This unit manages the business with large corporations and multinational groups in the domestic market through Corporate and Investment Banking (C&IB), and the activity of Global Markets in the same geographical area, with their trading floor business and distribution. It is a customer base with diversified business and high cash flows from other countries. BBVA is able to offer a full range of products and services, supported by its extensive international presence.
In Spain, Wholesale Banking managed a loan book of €20,366m as of 30-Sep-2011, and customer funds of €17,637m. Both figures show great stability with respect to those for the same date last year (€20,667m and €17,443m respectively, as of 30-Sep-2010). The unit continues to focus strongly on customers with the highest levels of loyalty, profitability and credit quality.
The most significant aspects of earnings in the unit are as follows:
- Resilient recurring revenues in the unit (net interest income plus fees): the figure for the nine months ended 30-Sep-2011 is very similar to the same period in 2010, at €723m.
- Negative contribution from NTI in the quarter. This is explained by the economic situation in this period, the low level of business and falling asset prices in general.
- As a result, the gross income stands at €782m, 2.2% above the figure for January-September 2010. Year-on-year growth in expenses of 9.4%, sustained by the investment project explained in previous quarters; as a result, the operating income was €474m (down 1.9% year-on-year).
- Stability in impairment losses on financial assets, with a net attributable income in the nine months ended 30-Sep-2011 of €320m (€346m as of 30-Sep-2010).