Wholesale Banking & Asset Management
highlights in the first quarter
• High recurrence and quality of revenues.
• Excellent asset quality thanks to the selective customer
management policy.
• New international recognition of Corporate and
Investment Banking upon receiving nine Deals of the
Year awards from The Banker magazine.
The Wholesale Banking & Asset Management
(WB&AM) Area handles the Group’s wholesale
businesses and asset management in all the geographic
areas where it operates. For the purposes of this
financial report, the business and earnings of the units
in the Americas are recorded in their respective areas
(Mexico, South America and the United States).
WB&AM is organized around three business units:
Corporate and Investment Banking, Global Markets and
Asset Management. Furthermore it includes the
Industrial and Real Estate Holdings Unit, which
contributes to its diversification, and the Group’s
holdings in the CITIC financial group associated with
expansion in Asia.
In the first quarter of 2010, the area continued to show
a clear focus on the client and high recurrence and
quality in its revenues, as reflected by the year-on-year
improvement of the gross income, up 8.0% to €497m.
Containment of expenses, sound course of loan-loss
provisioning and the favorable tax effect of income by
the equity method stimulated the growth of the net
attributable profit above 20% to €284m.
Wholesale Banking & Asset Management
Operating income (Million euros)
344
325
1Q 2Q 3Q 4Q
2009
+9.1%
224
320
376
1Q
2010
Relevant business indicators
(Million euros and percentages)
Customer lending (gross)
Customer deposits (1)
Off-balance-sheet funds
· Mutual funds
· Pension funds
Other placements
Customer portfolios
ROE (%)
Efficiency ratio (%)
NPA ratio (%)
Coverage ratio (%)
By units, the increase in the net interest income and fee
income in Corporate and Investment Banking (with
year-on-year rates of growth at 17.4% and 61.7%,
respectively) and the favorable course of earnings in the
Global Markets unit supported by its customer-relation
based business model were especially noteworthy
improvements this quarter.
In terms of the area’s business activity as of 31-Mar-2010,
lending fell 12.9% year-on-year to €34,486m, which is
mainly held by Corporate and Investment Banking. This
fall is, in part, the result of the focus on customers with
greater credit quality, profitability and loyalty.
Furthermore, customer funds (deposits, mutual funds
and pension funds) have performed positively with a
year-on-year increase of 19.3% to €35,894m.
Wholesale Banking & Asset Management
Net attributable profit (Million euros)
236
241
1Q 2Q 3Q 4Q
2009
Wholesale Banking & Asset Management
31-03-10 Δ%
31-03-09
34,486 (12.9) 39,574
34,617 23.5 28,041
24,825 25.0 19,863
9,792 19.7 8,178
11,069 8.3 10,221
3,759 7.2 3,507
7,310 8.9 6,714
30.8 25.4
24.3 25.1
1.3 0.7
+20.3%
191
68 102
184
284
1Q
2010
| 1Q10 |
49
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