January-December 2012

Retail and Commercial Banking

Within this unit, Retail Banking manages a loan book of €96,655m, 5.4% down on the figure in December 2011, and on-balance-sheet customer deposits totaling €85,970m, i.e. an 11.3% increase over the same period.

In a very difficult economic environment, BBVA sees the restructuring process underway in the Spanish financial system as an opportunity and is continuing to work to increase its customer base. To do so, it is focusing on a personalized range of liability products, with additional advantages linked to customer loyalty, and on a competitive offer of current and savings accounts.

The most notable commercial actions carried out by Retail Banking in the fourth quarter of 2012 aimed at ensuring adequate management of liability redemptions, include:

  • The launch of the “Adiós Comisiones” campaign, which eliminates account fees charged to customers whose pensions or salaries are paid directly into their accounts, offers free debit or credit cards, and also offers additional benefits to customers in other financial products as a reward for their loyalty to the Bank.
  • The boost to the deposits “Depósitos 12, 18 y 24”, which reward a closer relationship of customers with BBVA, measured by volume of funds, or “Depósito UNO”, which directly associates customer loyalty with the yield obtained. All this has resulted in successful levels of renewal rates of over 88%.
  • The year’s second “Quincena de Cuentas Abiertas” (Open Account Fortnight), which has attracted €561m in balances and given away 195,919 gifts. Of these, 13,722 were given to new customers whose salaries and pensions are paid directly into their accounts, 8,629 for opening and/or making contributions to pension plans and 4,037 for new insurance contracts.

Within Retail Banking, BBVA has presented its Wealth Management customers with the exclusive community “The Family Wealth Community”, an online platform that offers a unique and private service, with up-to-date information prepared by specialists on topics that have the most relevance for their interests. This is part of the Bank’s firm commitment to innovation, the use of new technologies, multi-channel banking and new digital media that enable a closer relationship with the customer.

The Corporate and Business Banking (CBB) network, which manages a loan book of €85,650m (down 2.9% year-on-year) and on-balance-sheet funds of €22,470m (up 5.2%), has also been closely focused on retention and gathering of customer funds as a way of consolidating and boosting customer loyalty. To do so, it has offered a full range of products with competitive remuneration and great flexibility, which has made it possible to gather over €12,000m in time deposits over the last quarter of the year.

BBVA has confirmed its leading role in the distribution of credit lines under preferential conditions with the signing of the ICO-2012 Agreement, with lines such as “Investment”, “Internationalization”, “Liquidity”, “Entrepreneurs”, “Home Restoration”, “SGR Guarantee” and others intended for segments such as foreign trade, the domestic market and tourism. In addition, BBVA has also signed the new lines “Film Production”, “Emprendetur” and “Lorca Earthquake and Isla del Hierro”. Finally, BBVA has signed a new line for local administrations in order to provide them with liquidity for paying the outstanding debts they have with businesses and self-employed workers.

The new “Smart Business” campaign has been launched for SMEs and self-employed workers, aimed at attracting new customers. Working with POS terminals, it offers a number of special services such as point-of-sale finance, with the possibility of advancing part of the revenues collected by the terminals. In the present adverse environment, an average annual increase of 6% has been achieved in POS terminal revenues from the SME segment.

In the corporate segment, within the “cross-border” plan designed to boost transactions with domestic customers abroad, transactions have been carried out in Mexico, the United States and Peru, which have contributed significant earnings to this segment. The cycle of conferences “Growing Abroad”, organized by the international department, has continued. It is designed to support Spanish companies in their international expansion process as a means for economic growth and to inform them of the opportunities that arise in emerging economies such as Turkey.

In the institutional segment, work is being carried out to advise the Ministry of Economy and Competitiveness and the Ministry of Finance and Public Administrations in creating and developing the Regional Liquidity Fund (FLA). The Spanish banking system will participate with €8,000m, of which €1,600m will come from BBVA.

Finally, BBVA Insurance began marketing a new life insurance catalog in the last quarter of the year which enables a high degree of customization, as it can be adapted to the type of protection each customer needs, thanks to the modular nature of the product in terms of arranging insurance and the flexibility in adapting it later.