net income at €365m (up 13.2%) and the cost-income
ratio at 37.2% (against 40.4% in 2008).
In Peru, BBVA Banco Continental contributed an
attributable profit of €112m in 2009 (up 27.0%),
against a backdrop of sharply falling interest rates.
However, net interest income continued to rise fast (up
23.0% year on year) despite slower lending growth,
reflecting successful management of spreads. The rest of
the items on the revenue side also performed well. With
moderation in expenses, operating profit, at €412m,
rose 19.8% year on year. The cost-income ratio also
improved to 29.5% from 31.6% the previous year.
In 2009, BBVA Banco Provincial in Venezuela generated
an attributable profit of €265m (up 22.6%). The key to
this was its successful management of lending and
borrowing rates which, together with the positive rise in
business volumes (lending up 17.6% and customer
funds up 19.7%) increased net interest income by
24.8% over the year. Significant cost control produced a
19.0% growth in expenses, comfortably below the
country’s inflation rate. This triggered and adecuate
cost-income ratio (39.8%) and a 10.9% rise in
operating profit, which reached €632m.
In the other banks, 2009 profit in BBVA Panama
reached €29m (up 1.5% year on year); BBVA Paraguay
also earned €29m (up 27.4%) and BBVA Uruguay €5m
(down 40.9%).
South America. Data per country (banking business, pensions and insurance)
(Million euros)
Country
Argentina
Chile
Colombia
Peru
Venezuela
Other countries (1)
TOTAL
2009
Operating income
Δ% Δ% at constant
exchange rates 2008
(1) Panama, Paraguay, Uruguay, Bolivia and Ecuador. Additionally, it includes eliminations and other charges.
Pensions and Insurance
In 2009, the Pensions & Insurance unit contributed an
attributable profit of €135m, more than doubling its
2008 figure. Of this, €88m were generated by the
pension-fund business and €46m by the insurance
business. Business volumes performed well in all the
companies, despite the negative impact of the crisis on
the region’s employment figures.
In Chile, AFP Provida generated an attributable profit
of €61m in 2009 (compared with €7m in 2008). The
volume of assets placed under its management grew
10.0% over the year, as trading income rose and cost
increases were kept in check (up 5.3%). Operating
profit thus went up to €124m, significantly
outperforming the €12m earned in 2008.
The Consolidar Group in Argentina delivered good sales
performance in the three companies and showed good
cost containment despite the impact of the corporate
restructuring carried out during the year.
Amongst the rest of the companies, AFP Horizonte in
Colombia generated €18m in attributable profit and
AFP Horizonte in Peru €14m, in a context marked by
dynamic business activity and favourable trading
income.
287 3.1 15.3 278 130 (23.5) (14.5) 169
350 84.3 87.9 190 143 79.2 82.7 80
407 12.3 16.9 362 162 13.8 18.6 143
441 28.8 25.9 342 126 43.1 39.8 88
664 18.7 12.6 559 277 30.6 23.9 212
54 38.7 41.1 39 32 (6.5) (4.6) 34
2,202 24.4 25.1 1,770 871 19.8 21.8 727
2009
Net attributable profit
4Q09 BUSINESS AREAS
South America
Δ% Δ% at constant
exchange rates 2008
51
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