTAL ASSETS
Deposits from central banks and credit institutions
Deposits from customers
•Euros
- Domestic
- Other
•Foreign currencies
Debt certificates and subordinated liabilities
Other liabilities
Equity
TOTAL LIABILITIES AND EQUITY
NET INTEREST INCOME/ATA
+19.7% (1)
8,599 10,292
3,272
3,586
3,434
%of ATA %Yield/Cost
and repreciations, to a smaller proportion of portfolios
with greater risk (such as consumer finance) and to an
increase in low-cost liquid funds.
The management of structural risks, such as interest
and liquidity risk, was characterised by anticipation
and strict prudence. This helped to create a solid
balance sheet whose main features are low leveraging
and a lower risk profile. On one hand, the bank built
up portfolios in different countries that helped to
stabilise net interest income and the economic value of
the balance sheet. And on the other hand, the strong
growth of lending in previous years was financed by
liabilities that were suitable structured in terms of
maturity, type of instrument and diversification. So,
by forgoing short-term earnings in favour of
long-term stable ones, it created ample liquidity and
diversified the sources of finance. This in turn helped
to minimise the cost of funds. As a result, it is now
3 rd Quarter 09 2 nd Quarter 09 1 st Quarter 09 4 th Quarter 08
%of ATA %Yield/Cost %of ATA %Yield/Cost %of ATA %Yield/Cost
3.8 1.02 3.5 1.34 3.0 2.15 2.9 2.98
25.8 2.88 25.1 3.15 24.2 3.38 23.7 3.43
4.6 2.14 4.8 3.62 5.3 2.86 6.0 3.42
60.2 5.09 60.9 5.78 61.5 6.40 60.9 7.29
40.9 3.68 41.0 4.41 41.3 5.16 40.0 6.11
36.2 3.82 36.4 4.44 36.4 5.38 36.6 6.08
4.7 2.64 4.7 4.16 4.9 3.54 3.4 6.46
19.3 8.07 19.8 8.62 20.2 8.94 21.0 9.53
5.7 0.37 5.8 0.51 6.0 0.36 6.5 0.71
100.0 3.97 100.0 4.56 100.0 4.99 100.0 5.59
14.1 2.16 13.1 3.35 13.4 4.01 14.9 4.59
46.1 1.29 45.5 1.72 44.8 2.46 45.8 3.46
21.6 0.85 21.0 1.22 21.0 1.94 21.0 3.06
15.8 1.06 15.5 1.53 16.4 2.15 16.0 2.87
5.8 0.27 5.5 0.35 4.7 1.23 5.0 3.70
24.5 1.67 24.4 2.14 23.7 2.92 24.8 3.79
21.7 2.12 22.6 2.59 23.4 3.57 22.1 4.24
12.5 0.75 13.5 0.80 13.4 0.69 12.3 1.29
5.7 - 5.4 - 5.1 - 5.0 -
100.0 1.45 100.0 1.91 100.0 2.57 100.0 3.36
2.52 2.65 2.42 2.23
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