34
BUSINESS AREAS 2Q09
Wholesale Banking & Asset Management
WB&AM highlights in the second
quarter
• Strong and recurrent revenues.
• Lower risk profile with focus on customers with higher
credit quality and bigger business potential.
• BBVA voted best trade finance bank in Latin America by
Trade Finance Magazine
• Strengthening its leadership in:
- Asset management and equities brokerage in Spain.
- Syndicated loans in Latin America.
The Wholesale Banking & Asset Management (WB&AM)
Area handles the Group’s wholesale businesses and asset
management. It is organised around three major units:
Corporate & Investment Banking, Global Markets and Asset
Management. Furthermore it includes the Industrial and Real
Estate Holdings Unit, which contributes to its diversification,
and the Group’s holdings in the CITIC financial group,
associated with the expansion in Asia.
In the first half of 2009 the area confirmed the strength and
recurrency of its revenues, which are practically the same as the
first half last year. Corporate and Investment Banking reported a
notable increase in net interest income and in net fees &
commissions, and the Global Markets’ franchise earnings and
trading also did well. These improvements offset the drop in
sales from the portfolio of industrial holdings. All this was
compatible with a lower risk profile thanks to the moderate
growth of lending, which focused on customers of higher quality,
and on fund gathering that improved the area’s liquidity. For the
third quarter running, Asset Management strengthened its lead
in assets under management in the Spanish market.
In the first half of 2009, WB&AM (considering only its units
in Europe, New York and Asia) contributed net attributable
Wholesale Banking & Asset Management
Operating income (Million euros)
–1.6%
1Q 2Q 3Q 4Q
1Q
2Q
2008
2009
770 758
411
386
359 371
346
93
Relevant business indicators
(Million euros and percentages)
Customer lending (gross)
Customer deposits (1)
• Deposits
• Assets sold under repurchase
agreement
Off-balance-sheet funds
• Mutual funds
• Pension funds
ROE (%)
Efficiency ratio (%)
NPA ratio (%)
Coverage ratio (%)
(1) Including collection accounts.
profit of €539m to the Group’s consolidated figures. This was
3.3% less than the same period last year due mainly to lower
sales from the industrial holdings portfolio so far this year and
because the capital gains recognised in 2008 were associated
with a lower tax rate. The latter is reflected in income before
tax for the first half of 2009, which rose 6.7% year-on-year to
€744m.
At the end of the first half of 2009, the area recorded a small
increase in lending to customers (up 2.0%), bringing the loan
portfolio to €44,814m (mainly in Corporate and Investment
Banking). In the second quarter the area concentrated on
customers with high credit quality with whom it is building
business relationships. Customer funds (deposits, mutual
funds and pension funds) performed well, rising 18.8% to
€63,654m. This positive development is still associated with
the sharp rise in customer deposits (up 21.5%).
Wholesale Banking & Asset Management
Net attributable profit (Million euros)
–3.3%
1Q 2Q 3Q 4Q
1Q
2Q
2008
2009
185
557 539
290
268 268
271
30-06-09
44,814 2.0 43,951
60,852 11.7 54,494
53,193 21.5 43,765
7,660 (28.6) 10,729
10,461 6.8 9,799
3,548 24.2 2,856
6,913 (0.4) 6,943
26.5 36.6
25.8 24.5
0.7 0.0
133 n.m.
30
Wholesale Banking
& Asset Management
Δ% 30-06-08
To view a Ceros magazine you need to have JavaScript enabled in your browser and have the flash player 8 or higher installed. To install the latest flash player, click the icon above, install the flash plugin and then click here to refresh this page.