2012 was a year of change for Mexico. Investment continued to take advantage of market opportunities and thus maintain a sound financial position.

Net interest income in the area amounted to €4,164m, 7.8% up on 2011. Activity volume combined with good price management, have offset the impact of low interest rates throughout the year. As a result, and despite the interest rate environment abovementioned, profitability, calculated as the net interest income over average total assets, showed a stable trend. Income from fees and commissions increased by 4.0% to €1,087m, due to increased transactions by customers with credit and debit cards, and a higher volume of assets under management in mutual funds. In contrast, NTI registered a fall because of the comparison with the high level of income in 2011. The trend in other income and expenses continued to be positive, thanks above all to the favorable performance of the insurance business. As a result of the above, gross income was €5,758m, 5.8% up on the figure for 2011.

Operating expenses in 2012 are up 9.7% to €2,172m. This increase is the result of the investment in technology and infrastructure over recent years. The number of ATMs continued to grow over the year to 7,733 units, while POS terminals increased by 9,176 units over the last twelve months. With these figures for revenue and costs, the efficiency ratio remains one of the best in the Mexican system, at 37.7% at the close of 2012. Operating income totaled €3,586m, 3.6% up on the figure for 2011. Excluding more volatile revenues from NTI, operating income increased over the year by 6.6%.

Impairment losses on financial assets increased in line with activity in the area, at 9.4% year-on-year to €1,320m. As a result, the cumulative risk premium has been stable on the figure for last year, at 3.49%. The NPA ratio closed as of 31-Dec-2012 at 3.8% and the coverage ratio at 114%.

As a result of the above, the net attributable profit increased by 4.0% on the 2011 figure to €1,821m.