Total lending. Domestic sector (gross)
(Billion euros)
200 214 207
June
2007 June
2008 June
2009
figure as a year earlier and slightly less than at the
end of the first quarter of 2009 (down 1.4%).
Of total lending to domestic customers in Spain the
public sector accounts for €19 billion (up 11.4%
year-on-year). Loans to the domestic private sector
were down 4.1% to €188 billion, compared to €196
billion a year earlier. This is in line with the general
downward trend in lending in the entire sector.
Commercial finance is the most affected area (down
37.4%) because it is short-term and closely linked to
sales. Secured loans, which are the main component
of domestic lending, stand at €107 billion. This figure
is very similar to the end of June last year (down
0.5% year-on-year) and slightly higher than the end of
the first quarter (up 1.1%). Non-performing assets in
the domestic private sector stand at €7,797m, an
increase of 13.2% quarter-on-quarter. This compares
favourably with the increase of 25.7% that occurred
during the first quarter against 31-12-08 and shows
that additions to this item are now slowing.
At the end of the first half, lending to non-resident
customers in Spain rose 4.9% to €128 billion,
compared to €122 billion a year earlier. This was
the result of work by the branches in New York,
Asia and various Latin American countries,
particularly Peru, Venezuela, Paraguay and Uruguay,
with double-digit increases.
Customer funds
Total customer funds on and off the balance sheet
increased 2.2% year-on-year to €499 billion at
30-Jun-09.
–2.9%
Detail of total lending to domestic sector
(gross) (Percentage)
Secured
loans
Other
loans
June
2007
Customer funds on the balance sheet continue to
outperform, as they did throughout last year and in
the first half of this year. At the end of June they
stood at €369 billion, an increase of 5.9%
compared to €348 billion at 30-Jun-08. Of this
amount, customer deposits account for €249 billion,
up 7.0%. Marketable debt securities account for
€102 billion (up 2.8%) and subordinate liabilities
(subordinate debt and preference securities) account
for €17 billion (up 10.3%).
Customer funds off the balance sheet (ie, mutual
funds, pension funds and customers’ portfolios)
amounted to €130 billion at the end of June,
compared to €140 billion a year earlier. The
decrease was 7.2% (6.9% at constant exchange
rates). If the effect of the Consolidar AFJP pension
funds in Argentina (now nationalised) is excluded,
the decrease is only 4.7%. These funds are still
affected by the sharp decline in the markets during
the past 12 months, which lowered the value of
mutual funds and customer portfolios. However,
there are signs of improvement because, compared to
Customer funds
(Billion euros)
Other
customer
funds
Customer
funds on
balance sheet
49.2
50.8
149
327
2Q09 GROUP INFORMATION
Business activity
50.2 51.4
49.8 48.6
June
2008 June
2009
477 488 499
140 130
348 369
June
2007 June
2008 June
2009
(1) At constant exchange rate: +2.3%.
+2.2% (1)
15
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