BBVA in 2012

The macroeconomic and competitive environment in Chile have been favorable for BBVA.Lending grew 16.5% year-on-year, focused mainly on the private individual segment, anda market share gain of 4 basis points to 7.8%, according to the latest data for November.This improvement in the competitive position can be seen basically in mortgage loans andconsumer finance, which increased in the year by 29 and 39 basis points, respectively. Theseresults have been achieved by the successful development of the strategic plan, with stronggrowth in the installed capacity that additionally allows for the increase in the customer base.Forum, the unit specializing in consumer finance and leader in the automotive sector in Chile,has also benefited from strong car sales and has increased its market penetration rate innew car sales to 13.4%. The trend in the insurance business has also been positive thanks tocontained levels of claims. With respect to on-balance-sheet customer funds, Chile has posteda year-on-year increase of 10.2%.From the point of view of earnings, this year has been more difficult for Chile than the previousone as a result of investor perception of the macroeconomic situation in Europe and, particularly,in Spain. The uncertainty in the euro zone has resulted in an increase in the cost of funding, whichhas slowed down growth in more recurring revenue. However, net attributable profit stood at€268m, 11.2% up on the same period in 2011.In addition, BBVA Chile has made progress in its social responsibility plan. For the thirdyear in a row, it has been ranked as one of the most socially responsible companies inthe country, according to the “2012 National Business Responsibility Ranking” publishedby Fundación Prohumana and the magazine Qué Pasa. The main factors contributing tothe award have been: the Niños Adelante (Forward, children) program; the work of the“Corporate Volunteer”; the application of strict principles and ethical standards in its activity;the global Eco-efficiency plan; continuous improvement in professional standards; and thecreation of an equality plan and diversity committee. BBVA Chile has also been recognizedby the Chilean-US Chamber of Commerce with the “Good Corporate Citizen Award” for itsprogram “Niños Adelante”, which provides quality nursery education to children sufferingfrom poverty.Finally, BBVA Chile has for the first time been listed in the Business Corporate Reputation Monitor(Merco) as one of the leading and most respected companies in the country.Colombia2012 has been a very good year for Colombia in terms of macroeconomic indicators: higheconomic growth, in line with recent years, inflation at an all-time low, fiscal deficit reduction, andimproved unemployment rates. This has enabled Colombian companies to benefit from strongdomestic demand and new trade agreements, maintaining a high rate of activity, particularly in keysectors such as services, construction and mining.In this context, in Colombia, BBVA Group closed 2012 with excellent earnings figures, above thoseachieved by its competitors. The lending business once again saw significant growth. Lending toindividuals is up 23.2% year-on-year, with a significant contribution from all of its lines: consumerlending, including credit cards, and mortgage loans (up 29.2% and 16.9% year-on-year, respectively),which has enabled the bank to post, once again, gains in its market shares: 112 basis points inconsumer lending, 60 in cards and 32 in mortgage loans. This has resulted in an overall increaseof 42 basis points in the private individual portfolio (data as of November). The performance of theloan book has been accompanied by a strong boost in new customer funds, which are up 27.3%on the closing figure for 2011. Year-on-year gains in the market share of all customer fund lineshave also been posted: up 57 basis points in demand deposits, 131 points in savings accounts, and169 points in time deposits. Once again, asset quality indicators posted an excellent performance,which has enabled the bank to lead the sector. The insurance business has also performed well,driven by bancassurance and NTI. As a result, the country’s net attributable profit continued togrow at a year-on-year rate of 18.7% to €331m.South America181