The unit successfully managed the increase in demand for
liquid types of customer funds, launching a new savings
campaign (Quincena del Libretón) that entailed 191,000
promotional gifts and brought in more than €693m in new
deposits. As a result the balance of savings and current
accounts rose 9.4% year-on-year to €30,958m, increasing
BBVA’s market share in the household segment (up 43 basis
points since 31-May-08 according to the latest available
figures). The unit continues to market time deposits
(Depósito Fortaleza and los Multidepósitos BBVA) and
these produced €2,601m of sales in the second quarter. In
fact, the portfolio of these products ended the quarter with
a year-on-year decline of only 1.6%, despite pricing
pressure by the competition. Mutual funds stand at
€29,571m (€29,253m at 31-Mar-09). Assets under
management in pension plans rose 2.7% quarter-on-quarter
to €9,378m, following a positive campaign (€6m) to entice
plans away from the competition.
BBVA Patrimonios, the unit that handles high-net-worth
individuals in Spain, increased its customer base 7.4% and
the assets under its management come to €10,193m
(€10,514m a year earlier).
The unit continued work on a plan to capture new
customers (Plan Proa) that started in the previous quarter.
Marketing activity during the quarter included an
agreement with the Spanish airline pilots union (SEPLA)
under which the more than 4,600 members will enjoy the
benefits of private banking.
In the personal banking segment the unit gathered €85m
in an annuity campaign (Rentas Aseguradas). In exchange
for an initial deposit, customers receive a monthly amount
for the rest of their lives with a guaranteed return.
The Insurance unit carried out a series of actions to
increase customer loyalty. They included lower-cost
products that help customers maintain a given level of
protection. It also introduced a special telephone platform
that complements the guidance customers receive through
the branches and provides them with the most adequate
solutions for their needs. In addition, the unit reshaped the
range of risk products that are not linked to finance
operations thus responding to the requirements of a society
that is constantly changing. The volume of premiums
issued on individual risk policies (life and non-life) came to
€302m in the year to June. BBVA Seguros continues to
lead in individual life insurance (risk) policies in Spain with
a 12.0% market share at March 2009 (latest available
figure). Savings policies in the first half included €165m of
premiums related to annuities.
The small business segment covers professional practices,
the self-employed, retailers, the farming community and
small companies. BBVA is the leader in this segment and
the corresponding loan portfolio stands at €14,826m. The
unit continued a campaign to support small companies,
retailers and the self-employed, which it launched in the
first quarter. It completed nearly 14,000 ICO operations
worth €352m, more than double the volume in the first
quarter. Moreover the point-of-sale terminal (Bono TPV)
for retail payments via credit cards helped BBVA to recover
its position as top retail provider.
Corporate & Business Banking
The Corporate & Business Banking Unit (CBB) deals with
SMEs, large companies, institutions and real estate
developer segments.
The CBB management model seeks to capitalise on
growth potential and for this purpose it has developed a
series of specific tools. Plan Anticipa2 uses customer
insight and works in advance to determine the risk
associated with growth opportunities. Planes Potenciales
and Vuelta a Casa help to increase cross-marketing,
boosting the volume of business and the number of
products a customer acquires. And the aim of Plan
Fortaleza is to increase the customer base, leveraging the
BBVA image and its competitive product range.
In the present complex conditions the loan portfolio grew
0.4% quarter-on-quarter to €91,454m and customer funds
on the balance sheet rose 9.4% to €27,322m. Total customer
funds under management improved their performance in the
second quarter, rising 8.4% to €28,795m.
The improvement in business volume, the unit’s work in
anticipating and differentiating and its cost control
policies, resulted in operating income of €847m (up
12.0% year-on-year). Net attributable profit fell 5.0% to
€464m after provisions of €191m.
In the second quarter the unit signed a new ICO agreement
(ICO-Anticipo Empresas y Autónomos) to facilitate
payment of invoices for construction work and services
provided to local governments. BBVA once again led in the
placement of ICO credit lines (as it has in recent years). In
2Q09 BUSINESS AREAS
Spain and Portugal
31
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