Within this unit, Retail Banking manages a loan-book of €94,665m, a fall over the quarter of 1.3% (down 4.6% year-on-year), and on-balance-sheet customer deposits of €79,092m, up 4.7% over the quarter and 6.6% year-on-year, mainly supported on current and savings accounts.

In the difficult economic situation of sluggish growth and deleveraging in the system, BBVA continues to support its customers by maintaining the supply of credit without easing its high standards and quality. The following are worth noting in this respect in the second quarter of 2012:

• New production of mortgages amounting to €600m, up 5.0% on the figure for the first quarter of 2012.
• New production of consumer finance in the same period amounting to €301m, a rise of 11.5% on the first quarter. This positive performance in a market with clear signs of weakness has been supported by the new pre-approved loan campaigns.
• BBVA continues to support SMEs through the ICO credit facilities. The “13th two-week period” closed the quarter with 11,173 transactions for a total of €347m, 3.0% up on the same period last year.

With respect to liabilities, the second quarter of 2012 was also very good in terms of gathering stable funds (time deposits plus promissory notes). New production from April to June grew by 189%, with the balance up €418m as of 30-Jun-2012.

• Specifically, management of redemptions in time deposits was particularly successful, with retention rates of over 80%.
• This quarter has seen the promotion of the “BBVA Uno Triple” deposit, which rewards customers for increased use of their account and for holding insurance policies, as well as the “BBVA 11” deposit, which allows interest payments to be received on a regular basis.
• In the SME segment, the campaign to attract direct deposits of PAC 2012 aid closed on April 30 with a total of €245m of deposits.

BBVA has launched the Customer Strategy 2012 Plan. This plan has a twofold objective: 1) to attract new customers and 2) to increase the loyalty of existing customers. Among the actions undertaken to achieve these objectives are the following:

• The launch of the Plan Sinergias to attract new customers. The aim of this plan is to attract individual customers from among the employees of institutional and corporate clients.
• To encourage loyalty, priority will be given to attracting direct deposits of payrolls, insurance and pensions. The new Quincena de Cuentas Abiertas campaign was particularly successful. It has added 14,910 new payrolls of pension deposits, nearly 3,000 new insurance deposits and more than 3,800 one-off contributions to pension plans. In the quarter overall, the bank attracted direct deposits of nearly 72,000 new payrolls and over 30,000 pension payments.

With the aim of improving the quality of customer service in the premium segment, a process of reclassifying customers in the “value” segment (over €60,000 in funds, or monthly net salaries of over €3,000) and “high value” segment (over €300,000 in funds or monthly net salaries of over €6,000) was undertaken this quarter. The aim of the process was to adapt the quality of service and value offer to the specific needs of each person and each situation.

As of 30-Jun-2012, CBB managed lending of €89,252m and customer deposits totaling €20,220m. Of particular note is the following:

• Support for economic recovery and maintenance of services to Spanish companies remains a priority for BBVA. In the second quarter of the year, a total of 15,404 operations have been concluded for €1,607m in ICO credit lines. This has been compatible with higher financing margins, increased profitability per customer and thus an improvement in the operating income by 4.8% on the same period last year. BBVA’s support for Spanish companies was also made clear during the Corporate Banking seminar held in Bayonne in June. The seminar discussed possible ways of channeling the recovery and made clear the great competitiveness and capacity for generating value of the big Spanish companies.
• For the medium term, the Strategic Plan 2012-2015 has been defined to strengthen BBVA’s leading position in the commercial segment and take advantage of the Group’s relative strength in this area. This plan is based on improved service, and in particular the development of new tools that offer greater speed and flexibility. A total of 3,200 new accounts have been opened in this segment this year through June, a very notable achievement in the current economic context.
• There is also a firm commitment to accompanying customers in their international expansion. Under the slogan “Growing abroad”, events are being organized throughout Spain to put businesses in contact with front-rank specialists and economic agents to promote exports and international growth.