Other information: Corporate & Investment Banking

C&IB highlights in the second quarter

Rating downgrades have had a negative impact on activity.
Diversified revenue.
Resilient operating income.

Industry Trends

The second quarter of 2012 was characterized by a worsening of the debt crisis in the peripheral European countries and by downgrades in Spain’s sovereign rating. This has negatively affected wholesale business activity in general, above all in Europe.

Despite this situation, BBVA has maintained high-quality recurring earnings at CIB thanks to its differential customer-centric business model, and its portfolio diversified by products and geographical areas.

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 BBVA’s wholesale business.

Tables

Income statement

(Million euros)

	Corporate & Investment Banking
	1H12	Δ%	Δ% ⁽¹⁾	1H11
Net interest income	850	14.1	12.0	745
Net fees and commissions	349	4.1	1.6	335
Net trading income	134	(46.0)	(47.6)	249
Other income/expenses	62	83.5	88.5	34
Gross income	1,395	2.4	0.2	1,363
Operating costs	(437)	5.6	3.0	(414)
Personnel expenses	(243)	3.1	0.9	(235)
General and administrative expenses	(189)	7.3	4.3	(176)
Deprecation and amortization	(6)	105.2	96.0	(3)
Operating income	958	1.0	(1.0)	949
Impairment on financial assets (net)	(67)	n.m.	n.m.	12
Provisions (net) and other gains (losses)	(17)	140.9	114.1	(7)
Income before tax	874	(8.4)	(10.0)	954
Income tax	(262)	(5.0)	(6.6)	(275)
Net income	612	(9.8)	(11.4)	679
Non-controlling interests	(60)	37.7	27.3	(43)
Net attributable profit	553	(13.0)	(14.2)	635

(1) At constant exchange rate.

Balance sheet

(Million euros)

	Corporate & Investment Banking
	30-06-12	Δ%	Δ% ⁽¹⁾	30-06-11
Cash and balances with central banks	6,145	29.7	12.5	4,739
Financial assets	83,060	22.7	22.0	67,670
Loans and receivables	74,391	6.5	4.2	69,877
Loans and advances to customers	61,010	6.8	4.1	57,104
Loans and advances to credit institutions and other	13,381	4.8	4.5	12,773
Inter-area positions	7,720	(45.3)	(48.0)	14,109
Tangible assets	32	40.7	34.9	23
Other assets	3,044	33.1	29.6	2,286
Total assets/Liabilities and equity	174,392	9.9	7.5	158,705
Deposits from central banks and credit institutions	69,075	13.3	11.6	60,952
Deposits from customers	37,256	(27.6)	(30.1)	51,440
Debt certificates	(215)	(61.9)	(61.9)	(563)
Subordinated liabilities	1,554	(25.9)	(26.9)	2,098
Inter-area positions	-	-	-	-
Financial liabilities held for trading	55,831	66.5	66.2	33,536
Other liabilities	5,766	(21.2)	(25.3)	7,315
Economic capital allocated	5,125	30.5	26.5	3,927

(1) At constant exchange rate.

Diagrams

C&IB. Operating income

(Million euros at constant exchange rate)

(1) At current exchange rates: +1.0%.

C&IB. Net attributable profit

(Million euros at constant exchange rate)

(1) At current exchange rates: – 13.0%.

January - June 2012

Other information: Corporate & Investment Banking

Industry Trends

Tables

Diagrams