WB&AM highlights in the fourth
quarter
• High quality revenues and excellent results.
• Positive trend in liquidity continues thanks to lending
restraint and stable customer funds.
• Global Markets’ business is increasingly international and
geographically diversified.
• CNBC is now classified as a substantial shareholding and
BBVA raised its interest to 15%.
• BBVA leads in bonds, syndicated loans, structured trade
finance and corporate finance by volume and/or number
of operations.
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 expansion in Asia.
By the end of 2009 the area’s gross income rose 12.8%
year-on-year. The increase was achieved despite lower
revenues from portfolio disposals (down €193m compared
to 2008). This was partially offset by income of €160m
from China Citic Bank (CNCB). Gross income was
supported by net interest income and net fee income, which
increased 53.9% and 24.7%, respectively. By units,
Corporate & Investment Banking lifted gross income
22.6% for the full year, helped by appropriate risk
management, an optimised product range and closer
relationships with customers. In the same period Global
Markets’ gross income rose 22.9% thanks to geographic
diversification, customer focus and to trading opportunities
(especially in interest rates). For its part Asset Management
4Q09 BUSINESS AREAS
Wholesale Banking & Asset Management
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.
took important strategic decisions such as the rollout of
hedge fund instruments. The 20.0% increase in traditional
investment products offset the costs associated with lack of
continuity in hedge funds and helped to consolidate the
unit’s leadership in the Spanish market.
Operating costs were contained throughout 2009, rising
more slowly year-on-year (up 8.2% compared to 10.8% in
2008). This together with the increase in revenues led to an
improvement in the cost/income ratio, which stands at
28.1% compared to 29.3% in 2008. The strength of
operating income, which rose 14.7% to €1,386m,
reflected improvements in both revenues and expenses.
In terms of loan-loss provisions WB&AM continues to
enjoy a high level of asset quality with a low
non-performing asset ratio (1.0%) and a coverage ratio of
31-12-09
Wholesale Banking
& Asset Management
Δ% 31-12-08
38,073 (22.4) 49,059
61,213 (1.4) 62,094
53,645 2.7 52,257
7,568 (23.1) 9,837
11,139 2.9 10,824
3,914 (2.5) 4,014
7,224 6.1 6,810
25.5 23.2
28.1 29.3
1.0 0.2
102 n.m.
37
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