The most important feature of the earnings generated in Mexico is the achievement of high levels of recurring revenue. Net interest income to June 2012 amounted to €2,016m, a year-on-year rise of 8.7%. This is mainly due to higher revenue from the most profitable items in lending and a drop in high-cost liabilities. What is more, it has been achieved against the background of historically low interest rates. Income from fees and commissions rose more than in previous quarters, at 5.1% on the figure for the first half of 2011.

With respect to other income, the excellent performance of the insurance business is reflected in a year-on-year rise of 45.8% in other income/expenses. In contrast, NTI contributed less than in the same period last year, when there were extraordinary high brokerage revenues.

Operating expenses in the first half of 2012 totaled €1,092m, a year-on-year rise of 9.6%.This is in line with the average growth rate over the last few quarters, as a result of the expansion plans underway. These expenses continue to reflect investment in infrastructure, mainly on ATMs and POS (726 more ATMs and 14,312 more POS than at the end of June 2011) and on personnel, with an increase of over 3,100 in the number of employees since June 2011. Even so, BBVA Bancomer is still among the leading Mexican banks in terms of efficiency, with an accumulated cost/income ratio to June 2012 of 37.9%.

Thus, Mexico generated an operating income for the half-year of €1,786m, a year-on-year rise of 1.4%, or 9.1% excluding NTI.

Impairment losses on financial assets were up 3.7% over the previous 12 months to €616m, largely reflecting the strength of lending. However, the accumulated risk premium improved by 18 basis points on the figure for 30-Jun-2011 and by 13 basis points on the close of the first quarter of 2012 to 3.40% as of 30-Jun-2012. Finally, the NPA ratio stood at 4.0% and the coverage ratio at 111% as of 30-Jun-2012.

As a result of the above, Mexico generated a net attributable profit in the first half of 2012 of €865m, 2.4% up year-on-year.

Of this figure, the banking business contributed 80% and pensions and insurance the remaining 20%.

In the pension business, Afore Bancomer continues to perform well, sustained by a positive rate of growth in its activity. It closed the first half of 2012 with assets under management of €15,840m (up 21.9% year-on-year) and receipts up by 6.2%. As a result, there was a rise in fees of 7.9% on the same period in 2011. Combined with the positive result of financial transactions and cost control, the result was a net attributable profit of €44m, a rise of 27.9% on the figure for the first half of 2011.

Insurance activity posted a net attributable profit of €131m, 5.8% up year-on-year. This profit has been boosted by the very good earnings from the Creditón Nómina, VidaSegura, HogarSeguro and Transacción Segura products and a reduction of claims.