This unit manages the business with large corporations and multinational groups in the domestic market through Corporate and Investment Banking (C&IB), and the activity of Global Markets in the same geographical area, with their trading floor and distribution business. It is a customer base with diversified business and high cash flows from other countries. BBVA is able to offer a full range of products and services, supported by its extensive international presence.
In Spain, at the close of the year Wholesale Banking managed a loan book of €23,339m and on-balance-sheet customer funds (not including repos) of €9,903m, a growth of 7.2% and 18.3% respectively on the close of the previous year. The unit continues to focus strongly on customers with the highest levels of loyalty, profitability and credit quality.
The most significant aspects of earnings are as follows:
- Resilient recurrent revenue in the unit (net interest income plus fees): the figure for the year as a whole is very similar to 2010, at €945m. Specifically, in WB&AM this revenue was up 3.3% in the last 12 months.
- The current economic situation, the low level of business and the fall in asset prices in general, explain the negative NTI for the year, although it is less negative than the figure for 2010.
- As a result, the gross income of €921m is 1.3% under the figure for the close of 2010. However, it is worth highlighting the favorable performance of gross income in the WB&AM unit, which was up 7.2% year-on-year, and the positive trend in customer revenue in Global Markets, particularly in those businesses that are strategic for the unit, such as credit.
- Year-on-year growth in operating expenses was 8.0%, explained by the investment project underway that has been mentioned in previous quarters; as a result, the operating income was down 7.2% year-on-year to €532m.
- Impairment losses on financial assets were stable, and net attributable profit at the close of 2011 came to €363m (€397m as of 31-Dec-2010).