BBVA in 2012

Loans and advances to customers

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At the close of 2012, gross customer lending amounted to €367 billion, up 1.7% on the figure at the end of 2011. Apart from the buoyant activity in emerging geographical regions, the incorporation of the balances from Unnim and the positive exchange-rate effect have also had a positive impact on year-on-year growth. These effects outweigh the reduced activity in Spain and in the Group’s CIB portfolios.

Customer lending

(Million euros)

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31-12-12 Δ% 31-12-11 31-12-10
Domestic sector 190,817 (0.8) 192,442 198,634
Public sector 25,399 (0.4) 25,509 23,656
Other domestic sectors 165,417 (0.9) 166,933 174,978
Secured loans 105,664 6.5 99,175 105,002
Commercial loans 5,926 (10.5) 6,620 6,847
Financial leases 4,245 (14.3) 4,955 5,666
Other term loans 36,457 (12.9) 41,863 46,225
Credit card debtors 1,666 3.1 1,616 1,695
Other demand and miscellaneous debtors 2,857 (2.8) 2,939 2,222
Other financial assets 8,603 (11.9) 9,766 7,321
Non-domestic sector 156,312 2.0 153,222 134,258
Secured loans 61,811 1.9 60,655 45,509
Other loans 94,500 2.1 92,567 88,750
Non-performing loans 20,287 29.7 15,647 15,361
Domestic sector 15,159 37.3 11,042 10,953
Public sector 145 11.8 130 111
Other domestic sectors 15,014 37.6 10,913 10,841
Non-domestic sector 5,128 11.4 4,604 4,408
Customer lending (gross) 367,415 1.7 361,310 348,253
Loan-loss provisions (14,485) 53.9 (9,410) (9,396)
Customer lending (net) 352,930 0.3 351,900 338,857
19. BBVA Group. Customer lending (gross)

(Billion euros)

(1) At constant exchange rates: +1.0%.

The trends in lending seen in 2012 in the business areas are summed up below:

  • The deleveraging process taking place in Spain, and which has been more acute in the latter part of the year, has been partly offset by the incorporation of Unnim balances at the end of July 2012, and the setting up of the fund to finance payments to suppliers. Overall, gross customer lending in the area is down 1.5% over the previous 12 months.
  • Performance in Eurasia has been mixed: on the one hand, the wholesale segment in Europe and Asia, and, on the other hand, the retail portfolio, mainly focused on BBVA’s stake in Garanti. Lending activity in CIB declined by 29.9% over the year, due to the economic slowdown and its selective growth strategy focused on certain customers and portfolios. In contrast, gross lending to customers from Garanti is up 15.1% in the same period. At year-end, the loan book for the area had declined 13.0%.
  • Mexico has maintained the rate of growth, largely stemming from retail portfolios. Growth is particularly significant in consumer finance and cards and in small businesses. As a result, the area’s lending has shown a positive rise of 8.6% year-on-year (at constant exchange rate).
  • South America continues to post significant growth in all geographical areas and in practically all portfolios, although the excellent performance in the retail segment is also worth pointing out. Overall, lending rose 18.6% over the year (at constant exchange rates).
  • The United States has once again performed strongly, underpinned by the positive trend in new loan production reported by BBVA Compass in its target portfolios, i.e. in commercial loans and residential real estate. Therefore, and despite the continued slump in the construction real-estate sector, the loan book in BBVA Compass has grown 4.1% since the end of 2011 (also at constant exchange rates).

In short, a domestic sector undergoing steadily declining quarter after quarter, against a non-domestic sector benefiting from the good performance in emerging economies.

20 BBVA Group. Geographical breakdown of customer lending (gross)


Lastly, non-performing loans have shown an upward trend since the end of 2011, with a rise of 29.7% year-on-year. This trend is caused above all by the performance in the domestic sector, which is strongly impacted by the deterioration in the euro zone economy and, particularly, in Spain. Furthermore, since the end of July this heading has also included Unnim balances, although it is important to stress once again that they have a high coverage ratio, and part of them are guaranteed by an asset protection scheme (EPA). The year-on-year increase in NPA ratios in the non-domestic sector is mainly due to the exchange-rate effect and the classification, in the last quarter of 2012, of specific risks in Portugal as subjective non-performing loans.