BBVA in 2012


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The credit deleveraging process in Spain brought about by the current economic situation continued in 2012. However, from the point of view of liabilities, there is a new favorable trend in on-balance-sheet customer deposits, with BBVA steadily gaining 70 basis points in market share in total customer funds last year, according to the data available as of December 2012. Therefore, the commercial gap and liquidity position of the area continue to improve.

Gross lending to customers as of 31-Dec-2012 amounted to €210,982m, down 1.5% over the last 12 months.

As of December 31, 2012 BBVA managed a volume of €170,330m in customer funds, including customer deposits, promissory notes and off-balance-sheet funds, up 11.2% year-on-year. On-balance-sheet deposits and promissory notes account for €129,640m of this amount, having risen 18.5% over the last twelve months. This increase confirms the excellent management of deposit gathering and the renewals carried out by the commercial network.

8 Spain. Key activity data

(Million euros)

(1) Excluding assets sold under repurchase agreements and including promissory notes.

These results in lending and customer funds have cut the loan-to-deposits ratio (*) in the domestic sector from 148% (data as of December 2011) to 135% at the close of 2012. Including mortgage-covered bonds, the ratio stands at 104%.

Off-balance-sheet funds managed by BBVA in Spain amounted to €51,915m, up 3.0% on 2011. Of this figure, €19,116m correspond to mutual funds, with a decrease of 2.5% over the year, due basically to the turmoil on the markets during this period. The rest are distributed among other off-balance-sheet funds and pension funds, which as of 31-Dec-2012 amounted to €18,313m, a rise of 6.3% since the end of December 2011, thanks to the positive management of renewals and new accounts gathered, very much supported by the new range of products developed by BBVA. Specifically, in the fourth quarter of 2012, the Group launched six new products that complete the range of pension plans and Basque social insurance entities available for its customers. The Bank also offers bonuses for contributions or transfers from other banks.

This has enabled BBVA to maintain its position as the number one manager in both mutual and pension funds in Spain, with market shares of 17.4% in mutual funds (according to the latest information available as of December) and 19.9% in pensions (according to data published by Inverco in December).

With respect to asset quality, the slight upward movement in the NPA ratio has continued, due to the difficult macroeconomic situation and the reduced volumes of lending activity. Despite this, the ratio is still far below that reported in the sector overall, and closed December at 6.9%, including the Unnim figures. The significant provisions made explain the improvement in the coverage ratio, which increased from 44% as of 31-Dec-2011 to 67% at year-end.

9 Spain. NPA and coverage ratios


(*) The ratio does not include securitizations or repos, but includes promissory notes distributed through the retail network.