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Loans and advances to customers

As of 30-Sep-2011 gross customer lending amounted to €353 billion, practically the same figure as the previous quarter (down 0.8%). This is partly due to the negative impact of exchange rates and also the deleveraging process underway in Spain. Over the last 12 months the figure has increased by 2.8%.

By business areas, Mexico is growing at 8.0% at constant exchange rates (excluding the old mortgage portfolio), mainly due to the increase in consumer finance and credit cards (up 23.4% year-on-year). In South America all items and countries in the region continued with strong overall growth (up 30.7% at constant exchange rates). In the United States, the target lower-risk portfolios such as corporate lending and residential real estate have more than offset the fall in loans to the developer sector. This indicates that the shift in the mix towards a more sustainable balance sheet is being completed. In Eurasia the loan book grew by 45.4% year-on-year, due partly to the incorporation of the Turkish bank Garanti and its positive performance in lending, and also to the slight rise in Corporate and Investment Banking (up 3.0% in the quarter). Finally, in Spain (and in line with the rest of the system) there was a fall of 2.4% compared with September last year, due to the deleveraging process mentioned above.

Customer lending
(Million euros)






30-09-11 ∆% 30-09-10 30-06-11 31-12-10
Domestic sector 191,330 (4.3) 199,991 201,053 198,634
Public sector 26,096 8.8 23,986 25,966 23,656
Other domestic sectors 165,234 (6.1) 176,005 175,087 174,978
Secured loans 101,552 (4.0) 105,736 101,898 105,002
Commercial loans 5,918 (3.1) 6,107 6,102 6,847
Financial leases 5,151 (11.8) 5,839 5,338 5,666
Other term loans 42,043 (10.3) 46,896 44,309 46,225
Credit card debtors 1,542 21.0 1,275 1,579 1,695
Other demand and miscellaneous debtors 2,713 9.3 2,482 3,783 2,222
Other financial assets 6,314 (17.7) 7,671 12,077 7,321
Non-domestic sector 145,614 13.9 127,875 138,957 134,258
Secured loans 58,202 27.2 45,742 57,430 45,509
Other loans 87,413 6.4 82,133 81,528 88,750
Non-performing loans 15,689 3.1 15,218 15,515 15,361
Domestic sector 11,156 2.4 10,894 11,112 10,953
Public sector 133 38.8 96 132 111
Other domestic sectors 11,024 2.1 10,798 10,980 10,841
Non-domestic sector 4,533 4.8 4,324 4,403 4,408
Customer lending (gross) 352,633 2.8 343,084 355,526 348,253
Loan-loss provisions (9,217) (1.3) (9,343) (9,304) (9,396)
Customer lending (net) 343,416 2.9 333,741 346,222 338,857

Customer lending (gross)

(Billion euros)

Within the domestic sector, the general tone is weakness in new production, above all in those items that are most closely related to corporateand business activity (corporate lending, financial leasing and other term loans). Secured loans, which are those with the biggest relative weight and lowest associated risk, showed a notable stability compared with the close of 30-Jun-2011, at a total of €102 billion as of 30-Sep-2011.

In the non-domestic sector, the annual increase of 13.9% is due to the strength of business activity, particularly in South America, and the addition of Garanti. The effect of exchange rates was negative.

Finally, NPA have remained stable since December 2009.


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