The banking business generated a net attributable profit of €587m over the six month period, a year-on-year increase of 25.0%. The most significant aspects over the quarter for each of the banks are detailed below:
Argentina saw major growth in net interest income of 52.3%, thanks to the strong activity already evident in the first quarter of the year and continuing into the second, combined with an increase in the customer spread. The loan book increased 27.3% year-on-year and customer deposits were up 14.8%. In addition, increased income from fees and NTI led to a 41.9% rise in gross income. Expenses have evolved in line with domestic inflation, while loan-loss provisions mirror the growth in activity. All this has led to a year-on-year increase of 46.9% in net attributable profit to €105m.
In Chile, the loan book grew by 20.1% since the end of June 2011. This led to a rise in the market share over the last twelve months of 28 basis points (April figures, the latest available). By segments, consumer lending grew particularly strongly (+up 86 basis points) thanks to the bank’s campaigns and promotions and improved distribution through alternative channels (ATMs, the Internet, etc.). Customer funds also grew at a similar rate to lending. This led to a significant rise in market share since April 2011 (up 83 basis points), mainly due to time deposits. This had a positive impact on the year-on-year figure for net interest income (up 3.0%). In contrast, reduced net fees and commissions and lower NTI due to market volatility led to gross income remaining at practically the same levels as for the first half of 2011 (down 0.4%). The above factors, combined with increased expenses due to expansion plans, and loan-loss provisions resulting from higher lending, led to a 6.3% year-on-year fall in net attributable profit to €66m.
In Colombia, BBVA maintains a sustained level of growth in lending (up 21.4% year-on-year) leveraged on the individuals portfolio (up 30.9%) and achieves an improved competitive position in all lines over the last 12 months (also on April 2012 figures). The market share in total lending was up 49 basis points, consumer lending up 110 basis points, credit cards up 156 basis points and corporate lending up 18 basis points. As a result, net interest income increased by 15.4% year-on-year and gross income by 18.1%. Good risk management led to better asset quality indicators in the sector. As a result, the net attributable profit was up 28.1% year-on-year to €139m.
Peru saw a 14.1% increase in loans, leading to a major gain in market share year-on-year according to April figures (up 53 basis points), focused on credit cards (up 82 basis points) and corporate lending (up 106 basis points). Customer funds were up 14.0% thanks to growth in time deposits. As a result, net interest income rose by 15.0% and gross income by 16.6%. Costs were affected by the expansion plans carried out during the year, and loan-loss provisions strongly reflected the growth in activity. Thus, net attributable profit was €79m, up 12.3% on the same period in 2011.
BBVA Provincial in Venezuela also maintained the high growth rate seen in the previous quarter. Net interest income was up 50.8% year-on-year thanks to the increase in lending (up 48.1%) and customer funds (up 48.7%). NTI fell, as the figures for first quarter of 2011 reflected the effect of the revaluation of US dollar positions. Despite this, gross income was 37.6% higher than in the first six months of 2011. Expenses were in line with inflation and loan-loss provisions declined. As a result, net attributable profit reached €155m, 42.7% up on the same period in 2011.
Among the other banks, BBVA Panama had a net attributable profit of €15m, BBVA Paraguay €7m and BBVA Uruguay €19m (including the contribution from Crédit Uruguay).