GROUP INFORMATION
RELEVANT EVENTS
BBVA has closed the first quarter of 2010 with very
positive news in all the financial variables that are
particularly significant in terms of non-performing
assets, solvency, liquidity and earnings. The NPA ratio is
the same as in December 2009, the coverage is slightly
higher and the organic generation of core capital for the
quarter was 22 basis points. A significant amount of
funds have been gathered through the issue of
instruments of different kinds at very competitive prices.
Finally, the net attributable profit was €1,240m.
Listed below are the most important aspects of the
performance of the Group and its main areas during
quarter:
Excellent performance in operating revenues. The
gross income in the period increased year-on-year
by 8.4% to €5,301m. This level is based on the
continuing good performance of the net interest
income, which was up 3.5% on the same quarter
last year. The other income items also contributed
positively: fee income grew year-on-year after a
long period of falls, the net trading income was
particularly good and the equity-accounted
income increased as a result of the contribution
from China Citic Bank (CNCB).
Operating costs were controlled and contained,
with a year-on-year growth of 2.3% due in part
to greater rental costs through the sale and
leaseback operation of some buildings in Spain in
the third quarter of 2009. In any case, the figure
is below the average inflation of all the countries
as a whole in which BBVA operates.
The efficiency ratio, at 40.0% in the quarter, was
in line with that of 2009.
As a result, the operating income for the quarter
was €3,183m, an increase of 12.9%, showing the
strong capacity of BBVA to continue generating
sound operating results despite the current
economic crisis.
The Group’s risk premium has tended to stabilize
at 1.24%, slightly under the figure for the fourth
quarter of 2009. The excellent operating result
allows prudential criteria to be maintained, and
make additional provisions to reduce the use of
generic provisions and improve the coverage.
In all, the attributable profit in the first quarter
was €1,240m. This figure is particularly notable
given the duration of the adverse economic
climate in which it was generated. The result
means that both ROE and ROA were high, at
17.7% and 1.01%, respectively.
Once more, it is worth highlighting that all the
areas of business contribute positively to
generating the net attributable profit and continue
to maintain a privileged competitive situation in
their corresponding segment or geographical area,
in terms of positioning, asset quality, structure of
the balance sheet and capacity to generate
earnings.
The general volume of business was marked by
the stable level of assets, with an increased weight
of portfolios of lower risk. Lending continues to
be weak (although there are some signs of
improvement), due to the global economic
slowdown and the time lag between the start of a
recovery in some areas like Mexico and the
United States, and the change in the trend of
lending volumes. Customer funds increased,
basically thanks to growth in assets under
management and an increase in the lower-cost
funds (current and savings accounts). In general
terms, price management continues to be more
important than volume growth.
The NPA ratio remains at the levels of the close of
2009, at 4.3%, while coverage has increased
slightly to 59% at the close of the first quarter of
2010. In addition, there are positive signs both in
terms of levels of new NPA and in recovery rates,
which are increasing, so that the balance of NPA
is very favorable in the quarter, as the slight
increase registered is due to the effect of the
exchange rate. It constant exchange rate terms it
has decreased.
| 1Q10 |
3
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