The Peruvian economy has also performed remarkably well, despite the uncertainty surrounding 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 by the aforementioned strong economic activity, employment and attractive financing conditions.
BBVA’s activity in Peru has increased significantly, in line with the country’s strong economic performance. This can be seen in the growth of the loan book (up 10.5% year-on-year), and the market share in credit cards, customer deposits (up 8.8% year-on-year) and current and savings accounts. This trend is reflected in the country’s net interest income (up 13.2% year-on-year), which combined 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. Expenses and loan-loss provisions are up, the latter in line with the increase in activity, resulting in a net attributable 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 to the new requirements of the modern and competitive Peruvian market with a worldwide reach. 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 the country in clear and simple language why the bank is a new bank, as well as the various changes made as an organization. The campaign has enabled the bank to improve its simplicity, innovation and transparency indicators. BBVA Continental has also continued to focus its strategy on the “customer experience” culture, with commercial and customer service protocols 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 bond issue at one of the lowest yields in the Peruvian market. This demonstrates its soundness and the confidence of international markets in the Peruvian franchise. The funds obtained will be used to meet demand for credit in the country.
The good performance of BBVA Continental is reflected in the awards granted in 2012. For the ninth year in a row, the bank has received the “Best Bank in Peru” award from Global Finance magazine. This same recognition was also granted by the Euromoney Awards for Excellence and Latin Finance. It has also been chosen as the third best Latin American bank by 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 Conference of Executives (CADE) for its promotion of quality education through the implementation of the program “Leer es estar adelante” (Reading means keeping ahead).
Finally, BBVA Research team in Peru has received the “Best Financial Institution in the Terms of Research” award at the Latin America’s Investor Relations Awards (LIRA) 2011. This recognition aims to reward best practices in investor relations and corporate governance at companies in Chile, Colombia and Peru, as well as to improve the quality of economic and capital markets analysis by those financial institutions in an advisory relationship with investors.