This unit handles the origination, structuring, distribution and risk management of market products, which are placed through the trading floors in Europe, Asia and the Americas.
Global Markets has successfully:
- Taken advantage of market opportunities in a complicated 2009. In terms of customers, business with institutional investors is again growing and the corporate segment is buoyant. The unit successfully concluded a series of proprietary trading opportunities in the first half, especially with interest-rates. In the day-to-day business, there was an extraordinary recovery of the credit business on all trading floors and fixed-income related to customers’ risk hedging.
- Earned the leadership position in equity brokerage in the stock market in Spain with a market share of 15.0% in December 2009. The second-ranked competitor has a market share of less than 10.4%.
- Become a leader in product innovation in Latin America, with the launch of a new exchange-traded fund (ETF) called MEXTRAC on the Mexican stock exchange. Its portfolio is made up of the 20 stocks on the Dow Jones Mexico Titans index.
- Transformed into an increasingly international and geographically-diversified business. This is reflected by the double-digit growth at all the trading floors in Europe, Asia, Mexico and South America. In addition cross-border business continues to improve thanks to the global nature of the products and customer service, and to the close cooperation between teams.
- Achieved record earnings and efficiency. Gross income for the year in Europe, Asia and New York was up 22.9% to €654m, operating income rose 36.3% to €427m and net attributable profit jumped 146.6% to €318m. These figures are the result of a superb year at Global Markets, recurrent earnings despite the difficult environment and proper cost controls. These achievements led to an improvement in the cost/income ratio, which now stands at 34.8%, notably lower than 2008 (41.1%), making the unit one of the most efficient in the whole industry.
- Consolidated its position in Asia, a market that has recorded high growth in commercial activity, with triple digit growth in underlying assets and in customer segments, as indicated in the chart enclosed: