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Alfredo Sáenz Abad - Second Vice Chairman, Chief Executive Officer, Member of Executive Committee, Member of International Committee and Member of Technology, Productivity & Quality Committee
José Antonio Álvarez - Executive Vice President of Financial and Executive Vice President of Investor Relations Division
Stephen Jones - Chief Financial Officer
PresentationAlfredo Sáenz Abad
[Spanish] Good morning. We're going to begin the presentation of our -- the results for the first half of the year. And as we usually do, I will be talking about the main aspects for the first half of the results of the group, and then José Antonio Alvarez will look at the business areas in more detail. And lastly, I will close with my conclusions.
The first thing that I should point out is that the economic context continues to be very difficult with a great deal of uncertainty in the global deterioration of confidence. By areas, renewed tensions in Europe and the market's lack of confidence reflected a sharp increase in the risk of -- in the risk premiums of peripheral countries such as Spain and Italy.
The U.S. still performs better. Its economy is going moderately, and Latin America remains strong despite the international context. In this context, our strategy is to strengthen the balance sheet, supported by our capacity to generate earnings.
The 3 key elements of the quarter are: First, the strength of the upper part of the income statement, pre-provision profit was EUR 12.5 billion, after again surpassing EUR 6.2 billion in the quarter. Second, in the quarter we made provisions for real estate in Spain of EUR 2.78 billion. Business took coverage to 46% of the total problematic real estate balances and represented more than 70% of the requirements of the Royal Decree. Third, we combined these provisions with the capital ratio above the 9% required under EBA criteria and core capital BIS II ratio above 10%. Fourth, we continued strengthening the balance sheet. In liquidity, we kept the group's loans-to-deposit ratio at under 120%, and in Spain, it was 112% after improving the commercial capture in the year. And we continued to compare very well in credit quality in the main areas where we operate. Recurrent profit for the first half was EUR 3.008 billion in the first half of 2012 and EUR 1.7 billion after provision.