BBVA in 2012

Europe has contributed 34.8% to the above result, i.e. €331m (down 28.8% year-on-year). Ofparticular note is the continued excellent performance of Turkey, whose earnings stand at€314m, a rise of 62.8% on the previous year (partly because Garanti contributed for the 12months in 2012, while in 2011 it began to contribute at the end of March). In the rest of Europe,the net attributable profit fell 93.9% in the same period to €17m. This is due to reduced activitywith wholesale customers, turbulence in the markets and the aforementioned loan-lossprovisions made in Portugal.Garanti is a bank that serves 11.7 million customers with a workforce of 20,318 people. It has anetwork of 936 branches and 3,508 ATMs. It covers all business segments, ranging from retailto investment banking, and including the service it provides to small businesses and largecorporations. Garanti’s dynamic business model is founded upon the continueddevelopment of technologies to make customer transactions easier. For that reason,innovative payment systems and mobile and online banking are flagships for the Bank’sidentity.20 Garanti Bank. Market shares as of 31-Dec-2012(Percentage)68.07045.0605029.04011.512.817.93020DepositsLendingCredit cardsOnline bankingtransaction (1)Mobile bankingtransaction (1)Contact-lesscards100(1) Data as of 30-Sep-2012, latest available data.Source: BRSA.Garanti works to create value for its customers and shareholders, in addition to society as a whole.It therefore supports initiatives in areas such as childhood, the environment, equality and culture.Support program for women entrepreneurs, helping them access to loans and hosting variousevents to increase their visibility, were distinguished among social responsibility projects of 2012.Also, in association with the Turkish basketball federation, for which it is the leading sponsor,Garanti has financed programs to promote access to this sport in schools across the country. Inaddition, it supports cultural foundations such as SALT, and organizations that seek to preserve theecosystem and biodiversity, such as WWF.The most notable aspects of the Turkish bank in 2012, are as follows (data for Garanti Bank, unlessotherwise indicated):• Continued progress in lending (up 9.4% year-on-year), particularly in the local currency (up16.0%). There has been a notable boost in the retail portfolio, with positive growth rates that areabove the sector average, in highly profitable products such as loans to the automobile sector(up 10.6% year-on-year at Garanti versus 2.9% in the sector) and mortgages (up 15.4% at Garantiand 13.4% in the sector).• Customer deposits have continued to rise (up 1.4% in the year) thanks to the strong growth inTurkish lira-denominated deposits (up 4.3%).• Excellent management of customer spreads, thanks mainly to a reduction in the cost ofliabilities. In the fourth quarter of 2012 this cost fell once more, leading to an additional increasein the spread and thus an improvement in the bank’s profitability ratios.154 Business areas