BBVA in 2012
BBVA in 2012
BBVA in 2012
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<strong>BBVA</strong> has not been immune to the country’s situation, s<strong>in</strong>ce around 45% of its lend<strong>in</strong>g portfoliocorresponds to the agricultural and farm<strong>in</strong>g sector. The bank’s activity has been adversely affected.This, comb<strong>in</strong>ed with the <strong>in</strong>crease <strong>in</strong> fund<strong>in</strong>g costs, has had a negative impact on net <strong>in</strong>terest<strong>in</strong>come and on fees and commissions. As a result, the unit’s net attributable profit has decl<strong>in</strong>ed to€14m, 39.8% down on the 2011 figure.At a local level, the rat<strong>in</strong>g agency Feller-Rate ma<strong>in</strong>ta<strong>in</strong>ed the bank’s AA rat<strong>in</strong>g, with a negativeoutlook, while at the <strong>in</strong>ternational level Standard&Poor’s has kept its BB– rat<strong>in</strong>g, with a stableoutlook, <strong>in</strong> l<strong>in</strong>e with the sovereign rat<strong>in</strong>g.In <strong>2012</strong>, <strong>BBVA</strong> has improved its tools and carried out the actions needed to make the most of thebus<strong>in</strong>ess opportunities that will arise <strong>in</strong> 2013, when the economy is expected to perform morestrongly. For example, <strong>BBVA</strong> has boosted its retail bus<strong>in</strong>ess with the purchase of the credit cardportfolio of Citibank NA, Paraguay Branch. With this acquisition, <strong>BBVA</strong> will become one of the ma<strong>in</strong>banks <strong>in</strong> this market and improve its position as a comprehensive bank for the preferred customersegment. It has also launched new mortgage products <strong>in</strong> a sector that is undergo<strong>in</strong>g significantgrowth <strong>in</strong> the country. Lastly, <strong>BBVA</strong> has started to operate as an <strong>in</strong>surance broker <strong>in</strong> Paraguay <strong>in</strong>association with the country’s most renowned <strong>in</strong>surance companies, thus complet<strong>in</strong>g the range ofproducts and services available to its customers.UruguayIn <strong>2012</strong>, the Uruguayan economy posted solid growth (up 4%, accord<strong>in</strong>g to estimates), thanks tostrong domestic demand <strong>in</strong> both consumption and <strong>in</strong>vestment. The annual <strong>in</strong>flation rate stood ataround 7.5%.<strong>BBVA</strong> Uruguay has kept its second place <strong>in</strong> the private bank rank<strong>in</strong>g for the loan volumeproduced, with year-on-year growth of 13.6% <strong>in</strong> gross lend<strong>in</strong>g to customers and a 20% marketshare. Customer funds are up 2.4% of which lower-cost funds have performed strongly (currentand sav<strong>in</strong>gs accounts are up 7.0%). In conclusion, the net attributable profit stands at €27m (up196.6%).The highlights of the year have been the major effort made <strong>in</strong> the retail segment, support<strong>in</strong>gbank<strong>in</strong>g penetration <strong>in</strong> the country, and the growth <strong>in</strong> credit cards, through alliances withdistributors and differential promotions. The call center has also been resized and a “serves to sale”concept has been adopted, develop<strong>in</strong>g the distribution channel and add<strong>in</strong>g quality certificationsand compla<strong>in</strong>ts service.Regard<strong>in</strong>g asset/liability management, <strong>2012</strong> has been characterized by positive handl<strong>in</strong>g ofliquidity and strong activity <strong>in</strong> local currency operations, where the bank has been extremely active<strong>in</strong> the primary and secondary markets, both with its own portfolio and customer brokerage.InsuranceThe <strong>in</strong>surance bus<strong>in</strong>ess cont<strong>in</strong>ued to perform well <strong>in</strong> <strong>2012</strong>, despite the lower NTI. The unit postednet attributable profit of €87m, thanks ma<strong>in</strong>ly to strong activity and cost control.Major market<strong>in</strong>g efforts have been made <strong>in</strong> <strong>2012</strong> aimed at improv<strong>in</strong>g and expand<strong>in</strong>g thedistribution channels, develop<strong>in</strong>g a wide range of products and promot<strong>in</strong>g <strong>in</strong>terrelation with other<strong>BBVA</strong> Group bus<strong>in</strong>esses. The bancassurance channel cont<strong>in</strong>ues to drive the <strong>in</strong>surance bus<strong>in</strong>ess.The <strong>in</strong>itiatives implemented <strong>in</strong> partnership with <strong>BBVA</strong> Microf<strong>in</strong>ance Foundation have been veryproductive, and today all the microf<strong>in</strong>ance <strong>in</strong>stitutions <strong>in</strong> South American countries where <strong>BBVA</strong>has <strong>in</strong>surance companies are distribut<strong>in</strong>g its products. Progress will cont<strong>in</strong>ue to be made next year<strong>in</strong> the design of specific products for this sector of the population.184 Bus<strong>in</strong>ess areas