BBVA in 2012

PeruThe Peruvian economy has also performed remarkably well, despite the uncertaintysurrounding the international financial situation, which has affected global economic activity.GDP grew by 6.0%, due mainly to strong domestic demand.As a result, the Peruvian banking system has performed very well. At the close of 2012,lending by depository institutions to the private sector has grown 15.3% year-on-year, driven bythe aforementioned strong economic activity, employment and attractive financing conditions.BBVA’s activity in Peru has increased significantly, in line with the country’s strong economicperformance. This can be seen in the growth of the loan book (up 10.5% year-on-year), and themarket share in credit cards, customer deposits (up 8.8% year-on-year) and current and savingsaccounts. This trend is reflected in the country’s net interest income (up 13.2% year-on-year), whichcombined with the increase in fees and commissions (up 9.8%), despite the new regulations,and strong growth in NTI (up 22.6%), has resulted in a 14.0% increase in gross income. Expensesand loan-loss provisions are up, the latter in line with the increase in activity, resulting in a netattributable profit of €195m, up 12.5% on the figure for the previous year.In recent years, BBVA Continental has been developing products and services adapted tothe new requirements of the modern and competitive Peruvian market with a worldwidereach. With the aim of becoming an easy bank, the “Nuevo Perú, Nuevo Banco” (New Peru,New Bank) concept has been launched. This institutional campaign seeks to explain to thecountry in clear and simple language why the bank is a new bank, as well as the variouschanges made as an organization. The campaign has enabled the bank to improve itssimplicity, innovation and transparency indicators. BBVA Continental has also continued tofocus its strategy on the “customer experience” culture, with commercial and customer serviceprotocols that have enabled it to close 2012 as leader in service quality.In the third quarter of 2012, BBVA Continental raised USD 500m in a successful 10-year bondissue at one of the lowest yields in the Peruvian market. This demonstrates its soundness andthe confidence of international markets in the Peruvian franchise. The funds obtained will beused to meet demand for credit in the country.The good performance of BBVA Continental is reflected in the awards granted in 2012. Forthe ninth year in a row, the bank has received the “Best Bank in Peru” award from GlobalFinance magazine. This same recognition was also granted by the Euromoney Awards forExcellence and Latin Finance. It has also been chosen as the third best Latin American bankby América Economía magazine, two positions up on the rating obtained in 2011. In addition,BBVA Continental won the “Luis Hochschild Plaut 2012” award during the Annual Conferenceof Executives (CADE) for its promotion of quality education through the implementation of theprogram “Leer es estar adelante” (Reading means keeping ahead).Finally, BBVA Research team in Peru has received the “Best Financial Institution in the Terms ofResearch” award at the Latin America’s Investor Relations Awards (LIRA) 2011. This recognitionaims to reward best practices in investor relations and corporate governance at companies inChile, Colombia and Peru, as well as to improve the quality of economic and capital marketsanalysis by those financial institutions in an advisory relationship with investors.182 Business areas