CIB highlights in the fourth quarter
- Lending activity continues strong in Latin America and down in Europe and the United States.
- Favorable trend in customer fund gathering over the quarter.
- Resilient and recurrent earnings in such a very difficult environment.
Industry Trends
During the fourth quarter of 2012, the slowdown in world economy eased compared with previous quarters, although, as has been explained in Relevant Events, this more positive mood is not applicable to all regions.
Against this background, our competitors have reacted by focusing on their core products and markets, reducing costs, restricting lending and cutting back on operations with high capital consumption products.
BBVA has continued to show high resilience in earnings from CIB thanks to its customer-centric and diversified business model, greater efficiency and cost control, and prudent risk management.
Unless indicated otherwise, all comments below on percentage changes refer to constant exchange rates, with the aim of providing a better understanding of the performance of BBVA’s wholesale business.
Income statement
(Million euros)
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|
Corporate & Investment Banking |
|
2012 |
Δ% |
Δ% (1) |
2011 |
| Net interest income |
1,713 |
9.3 |
7.1 |
1,567 |
| Net fees and commissions |
713 |
11.9 |
10.4 |
637 |
| Net trading income |
274 |
36.6 |
27.6 |
201 |
| Other income/expenses |
67 |
(12.1) |
(9.2) |
76 |
| Gross income |
2,767 |
11.6 |
9.2 |
2,481 |
| Operating costs |
(889) |
5.1 |
3.5 |
(846) |
| Personnel expenses |
(498) |
1.6 |
0.6 |
(490) |
| General and administrative expenses |
(375) |
7.5 |
5.1 |
(349) |
| Deprecation and amortization |
(16) |
130.1 |
125.4 |
(7) |
| Operating income |
1,878 |
14.9 |
12.1 |
1,635 |
| Impairment on financial assets (net) |
(191) |
114.2 |
113.2 |
(89) |
| Provisions (net) and other gains (losses) |
(31) |
126.3 |
120.2 |
(14) |
| Income before tax |
1,655 |
8.1 |
5.4 |
1,532 |
| Income tax |
(479) |
13.9 |
10.9 |
(421) |
| Net income |
1,176 |
5.9 |
3.3 |
1,111 |
| Non-controlling interests |
(127) |
56.5 |
44.0 |
(81) |
| Net attributable profit |
1,049 |
1.9 |
(0.1) |
1,030 |
(1) At constant exchange rates
Balance sheet
(Million euros)
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|
Corporate & Investment Banking |
|
31-12-12 |
Δ% |
Δ% (1) |
31-12-11 |
| Cash and balances with central banks |
13,029 |
(1.2) |
(1.1) |
13,187 |
| Financial assets |
83,867 |
12.5 |
11.3 |
74,518 |
| Loans and receivables |
59,264 |
(14.6) |
(14.9) |
69,382 |
| Loans and advances to customers |
48,592 |
(16.2) |
(16.6) |
57,963 |
| Loans and advances to credit institutions and other |
10,671 |
(6.5) |
(6.1) |
11,418 |
| Inter-area positions |
14,974 |
88.1 |
87.6 |
7,960 |
| Tangible assets |
41 |
38.6 |
38.5 |
29 |
| Other assets |
3,396 |
28.6 |
28.4 |
2,641 |
| Total assets/Liabilities and equity |
174,572 |
4.1 |
3.4 |
167,717 |
| Deposits from central banks and credit institutions |
68,835 |
12.8 |
11.6 |
61,030 |
| Deposits from customers |
36,442 |
(11.9) |
(12.7) |
41,387 |
| Debt certificates |
(228) |
226.1 |
226.1 |
(70) |
| Subordinated liabilities |
1,655 |
(26.5) |
(27.3) |
2,250 |
| Inter-area positions |
- |
- |
- |
- |
| Financial liabilities held for trading |
56,201 |
13.7 |
13.6 |
49,429 |
| Other liabilities |
6,290 |
(32.4) |
(32.3) |
9,305 |
| Economic capital allocated |
5,378 |
22.6 |
22.1 |
4,386 |
(1) A tipo de cambio constantes.
CIB. Operating income
(Million euros at constant exchange rates)
(1) At current exchange rates: +14.9%.
CIB. Net attributable profit
(Million euros at constant exchange rates)
(1) At current exchange rates: +1.9%.
