34
BUSINESS AREAS 4Q09
Spain and Portugal
set to individual customers who take out a PIDE loan, a
car loan or a personal loan of more than €12,000. This,
together with the car loan web site
(www.financiatucocheconbbva.es), helped BBVA to
invoice €1,717m during 2009 in consumer finance
bringing the corresponding portfolio at 31-Dec-09 to
€7,166m (€8,950m at 31-Dec-08). Despite a number of
aggressive campaigns by other banks to capture savings
and current accounts, customer funds managed by the
unit rose 10.9% year-on-year to €31,043m. In the
fourth quarter the unit conducted a new savings
campaign entailing 247,000 gifts and gathered €770m
in new deposits. During the year the balance of time
deposits fell 16.0% to €29,760m. Nonetheless in the
fourth quarter three new products in this category
boosted fund gathering 24.1% quarter-on-quarter to
€7,720m. Lastly, the Group consolidated its leadership
in mutual funds and pension funds with managed assets
of €28,403m and €9,904m, respectively.
In 2009 BBVA Patrimonios increased assets under
management 11.6% to €10,855m and its customer base
rose 7.8% following various marketing campaigns. For
example, in the last quarter the unit introduced two
new services: BBVA Broker, related to insurance, and a
tool that helps customers optimize their asset structure
(Planific@). It also increased its product range with new
Quality Fund portfolios and marketing of Brunara
SICAV, helping customers to increase and diversify their
investments in equity funds. These moves complemented
others made earlier in the year (the PROA Plan, VISA
Infinite Card, portfolio guidance, annuities and “family
office” products).
In the small business segment (professional practices,
the self-employed, retailers, the farming community and
small companies) among other marketing initiatives the
unit extended the pre-approved line of loans to
€6,000m during the year. Other noteworthy items
included the placement of €574m in ICO credit lines, a
special plan for retailers and another for small
manufacturers. The latter plans were launched in the
fourth quarter. At 31-Dec-09 the unit managed loans of
€13,869m (€16,166m at 31-Dec-08).
Lastly, individual customers of BBVA also benefited
from a new range of cards with three particular
features: they are adapted to the customer’s payment
preference, easier to use and have greater security. The
new range has been simplified by dividing it into four
groups (Antes, Ahora, Después and A tu Ritmo).
Corporate & Business Banking
The corporate & business banking unit (CBB) handles
SMEs, large companies, institutions and developers with
specialised branch networks for each segment. It also
contains the product management unit that designs and
markets specific products for different market segments.
In 2009 it consolidated its profitable growth model by
putting various plans into action in the fourth quarter
(GAP de Riesgos, Garantía Real and Choque).
Although there appears to be less growth in the market,
the unit closed 2009 with a loan portfolio of €89,989m
and it maintained its leadership in the sector with a
35.2% market share. Customer funds came to
€25,970m (€31,292m in 2008).
The income statement shows operating income is
growing at 2.3% per year, reflecting an increase in net
interest income (up 4.7%), in fee income (up 0.3%) and
a reduction in costs (down 9.4%). As a result net
attributable profit rose 1.2% to €889m.
During the quarter the unit signed new ICO agreements
(government credit) and extended various existing lines.
Once again BBVA was one of the most active banks in
placement of these loans, signing €2,450m of which
€1,278m was related to liquidity and €614m to SMEs.
The unit has more than 60,000 customers in the SME
segment with a loan portfolio of €30,131m and
€7,301m in customer funds. Operating income for
2009 came to €851m and attributable profit was
€487m (€555m in 2008). It is making efforts to attract
new customers in order to consolidate its leadership,
increase customer loyalty and optimise its market share
of lending.
In the large company segment the loan portfolio at
year-end was up 4.7% year-on-year to €16,568m and
customer funds maintained the same balance than at
31-Dec-09 (€5,237m). Operating income also performed
well rising 14.6% year-on-year to €293m. After higher
provisions the attributable profit was €117m.
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