BBVA in 2013


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The latest official economic data for Venezuela show a slowdown in growth due to a contraction in domestic demand resulting from lower investment. This has been accompanied by an upturn in inflation as a result of rising food and beverages prices.

In foreign exchange policy, the authorities devalued the Venezuelan bolivar in February from 4.3 to the US dollar to 6.3. The complementary mechanism of SITME currency deliveries was also replaced by another, the SICAD, which began to operate fully in October.

In this context, the loan book in the banking sector has grown significantly by 62%, supported by credit cards and commercial, which are up 79% and 68%, respectively, according to data available as of November 2013. Customer funds, as a result of the high level of liquidity in the system, have increased at higher rates than loans (up 67%), thanks to the excellent performance of current and savings accounts.

In this economic scenario, BBVA in Venezuela has performed well, in terms of both activity and in earnings, and maintained profitable and sustained growth as its core value. This has been achieved with a management model aimed at providing an extensive range of commercial products and services, tailored to the financial needs of its customers, which position the bank as a benchmark in technology.

Performing loans as of 31-Dec-2013 posted an increase of 64.5% on the figure for the close of 2012. By portfolios, there was an increase in credit cards (up 77.4% and 78 basis points from November 2012 to November 2013) and commercial loans, which increased almost tenfold on the figure for the close of 2012, with a gain in market share of 49 basis points. Customer funds increased by 76.3% thanks to the strength of the more transactional items (current and savings accounts), which increased by 90.6% and posted a gain in market share of 2 basis points over the last 12 months.

These figures for activity have been reflected in the positive performance of recurring revenue. Net interest income plus income from fees and commissions have increased 75.9% over the last 12 months and offset the increase in expenses and loan-loss provisions. As a result, the net attributable profit for 2013 is €369m, up 63.1% on the figure the previous year.

The main highlights for 2013 are given below. Most of them are closely related to the development of new technologies and alternative channels to branches. As a result, the bank has been named “Best Internet Bank” in 2013 by Global Finance. The bank has consolidated its use of multi-channel banking and is now one of the most innovative in the country, attracting an average of 5,000 new customers every month via the Internet. The most relevant highlights are described below:

  • Development of a set of initiatives that have allowed multi-channel management through a single tool called “Gestor de Campañas” (Campaign Manager). This tool has been the basis of the “Motor de Gestión” (Management Engine), which uses previously established business criteria to prioritize, select, distribute and control traffic between channels, thus guaranteeing a more efficient customer service through the most convenient channel with the most appropriate products according to customer needs.
  • A boost to the call-center management channel, aimed at encouraging cross-selling of lending products, such as credit cards, consumer, and payroll loans, thus guaranteeing greater customer loyalty and a reduction of branch-based operations.
  • Use of the promotions mailbox in Provinet (web portal) to boost the bank’s commercial growth. It informs customers of personalized products and services, pre-approved loans and commercial campaigns. A new version of Provinet Empresas for companies has also been launched, with new functionalities.
  • In mobile banking services, the technological platform of Provinet Móvil has been extended to the iPad, thus providing the possibility of accessing a broad range of online functions: balance inquiries, transfers between own and third-party accounts and payment of services, among others.
  • Opening of new agencies and incorporation of “express zones”. This offers more spaces provided with cutting-edge technological equipment to provide customers with the possibility of making more self-service transactions in a shorter time, with the level of security that characterizes BBVA Provincial.
  • Increase in the number of ATMs, most of them multi-functional, meaning they provide customers with the means to make their banking transactions easily without the need to go to the branch. This makes BBVA Provincial a pioneer and leader in this area, with a market share of 17.5% in ATMs as of December 2013 and a volume of over 18 million monthly transactions.
  • A number of campaigns have been launched as part of the marketing strategy that links the bank with sports. They offer customers the possibility of attending and enjoying the most important sporting events in the world.

In addition, BBVA Provincial has celebrated the 60th anniversary of its foundation with major recognitions that confirm its leading position in the Venezuelan financial system. The international publication Global Finance has for the seventh year named it “Best Bank in Venezuela in 2013” as part of the awards to the “Best Emerging Market Banks in Latin America”. The bank has also received for the seventh year in a row the “Best Bank in Venezuela” award from Euromoney at the 2013 Excellence Awards, among the most important in the global financial industry. Exceptionally, it has also received for the second time the “Great Place to Work 2013®” award, ranking second out of 18 companies providing the best place to work in Venezuela, and first among financial institutions in the country.

Lastly, in social responsibility, as in the rest of the area, the bank has reinforced its commitment to financial literacy. Through its Foundation, it has launched the “Adelante con tu Futuro” (Forward With Your Future) portal, which offers public access to information of interest and news related to basic financial knowledge.