This unit services the financial and non-financial needs of individuals, professional practices, retailers and small businesses with products adapted to each segment.
In 2009, among other commercial products adapted to the customers´ financing and savings needs, €28,000 million in pre-approved loans were issued for individuals and 6,000 million for SMEs, businesses and the self-employed.
The stability of net interest income and the further reduction in costs are the main features of the unit’s results and thus compesating to a large extent for the increase in provisions, while profits showed a slight decline of 2.2% as compared to 2008.
The loan portfolio at 31-Dec-09 was €101,909m, a fall of 2.0% year-on-year, while customer funds fell 1.2% to €111,212m. In this regard, despite a number of aggressive campaigns by other banks to capture savings and current accounts, the unit has achieved an increase of 10.9% year-on-year (€3,053 million), due to: two new Quincenas del Ahorro (Two Weeks of Savings), with more than €1,400 million captured and 450,000 gifts given; the various paychecks and pension funds campaigns, including those for salaries above €2,500; and the “Jornada de tu Vida“ (Day of your Life) campaign associated with the sponsorship of the Professional Soccer League, which allows BBVA clients to make deposits in their accounts or purchase BBVA cards to participate in raffles for salaries, gift certificates and to double the prize if their salary is directly deposited. Against a backdrop of heightened competition and decreased demand due to the fall in interest rates, time deposits closed in 2009 with €29,760 million, for a 16.0% decrease year-on-year. Commercial activity carried out during the last part of the year, with the launch of the Depósito Fortaleza (Strength Deposit), Depósito Nómina (Paycheck Deposit) and Depósito Líder (Leader Deposit) have contributed to the capture of €7,720 million, up 24.1% from the previous quarter.
In mutual funds, with a total of €28,403 million managed as at 31-12-09, the unit made a significant effort in managing the high volume of maturities of the guaranteed funds, which has allowed it to consolidate its leadership position in the most conservative modalities and in the total assets under management. BBVA also maintains top position in the ranking for pension fund volume managed, €9,904 million (+7.4% year-on-year). In May 2009, the 59+ program was launched. It consists of a set of financial and non-financial benefits targeted at customers over the age of 59, and now includes 70,000 clients and has captured 28,000 new pensions. Activities for consolidating this new segment include the constant renovation of the range of non-financial benefits and the communication of a broad range of products and services.
In the private individual segment residential mortgages and savings and current accounts performed well. In residential mortgages the market share gain was recurrent throughout the year, until it accumulated 41 more basis points at close, for 13.9% of market sales. Some outstanding results include those from the Ven a Casa 200 campaign, which contributed 20% of branch network volume; the completion of more than 10,000 transactions in the Hipoteca Blue Protegida (Protected Blue Mortgage) targeted at young people (and gives back 1% of the mortgage volume and two years of unemployment insurance); and the commissioning of a new online 24-hour Feasibility Study that has generated business opportunities from several real estate portals. As a result the portfolio of residential mortgages rose 2.1% during the year to €69,850m. In consumer finance, the range of financial solutions for the unit was completed with the renovation of the limits assigned in immediate PIDE loans to 1.35 million customers, with the launch of a new website (www.financiatucochebbva.com) that provides clients access to information on car loans; and with the launch of a promotional campaign that offers a free television set to individual customers who take out a loan over €12,000. This has contributed to making volume reach €1,717 million in 2009, and the managed balance at €7,165 million (€8,950 million as at 31-12-08), for a decrease in line with lower household expenses.
BBVA Banca Privada (private banking) is the unit that manages the former personal banking (now Banca Privada) and wealth management units (BBVA Patrimonios). In 2009, assets under management stood at €43,056 million, up 7.8% on December 31, 2008. This has occurred thanks to its new model for added-value management and its closeness to the customer, based on: innovation, with a new platform of systems that optimize operational processes; differentiation, with a range of products adapted to each customer profile (managed and guided portfolio, Visa Infinite, assured annuities, Family Office products, etcetera); guidance with the BBVA Broker service (for insurance) and the Planific@ tool, a pioneering asset planning service; and customer appeal with the PROA Plan and optimization of synergies with other Group areas. Finally, in order to offer high quality service in Spain, wealth management centers have been opened in Malaga, Valladolid and Oviedo.
The SME and retailer segments (which also include the self-employed, the rural economies and small companies) attained lending of €13,869 million as at 31-12-09 (€16,166 million at 31-12-08). The implementation in late 2008 of two new customer relations models, Compromiso Autónomos (Commitment to the Self-employed) and Compromiso Comercios (Business Commitment) has led to a total 32,000 members for the first group, more than half of which are new clients, and the excellent acceptance of the PoS Voucher by merchants, with more than 21,000 members since its launch and more than 20% of retailers using it for their sales with PoS. The latter has increased by 3% in the fourth quarter, as compared to the decrease experienced in the market. Also worth mentioning are the boost of the lines of finance for the pre-approved loans campaign; the formalization of €574 million in ICO credit lines; the launch of two new plans: Plan Choque Comercios (Retail Special Plan) and Factoría de Clientes (Customer Factory), which have completed asset transactions for €3 million and a capture of savings and current accounts of €2.5 million; and the signing of several collaboration agreements with the ATA Association for the Self-employed (more than 430,000 members); with the UNALT taxi professionals (more than 58,000 members); and with FEHR restaurant owners (270,000 proprietors). Also, financing agreements were signed in the rural industry with agricultural cooperatives and equipment manufacturers. Agricultural subventions from the European Union were managed and deposited for 43,000 farmers for a total of €185 million.
Regarding payment channels, BBVA has earned the top score from the Euromoney magazine as best provider of transactional cash management services in Spain for corporates and institutions. BBVA is also the leader in the Spanish market for credit cards, both financial and private, at 10 million units. This has been made possible thanks to the launch of the innovative family of cards with a tri-fold objective: they are adapted to the customer’s payment preference, easier to use and have increased security measures. The new range has been divided into four groups, based on how the client wishes to make payments: Antes, Ahora, Después and A tu Ritmo. This makes BBVA the first major financial entity to migrate towards the new European EMV card standard, which incorporates the most advanced security pack on the market. Likewise, the innovative flat rate option for PoS was consolidated in 2009 for the business segment.
In multi-channel management, the BBVA Telephone Channel Optimization and Modernization Process are designed to the improve customer service and offer a greater commercial response, with initiatives like: Customer Factory, Loyalty and Retention. In 2009, the telebanking channel received the “CRC de oro” prize for best telebanking service. Online, access by individual clients grew 13%, and 5% by the business segment, while the www.bbva.es website had more than 69 million hits over the year. The mobile banking service, BBVA mobi, was launched in July, allowing users to carry out a large part of normal transactions (transfers, consults, equity trade), and, using the “Efectivo Móvil” service, access cash at ATMs with no need for a card. The self-service line acquired 800 new ATMs with deposit modules, for more than 700,000 deposit transactions per month. Finally, navigation on ATMs was renovated to make their use faster and simpler.
The Innovation and New Business Models unit, which manages non-financial services, has maintained a high level of activity and sales in all of its product families, with a total participation in 2009 of 154,000 operations and €165 million in sales.
