Mexico highlights in the first quarter
• Winning market share throughout the quarter in
both lending and customer funds.
• Slowdown of the rate of decrease in consumer
finance and credit cards, with year-on-year
increases in sales.
• Improvement of the risk premium and asset quality.
• Sound management of liquidity and capital.
This area comprises the banking, pensions and insurance
business conducted in Mexico by the BBVA Bancomer
Financial Group.
During the first quarter of 2010, the Mexican economy
continued to show signs of a steady but slow recovery.
There has been a sustained improvement in the level of
formal employment in non-agricultural activities,
particularly in manufacturing branches and services more
closely linked to expanding foreign demand. The latest
available data on the components of the GDP
corresponding to the first quarter of 2010 show that
exports of goods and services have been the driving force
behind economic growth. The contribution made by
domestic demand is likely to improve gradually as
household income grows, mainly as a result of growth in
employment.
Annual inflation in March was 4.8%, compared with
3.6% at the close of 2009, with greater upward pressure
on highly volatile non-core prices such as agriculture,
energy and transport. Despite this, the trend in inflation is
Relevant business indicators
(Million euros and percentages)
Customer lending (gross)
Customer deposits (2)
Off-balance-sheet funds
· Mutual funds
· Pension funds
Other placements
Efficiency ratio (%)
NPA ratio (%)
Coverage ratio (%)
(1) At constant exchange rate.
(2) Excluding deposits and Bancomer´s Market unit repos.
consistent with the rise in taxes for this year and within the
estimates of the Central Bank.
Domestic financial variables, such as indicators of
(1)
31-03-10 Δ% Δ% 31-03-09
32,839 10.5 (1.9) 29,705
33,295 10.4 (2.0) 30,151
24,351 37.2 21.8 17,746
12,952 33.8 18.8 9,681
11,399 41.4 25.5 8,064
sovereign risk, interest rates and exchange rates, have
consolidated their positive spreads with respect to other
emerging countries. The Mexican peso has strengthened
against the dollar and there has been an improvement in
the stock markets and a reduction in the country-risk
indicators. The Central Bank of Mexico has also decided
to maintain its policy interest rate unchanged at 4.5%.
As usual, the comments below are based on constant
3,135 11.4 (1.1) 2,814
34.8 32.4
exchange rates, unless there is indication to the contrary.
4.1 3.6
131 150
Against a background of slow recovery, Bancomer Banking
Group generated a net interest income of €860m, similar
to the figure a year before, despite the continued change in
Mexico
| 1Q10 |
37
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