NET INTEREST INCOME
Net interest income continues progressing very
positively. It rose to €3,386m in the first quarter of
2010, with a 3.5% increase on the same period in
2009. This improvement is significant since it is the
result of contained lending and a decrease of the
weight of higher risk portfolios, such as consumer
finance and credit cards, in favor of residential
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/average total assets (ATA)
1Q10 4Q09
% of ATA % Yield/Cost % of ATA % Yield/Cost
mortgages and lending to public institutions and
governments (change of the mix that has a faster
impact on the decrease of earnings than on loan-loss
provisions). Therefore, BBVA has once again
achieved a favorable evolution of customer spreads
and good management of the balance sheets.
Commercial management, which affects the
performance of customer spreads, continues to be
focused on: moving the greater credit and liquidity
risk costs to asset operations and containing the
operating costs, selecting the products or segments
with the best risk-adjusted return on economic
capital and optimizing the structure of customer
funds. This business policy has not been affected by
needs for liquidity, thanks to the Group’s comfortable
position in this regard, and engaging in aggressive
price campaigns has not been necessary. This has
given rise to an improvement in spreads, reduced
weight of higher risk portfolios and an increase of
low-cost liquid funds.
3.4 1.19 3.5 1.08 3.8 1.02 3.5 1.34
26.5 2.79 26.7 2.82 25.8 2.88 25.1 3.15
4.8 1.83 4.6 1.97 4.6 2.14 4.8 3.62
59.8 4.82 59.8 5.20 60.2 5.09 60.9 5.78
40.2 3.31 40.6 3.41 40.9 3.68 41.0 4.41
35.2 3.42 36.0 3.50 36.2 3.82 36.4 4.44
4.9 2.53 4.5 2.77 4.7 2.64 4.7 4.16
19.6 7.90 19.2 8.97 19.3 8.07 19.8 8.62
5.5 0.77 5.5 0.29 5.7 0.37 5.8 0.51
100.0 3.79 100.0 4.01 100.0 3.97 100.0 4.56
13.5 1.98 14.0 2.16 14.1 2.16 13.1 3.35
47.0 1.07 46.3 1.11 46.1 1.29 45.5 1.72
20.5 0.58 21.3 0.61 21.6 0.85 21.0 1.22
14.6 0.77 14.8 0.83 15.8 1.06 15.5 1.53
5.9 0.12 6.5 0.12 5.8 0.27 5.5 0.35
26.5 1.44 25.0 1.54 24.5 1.67 24.4 2.14
23.0 1.81 21.7 1.87 21.7 2.12 22.6 2.59
10.7 0.79 12.2 1.18 12.5 0.75 13.5 0.80
5.7 - 5.7 - 5.7 - 5.4 -
100.0 1.27 100.0 1.37 100.0 1.45 100.0 1.91
2.52 2.64 2.52 2.65
3Q09
% of ATA % Yield/Cost
2Q09
% of ATA % Yield/Cost
| 1Q10 |
9
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