In the United States net interest income rose 23.4%
year-on-year in the fourth quarter at constant rates,
sustained mainly by an increase in business volume
following the incorporation of Guaranty and the
repricing effect sustained through out the year.
South America once again reported a positive
performance of net interest income in the quarter
and the year (up 14.1% and 15.2%, respectively, at
constant exchange rates against the same periods of
2008). This reflects the higher volume of customer
funds, sustained lending and healthy spreads.
Gross income
Net fee income for the year fell 2.1% to €4,430m
(up 1.0% at constant exchange rates). Fees on
mutual and pension funds were down 18.3%
year-on-year and fees on banking services were up
4.3% (despite reduced business).
Net trading income contributed €1,544m in 2009,
which was very similar to 2008 (€1,558m).
Dividend income for the year came to €443m
(€447m in 2008). The main component in this item
was Telefonica’s dividend.
Income by the equity method in 2009 came to
€120m after booking the contribution of China
Citic Bank (CNCB) in the fourth quarter. In 2008
this item came to €293m, which reflected
Corporación IBV’s sale of an interest in Gamesa.
The last item is other operating income and expenses,
which came to €248m in 2009 (€218m less than
2008). This was mainly due to the effect in this item of
a currency correction for hyperinflation in Venezuela
(€245m) and higher contributions to deposit guarantee
funds (up 28.8%) in the various countries where the
Group operates. It included an extraordinary
contribution to the Federal Deposit Insurance
Corporation (FDIC) in the United States. The above
charges were not offset by income from insurance
activities, which rose 22.9% year-on-year to €720m.
As a result gross income in the quarter came to
€5,288m, the second highest amount in the Group’s
history. It was €730m more than the same quarter
in 2008 and €290m more than the previous quarter
of 2009. The total for the year was up 8.9% to
€20,666m (up 12.8% at constant exchange rates).
Operating income
During the entire year operating costs continued
their containment trend that started at the beginning
of 2008. They came to €8,358m, which was €97m
less than 2008, thanks to BBVA’s ability to
anticipate to the present crisis by implementing
several transformation plans as far back as 2006.
The Spain & Portugal Area made a particularly big
effort to contain its costs, which fell 4.2% during
the year. In the Americas operating costs were held
at the same levels as a year earlier (at constant
exchange rates) and were thus considerably lower
than inflation.
4Q09 GROUP INFORMATION
Earnings
11
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