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| 1Q10 | BBVA Group highlights | Group information | Risk and economic capital management | Business areas | Corporate responsibility |
WB&AM continues to present excellent asset quality,
with a low non-performing asset ratio (1.3%), a
coverage ratio of 68%, and lower loan-loss provisions
basically due to the selective customer management
policy.
If the values for business volumes and earnings of the
WB&AM units in the Americas are added, the entire
area makes the following contributions to the Group:
Wholesale Banking & Asset Management
including the Americas
(Million euros)
Income statement
Gross income
Administration costs
Operating income
Income before tax
Net attributable profit
Balance sheet
Total lending (gross)
Customer funds on
balance sheet
Other customer funds
Total customer funds
Economic capital allocated
To summarize, the global perimeter of the area reflects
the high resilience of revenues, contained operating
expenses and lower impairment losses on financial
assets, which enable a net attributable profit of
€452m, a 9.5% year-on-year increase. Loan balances
fell back 13.3% and customer funds increased by
10.7%.
CORPORATE AND INVESTMENT BANKING
This unit coordinates the origination, distribution and
management of a complete catalogue of corporate and
investment banking products (corporate finance,
structured finance, structured trade finance, equity and
debt capital markets), global trade finance and global
transaction services. Coverage of large corporate
customers is specialized by sector (industry bankers).
31-03-10 Δ%
31-03-09
851 (0.4) 854
(185) 2.0 (182)
666 (1.0) 673
648 4.0 623
452 9.5 413
52,558 (13.3) 60,623
77,548 13.7 68,207
10,618 (2.7) 10,918
88,166 11.4 79,125
4,336 (7.0) 4,665
Spain and Portugal
Mexico
South America
The United States
Wholesale Banking & Asset Management
Corporate Activities
In the first three months of the year, the good
performance of recurrent revenues (net interest income
and fee income) was reflected in the excellent course of
the gross income, which rose 30.0% year-on-year to
€225m. This, together with the slowdown of growth of
operating expenses, explains how the operating income
amounts to €192m, 35.2% higher than in the same
period of 2009. Furthermore, the course of provisions
below that of last year has allowed for increased growth
in terms of net attributable profit, which amounted to
€132m, as compared to the €94m in the first quarter of
2009 (up 39.6%).
Outstanding transactions in the quarter include: in
fixed-income, ten issues were made to autonomous
communities for an amount of nearly €1,600m, which
accounts for a market share of over 25% and positions
BBVA in first place of the Spanish Autonomous
Communities ranking. Very significant issues have been
finalized in the corporates section, including Iberdrola,
Telefónica, ASF and Almston. Furthermore, the first
transaction in the foreign public sector was formalized
in the Schuldschein format. In the Americas, BBVA
participated in the issue of Kraft bonds, for a total value
of US$9,500m, and has acted as coordinator, lead
broker and liquidation agent in Argentina for two
marketable obligations of YPF.
As regards syndicated loans, one outstanding
transaction was that of Gas Natural valued at
€4,000m. In Europe, BBVA has participated in the
syndicated loans of Telecom Italia, Suez and Philips for
a total amount of €4,550m. Moreover, the Group was
granted the Latin American Loan of the Year award for
the structured transaction for the acquisition of Weston
Foods by Bimbo. A revolving syndicated credit was
closed with Pemex for $500m.
In structured finance, BBVA remains part of the most
relevant transactions at both the European and
American levels. In this regard, we should point out the
GSM-R in the rail sector in France and the E-51
highway project in Denmark. In the energy sector,
important transactions include that of Nord Stream,
€3,900m financing for a gas pipeline joining Russia
with Germany. Wind power activity continues in Spain
with its participation in the financing of several wind
farms. It also financed the Cedro Hill (Texas) wind
farm in the United States with a $363m investment,
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