South America highlights in the first quarter
- Business activity remains strong.
- Excellent price management.
- Improved asset quality.
- Positive performance by the pension and insurance businesses.
Industry Trends
In the first quarter of 2012, the economic growth in the region, already mentioned, boosted lending activity and deposits in South America, in line with the trend seen in 2011.
This growth was accompanied by new local regulations, mainly related to provisioning and capital requirements. The new regulations aim to implement international standards to support quality and competitive growth.
The evolution of exchange rates, both over the quarter and over the last 12 months, had a positive impact on activity, the balance sheet and earnings in the area. Unless indicated otherwise, all comments below on percentage changes refer to constant exchange rates, with the aim of providing a better understanding of the performance of the business in this area.
