2010, including: €250m for Corporación Reservas
Estratégicas de Productos Petrolíferos, €150m with the
Generalitat of Valencia, two loans (€100m each) to
Infraestructuras Ferroviarias de Cataluña and SUMA
Gestión Tributaria. The segment has also led in bonds
issued, totaling €6,305m, which represents 93% of the
total debt issued by the autonomous communities in this
first part of the year. Likewise, an interest rate hedge
transaction was finalized with the Council of Castilla-La
Mancha and has been awarded the tender for the accounts
for the area of the Prime Minister and Territorial Politics.
Business carried out with the SME segment suffered most
during this economic situation. The process of deleveraging
carried out situates lending at €29,506m and customer
funds at €6,925m at March 31, 2010. Therefore,
operating income stands at €194m and net attributable
profit at €97m.
Lending in the developer segment fell 5.1% year-on-year,
in line with the strategic objective of reducing balances in
this segment of customers. The weight of public housing
program finance continues to increase and now stands at
60% of the total.
OTHER UNITS
The Consumer Finance unit manages consumer finance
and business fitting through prescribers, as well as
equipment leasing activities, through Finanzia, Uno-e and
other subsidiaries in Spain, Portugal and Italy. In the first
quarter of 2010, this unit experienced excellent
performance in the operating result, with a significant
63.0% increase to €56m, and a positive net attributable
profit of €4m, as compared to the €28m in losses during
the first part of 2009. This is due to the solid growth of
gross income (up 25.4%), containment of costs (down
12.1%) and significant improvement of NPA’s. ASNEF’s
latest report (31-Dec-09) shows that BBVA is the leader in
financing volumes for automobiles and equipment goods,
leasing of fixtures, renting and leasing of equipment.
Spain’s sales also progressed favorably, with a loan-book
volume that stands at €5,668m. Quarterly invoicing in the
vehicle prescription business came to €216m (€208m in
the first quarter of 2009). Equipment leasing stood at
€67m, 6.4% more than in the first quarter of 2009.
Finally, UNO-e, the consumer finance through prescribers
and credit cards activity, closed the quarter with a slight
fall in lending (€709m as compared to the €874m as of
31-Mar-09) and sales that were very similar to those
recorded in the first quarter of 2009 (€315m, as compared
to the €347m the year before).
The foreign segment activity also showed good
performance. In Portugal, BBVA Finanziamiento managed
a loan portfolio 11.4% greater than that at the same date
in 2009 and which stands at €482m despite the decrease
in sales (€48m, down 14.5% from the same period in
2009). In Italy, as of 31-Mar-10, Finanzia SpA’s loan
portfolio increased 48.2% to €474m, and sales reached
€72m after a 31.3% year-on-year increase.
BBVA Portugal has a favorable credit evolution, which
closed the quarter with a year-on-year increase of 9.1% to
€6,526m due to increases in mortgages (up 22.4%),
supported by the Adaptamo-nos campaign and in lending
to companies (up 5.1%). In turn, customer funds in the
first quarter came to €2,338m. During this period, the
catalog of deposits (Depósito Taxa Crecente 2 annos
BBVA) and mutual funds (Fundo BBVA Investimento
Europa) was extended. Activities in investment banking
include project financing for a set of wind farms (€40m).
BBVA Seguros is the market leader in individual life
insurance policies, and has written premiums totaling
€305m in the first quarter of 2010 (up 4.8%). Growth in
individual life insurance policies was outstanding, with
€98m (up 41.3%) based on noteworthy activity in rentas
aseguradas (annuities). These are due, in part, to the change
in the product lending policy, whose improved profitability
is passed on to the customer. In terms of BBVA’s
sponsorship of the Professional Soccer League, it has
launched Seguro Afición, a free accident insurance policy
for all spectators attending Liga BBVA and Liga Adelante
games. However, the still-weak loan-book has impacted this
unit, which reported revenues of €89m for in-house policies
and €5m for brokerage on third-party policies, with a net
attributable profit of €63m (down 12.0%).
| 1Q10 |
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