Retail and Commercial Banking

Retail banking managed a loan-book of €95,872m and customer deposits, including promissory notes, of €75,573m at the close of March 2012. The highlights for the quarter are detailed below:

  • BBVA maintained its market share in residential mortgage lending, in a market where new production fell significantly. BBVA’s new production was over 14% of the total in the sector, thanks to personalized and differentiated mortgage products that respond quickly and flexibly to demand. This new production came together with a spread increase of 26 basis points over the quarter.
  • In terms of consumer finance, accumulated new production as of 31-Mar-2012 stood at €270m, maintaining the share of stock at 10.7%.
  • Stable customer funds grew by €857m in the Retail Banking unit. Time deposits increased by €249m, with redemptions of over €6,000m, managed with significant success (retention rates of over 80%). The volume deposited in promissory notes increased by €716m over the quarter. In transactional accounts, the products on offer to attract payroll and pension deposits, as well as the Sin Comisiones en Cuenta y Tarjeta Gratis (No account fees and your card free) campaign, helped increase market share in payroll accounts by 39 basis points on the same month in 2011 and 38 basis points in pension accounts, to 9.3% and 10.0%, respectively (February data).
  • Assets under management in mutual funds increased over the quarter by €181m, helped by the price effect. With redemptions of guaranteed funds at €890m, the balances which were maintained in the funds were approximately 80%.
  • As for pension plans, the first quarter of 2012 ended (data as of March 27) with accumulated new production of €128.5m, an annual average increase of 30%.
  • Insurance savings plans also achieved a notable level of new production, with growth rates of around 60% on the same quarter in 2011, and accumulated new production (data as of March 27) of €256m.
  • In means of payment, the strategy of increasing customer loyalty through credit cards increased the activity rate of BBVA cards, from 36.4% in 2011 to 37.5% at the close of March 2012.

CBB manages lending of €87,389m and customer deposits including promissory notes totaling €19,787m. The support to Spanish companies continues to be a priority in 2012. The highlights of this unit in the quarter are given below:

  • BBVA has supported companies in this period mainly through two vehicles: through ICO lines, as well as collaboration with the Official Credit Institute (ICO) in the dissemination and development of ICO Directo, and with the European Investment Bank (EIB), through a new Sector Público (public sector) line. This year, once again, BBVA has positioned itself as one of the most active banks in the distribution of the different ICO lines, with a market share of 13.1%, according to the latest available data in March.
  • Over the quarter CBB performed similarly to the previous year, thanks to positive price management and an increase in spreads on financing transactions. This has led to higher profitability, adjusted to the risk assumed.

Insurance maintained its positive trend, with written premiums for the quarter totaling €645m. This has been helped by the start of a campaign that improves the offer of Seguros Remunerados (remunerated insurance), with the aim of attracting new customers and rewarding the loyalty of existing ones. There was also the launch of a range of Miniseguros. These give customers the opportunity to be insured for only one euro per week, and in this way the customer base is extended.

The Premium Segment is organized into three customer levels: value customers, high-value added customers (over €300,000 in funds) and high-net-worth customers (over €2m). The first quarter was very positive, bearing in mind the current economic situation. There was a year-on-year increase of 1.9% in customer funds and 0.8% in customers (the latter figure as of 28-Feb-2012).

BBVA was named “Best Private Bank of 2011” by the prestigious financial magazine Inversión. This award is based on votes from the magazine readers. BBVA Patrimonios, SGIIC (Sociedad Gestora de Instituciones de Inversión Colectiva) continues in top position in the ranking of investment company managers, with assets under management of €2,878m in 293 SICAVs and over 42,000 shareholders.