32
BUSINESS AREAS 2Q09
Spain and Portugal
the first half it concluded €1,231m of which more than
70% was handled by CBB. Of the total amount
ICO-Liquidez accounted for €711m and ICO-Pyme €310m.
In the SME segment the loan portfolio stands at €31,773m
and customer funds are €7,991m. In the first half, net
interest income rose 1.9% year-on-year to €407m. Other
revenue lines fell more than the improvement in costs
therefore after an increase in provisions, net attributable
profit came to €270m (€280m in the first half last year).
Lending to large companies stands at €17,171m and
customer funds are €4,489m. Operating income rose
23.0% year-on-year to €145m and net attributable profit
increased 1.9% to €70m.
Lending to public and private institutions has grown 6.2%
since 31-Mar-09 to €24,286m and customer funds stand
at €16,285m (up 22.0%). Operating income is €173m (up
38.2%) and net attributable profit is €115m (up 8.8%).
Among its operations in the second quarter the unit
participated in various syndicated loans. They were
Agencia Catalana de L`Aigua (€25m), Canal de Isabel II
(€12.5m) and a syndicated loan to Logroño Integración
del Ferrocarril 2002 (€35m). In addition, BBVA won
management of Ministry of Defence funds with substantial
business potential based on its 170,000 employees.
The steep fall in the real estate market led to a contraction
in lending to the developer segment, which declined 1.9%
compared to the first quarter. Government-regulated
housing (VPO) is gaining ground at the expense of other
types. By number of units, VPO now accounts for nearly
50% of new operations, compared to 20% only a year
earlier.
Other units
The Consumer Finance unit manages consumer finance
and on-line banking via Uno-e, Finanzia and other
companies in Spain, Portugal and Italy. In the first half of
2009 it obtained operating income of €68m (up 11.2%
year-on-year) thanks to an increase in spreads and a
decline of 10.8% in costs. The net attributable loss of
€65m was due to an increase in loan-loss provisions
following a rise in non-performing assets, especially those
linked to consumer finance.
In Spain, although the outlook is bleak and family
spending is down, the unit lifted its loan portfolio 4.2%
year-on-year to €6,373m. The vehicle prescription
business, where vehicle registrations plummeted 38.3%,
invoiced €462m (€757m at 30-Jun-08). Equipment
finance and equipment leasing, affected by lower corporate
lending, invoiced €124m and €157m, respectively. The
fleet of cars in leasing plans with maintenance (renting)
stands at 35,535 units. Lastly, Uno-e’s loan portfolio stands
at €1,107m with invoicing of €852m (€1,004m at
30-Jun-08). Customer funds managed or brokered by the
unit came to €1,387m (€1,412m at 30-Jun-08). In
particular, time deposits rose 7.1%.
In Portugal, BBVA Finanziamento invoiced €123m in the
first halfand lendingrose 13.8% year-on-year to €477m.
And at 30-Jun-09 the leasing plan companies in Italy had a
fleet of 13,249 vehicles.
Despite the slowdown in business, BBVA Portugal
continued to demonstrate its considerable ability to
innovate with new retail proposals entailing loans and
deposits. They included campaigns to finance home buyers
and to promote consumer finance. The corporate segment
launched a campaign to promote products such as accounts
payable financing, which increased invoicing 16.5%. The
demand for customer funds with a conservative risk profile
was satisfied by a new product (Depósito nos Adaptamos
BBVA). And those with a greater risk appetite have
Depósito Acciones Europa BBVA. Furthermore the range of
mutual funds was extended by the launch of a bond fund
(BBVA Obligaciones Gobiernos), which invests in public
sector debt. Lastly, project finance included two syndicated
loans for GALP and the Jerónimo Martins Group (€65m
and €35m, respectively).
The loan portfolio grew 3.9% year-on-year (mortgages
were up 4.1%) to €6,161m. Deposits came to €2,013m
(€2,107m a year earlier). The higher level of business and
careful management of prices helped to boost net interest
income 17.2%. which together with a new improvement in
efficiency (47.4%), produced a 45.7% rise in operating
income and a 217.2% jump in net attributable profit.
In the first half the insurance unit contributed revenues to
the Group of €274m from its own policies and €14m in
brokerage on the policies of other companies. Net
attributable profit came to €144m (up 9.9% year-on-year).
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