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| 1Q10 | BBVA Group highlights | Group information | Risk and economic capital management | Business areas | Corporate responsibility |
In regards to customer funds on balance sheet, the unit
maintained its positive performance for the second
consecutive year in the capture of salary payments and
pension funds that, together with La Jornada de Tu Vida
(Day of your Life), contribute to reach a balance in savings
and current accounts of €30,225m, up 6.9% year-on-year.
Market share improved by 26 basis points compared to
28-Feb-09. Term deposits closed the first quarter with
€27,586m after the marketing of the Depósito Fortaleza
Nómina (Strength Paycheck Deposit) and Depósito Líder
(Leader Deposit).
BBVA Private Banking closed the quarter with funds under
management in Spain of €36,025m, down 2.1%
year-on-year, and with 1.1% growth in its client base. The
unit closed 2009 as the market leader in SICAV, for both
assets under management (€2,998m) with an 11.7%
market share and for number of companies (289).
Likewise, Euromoney has named it the best private bank in
Spain for the quality of its customer service, product range
and high level of advisory.
In the small business segment (professional practices, the
self-employed, retailers, the farming community and small
companies), among other initiatives, the unit launched the
RAIN Plan (Business Investment Reactivation), which
incorporates the marketing of ICO credit lines, with 6,804
transactions formalized for €159m; the use of
pre-approved lines of loans with 150,000 pre-approved
clients; the Plan Más Profesional and the new Plan de
Choque Comercios which has allowed it to increase is
activity with retailers to €621m, a 7.4% increase
year-on-year. As of 31-Mar-10, the unit’s loan portfolio
stood at €13,839m (€15,343m as of 31-Mar-09), thus
maintaining the balance in the quarter.
CORPORATE AND BUSINESS BANKING
Corporate and Business Banking (CBB) handles SMEs,
large companies, institutions and developers with
specialized branch networks for each segment. It also
contains the product management unit that designs and
markets specific products for different market segments.
The unit closed the first quarter with a loan-book of
€90,782m (€91,149 as at 31-Mar-09) and with customer
deposits of €23,804m (€24,979 as at 31-Mar-09). The
profitable growth policy, proper management of business
Spain and Portugal
Mexico
South America
The United States
Wholesale Banking & Asset Management
Corporate Activities
opportunities and containment of costs have made it
possible to maintain the operating income at this
still-complex juncture; it now stands at €393m as
compared to the €398m from the same quarter last year.
The above, together with a prudent risk management
policy and stable loan-loss provision, led to an attributable
profit of €228m (down 1.2% year-on-year).
Lending to companies continued to suffer the lethargy of
the market due in part to the deterioration in the
expectations of economic agents. However, the Group is
one of the most active institutions in ICO fund placement,
with a 13.2% market share as of 28-Mar-10 (close of the
sixth bi-weekly period), 144 basis points more than at the
same date in 2009, and with activity amounting to €504m
in the first quarter of 2010. The new ICO-2010 agreement
was signed in January (Inversión Nacional (National
Investment), Inversión Internacional (International
Investment), Emprededores (Entrepreneurs), and ICO
Liquidez 2010 (Liquidity) lines), in addition to the lines
ICO-FuturE, ICO-Economía Sostenible (Sustainable
Economy), ICO-Astilleros (Shipyard), ICO for improved
competitiveness of the manufacturing sectors and ICO for
cinematographic production support. In terms of working
capital, we should note the €2,563m in factoring
assignments and €2,695m in confirming advances and
extensions, which consolidate the BBVA’s leadership
position for both products. BBVA also holds a clear
leadership position in the marketing of leasing products in
the real estate sector.
By customer segments, we should also make note of the
good performance in the corporate segment, which has
maintained the same lending volumes from the previous
year, at €17,000m, and the growth of funds to €4,894m
(up 1.4%). Positive growth was also observed in the
operating income (up 14.2% year-on-year, to €81m) and
in the net attributable profit, marking a 30.0%
improvement to €61m.
BBVA is still one of the market leaders in the institutions
segment. Lending increased 17.4% year-on-year to
€26,844m, and customer funds remain similar to those
recorded a year ago, €13,175 (down 1.3% year-on-year).
We should note the strong course of the operating income,
with a 1.0% improvement in the year to €75m, as well as
maintaining the net attributable profit at the same level as
during the first quarter of 2009, €52m. Important
transactions were signed between January and March
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