anticipated the current economic situation by
implementing transformation and restructuring plans
focused on cost savings as far back as 2006. The Spain
& Portugal Area has actually reduced costs by 6.5%
compared to the first half last year. The variation in the
Americas was also very positive (despite the inclusion
of some countries with relatively high inflation) with a
decline of 0.3% at constant exchange rates.
Both the employees and branches of the BBVA Group
were reduced in the quarter, as a result of the
transformation plans and rationalization of the
distribution networks. At 30-Jun-09 the Group’s
employees numbered 103,655, compared to 105,154
at 31-Mar-09. The branch network consisted of 7,458
branches, 190 less than the end of March.
Number of employees
Spain
Mexico
South America
The United States
Rest of the world
Number of branches
Spain
Mexico
South America
The United States
Rest of the world
112,059 108,972 103,655
30,087
35,928
30,066
13,985
June
2008
29,070
34,535
30,022
13,371
11,879
December
June
2008 2009
7,971 7,787 7,458
3,547
2,050
1,576
3,375
2,052
1,574
653 641 640
June
2008
The cost/income ratio improved once more as
revenues rose and costs fell. The ratio now stands at
39.4%, a new milestone that confirms BBVA as one
of the most efficient banks in the financial system.
These developments helped to boost operating
income, which came to €3,474m in the second
quarter, a new BBVA record for a single quarter. The
December
2008 June
2009
28,718
32,713
28,391
3,151
2,028
1,494
Efficiency
(Percentages)
Gross income variation 1H09/1H08
Operating costs variation 1H09/1H08
increase was 24.8% compared to €2,784m in the
same period last year. The cumulative amount for the
first half-year came to €6,293m, a rise of 15.0%
compared to €5,472m for the same period last year.
At constant exchange rates the increase is 18.0%.
All business areas contributed to this achievement
with operating income of €2,335m in Spain &
Portugal, €758m in Wholesale Banking & Asset
Management (WB&AM), €1,717m in Mexico,
€425m in the United States and €1,132m in South
America.
7.8
Operating income
(Million euros)
5,472
(1) At constant exchange rate: +18.0%.
Provisions and others
Impairment losses on financial assets in the second
quarter of 2009 came to €1,029m. This was higher
than the €916m provided in the previous quarter. As
a result the cumulative figure for the first half is
€1,945m (€1,164m in the first half last year). This
item is affected by higher non-performing loans
arising from the weakening economic situation and
2Q09 GROUP INFORMATION
Earnings
43.2 44.6
1H
2008
1H
–1.6 2008 2009
2,688 2,784 2,695
2,355
1Q 2Q 3Q 4Q
1Q
2Q
2008
2009
+15.0% (1)
Efficiency ratio
2,819
6,293
39.4
3,474
11
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