BBVA in 2013


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Chile’s macroeconomic data have also been positive in 2013. The good levels of activity in the country have led to year-on-year growth in GDP in 2013 of 4.2%, in an environment of reduction of the unemployment rate to 5.8% and inflation controlled at 3.0%, within the lower range of the target band established by the Central Bank of Chile. However, in the last quarter of 2013, signs of a slowdown began to appear. Combined with a reduction in inflation expectations, this has led the Central Bank to adjust its level of monetary policy rate down by 50 basis points to 4.5%.

In this context, Chile’s financial system has performed well, in terms of both activity and earnings. Lending has grown over the last year by 10.9% (according to the latest available data as of November 2013) thanks to the strength of mortgage loans, consumer finance and commercial loans. Net income in the sector, according to figures as of November 2013, increased by 7% over the last 12 months, strongly leveraged on higher revenue. The more contained increase in expenses compared with revenue has led to a slight improvement in the efficiency levels of the system (48% compared with 49% in 2012).

BBVA in Chile maintains its firm commitment. Its strategic plan has focused on selective growth, specifically in the retail segments. Major investment has already been undertaken to extend the branch network. It is worth noting that the market share of BBVA Chile in loans to private individuals has increased by 12 basis points over the last 12 months to 10.1%. A significant item on the liabilities side in 2013 is undoubtedly the increase in fund gathering activities in demand deposits, whose balance in year-on-year terms rose by 17.2%, with a gain in market share of 36 basis points over the year (according to information as of November 2013).

The year has also been very positive for Forum in terms of activity, as the automobile market has been strong (sales of new cars increased by 11.6% over the year, according to information as of January 2014). Forum has increased its market penetration from 13.5% of the total of new cars sold in Chile to 14.0% (latest figures as of December 2013), leading the loan book stock to increase by 12.1% over the same period.

As regards the earnings of BBVA in Chile, the year has ended with a generation of a net attributable profit of €119m, strongly supported by the good performance of recurring revenue (net interest income plus income from fees and commissions increased by a year-on-year 12.1%) and NTI (up 172.8%), despite the impact of the low inflation rate on the performance of index-linked assets.

The following are the main initiatives carried out in 2013 by BBVA in Chile::

  • The opening of the first flagship branch under a model that aims to improve customer experience significantly. It includes interactive elements and major technological features such as biometric ATMs.
  • In mobile banking, BBVA Chile has grown significantly. It is one of the channels that has progressed most in 2013, and thus gained a significant advantage over the competition.
  • The launch of credit cards with smart chips, which has positioned the bank at the cutting edge in customer-service technology.

BBVA in Chile is strongly committed to education as part of its responsible business. The bank is supporting comprehensive education for students from the University of the Andes through a donation that aims to promote the interests and abilities of students beyond the academic field through cultural, artistic and sporting activities, innovation, entrepreneurship, volunteer work and social responsibility. It is also collaborating on the financial literacy of children aged 7 to 15 through the online “AgentPiggy” platform. In the last quarter, BBVA Chile has set up the “Educación Financiera para Jóvenes” (“Financial Literacy for Young People”) program to help children and young people take informed financial decisions. The Chilean government has honored the Group’s company Forum with the “Más por Chile” (More for Chile) seal for its “Niños Adelante” (Forward, Children) program, recognizing its contribution to the self-improvement and social integration of the most vulnerable individuals in the country.