In 2012, the growth of the Venezuelan economy has been driven by strong performance in the construction and service sector. This buoyant domestic demand has resulted in a remarkable increase in imports. In the second half of the year, the country’s GDP grew by 4.7%. The largest part of 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 Cost Act, 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 and sustained growth seen in recent years. Business activity has been very strong. Lending has grown 45.4% year-on-year and customer funds at a rate of 60.6%, resulting in a 45.3% increase in net interest income. Fees and commissions are up 37.0% as a result of the good performance of the banking and insurance business. In contrast, NTI fell, as the figures for 2011 had reflected the effect of the revaluation of US dollar positions. Together with the increase in expenses and loan-loss provisions, all of the above has resulted in a rise of 51.4% in the net attributable profit to €329m.
BBVA Provincial continues to provide the widest range of financial products and services adapted to the needs of each customer segment. This is based on ongoing innovation and the development of new technologies, with improvement in the bank’s image, which is closely 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 system has been confirmed once again by the various awards received during the period. For the sixth year running, it has received the “Best Bank in Venezuela” award granted by the prestigious magazine Global Finance. Also for the sixth year in a row, it received the “Best Bank in Venezuela” award granted by the international publication Euromoney. For the fourth time 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 the second year, the bank received the “Best Online Bank” award granted by Global Finance and was selected as the “Most effective online bank” and the “Bank offering the most effective response” by the corporation Suiche 7B.