January-March 2013

Macro and industry trends

Although 2013 started with the same energy seen in the latter part of 2012, macroeconomic indicators and market sentiment have gradually worsened as we moved further into the quarter. The key factors accounting for this turnaround have been the political uncertainty in Italy and the collapse of the banking system in Cyprus.

Against this background, wholesale activities in equity capital markets (ECM) and mergers & acquisitions (M&A) have reported very low volumes. By the same token, the lending business has encountered further setbacks due to the global deleveraging process underway.

In BBVA, this area’s earnings are standing firm thanks to its customer-centric and diversified business model, greater efficiency and cost control and prudent risk management.

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.