BBVA in 2012

As of 31-Dec-2012, BBVA Seguros has over 2.8 million policyholders, who receive a very high servicequality. Periodic independent measurements granted the home insurance policies an averagescore of 7.8 out of 10 for service received during the claims process, due to resolving over 95% oflife claims and 99% of home claims without complaints.14 BBVA Seguros. Policyholder breakdown(Thousands policies. 31-12-2012)Other non-life individual130Multi risk home + fire749Individual life risk1.565Group savings315Individual savings118Policyholders total: 2,813,209In 2012, BBVA Seguros has improved the offering of “Seguros Remunerados” (remuneratedinsurance), with the aim of attracting new customers and rewarding the loyalty of existingpolicyholders, offering discounts of up to 35%. Following the customer-centric approach tobusiness, the Bank launched the new “BBVA Car Insurance Policy” in the third quarter of 2012. Thisis a flexible product which can be adapted to the customer’s needs and allows BBVA Seguros tocontinue diversifying its lines of business. The Bank began marketing a new life insurance catalogin the last quarter of the year which enables a high degree of customization, as it can be adaptedto the type of protection each customer needs, thanks to the modular nature of the product interms of arranging insurance and the flexibility in adapting it later.Corporate & Investment BankingThis unit is responsible for the global businesses within Spain. It managed gross lending tocustomers as of 31-Dec-2012 of €18,906m and on-balance-sheet deposits of €9,175m. Grosslending to customers has continued to fall, basically as a result of the aforementioned deleveragingprocess. This heading has registered an accumulated decline over the last year of 18.9%.On-balance-sheet customer funds are down 7.8% over the same period. On-balance-sheetcustomer funds grew significantly in the last three months of 2012 by 29.5%, thanks to the ongoingefforts made to attract deposits.The following are worth highlighting as regards earnings:• 16.7% year-on-year increase in gross income to €927m, underpinned mainly by goodperformance of revenue from customers and, in particular, revenue generated by the GlobalTransactional Banking unit. In the last part of the year, a better market mood has also made apositive contribution to the generation of gross income.• Control of operating expenses, which have grown well below the inflation rate (up 1.2%year-on-year) to €323m.• Operating income is up 27.1% on 2011 to €603m.• Greater volume of impairment losses on financial assets as a result of the current situation. Evenso, the NPA ratio in this segment continues to be low.Spain147