The Group’s cumulative net interest income as of December 2012 amounted to €15,122m. This is a rise of 0.8% on the figure for the previous quarter and 15.0% compared with the same period in the previous year. This rise takes place in virtually all geographical areas. It is due, once again, to the maintenance of customer spreads and positive levels of activity in emerging economies. By business areas it is worth highlighting:

• Resilience in Spain, in a context of lower volumes, low interest rates and high competition for customer fund gathering thanks to BBVA’s relatively better liquidity and solvency position. Overall, this area generated cumulative net interest income of €4,836m, with a rise of 10.1% compared with the figure for the same period in 2011.
• Eurasia grew 10.8% quarter-on-quarter and 5.5% year-on-year, to an accumulated total of €847m over the year. The incorporation of Garanti on March 22, 2011, the strong activity with retail customers and the favorable trend in customer spreads, particularly in Turkey (largely due to the reduction in the cost of liabilities), are behind this good performance.
• Mexico reported net interest income of €4,164m in 2012, 7.8% higher than in 2011 at constant exchange rates (up 4.4% in the quarter). The increased activity and adequate price management have enabled BBVA to offset the impact of interest rates, which are at record lows.
• Net interest income in South America continues to perform strongly, benefiting from buoyant activity and the maintenance of customer spreads. Overall, the cumulative figure for the area as of December 2012 is €4,291m, up 25.6% on the same period the previous year (excluding the exchange-rate effect). Over the last three months, growth has been 12.8%.
• In the United States, net interest income continued to be negatively affected by the Guaranty run-off, lower business volume in CIB, and the current environment of low interest rates with a practically flat curve. In contrast, the increase in the volume of loans and the year-on-year reduction in the cost of deposits had a positive impact. As a result, this heading stood at €1,682m in 2012, down 4.7% at constant exchange rates (with the fourth-quarter figure down 5.4% compared with the previous quarter).

Breakdown of yields and costs

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	4Q12		3Q12		2Q11		1Q11
	% of ATA	% yield/ Cost	% of ATA	% yield/ Cost	% of ATA	% yield/ Cost	% of ATA	% yield/ Cost
Cash and balances with central banks	4.8	1.19	4.2	0.82	3.7	0.98	4.0	0.94
Financial assets and derivatives	26.9	2.89	26.8	2.85	27.1	2.75	26.3	2.99
Loans and advances to credit institutions	4.0	1.58	4.4	1.80	4.4	1.90	4.2	2.01
Loans and advances to customers	56.5	5.83	57.1	5.60	57.9	5.75	58.6	5.72
Euros	34.2	3.20	34.4	3.23	34.8	3.43	36.0	3.52
Domestic	28.2	3.71	28.2	3.78	29.0	3.84	29.9	3.85
Other	6.1	0.85	6.3	0.77	5.8	1.35	6.1	1.91
Foreign currencies	22.3	9.88	22.6	9.20	23.1	9.24	22.6	9.23
Other assets	7.8	0.58	7.5	0.33	6.9	0.47	6.9	0.39
Total assets	100.0	4.24	100.0	4.10	100.0	4.23	100.0	4.29
Deposits from central banks and credit institutions	17.0	2.02	19.6	1.90	17.5	2.26	14.8	2.50
Deposits from customers	45.1	1.89	43.9	1.82	45.2	1.80	47.5	1.85
Euros	23.3	1.39	22.4	1.25	23.1	1.31	25.6	1.39
Domestic	15.4	1.58	14.7	1.47	15.3	1.57	15.8	1.68
Other	7.9	1.04	7.6	0.83	7.8	0.81	9.8	0.92
Foreign currencies	21.8	2.41	21.6	2.41	22.1	2.31	22.0	2.39
Debt certificates and subordinated liabilities	16.8	2.69	15.8	2.69	16.6	2.68	17.6	2.76
Other liabilities	14.1	1.14	13.8	0.89	13.8	0.70	13.3	1.03
Equity	7.0	-	6.8	-	6.9	-	6.9	-
Total liabilities and equity	100.0	1.81	100.0	1.72	100.0	1.75	100.0	1.87
Net interest income/Average total assets (ATA)		2.43		2.38		2.47		2.42

Net interest income

(Million euros)

(1) At constant exchange rates +11.0%.

Net interest income/ATA BBVA Group

(Percentage)