Annual report 2009 - Santander

92Gross customer loansBillion euros and % variation Dec 09 / Dec 08Gross customer loans% o/ operating areas. December 2009580639700709686700+9.6%*Other Latin America 7%Brazil 8%Sovereign 5%Spain 35%Dec’07 Dec’08 Mar’09 Jun’09 Sep’09 Dec’09* Excluding exchange rate impact: +5.1%United Kingdom 33%Other Europe 12%Grupo Santander. Balance sheetActivity reflected the current market context:• Lower demand for loans intensified: lending increased9% (-2% on a like-for-like basis and excluding theexchange-rate impact).• Faster growth in deposits: they rose 21% (+8% on a likefor-likebasis and excluding the exchange-rate impact).• Adequate financing structure: ratio of basic financingof 76%.• Generation of capital helped increase core capital to8.6%.• Further rise in shareholders’ equity per share, to EUR8.04.Total managed funds at the end of 2009 amounted to EUR1,245,420 million, of which EUR 1,110,529 million (89%) wereon-balance sheet and the rest off-balance sheet mutual andpension funds and managed portfolios.In order to correctly interpret this information, it is necessary totake into account two positive factors. First, a net perimeter risefrom the incorporation to the Group of Sovereign and theconsumer business units acquired, which more than offset thereduction in balances from the sale of our bank in Venezuela.Second, the appreciation against the euro on the basis ofperiod-end exchange rates of 29% for the Brazilian real, 7% forsterling, 2% for the Mexican peso and 21% for the Chileanpeso. The dollar, however, depreciated 3%.The positive impact of both factors on the changes in customerbalances was 11 p.p. positive on loans and 10 p.p. on customerfunds.LendingThe Group’s net lending amounted to EUR 682,551 million, 9%higher than in 2008. Deducting the perimeter effects andexchange rates, there was a fall of 2%.Lending to the public sector increased 28% and loans to otherresident sectors dropped 4%, in line with the deceleration in themarket.Customer loansMillion eurosVariation2009 2008 Amount (%) 2007Public sector 9,803 7,668 2,134 27.8 5,633Other residents 222,355 230,783 (8,428) (3.7) 231,681Commercial bills 11,134 14,874 (3,740) (25.1) 18,248Secured loans 125,397 123,566 1,830 1.5 123,371Other loans 85,824 92,343 (6,519) (7.1) 90,062Non-resident sector 468,267 400,903 67,364 16.8 342,479Secured loans 286,381 229,761 56,620 24.6 199,316Other loans 181,886 171,142 10,743 6.3 143,163Gross customer loans 700,424 639,354 61,070 9.6 579,794Loan-loss allowances 17,873 12,466 5,407 43.4 8,695Net customer loans 682,551 626,888 55,662 8.9 571,099Pro memoria: Doubtful loans 24,027 13,968 10,059 72.0 6,070Public sector 18 1 16 — 1Other residents 9,898 6,208 3,690 59.4 1,812Non-resident sector 14,111 7,759 6,352 81.9 4,257Annual Report 2009Economic and Financial Review