BBVA in 2012

VenezuelaIn 2012, the growth of the Venezuelan economy has been driven by strong performance in theconstruction and service sector. This buoyant domestic demand has resulted in a remarkableincrease in imports. In the second half of the year, the country’s GDP grew by 4.7%. The largest partof this growth is due to non-oil activity, which has expanded by 5.3%.Inflation slowed in the first part of the year as a result of the enactment of the Fair Price and CostAct, but began increasing in August. Year-on-year inflation stood at 19.9% as if the end of December,down 7.7 percentage points on the figure for 2011.Throughout the year, BBVA Provincial has aimed its efforts at boosting the profitable andsustained growth seen in recent years. Business activity has been very strong. Lending hasgrown 45.4% year-on-year and customer funds at a rate of 60.6%, resulting in a 45.3% increase innet interest income. Fees and commissions are up 37.0% as a result of the good performance ofthe banking and insurance business. In contrast, NTI fell, as the figures for 2011 had reflected theeffect of the revaluation of US dollar positions. Together with the increase in expenses andloan-loss provisions, all of the above has resulted in a rise of 51.4% in the net attributable profitto €329m.BBVA Provincial continues to provide the widest range of financial products and servicesadapted to the needs of each customer segment. This is based on ongoing innovationand the development of new technologies, with improvement in the bank’s image, which isclosely linked to sport. It has continued to be the pioneer in mobile banking in Venezuela.Finally, BBVA Provincial’s sound position and leadership in the Venezuelan financial systemhas been confirmed once again by the various awards received during the period. Forthe sixth year running, it has received the “Best Bank in Venezuela” award granted by theprestigious magazine Global Finance. Also for the sixth year in a row, it received the “BestBank in Venezuela” award granted by the international publication Euromoney. For the fourthtime in the last six years, The Banker granted BBVA Provincial the “Best Bank in Venezuela”award, one of the most important accolades in the financial industry. In addition, for thesecond year, the bank received the “Best Online Bank” award granted by Global Finance andwas selected as the “Most effective online bank” and the “Bank offering the most effectiveresponse” by the corporation Suiche 7B.PanamaThe Panamanian economy has continued to perform strongly, with economic growth for 2012estimated at around 11%, putting it among the top 5 in Latin America. The unemployment ratecontinues to fall, closing the year below 5%.BBVA Panama ended the year with positive earnings and a net attributable profit of €27m. Inaddition, specific provisions have been increased by more than €3m during the period.Paraguay2012 has been a difficult year for the country’s economy, with its main drivers affected. Meatexports have fallen in the farming sector due to two outbreaks of foot-and-mouth disease in thesecond half of 2011. In the agricultural sector, the severe drought at the beginning of 2012 affectedcrops. Given the weight of the primary sector in the country’s economy, the latest GDP estimatereleased by the Central Bank suggests a 1.5% contraction for 2012. At 4%, the CPI is within theinflation target.South America183