Corporate & Investment Banking

From the activity point of view, the Banking and Corporate Finance (B&CF) unit within C&IB managed lending of €12,790m in Spain at the close of the quarter, 1.5% down on the figure 12 months earlier, and on-balance-sheet customer funds of €9,096m, up 35.4% on the same period in 2011. This unit continues to be highly focused on customers with greatest loyalty, profitability and credit quality.

The most significant aspects of earnings are as follows:

  • A positive trend in recurring revenue in the unit (net interest income plus fee income). In the first quarter of 2012 the figure was €241m, 10.0% above that for the same period in 2011.
  • The current economic situation, low level of business and fall in asset prices in general, together explain the reduced NTI for the quarter, which compare with exceptional figures for the first three months of 2011, although they are a clear improvement on the figure for the last quarter of 2011.
  • As a result, the gross income of €265m is 23.6% down on the excellent first quarter of 2011. In the B&CF unit, gross income grew by 6.0% year-on-year.
  • A slowdown in the year-on-year growth in operating expenses (up 6.0%) compared to previous quarters. As a result, operating income was 33.3% down on the same period in 2011 to €174m.
  • Accumulated net attributable income in the first quarter of 2012 was €91m (€185m in the first quarter of 2011, but €30m in the fourth quarter of the same year).

The most significant transactions and highlights for the period are detailed in the C&IB section at the end of this report.