38
BUSINESS AREAS 4Q09
Wholesale Banking & Asset Management
102%. In spite of the complex 2009, net transfers to
provisions were just €7m (€258m in 2008). This was a
consequence of the decline in lending and a focus on
customers of high credit quality.
Thanks to the increase in recurrent revenues, to cost controls
and to lower write-offs and provisioning, WB&AM’s net
attributable profit in 2009 (counting only Europe, New
York and Asia) came to €1,011m (up 30.9% on 2008).
In terms of business activity the area’s gross lending fell
22.4% year-on-year to €38,073m at 31-Dec-09, which is
mainly held by Corporate & Investment Banking.
Nonetheless customer funds (deposits, mutual funds and
pension funds) performed favourably, rising 2.7% to
€64,784m thanks to a considerable increase in deposits. The
combined effect of the decline in lending and the rise in fund
gathering helped to improve the area’s liquidity profile.
The business and earnings of WB&AM units in Latin
America are recorded in their respective areas (Mexico and
South America). If they are added to the above results
(excluding asset management in South America), the area’s
combined contributions to the Group are those shown in
the table below:
Wholesale Banking & Asset
Management including the Americas
(Million euros)
Gross income
Operating income
Income before tax
Net attributable profit
Customer lending (gross)
Deposits
Corporate and Investment Banking
This unit co-ordinates origination, distribution and
management of a complete catalogue of corporate &
investment banking products (corporate finance, structured
finance, structured trade finance, equity and debt capital
markets), global trade finance and global transaction
services. Coverage of large corporate customers is
specialised by sector (industry bankers).
During the year the unit’s activity was characterised by the
containment of credit risk, by the creation of stable
31-12-09
Δ% 31-12-08
3,062 18.2 2,590
2,327 22.4 1,902
2,214 39.1 1,592
1,486 33.6 1,112
47,700 (20.4) 59,950
64,559 4.4 61,848
relationships with customers with high business potential,
by repricing of assets and liabilities and by an increase in
transactional business. Net interest income rose 13.6%
year-on-year and as a percentage of average total assets it
was 1.32% at the end of 2009 (0.97% a year earlier).
As a result gross income grew 22.6% to €976m, reflecting
the performance of recurrent revenues (net interest income
and net fee income). Operating costs rose 1.8% and
therefore operating income increased 28.3% year-on-year
to €802m. Net attributable profit came to €553m, an
increase of 56.5% compared to €353m in 2008.
Fixed-income business ended the year in a flurry of activity
with more than 30 operations closed in the fourth quarter.
These included private placement of a $600m issue for
Grifols and a €3,000m five-year issue for Spain’s Orderly
Bank Restructuring Fund (BBVA was the only Spanish
bank participating in this issue) and private placements for
the public sector. During the year BBVA consolidated its
leadership position in Spain by volume of number of
operations (Source: Dealogic).
Syndicated loans in the fourth quarter included Gamesa
(€1,200m), Aena, Ferrovial, Persán, Kerabén and Acciona
Eólica. BBVA was also mandated in a €1,000m loan for
Telecom Italia. The unit closed a great year placing itself as
leader in Spain by volume and number of operations
(Source: Dealogic).
In structured finance 2009 was a particularly busy year.
The bank ranked second in Spain and Europe by volume
and number of operations. BBVA was elected Bank Of The
Year (2009) by Project Finance (a specialized magazine)
and obtained a number of the Deals Of The Year awards
for operations such as the Boreas Project in Britain (the
bank’s first offshore project).
The Structured Trade Finance unit set up a team in Frankfurt
to develop and market products in Germany as well as in
central and northern Europe. According to Dealogic, BBVA
ended the year in pole position by number of operations.
In Equity Capital Markets BBVA participated in the main
share capital increases in Europe including National
Express, Lloyds and ING.
For the first time the Corporate Finance unit ended the
year as leader in the M&A market in Spain by volume of
operations announced. (Source: Thomson Reuters).
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