16
| 1Q10 | BBVA Group highlights | Group information | Risk and economic capital management | Business areas | Corporate responsibility |
The low risk profile has been maintained, with a
reduced level of leverage.
The main items in assets and liabilities are well
known to the Group, as they have been generated
by the Bank itself from the portfolios of its
customers, about whom it has detailed
information based on long-term relationships.
This allows great consistency in prices, without the
need for aggressive campaigns, above all when it
comes to gathering funds. Priority is given to
profitable growth rather than growth in volume from
items that are not related to the business.
The following are worth mentioning in terms of the
performance of banking activity:
The loan book continues to be weak, although
with positive signs in business with individuals.
The proportion of items of lower risk, such as
residential mortgages and lending to public
institutions and governments, continues to increase.
The lower resulting operating income from this
changed mix is being compensated by a better
price management.
Customer funds have performed favorably as a
result of the increase in off-balance sheet funds
and the positive performance of both customer
deposits in the non-domestic sector and lower-cost
funds in the domestic sector. The lower levels of
activity are focused on term deposits.
Exchange rate movements have had a slightly
positive impact on the year-on-year comparison of
the balance sheet and figures for business activity, as
in the last twelve months, the appreciation of the
main currencies that affect the balance sheet and
activity of the Group compensate for the devaluation
of the Venezuelan bolivar. We are also showing rates
of change at constant exchange rates for the most
important data in order to help the analysis of the
business activity.
LENDING TO CUSTOMERS
Gross lending to customers stood at €338 billion at
the end of March, a year-on-year fall of 0.8%,
Relevant events
Earnings
Business activity
Capital base
The BBVA share
although 1.6% up on the figure for 31-12-09, helped
by the evolution of exchange rates.
In terms of the balance between domestic and
non-domestic lending, the former has grown more
thanks to the significant increase in lending to the
public sector, which represents 10.8% of the amount
of domestic lending at €22 billion, a year-on-year
increase of 21.9%. Lending to other domestic sectors
accounted for the remaining 89.2% at €184 billion,
with a fall of 2.6% in the same period due to reduced
activity with companies and businesses and the
To view a Ceros magazine you need to have JavaScript enabled in your browser and have the flash player 8 or higher installed. To install the latest flash player, click the icon above, install the flash plugin and then click here to refresh this page.