BBVA in 2013


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Colombia’s macroeconomic performance continues to meet the expectations of market analysts and agents and is posting good results in indicators such as inflation, employment, the fiscal deficit and GDP growth. Private consumption is continuing to grow, accompanied by a significant boost in investment, mainly in the construction sector. To sum up, the macro environment has been positive in 2013, allowing the progress made in previous years to be consolidated.

The Colombian financial system performed very favorably over the year, with lending growing at 14.5% and deposits at 19%. The progress in lending has been fueled by the mortgage segment, which is up 15%, followed by corporate lending (up 13.1%) and consumer loans (up 12.6%). The increase in customer funds is due to the good performance of the more transactional items: savings accounts are up 23% and current accounts 17%.

2013 has been an excellent year for BBVA in Colombia, not only from the point of view of earnings and activity, but also in terms of awards and recognition. The favorable macroeconomic environment, the expansion plans carried out and the commercial boost from its network have led to significant growth in activity and earnings and thus gains in market share in terms of business volume. In retail banking, there have been initiatives with specific customers that have allowed a greater depth of products and a high degree of cross-selling.

Performing loans as of 31-Dec-2013 are up 21.1% compared with the close of 2012, with a very good performance from the portfolios of consumer finance, mortgages and commercial loans. This has led to a year-on-year gain in market share in the loan book of 53 basis points, according to the latest available figures as of November 2013. Loans to retail clients, and specifically consumer finance, in which BBVA closed 2013 as the second biggest lender in the country, have performed particularly well, with gains in market share of 45 and 91 basis points, respectively. There have also been significant gains in market share in the commercial segment (up 48 basis points).

The risk profile is also outstanding. BBVA Colombia is the best bank within its peer group in terms of the NPA ratio, which is 77 basis points below the sector average.

With respect to fund gathering, the balance of BBVA Colombia’s customer deposits posted a year-on-year increase of 14.7% as of 31-Dec-2013 and a rise in market share over this period of 84 basis points. In transactional items there was a rise of 94 basis points and in time deposits of 54 basis points (also with data as of November 2013).

The bank in Colombia closed 2013 with solvency levels that have absorbed the greater capital requirements imposed by the regulator through changes to the law.

These factors have had a favorable impact on the franchise’s earnings, which in 2013 generated €296m of net attributable profit, a year-on-year rise of 7.8%. Net interest income has increased significantly, thanks to the boost from activity and maintenance of customer spreads, increased spending due to expansion plans underway and improved loan-loss provisions, strongly influenced by the good performance of activity.

The main highlights in 2013 have been the issuance of bonds in the first quarter, the awards and recognitions received, the significant number of new products and services launched on the market and the social responsibility initiatives designed by the unit:

  • A successful placement of subordinate bonds on the international markets for COP 365 billion at 10 and 15 years. The issue was oversubscribed by two times and received an AAA rating from Fitch.
  • As regards awards and recognitions, the bank has for the third year in a row received the PCI Payment Card Industry Data Security Standard certification. This is a security standard required from organizations that process, transport or store card users’ data. BBVA Colombia is the only bank in the Colombian market with this recognition. Also for the third year in a row, it has received the Euromoney Cash Management award. In addition, it has been granted the “Emisor BVC Comprometido IR” (Colombian Stock Exchange ‘Issuer Committed to Investor Relations’) seal, which rewards issuers whose relations with investors are classified as excellent. Lastly, the bank’s customers have also recognized the bank’s management, as reflected in the IReNe index, which in 2013 increased to 60 (46 in 2012).
  • In new products and services, BBVA Colombia and BBVA Asset Management have launched the portal www.bbvaassetmanagement.co, a website that provides specialized information on a broad portfolio of products and services. It offers customers a very complete value offer, with profitable and sound solutions tailored to their needs.
  • In corporate responsibility, BBVA Colombia has subscribed to the National Reading Plan, which aims to provide seed libraries for more than 2,500 educational institutions across the country. It has also continued with the “Cuento Contigo” (I Count on You) program in partnership with the Ministry of Education, under which customers and the bank itself make contributions to buy books for children without resources.