Annual report
SOCIAL DIMENSION
At such unpredictable times as the present in which the linking of legal regulations is radically transforming the financial system and reforming the legislative framework of the Savings Banks, the elements connected with the social perspective such as the social welfare work may also be compromised.
As with the dividends of shareholders, the ultimate owners of public limited companies, or the cooperative income in favour of cooperative shareholders of credit cooperatives, the Savings Banks' social orientation materialises in their social welfare work. The funding for these social activities comes mainly or almost entirely from the obligatory contributions which the Savings Banks are legally bound to make at the end of each financial year, once corresponding taxes on profits have been settled.
One special feature which differentiates this social welfare work activity is that it benefits all of society without exclusion and therefore embodies the clear social vocation and orientation of the savings banks. These activities cover a wide spectrum of initiatives and fields, extending from education and culture to social and healthcare, and include historic and cultural heritage support initiatives in their territories of origin.
Contrary to what is commonly thought, the Savings Banks' social vocation is perfectly compatible with the competition principle to which these institutions are subject in their daily work as financial intermediaries and service providers for their customers.
Correspondingly, when it comes to striving for future survival and to increasing their effectiveness and efficiency vis-à-vis maintaining their competitive position, a Savings Bank shares the same profit maximization objectives as other institutions, the only difference being the criteria followed when they are distributed, with the corresponding taxes being ploughed back into society and their efforts directed towards maintaining the quintessential feature of their social activities.
The social activity developed by all the Federation Savings Banks is an expression of their commitment to territorial development and to the establishment of the foundations for the activities carried out. This important activity is underdertaken under three different lines of action: the savings banks' own social welfare work programme, social welfare work in collaboration with others, and social welfare work for others. The first refers to those actions carried out directly by the savings banks, the second includes work in conjunction with other entities or institutions, and, finally, the third covers funding for social projects developed by other institutions.
It is important to mention that the Savings Banks' own social welfare work programme is the most important both in quantitative and qualitative terms, without undermining the importance of the other two options. In 2010, the Basque-Navarre Savings Banks' social welfare work fund amounted to the value of 450.4 million €. The contribution made to the social welfare work in the 2010 financial year by the Basque-Navarre Savings Banks stood at 188.6 million €, which was -11.7% down on the previous financial year (213.5 million €).
Despite the delicate economic and financial situation, the savings banks' contribution to their social welfare work programme did not fall as much as other institutions and this was testament to their local social commitment. Fixed asset contributions represented 8.8% of the total and were down by -70.2%. There was an important increase in contributions destined to covering maintenance expenses (9%), with these expenses representing 91.2% of the total.
The contribution made by the Basque-Navarre Savings Banks to social welfare work in terms of the aggregate number of people living in the ACBC and Navarre or the "social dividend" for each and every inhabitant amounted to 66.9 euros per person.
From a structural point of view, there was little difference in the way funds were allocated to the different social areas in relation to the previous financial year. Correspondingly, the area of social and healthcare was the main destination for funding (116.2 million €) with the allocation of 48.3% of funds. This was followed by Culture and Leisure with 77.3 million €, which represented 32.2% of the total. The third most important area was Education and Research activities which absorbed 31.4 million € (13.1%). Finally, Natural, Artistic and Historical Heritage maintenance and promotion received 15.2 million € (6.4% of the total).
Regarding the type of project developed, there was a contraction in all modes, with joint work falling by -23.8% to reach the total of 65.4 million €. Within this, there was a particular contraction of fixed-asset investment (-94.8%) which fell to 1.2 million €, against the slight increase in maintenance expenses (2.5%) which totalled 64.1 million €. There was a -3.5% contraction in the savings banks' own social welfare work to reach 123.3 million €. Within this, fixed-asset investment with 15.4 million € fell by -52.7%; expenses totalled 107.8 million € after increasing by 13.3%.
A total of 751 people were involved in the social welfare work activities of the Basque-Navarre Savings Banks which was 15 fewer than previously.
