32
BUSINESS AREAS 4Q09
Spain and Portugal
Spain and Portugal highlights in the
fourth quarter
• Recurrent revenues were stable during the quarter.
• New year-on-year improvement in efficiency.
• Market share gains in household mortgages, public
sector finance and pension funds during the year.
• Anticipation in risk management.
The Spain & Portugal Area provides a distinctly
different and innovative approach to banking through
specialised branch networks where the customer is the
prime focus of business. It handles the financial and
non-financial needs of individual customers (Spanish
Retail Network), including the upper-middle market
segment (BBVA Patrimonios). SMEs, large companies,
and public and private institutions are managed by the
Corporate & Business Banking Unit (CBB). Other
specialised units handle consumer finance and internet
banking (the Consumer Finance Unit), the
bancassurance business (BBVA Seguros) and BBVA
Portugal.
In the fourth quarter of 2009 the market continued to
unwind in terms of the new lending although the pace
was slacker. Lending to companies and consumer
finance slowed faster than first residence mortgages.
Furthermore in recent months increases in Spain’s
savings rate have boosted demand for deposits,
especially for the low cost types, bonds and mutual
funds, to the detriment of time deposits.
In 2009 BBVA led the way in support for families and
small businesses by launching various loan and savings
Relevant business indicators
(Million euros and percentages)
Customer lending (gross)
Customer deposits (1)
Off-balance-sheet funds
•Mutual funds
•Pension funds
Other placements
Customer portfolios
ROE (%)
Efficiency ratio (%)
NPA ratio (%)
Coverage ratio (%)
(1) Including collection accounts and individual annuities.
campaigns adapted to these customers’ needs. These
initiatives were made possible by the Group’s financial
strength, ample liquidity and superior risk management.
At 31-Dec-09 gross lending to customers stood at
€204,351m, a slight decline compared to €206,896m a
year earlier, reflecting the smaller percentage of loans in
those sectors and products of greater risk. Customer
funds under management (deposits, mutual and pension
funds plus the distribution of BBVA bonds) fell 4.6% to
€141,316m year-on-year. The main reason behind the
decrease was the lower demand for time deposits, which
are now less attractive owing to interest rates at record
lows. The balance of time deposits at 31-Dec-09 came
to €32,005m after fund gathering raised €7,720m in
the year (€1,526m in the third quarter). However
current and savings accounts rose 5.5% to €42,172m,
31-12-09
Δ%
204,351 (1.2) 206,896
92,936 (8.3) 101,299
40,171 (1.7) 40,873
29,842 (4.6) 31,270
10,329 7.6 9,603
,
8,278 35.8 6,097
13,074 22.8 10,650
32.2 35.4
35.6 36.8
5.1 2.6
48 67
31-12-08
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