Activity in the quarter in South America was once more outstanding. Gross customer lending ended June with a balance of €45,331m, a 23.1% year-on-year increase and a gain of 4 basis points in market share (latest available figures from April). Growth was across-the-board and in almost all the countries in the region. Retail portfolios were outstanding, specifically consumer lending and credit cards, where year-on-year growth was 35.5% as of 30-Jun-2012, as well as SMEs and small businesses, with a major increase over the same period of 179.9%.

Rigorous risk admission policies and outstanding management of recoveries are leading to a steady improvement in the asset quality of the loan portfolio and thus a favorable performance in the main risk indicators. The NPA ratio closed at 2.3%, a similar level as of 31-Mar-2012 and a fall of 18 basis points since June 2011. The coverage ratio closed at 139%, remaining very stable compared with the figures for March 2012 and June 2011.

Customer deposits totaled €50,761m as of 30-Jun-2012, an increase of 23.0% year to date (a very similar rate to the loan book). The fairly balanced growth in the different customer fund products was particularly notable: low-cost transaction accounts increased by 25.2% and time deposits by 21.1%. Including the assets under management by mutual funds, customer funds managed by the banks in South America amounted to €53,954m, up 21.1% on the same date in 2011.