compared with the close of 2009. The non-performing loan
portfolio in this segment has also held up well in the first
quarter of the year, with a reduction in the NPA ratio of
130 basis points since December 2009.
The balance of customer funds (including bank deposits,
repos and mutual funds and investment companies)
amounted to €46,246m, mainly as a result of a 7.1%
growth in current accounts. As a result, market share
increased by 84 basis points over the quarter. This increase
has been supported by the Equipa tu Negocio (Equip Your
Business) campaign for customers in the SME segment,
with more than 10,800 winners. In terms of
off-balance-sheet funds, investment companies performed
particularly well, with an increase of 18.8% on March
2009 and market share up 21 basis points compared with
the end of last year. Thus the composition of customer
funds continues to be very profitable, with 44.4% of
low-cost deposits (current and savings accounts), 28.0%
investment companies, 18.5% term deposits and the
remaining 9.1% assets sold under repurchase agreement.
As of March 31, 2010, BBVA Bancomer had 6,370 ATMs,
133 more than on 31-Dec-09. The productivity of the
branch network has increased by 29% on a year earlier.
One of the reasons for this is the introduction of
practicajas (a new kind of ATM), which reduce the volume
of operations in the branches and increase the sale of
products. Other alternative distribution channels have also
increased their efficiency, such as Bancomer.com, Bancomer
móvil and ATMs. The authorization achieved to operate
banking correspondents will increase points of sale by
more than 12,000 in 2010.
Another important factor to highlight is the sound liquidity
and capital management in BBVA Bancomer. This has
ensured good capital adequacy and a capital ratio of
14.9%.
A number of Deals of the Year 2009 have been announced
in March by various specialized publications. The Group’s
corporate and investment banking in Mexico has received
nine of these awards, demonstrating BBVA Bancomer’s
conviction that it will continue to lead and participate in
deals that are attractive for its customers and adapt to their
needs.
Finally, BBVA Bancomer has consolidated its community
involvement in Mexico by using its leading position to
develop programs and actions promoting development and
education in the country. BBVA Bancomer’s Corporate
Social Responsibility Report is the first in the Mexican
financial sector to receive the highest A+ rating from
Global Report Initiative. It is also the first to submit its
results to verification by Deloitte.
PENSIONS AND INSURANCE
The Pensions and Insurance business contributed an
attributable profit of €83m in the first quarter of 2010,
46.4% up on the figure a year earlier.
The pension business has benefited from the better
economic climate in the country, which has led to
improved variables in economic activity and employment.
The quarter has also been positive in the financial markets.
Assets under management by Afore Bancomer increased by
25.5% year-on-year and the company contributed an
attributable quarterly profit of €16m, nearly double that
in the first quarter of 2009 (+84.0%). The increase was a
combination of a rise in revenues (with an increase in gross
income of 26.4%) and strict cost control (costs fell 11.9%
over the last 12 months). As a result, operating income was
up +85.7% to €24m.
The insurance business generated an attributable profit of
€67m in the quarter, 39.4% up on the first quarter of 2009.
It was boosted by good performance in business volumes,
with a total year-on-year increase of written premiums of
23.2% in the three companies. Also notable was the net
trading income (+84.8%) and moderate increase in costs
(+3.0%). As a result, the quarterly operating income
increased year-on-year by 46.7% to €96m.
| 1Q10 |
39
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