January-March 2013


Spain closed the first quarter of 2013 with performing loans at €188,385m, an increase over the last 12 months of 2.1%, and 1.0% over the quarter. The year-on-year figure is influenced by the incorporation of Unnim on July 27, 2012. The quarterly figure is the result of a temporary increase in more volatile balances deriving from repo agreements relating to market operations. Excluding this item, the amount of performing loans as of 31-Mar-2013 is €179,004m, a 1.7% decline on the figure at the close of 2012. To sum up, lending activity continues to fall in Spain as a result of the deleveraging process in the country, due to the current economic situation.

BBVA had a volume of €180,053m in customer funds in Spain as of 31-Mar-2013, including customer deposits, promissory notes and off-balance sheet funds, up 9.3% year-on-year and 3.4% quarter-on-quarter. Once more, on-balance sheet customer deposits and promissory notes were strong, with a total balance of €138,623m, a rise of 14.5% on the previous 12 months and 3.6% on the close of December 2012. Within this heading, and as a result of the commercial policies implemented, the best performance was in time deposits, which increased by 7.2% between January 1 and March 31. As a result, the area’s market share in customer deposits from other domestic sectors increased by 80 basis points over the last 12 months to 11.2%, according to the latest information available as of February 2013.

With this performance of lending and customer funds, the loan-to-deposits ratio (1) in the domestic sector fell from 134% as of December 2012 to 132% as of 31-Mar-2013. Including mortgage-covered bonds, the ratio stands at 105%.

Spain. Banking activity. Performing loans breakdown

(March 2013)

Spain. Banking activity. Deposits from customers

(March 2013)

Off-balance sheet funds managed by BBVA in Spain amounted to €52,855m, a rise of 3.9% since the end of March 2012 and 1.8% since the close of 2012. Of this figure, €19,259m corresponds to mutual funds, a slight increase of 0.7% over the quarter. Year-on-year they declined 2.5%. Pension funds totaled €18,779m, a rise of 6.8% over the previous 12 months and 2.5% in the first three months of 2013. As a result of these figures, BBVA has maintained its position as the top manager in both mutual and pension funds in Spain, with market shares of 15.1% in mutual funds (according to the latest information available as of February) and 19.5% in pensions (according to data published by Inverco in December).

With respect to asset quality, the slight upward movement in the NPA ratio over previous quarters has continued, as forecast, due to the difficult macroeconomic situation and the impairment of the commercial loans portfolio. Despite this, the ratio is still far below that reported in the sector overall, and closed March at 4.3%, 32 basis points above 31-Dec-2012. The coverage ratio has remained stable over the quarter, at 50% (48% at the close of December 2012).

(1) The ratio excludes securitizations and repos and includes promissory notes placed in the retail network.