BBVA in 2012

greater efficiency, cost control and prudent risk management, this area has managed tomaintain the net attributable profit generated in 2011. To do so, the management priorities in2012 have focused on:• Boosting geographical and product diversification in the markets where BBVA has competitiveadvantages.• Offering added-value services to customers.• Growing in profitable products within the new regulatory context, where optimizing capitalconsumption is a key aspect.• Developing technological platforms and products focused on meeting the transactional needsof customers. In this regard, progress has been made in the development of the transactionalplatform, with the launch of “BBVA Global Net Cash”.• Developing liabilities products that adapt better to the economic context and customer needs,making a distinction between BBVA risk and Spain risk.Regulatory pressure will continue to increase in the future and the economic recovery will takeplace unevenly and at a different pace in the various geographical areas. Facing this situation,BBVA CIB will continue to boost the customer-centric approach, geographical and product andservice diversification, efficiency in cost and capital consumption, and prudent risk management.To do so, actions will be carried out on the following points:• Boosting the cross-border business and collaboration with the Group’s local networks in allgeographical areas.• Operating in core markets as a key differentiation element.• Making the most of BBVA’s competitive advantages in emerging markets.• Using the Bank’s networks as a key lever to make the business structure more profitable.• Investing in growth in transactional products and strengthening the value chain integrationmodel: origination, structuring, distribution and trading.• Moving towards a less capital-intensive model.• Simplifying business management to become more efficient and flexible in relations withcustomers.• Continuing to invest in technological platforms.ActivityThe BBVA Group has not been immune to the aforementioned situation and the CIB portfolioshave been adversely affected in 2012. Gross lending to customers has declined due to thedeleveraging process underway in the European and U.S. economies, together with CIB’s strategyof selective growth in certain customers and portfolios. It fell by 16.2% over the year to €49,374m.By geographical areas, the balances are down in Europe, Asia and the U.S., they have remainedstable in Mexico (down 1.3% year-on-year) and increased in South America (up 5.6%).From the point of view of liabilities, the effort made by CIB to adequately manage liquidity isreflected in the reverse of the trend in customer funds. Following the outflows seen mainly in thefirst half of 2012 as a result of the downgrade of the credit rating of Spain and BBVA,on-balance-sheet customer funds, excluding repos, increased by 7.3% in the last quarter anddecreased by 3.0% year-on-year. Finally, the balance stood at 30,376m as of 31-12-2012.Additional information: Corporate & Investment Banking203