Annual report
PRESENTATION
Vitoria-Gasteiz, April 2010
The year 2009 was one of intensive and permanent change and among the lessons learned it is worth mentioning the fact that the system's financial stability was by no means guaranteed either on an international level or on a more local level.
Few could have anticipated the intensity, impact, length or consequence of a crisis which began in 2008 and continued through into 2009, affecting both the world of finance and the economies of companies, families, institutions, consumers and investors.
We have gone through an economic tsunami with its epicentre at the very heart of the financial system.
Massive, coordinated intervention on a scale unparalleled in modern history was required by economic and monetary authorities in order to avoid the collapse of the international system.
This whirlwind has cast doubt on the international, financial architecture, unleashing a process of reflection and reordering which has remained in full effect.
Recent history has borne witness to the need for examination of the basics of the regulatory system and for prudential supervision in an attempt to resolve aspects such as the solvency and liquidity of financial institutions.
Accordingly, initiatives were introduced such as the creation of the European Systemic Risk Board, and European authorities covering banking, insurance and pensions, and securities and markets.
Thanks to the joint efforts of the economic and monetary authorities of the main economies, the first signs of recovery from the crisis appeared in the latter part of the year but at different rates between developed and emerging countries.
Despite the difficulties described and in terms of the way the sector as a whole has evolved, the Basque-Navarre Savings Banks' line of action in 2009 must once again be regarded as satisfactory and positive.
The member institutions have continued their work of financing productive investments, housing and consumption in general with credit totalling 57,388 million euros by the end of the financial year, 1.3% more than in 2008.
Total commercial resources administered amounted to 63,410 million euros and this in turn represented an increase of 3.7%.
The Savings Banks' own resources totalled 7,339 million euros, after a 4.9% consolidation, which exemplified the capitalization effort made by the member saving banks to protect their solvency, with their coefficient standing at 17% which was a lot higher than the sector average. The default index, meanwhile, was one of the lowest of the Spanish system at 2.42% and the coverage rate stood at 83.8%. The results obtained revealed the progression of average total assets on interest margins and gross margins.
Allocation of provisions was also high yet cautious, resulting in a pre-tax result of 576 million euros, which was 9.2% lower than the previous financial year. This did not, however, prevent the Federation Savings Banks from continuing with their social welfare work programme with an allocation of 213.5 million euros, an almost identical figure to that of the previous financial year despite the crisis currently faced.
We also wanted to make our small contribution to the reflection about the need for transformation and transition with a seminar organized within the framework of the 22nd University of the Basque Country Summer School which was followed by the publication of a new edition of the Ekonomi Gerizan series entitled "Global crisis: towards a new economic and social model".
I would like to look to the future with optimism and focus on the guiding principles of our member institutions which have enabled us to maintain and consolidate our leading position in promoting and developing local areas and satisfying the needs of our clients and society as a whole through the social welfare work that we carry out.
The financial system faces enormous challenges and these must be contemplated from a long-term perspective, resisting the temptation to apply short-term measures and from a firm pledge of our continued commitment to making our institutions as competitive as possible to consolidate their position in the years to come.
Mario Fernández
CHAIRMAN
