At the close of June 2012, the loan book in Mexico amounted to €38,252m, a year-on-year growth of 12.6%, and 3.3% over the quarter.
Retail lending was particularly strong and was the main driving force behind the overall rise in lending in Mexico. BBVA Bancomer ended June with a growth of 13.0% in retail lending to €19,968m. By type of loan, loans to small businesses maintained their positive performance and were up 27.4% year-on-year.
Consumer lending (including credit cards) was also very favorable, with a rise of 20.1%, mainly boosted by the positive new production in credit cards. Residential mortgages were up 4.3% and in the first half of this year new production has increased by 12.0% over the first half of 2011. The above explains why BBVA Bancomer continues to grant one out of every three mortgages in the private market.
Within the wholesale banking segment, which amounted to €15,486m as of 30-Jun-2012, SME and public-sector loans performed particularly well, with a rise of 23.1% on the figure for the same date in 2011. Lending to corporates also improved its trend to a year-on-year growth of 13.3%. As a result, wholesale lending grew by 11.7% in the same period, and thus offset the drop in the construction real estate portfolio. BBVA Bancomer continues to support its global customers through the placement of bonds on the capital markets. In the second quarter of 2012, it placed a total of €1,377m, giving it the leading position with a market share of 25%, according to the latest data released in June by the Mexican Stock Exchange.
In short, BBVA Bancomer continues to gain weight in the most profitable asset products. Consumer finance and credit cards account for 26.0% of all the bank’s lending; business and the public sector, 48.7%; and residential mortgages, 25.3%.
Customer funds (on-balance sheet deposits, repos, mutual funds and investment companies) closed the half-year at €60,064m, 7.6% up on the figure for June 2011. As in previous quarters, deposit gathering continues to be strong, above all in demand deposits. More precisely, current and savings accounts amount to €24,282m, up 22.3% year to date. Thus the business mix continues to be profitable on the liabilities side as well, as low-cost funds account for 78% of customer deposits on the balance sheet, while time deposits account for the remaining 22%. Customer fund gathering has maintained its target of moving out of high-cost liabilities. This is the reason behind the year-on-year fall of 11.6% in time deposits, which was partly offset by the increase in mutual funds (savings instruments that are a partial substitute for time deposits), which were up by 10.3% in the same period