The Group’s summarized consolidated balance sheets as of December 31, 2012 and 2011 are shown below.
The change in the balance sheet figures compared with December 2011 includes the incorporation of the Unnim balances and the withdrawal from the business in Puerto Rico.
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| ASSETS | Millions of Euros | ||
|---|---|---|---|
| 2012 | 2011 | % Change | |
| CASH AND BALANCES WITH CENTRAL BANKS | 37,434 | 30,939 | 21.0 |
| FINANCIAL ASSETS HELD FOR TRADING | 79,954 | 70,602 | 13.2 |
| OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 2,853 | 2,977 | (4.2) |
| AVAILABLE-FOR-SALE FINANCIAL ASSETS | 71,500 | 58,144 | 23.0 |
| LOANS AND RECEIVABLES | 383,410 | 381,076 | 0.6 |
| Loans and advances to credit institutions | 26,522 | 26,107 | 1.6 |
| Loans and advances to customers | 352,931 | 351,900 | 0.3 |
| Debt securities | 3,957 | 3,069 | 28.9 |
| HELD-TO-MATURITY INVESTMENTS | 10,162 | 10,955 | (7.2) |
| FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 226 | 146 | 54.8 |
| HEDGING DERIVATIVES | 4,894 | 4,552 | 7.5 |
| NON-CURRENT ASSETS HELD FOR SALE | 4,245 | 2,090 | 103.1 |
| INVESTMENTS IN ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 6,795 | 5,843 | 16.3 |
| INSURANCE CONTRACTS LINKED TO PENSIONS | 7 | - | n.s. |
| REINSURANCE ASSETS | 50 | 26 | 92.3 |
| TANGIBLE ASSETS | 7,785 | 7,330 | 6.2 |
| INTANGIBLE ASSETS | 8,912 | 8,677 | 2.7 |
| TAX ASSETS | 11,829 | 7,841 | 50.9 |
| OTHER ASSETS | 7,729 | 6,490 | 19.1 |
| TOTAL ASSETS | 637,785 | 597,688 | 6.7 |
As of December 31, 2012, the Group’s “Total Assets” stood at €637,785 million, an increase of 6.7% on the €597,688 million as of December 31, 2011. This increase is the effect of several divergent factors: on the one hand, the strong lending activity in South America and the positive effect of the appreciation of the currencies of the countries in America where the Group operates; on the other, the stagnation of the business in Spain as a result of the deleveraging process underway in the economy.
At the close of 2012, the balance under the heading “Loans and receivables” totaled €383,410 million, with an increase of 0.6% on the €381,076 million posted as of December 31, 2011.
Within this heading, the balance of "Loans and advances to credit institutions" is €26,522 million, a slight 1.6% increase on December 2011. The heading “Loans and advances to customers”, which as of December 31, 2012 stood at €352,931 million, has remained stable compared with the €351,900 million posted as of December 31, 2011, but with mixed performance depending on the geographical area, as mentioned earlier.
By business areas, the main trends are:
- 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% year-on-year.
- Performance in Eurasia has been mixed: negative in the wholesale segment in Europe and Asia, and positive in the retail portfolio, mainly focused on BBVA’s stake in Garanti. Lending activity in CIB fell by 29.9% over the year, due the economic decline, together with its strategy of selective growth focused on certain clients 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 contracted 13.0% year-on-year.
- Mexico has maintained a good rate of growth, largely stemming from retail portfolios. Growth is particularly significant in consumer finance and credit cards and in small businesses. This has resulted in positive growth of the loan book in the area of 8.6% (at constant exchange rates).
- South America has continued 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 here. In total, the loan book increased by 18.6% over the year (constant exchange rates).
- The United States has performed strongly, underpinned by the positive trend in turnover reported by BBVA Compass in its target portfolios, i.e. in commercial and industrial loans and mortgages in the residential real estate segment. As a result, 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, the resident sector experienced steadily dwindling growth, against a non-resident sector benefiting from the positive performance in emerging economies.
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| LIABILITIES AND EQUITY | Millions of Euros | ||
|---|---|---|---|
| 2012 | 2011 | % Change | |
| LIABILITIES |
|
|
|
| FINANCIAL LIABILITIES HELD FOR TRADING | 55,927 | 51,303 | 9.0 |
| OTHER FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 2,516 | 1,825 | 37.9 |
| FINANCIAL LIABILITIES AT AMORTIZED COST | 506,487 | 479,904 | 5.5 |
| Deposits from central banks | 46,790 | 33,147 | 41.2 |
| Deposits from credit institutions | 59,722 | 59,356 | 0.6 |
| Customer deposits | 292,716 | 282,173 | 3.7 |
| Debt certificates | 87,212 | 81,930 | 6.4 |
| Subordinated liabilities | 11,831 | 15,419 | (23.3) |
| Other financial liabilities | 8,216 | 7,879 | 4.3 |
| FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | - | - | n.s. |
| HEDGING DERIVATIVES | 2,968 | 2,710 | 9.5 |
| LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | 387 | - | n.s. |
| LIABILITIES UNDER INSURANCE CONTRACTS | 9,032 | 7,737 | 16.7 |
| PROVISIONS | 7,927 | 7,561 | 4.8 |
| TAX LIABILITIES | 4,077 | 2,330 | 75.0 |
| OTHER LIABILITIES | 4,662 | 4,260 | 9.4 |
| TOTAL LIABILITIES | 593,982 | 557,630 | 6.5 |
| EQUITY | - | - | n.s. |
| STOCKHOLDERS’ FUNDS | 43,614 | 40,952 | 6.5 |
| VALUATION ADJUSTMENTS | (2,184) | (2,787) | (21.6) |
| NON-CONTROLLING INTEREST | 2,372 | 1,893 | 25.3 |
| TOTAL EQUITY | 43,802 | 40,058 | 9.3 |
| TOTAL LIABILITIES AND EQUITY | 637,785 | 597,688 | 6.7 |
| Memorandum items: |
|
|
|
| Customer funds on balance sheet | 391,759 | 379,522 | 3.2 |
| Customer deposits | 292,716 | 282,173 | 3.7 |
| Debt certificates | 87,212 | 81,930 | 6.4 |
| Subordinated liabilities | 11,831 | 15,419 | (23.3) |
| Other customer funds | 159,285 | 144,291 | 10.4 |
| Mutual funds | 41,371 | 39,294 | 5.3 |
| Pension funds | 89,776 | 78,648 | 14.1 |
| Customer portfolios | 28,138 | 26,349 | 6.8 |
| TOTAL CUSTOMER FUNDS | 551,044 | 523,813 | 5.2 |
As of December 31, 2012, the balance under the heading “Financial liabilities at amortized cost” totaled €506,487 million, with an increase of 5.5% on the €479,904 million posted as of December 31, 2011.
“Customer deposits”, which accounts for 57.8% of this heading, stood at €292,716 million at the close of 2012. This 3.7% increase on the €282,173 posted as of December 31, 2011 has been fueled by the strong performance of the typical headings of the retail segment, i.e. checking and savings accounts and time deposits in both the resident and non-resident sectors. Despite the difficult economic environment, the BBVA Group continues to demonstrate its great capacity to gather new funds thanks to the high capillarity of its commercial network.
“Off-balance sheet customer funds”, totaled €159,285 million as of December 31, 2012 and are up 10.4% over the year. By type of product, pension funds performed particularly well, increasing by 14.1% in the same period. In Spain, BBVA still holds the top spot in terms of assets under management, in both pension and mutual funds. In pension funds, its market share stands at 19.1%, according to the latest information available as of September 2012. Its market share in mutual funds stands at 17.5%, according to November data, i.e. 48 basis points above the figure for the same date in 2011. In the non-resident sector, there continue to be overall increases in assets under management in mutual funds and customer portfolios.
“Debt certificates” increased in 2012 due to new issues and promissory notes placed on the retail network.