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Washington, D.C. 20549
o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR(g) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
OR | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2010 | ||
OR | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to | ||
OR | ||
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
Date of event requiring this shell company report |
(Jurisdiction of incorporation or organization)
48005 Bilbao
Spain
Paseo de la Castellana, 81
28046 Madrid
Spain
Telephone number +34 91 537 7000
Fax number +34 91 537 6766
(Name, Telephone,E-mail and /or Facsimile Number and Address of Company Contact Person)
Title of Each Class | Name of Each Exchange on Which Registered | |
American Depositary Shares, each representing | New York Stock Exchange | |
the right to receive one ordinary share, | ||
par value €0.49 per share | ||
Ordinary shares, par value €0.49 per share | New York Stock Exchange* | |
Guarantee of Non-Cumulative Guaranteed | New York Stock Exchange** | |
Preferred Securities, Series C, liquidation preference $1,000 each, of | ||
BBVA International Preferred, S.A. Unipersonal |
* | The ordinary shares are not listed for trading, but are listed only in connection with the registration of the American Depositary Shares, pursuant to requirements of the New York Stock Exchange. | |
** | The guarantee is not listed for trading, but is listed only in connection with the registration of the corresponding Non-Cumulative Guaranteed Preferred Securities of BBVA International Preferred, S.A. Unipersonal (a wholly-owned subsidiary of Banco Bilbao Vizcaya Argentaria, S.A.). |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
U.S. GAAP o | International Financial Reporting Standards as Issued by the International Accounting Standards Board o | Other þ |
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• | “BBVA”,“Bank”, the“Company” or“Group” means Banco Bilbao Vizcaya Argentaria, S.A. and its consolidated subsidiaries unless otherwise indicated or the context otherwise requires. | |
• | “BBVA Bancomer” means Bancomer S.A. and its consolidated subsidiaries, unless otherwise indicated or the context otherwise requires. | |
• | “BBVA Compass” means Compass Bancshares, Inc. and its consolidated subsidiaries, unless otherwise indicated or the context otherwise requires. | |
• | “Consolidated Financial Statements” means our audited consolidated financial statements as of and for the years ended December 31, 2010, 2009 and 2008 prepared in accordance with the International Financial Reporting Standards adopted by the European Union (“EU-IFRS”) required to be applied under the Bank of Spain’s Circular 4/2004. | |
• | “Latin America” refers to Mexico and the countries in which we operate in South America and Central America. |
• | “Item 3. Key Information — Risk Factors”; | |
• | “Item 4. Information on the Company”; | |
• | “Item 5. Operating and Financial Review and Prospects”; and | |
• | “Item 11. Quantitative and Qualitative Disclosures about Market Risk” |
• | general political, economic and business conditions in Spain, the European Union (“EU”), Latin America, the United States and other regions, countries or territories in which we operate; | |
• | changes in applicable laws and regulations, including taxes; | |
• | the monetary, interest rate and other policies of central banks in Spain, the EU, the United States, Mexico and elsewhere; | |
• | changes or volatility in interest rates, foreign exchange rates (including the euro to U.S. dollar exchange rate), asset prices, equity markets, commodity prices, inflation or deflation; | |
• | ongoing market adjustments in the real estate sectors in Spain, Mexico and the United States; |
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• | the effects of competition in the markets in which we operate, which may be influenced by regulation or deregulation; | |
• | changes in consumer spending and savings habits, including changes in government policies which may influence investment decisions; | |
• | our ability to hedge certain risks economically; | |
• | the success of our acquisitions (including the acquisition of a shareholding in Türkiye Garanti Bankası A.Ş., as described below), divestitures, mergers and strategic alliances; | |
• | our success in managing the risks involved in the foregoing, which depends, among other things, on our ability to anticipate events that cannot be captured by the statistical models we use; and | |
• | force majeureand other events beyond our control. |
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• | Average balances, when used, are based on the beginning and the month-end balances during each year. We do not believe that such monthly averages present trends that are materially different from those that would be presented by daily averages. | |
• | The book value of BBVA’s ordinary shares held by its consolidated subsidiaries has been deducted from equity. | |
• | Unless otherwise stated, any reference to loans refers to both loans and leases. | |
• | Interest income figures include interest income on non-accruing loans to the extent that cash payments have been received in the period in which they are due. | |
• | Financial information with respect to subsidiaries may not reflect consolidation adjustments. | |
• | Certain numerical information in this Annual Report may not sum due to rounding. In addition, information regardingperiod-to-period changes is based on numbers which have not been rounded. |
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
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ITEM 3. | KEY INFORMATION |
A. | Selected Consolidated Financial Data |
For Year Ended December 31, | ||||||||||||||||||||
EU-IFRS(*) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
(In millions of euros, except per share/ADS data (in euros)) | ||||||||||||||||||||
Consolidated Statement of Income data | ||||||||||||||||||||
Interest and similar income | 21,134 | 23,775 | 30,404 | 26,176 | 20,042 | |||||||||||||||
Interest and similar expenses | (7,814 | ) | (9,893 | ) | (18,718 | ) | (16,548 | ) | (11,904 | ) | ||||||||||
Net interest income | 13,320 | 13,882 | 11,686 | 9,628 | 8,138 | |||||||||||||||
Dividend income | 529 | 443 | 447 | 348 | 380 | |||||||||||||||
Share of profit or loss of entities accounted for using the equity method | 335 | 120 | 293 | 241 | 308 | |||||||||||||||
Fee and commission income | 5,382 | 5,305 | 5,539 | 5,603 | 5,133 | |||||||||||||||
Fee and commission expenses | (845 | ) | (875 | ) | (1,012 | ) | (1,043 | ) | (943 | ) | ||||||||||
Net gains(losses) on financial assets and liabilities | 1,441 | 892 | 1,328 | 1,545 | 1,261 | |||||||||||||||
Net exchange differences | 453 | 652 | 231 | 411 | 376 | |||||||||||||||
Other operating income | 3,543 | 3,400 | 3,559 | 3,589 | 3,413 | |||||||||||||||
Other operating expenses | (3,248 | ) | (3,153 | ) | (3,093 | ) | (3,051 | ) | (2,923 | ) | ||||||||||
Gross income | 20,910 | 20,666 | 18,978 | 17,271 | 15,143 | |||||||||||||||
Administration costs | (8,207 | ) | (7,662 | ) | (7,756 | ) | (7,253 | ) | (6,330 | ) | ||||||||||
Depreciation and amortization | (761 | ) | (697 | ) | (699 | ) | (577 | ) | (472 | ) | ||||||||||
Provisions (net) | (482 | ) | (458 | ) | (1,431 | ) | (235 | ) | (1,338 | ) | ||||||||||
Impairment losses on financial assets (net) | (4,718 | ) | (5,473 | ) | (2,941 | ) | (1,903 | ) | (1,457 | ) | ||||||||||
Net operating income | 6,742 | 6,376 | 6,151 | 7,303 | 5,545 | |||||||||||||||
Impairment losses on other assets (net) | (489 | ) | (1,618 | ) | (45 | ) | (13 | ) | (12 | ) | ||||||||||
Gains (losses) on derecognized assets not classified as non-current asset held for sale | 41 | 20 | 72 | 13 | 956 | |||||||||||||||
Negative Goodwill | 1 | 99 | — | — | — | |||||||||||||||
Gains (losses) in non-current assets held for sale not classified as discontinued operations | 127 | 859 | 748 | 1,191 | 541 | |||||||||||||||
Income before tax | 6,422 | 5,736 | 6,926 | 8,494 | 7,030 | |||||||||||||||
Income tax | (1,427 | ) | (1,141 | ) | (1,541 | ) | (2,079 | ) | (2,059 | ) | ||||||||||
Income from continuing transactions | 4,995 | 4,595 | 5,385 | 6,415 | 4,971 | |||||||||||||||
Income from discontinued transactions (net) | — | — | — | — | — | |||||||||||||||
Net income | 4,995 | 4,595 | 5,385 | 6,415 | 4,971 | |||||||||||||||
Net income attributed to parent company | 4,606 | 4,210 | 5,020 | 6,126 | 4,736 | |||||||||||||||
Net income attributed to non-controlling interests | 389 | 385 | 365 | 289 | 235 | |||||||||||||||
Per share/ADS(1) Data | ||||||||||||||||||||
Net operating income(2) | 1.79 | 1.71 | 1.66 | 2.03 | 1.63 | |||||||||||||||
Numbers of shares outstanding (at period end) | 4,490,908,285 | 3,747,969,121 | 3,747,969,121 | 3,747,969,121 | 3,551,969,121 | |||||||||||||||
Income attributed to parent company(3)(4) | 1.17 | 1.08 | 1.31 | 1.64 | 1.34 | |||||||||||||||
Dividends declared(4) | 0.270 | 0.420 | 0.501 | 0.733 | 0.637 |
(*) | EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004. | |
(1) | Each American Depositary Share (“ADS”) represents the right to receive one ordinary share. | |
(2) | Calculated on the basis of the weighted average number of BBVA’s ordinary shares outstanding during the relevant period excluding the weighted average of treasury shares during the period (3,762 million, 3,719 million, 3,706 million, 3,594 million and 3,406 million shares in 2010, 2009, 2008, 2007 and 2006, respectively). | |
(3) | Calculated on the basis of the weighted average number of BBVA’s ordinary shares outstanding during the relevant period including the average number of estimated shares to be converted and, for comparative purposes, a correction factor to account for the capital increase carried out in November 2010, and excluding |
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the weighted average of treasury shares during the period (3,983 million, 3,899 million, 3,846 million, 3,730 million and 3,535 million shares in 2010, 2009, 2008, 2007 and 2006, respectively). See Note 5 to the Consolidated Financial Statements. | ||
(4) | At the date of the issuance of these financial statements, the scrip dividend (“Dividendo opción”) mentioned in Item 4, Item 8 and Note 4 to the Consolidated Financial Statements is not distributed. Therefore, the conditions to restate the Earning Per Share under IAS 33 and ASC260 are not met. |
As of and for Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(In millions of euros, except percentages) | ||||||||||||||||||||
Consolidated balance sheet data | ||||||||||||||||||||
Total assets | 552,738 | 535,065 | 542,650 | 501,726 | 411,663 | |||||||||||||||
Common stock | 2,201 | 1,837 | 1,837 | 1,837 | 1,740 | |||||||||||||||
Loans and receivables (net) | 364,707 | 346,117 | 369,494 | 337,765 | 279,658 | |||||||||||||||
Customer deposits | 275,789 | 254,183 | 255,236 | 219,610 | 186,749 | |||||||||||||||
Debt certificates and subordinated liabilities | 102,599 | 117,817 | 121,144 | 117,909 | 100,079 | |||||||||||||||
Non-controlling interest | 1,556 | 1,463 | 1,049 | 880 | 768 | |||||||||||||||
Total equity | 37,475 | 30,763 | 26,705 | 27,943 | 22,318 | |||||||||||||||
Consolidated ratios | ||||||||||||||||||||
Profitability ratios: | ||||||||||||||||||||
Net interest margin(1) | 2.38 | % | 2.56 | % | 2.26 | % | 2.09 | % | 2.06 | % | ||||||||||
Return on average total assets(2) | 0.89 | % | 0.85 | % | 1.04 | % | 1.39 | % | 1.26 | % | ||||||||||
Return on average equity(3) | 15.8 | % | 16.0 | % | 21.5 | % | 34.2 | % | 37.6 | % | ||||||||||
Credit quality data | ||||||||||||||||||||
Loan loss reserve | 9,473 | 8,805 | 7,505 | 7,144 | 6,424 | |||||||||||||||
Loan loss reserve as a percentage of total loans and receivables (net) | 2.60 | % | 2.54 | % | 2.03 | % | 2.12 | % | 2.30 | % | ||||||||||
Substandard loans(4) | 15,472 | 15,312 | 8,540 | 3,366 | 2,492 | |||||||||||||||
Substandard loans as a percentage of total loans and receivables (net)(4) | 4.24 | % | 4.42 | % | 2.31 | % | 1.00 | % | 0.89 | % |
(*) | EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004. | |
(1) | Represents net interest income as a percentage of average total assets. | |
(2) | Represents net income as a percentage of average total assets. | |
(3) | Represents net income attributed to parent company as a percentage of average equity. | |
(4) | As of December 31, 2010, 2009 and 2008, non-performing assets, which include substandard loans and other non-performing assets, amounted to €15,936 million, €15,928 million and €8,859 million, respectively. As of December 31, 2010, 2009 and 2008, the non-performing assets ratios (which we define as substandard loans and other non-performing assets divided by loans and advances to customers and contingent liabilities) were 4.1%, 4.3% and 2.3%, respectively. |
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As of and for Year Ended December 31, | ||||||||||||||||||||
U.S. GAAP Information(*) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
(In millions of euros, except per share/ADS data | ||||||||||||||||||||
(in euros) or as otherwise indicated) | ||||||||||||||||||||
Consolidates Statement of income data | ||||||||||||||||||||
Net income(1) | 4,688 | 4,210 | 4,435 | 5,698 | 5,212 | |||||||||||||||
Net income attributed to parent company | 4,299 | 3,825 | 4,070 | 5,409 | 4,972 | |||||||||||||||
Net income attributed to the non controlling interest | 389 | 385 | 365 | 289 | 240 | |||||||||||||||
Basic earnings per share/ADS(2)(3) | 1.140 | 1.028 | 1.098 | 1.505 | 1.460 | |||||||||||||||
Diluted earnings per share/ADS(2)(3) | 1.100 | 1.022 | 1.098 | 1.505 | 1.460 | |||||||||||||||
Dividends per share/ADS (in dollars)(2)(3)(4) | 0.372 | 0.586 | 0.652 | 1.011 | 0.807 | |||||||||||||||
Consolidated Balance sheet data | ||||||||||||||||||||
Total assets | 561,767 | 543,594 | 549,037 | 510,569 | 420,971 | |||||||||||||||
Total equity | 44,176 | 37,467 | 33,630 | 36,076 | 31,229 | |||||||||||||||
Basic shareholders’ equity per share/ADS(2)(3)(5) | 11.38 | 9.73 | 8.84 | 9.85 | 8.94 | |||||||||||||||
Diluted shareholders’ equity per share/ADS(2)(3)(5) | 11.38 | 9.73 | 8.84 | 9.85 | 8.94 |
(*) | For 2009, BBVA is availing itself of the accommodation in Item 17(c)(2)(iv) ofForm 20-F with respect to the application of IAS 21 for highly inflationary economies (Venezuela). Therefore, this reconciliation has been prepared in accordance with Item 18 ofForm 20-F which is different from that required by US GAAP. See Note 60 to our Consolidated Financial Statements for additional information. |
(1) | Includes “Net income attributed to parent company” and “Net income attributed to non controlling interest”. |
(2) | Calculated on the basis of the weighted average number of BBVA’s ordinary shares outstanding during the relevant period excluding the weighted average of treasury shares during the period. |
(3) | Each ADS represents the right to receive one ordinary share. |
(4) | Dividends per share/ADS are converted into dollars at the average exchange rate for the relevant period, calculated based on the average of the noon buying rates for euro from the Federal Reserve Bank of New York on the last date in respect of which such information is published of each month during the relevant period. |
(5) | At the date of the issuance of these financial statements, the scrip dividend (“Dividendo opción”) mentioned in Item 4, Item 8 and Note 4 to the Consolidated Financial Statements is not distributed. Therefore, the conditions to restate the Earning Per Share under IAS 33 and ASC260 are not met. |
Year Ended December 31 | Average(1) | |||
2006 | 1.2661 | |||
2007 | 1.3797 | |||
2008 | 1.4695 | |||
2009 | 1.3955 | |||
2010 | 1.3216 | |||
2011 (through March 25, 2011) | 1.3884 |
(1) | Calculated by using the average of the exchange rates on the last day of each month during the period. |
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Month Ended | High | Low | ||||||
September 30, 2010 | 1.3638 | 1.2708 | ||||||
October 31, 2010 | 1.4066 | 1.3688 | ||||||
November 30, 2010 | 1.4224 | 1.3036 | ||||||
December 31, 2010 | 1.3395 | 1.3089 | ||||||
January 31, 2011 | 1.3715 | 1.2944 | ||||||
February 28, 2011 | 1.3794 | 1.3474 | ||||||
March 31, 2011 (through March 25, 2011) | 1.4212 | 1.3813 |
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
D. | Risk Factors |
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• | department stores (for some credit products); | |
• | automotive finance corporations; | |
• | leasing companies; | |
• | factoring companies; | |
• | mutual funds; | |
• | pension funds; and | |
• | insurance companies. |
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ITEM 4. | INFORMATION ON THE COMPANY |
A. | History and Development of the Company |
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B. | Business Overview |
• | Spain and Portugal | |
• | Mexico | |
• | South America | |
• | The United States | |
• | Wholesale Banking and Asset Management | |
• | Corporate Activities |
• | The United States and Wholesale Banking & Asset Management (WB&AM). In order to give a global view of the Group’s business in the United States, we decided to include the New York branch activities, formerly |
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within WB&AM, in the United States area. This change is consistent with BBVA’s current method of reporting its business units |
• | South America and Corporate Activities. In 2009, when the Venezuelan economy was considered hyperinflationary for accounting purposes for the first time, this impact was registered under Corporate Activities. In 2010, an adjustment for the hyperinflation experienced in Venezuela has been recorded in the South America area which was also applied to the 2009 financial statements to maintain the figures of our business areas comparable. Therefore, the 2009 results of these business segments have been restated to make them comparable to their 2010 results. |
% of Net Income/(Loss) | ||||||||||||||||||||||||
Net Income/(Loss) Attributed | Attributed | |||||||||||||||||||||||
to Parent Company | to Parent Company | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2010 | |||||||||||||||||||
(In millions of euros) | (In percentage) | |||||||||||||||||||||||
Spain and Portugal | 2,070 | 2,275 | 2,473 | 45 | % | 54 | % | 49 | % | |||||||||||||||
Mexico | 1,707 | 1,357 | 1,930 | 37 | % | 32 | % | 38 | % | |||||||||||||||
South America | 889 | 780 | 727 | 19 | % | 19 | % | 14 | % | |||||||||||||||
The United States | 236 | (950 | ) | 308 | 5 | % | (23 | )% | 6 | % | ||||||||||||||
Wholesale Banking and Asset Management | 950 | 853 | 722 | 21 | % | 20 | % | 14 | % | |||||||||||||||
Subtotal | 5,852 | 4,315 | 6,160 | 127 | % | 103 | % | 123 | % | |||||||||||||||
Corporate Activities | (1,246 | ) | (105 | ) | (1,140 | ) | (27 | )% | (2 | )% | (23 | )% | ||||||||||||
�� | ||||||||||||||||||||||||
Income Attributed to the Parent Company | 4,606 | 4,210 | 5,020 | 100 | % | 100 | % | 100 | % | |||||||||||||||
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Net Interest Income | ||||||||||||
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2010 | ||||||||||
(In millions of euros) | ||||||||||||
Spain and Portugal | 4,675 | 4,910 | 4,784 | |||||||||
Mexico | 3,688 | 3,307 | 3,707 | |||||||||
South America | 2,495 | 2,566 | 2,149 | |||||||||
The United States | 1,794 | 1,679 | 1,471 | |||||||||
Wholesale Banking and Asset Management | 831 | 982 | 618 | |||||||||
Subtotal | 13,483 | 13,445 | 12,729 | |||||||||
Corporate Activities | (163 | ) | 437 | (1,043 | ) | |||||||
Net interest income | 13,320 | 13,882 | 11,686 | |||||||||
• | Loans and advances to customers were €200,930 million as of December 31, 2010, an increase of 0.9% from €199,190 million as of December 31, 2009. This amount is particularly relevant if we take into account the adverse economic environment in which it was generated, with weak consumption, stagnation of mortgage lending and gradual deleveraging of companies. In this context, mortgage lending in the household segment grew by 4.0% in 2010. In addition, exposure to sectors and products of greater risk declined in 2010. | |
• | Customers deposits were €103,469 million as of December 31, 2010 compared to €91,826 million as of December 31, 2009, an increase of 12.7%. During 2010, we attracted more than €12,000 million in customers deposits, which have a high level of stability and an average cost that is lower than the market (0.8% compared to the sector’s 1.4% in 2010). | |
• | Mutual fund assets under management were €21,455 million as of December 31, 2010, a decrease of 28.2% from €29,898 million as of December 31, 2009. The decrease is due to the increasing demand for other products, such as time deposits and the decreasing returns in the stock markets. The main decreases were related to those assets under management with lowest added value, such as short-term fixed-income, money market funds, long-term fixed-income and those that do not involve active management. | |
• | Pension fund assets under management were €9,986 million as of December 31, 2010, a decrease of 3.3% from €10,329 million as of December 31, 2009. |
• | Spanish Retail Network: manages individual customers, high net-worth individuals (private banking) and small companies and retailers in the Spanish market; | |
• | Corporate and Business Banking: manages business with small and medium enterprises (“SMEs”), large companies, institutions and developers in the Spanish market; and | |
• | Other units: |
• | Consumer Finance: manages renting and leasing business, credit to individual and to enterprises for consumer products and internet banking; |
• | BBVA Portugal: manages the banking business in Portugal; and |
• | European Insurance: manages the insurance business in Spain and Portugal |
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• | Loans and advances to customers were €34,743 million as of December 31, 2010, an increase of 26.9% (an increase of 11.0% at constant exchange rates) from €27,373 million as of December 31, 2009. | |
• | Customer deposits were €37,013 million as of December 31, 2010, an increase of 15.7% (an increase of 1.2% at constant exchange rates) from €31,998 million as of December 31, 2009. |
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• | Mutual fund assets under management were €15,341 million as of December 31, 2010, a significant increase of 45.5% (an increase of 27.2% at constant exchange rates) from €10,546 million as of December 31, 2009. | |
• | Pension fund assets under management were €12,781 million as of December 31, 2010, an increase of 34.3% (an increase of 17.4% at constant exchange rates) from €9,519 million as of December 31, 2009. |
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• | Loans and advances to customers were €30,408 million as of December 31, 2010, an increase of 20.4% (an increase of 21.9% at constant exchange rates) from €25,256 million as of December 31, 2009. | |
• | Customer deposits were €33,496 million as of December 31, 2010, an increase of 14.3% (22.1% at constant exchange rates) from €29,312 million as of December 31, 2009. | |
• | Mutual fund assets under management were €3,063 million as of December 31, 2010, an increase of 17.0% (4.0% at constant exchange rates) from €2,617 million as of December 31, 2009. | |
• | Pension fund assets under management were €48,800 million as of December 31, 2010, an increase of 35.2% (17.1% at constant exchange rates) from €36,104 million as of December 31, 2009. |
• | Retail and Corporate Banking;includes banks in Argentina, Chile, Colombia, Panama, Paraguay, Peru, Uruguay and Venezuela; | |
• | Pension businesses;includes pensions businesses in Bolivia, Chile, Colombia, Ecuador and Peru ; | |
• | Insurance businesses;includes insurance businesses in Argentina, Chile, Colombia, and Venezuela. |
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• | Loans and advances to customers were €38,408 million as of December 31, 2010, a decrease of 4.1% (a decrease of 11.1% at constant exchange rates) from €40,056 million as of December 31, 2009. | |
• | Customer deposits were €42,343 million as of December 31, 2010, a decrease of 31.9% (36.9% at constant exchange rates), compared to €62,200 million as of December 31, 2009. This is mainly as a result of the fall in term deposits in the New York branch. |
• | BBVA Compass Banking Group | |
• | Other units: BBVA Puerto Rico and Bancomer Transfers Services (“BTS”) |
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• | Loans and advances to customers were €35,754 million as of December 31, 2010, an increase of 16.5% from €30,684 million as of December 31, 2009. | |
• | Customer deposits were €43,819 million as of December 31, 2010 compared to €34,864 million as of December 31, 2009, an increase of 25.7%. | |
• | Mutual fund assets under management were €3,576 million as of December 31, 2010, a decrease of 8.6% from €3,914 million as of December 31, 2009. | |
• | Pension fund assets under management were €7,209 million as of December 31, 2010, a decrease of 0.2% from €7,224 million as of December 31, 2009. |
• | Corporate and Investment Banking: coordinates origination, distribution and management of a complete catalogue of corporate and investment banking products (corporate finance, structured finance, syndicated loans and debt capital markets) and provides global trade finance and global transaction services with coverage of large corporate customers specialized by sector (industry bankers); | |
• | Global Markets: handles the origination, structuring, distribution and risk management of market products, which are placed through our trading rooms in Europe, Asia and the Americas; | |
• | Asset Management: designs and manages the products that are marketed through our different branch networks including traditional asset management, alternative asset management and Valanza (our private equity unit); | |
• | Industrial and Other Holdings: helps to diversify the area’s businesses with the aim of creating medium and long-term value through active management of a portfolio of industrial holdings and other Spanish and international projects; and |
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• | Asia: relates to our stakes in CIFH in Hong Kong (approximately 30%) and in CNCB (approximately 15%) and our commitment to China as demonstrated by aggregate historic investments that exceed €4,000 million as of the date of this Annual Report. This unit also manages the operational branches and representative offices established at this region and other agreements such as the recent joint-venture with the Indian bank Baroda to create a credit card company operating in India. |
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• | Asset/Liabilities Management: administers our interest and exchange-rate structure as well as our overall liquidity and shareholders’ funds; | |
• | Holdings in Industrial and Other Companies: manages our investment portfolio in industrial and financial companies applying strict criteria for risk control, economic capital consumption and return on investment, with diversification over different industries; and | |
• | Real Estate Management: manages the real estate assets in Spain, including assets from foreclosures, repossessions, purchases from distressed customers and the assets in BBVA Propiedad, the real estate fund. |
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• | defining and implementing the ESCB’s monetary policy, with the principal aim of maintaining price stability across the euro area; | |
• | conducting currency exchange operations consistent with the provisions of Article 111 of the Treaty on European Union (“EU Treaty”), and holding and managing the Member States’ official currency reserves; | |
• | promoting the sound working of payment systems in the euro area; and | |
• | issuing legal tender banknotes. |
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• | holding and managing currency and precious metal reserves not transferred to the ECB; | |
• | supervising the solvency and behavior of credit institutions, other entities and financial markets, for which it has been assigned supervisory responsibility, in accordance with the provisions in force; | |
• | promoting the sound working and stability of the financial system and, without prejudice to the functions of the ECB, of national payment systems; | |
• | placing coins in circulation and the performance, on behalf of the State, of all such other functions entrusted to it in this connection; | |
• | preparing and publishing statistics relating to its functions, and assisting the ECB in the compilation of the necessary statistical information; | |
• | providing treasury services and acting as financial agent for government debt; | |
• | advising the government, preparing the appropriate reports and studies; and | |
• | exercising all other powers attributed to it by legislation. | |
• | Subject to the rules and regulations issued by the Ministry of Economy, the Bank of Spain has the following supervisory powers over Spanish banks: | |
• | conducting periodic inspections of Spanish banks to evaluate a bank’s compliance with current regulations including the preparation of financial statements, account structure and credit policies; | |
• | advising a bank’s board of directors and management on its dividend policy; | |
• | undertaking extraordinary inspections of banks; and | |
• | collaborating with other regulatory entities to impose penalties for infringement or violation of applicable regulations. |
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• | deposits; | |
• | debt securities issued; and | |
• | monetary market instruments. |
• | search for a private solution by the credit institution itself; | |
• | adopt measures to tackle any weaknesses that may affect the viability of credit institutions; and | |
• | initiate a restructuring process in which the Fund itself has to intervene directly. |
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• | European harmonization of large exposures limits: a bank will be restricted in lending beyond a certain limit (25% of regulatory capital) to any one party. | |
• | Improved quality of banks’ capital: clear EU-wide criteria for assessing whether ‘hybrid’ capital, i.e. including both equity and debt, is eligible to be counted as part of a bank’s overall capital | |
• | Improved liquidity risk management: for banking groups that operate in multiple countries, their liquidity risk management — i.e. how they fund their operations on aday-to-day basis — will also be discussed and coordinated within ‘colleges of supervisors’. | |
• | Improved risk management for securitized products: rules on securitized debt — the repayment of which depends on the performance of a dedicated pool of loans — have been tightened. Firms that re-package loans into tradable securities will be required to retain some risk exposure to these securities, while firms that invest in the securities will be allowed to make their decisions only after conducting comprehensive due diligence. If they fail to do so, they will be subject to capital penalties. |
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• | defining and implementing the single monetary policy of the EU; | |
• | conducting foreign exchange operations in accordance with the set exchange policy; | |
• | lending to national monetary financial institutions in collateralized operations; | |
• | holding and managing the official foreign reserves of the member states; and | |
• | promoting the smooth operation of the payment systems. |
C. | Organizational Structure |
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BBVA | ||||||||||||||||
Country of | Voting | BBVA | Total | |||||||||||||
Subsidiary | Incorporation | Activity | Power | Ownership | Assets | |||||||||||
(In millions of euros, except percentages) | ||||||||||||||||
BBVA BANCOMER, S.A. DE C.V. | MEXICO | BANK | 100.0 | 100.0 | 69,667 | |||||||||||
COMPASS BANK | THE UNITED STATES | BANK | 100.0 | 100.0 | 51,111 | |||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA CHILE, S.A. | CHILE | BANK | 68.2 | 68.2 | 11,638 | |||||||||||
BANCO CONTINENTAL, S.A. | PERU | BANK | 92.2 | 46.1 | 10,078 | |||||||||||
BBVA SEGUROS, S.A., DE SEGUROS Y REASEGUROS | SPAIN | INSURANCE | 100.0 | 100.0 | 10,913 | |||||||||||
BBVA COLOMBIA, S.A. | COLOMBIA | BANK | 95.4 | 95.4 | 8,634 | |||||||||||
BANCO PROVINCIAL S.A. — BANCO UNIVERSAL | VENEZUELA | BANK | 55.6 | 55.6 | 8,493 | |||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA (PORTUGAL), S.A. | PORTUGAL | BANK | 100.0 | 100.0 | 8,094 | |||||||||||
BBVA BANCO FRANCES, S.A. | ARGENTINA | BANK | 76.0 | 76.0 | 5,250 | |||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA PUERTO RICO, S.A. | PUERTO RICO | BANK | 100.0 | 100.0 | 3,615 | |||||||||||
FINANZIA, BANCO DE CREDITO, S.A. | SPAIN | BANK | 100.0 | 100.0 | 7,779 | |||||||||||
PENSIONES BANCOMER, S.A. DE C.V. | MEXICO | INSURANCE | 100.0 | 100.0 | 2,529 | |||||||||||
COMPASS SOUTHWEST, LP | THE UNITED STATES | BANK | 100.0 | 100.0 | 4,008 | |||||||||||
SEGUROS BANCOMER, S.A. DE C.V. | MEXICO | INSURANCE | 100.0 | 100.0 | 2,432 | |||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA (PANAMA), S.A. | PANAMA | BANK | 98.9 | 98.9 | 1,586 | |||||||||||
UNO-E BANK, S.A. | SPAIN | BANK | 100.0 | 100.0 | 1,361 | |||||||||||
BBVA PARAGUAY, S.A. | PARAGUAY | BANK | 100.0 | 100.0 | 1,121 | |||||||||||
BBVA SUIZA, S.A. (BBVA SWITZERLAND) | SWITZERLAND | BANK | 100.0 | 100.0 | 1,407 |
D. | Property, Plants and Equipment |
E. | Selected Statistical Information |
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Average Balance Sheet — Assets and Interest from Earning Assets | ||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||
December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
Balance | Interest | Yield(1) | Balance | Interest | Yield(1) | Balance | Interest | Yield(1) | ||||||||||||||||||||||||||||
(In millions of euro, except percentages) | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Cash and balances with central banks | 21,342 | 239 | 1.12 | % | 18,638 | 253 | 1.36 | % | 14,396 | 479 | 3.33 | % | ||||||||||||||||||||||||
Debt securities, equity instruments and derivatives | 145,990 | 3,939 | 2.70 | % | 138,030 | 4,207 | 3.05 | % | 118,356 | 4,659 | 3.94 | % | ||||||||||||||||||||||||
Loans and receivables | 358,587 | 16,797 | 4.68 | % | 355,121 | 19,194 | 5.40 | % | 352,727 | 25,087 | 7.11 | % | ||||||||||||||||||||||||
Loans and advances to credit institutions | 25,561 | 501 | 1.96 | % | 26,152 | 697 | 2.66 | % | 31,229 | 1,367 | 4.38 | % | ||||||||||||||||||||||||
In euro(2) | 15,888 | 210 | 1.32 | % | 16,190 | 353 | 2.18 | % | 21,724 | 933 | 4.29 | % | ||||||||||||||||||||||||
In other currencies(3) | 9,673 | 291 | 3.01 | % | 9,962 | 344 | 3.45 | % | 9,505 | 434 | 4.57 | % | ||||||||||||||||||||||||
Loans and advances to customers | 333,026 | 16,296 | 4.89 | % | 328,969 | 18,498 | 5.62 | % | 321,498 | 23,720 | 7.38 | % | ||||||||||||||||||||||||
In euro(2) | 219,862 | 7,023 | 3.19 | % | 222,254 | 9,262 | 4.17 | % | 218,634 | 13,072 | 5.98 | % | ||||||||||||||||||||||||
In other currencies(3) | 113,164 | 9,273 | 8.19 | % | 106,715 | 9,236 | 8.65 | % | 102,864 | 10,648 | 10.35 | % | ||||||||||||||||||||||||
Other financial income | — | 159 | — | — | 120 | — | — | 179 | — | |||||||||||||||||||||||||||
Non-earning assets | 32,889 | — | — | 31,180 | — | — | 32,377 | — | — | |||||||||||||||||||||||||||
Total average assets | 558,808 | 21,134 | 3.78 | % | 542,969 | 23,775 | 4.38 | % | 517,856 | 30,404 | 5.87 | % | ||||||||||||||||||||||||
(1) | Rates have been presented on a non-taxable equivalent basis. | |
(2) | Amounts reflected in euro correspond to predominantly domestic activities. | |
(3) | Amounts reflected in other currencies correspond to predominantly foreign activities. |
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Average Balance Sheet — Liabilities and Interest Paid on Interest Bearing Liabilities | ||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||
December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
Balance | Interest | Yield(1) | Balance | Interest | Yield(1) | Balance | Interest | Yield(1) | ||||||||||||||||||||||||||||
(In millions of euro, except percentages) | ||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Deposits from central banks and credit institutions | 80,177 | 1,515 | 1.89 | % | 74,017 | 2,143 | 2.89 | % | 77,159 | 3,809 | 4.94 | % | ||||||||||||||||||||||||
In euro | 45,217 | 863 | 1.91 | % | 35,093 | 967 | 2.75 | % | 32,790 | 1,604 | 4.89 | % | ||||||||||||||||||||||||
In other currencies | 34,960 | 652 | 1.87 | % | 38,924 | 1,176 | 3.02 | % | 44,369 | 2,205 | 4.97 | % | ||||||||||||||||||||||||
Customer deposits | 259,330 | 3,550 | 1.37 | % | 249,106 | 4,056 | 1.63 | % | 237,387 | 8,390 | 3.53 | % | ||||||||||||||||||||||||
In euro(2) | 121,956 | 1,246 | 1.02 | % | 116,422 | 1,326 | 1.14 | % | 115,166 | 3,765 | 3.27 | % | ||||||||||||||||||||||||
In other currencies(3) | 137,374 | 2,304 | 1.68 | % | 132,684 | 2,730 | 2.06 | % | 122,221 | 4,625 | 3.78 | % | ||||||||||||||||||||||||
Debt securities and subordinated liabilities | 119,684 | 2,334 | 1.95 | % | 120,228 | 3,098 | 2.58 | % | 119,249 | 6,100 | 5.12 | % | ||||||||||||||||||||||||
In euro(2) | 89,020 | 1,569 | 1.76 | % | 91,730 | 2,305 | 2.51 | % | 96,764 | 5,055 | 5.22 | % | ||||||||||||||||||||||||
In other currencies(3) | 30,664 | 765 | 2.49 | % | 28,498 | 793 | 2.78 | % | 22,485 | 1,045 | 4.65 | % | ||||||||||||||||||||||||
Other financial costs | — | 415 | — | — | 596 | — | — | 418 | — | |||||||||||||||||||||||||||
Non-interest-bearing liabilities | 66,541 | — | — | 70,020 | — | — | 56,867 | — | ||||||||||||||||||||||||||||
Equity | 33,076 | — | — | 29,598 | — | — | 27,194 | ��� | ||||||||||||||||||||||||||||
Total average liabilities | 558,808 | 7,814 | 1.40 | % | 542,969 | 9,893 | 1.82 | % | 517,856 | 18,717 | 3.61 | % | ||||||||||||||||||||||||
(1) | Rates have been presented on a non-taxable equivalent basis. | |
(2) | Amounts reflected in euro correspond to predominantly domestic activities. | |
(3) | Amounts reflected in other currencies correspond to predominantly foreign activities. |
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2010/2009 | ||||||||||||
Increase (Decrease) Due to Changes in | ||||||||||||
Volume(1) | Rate(1)(2) | Net Change | ||||||||||
(In millions of euros) | ||||||||||||
Interest income | ||||||||||||
Cash and balances with central bank | 37 | (51 | ) | (14 | ) | |||||||
Debt securities, equity instruments and derivatives | 243 | (511 | ) | (268 | ) | |||||||
Loans and advances to credit institutions | (16 | ) | (179 | ) | (195 | ) | ||||||
In euros | (7 | ) | (136 | ) | (142 | ) | ||||||
In other currencies | (10 | ) | (43 | ) | (53 | ) | ||||||
Loans and advances to customers | 228 | (2,429 | ) | (2,201 | ) | |||||||
In euros | (100 | ) | (2,139 | ) | (2,239 | ) | ||||||
In other currencies | 558 | (521 | ) | 37 | ||||||||
Other financial income | — | 39 | 39 | |||||||||
Total income | 693 | (3,333 | ) | (2,641 | ) | |||||||
Interest expense | ||||||||||||
Deposits from central banks and credit institutions | 178 | (806 | ) | (628 | ) | |||||||
In euros | 279 | (382 | ) | (104 | ) | |||||||
In other currencies | (120 | ) | (404 | ) | (524 | ) | ||||||
Customer deposits | 166 | (672 | ) | (505 | ) | |||||||
In euros | 63 | (143 | ) | (80 | ) | |||||||
In other currencies | 96 | (522 | ) | (425 | ) | |||||||
Debt certificates and subordinated liabilities | (14 | ) | (750 | ) | (764 | ) | ||||||
In euros | (68 | ) | (668 | ) | (736 | ) | ||||||
In other currencies | 60 | (88 | ) | (27 | ) | |||||||
Other financial costs | — | (181 | ) | (181 | ) | |||||||
Total expense | 288 | (2,367 | ) | (2,078 | ) | |||||||
Net interest income | 405 | (966 | ) | (562 | ) | |||||||
(1) | Variances caused by changes in both volume and rate have been allocated proportionally to volume and rate. | |
(2) | Rates have been presented on a non-taxable equivalent basis. |
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2009/2008 | ||||||||||||
Increase (Decrease) Due to Changes in | ||||||||||||
Volume(1) | Rate(1)(2) | Net Change | ||||||||||
(In millions of euros) | ||||||||||||
Interest income | ||||||||||||
Cash and balances with central bank | 141 | (366 | ) | (225 | ) | |||||||
Debt securities, equity instruments and derivatives | 774 | (1,226 | ) | (452 | ) | |||||||
Loans and advances to credit institutions | (222 | ) | (449 | ) | (670 | ) | ||||||
In euros | (238 | ) | (342 | ) | (580 | ) | ||||||
In other currencies | 21 | (112 | ) | (91 | ) | |||||||
Loans and advances to customers | 551 | (5,774 | ) | (5,222 | ) | |||||||
In euros | 216 | (4,027 | ) | (3,810 | ) | |||||||
In other currencies | 396 | (1,725 | ) | (1,412 | ) | |||||||
Other financial income | — | (59 | ) | (59 | ) | |||||||
Total income | 1,474 | (8,104 | ) | (6,629 | ) | |||||||
Interest expense | ||||||||||||
Deposits from central banks and credit institutions | (155 | ) | (1,512 | ) | (1,667 | ) | ||||||
In euros | 113 | (750 | ) | (637 | ) | |||||||
In other currencies | (271 | ) | (759 | ) | (1,029 | ) | ||||||
Customer deposits | 414 | (4,348 | ) | (4,334 | ) | |||||||
In euros | 41 | (2,094 | ) | (2,439 | ) | |||||||
In other currencies | 396 | (2,291 | ) | (1,895 | ) | |||||||
Debt certificates and subordinated liabilities | 50 | (3,052 | ) | (3,002 | ) | |||||||
In euros | (263 | ) | (2,481 | ) | (2,744 | ) | ||||||
In other currencies | 280 | (537 | ) | (258 | ) | |||||||
Other financial costs | — | 178 | 178 | |||||||||
Total expense | 908 | (9,733 | ) | (8,825 | ) | |||||||
Net interest income | 567 | 1,629 | 2,197 | |||||||||
(1) | Variances caused by changes in both volume and rate have been allocated proportionally to volume and rate. | |
(2) | Rates have been presented on a non-taxable equivalent basis. |
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of euro, except percentages) | ||||||||||||
Average interest earning assets | 525,914 | 511,789 | 485,479 | |||||||||
Gross yield(1) | 4.02 | % | 4.65 | % | 6.17 | % | ||||||
Net yield(2) | 3.78 | % | 4.38 | % | 5.78 | % | ||||||
Net interest margin(3) | 2.53 | % | 2.71 | % | 2.41 | % | ||||||
Average effective rate paid on all interest-bearing liabilities | 1.70 | % | 2.23 | % | 4.31 | % | ||||||
Spread(4) | 2.32 | % | 2.41 | % | 1.86 | % |
(1) | Gross yield represents total interest income divided by average interest earning assets. | |
(2) | Net yield represents total interest income divided by total average assets. | |
(3) | Net interest margin represents net interest income as percentage of average interest earning assets. | |
(4) | Spread is the difference between gross yield and the average cost of interest-bearing liabilities. |
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December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||
Cost | Value(1) | Cost | Value(1) | Cost | Value(1) | |||||||||||||||||||
(Millions of euros) | ||||||||||||||||||||||||
DEBT SECURITIES — | ||||||||||||||||||||||||
AVAILABLE FOR SALE PORTFOLIO | ||||||||||||||||||||||||
Domestic — | 21,929 | 20,566 | 24,577 | 24,869 | 11,743 | 11,910 | ||||||||||||||||||
Spanish Government | 16,543 | 15,337 | 18,312 | 18,551 | 6,233 | 6,371 | ||||||||||||||||||
Other debt securities | 5,386 | 5,229 | 6,265 | 6,318 | 5,510 | 5,539 | ||||||||||||||||||
Issued by Central Banks | — | — | — | — | 9 | 9 | ||||||||||||||||||
Issued by credit institutions | 4,221 | 4,090 | 5,097 | 5,202 | 4,330 | 4,338 | ||||||||||||||||||
Issued by other institutions | 1,165 | 1,139 | 1,168 | 1,116 | 1,171 | 1,192 | ||||||||||||||||||
International — | 30,108 | 30,309 | 31,868 | 32,202 | 28,108 | 27,920 | ||||||||||||||||||
The United States — | 6,850 | 6,832 | 6,804 | 6,805 | 10,573 | 10,442 | ||||||||||||||||||
U.S. Treasury and other U.S. Government agencies | 579 | 578 | 414 | 416 | 444 | 444 | ||||||||||||||||||
States and political subdivisions | 187 | 193 | 214 | 221 | 382 | 396 | ||||||||||||||||||
Other debt securities | 6,084 | 6,061 | 6,176 | 6,168 | 9,747 | 9,602 | ||||||||||||||||||
Issued by Central Banks | — | — | — | — | 240 | 242 | ||||||||||||||||||
Issued by credit institutions | 2,982 | 2,873 | 2,597 | 2,610 | 4,341 | 4,327 | ||||||||||||||||||
Issued by other institutions | 3,102 | 3,188 | 3,579 | 3,558 | 5,166 | 5,033 | ||||||||||||||||||
Other countries (*) — | 23,258 | 23,477 | 25,064 | 25,397 | 17,535 | 17,478 | ||||||||||||||||||
Securities of other foreign Governments (**) | 15,733 | 15,958 | 17,058 | 17,363 | 9,624 | 9,653 | ||||||||||||||||||
Other debt securities | 7,525 | 7,519 | 8,006 | 8,034 | 7,911 | 7,825 | ||||||||||||||||||
Issued by Central Banks | 945 | 945 | 1,296 | 1,297 | 1,045 | 1,045 | ||||||||||||||||||
Issued by credit institutions | 4,983 | 4,999 | 4,795 | 4,893 | 5,924 | 5,958 | ||||||||||||||||||
Issued by other institutions | 1,597 | 1,575 | 1,915 | 1,844 | 942 | 823 | ||||||||||||||||||
TOTAL AVAILABLE FOR SALE PORTFOLIO | 52,037 | 50,875 | 56,445 | 57,071 | 39,851 | 39,830 | ||||||||||||||||||
HELD TO MATURITY PORTFOLIO | ||||||||||||||||||||||||
Domestic — | 7,503 | 6,771 | 2,626 | 2,624 | 2,392 | 2,339 | ||||||||||||||||||
Spanish Government | 6,611 | 5,942 | 1,674 | 1,682 | 1,412 | 1,412 | ||||||||||||||||||
Other debt securities | 892 | 829 | 952 | 942 | 980 | 927 | ||||||||||||||||||
Issued by Central Banks | — | — | — | — | — | — | ||||||||||||||||||
Issued by credit institutions | 290 | 277 | 342 | 344 | 342 | 344 | ||||||||||||||||||
Issued by other institutions | 602 | 552 | 610 | 598 | 638 | 583 | ||||||||||||||||||
International — | 2,443 | 2,418 | 2,811 | 2,869 | 2,890 | 2,882 | ||||||||||||||||||
Securities of other foreign Governments | 2,181 | 2,171 | 2,399 | 2,456 | 2,432 | 2,437 | ||||||||||||||||||
Other debt securities | 262 | 247 | 412 | 413 | 458 | 445 | ||||||||||||||||||
TOTAL HELD TO MATURITY PORTFOLIO | 9,946 | 9,189 | 5,437 | 5,493 | 5,282 | 5,221 | ||||||||||||||||||
TOTAL DEBT SECURITIES | 61,983 | 60,064 | 61,882 | 62,564 | 45,133 | 45,051 | ||||||||||||||||||
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(1) | Fair values for listed securities are determined on the basis of their quoted values at the end of the period. Appraised values are used for unlisted securities based on our estimate and valuation techniques see Note 8 to the Consolidated Financial Statements. | |
(*) | Includes Mexico. As of December 31, 2010 the total fair value of Mexican debt securities amounted to €10,547 million of which Mexican Government and other government agency debt securities amounted to € 9,858 million and credit institutions amounted to €579 million. | |
(**) | Consists mainly of securities held by our subsidiaries issued by the Governments of the countries where they operate. As of December 31, 2010 the fair value of Securities of other foreign Governments included €9,858 million of Mexican Government and other government agency debt securities. |
As of Diciembre 31, 2010 | ||||||||||||||||
Debt Securities Available for Sale | Debt Securities Held to Maturity | |||||||||||||||
Carrying Amount | % | Carrying Amount | % | |||||||||||||
(Millions of euros) | (Millions of euros) | |||||||||||||||
AAA | 11,638 | 22.9 | % | 1,908 | 19.2 | % | ||||||||||
AA+ | 12,210 | 24.0 | % | 6,703 | 67.4 | % | ||||||||||
AA | 5,022 | 9.9 | % | — | — | |||||||||||
AA− | 2,523 | 5.0 | % | 1,222 | 12.3 | % | ||||||||||
A+ | 1,651 | 3.2 | % | 76 | 0.8 | % | ||||||||||
A | 8,661 | 17.0 | % | — | — | |||||||||||
A− | 574 | 1.1 | % | — | — | |||||||||||
With rating BBB+ or below | 3,761 | 7.4 | % | 37 | 0.3 | % | ||||||||||
Non-rated | 4,835 | 9.5 | % | — | — | |||||||||||
TOTAL | 50,875 | 100.0 | % | 9,946 | 100.0 | % |
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December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||
Cost | Value(1) | Cost | Value(1) | Cost | Value(1) | |||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||
EQUITY SECURITIES — | ||||||||||||||||||||||||
AVAILABLE FOR SALE PORTFOLIO | ||||||||||||||||||||||||
Domestic | 3,403 | 4,608 | 3,683 | 5,409 | 3,582 | 4,675 | ||||||||||||||||||
Equity listed | 3,378 | 4,583 | 3,657 | 5,383 | 3,545 | 4,639 | ||||||||||||||||||
Equity unlisted | 25 | 25 | 26 | 26 | 37 | 36 | ||||||||||||||||||
International | 927 | 973 | 948 | 1,041 | 3,408 | 3,275 | ||||||||||||||||||
United States | 605 | 662 | 641 | 737 | 665 | 654 | ||||||||||||||||||
Equity listed | 11 | 13 | 16 | 8 | 39 | 28 | ||||||||||||||||||
Equity unlisted | 594 | 649 | 625 | 729 | 626 | 626 | ||||||||||||||||||
Other countries | 322 | 311 | 307 | 304 | 2,743 | 2,621 | ||||||||||||||||||
Equity listed | 258 | 240 | 250 | �� | 242 | 2,545 | 2,416 | |||||||||||||||||
Equity unlisted | 64 | 71 | 57 | 62 | 198 | 205 | ||||||||||||||||||
TOTAL AVAILABLE FOR SALE PORTFOLIO | 4,330 | 5,581 | 4,631 | 6,450 | 6,990 | 7,950 | ||||||||||||||||||
TOTAL EQUITY SECURITIES | 4,330 | 5,581 | 4,631 | 6,450 | 6,990 | 7,950 | ||||||||||||||||||
TOTAL INVESTMENT SECURITIES | 66,313 | 65,645 | 66,513 | 69,014 | 52,123 | 53,001 | ||||||||||||||||||
(1) | Fair values for listed securities are determined on the basis of their quoted values at the end of the year. Appraised values are used for unlisted securities based on our estimate or on unaudited financial statements, when available. |
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Maturity at One | Maturity After One | Maturity After Five | Maturity After Ten | |||||||||||||||||||||||||||||||||
Year or Less | Year to Five Years | Years to 10 Years | Years | Total | ||||||||||||||||||||||||||||||||
Amount | Yield % | Amount | Yield % | Amount | Yield % | Amount | Yield % | Amount | ||||||||||||||||||||||||||||
(Millions of euros, except percentages) | ||||||||||||||||||||||||||||||||||||
DEBT SECURITIES | ||||||||||||||||||||||||||||||||||||
AVAILABLE-FOR-SALE PORTFOLIO | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||
Spanish government and other spanish government securities | 982 | 4.32 | 8,651 | 3.32 | 3,197 | 4.05 | 2,507 | 5.88 | 15,337 | |||||||||||||||||||||||||||
Other debt securities | 1,303 | 3.92 | 2,612 | 3.47 | 438 | 2.51 | 876 | 3.09 | 5,229 | |||||||||||||||||||||||||||
Total Domestic | 2,285 | 4.09 | 11,263 | 3.36 | 3,635 | 3.84 | 3,383 | 4.96 | 20,566 | |||||||||||||||||||||||||||
International | ||||||||||||||||||||||||||||||||||||
United States | 526 | 4.44 | 2,971 | 3.92 | 2,340 | 3.39 | 995 | 4.39 | 6,832 | |||||||||||||||||||||||||||
U.S. Treasury and other U.S. government agencies | 108 | 1.92 | 195 | 3.55 | 65 | 4.73 | 210 | 4.20 | 578 | |||||||||||||||||||||||||||
States and political subdivisions | 29 | 6.28 | 93 | 6.38 | 59 | 6.54 | 12 | 6.57 | 193 | |||||||||||||||||||||||||||
Other U.S. securities | 389 | 5.03 | 2,683 | 3.86 | 2,216 | 3.25 | 773 | 4.41 | 6,061 | |||||||||||||||||||||||||||
Other countries | 3,075 | 3.82 | 11,436 | 5.84 | 3,571 | 5.42 | 5,395 | 5.09 | 23,477 | |||||||||||||||||||||||||||
Securities of other foreign governments | 690 | 5.62 | 9,156 | 6.58 | 2,547 | 6.58 | 3,565 | 5.92 | 15,958 | |||||||||||||||||||||||||||
Other debt securities of other countries | 2,385 | 3.24 | 2,280 | 3.00 | 1,024 | 2.76 | 1,830 | 4.45 | 7,519 | |||||||||||||||||||||||||||
Total International | 3,601 | 3.93 | 14,407 | 5.44 | 5,911 | 4.57 | 6,390 | 4.92 | 30,309 | |||||||||||||||||||||||||||
TOTALAVAILABLE-FOR-SALE | 5,886 | 4.00 | 25,670 | 4.48 | 9,546 | 4.26 | 9,773 | 4.94 | 50,875 | |||||||||||||||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||||||||||||||||||
Domestic | ||||||||||||||||||||||||||||||||||||
Spanish government | 76 | 5.35 | 98 | 4.70 | 3,107 | 3.90 | 3,330 | 4.95 | 6,611 | |||||||||||||||||||||||||||
Other debt securities | 37 | 3.66 | 645 | 4.05 | 210 | 4.02 | — | — | 892 | |||||||||||||||||||||||||||
Total Domestic | 113 | 4.79 | 743 | 4.14 | 3,317 | 3.91 | 3,330 | 4.95 | 7,503 | |||||||||||||||||||||||||||
Total International | 616 | 3.37 | 1,392 | 4.23 | 209 | 4.50 | 226 | 3.75 | 2,443 | |||||||||||||||||||||||||||
TOTAL held-to-maturity | 729 | 3.59 | 2,135 | 4.20 | 3,526 | 3.94 | 3,556 | 4.86 | 9,946 | |||||||||||||||||||||||||||
TOTAL DEBT SECURITIES | 6,615 | 3.95 | 27,805 | 4.46 | 13,072 | 4.18 | 13,329 | 4.92 | 60,821 | |||||||||||||||||||||||||||
(1) | Rates have been presented on a non-taxable equivalent basis. | |
(*) | Securities of other foreign Governments mainly include investments made by our subsidiaries in securities issued by the Governments of the countries where they operate. |
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
Domestic | 210,102 | 203,529 | 208,474 | |||||||||
Foreign | ||||||||||||
Western Europe | 23,139 | 23,333 | 28,546 | |||||||||
Latin America | 70,497 | 61,298 | 61,978 | |||||||||
United States | 38,649 | 37,688 | 35,498 | |||||||||
Other | 4,823 | 5,239 | 6,826 | |||||||||
Total foreign | 137,108 | 127,558 | 132,848 | |||||||||
Total loans and leases | 347,210 | 331,087 | 341,322 | |||||||||
Valuation adjustments | (8,353 | ) | (7,645 | ) | (6,062 | ) | ||||||
Total net lending | 338,857 | 323,442 | 335,260 | |||||||||
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
Domestic | ||||||||||||
Government | 23,542 | 20,559 | 17,436 | |||||||||
Agriculture | 1,619 | 1,722 | 1,898 | |||||||||
Industrial | 17,452 | 16,805 | 17,976 | |||||||||
Real estate and construction | 29,944 | 36,584 | 38,632 | |||||||||
Commercial and financial | 23,409 | 17,404 | 17,165 | |||||||||
Loans to individuals | 91,730 | 87,948 | 88,712 | |||||||||
Lease financing | 5,893 | 6,547 | 7,702 | |||||||||
Other | 16,513 | 15,960 | 18,954 | |||||||||
Total domestic | 210,102 | 203,529 | 208,475 | |||||||||
Foreign | ||||||||||||
Government | 7,682 | 5,660 | 5,066 | |||||||||
Agriculture | 2,358 | 2,202 | 2,211 | |||||||||
Industrial | 19,126 | 25,993 | 28,600 | |||||||||
Real estate and construction | 25,910 | 19,183 | 15,890 | |||||||||
Commercial and financial | 22,280 | 23,310 | 27,720 | |||||||||
Loans to individuals | 44,138 | 38,540 | 39,178 | |||||||||
Lease financing | 2,248 | 1,675 | 1,683 | |||||||||
Other | 13,366 | 10,995 | 12,499 | |||||||||
Total foreign | 137,108 | 127,558 | 132,847 | |||||||||
Total loans and leases | 347,210 | 331,087 | 341,322 | |||||||||
Valuation adjustments | (8,353 | ) | (7,645 | ) | (6,062 | ) | ||||||
Total net lending | 338,857 | 323,442 | 335,260 | |||||||||
As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
In euros | 221,269 | 217,537 | 226,855 | |||||||||
In other currencies | 117,588 | 105,905 | 108,405 | |||||||||
Total net lending | 338,857 | 323,442 | 335,260 | |||||||||
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Maturity | ||||||||||||||||
Due After | ||||||||||||||||
Due in | One Year | |||||||||||||||
One Year | through | Due After | ||||||||||||||
or Less | Five Years | Five Years | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
Domestic: | ||||||||||||||||
Government | 9,706 | 6,651 | 7,185 | 23,542 | ||||||||||||
Agriculture | 631 | 594 | 394 | 1,619 | ||||||||||||
Industrial | 13,454 | 2,776 | 1,222 | 17,452 | ||||||||||||
Real estate and construction | 13,184 | 7,323 | 9,437 | 29,944 | ||||||||||||
Commercial and financial | 13,375 | 4,839 | 5,195 | 23,409 | ||||||||||||
Loans to individuals | 10,402 | 17,329 | 63,999 | 91,730 | ||||||||||||
Lease financing | 701 | 2,278 | 2,914 | 5,893 | ||||||||||||
Other | 11,009 | 2,641 | 2,863 | 16,513 | ||||||||||||
Total Domestic | 72,462 | 44,431 | 93,209 | 210,102 | ||||||||||||
Foreign: | ||||||||||||||||
Government | 1,736 | 1,696 | 4,250 | 7,682 | ||||||||||||
Agriculture | 997 | 1,130 | 231 | 2,358 | ||||||||||||
Industrial | 7,431 | 6,303 | 5,393 | 19,126 | ||||||||||||
Real estate and construction | 9,112 | 8,019 | 8,779 | 25,910 | ||||||||||||
Commercial and financial | 13,393 | 6,267 | 2,620 | 22,280 | ||||||||||||
Loans to individuals | 7,735 | 12,032 | 24,371 | 44,138 | ||||||||||||
Lease financing | 808 | 1,147 | 293 | 2,248 | ||||||||||||
Other | 7,018 | 3,812 | 2,535 | 13,366 | ||||||||||||
Total Foreign | 48,230 | 40,406 | 48,472 | 137,108 | ||||||||||||
Total Loans and Leases | 120,692 | 84,837 | 141,681 | 347,210 | ||||||||||||
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Interest Sensitivity of | ||||||||||||
Outstanding Loans and Leases | ||||||||||||
Maturing in More Than One Year | ||||||||||||
Domestic | Foreign | Total | ||||||||||
(In millions of euros) | ||||||||||||
Fixed rate | 17,022 | 40,992 | 58,013 | |||||||||
Variable rate | 120,618 | 47,886 | 168,504 | |||||||||
Total loans and leases | 137,640 | 88,878 | 226,518 | |||||||||
As of December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(In millions of euros, except percentages) | ||||||||||||||||||||
Loan loss reserve at beginning of period: | ||||||||||||||||||||
Domestic | 4,853 | 3,766 | 3,459 | 3,734 | 3,079 | |||||||||||||||
Foreign | 3,952 | 3,740 | 3,685 | 2,690 | 2,511 | |||||||||||||||
Total loan loss reserve at beginning of period | 8,805 | 7,505 | 7,144 | 6,424 | 5,590 | |||||||||||||||
Loans charged off: | ||||||||||||||||||||
Government and other Agencies | — | — | — | — | — | |||||||||||||||
Real estate and loans to individuals and other | (1,719 | ) | (936 | ) | (639 | ) | (361 | ) | (255 | ) | ||||||||||
Commercial and financial | (56 | ) | (30 | ) | (16 | ) | (7 | ) | (2 | ) | ||||||||||
Total domestic | (1,774 | ) | (966 | ) | (655 | ) | (368 | ) | (257 | ) | ||||||||||
Total foreign(*) | (2,628 | ) | (2,876 | ) | (1,296 | ) | (928 | ) | (289 | ) | ||||||||||
Total Loans charged off: | (4,402 | ) | (3,842 | ) | (1,951 | ) | (1,296 | ) | (546 | ) | ||||||||||
Provision for possible loan losses: | ||||||||||||||||||||
Domestic | 2,038 | 3,079 | 953 | 807 | 883 | |||||||||||||||
Foreign | 2,778 | 2,307 | 2,035 | 1,321 | 778 | |||||||||||||||
Total Provision for possible loan losses | 4,816 | 5,386 | 2,988 | 2,128 | 1,661 | |||||||||||||||
Acquisition and disposition of subsidiaries | — | — | — | 250 | 69 | |||||||||||||||
Effect of foreign currency translation | 344 | (29 | ) | (487 | ) | (420 | ) | (333 | ) | |||||||||||
Other | (90 | ) | (216 | ) | (189 | ) | 58 | (17 | ) | |||||||||||
Loan loss reserve at end of period: | ||||||||||||||||||||
Domestic | 4,935 | 4,853 | 3,766 | 3,459 | 3,734 | |||||||||||||||
Foreign | 4,539 | 3,952 | 3,740 | 3,685 | 2,690 | |||||||||||||||
Total Loan loss reserve at end of period | 9,473 | 8,805 | 7,505 | 7,144 | 6,424 | |||||||||||||||
Loan loss reserve as a percentage of total loans and receivables at end of period | 2.60 | % | 2.54 | % | 2.03 | % | 2.12 | % | 2.30 | % | ||||||||||
Net loan charge-offs a a percentage of total loans and receivables at end of period | 1.21 | % | 1.11 | % | 0.53 | % | 0.38 | % | 0.20 | % |
(*) | Includes €5 million related to loans to Government and other Agencies, €1,847 million related to real estate and loans to individuals and other, and €776 million related to commercial and financial. |
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As of December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(In millions of euros, except %) | ||||||||||||||||||||
Substandard loans | ||||||||||||||||||||
Domestic | 10,954 | 10,973 | 5,562 | 1,551 | 1,081 | |||||||||||||||
Public sector | 111 | 61 | 79 | 116 | 127 | |||||||||||||||
Other resident sector | 10,843 | 10,912 | 5,483 | 1,435 | 954 | |||||||||||||||
Foreign | 4,518 | 4,338 | 2,979 | 1,814 | 1,418 | |||||||||||||||
Public sector | 12 | 25 | 20 | 57 | 86 | |||||||||||||||
Non-resident sector | 4,506 | 4,313 | 2,959 | 1,757 | 1,332 | |||||||||||||||
Total Substandard loans | 15,472 | 15,311 | 8,541 | 3,366 | 2,499 | |||||||||||||||
Total loan loss reserve | (9,473 | ) | (8,805 | ) | (7,505 | ) | (7,144 | ) | (6,424 | ) | ||||||||||
Substandard loans net of reserves | 5,999 | 6,506 | 1,036 | (3,778 | ) | (3,925 | ) | |||||||||||||
Substandard loans as a percentage of total loans and receivables (net) | 4.24 | % | 4.42 | % | 2.31 | % | 1.00 | % | 0.89 | % | ||||||||||
Substandard loans (net of reserve) as a percentage of total loans and receivables (net) | 1.64 | % | 1.88 | % | 0.28 | % | (1.12 | %) | (1.40 | %) |
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Substandard | ||||||||||||
Loans as a | ||||||||||||
Loan | Percentage | |||||||||||
Substandard | Loss | of Loans in | ||||||||||
Loans | Reserve | Category | ||||||||||
(In millions of euros) | ||||||||||||
Domestic: | ||||||||||||
Government | 111 | 25 | 0.47 | % | ||||||||
Credit Intitutions | — | — | — | |||||||||
Other sectors | 10,841 | 4,529 | 5.81 | % | ||||||||
Agriculture | 96 | 45 | 5.93 | % | ||||||||
Industrial | 700 | 428 | 4.01 | % | ||||||||
Real estate and constrution | 5,038 | 2,053 | 16.82 | % | ||||||||
Commercial and other financial | 1,218 | 696 | 4.16 | % | ||||||||
Loans to individuals | 2,940 | 907 | 3.20 | % | ||||||||
Other | 851 | 399 | 5.15 | % | ||||||||
Total Domestic | 10,954 | 4,554 | 5.05 | % | ||||||||
Foreign | ||||||||||||
Government | 12 | 11 | 0.15 | % | ||||||||
Credit Intitutions | 104 | 64 | 0.62 | % | ||||||||
Other sectors | 4,402 | 2,124 | 3.40 | % | ||||||||
Agriculture | 51 | 69 | 2.18 | % | ||||||||
Industrial | 126 | 70 | 0.66 | % | ||||||||
Real estate and constrution | 1,112 | 487 | 4.29 | % | ||||||||
Commercial and other financial | 1,409 | 592 | 5.75 | % | ||||||||
Loans to individuals | 1,596 | 835 | 3.62 | % | ||||||||
Other | 108 | 71 | 0.81 | % | ||||||||
Total Foreign | 4,518 | 2,199 | 2.94 | % | ||||||||
General reserve | — | 2,720 | ||||||||||
Total substandard loans | 15,472 | 9,473 | 4.17 | % | ||||||||
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2010 | 2009 | 2008 | ||||||||||||||||||||||
% of | % of | % of | ||||||||||||||||||||||
Total | Total | Total | ||||||||||||||||||||||
Amount | Assets | Amount | Assets | Amount | Assets | |||||||||||||||||||
(In millions of euros, except percentages) | ||||||||||||||||||||||||
OECD | ||||||||||||||||||||||||
United Kingdom | 5,457 | 0.99 | % | 6,619 | 1.24 | % | 7,542 | 1.39 | % | |||||||||||||||
Mexico | 2,175 | 0.39 | % | 3,218 | 0.60 | % | 4,644 | 0.86 | % | |||||||||||||||
Other OECD | 5,674 | 1.03 | % | 5,761 | 1.08 | % | 6,514 | 1.20 | % | |||||||||||||||
Total OECD | 13,306 | 2.41 | % | 15,598 | 2.92 | % | 18,700 | 3.45 | % | |||||||||||||||
Central and South America | 3,074 | 0.56 | % | 3,296 | 0.62 | % | 4,092 | 0.75 | % | |||||||||||||||
Other | 5,411 | 0.98 | % | 4,657 | 0.87 | % | 5,676 | 1.05 | % | |||||||||||||||
Total | 21,791 | 3.94 | % | 23,551 | 4.40 | % | 28,468 | 5.25 | % | |||||||||||||||
Banks and | ||||||||||||||||
Other | Commercial, | |||||||||||||||
Financial | Industrial and | |||||||||||||||
Governments | Institutions | Other | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
As of December 31, 2010 | ||||||||||||||||
Mexico | 51 | 1 | 2,123 | 2,175 | ||||||||||||
United Kingdom | — | 4,078 | 1,379 | 5,457 | ||||||||||||
Total | 51 | 4,079 | 3,502 | 7,632 | ||||||||||||
As of December 31, 2009 | ||||||||||||||||
Mexico | 3 | 3 | 3,212 | 3,218 | ||||||||||||
United Kingdom | — | 4,933 | 1,686 | 6,619 | ||||||||||||
Total | 3 | 4,936 | 4,898 | 9,837 | ||||||||||||
As of December 31, 2008 | ||||||||||||||||
Mexico | 4 | 228 | 4,412 | 4,644 | ||||||||||||
United Kingdom | — | 5,113 | 2,429 | 7,542 | ||||||||||||
Total | 4 | 5,341 | 6,841 | 12,186 | ||||||||||||
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Minimum Percentage of | ||||
Coverage (Outstandings | ||||
Categories(1) | Within Category) | |||
Countries belonging to the OECD whose currencies are listed in the Spanish foreign exchange market | 0.0 | |||
Countries with transitory difficulties(2) | 10.1 | |||
Doubtful countries(2) | 22.8 | |||
Very doubtful countries(2)(3) | 83.5 | |||
Bankrupt countries(4) | 100.0 |
(1) | Any outstanding which is guaranteed may be treated, for the purposes of the foregoing, as if it were an obligation of the guarantor. | |
(2) | Coverage for the aggregate of these three categories (countries with transitory difficulties, doubtful countries and very doubtful countries) must equal at least 35% of outstanding loans within the three categories. The Bank of Spain has recommended up to 50% aggregate coverage. | |
(3) | Outstandings to very doubtful countries are treated as substandard under Bank of Spain regulations. | |
(4) | Outstandings to bankrupt countries must be charged off immediately. As a result, no such outstandings are reflected on our consolidated balance sheet. Notwithstanding the foregoing minimum required reserves, certain interbank outstandings with an original maturity of three months or less have minimum required reserves of 50%. We met or exceeded the minimum percentage of required coverage with respect to each of the foregoing categories. |
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As of December 31, 2010 | ||||||||||||||||
Bank of Spain and | Other | |||||||||||||||
Customer | Other Central | Credit | ||||||||||||||
Deposits | Banks | Institutions | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
Total domestic | 133,033 | 2,779 | 8,867 | 144,679 | ||||||||||||
Foreign: | ||||||||||||||||
Western Europe | 24,120 | 7,205 | 22,626 | 53,951 | ||||||||||||
Latin America | 72,015 | 96 | 14,758 | 86,869 | ||||||||||||
United States | 42,495 | 364 | 6,839 | 49,698 | ||||||||||||
Other | 3,178 | 543 | 3,855 | 7,576 | ||||||||||||
Total foreign | 141,808 | 8,208 | 48,078 | 198,094 | ||||||||||||
Total | 274,841 | 10,987 | 56,945 | 342,773 | ||||||||||||
As of December 31, 2009 | ||||||||||||||||
Bank of Spain and | Other | |||||||||||||||
Customer | Other Central | Credit | ||||||||||||||
Deposits | Banks | Institutions | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
Total domestic | 97,023 | 15,352 | 7,692 | 120,067 | ||||||||||||
Foreign: | ||||||||||||||||
Western Europe | 22,199 | 3,945 | 20,472 | 46,616 | ||||||||||||
Latin America | 63,027 | 423 | 11,857 | 75,307 | ||||||||||||
United States | 67,986 | 948 | 6,572 | 75,506 | ||||||||||||
Other | 3,148 | 428 | 2,352 | 5,928 | ||||||||||||
Total foreign | 156,360 | 5,744 | 41,253 | 203,357 | ||||||||||||
Total | 253,383 | 21,096 | 48,945 | 323,424 | ||||||||||||
As of December 31, 2008 | ||||||||||||||||
Bank of Spain and | Other | |||||||||||||||
Customer | Other Central | Credit | ||||||||||||||
Deposits | Banks | Institutions | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
Total domestic | 105,146 | 6,132 | 6,220 | 117,498 | ||||||||||||
Foreign: | ||||||||||||||||
Western Europe | 26,341 | 5,524 | 20,293 | 52,158 | ||||||||||||
Latin America | 57,193 | 844 | 10,987 | 69,024 | ||||||||||||
United States | 56,185 | 4,061 | 9,297 | 69,543 | ||||||||||||
Other | 8,860 | 201 | 2,776 | 11,837 | ||||||||||||
Total foreign | 148,579 | 10,630 | 43,353 | 202,562 | ||||||||||||
Total | 253,725 | 16,762 | 49,573 | 320,061 | ||||||||||||
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As of December 31, 2010 | ||||||||||||
Domestic | Foreign | Total | ||||||||||
(In millions of euros) | ||||||||||||
3 months or under | 6,047 | 37,303 | 43,350 | |||||||||
Over 3 to 6 months | 6,195 | 4,487 | 10,682 | |||||||||
Over 6 to 12 months | 11,137 | 4,636 | 15,771 | |||||||||
Over 12 months | 9,924 | 3,787 | 13,711 | |||||||||
Total | 33,303 | 50,213 | 83,516 | |||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||
(In millions of euro, except %) | ||||||||||||||||||||||||
Securities sold under agreements to repurchase (principally Spanish Treasury bills): | ||||||||||||||||||||||||
As of December 31 | 39,587 | 2.03 | % | 26,171 | 2.43 | % | 28,206 | 4.66 | % | |||||||||||||||
Average during year | 31,056 | 2.17 | % | 30,811 | 2.71 | % | 34,729 | 5.62 | % | |||||||||||||||
Maximum quarter-end balance | 39,587 | — | 28,849 | — | 34,202 | — | ||||||||||||||||||
Bank promissory notes: | ||||||||||||||||||||||||
As of December 31 | 13,215 | 0.91 | % | 29,578 | 0.50 | % | 20,061 | 3.70 | % | |||||||||||||||
Average during year | 24,405 | 0.55 | % | 27,434 | 1.28 | % | 15,661 | 4.57 | % | |||||||||||||||
Maximum quarter-end balance | 28,937 | — | 30,919 | — | 20,061 | — | ||||||||||||||||||
Bonds and Subordinated debt: | ||||||||||||||||||||||||
As of December 31 | 11,041 | 2.57 | % | 13,236 | 2.54 | % | 13,565 | 4.66 | % | |||||||||||||||
Average during year | 10,825 | 3.20 | % | 14,820 | 3.20 | % | 12,447 | 5.18 | % | |||||||||||||||
Maximum quarter-end balance | 13,184 | — | 15,609 | — | 15,822 | — | ||||||||||||||||||
Total short-term borrowings as of December 31 | 63,844 | 1.89 | % | 68,985 | 1.62 | % | 61,832 | 4.35 | % |
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As of or for the | ||||||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(in %) | ||||||||||||
Return on equity(1) | 15.8 | 16.0 | 21.5 | |||||||||
Return on assets(2) | 0.89 | 0.85 | 1.04 | |||||||||
Dividend pay-out ratio(3) | 26.9 | 37.4 | 46.0 | |||||||||
Equity to assets ratio(4) | 6.64 | 5.49 | 4.90 |
(1) | Represents net income attributed to parent company for the year as a percentage of average equity for the year. | |
(2) | Represents net income attributed to parent company as a percentage of average total assets for the year. | |
(3) | Represents dividends paid as a percentage of net income attributed to parent company. | |
(4) | Represents total equity over total assets. |
F. | Competition |
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• | Royal Decree-Law 6/2008, of October 10, creating the Spanish Financial Asset Acquisition Fund (FAAF), and Order EHA/3118/2008, dated October 31, enacting this Royal Decree. The purpose of the fund, which is managed by Spain’s Economy Ministry and has an initial endowment of €30 billion, which can be increased to €50 billion, is to acquire, with public financing and based on market criteria via auctions, financial instruments issued by Spanish banks and savings banks (cajas de ahorro) and securitization funds containing Spanish assets, secured by loans extended to individuals, companies and non-financial corporations. | |
• | Royal Decree-Law 7/2008, of October 13, on Emergency Economic Measures in connection with the Concerted Euro Area Action Plan, and Order EHA/3364/2008, dated November 21, enacting article 1 of the aforementioned Royal Decree, including the following measures: |
• | The extension of state guarantees to secure bills, debentures and bonds issued by credit entities resident in Spain since October 14, 2008. Debt issued which takes advantage of this state guarantee must form part of individual operations or issuance programs; not be subordinated or secured by any other class of guarantee; be traded on official Spanish secondary markets; mature within three months and three years (although this maturity can be extended to five years subject to prior notification to the Bank of Spain); be fixed or floating rate (subject to special conditions for floating-rate debt); be repaid in a single installment at maturity; not have any options or other derivatives attached to them; and have a nominal value of €10 million or more. The deadline for issuing eligible debt for the state guarantee was December 31, 2009 and the total amount of available guarantees was €100 billion. The government extended the time period to use the remaining resources (€64 billion) until June 2010. | |
• | Authorization until December 31, 2009, for the Spanish Economy Ministry to acquire securities, on an exceptional basis, including preferred shares and other non-voting equity instruments, issued by credit entities resident in Spain which needed to reinforce their capital structured and submitted the relevant request to the relevant authorities. | |
• | Royal Decree-Law 09/2009, of June 26, creating the Fondo de Reestructuración Ordenada Bancaria (FROB). FROB was created under the management of the Bank of Spain. It has two functions: the management of credit institutions’ restructuring processes and the strengthening of capital in certain merger processes. On 28 January 2010, the European Commission approved the FROB. Since then, aid from the FROB has been requested in connection with eight integration processes totaling €11.17 billion, and additional FROB funds for €392 billion were granted for the restructuring of Cajasur. |
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ITEM 4A. | UNRESOLVED STAFF COMMENTS |
ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
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• | The impairment on certain assets. | |
• | The assumptions used to quantify other provisions and for the actuarial calculation of the post-employment benefit liabilities and commitments. | |
• | The useful life and impairment losses of tangible and intangible assets. | |
• | The measurement of goodwill arising on consolidation. | |
• | The fair value of certain unlisted financial assets and liabilities. |
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A. | Operating Results |
Average Exchange Rates | Period-end Exchange Rates | |||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | As of | As of | As of | |||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
Mexican peso | 16.75 | 18.80 | 16.29 | 16.55 | 18.92 | 19.23 | ||||||||||||||||||
U.S.dollar | 1.33 | 1.39 | 1.47 | 1.34 | 1.44 | 1.39 | ||||||||||||||||||
Argentine peso | 5.19 | 5.26 | 4.71 | 5.49 | 5.56 | 4.92 | ||||||||||||||||||
Chilean peso | 675.92 | 777.60 | 762.78 | 625.39 | 730.46 | 885.74 | ||||||||||||||||||
Colombian peso | 2,517.50 | 2,976.19 | 2,857.14 | 2,557.54 | 2,941.18 | 3,125.00 | ||||||||||||||||||
Peruvian new sol | 3.75 | 4.19 | 4.29 | 3.75 | 4.16 | 4.37 | ||||||||||||||||||
Venezuelan bolivar | 5.63 | 3.00 | 3.16 | 5.74 | 3.09 | 2.99 |
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Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Interest and similar income | 21,134 | 23,775 | (11.1 | ) | ||||||||
Interest expense and similar charges | (7,814 | ) | (9,893 | ) | (21.0 | ) | ||||||
Net interest income | 13,320 | 13,882 | (4.0 | ) | ||||||||
Dividend income | 529 | 443 | 19.3 | |||||||||
Share of profit or loss of entities accounted for using the equity method | 335 | 120 | 180.1 | |||||||||
Fee and commission income | 5,382 | 5,305 | 1.5 | |||||||||
Fee and commission expenses | (845 | ) | (875 | ) | (3.4 | ) | ||||||
Net gains (losses) on financial assets and liabilities | 1,441 | 892 | 61.4 | |||||||||
Net exchange differences | 453 | 652 | (30.6 | ) | ||||||||
Other operating income | 3,543 | 3,400 | 4.2 | |||||||||
Other operating expenses | (3,248 | ) | (3,153 | ) | 3.0 | |||||||
Gross income | 20,910 | 20,666 | 1.2 | |||||||||
Administration costs | (8,207 | ) | (7,662 | ) | 7.1 | |||||||
Personnel expenses | (4,814 | ) | (4,651 | ) | 3.5 | |||||||
General and administrative expenses | (3,392 | ) | (3,011 | ) | 12.7 | |||||||
Depreciation and amortization | (761 | ) | (697 | ) | 9.2 | |||||||
Provisions (net) | (482 | ) | (458 | ) | 5.4 | |||||||
Impairment losses on financial assets (net) | (4,718 | ) | (5,473 | ) | (13.8 | ) | ||||||
Net operating income | 6,742 | 6,376 | 5.7 | |||||||||
Impairment losses on other assets (net) | (489 | ) | (1,618 | ) | (69.8 | ) | ||||||
Gains (losses) on derecognized assets not classified as non-current assets held for sale | 41 | 20 | 106.4 | |||||||||
Negative goodwill | 1 | 99 | n.m. | |||||||||
Gains (losses) in non-current assets held for sale not classified as discontinued operations | 127 | 859 | (85.2 | ) | ||||||||
Income before tax | 6,422 | 5,736 | 12.0 | |||||||||
Income tax | (1,427 | ) | (1,141 | ) | 25.1 | |||||||
Income from continuing transactions | 4,995 | 4,595 | 8.7 | |||||||||
Income from discontinued transactions (net) | — | — | n.m. | |||||||||
Net income | 4,995 | 4,595 | 8.7 | |||||||||
Net income attributed to parent company | 4,606 | 4,210 | 9.4 | |||||||||
Net income attributed to non-controlling interests | 389 | 385 | 1.1 | |||||||||
(*) | EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004. | |
(1) | Not meaningful |
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Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Interest income | 21,134 | 23,775 | (11.1 | ) | ||||||||
Interest expense | (7,814 | ) | (9,893 | ) | (21.0 | ) | ||||||
Net interest income | 13,320 | 13,882 | (4.0 | ) | ||||||||
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Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Commitment fees | 133 | 97 | 37.1 | |||||||||
Contingent liabilities | 282 | 260 | 8.5 | |||||||||
Documentary credits | 45 | 42 | 7.1 | |||||||||
Bank and other guarantees | 237 | 218 | 8.7 | |||||||||
Arising from exchange of foreign currencies and banknotes | 19 | 14 | 35.7 | |||||||||
Collection and payment services | 2,500 | 2,573 | (2.8 | ) | ||||||||
Securities services | 1,651 | 1,636 | 0.9 | |||||||||
Counseling on and management of one-off transactions | 11 | 7 | 57.1 | |||||||||
Financial and similar counseling services | 60 | 43 | 39.5 | |||||||||
Factoring transactions | 29 | 27 | 7.4 | |||||||||
Non-banking financial products sales | 102 | 83 | 22.9 | |||||||||
Other fees and commissions | 595 | 565 | 5.3 | |||||||||
Fee and commission income | 5,382 | 5,305 | 1.5 | |||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Brokerage fees on lending and deposit transactions | 5 | 7 | (28.6 | ) | ||||||||
Fees and commissions assigned to third parties | 578 | 610 | (5.2 | ) | ||||||||
Other fees and commissions | 262 | 258 | 1.6 | |||||||||
Fee and commission expenses | 845 | 875 | (3.4 | ) | ||||||||
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Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Wages and salaries | 3,740 | 3,607 | 3.7 | |||||||||
Social security costs | 567 | 531 | 6.8 | |||||||||
Transfers to internal pension provisions | 37 | 44 | (15.9 | ) | ||||||||
Contributions to external pension funds | 84 | 68 | 23.5 | |||||||||
Other personnel expenses | 386 | 401 | (3.7 | ) | ||||||||
Personnel expenses | 4,814 | 4,651 | 3.5 | |||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Technology and systems | 563 | 577 | (2.4 | ) | ||||||||
Communications | 284 | 254 | 11.8 | |||||||||
Advertising | 345 | 262 | 31.7 | |||||||||
Property, fixtures and materials | 750 | 643 | 16.6 | |||||||||
Of which: | ||||||||||||
Rents expenses | 397 | 304 | 30.6 | |||||||||
Taxes other than income tax | 322 | 266 | 21.1 | |||||||||
Other expenses | 1,129 | 1,009 | 11.9 | |||||||||
Other administrative expenses | 3,393 | 3,011 | 12.7 | |||||||||
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For the Year Ended | ||||||||||||
December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(In millions of euros) | % | |||||||||||
Interest and similar income | 23,775 | 30,404 | (21.8 | ) | ||||||||
Interest expense and similar charges | (9,893 | ) | (18,718 | ) | (47.1 | ) | ||||||
Net interest income | 13,882 | 11,686 | 18.8 | |||||||||
Dividend income | 443 | 447 | (0.9 | ) | ||||||||
Share of profit or loss of entities accounted for using the equity method | 120 | 293 | (59.1 | ) | ||||||||
Fee and commission income | 5,305 | 5,539 | (4.2 | ) | ||||||||
Fee and commission expenses | (875 | ) | (1,012 | ) | (13.6 | ) | ||||||
Net gains (losses) on financial assets and liabilities | 892 | 1,328 | (32.8 | ) | ||||||||
Net exchange differences | 652 | 231 | 182.5 | |||||||||
Other operating income | 3,400 | 3,559 | (4.5 | ) | ||||||||
Other operating expenses | (3,153 | ) | (3,093 | ) | 1.9 | |||||||
Gross income | 20,666 | 18,978 | 8.9 | |||||||||
Administration costs | (7,662 | ) | (7,756 | ) | (1.2 | ) | ||||||
Personnel expenses | (4,651 | ) | (4,716 | ) | (1.4 | ) | ||||||
General and administrative expenses | (3,011 | ) | (3,040 | ) | (1.0 | ) | ||||||
Depreciation and amortization | (697 | ) | (699 | ) | (0.3 | ) | ||||||
Provisions (net) | (458 | ) | (1,431 | ) | (68.0 | ) | ||||||
Impairment on financial assets (net) | (5,473 | ) | (2,941 | ) | 86.1 | |||||||
Net operating income | 6,376 | 6,151 | 3.7 | |||||||||
Impairment on other assets (net) | (1,618 | ) | (45 | ) | n.m.(1 | ) | ||||||
Gains (losses) on derecognized assets not classified as non-current assets held for sale | 20 | 72 | (72.2 | ) | ||||||||
Negative goodwill | 99 | — | n.m.(1 | ) | ||||||||
Gains (losses) in non-current assets held for sale not classified as discontinued operations | 859 | 748 | 14.8 | |||||||||
Income before tax | 5,736 | 6,926 | (17.2 | ) | ||||||||
Income tax | (1,141 | ) | (1,541 | ) | (26.0 | ) | ||||||
Net income | 4,595 | 5,385 | (14.7 | ) | ||||||||
Net income attributed to parent company | 4,210 | 5,020 | (16.1 | ) | ||||||||
Net income attributed to non-controlling interest | 385 | 365 | 5.2 | |||||||||
(*) | EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004. | |
(1) | Not meaningful |
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For the Year Ended | ||||||||||||
December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(Millions of euros) | (%) | |||||||||||
Interest and similar income | 23,775 | 30,404 | (21.8 | ) | ||||||||
Interest expense and similar charges | (9,893 | ) | (18,718 | ) | (47.1 | ) | ||||||
Net interest income | 13,882 | 11,686 | 18.8 | |||||||||
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Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(Millions of euros) | (%) | |||||||||||
Commitment fees | 97 | 62 | 56.8 | |||||||||
Contingent Liabilities | 260 | 243 | 7.2 | |||||||||
Documentary credits | 42 | 45 | (6.5 | ) | ||||||||
Bank and other guarantees | 218 | 198 | 10.3 | |||||||||
Arising from exchange of foreign currencies and banknotes | 14 | 24 | (41.0 | ) | ||||||||
Collection and payment services | 2,573 | 2,655 | (3.1 | ) | ||||||||
Securities services | 1,636 | 1,895 | (13.7 | ) | ||||||||
Counseling on and management of one-off transactions | 7 | 9 | (22.9 | ) | ||||||||
Financial and similar counseling services | 43 | 24 | 80.8 | |||||||||
Factoring transactions | 27 | 28 | (4.0 | ) | ||||||||
Non-banking financial products sales | 83 | 96 | (13.2 | ) | ||||||||
Other fees and commissions | 565 | 503 | 12.4 | |||||||||
Fee and commission income | 5,305 | 5,539 | (4.2 | ) | ||||||||
Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(Millions of euros) | (%) | |||||||||||
Brokerage fees on lending and deposit transactions | 7 | 8 | (12.6 | ) | ||||||||
Fees and commissions assigned to third parties | 610 | 728 | (16.2 | ) | ||||||||
Other fees and commissions | 258 | 276 | (6.6 | ) | ||||||||
Fee and commission expenses | 875 | 1,012 | (13.6 | ) | ||||||||
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Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(Millions of euros) | (%) | |||||||||||
Wages and salaries | 3,607 | 3,593 | 0.4 | |||||||||
Social security costs | 531 | 566 | (6.2 | ) | ||||||||
Transfers to internal pension provisions | 44 | 56 | (21.5 | ) | ||||||||
Contributions to external pension funds | 68 | 71 | (3.9 | ) | ||||||||
Other personnel expenses | 401 | 430 | (6.8 | ) | ||||||||
Personnel expenses | 4,651 | 4,716 | (1.4 | ) | ||||||||
Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(Millions of euros) | (%) | |||||||||||
Technology and systems | 577 | 598 | (3.5 | ) | ||||||||
Communications | 254 | 260 | (2.1 | ) | ||||||||
Advertising | 262 | 273 | (4.2 | ) | ||||||||
Property, fixtures and materials | 643 | 617 | 4.2 | |||||||||
Of which: | ||||||||||||
Rents expenses | 304 | 268 | 13.5 | |||||||||
Taxes other than income tax | 266 | 295 | (9.7 | ) | ||||||||
Other expenses | 1,009 | 997 | 1.2 | |||||||||
General and administrative expenses | 3,011 | 3,040 | (1.0 | ) | ||||||||
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Year Ended December 31, | Change | |||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 4,675 | 4,910 | (4.8 | ) | ||||||||
Net fees and commissions | 1,388 | 1,482 | (6.4 | ) | ||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 198 | 187 | 6.0 | |||||||||
Other operating income and expenses (net) | 368 | 436 | (15.7 | ) | ||||||||
Gross income | 6,629 | 7,015 | (5.5 | ) | ||||||||
Administrative costs | (2,481 | ) | (2,515 | ) | (1.4 | ) | ||||||
Depreciation and amortization | (103 | ) | (105 | ) | (1.9 | ) | ||||||
Impairment on financial assets (net) | (1,335 | ) | (1,931 | ) | (30.9 | ) | ||||||
Provisions (net) and other gains (losses) | 238 | 776 | (69.4 | ) | ||||||||
Income before tax | 2,948 | 3,240 | (9.0 | ) | ||||||||
Income tax | (878 | ) | (965 | ) | (9.0 | ) | ||||||
Net income | 2,070 | 2,275 | (9.0 | ) | ||||||||
Net income attributed to non-controlling interests | — | — | — | |||||||||
Net income attributed to parent company | 2,070 | 2,275 | (9.0 | ) | ||||||||
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Year Ended December 31, | Change | |||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 3,688 | 3,307 | 11.5 | |||||||||
Net fees and commissions | 1,233 | 1,077 | 14.5 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 395 | 370 | 6.6 | |||||||||
Other operating income and expenses (net) | 179 | 116 | 54.8 | |||||||||
Gross income | 5,496 | 4,870 | 12.8 | |||||||||
Administrative costs | (1,813 | ) | (1,489 | ) | 21.8 | |||||||
Depreciation and amortization | (86 | ) | (65 | ) | 32.5 | |||||||
Impairment on financial assets (net) | (1,229 | ) | (1,525 | ) | (19.4 | ) | ||||||
Provisions (net) and other gains (losses) | (87 | ) | (21 | ) | n.m (1 | ) | ||||||
Income before tax | 2,281 | 1,770 | 28.8 | |||||||||
Income tax | (570 | ) | (411 | ) | 38.8 | |||||||
Net income | 1,711 | 1,360 | 25.8 | |||||||||
Net income attributed to non-controlling interests | (4 | ) | (2 | ) | 89.5 | |||||||
Net income attributed to parent company | 1,707 | 1,357 | 25.7 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 2,495 | 2,566 | (2.8 | ) | ||||||||
Net fees and commissions | 957 | 908 | 5.4 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 514 | 405 | 26.7 | |||||||||
Other operating income and expenses (net) | (168 | ) | (242 | ) | (30.7 | ) | ||||||
Gross income | 3,797 | 3,637 | 4.4 | |||||||||
Administrative costs | (1,537 | ) | (1,464 | ) | 5.0 | |||||||
Depreciation and amortization | (131 | ) | (115 | ) | 14.1 | |||||||
Impairment on financial assets (net) | (419 | ) | (431 | ) | (2.8 | ) | ||||||
Provisions (net) and other gains (losses) | (40 | ) | (52 | ) | (22.1 | ) | ||||||
Income before tax | 1,670 | 1,575 | 6.0 | |||||||||
Income tax | (397 | ) | (404 | ) | (1.7 | ) | ||||||
Net income | 1,273 | 1,172 | 8.6 | |||||||||
Net income attributed to non-controlling interests | (383 | ) | (392 | ) | (2.1 | ) | ||||||
Net income attributed to parent company | 889 | 780 | 14.0 | |||||||||
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Year Ended December 31, | Change | |||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 1,794 | 1,679 | 6.8 | |||||||||
Net fees and commissions | 646 | 610 | 5.8 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 156 | 156 | 0.1 | |||||||||
Other operating income and expenses (net) | (49 | ) | (33 | ) | 49.4 | |||||||
Gross income | 2,546 | 2,413 | 5.5 | |||||||||
Administrative costs | (1,318 | ) | (1,159 | ) | 13.7 | |||||||
Depreciation and amortization | (199 | ) | (205 | ) | (3.1 | ) | ||||||
Impairment on financial assets (net) | (703 | ) | (1,420 | ) | (50.5 | ) | ||||||
Provisions (net) and other gains (losses) | (22 | ) | (1,056 | ) | (97.9 | ) | ||||||
Income before tax | 304 | (1,428 | ) | n.m | (1) | |||||||
Income tax | (68 | ) | 478 | n.m | (1) | |||||||
Net income | 236 | (950 | ) | n.m | (1) | |||||||
Net income attributed to non-controlling interests | — | — | — | |||||||||
Net income attributed to parent company | 236 | (950 | ) | n.m | (1) |
(1) | Not meaningful |
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Year Ended December 31, | Change | |||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 831 | 982 | (15.4 | ) | ||||||||
Net fees and commissions | 492 | 461 | 6.8 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | (66 | ) | (59 | ) | 13.1 | |||||||
Other operating income and expenses (net) | 500 | 314 | 59.2 | |||||||||
Gross income | 1,758 | 1,699 | 3.4 | |||||||||
Administrative costs | (492 | ) | (476 | ) | 3.5 | |||||||
Depreciation and amortization | (9 | ) | (10 | ) | (7.6 | ) | ||||||
Impairment on financial assets (net) | (116 | ) | (60 | ) | 92.9 | |||||||
Provisions (net) and other gains (losses) | 2 | (4 | ) | n.m | (1) | |||||||
Income before tax | 1,143 | 1,150 | (0.6 | ) | ||||||||
Income tax | (192 | ) | (294 | ) | (34.8 | ) | ||||||
Net income | 951 | 856 | 11.2 | |||||||||
Net income attributed to non-controlling interests | (2 | ) | (3 | ) | (53.2 | ) | ||||||
Net income attributed to parent company | 950 | 852 | 11.4 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2010 | 2009 | 2010/2009 | ||||||||||
(in millions of euros) | (in %) | |||||||||||
Net interest income | (163 | ) | 437 | n.m | (1) | |||||||
Net fees and commissions | (179 | ) | (108 | ) | 65.4 | |||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 698 | 484 | 44.2 | |||||||||
Other operating income and expenses (net) | 329 | 219 | 50.0 | |||||||||
Gross income | 684 | 1,031 | (33.7 | ) | ||||||||
Administrative costs | (566 | ) | (559 | ) | 1.3 | |||||||
Depreciation and amortization | (232 | ) | (197 | ) | 18.1 | |||||||
Impairment on financial assets (net) | (916 | ) | (107 | ) | n.m | (1) | ||||||
Provisions (net) and other gains (losses) | (893 | ) | (741 | ) | 20.5 | |||||||
Income before tax | (1,924 | ) | (572 | ) | 236.3 | |||||||
Income tax | 678 | 454 | 49.3 | |||||||||
Net income | (1,246 | ) | (118 | ) | n.m | (1) | ||||||
Net income attributed to non-controlling interests | 0 | 13 | (97.8 | ) | ||||||||
Net income attributed to parent company | (1,245 | ) | (105 | ) | n.m | (1) | ||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(in millions of euros) | (in %) | |||||||||||
Net interest income | 4,910 | 4,784 | 2.6 | |||||||||
Net fees and commissions | 1,482 | 1,636 | (9.4 | ) | ||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 187 | 231 | (18.9 | ) | ||||||||
Other operating income and expenses (net) | 436 | 430 | 1.4 | |||||||||
Gross income | 7,015 | 7,081 | (0.9 | ) | ||||||||
Administrative costs | (2,515 | ) | (2,622 | ) | (4.1 | ) | ||||||
Depreciation and amortization | (105 | ) | (104 | ) | 1.1 | |||||||
Impairment on financial assets (net) | (1,931 | ) | (809 | ) | 138.7 | |||||||
Provisions (net) and other gains (losses) | 776 | 5 | n.m. | (1) | ||||||||
Income before tax | 3,240 | 3,553 | (8.8 | ) | ||||||||
Income tax | (965 | ) | (1,080 | ) | (10.7 | ) | ||||||
Net income | 2,275 | 2,473 | (8.0 | ) | ||||||||
Net income attributed to non-controlling interests | — | — | — | |||||||||
Net income attributed to parent company | 2,275 | 2,473 | (8.0 | ) | ||||||||
(1) | Not meaningful |
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Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 3,307 | 3,707 | (10.8 | ) | ||||||||
Net fees and commissions | 1,077 | 1,189 | (9.4 | ) | ||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 370 | 375 | (1.3 | ) | ||||||||
Other operating income and expenses (net) | 116 | 155 | (25.5 | ) | ||||||||
Gross income | 4,870 | 5,426 | (10.2 | ) | ||||||||
Administrative costs | (1,489 | ) | (1,730 | ) | (14.0 | ) | ||||||
Depreciation and amortization | (65 | ) | (73 | ) | (10.6 | ) | ||||||
Impairment on financial assets (net) | (1,525 | ) | (1,110 | ) | 37.4 | |||||||
Provisions (net) and other gains (losses) | (21 | ) | (24 | ) | (11.6 | ) | ||||||
Income before tax | 1,770 | 2,488 | (28.9 | ) | ||||||||
Income tax | (411 | ) | (557 | ) | (26.3 | ) | ||||||
Net income | 1,360 | 1,931 | (29.6 | ) | ||||||||
Net income attributed to non-controlling interests | (2 | ) | (1 | ) | 45.1 | |||||||
Net income attributed to parent company | 1,357 | 1,930 | (29.7 | ) | ||||||||
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Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 2,566 | 2,149 | 19.4 | |||||||||
Net fees and commissions | 908 | 775 | 17.1 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 405 | 253 | 60.4 | |||||||||
Other operating income and expenses (net) | (242 | ) | 15 | n.m. | (1) | |||||||
Gross income | 3,637 | 3,192 | 14.0 | |||||||||
Administrative costs | (1,464 | ) | (1,314 | ) | 11.4 | |||||||
Depreciation and amortization | (115 | ) | (107 | ) | 7.8 | |||||||
Impairment on financial assets (net) | (431 | ) | (358 | ) | 20.4 | |||||||
Provisions (net) and other gains (losses) | (52 | ) | (17 | ) | n.m. | (1) | ||||||
Income before tax | 1,575 | 1,396 | 12.9 | |||||||||
Income tax | (404 | ) | (318 | ) | 27.0 | |||||||
Net income | 1,172 | 1,078 | 8.7 | |||||||||
Net income attributed to non-controlling interests | (392 | ) | (351 | ) | 11.6 | |||||||
Net income attributed to parent company | 780 | 727 | 7.3 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 1,679 | 1,471 | 14.2 | |||||||||
Net fees and commissions | 610 | 584 | 4.4 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 156 | 149 | 4.6 | |||||||||
Other operating income and expenses (net) | (33 | ) | 23 | n.m. | (1) | |||||||
Gross income | 2,413 | 2,227 | 8.3 | |||||||||
Administrative costs | (1,159 | ) | (1,140 | ) | 1.7 | |||||||
Depreciation and amortization | (205 | ) | (244 | ) | (15.9 | ) | ||||||
Impairment on financial assets (net) | (1,420 | ) | (379 | ) | n.m. | (1) | ||||||
Provisions (net) and other gains (losses) | (1,056 | ) | (17 | ) | n.m. | (1) | ||||||
Income before tax | (1,428 | ) | 447 | n.m. | (1) | |||||||
Income tax | 478 | (139 | ) | n.m. | (1) | |||||||
Net income | (950 | ) | 308 | n.m. | (1) | |||||||
Net income attributed to non-controlling interests | — | — | — | |||||||||
Net income attributed to parent company | (950 | ) | 308 | n.m. | (1) | |||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 982 | 618 | 59.1 | |||||||||
Net fees and commissions | 461 | 375 | 22.8 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | (59 | ) | 114 | n.m. | (1) | |||||||
Other operating income and expenses (net) | 314 | 406 | (22.6 | ) | ||||||||
Gross income | 1,699 | 1,513 | 12.3 | |||||||||
Administrative costs | (475 | ) | (449 | ) | 5.9 | |||||||
Depreciation and amortization | (10 | ) | (8 | ) | 17.0 | |||||||
Impairment on financial assets (net) | (60 | ) | (171 | ) | (65.0 | ) | ||||||
Provisions (net) and other gains (losses) | (4 | ) | 4 | n.m. | (1) | |||||||
Income before tax | 1,150 | 888 | 29.5 | |||||||||
Income tax | (294 | ) | (160 | ) | 84.0 | |||||||
Net income | 856 | 728 | 17.5 | |||||||||
Net income attributed to non-controlling interests | (3 | ) | (6 | ) | (44.9 | ) | ||||||
Net income attributed to parent company | 852 | 722 | 18.0 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2009 | 2008 | 2009/2008 | ||||||||||
(In millions of euros) | (in %) | |||||||||||
Net interest income | 437 | (1,043 | ) | n.m. | (1) | |||||||
Net fees and commissions | (108 | ) | (33 | ) | n.m. | (1) | ||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 484 | 437 | 10.8 | |||||||||
Other operating income and expenses (net) | 219 | 177 | 24.0 | |||||||||
Gross income | 1,031 | (462 | ) | n.m. | (1) | |||||||
Administrative costs | (559 | ) | (500 | ) | 11.7 | |||||||
Depreciation and amortization | (197 | ) | (163 | ) | 20.6 | |||||||
Impairment on financial assets (net) | (107 | ) | (113 | ) | n.m. | (1) | ||||||
Provisions (net) and other gains (losses) | (741 | ) | (608 | ) | 21.9 | |||||||
Income before tax | (572 | ) | (1,847 | ) | (69.0 | ) | ||||||
Income tax | 454 | 713 | (36.3 | ) | ||||||||
Net income | (118 | ) | (1,134 | ) | n.m. | (1) | ||||||
Net income attributed to non-controlling interests | 13 | (7 | ) | n.m. | (1) | |||||||
Net income attributed to parent company | (105 | ) | (1,140 | ) | n.m. | (1) | ||||||
(1) | Not meaningful. |
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B. | Liquidity and Capital Resources |
As of December 31, | As of December 31, | As of December 31, | ||||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
Customer deposits | 275,789 | 254,183 | 255,236 | |||||||||
Due to credit entities | 68,180 | 70,312 | 66,805 | |||||||||
Debt securities in issue | 102,599 | 117,817 | 121,134 | |||||||||
Other financial liabilities | 6,596 | 5,624 | 7,420 | |||||||||
Total | 453,164 | 447,936 | 450,595 | |||||||||
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Senior Debt | 2.9 years | |||
Subordinated Debt (excluding Preference Securities) | 8.5 years |
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(In millions of euros) | % | |||||||
Rating | ||||||||
Higher than AA | 35,293 | 56.23 | % | |||||
Of which: | ||||||||
Spain | 31,212 | 49.72 | % | |||||
AA or below | 27,475 | 43.77 | % | |||||
Of which: | ||||||||
Mexico | 17,665 | 28.14 | % | |||||
Italy | 4,229 | 6.74 | % | |||||
Portugal | 58 | 0.09 | % | |||||
Ireland | — | — | ||||||
Greece | 107 | 0.17 | % | |||||
Total | 62,768 | 100 | % | |||||
C. | Research and Development, Patents and Licenses, etc. |
D. | Trend Information |
• | the prolonged downturn in the Spanish economy and sustained unemployment above historical averages; | |
• | the restructuring of the Spanish banking sector, specially with concentration in savings banks; | |
• | doubts about European peripheral economies will probably continue in 2011, so financial markets will remain closed; | |
• | uncertainties relating to the sustainability of any recovery in economic growth and interest rate cycles, especially in the United States, where the high current account deficit of the U.S. economy may translate into an upward adjustment of risk premium and higher global interest rates; | |
• | the fragility of the recovery from the financial crisis triggered by defaults on subprime mortgages and related asset-backed securities in the United States which has significantly disrupted the liquidity of financial institutions and markets; |
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• | the fragility of the Greek, Portuguese and Irish economies, which could affect the funding costs of Spanish financial institutions and of the Government; | |
• | the effects of the withdrawal of significant monetary and fiscal stimulus programs and uncertainty over government responses to growing public deficits; | |
• | uncertainty over regulation of the financial industry, including the potential limitation on the size or scope of the activities of certain financial institutions or additional capital requirements, coming both from the Bank of Spain or globally; | |
• | uncertainty over the minimum solvency levels to be required to the financial institutions by the Spanish government; | |
• | the continued downward adjustment in the housing sector in Spain, which could further negatively affect credit demand and household wealth, disposable income and consumer confidence. The existence of a significant over supply in the housing market in Spain and the pessimistic expectations about house price increases are likely to postpone investment decisions, therefore negatively affecting mortgage growth rates; | |
• | continued volatility in capital markets or a downturn in investor confidence, linked to factors such as geopolitical risk, particularly given the environment in the Middle East. Continued or new crises in the region could cause an increase in oil prices, generating inflationary pressures that will have a negative effect on interest rates and economic growth; | |
• | the effect that an economic slowdown may have over Latin American markets and fluctuations in local interest and exchange rates; and | |
• | although it is foreseeable that entry barriers to domestic markets in Europe will be lowered, our plans for expansion into other European markets could be affected by entry barriers in such countries and by protectionist policies of national governments, which are generally higher in times of crisis. |
E. | Off-Balance Sheet Arrangements |
As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
Contingent liabilities: | ||||||||||||
Rediscounts, endorsements and acceptances | 49 | 45 | 81 | |||||||||
Guarantees and other sureties | 28,092 | 26,266 | 27,649 | |||||||||
Other contingent liabilities | 8,300 | 6,874 | 8,222 | |||||||||
Total contingent liabilities | 36,441 | 33,185 | 35,952 | |||||||||
Commitments: | ||||||||||||
Balances drawable by third parties: | ||||||||||||
Credit entities | 2,303 | 2,257 | 2,021 | |||||||||
Public authorities | 4,135 | 4,567 | 4,221 | |||||||||
Other domestic customers | 27,201 | 29,604 | 37,529 | |||||||||
Foreign customers | 53,151 | 48,497 | 48,892 | |||||||||
Total balances drawable by third parties | 86,790 | 84,925 | 92,663 | |||||||||
Other commitments | 3,784 | 7,398 | 6,234 | |||||||||
Total commitments | 90,574 | 92,323 | 98,897 | |||||||||
Total contingent liabilities and commitments | 127,015 | 125,508 | 134,849 | |||||||||
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
Mutual funds | 41,006 | 39,849 | 37,076 | |||||||||
Pension funds | 72,598 | 57,264 | 42,701 | |||||||||
Other managed assets | 25,435 | 26,501 | 24,582 | |||||||||
Total | 139,039 | 123,614 | 104,359 | |||||||||
F. | Tabular Disclosure of Contractual Obligations |
Less Than One | One to Three | Three to Five | Over Five | |||||||||||||||||
Year | Years | Years | Years | Total | ||||||||||||||||
(In millions of euros) | ||||||||||||||||||||
Senior debt | 23,462 | 8,938 | 33,969 | 15,843 | 82,212 | |||||||||||||||
Subordinated debt | 788 | 948 | 1,784 | 13,251 | 16,771 | |||||||||||||||
Capital lease obligations | — | — | — | — | ||||||||||||||||
Operating lease obligations | 144 | 71 | 29 | 89 | 332 | |||||||||||||||
Purchase obligations | 26 | — | — | 26 | ||||||||||||||||
Total(*) | 24,420 | 9,956 | 35,782 | 29,183 | 99,341 | |||||||||||||||
(*) | Interest to be paid is not included. The majority of the senior and subordinated debt was issued at variable rates. The financial cost of such issuances for 2010, 2009 and 2008 is detailed in Note 39.2 to the Consolidated Financial Statements. Commitments with personnel for 2010, 2009 and 2008 are detailed in Note 26 to the Consolidated Financial Statements. The breakdown by maturities of customer deposits for 2010, 2009 and 2008 is provided in Note 7 to the Consolidated Financial Statements. |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
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A. | Directors and Senior Management |
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• | When barred (on grounds of incompatibility or other) under prevailing legal regulations, under the bylaws or under the directors’ charter. | |
• | When significant changes occur in their professional situation or that may affect the condition by virtue of which they were appointed to the Board. | |
• | When they are in serious dereliction of their duties as directors. | |
• | When the director, acting as such, has caused severe damage to the Company’s assets or its reputation or credit,and/or no longer displays the commercial and professional honor required to hold a Bank directorship. |
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Present Principal | ||||||||||||||
Outside Occupation | ||||||||||||||
Date | and Employment | |||||||||||||
Name | Birth Year | Current Position | Date Nominated | Re-elected | History(*) | |||||||||
Francisco González Rodríguez(1) | 1944 | Chairman and Chief Executive Officer | January 28, 2000 | March 12, 2010 | Chairman and CEO of BBVA, since January 2000. Director of Grupo Financiero BBVA Bancomer, S.A. de C.V. and BBVA Bancomer S.A. | |||||||||
Angel Cano Fernández(1) | 1961 | President and Chief Operating Officer | September 29, 2009 | March 12, 2010 | President and Chief Operating Officer, BBVA, since 2009. Substitute director of Grupo Financiero BBVA Bancomer and BBVA Bancomer, S.A. de C.V. Citic Bank board member. BBVA Director of Resources and Means from 2005 to 2009. | |||||||||
Tomás Alfaro Drake(2)(3) | 1951 | Independent Director | March 18, 2006 | March 11, 2011 | Chairman of the Appointments Committee of BBVA since May 25, 2010. Director of Business Management and Administration and Business Sciences programs at Universidad Francisco de Vitoria since 1998. | |||||||||
Juan Carlos Álvarez Mezquíriz(1)(4) | 1959 | Independent Director | January 28, 2000 | March 11, 2011 | Managing Director of Grupo El Enebro, S.A. Former Manager Director of Grupo Eulen. S.A. until 2010. | |||||||||
Ramón Bustamante y de la Mora(2)(5) | 1948 | Independent Director | January 28, 2000 | March 12, 2010 | Was Director and General Manager and Non-Executive Vice-President of Argentaria and Chairman of Unitaria (1997). | |||||||||
José Antonio Fernández Rivero(3)(5) | 1949 | Independent Director | February 28, 2004 | March 13, 2009 | Chairman of Risk Committee since March 30, 2004; On 2001 was appointed Group General Manager, until January 2003. Has been director representing BBVA on the Boards of Telefónica, Iberdrola, and of Banco de Crédito Local, and Chairman of Adquira. | |||||||||
Ignacio Ferrero Jordi(1)(4) | 1945 | Independent Director | January 28, 2000 | March 12, 2010 | Chief Operating Officer of Nutrexpa, S.A. and La Piara, S.A. Chairman of Aneto Natural. | |||||||||
Carlos Loring Martínez de Irujo(2)(4) | 1947 | Independent Director | February 28, 2004 | March 11, 2011 | Chairman of the Compensation Committee of BBVA since May 2010 (former Chairman of the Appointments and Compensation Committee since April 2006). Was Partner of J&A Garrigues, from 1977 until 2004. | |||||||||
José Maldonado Ramos (3)(4)(5) | 1952 | External Director | January 28, 2000 | March 13, 2009 | Was appointed Director and General Secretary of BBVA, in January 2000. Took early retirement as Bank executive in December 2009. | |||||||||
Enrique Medina Fernández(1)(5) | 1942 | Independent Director | January 28, 2000 | March 13, 2009 | State Attorney on Sabbatical. Deputy Chairman of Gines Navarro Construcciones until it merged to become Grupo ACS. | |||||||||
José Luis Palao García-Suelto(2) | 1944 | Independent Director | February 1, 2011 | March 11, 2011 | Chairman of the Audit and Compliance Committee of BBVA since March 29, 2011. Senior Partner of the Financial Division in Spain at Arthur Andersen, from 1979 until 2002. Freelance consultant, from 2002 to 2010. | |||||||||
Susana Rodríguez Vidarte(2)(3)(4) | 1955 | Independent Director | May 28, 2002 | March 11, 2011 | Was Dean of Deusto “La Comercial” University 1996-2009. Member of the accounts auditing institute. |
(*) | Where no date is provided, the position is currently held. |
(1) | Member of the Executive Committee. | |
(2) | Member of the Audit and Compliance Committee. | |
(3) | Member of the Appointments Committee. | |
(4) | Member of the Compensation Committee. | |
(5) | Member of the Risk Committee. |
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Present Principal Outside Occupation and | ||||
Name | Current Position | Employment History(*) | ||
Francisco González Rodríguez | Chairman and Chief Executive Officer | Chairman, BBVA, since January 2000. Director of Grupo Financiero BBVA Bancomer, S.A. de C.V. and BBVA Bancomer, S.A. | ||
Ángel Cano Fernández | President and Chief Operating Officer | Substitute director, Grupo Financiero BBVA Bancomer and BBVA Bancomer, S.A. de CV | ||
Eduardo Arbizu Lostao | Head of Legal, Tax, Audit and Compliance department | Head of Legal department of BBVA, since 2002; Chief Executive Officer, Barclays Bank Spain, 1997 to 2002. | ||
Manuel González Cid | Head of Finance Division | Deputy General Manager, BBVA — Head of the Merger Office, 1999 to 2001. Head of Corporate Development, BBVA, 2001 to 2002. Director and Vice president of Repsol YPF, S.A. 2003-2005. | ||
José María García Meyer-Dohner | Head of Global Retail Business Banking | BBVA Business Management and Coordination Manager for Mexico, 2000-2001. Commercial Banking Manager for BBVA Bancomer, 2001-2004. From 2004 Head of USA, Country Manager and Chairman of BBVA Compass. Global Retail Business Banking since 2010. | ||
Ignacio Deschamps González | Head of Mexico | Commercial Banking Director for BBVA Bancomer to 2006. General Director of BBVA Bancomer since December 2006. | ||
Juan Asúa Madariaga | Head of Corporate and Business -Spain and Portugal | Global Corporate Banking Director, BBVA, 2000. E-Commerce Director, BBVA, 2000-2001. Corporate Global Banking Director, BBVA, 2001-2005. | ||
Jose Barreiro Hernández | Head of Wholesale Banking and Asset Management | Spanish Markets Director, BBVA, 2000-2001. Head of Global Markets and Distribution, Trading and Equity, BBVA, 2001-2005. | ||
Vicente Rodero Rodero | Head of South America | BBVA Corporate Banking Director for Mexico, 1995-1999. BBVA Personal Banking Director, 1999-2003. BBVA Regional Director for Madrid, 2003-2004. BBVA Commercial Banking Director for Spain, 2004-2006. | ||
Carlos Torres Vila | Head of Strategy & Development | BBVA Corporate Strategy & Development Director since January 2009. He entered in BBVA on September 2008. Before he worked five years in Endesa as Strategy Corporate Director. | ||
Gregorio Panadero Illera | Head of Brand and Communication | From April 1, 2009, Head of BBVA Corporate Brand & Communications Department. Director of Communications and Corporate Responsibility at Grupo Ferrovial from 2006 to 2009. | ||
Manuel Castro Aladro | Head of Risk | Head of BBVA Risk Department since September 2009. Director of Innovation and Business Development from 2005 to 2009. | ||
Ramón Monell Valls | Head of Innovation & Technology | Head of BBVA Innovation and Technology since September 2009. From 2002-2005 Chief Operating Officer of BBVA in Chile. BBVA Director of Technology & Operations. (2006-2009). | ||
Juan Ignacio Apoita Gordo | Head of Human Resources & Services | BBVA Head of Human Resources and Services since September 2009 BBVA Head of Human Resources Director from 2006 to 2009. | ||
Manuel Sánchez Rodríguez | Head of United States | Working at BBVA since 1990. From 2002-2005 Risks Manager at BBVA Bancomer in Mexico. From 2005-2080 Laredo National Bank. CEO of BBVA Compass from 2008 and Country Manager from 2010. |
(*) | Where no date is provided, positions are currently held. |
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B. | Compensation |
Appointments | ||||||||||||||||||||||||||||||||
Audit and | and | |||||||||||||||||||||||||||||||
Executive | Compliance | Risk | Compensation | Appointments | Compensation | |||||||||||||||||||||||||||
Board | Committee | Committee | Committee | Committee(4) | Committee(5) | Committee(5) | Total | |||||||||||||||||||||||||
Tomás Alfaro Drake | 129 | — | 71 | — | — | 59 | — | 259 | ||||||||||||||||||||||||
Juan Carlos Álvarez Mezquiriz | 129 | 167 | — | — | 18 | — | 25 | 339 | ||||||||||||||||||||||||
Rafael Bermejo Blanco(*) | 129 | — | 179 | 107 | — | — | — | 415 | ||||||||||||||||||||||||
Ramón Bustamante y de La Mora | 129 | — | 71 | 107 | — | — | — | 307 | ||||||||||||||||||||||||
José Antonio Fernández Rivero(1) | 129 | — | — | 214 | — | 23 | — | 366 | ||||||||||||||||||||||||
Ignacio Ferrero Jordi | 129 | 167 | — | — | 18 | — | 25 | 339 | ||||||||||||||||||||||||
Carlos Loring Martínez de Irujo | 129 | — | 71 | — | 45 | — | 62 | 307 | ||||||||||||||||||||||||
José Maldonado Ramos | 129 | — | — | 107 | — | 23 | 25 | 284 | ||||||||||||||||||||||||
Enrique Medina Fernández | 129 | 167 | — | 107 | — | — | — | 403 | ||||||||||||||||||||||||
Susana Rodríguez Vidarte | 129 | — | 71 | — | 18 | 23 | 25 | 266 | ||||||||||||||||||||||||
Total(3) | 1,290 | 501 | 463 | 642 | 99 | 128 | 162 | 3,284 | ||||||||||||||||||||||||
(1) | José Antonio Fernández Rivero, apart from the amounts listed in the previous table, also received a total of €652 thousand during 2010 in early retirement payments as a former member of the BBVA management. | |
(2) | José Maldonado Ramos, who stood down as a BBVA executive on December 22, 2009, apart from the amounts shown in the previous table, also received a total of €805 thousand during 2010 as variable remuneration accrued during 2009 for his former position as BBVA Secretary. | |
(3) | Roman Knörr Borrás, who stood down as director on March 23, 2010, received a total of €74 thousand in 2010 as remuneration for belonging to the Board of Directors and the Executive Committee until that date. | |
(4) | Under a Board of Directors resolution of May 25, 2010, two new Board committees were set up, the Appointments Committee and the Compensation Committee, to replace the former Appointments & Compensation Committee. The amount included in the table above relates to amounts paid until the creation of the two new committees | |
(5) | The amount included in the table above relates to amounts paid since the creation of the new committees. | |
(*) | As previously mentioned, in the meeting held on March 29, 2011, the Board accepted the resignation of Mr. Rafael Bermejo Blanco as member of the Board due to the fact that he had reached the age limit provided in the Regulations of the Board. |
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Fixed | Variable | |||||||||||
Remuneration | Remuneration(*) | Total (**) | ||||||||||
Chairman and CEO | 1,928 | 3,388 | 5,316 | |||||||||
President and COO | 1,249 | 1,482 | 2,731 | |||||||||
Total | 3,177 | 4,870 | 8,046 |
(*) | Figures for the variable pay from 2009 received in 2010. | |
(**) | The remuneration paid to the current President and COO, who was appointed on September 29, 2009, includes the amount payable as Head of Resources & Systems for the time he occupied this position (9 months) and the remuneration earned as President and COO since his appointment. |
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Theoretical | Accumulated | |||||||
Directors | Shares | Theoretical Shares | ||||||
Tomás Alfaro Drake | 3,521 | 13,228 | ||||||
Juan Carlos Álvarez Mezquíriz | 5,952 | 39,463 | ||||||
Rafael Bermejo Blanco(*) | 7,286 | 23,275 | ||||||
Ramón Bustamante y de la Mora | 5,401 | 38,049 | ||||||
José Antonio Fernández Rivero | 6,026 | 30,141 | ||||||
Ignacio Ferrero Jordi | 5,952 | 40,035 | ||||||
Carlos Loring Martínez de Irujo | 5,405 | 25,823 | ||||||
Enrique Medina Fernández | 7,079 | 51,787 | ||||||
Susana Rodríguez Vidarte | 4,274 | 24,724 | ||||||
Total(**) | 50,896 | 286,525 | ||||||
(*) | As previously mentioned, in the meeting held on March 29, 2011, the Board accepted the resignation of Mr. Rafael Bermejo Blanco as member of the Board due to the fact that he had reached the age limit provided in the Regulations of the Board. |
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(**) | Additionally 5,198 shares were assigned to Mr. Roman Knörr Borrás who resigned as a member of the Board in the meeting held on March 23, 2010, as he had reached the age limit provided in the Board regulations. |
C. | Board Practices |
Chairman and Chief Executive Officer: | Mr. Francisco González Rodríguez | |
President and Chief Operating Officer: | Mr. Ángel Cano Fernandez | |
Members: | Mr. Juan Carlos Álvarez Mezquíriz | |
Mr. Ignacio Ferrero Jordi | ||
Mr. Enrique Medina Fernández |
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Chairman: | Mr. José Luis Palao García-Suelto | |
Members: | Mr. Tomás Alfaro Drake | |
Mr. Ramón Bustamante y de la Mora | ||
Mr. Carlos Loring Martínez de Irujo | ||
Mrs. Susana Rodríguez Vidarte |
• | Report to the General Meeting on matters that are raised at its meetings on matters within its competence. | |
• | Supervise the efficacy of the Company’s internal control and oversight, internal audit, where applicable, and the risk-management systems, and discuss with the auditors or audit firms any significant issues in the internal control system detected when the audit is conducted. | |
• | Supervise the process of drawing up and reporting regulatory financial information. | |
• | Propose the appointment of auditors or audit firms to the Board of Directors for it to submit the proposal to the General Meeting, in accordance with applicable regulations. | |
• | Establish correct relations with the auditors or audit firms in order to receive information on any matters that may jeopardize their independence, for examination by the committee, and any others that have to do with the process of auditing the accounts; as well as those other communications provided for in laws and standards of audit. It must unfailingly receive written confirmation by the auditors or audit firms each year of their independence with regard to the entity or entities directly or indirectly related to it and information on additional services of any kind provided to these entities by said auditors or audit firms, or by persons or entities linked to them as provided under Law 19/1988, July 12, on the auditing of accounts. | |
• | Each year, before the audit report is issued, to put out a report expressing an opinion on the independence of the auditors or audit firms. This report must, in all events, state the provision of any additional services referred to in the previous subsection. | |
• | Oversee compliance with applicable domestic and international regulations on matters related to money laundering, conduct on the securities markets, data protection and the scope of Group activities with respect to anti-trust regulations. Also to ensure that any requests for action or information made by official authorities in these matters are dealt with in due time and in due form. |
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• | Ensure that the internal codes of ethics and conduct and securities market trading, as they apply to Group personnel, comply with legislation and are appropriate for the Bank. | |
• | Especially to enforce compliance with provisions contained in BBVA Director’s Charter, and ensure that directors satisfy applicable standards regarding their conduct on the securities markets. | |
• | Any others that may have been allocated under these regulations or attributed to the committee by a Board of Directors resolution. |
• | Ensuring that the auditors’ warnings, opinions and recommendations are followed. | |
• | Establishing the incompatibility between the provision of audit and the provision of consultancy services, unless there are no alternatives in the market to the auditors or companies in the auditors’ group of equal value in terms of their content, quality or efficiency. In such event, the committee must grant its approval, which can be done in advance by delegation to its chairman. |
Chairman: | Mr. Tomás Alfaro Drake | |
Members: | Mr. José Antonio Fernández Rivero | |
Mr. José Maldonado Ramos | ||
Mrs. Susana Rodríguez Vidarte |
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• | Draw up and report proposals for appointment and re-election of directors. |
• | Review the status of each director each year, so that this may be reflected in the annual report on corporate governance. | |
• | Report on the performance of the Chairman of the Board and, where applicable, the Company’s CEO, such that the Board can make its periodic assessment, under the terms established in the Board regulations. | |
• | Should the chairmanship of the Board or the post of CEO fall vacant, the committee will examine or organize, in the manner it deems suitable, the succession of the Chairmanand/or CEO and make corresponding proposals to the Board for an orderly, well-planned succession. | |
• | Report any appointment and separation of senior managers. | |
• | Any others that may have been allocated under the Board regulations or attributed to the committee by a Board of Directors resolution. |
Chairman: | Mr. Carlos Loring Martínez de Irujo | |
Members: | Mr. Juan Carlos Álvarez Mezquiriz | |
Mr. Ignacio Ferrero Jordi | ||
Mr. José Maldonado Ramos | ||
Mrs. Susana Rodríguez Vidarte |
• | Propose the remuneration system for the Board of Directors as a whole, in accordance with the principles established in the Company Bylaws. This committee will propose the items comprising the system, their amounts and method of payment. | |
• | Determine the extent and amount of the remuneration, entitlements and other economic rewards for the Chairman and CEO, the President and COO and, where applicable, other executive directors of the Bank, so that these can be reflected in their contracts. The Committee’s proposals on such matters will be submitted to the Board of Directors. |
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• | Issue a report on the directors’ remuneration policy each year. This will be submitted to the Board of Directors, which will apprise the Company’s Annual General Meeting each year. | |
• | Propose the remuneration policy for senior management to the Board, and the basic terms and conditions to be contained in their contracts. | |
• | Propose the remuneration policy to the Board for employees whose professional activities may have a significant impact on BBVA’s risk profile. | |
• | Oversee observance of the remuneration policy established by the Company and periodically review the remuneration policy applied to executive directors, senior management and employees whose professional activities may have a significant impact on the BBVA’s risk profile. | |
• | Any others that may have been allocated under the Board regulations or attributed to the committee by a Board of Directors resolution. |
Chairman: | Mr. José Antonio Fernández Rivero | |
Members: | Mr. Ramón Bustamante y de la Mora | |
Mr. José Maldonado Ramos | ||
Mr. Enrique Medina Fernández |
• | Analyze and evaluate proposals related to our risk management and oversight policies and strategy. In particular, these shall identify: |
b) | the setting of the level of risk considered acceptable according to the risk profile (expected loss) and capital map (risk capital) broken down by our businesses and areas of activity; |
• | Monitor the match between risks accepted and the profile established. | |
• | Assess and approve, where applicable, any risks whose size could compromise our capital adequacy or recurrent earnings, or that present significant potential operational or reputational risks. |
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• | Check that we possess the means, systems, structures and resources benchmarked against best practices to allow implementation of its risk management strategy. |
D. | Employees |
Country | BBVA | Banks | Companies | Total | ||||||||||||
Spain | 25,939 | 442 | 2,035 | 28,416 | ||||||||||||
United Kingdom | 93 | — | — | 93 | ||||||||||||
France | 94 | — | — | 94 | ||||||||||||
Italy | 53 | — | 226 | 279 | ||||||||||||
Germany | 40 | — | — | 40 | ||||||||||||
Switzerland | — | 128 | — | 128 | ||||||||||||
Portugal | — | 925 | — | 925 | ||||||||||||
Belgium | 40 | — | — | 40 | ||||||||||||
Russia | 4 | — | — | 4 | ||||||||||||
Ireland | — | 5 | — | 5 | ||||||||||||
Total Europe | 26,263 | 1,500 | 2,261 | 30,024 | ||||||||||||
United States | 165 | 11,975 | — | 12,140 | ||||||||||||
Panama | — | 345 | — | 345 | ||||||||||||
Puerto Rico | — | 865 | — | 865 | ||||||||||||
Argentina | — | 5,705 | — | 5,705 | ||||||||||||
Brazil | 3 | — | 17 | 20 | ||||||||||||
Colombia | — | 5,867 | — | 5,867 | ||||||||||||
Venezuela | — | 5,509 | — | 5,509 | ||||||||||||
Mexico | — | 34,082 | — | 34,082 | ||||||||||||
Uruguay | — | 200 | — | 200 | ||||||||||||
Paraguay | — | 372 | — | 372 | ||||||||||||
Bolivia | — | — | 209 | 209 | ||||||||||||
Chile | — | 5,413 | — | 5,413 | ||||||||||||
Cuba | 1 | — | — | 1 | ||||||||||||
Peru | — | 5,715 | — | 5,715 | ||||||||||||
Ecuador | — | — | 273 | 273 | ||||||||||||
Total Latin America | 4 | 64,073 | 499 | 64,576 | ||||||||||||
Hong Kong | 169 | — | — | 169 | ||||||||||||
Japan | 13 | — | — | 13 | ||||||||||||
China | 13 | — | 11 | 24 | ||||||||||||
Singapore | 17 | — | — | 17 | ||||||||||||
India | 2 | — | — | 2 | ||||||||||||
South Korea | 8 | — | — | 8 | ||||||||||||
Total Asia | 222 | — | 11 | 233 | ||||||||||||
Australia | 3 | — | — | 3 | ||||||||||||
Total Oceania | 3 | — | — | 3 | ||||||||||||
Total | 26,657 | 77,548 | 2,771 | 106,976 | ||||||||||||
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Country | BBVA | Banks | Companies | Total | ||||||||||||
Spain | 25,871 | 476 | 1,589 | 27,936 | ||||||||||||
United Kingdom | 89 | — | — | 89 | ||||||||||||
France | 94 | — | — | 94 | ||||||||||||
Italy | 55 | — | 208 | 263 | ||||||||||||
Germany | 35 | — | — | 35 | ||||||||||||
Switzerland | — | 113 | — | 113 | ||||||||||||
Portugal | — | 917 | — | 917 | ||||||||||||
Belgium | 37 | — | — | 37 | ||||||||||||
Russia | 4 | — | — | 4 | ||||||||||||
Ireland | — | 5 | — | 5 | ||||||||||||
Total Europe | 26,185 | 1,511 | 1,797 | 29,493 | ||||||||||||
United States | 136 | 12,166 | — | 12,302 | ||||||||||||
Panama | — | 308 | — | 308 | ||||||||||||
Puerto Rico | — | 777 | — | 777 | ||||||||||||
Argentina | — | 5,300 | — | 5,300 | ||||||||||||
Brazil | 3 | — | 17 | 20 | ||||||||||||
Colombia | — | 5,821 | — | 5,821 | ||||||||||||
Venezuela | — | 5,791 | — | 5,791 | ||||||||||||
Mexico | — | 32,580 | — | 32,580 | ||||||||||||
Uruguay | 20 | 185 | — | 205 | ||||||||||||
Paraguay | — | 250 | — | 250 | ||||||||||||
Bolivia | — | — | 207 | 207 | ||||||||||||
Chile | — | 5,039 | — | 5,039 | ||||||||||||
Cuba | 1 | — | — | 1 | ||||||||||||
Peru | — | 5,208 | — | 5,208 | ||||||||||||
Ecuador | — | — | 262 | 262 | ||||||||||||
Total Latin America | 24 | 61,259 | 486 | 61,769 | ||||||||||||
Hong Kong | 116 | — | — | 116 | ||||||||||||
Japan | 10 | — | — | 10 | ||||||||||||
China | 15 | — | — | 15 | ||||||||||||
Singapore | 9 | — | — | 9 | ||||||||||||
India | 2 | — | — | 2 | ||||||||||||
South Korea | 2 | — | — | 2 | ||||||||||||
Total Asia | 154 | — | — | 154 | ||||||||||||
Australia | 3 | — | — | 3 | ||||||||||||
Total Oceania | 3 | — | — | 3 | ||||||||||||
Total | 26,502 | 74,936 | 2,283 | 103,721 | ||||||||||||
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Country | BBVA | Banks | Companies | Total | ||||||||||||
Spain | 26,785 | 597 | 1,688 | 29,070 | ||||||||||||
United Kingdom | 98 | — | 6 | 104 | ||||||||||||
France | 97 | — | — | 97 | ||||||||||||
Italy | 58 | — | 194 | 252 | ||||||||||||
Germany | 26 | — | — | 26 | ||||||||||||
Switzerland | — | 118 | — | 118 | ||||||||||||
Portugal | — | 936 | — | 936 | ||||||||||||
Belgium | 38 | — | — | 38 | ||||||||||||
Jersey | — | 3 | — | 3 | ||||||||||||
Russia | 4 | — | — | 4 | ||||||||||||
Ireland | — | 4 | — | 4 | ||||||||||||
Total Europe | 27,106 | 1,658 | 1,888 | 30,652 | ||||||||||||
United States | 168 | 12,479 | — | 12,647 | ||||||||||||
Panama | — | 312 | — | 312 | ||||||||||||
Puerto Rico | — | 910 | — | 910 | ||||||||||||
Argentina | — | 5,648 | — | 5,648 | ||||||||||||
Brazil | 4 | — | 14 | 18 | ||||||||||||
Colombia | — | 6,093 | — | 6,093 | ||||||||||||
Venezuela | — | 6,295 | — | 6,295 | ||||||||||||
Mexico | — | 34,535 | — | 34,535 | ||||||||||||
Uruguay | 46 | 171 | — | 217 | ||||||||||||
Paraguay | — | 212 | — | 212 | ||||||||||||
Bolivia | — | — | 197 | 197 | ||||||||||||
Chile | — | 5,325 | — | 5,325 | ||||||||||||
Cuba | 1 | — | — | 1 | ||||||||||||
Peru | — | 5,553 | — | 5,553 | ||||||||||||
Ecuador | — | — | 216 | 216 | ||||||||||||
Total Latin America | 51 | 65,054 | 427 | 65,532 | ||||||||||||
Hong Kong | 107 | — | — | 107 | ||||||||||||
Japan | 9 | — | — | 9 | ||||||||||||
China | 7 | — | — | 7 | ||||||||||||
Singapore | 18 | — | — | 18 | ||||||||||||
Total Asia | 141 | — | — | 141 | ||||||||||||
Total | 27,466 | 79,191 | 2,315 | 108,972 | ||||||||||||
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E. | Share Ownership |
Directly | Indirectly | |||||||||||||||
Owned | Owned | Total | % Capital | |||||||||||||
Name | Shares | Shares | Shares | Stock | ||||||||||||
Gonzalez Rodríguez, Francisco | 395,585 | 1,944,213 | 2,339,798 | 0.052 | ||||||||||||
Cano Fernández, Ángel | 332,584 | — | 332,584 | 0.007 | ||||||||||||
Alfaro Drake, Tomás | 12,213 | — | 12,213 | 0.000 | ||||||||||||
Álvarez Mezquiriz, Juan Carlos | 170,927 | — | 170,927 | 0.004 | ||||||||||||
Bustamante y de la Mora, Ramon | 12,362 | 2,439 | 14,801 | 0.000 | ||||||||||||
Fernandez Rivero, José Antonio | 60,967 | — | 60,967 | 0.001 | ||||||||||||
Ferrero Jordi, Ignacio | 3,616 | 57,499 | 61,115 | 0.001 | ||||||||||||
Loring Martínez de Irujo, Carlos | 47,736 | — | 47,736 | 0.001 | ||||||||||||
Maldonado Ramos, José | 73,264 | — | 73,264 | 0.002 | ||||||||||||
Medina Fernández, Enrique | 39,991 | 1,505 | 41,496 | 0.001 | ||||||||||||
Palao García-Suelto, José Luis | 3,048 | — | 3,048 | 0.000 | ||||||||||||
Rodriguez Vidarte, Susana | 20,801 | 2,958 | 23,759 | 0.001 | ||||||||||||
TOTAL | 1,173,094 | 2,008,614 | 3,181,708 | 0.072 | ||||||||||||
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. | Major Shareholders |
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B. | Related Party Transactions |
• | overnight call deposits; | |
• | foreign exchange purchases and sales; | |
• | derivative transactions, such as forward purchases and sales; | |
• | money market fund transfers; | |
• | letters of credit for imports and exports; |
• | in the ordinary course of business; | |
• | on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons; and | |
• | did not involve more than the normal risk of collectability or present other unfavorable features. |
C. | Interests of Experts and Counsel |
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ITEM 8. | FINANCIAL INFORMATION |
A. | Consolidated Statements and Other Financial Information |
Per Share | ||||||||||||||||||||||||||||||||||||||||
First Interim | Second Interim | Third Interim | Final | Total | ||||||||||||||||||||||||||||||||||||
€ | $ | € | $ | € | $ | € | $ | € | $ | |||||||||||||||||||||||||||||||
2006 | € | 0.132 | $ | 0.174 | € | 0.132 | $ | 0.174 | € | 0.132 | $ | 0.174 | € | 0.241 | $ | 0.318 | € | 0.637 | $ | 0.841 | ||||||||||||||||||||
2007 | € | 0.152 | $ | 0.222 | € | 0.152 | $ | 0.222 | € | 0.152 | $ | 0.222 | € | 0.277 | $ | 0.405 | € | 0.733 | $ | 1.070 | ||||||||||||||||||||
2008 | € | 0.167 | $ | 0.232 | € | 0.167 | $ | 0.232 | € | 0.167 | $ | 0.232 | (* | ) | (* | ) | € | 0.501 | $ | 0.697 | ||||||||||||||||||||
2009 | € | 0.090 | $ | 0.129 | € | 0.090 | $ | 0.129 | € | 0.090 | $ | 0.129 | € | 0.150 | $ | 0.215 | € | 0.420 | $ | 0.602 | ||||||||||||||||||||
2010 | € | 0.090 | $ | 0.068 | € | 0.090 | $ | 0.068 | € | 0.090 | $ | 0.068 | (** | ) | (** | ) | € | 0.270 | $ | 0.203 |
(*) | On March 13, 2009, our shareholders approved the distribution of additional shareholder remuneration to complement the 2008 cash dividend in the form of an in-kind distribution of a portion of the share premium reserve. On April 20, 2009, our shareholders received BBVA shares from treasury stock in the proportion of one share for every 62 shares outstanding. Accordingly, the number of shares distributed was 60,451,115. | |
(**) | In execution of the “Dividendo Opción” described under “Item 4. Information on the Company — Supervision and Regulation — Dividends”, on March 29, 2011, the Board of Directors carried out thefree-of-charge capital increase approved by our shareholders in the General Shareholders Meeting of March 11, 2011. Thisfree-of-charge capital increase gives BBVA shareholders the option to receive one (1) newly-issued share of the Bank for each 59 shares of BBVA held by them or to receive a cash remuneration of €0.149 per share. For more information, please see BBVA’s report onForm 6-K furnished to the United States Securities Exchange Commission on March 29, 2011. |
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B. | Significant Changes |
ITEM 9. | THE OFFER AND LISTING |
A. | Offer and Listing Details |
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Euro per Share | ||||||||
High | Low | |||||||
Fiscal year ended December 31, 2006 | ||||||||
Annual | 19.49 | 14.91 | ||||||
Fiscal year ended December 31, 2007 | ||||||||
Annual | 20.08 | 15.60 | ||||||
Fiscal year ended December 31, 2008 | ||||||||
Annual | 16.58 | 7.16 | ||||||
Fiscal year ended December 31, 2009 | ||||||||
Annual | 13.17 | 4.68 | ||||||
First Quarter | 9.28 | 4.68 | ||||||
Second Quarter | 9.03 | 6.32 | ||||||
Third Quarter | 12.71 | 8.63 | ||||||
Fourth Quarter | 13.17 | 11.51 | ||||||
Fiscal year ended December 31, 2010 | ||||||||
Annual | 13.15 | 7.08 | ||||||
First Quarter | 13.15 | 9.39 | ||||||
Second Quarter | 11.32 | 7.41 | ||||||
Third Quarter | 10.79 | 8.48 | ||||||
Fourth Quarter | 9.99 | 7.08 | ||||||
Month ended September 30, 2010 | 10.32 | 9.76 | ||||||
Month ended October 31, 2010 | 9.99 | 9.34 | ||||||
Month ended November 30, 2010 | 9.21 | 7.08 | ||||||
Month ended December 31, 2010 | 8.15 | 7.56 | ||||||
Fiscal year ended December 31, 2011 | ||||||||
Month ended January 31, 2011 | 9.08 | 6.92 | ||||||
Month ended February 28, 2011 | 9.43 | 8.76 | ||||||
Month ended March 31, 2011 (through March 28) | 9.06 | 8.38 |
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U.S. Dollars per ADS | ||||||||
High | Low | |||||||
Fiscal year ended December 31, 2006 | ||||||||
Annual | 25.15 | 18.21 | ||||||
Fiscal year ended December 31, 2007 | ||||||||
Annual | 26.23 | 21.56 | ||||||
Fiscal year ended December 31, 2008 | ||||||||
Annual | 24.27 | 8.45 | ||||||
Fiscal year ended December 31, 2009 | ||||||||
Annual | 19.69 | 5.76 | ||||||
First Quarter | 12.66 | 5.76 | ||||||
Second Quarter | 12.73 | 8.44 | ||||||
Third Quarter | 18.16 | 12.09 | ||||||
Fourth Quarter | 19.69 | 16.74 | ||||||
Fiscal year ended December 31, 2010 | ||||||||
Annual | 18.99 | 8.87 | ||||||
First Quarter | 18.99 | 12.91 | ||||||
Second Quarter | 15.40 | 8.87 | ||||||
Third Quarter | 14.19 | 10.62 | ||||||
Fourth Quarter | 13.99 | 9.21 | ||||||
Month ended September 30, 2010 | 13.93 | 12.30 | ||||||
Month ended October 31, 2010 | 13.99 | 12.98 | ||||||
Month ended November 30, 2010 | 12.85 | 9.21 | ||||||
Month ended December 31, 2010 | 10.80 | 9.98 | ||||||
Fiscal year ended December 31, 2011 | ||||||||
Month ended January 31, 2011 | 12.45 | 9.03 | ||||||
Month ended February 28, 2011 | 12.95 | 11.95 | ||||||
Month ended March 31, 2011 (through March 28) | 12.83 | 11.53 |
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• | the trade involves more than €1.5 million and more than 40% of the average daily volume of the stock during the preceding three months; | |
• | the transaction derives from a merger or spin-off process or from the reorganization of a group of companies; | |
• | the transaction is executed for the purposes of settling a litigation or completing a complex group of contracts; or | |
• | theSociedad de Bolsasfinds other justifiable cause. |
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• | the participant appearing in the records of Iberclear as holding the relevant shares in its own name, or | |
• | the investor appearing in the records of the participant as holding the shares. |
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• | established an independent regulatory authority, the CNMV, to supervise the securities markets; | |
• | established a framework for the regulation of trading practices, tender offers and insider trading; | |
• | required stock exchange members to be corporate entities; | |
• | required companies listed on a Spanish Stock Exchange to file annual audited financial statements and to make public quarterly financial information; | |
• | established the legal framework for the Automated Quotation System; | |
• | exempted the sale of securities from transfer and value added taxes; | |
• | deregulated brokerage commissions; and | |
• | provided for transfer of shares by book-entry or by delivery of evidence of title. |
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B. | Plan of distribution |
C. | Markets |
D. | Selling Shareholders |
E. | Dilution |
F. | Expenses of the Issue |
ITEM 10. | ADDITIONAL INFORMATION |
A. | Share Capital |
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B. | Memorandum and Articles of Association |
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• | own at least 500 shares; | |
• | have registered their shares in the appropriate account registry at least five days prior to the date for which the general meeting has been convened; and | |
• | retain the ownership of at least 500 shares until the general shareholders’ meeting takes place. |
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• | issuances of debt; | |
• | capital increases or decreases; | |
• | the elimination on or limitation of the pre-emptive subscription rights over new shares; | |
• | transformation, merger of BBVA orbreak-up of the company and global assignment of assets and liabilities; | |
• | the off-shoring of domicile; and | |
• | any other amendment to the bylaws. |
C. | Material Contracts |
D. | Exchange Controls |
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• | the acquired shares will have no voting rights; and | |
• | if considered appropriate, the target bank may be taken over or its directors replaced and a sanction imposed. |
E. | Taxation |
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• | a citizen or a resident of the United States, | |
• | a corporation or other entity treated as a corporation, created or organized under the laws of the United States or any political subdivision thereof, or | |
• | an estate or trust the income of which is subject to United States federal income tax without regard to its source. |
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• | For purposes of the Spanish Non-Resident Income Tax on non-residents without a permanent establishment, the amount obtained for the transfer of thefree-of-charge allocation rights on the market is subject to the same treatment that tax regulations provide for pre-emptive rights. Accordingly, the amount obtained for the transfer of thefree-of-charge allocation rights decreases the acquisition value for tax purposes of the shares from which such rights derive, pursuant to Section 37.1.a) of Law 35/2006, of November 28, on Personal Income Tax (Ley del Impuesto sobre la Renta de las Personas Físicas). |
• | the corresponding Spanish tax form, | |
• | the certificate referred to in the preceding section, and | |
• | evidence of the Spanish Non-Resident Income Tax that was withheld with respect to you. |
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• | certain financial institutions; | |
• | dealers and traders who use amark-to-market method of accounting; | |
• | persons holding ADSs or ordinary shares as part of a hedging transaction, straddle, wash sale, conversion transaction or integrated transaction or persons entering into a constructive sale with respect to the ADSs or ordinary shares; | |
• | persons whose “functional currency” for U.S. federal income tax purposes is not the U.S. dollar; | |
• | persons liable for the alternative minimum tax; | |
• | tax-exempt entities; | |
• | partnerships or other entities classified as partnerships for U.S. federal income tax purposes; | |
• | persons holding ADSs or ordinary shares in connection with a trade or business conducted outside of the United States; | |
• | persons who acquired our ADSs or ordinary shares pursuant to the exercise of any employee stock option or otherwise as compensation; or | |
• | persons who own or are deemed to own 10% or more of our voting shares. |
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F. | Dividends and Paying Agents |
G. | Statement by Experts |
H. | Documents on Display |
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I. | Subsidiary Information |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
• | Credit risk: the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. | |
• | Market risks: the risks arising from the maintenance of financial instruments whose value may be affected by changes in market conditions. It includes three types of risk: |
— | Foreign-exchange risk: the risk resulting from variations in foreign exchange rates. | |
— | Interest-rate risk: the risk arising from variations in market interest rates. | |
— | Price risk: the risk resulting from variations in market prices in financial instruments, either due to factors specific to the instrument itself, or alternatively to factors which affect all the instruments traded on the market. |
• | Liquidity risk: this relates to the probability that a company cannot meet its payment commitments duly without having to resort to borrowing funds under onerous conditions, or damaging its image and reputation of the entity. |
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• | Interest rate risk: the potential loss in value of the portfolio due to movements in interest rate curves. We use all interest rate curves in which we have positions and risks exist. We also use a wide range of vertices reflecting the different maturities within each curve. | |
• | Credit spread risk: the potential loss in the value of corporate bonds or any corporate bond derivatives caused by movements in credit spreads for such instruments. Credit spread VaR is estimated by moving the credit spreads used as risk factors through a range of scenarios. The risk factors used in the simulation are credit spread curves by sector and by rating, and specific spread curves for individual issuers. | |
• | Exchange rate risk: the potential loss caused by movements in exchange rates. Exchange rate risk VaR is estimated by analyzing present positions with observed actual changes in exchange rates. | |
• | Equity or commodity risk: the potential loss caused by movements in equity prices, stock-market indices and commodity prices. Equity or commodity risk VaR is estimated by re-measuring present positions using actual changes in equity prices, stock-market indices and commodity prices. | |
• | Vega risk: the potential loss caused by movements in implied volatilities affecting the value of options. Vega (equities, interest rate and exchange rate) risk VaR is estimated by analyzing implied volatility surfaces with observed changes in the implied volatilities of equity, interest rate and exchange rate options. | |
• | Correlation risk: the potential loss caused by a disparity between the estimated and actual correlation between two assets, currencies, derivatives, instruments or markets. |
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Risk | December 31, 2010 | December 31, 2009 | ||||||
(In millions of euros) | ||||||||
Interest/Spread risk | 29.5 | 37.6 | ||||||
Exchange rate risk | 3.3 | 2.3 | ||||||
Equity risk | 4.2 | 8.9 | ||||||
Vega/Correlation risk | 11.6 | 15.4 | ||||||
Diversification effect | (21.0 | ) | (33.2 | ) | ||||
Total | 27.6 | 31.0 | ||||||
Average | 32.9 | 26.2 | ||||||
Maximum | 40.8 | 33.1 | ||||||
Minimum | 25.2 | 18.2 |
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
Financial assets held for trading | ||||||||||||
Debt securities | 24,358 | 34,672 | 26,556 | |||||||||
Government | 20,397 | 31,290 | 20,778 | |||||||||
Credit institutions | 2,274 | 1,384 | 2,825 | |||||||||
Other sectors | 1,687 | 1,998 | 2,953 | |||||||||
Trading derivatives | 33,665 | 29,278 | 40,946 |
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(Million euros)
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Impact on Net Interest Income | Impact on Economic Value (*) | |||||||
100 Basis-Point | 100 Basis-Point | 100 Basis-Point | 100 Basis-Point | |||||
Increase | Decrease | Increase | Decrease | |||||
BBVA Group | (0.43)% | +0.26% | (0.44)% | (0.91)% |
(*) | Percentage relating to equity. |
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Up to 1 | 1 to 3 | 3 to 12 | 1 to 5 | Over 5 | ||||||||||||||||||||||||
2010 | Demand | Month | Months | Months | Years | Years | Total | |||||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 17,275 | 1,497 | 693 | 220 | 282 | — | 19,967 | |||||||||||||||||||||
Loans and advances to credit institutions | 2,471 | 10,590 | 1,988 | 1,658 | 4,568 | 2,329 | 23,604 | |||||||||||||||||||||
Loans and advances to customers | 16,543 | 33,397 | 21,127 | 49,004 | 85,800 | 141,338 | 347,209 | |||||||||||||||||||||
Debt securities | 497 | 3,471 | 12,423 | 8,123 | 35,036 | 28,271 | 87,821 | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 636 | 1,515 | 3,503 | 13,748 | 17,827 | 37,229 | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Deposits from central banks | 50 | 5,102 | 3,130 | 2,704 | — | 1 | 10,987 | |||||||||||||||||||||
Deposits from credit institutions | 4,483 | 30,031 | 4,184 | 3,049 | 9,590 | 5,608 | 56,945 | |||||||||||||||||||||
Deposits from customers | 111,090 | 69,625 | 21,040 | 45,110 | 21,158 | 6,818 | 274,841 | |||||||||||||||||||||
Debt certificates (including bonds) | 96 | 5,243 | 10,964 | 7,159 | 42,907 | 15,843 | 82,212 | |||||||||||||||||||||
Subordinated liabilities | — | 537 | 3 | 248 | 2,732 | 13,251 | 16,771 | |||||||||||||||||||||
Other financial liabilities | 4,177 | 1,207 | 175 | 433 | 647 | 1,564 | 8,203 | |||||||||||||||||||||
Short positions | — | 651 | — | 10 | — | 3,385 | 4,046 | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 826 | 1,473 | 3,682 | 12,813 | 16,037 | 34,831 |
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Up to 1 | 1 to 3 | 3 to 12 | 1 to 5 | Over 5 | ||||||||||||||||||||||||
2009 | Demand | Month | Months | Months | Years | Years | Total | |||||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 14,650 | 535 | 248 | 735 | 163 | — | 16,331 | |||||||||||||||||||||
Loans and advances to credit institutions | 3,119 | 8,484 | 1,549 | 1,914 | 4,508 | 2,626 | 22,200 | |||||||||||||||||||||
Loans and advances to customers | 4,313 | 31,155 | 19,939 | 40,816 | 94,686 | 140,178 | 331,087 | |||||||||||||||||||||
Debt securities | 1,053 | 4,764 | 15,611 | 10,495 | 37,267 | 29,080 | 98,270 | |||||||||||||||||||||
Other assets | — | — | — | — | — | — | — | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 637 | 2,072 | 3,863 | 13,693 | 12,608 | 32,873 | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Deposits from central banks | 213 | 4,807 | 3,783 | 12,293 | — | — | 21,096 | |||||||||||||||||||||
Deposits from credit institutions | 1,836 | 24,249 | 5,119 | 5,145 | 6,143 | 6,453 | 48,945 | |||||||||||||||||||||
Deposits from customers | 106,942 | 55,482 | 34,329 | 32,012 | 18,325 | 6,293 | 253,383 | |||||||||||||||||||||
Debt certificates (including bonds) | — | 10,226 | 16,453 | 15,458 | 40,435 | 14,614 | 97,186 | |||||||||||||||||||||
Subordinated liabilities | — | 500 | 689 | 2 | 1,529 | 14,585 | 17,305 | |||||||||||||||||||||
Other financial liabilities | 3,825 | 822 | 141 | 337 | 480 | 20 | 5,625 | |||||||||||||||||||||
Short positions | — | 448 | — | 16 | — | 3,366 | 3,830 | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 735 | 1,669 | 3,802 | 13,585 | 10,517 | 30,308 |
Up to 1 | 1 to 3 | 3 to 12 | 1 to 5 | Over 5 | ||||||||||||||||||||||||
2008 | Demand | Month | Months | Months | Years | Years | Total | |||||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 13,487 | 476 | 296 | 181 | 202 | — | 14,642 | |||||||||||||||||||||
Loans and advances to credit institutions | 6,198 | 16,216 | 1,621 | 2,221 | 4,109 | 3,314 | 33,679 | |||||||||||||||||||||
Loans and advances to customers | 13,905 | 36,049 | 23,973 | 45,320 | 91,030 | 131,045 | 341,322 | |||||||||||||||||||||
Debt securities | 716 | 1,701 | 12,230 | 9,483 | 24,640 | 23,934 | 72,704 | |||||||||||||||||||||
Other assets | — | — | — | — | — | — | — | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 3,739 | 2,206 | 5,442 | 16,965 | 16,427 | 44,779 | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Deposits from central banks | 2,419 | 8,737 | 2,441 | 3,165 | — | — | 16,762 | |||||||||||||||||||||
Deposits from credit institutions | 4,906 | 22,412 | 4,090 | 5,975 | 6,581 | 5,609 | 49,573 | |||||||||||||||||||||
Deposits from customers | 101,141 | 68,804 | 27,025 | 35,176 | 16,440 | 5,137 | 253,723 | |||||||||||||||||||||
Debt certificates (including bonds) | — | 9,788 | 13,516 | 12,072 | 45,469 | 20,483 | 101,328 | |||||||||||||||||||||
Subordinated liabilities | 69 | 913 | 1 | 872 | 3,582 | 10,812 | 16,249 | |||||||||||||||||||||
Other financial liabilities | 5,000 | 1,152 | 385 | 203 | 1,371 | 342 | 8,453 | |||||||||||||||||||||
Short positions | — | 24 | — | 23 | — | 2,653 | 2,700 | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 2,693 | 3,108 | 6,310 | 15,538 | 13,886 | 41,535 |
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Maximum Credit Risk Exposure | 2010 | 2009 | 2008 | |||||||||
(In millions of euros) | ||||||||||||
Financial assets held for trading | 24,358 | 34,672 | 26,556 | |||||||||
Debt securities | 24,358 | 34,672 | 26,556 | |||||||||
Government | 20,397 | 31,290 | 20,778 | |||||||||
Credit institutions | 2,274 | 1,384 | 2,825 | |||||||||
Other sectors | 1,687 | 1,998 | 2,953 | |||||||||
Other financial assets designated at fair value through profit or loss | 691 | 639 | 516 | |||||||||
Debt securities | 691 | 639 | 516 | |||||||||
Government | 70 | 60 | 38 | |||||||||
Credit institutions | 87 | 83 | 24 | |||||||||
Other sectors | 534 | 496 | 454 | |||||||||
Available-for-sale financial assets | 50,602 | 57,067 | 39,961 | |||||||||
Debt securities | 50,602 | 57,067 | 39,961 | |||||||||
Government | 33,074 | 38,345 | 19,576 | |||||||||
Credit institutions | 11,235 | 12,646 | 13,377 | |||||||||
Other sectors | 6,293 | 6,076 | 7,008 | |||||||||
Loans and receivables | 373,037 | 353,741 | 375,387 | |||||||||
Loans and advances to credit institutions | 23,604 | 22,200 | 33,679 | |||||||||
Loans and advances to customers | 347,210 | 331,087 | 341,322 | |||||||||
Government | 31,224 | 26,219 | 22,503 | |||||||||
Agriculture | 3,977 | 3,924 | 4,109 | |||||||||
Industry | 36,578 | 42,799 | 46,576 | |||||||||
Real estate and construction | 55,854 | 55,766 | 54,522 | |||||||||
Trade and finance | 45,689 | 40,714 | 44,885 | |||||||||
Loans to individuals | 135,868 | 126,488 | 127,890 | |||||||||
Finance leases | 8,141 | 8,222 | 9,385 | |||||||||
Other | 29,879 | 26,955 | 31,452 | |||||||||
Debt securities | 2,223 | 454 | 386 | |||||||||
Government | 2,040 | 342 | 290 | |||||||||
Credit institutions | 6 | 4 | 4 | |||||||||
Other sectors | 177 | 108 | 92 | |||||||||
Held-to-maturity investments | 9,946 | 5,438 | 5,285 | |||||||||
Government | 8,792 | 4,064 | 3,844 | |||||||||
Credit institutions | 552 | 754 | 800 | |||||||||
Other sectors | 602 | 620 | 641 | |||||||||
Derivatives (trading and hedging) | 44,762 | 42,836 | 46,887 | |||||||||
Subtotal | 503,396 | 494,393 | 494,591 | |||||||||
Valuation adjustments | 299 | 436 | 942 | |||||||||
Total balance | 503,695 | 494,829 | 495,533 | |||||||||
Financial guarantees | 36,441 | 33,185 | 35,952 | |||||||||
Drawable by third parties | 86,790 | 84,925 | 92,663 | |||||||||
Government | 4,135 | 4,567 | 4,221 | |||||||||
Credit institutions | 2,303 | 2,257 | 2,021 | |||||||||
Other sectors | 80,352 | 78,101 | 86,421 | |||||||||
Other contingent exposures | 3,784 | 7,398 | 6,234 | |||||||||
Total off-balance | 127,015 | 125,508 | 134,849 | |||||||||
Total maximum credit exposure | 630,710 | 620,337 | 630,382 | |||||||||
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• | Financial assets held for trading: The guarantees or credit enhancements obtained directly from the issuer or counterparty are implicit in the clauses of the instrument. In trading derivatives, credit risk is minimized through contractual netting agreements, where positive- and negative-value derivatives with the same counterparty are offset for their net balance. There may likewise be other kinds of guarantees, depending on the counterparty solvency and the nature of the transaction. | |
• | Other financial assets designated at fair value through profit or loss: The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent in the structure of the instrument. |
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• | Available-for-sale financial assets: The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent in the structure of the instrument. | |
• | Loans and receivables: |
• | Loans and advances to credit institutions: These have the counterparty’s personal guarantee. | |
• | Total lending to customers: Most of these operations are backed by personal guarantees extended by the counterparty. The collateral received to secure loans and advances to other debtors includes mortgages, cash guarantees and other collateral such as pledged securities. Other kinds of credit enhancements may be put in place such as guarantees. | |
• | Debt securities: The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent in the structure of the instrument. |
• | Held-to-maturity investments: The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent in the structure of the instrument. | |
• | Hedging derivatives: Credit risk is minimized through contractual netting agreements, where positive- and negative-value derivatives with the same counterparty are settled at their net balance. There may likewise be other kinds of guarantees, depending on counterparty solvency and the nature of the transaction. | |
• | Financial guarantees, other contingent exposures and drawable by third parties: These have the counterparty’s personal guarantee. |
Collateralized Credit Risk | 2010 | 2009 | 2008 | |||||||||
(In millions of euros) | ||||||||||||
Mortgage loans | 132,628 | 127,957 | 125,540 | |||||||||
Operating assets mortgage loans | 3,638 | 4,050 | 3,896 | |||||||||
Home mortgages | 108,224 | 99,493 | 96,772 | |||||||||
Rest of mortgages | 20,766 | 24,414 | 24,872 | |||||||||
Secured loans, except mortgage | 18,154 | 20,917 | 19,982 | |||||||||
Cash guarantees | 281 | 231 | 250 | |||||||||
Secured loan (pledged securities) | 563 | 692 | 458 | |||||||||
Rest of secured loans | 17,310 | 19,994 | 19,274 | |||||||||
Total | 150,782 | 148,874 | 145,522 | |||||||||
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Probability of Default (Basic Points) | ||||||||||||
Internal Rating | Minimum from | |||||||||||
Reduced List (17 groups) | Average | >= | Maximum | |||||||||
AAA | 1 | — | 2 | |||||||||
AA+ | 2 | 2 | 3 | |||||||||
AA | 3 | 3 | 4 | |||||||||
AA− | 4 | 4 | 5 | |||||||||
A+ | 5 | 5 | 6 | |||||||||
A | 8 | 6 | 9 | |||||||||
A− | 10 | 9 | 11 | |||||||||
BBB+ | 14 | 11 | 17 | |||||||||
BBB | 20 | 17 | 24 | |||||||||
BBB− | 31 | 24 | 39 | |||||||||
BB+ | 51 | 39 | 67 | |||||||||
BB | 88 | 67 | 116 | |||||||||
BB− | 150 | 116 | 194 | |||||||||
B+ | 255 | 194 | 335 | |||||||||
B | 441 | 335 | 581 | |||||||||
B− | 785 | 581 | 1,061 | |||||||||
C | 2,122 | 1,061 | 4,243 |
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Credit Risk Distribution by Internal Rating | 2010 | 2009 | 2008 | |||||||||
AAA/AA+/AA/AA− | 26.94 | % | 19.55 | % | 23.78 | % | ||||||
A+/A/A− | 27.49 | % | 28.78 | % | 26.59 | % | ||||||
BBB+ | 9.22 | % | 8.65 | % | 9.23 | % | ||||||
BBB | 4.49 | % | 7.06 | % | 5.76 | % | ||||||
BBB− | 5.50 | % | 6.91 | % | 9.48 | % | ||||||
BB+ | 5.10 | % | 4.46 | % | 8.25 | % | ||||||
BB | 4.57 | % | 6.05 | % | 6.16 | % | ||||||
BB− | 4.88 | % | 6.45 | % | 5.91 | % | ||||||
B+ | 4.84 | % | 5.38 | % | 3.08 | % | ||||||
B | 4.81 | % | 3.34 | % | 1.44 | % | ||||||
B− | 1.89 | % | 0.88 | % | 0.28 | % | ||||||
CCC/CC | 0.27 | % | 2.49 | % | 0.03 | % | ||||||
Total | 100.00 | % | 100.00 | % | 100.00 | % | ||||||
• | The need to balance the customer’s financing needs, broken down by type (commercial/financial, short/long-term, etc.), and the degree to which its business is or is not attractive to us. We believe this approach provides a better operational mix that is still compatible with the needs of the bank’s clientele. | |
• | Other determining factors are national legislation and the ratio between the size of customer lending and the Bank’s equity (to prevent risk from becoming overly concentrated among few customers). Additional factors taken into consideration include constraints related to market, customer, internal regulation and macroeconomic factors, etc. | |
• | In addition, correct portfolio management leads to identification of risk concentrations and enables appropriate action to be taken. |
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2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||
Less | Less | Less | ||||||||||||||||||||||||||||||||||
than 1 | 1 to 2 | 1 to 3 | than 1 | 1 to 2 | 1 to 3 | than 1 | 1 to 2 | 1 to 3 | ||||||||||||||||||||||||||||
Financial Assets Past Due but Not | Months | Months | Months | Months | Months | Months | Months | Months | Months | |||||||||||||||||||||||||||
Impaired | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | |||||||||||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||||||||||||||
Loans and advances to credit institutions | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Loans and advances to customers | 1,082 | 311 | 277 | 2,653 | 336 | 311 | 1,580 | 534 | 447 | |||||||||||||||||||||||||||
Government | 122 | 27 | 27 | 45 | 32 | 19 | 30 | 10 | 12 | |||||||||||||||||||||||||||
Other sectors | 960 | 284 | 250 | 2,608 | 304 | 292 | 1,550 | 524 | 435 | |||||||||||||||||||||||||||
Debt securities | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total | 1,082 | 311 | 277 | 2,653 | 336 | 311 | 1,580 | 534 | 447 | |||||||||||||||||||||||||||
Impaired Risks. | ||||||||||||
Breakdown by Type of Asset and by Sector | 2010 | 2009 | 2008 | |||||||||
(In millions of euros) | ||||||||||||
IMPAIRED RISKS ON BALANCE | ||||||||||||
Available-for-sale financial assets | 140 | 212 | 188 | |||||||||
Debt securities | 140 | 212 | 188 | |||||||||
Loans and receivables | 15,472 | 15,311 | 8,540 | |||||||||
Loans and advances to credit institutions | 101 | 100 | 95 | |||||||||
Loans and advances to customers | 15,361 | 15,197 | 8,437 | |||||||||
Debt securities | 10 | 14 | 8 | |||||||||
Total Impaired Risks on Balance(1) | 15,612 | 15,523 | 8,728 | |||||||||
Impaired Risks Off Balance(2) | ||||||||||||
Impaired contingent liabilities | 324 | 405 | 131 | |||||||||
TOTAL IMPAIRED RISKS(1)+(2) | 15,936 | 15,928 | 8,859 | |||||||||
Of which: | ||||||||||||
Government | 123 | 87 | 102 | |||||||||
Credit institutions | 129 | 172 | 165 | |||||||||
Other sectors | 15,360 | 15,264 | 8,461 | |||||||||
Mortgage | 8,627 | 7,932 | 3,047 | |||||||||
With partial secured loans | 159 | 37 | 4 | |||||||||
Rest | 6,574 | 7,295 | 5,410 | |||||||||
Impaired contingent liabilities | 324 | 405 | 131 | |||||||||
TOTAL IMPAIRED RISKS | 15,936 | 15,928 | 8,859 | |||||||||
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Changes in Impaired Financial | ||||||||||||
Assets and Contingent Liabilities | 2010 | 2009 | 2008 | |||||||||
(In millions of euros) | ||||||||||||
Balance at the beginning | 15,928 | 8,859 | 3,418 | |||||||||
Additions(1) | 13,207 | 17,298 | 11,488 | |||||||||
Recoveries(2) | (9,138 | ) | (6,524 | ) | (3,668 | ) | ||||||
Net additions(1)+(2) | 4,069 | 10,774 | 7,820 | |||||||||
Transfers to write-off | (4,307 | ) | (3,737 | ) | (2,198 | ) | ||||||
Exchange differences and other | 247 | 32 | (181 | ) | ||||||||
Balance at the end | 15,936 | 15,928 | 8,859 | |||||||||
Recoveries on entries(%) | 69 | 38 | 32 | |||||||||
Less than 6 | 6 to 9 | 9 to 12 | More than | |||||||||||||||||
Months | Months | Months | 12 Months | |||||||||||||||||
2010 | Past-Due | Past-Due | Past-Due | Past-Due | Total | |||||||||||||||
(In millions of euros) | ||||||||||||||||||||
Spain | 5,279 | 1,064 | 798 | 4,544 | 11,685 | |||||||||||||||
Rest of Europe | 106 | 24 | 24 | 55 | 209 | |||||||||||||||
Latin America | 1,473 | 112 | 100 | 397 | 2,082 | |||||||||||||||
The United States | 1,110 | 84 | 111 | 331 | 1,636 | |||||||||||||||
Rest of the world | — | — | — | — | — | |||||||||||||||
Total | 7,968 | 1,284 | 1,034 | 5,327 | 15,612 | |||||||||||||||
Less than | 6 to 9 | 9 to 12 | More than | |||||||||||||||||
6 Months | Months | Months | 12 Months | |||||||||||||||||
2010 | Past-Due | Past-Due | Past-Due | Past-Due | Total | |||||||||||||||
(In millions of euros) | ||||||||||||||||||||
Unsecured loans | 4,309 | 338 | 271 | 1,710 | 6,628 | |||||||||||||||
Mortgage | 3,301 | 946 | 763 | 3,617 | 8,627 | |||||||||||||||
Residential mortgage | 629 | 304 | 271 | 1,472 | 2,676 | |||||||||||||||
Commercial mortgage (rural properties in operation and offices, and industrial buildings) | 561 | 128 | 100 | 602 | 1,391 | |||||||||||||||
Rest of residential mortgage | 701 | 132 | 99 | 593 | 1,525 | |||||||||||||||
Plots and other real state assets | 1,410 | 382 | 293 | 950 | 3,035 | |||||||||||||||
Other partially secured loans | 159 | — | — | — | 159 | |||||||||||||||
Others | 199 | — | — | — | 198 | |||||||||||||||
Total | 7,968 | 1,284 | 1,034 | 5,327 | 15,612 | |||||||||||||||
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2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
Changes in Written-Off | ||||||||||||
Balance at the beginning of year | 9,834 | 6,872 | 5,622 | |||||||||
Increase: | 4,788 | 3,880 | 1,976 | |||||||||
Decrease: | (1,448 | ) | (1,172 | ) | (567 | ) | ||||||
Re-financing or restructuring | (1 | ) | — | — | ||||||||
Cash recovery | (253 | ) | (188 | ) | (199 | ) | ||||||
Foreclosed assets | (5 | ) | (48 | ) | (13 | ) | ||||||
Sales of written-off | (342 | ) | (590 | ) | (261 | ) | ||||||
Other causes | (847 | ) | (346 | ) | (94 | ) | ||||||
Net exchange differences | 193 | 253 | (159 | ) | ||||||||
Balance at the end | 13,367 | 9,833 | 6,872 | |||||||||
2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
Impairment Losses | ||||||||||||
Available-for-sale portfolio | 619 | 449 | 202 | |||||||||
Loans and receivables | 9,473 | 8,805 | 7,505 | |||||||||
Loans and advances to customers | 9,396 | 8,720 | 7,412 | |||||||||
Loans and advances to credit institutions | 67 | 68 | 74 | |||||||||
Debt securities | 10 | 17 | 19 | |||||||||
Held to maturity investment | 1 | 1 | 4 | |||||||||
Total | 10,093 | 9,255 | 7,711 | |||||||||
Of which: | ||||||||||||
For impaired portfolio | 7,362 | 6,380 | 3,480 | |||||||||
For currently non-impaired portfolio | 2,731 | 2,875 | 4,231 |
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2010 | 2009 | 2008 | ||||||||||
(In millions of euros) | ||||||||||||
Changes in the Impairment Losses | ||||||||||||
Balance at the beginning | 9,255 | 7,711 | 7,194 | |||||||||
Increase in impairment losses charged to income | 7,207 | 8,282 | 4,590 | |||||||||
Decrease in impairment losses credited to income | (2,236 | ) | (2,622 | ) | (1,457 | ) | ||||||
Acquisition of subsidiaries | — | — | 1 | |||||||||
Disposal of subsidiaries | — | — | (4 | ) | ||||||||
Transfers to written-off loans | (4,488 | ) | (3,878 | ) | (1,951 | ) | ||||||
Exchange differences and other | 355 | (238 | ) | (662 | ) | |||||||
Balance at the end | 10,093 | 9,255 | 7,711 | |||||||||
Of which: | ||||||||||||
For impaired portfolio | 7,362 | 6,380 | 3,480 | |||||||||
For currently non-impaired portfolio | 2,731 | 2,875 | 4,231 |
Changes in the Impairment Losses | 2010 | 2009 | 2008 | |||||||||
(In millions of euros) | ||||||||||||
Loans and advances to customers | ||||||||||||
Balance at the beginning | 8,720 | 7,412 | 7,117 | |||||||||
Increase in impairment losses charged to income | 7,014 | 7,983 | 4,434 | |||||||||
Decrease in impairment losses credited to income | (2,200 | ) | (2,603 | ) | (1,636 | ) | ||||||
Acquisition of subsidiaries | — | — | — | |||||||||
Disposal of subsidiaries | — | — | — | |||||||||
Transfers to written-off loans | (4,423 | ) | (3,828 | ) | (1,950 | ) | ||||||
Exchange differences and other | 285 | (244 | ) | (553 | ) | |||||||
Balance at the end | 9,396 | 8,720 | 7,412 | |||||||||
Of which: | ||||||||||||
For impaired portfolio | 6,683 | 5,864 | 3,239 | |||||||||
For currently non-impaired portfolio | 2,713 | 2,856 | 4,173 |
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Europe, | ||||||||||||||||||||||||
2010 | Excluding | Latin | ||||||||||||||||||||||
Risks On-Balance | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||
Financial assets held for trading | 18,903 | 22,899 | 3,951 | 15,126 | 2,404 | 63,283 | ||||||||||||||||||
Debt securities | 9,522 | 2,839 | 654 | 10,938 | 405 | 24,358 | ||||||||||||||||||
Equity instruments | 3,041 | 888 | 148 | 861 | 322 | 5,260 | ||||||||||||||||||
Derivatives | 6,340 | 19,172 | 3,149 | 3,327 | 1,677 | 33,665 | ||||||||||||||||||
Other financial assets designated at fair value through profit or loss | 284 | 98 | 481 | 1,913 | 1 | 2,777 | ||||||||||||||||||
Debt securities | 138 | 66 | 480 | 7 | — | 691 | ||||||||||||||||||
Equity instruments | 146 | 32 | 1 | 1,906 | 1 | 2,086 | ||||||||||||||||||
Available-for-sale portfolio | 25,230 | 7,689 | 7,581 | 14,449 | 1,234 | 56,183 | ||||||||||||||||||
Debt securities | 20,725 | 7,470 | 6,903 | 14,317 | 1,187 | 50,602 | ||||||||||||||||||
Equity instruments | 4,505 | 219 | 678 | 132 | 47 | 5,581 | ||||||||||||||||||
Loans and receivables | 218,399 | 30,985 | 39,944 | 77,861 | 5,847 | 373,036 | ||||||||||||||||||
Loans and advances to credit institutions | 6,786 | 7,846 | 864 | 7,090 | 1,018 | 23,604 | ||||||||||||||||||
Loans and advances to customers | 210,102 | 23,139 | 38,649 | 70,497 | 4,822 | 347,209 | ||||||||||||||||||
Debt securities | 1,511 | — | 431 | 274 | 7 | 2,223 | ||||||||||||||||||
Held-to-maturity investments | 7,504 | 2,443 | — | — | — | 9,947 | ||||||||||||||||||
Hedging derivatives | 234 | 2,922 | 131 | 281 | 35 | 3,603 | ||||||||||||||||||
Total | 270,554 | 67,036 | 52,088 | 109,630 | 9,521 | 508,829 | ||||||||||||||||||
Europe, | ||||||||||||||||||||||||
Excluding | Latin | |||||||||||||||||||||||
Risks Off-Balance | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
Financial guarantees | 20,175 | 6,773 | 3,069 | 4,959 | 1,465 | 36,441 | ||||||||||||||||||
Contingent exposures | 35,784 | 19,144 | 17,604 | 17,132 | 910 | 90,574 | ||||||||||||||||||
Total | 55,959 | 25,917 | 20,673 | 22,091 | 2,375 | 127,015 | ||||||||||||||||||
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Europe, | ||||||||||||||||||||||||
2009 | Excluding | Latin | ||||||||||||||||||||||
Risks On-Balance | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||
Financial assets held for trading | 22,893 | 25,583 | 3,076 | 15,941 | 2,240 | 69,733 | ||||||||||||||||||
Debt securities | 14,487 | 7,434 | 652 | 11,803 | 296 | 34,672 | ||||||||||||||||||
Equity instruments | 3,268 | 624 | 35 | 1,662 | 194 | 5,783 | ||||||||||||||||||
Derivatives | 5,138 | 17,525 | 2,389 | 2,476 | 1,750 | 29,278 | ||||||||||||||||||
Other financial assets designated at fair value through profit or loss | 330 | 73 | 436 | 1,498 | — | 2,337 | ||||||||||||||||||
Debt securities | 157 | 42 | 435 | 5 | — | 639 | ||||||||||||||||||
Equity instruments | 173 | 31 | 1 | 1,493 | — | 1,698 | ||||||||||||||||||
Available-for-sale portfolio | 30,177 | 11,660 | 7,828 | 12,585 | 1,266 | 63,516 | ||||||||||||||||||
Debt securities | 24,838 | 11,429 | 7,082 | 12,494 | 1,223 | 57,066 | ||||||||||||||||||
Equity instruments | 5,339 | 231 | 746 | 91 | 43 | 6,450 | ||||||||||||||||||
Loans and receivables | 206,097 | 34,613 | 40,469 | 66,395 | 6,167 | 353,741 | ||||||||||||||||||
Loans and advances to credit institutions | 2,568 | 11,280 | 2,441 | 4,993 | 918 | 22,200 | ||||||||||||||||||
Loans and advances to customers | 203,529 | 23,333 | 37,688 | 61,298 | 5,239 | 331,087 | ||||||||||||||||||
Debt securities | — | — | 340 | 104 | 10 | 454 | ||||||||||||||||||
Held-to-maturity investments | 2,625 | 2,812 | — | — | — | 5,437 | ||||||||||||||||||
Hedging derivatives | 218 | 2,965 | 117 | 270 | 25 | 3,595 | ||||||||||||||||||
Total | 262,340 | 77,706 | 51,926 | 96,689 | 9,698 | 498,359 | ||||||||||||||||||
Europe, | ||||||||||||||||||||||||
Excluding | Latin | |||||||||||||||||||||||
Risks Off-Balance | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
Financial guarantees | 15,739 | 7,826 | 3,330 | 4,601 | 1,689 | 33,185 | ||||||||||||||||||
Contingent exposures | 37,804 | 24,119 | 15,990 | 13,164 | 1,246 | 92,323 | ||||||||||||||||||
Total | 53,543 | 31,945 | 19,320 | 17,765 | 2,935 | 125,508 | ||||||||||||||||||
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Europe, | ||||||||||||||||||||||||
2008 | Excluding | Latin | ||||||||||||||||||||||
Risks On-Balance | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||
Financial assets held for trading | 20,489 | 30,251 | 4,566 | 16,120 | 1,873 | 73,299 | ||||||||||||||||||
Debt securities | 7,799 | 5,926 | 652 | 11,563 | 616 | 26,556 | ||||||||||||||||||
Equity instruments | 2,332 | 1,376 | 80 | 1,071 | 938 | 5,797 | ||||||||||||||||||
Derivatives | 10,358 | 22,949 | 3,834 | 3,486 | 319 | 40,946 | ||||||||||||||||||
Other financial assets designated at fair value through profit or loss | 245 | 24 | 442 | 1,042 | 1 | 1,754 | ||||||||||||||||||
Debt securities | 63 | — | 441 | 12 | — | 516 | ||||||||||||||||||
Equity instruments | 182 | 24 | 1 | 1,030 | 1 | 1,238 | ||||||||||||||||||
Available-for-sale portfolio | 15,233 | 10,460 | 9,633 | 8,449 | 2,999 | 46,774 | ||||||||||||||||||
Debt securities | 11,811 | 9,970 | 8,889 | 8,368 | 924 | 39,962 | ||||||||||||||||||
Equity instruments | 3,422 | 490 | 744 | 81 | 2,075 | 6,812 | ||||||||||||||||||
Loans and receivables | 215,030 | 44,394 | 38,268 | 69,534 | 8,162 | 375,388 | ||||||||||||||||||
Loans and advances to credit institutions | 6,556 | 15,848 | 2,479 | 7,466 | 1,330 | 33,679 | ||||||||||||||||||
Loans and advances to customers | 208,474 | 28,546 | 35,498 | 61,978 | 6,826 | 341,322 | ||||||||||||||||||
Debt securities | — | — | 291 | 90 | 6 | 387 | ||||||||||||||||||
Held-to-maturity investments | 2,396 | 2,889 | — | — | — | 5,285 | ||||||||||||||||||
Hedging derivatives | 439 | 2,789 | 270 | 309 | 26 | 3,833 | ||||||||||||||||||
Total | 253,832 | 90,807 | 53,179 | 95,454 | 13,060 | 506,333 | ||||||||||||||||||
Europe, | ||||||||||||||||||||||||
Excluding | Latin | |||||||||||||||||||||||
Risks Off-Balance | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
Financial guarantees | 16,843 | 8,969 | 3,456 | 4,721 | 1,963 | 35,952 | ||||||||||||||||||
Contingent exposures | 45,039 | 22,366 | 16,194 | 13,559 | 1,739 | 98,897 | ||||||||||||||||||
Total | 61,882 | 31,335 | 19,650 | 18,280 | 3,702 | 134,849 | ||||||||||||||||||
ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
A. | Debt Securities |
B. | Warrants and Rights |
C. | Other Securities |
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D. | American Depositary Shares |
Category | Depositary Actions | Associated Fee/By Whom Paid | ||
(a) Depositing or substituting the underlying shares | Issuance of ADSs | Up to $5.00 for each 100 ADSs (or portion thereof) evidenced by the new ADSs delivered (charged to person depositing the shares or receiving the ADSs) | ||
(b) Receiving or distributing dividends | Distribution of cash dividends or other cash distributions; distribution of share dividends or other free share distributions; distribution of securities other than ADSs or rights to purchase additional ADSs | Not applicable | ||
(c) Selling or exercising rights | Distribution or sale of securities | Not applicable | ||
(d) Withdrawing an underlying security | Acceptance of ADSs surrendered for withdrawal of deposited securities | Up to $5.00 for each 100 ADSs (or portion thereof) evidenced by the ADSs surrendered (charged to person surrendering or to person to whom withdrawn securities are being delivered) | ||
(e) Transferring, splitting or grouping receipts | Transfers, combining or grouping of depositary receipts | Not applicable | ||
(f) General depositary services, particularly those charged on an annual basis | Other services performed by the Depositary in administering the ADSs | Not applicable | ||
(g) Expenses of the Depositary | Expenses incurred on behalf of holders in connection with 1) stock transfer or other taxes (including Spanish income taxes) and other governmental charges; 2) cable, telex and facsimile transmission and delivery charges incurred at request of holder of ADS or person depositing shares for the issuance of ADSs; 3) transfer, brokerage or registration fees for the registration of shares or other deposited securities on the share register and applicable to transfers of shares or other deposited securities to or from the name of the custodian; 4) reasonable and customary expenses of the depositary in connection with the conversion of foreign currency into U.S. dollars | Expenses payable by holders of ADSs or persons depositing shares for the issuance of ADSs; expenses payable in connection with the conversion of foreign currency into U.S. dollars are payable out of such foreign currency |
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Amount | ||||
Reimbursed in | ||||
the Year | ||||
Ended | ||||
Category of Expenses | December 31, 2010 | |||
Thousands of dollars | ||||
NYSE Listing Fees | 119 | |||
Investor Relations Marketing | 210 | |||
Professional Services | 129 | |||
AGM Expenses | 69 |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. | CONTROLS AND PROCEDURES |
• | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of BBVA; |
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• | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of BBVA’s management and directors; and | |
• | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
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ITEM 16. | [RESERVED] |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. | CODE OF ETHICS |
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ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Year Ended December 31, | ||||||||
Services Rendered | 2010 | 2009 | ||||||
(In millions of euros) | ||||||||
Audit Fees(1) | 7.3 | 6.9 | ||||||
Audit-Related Fees(2) | 1.3 | 0.7 | ||||||
Tax Fees(3) | 0.3 | 0.2 | ||||||
All Other Fees(4) | 0.6 | 0.7 | ||||||
Total | 9.5 | 8.5 | ||||||
(1) | Aggregate fees billed for each of the last two fiscal years for professional services rendered by Deloitte, S.L. for the audit of BBVA’s annual financial statements or services that are normally provided by Deloitte, S.L. in connection with statutory and regulatory filings or engagements for those fiscal years. Total audit fees billed by Deloitte, S.L. and its worldwide affiliates, were €16.4 million and €13.1 million in 2010 and 2009, respectively. | |
(2) | Aggregate fees billed in each of the last two fiscal years for assurance and related services by Deloitte, S.L. that are reasonably related to the performance of the audit or review of BBVA’s financial statements and are not reported under (1) above. | |
(3) | Aggregate fees billed in each of the last two fiscal years for professional services rendered by Deloitte, S.L. for tax compliance, tax advice, and tax planning. | |
(4) | Aggregate fees billed in each of the last two fiscal years for products and services provided by Deloitte, S.L. other than the services reported in (1), (2) and (3) above. Services in this category consisted primarily of employee education courses and verification of the security of information systems. |
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ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Total Number of | Maximum Number | |||||||||||||||
Shares (or Units) | (or Approximate Dollar | |||||||||||||||
Purchased as Part | Value) of Shares (or | |||||||||||||||
Total Number of | Average Price | of Publicly | Units) that may yet Be | |||||||||||||
Ordinary Shares | Paid per Share (or | Announced Plans or | Purchased Under the | |||||||||||||
2010 | Purchased | Unit) | Programs | Plans or Programs | ||||||||||||
January 1 to January 31 | 50,319,956 | € | 11.93 | — | — | |||||||||||
February 1 to February 28 | 56,619,454 | € | 10.01 | — | — | |||||||||||
March 1 to March 31 | 42,829,540 | € | 10.41 | — | — | |||||||||||
April 1 to April 30 | 77,852,734 | € | 10.45 | — | — | |||||||||||
May 1 to May 31 | 113,715,210 | € | 8.79 | — | — | |||||||||||
June 1 to June 30 | 75,038,225 | € | 9.21 | — | — | |||||||||||
July 1 to July 31 | 98,431,518 | € | 9.13 | — | — | |||||||||||
August 1 to August 31 | 36,309,050 | € | 9.95 | — | — | |||||||||||
September 1 to September 30 | 60,745,856 | € | 10.02 | — | — | |||||||||||
October 1 to October 31 | 80,592,413 | € | 9.63 | — | — | |||||||||||
November 1 to November 30 | 69,811,829 | € | 8.25 | — | — | |||||||||||
December 1 to December 31 | 59,563,014 | € | 8.24 | — | — | |||||||||||
Total | 821,828,799 | € | 9.53 | — | — | |||||||||||
ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. | CORPORATE GOVERNANCE |
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ITEM 17. | FINANCIAL STATEMENTS |
ITEM 18. | FINANCIAL STATEMENTS |
ITEM 19. | EXHIBITS |
Exhibit | ||||
Number | Description | |||
1 | .1 | Amended and Restated Bylaws (Estatutos) of the Registrant. | ||
8 | .1 | Consolidated Companies Composing Registrant (see Appendix I to XI to our Consolidated Financial Statements included herein). | ||
12 | .1 | Section 302 Chairman and Chief Executive Officer Certification. | ||
12 | .2 | Section 302 President and Chief Operating Officer Certification. | ||
12 | .3 | Section 302 Chief Accounting Officer Certification. | ||
13 | .1 | Section 906 Certification. | ||
15 | .1 | Consent of Independent Registered Public Accounting Firm |
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By: | /s/ JAVIER MALAGON NAVAS Name: JAVIER MALAGON NAVAS Title: Chief Accounting Officer |
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CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
• | Consolidated balance sheets | F-2 | ||||||
• | Consolidated income statements | F-5 | ||||||
• | Consolidated statements of recognized income and expenses | F-6 | ||||||
• | Consolidated statements of changes in equity | F-7 | ||||||
• | Consolidated statements of cash flows | F-10 | ||||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ||||||||
Introduction, basis of presentation of the consolidated annual financial statements and other information | F-12 | |||||||
Principles of consolidation, accounting policies and measurement bases applied and IFRS recent pronouncements | F-15 | |||||||
Banco Bilbao Vizcaya Argentaria Group | F-40 | |||||||
Application of earnings | F-44 | |||||||
Earnings per share | F-46 | |||||||
Basis and methodology for segment reporting | F-47 | |||||||
Risk exposure | F-50 | |||||||
Fair value of financial instruments | F-74 | |||||||
Cash and balances with central banks | F-80 | |||||||
Financial assets and liabilites held for trading | F-81 | |||||||
Other financial assets designated at fair value through profit or loss | F-86 | |||||||
Available for sale financial assets | F-86 | |||||||
Loans and receivables | F-91 | |||||||
Held-to-maturity investments | F-94 | |||||||
Hedging derivatives (receivable and payable) and fair value changes of the hedged items in portfolio hedges | F-96 | |||||||
Non-current assets held for sale and liabilities associated with non-current assets held for sale | F-99 | |||||||
Investments | F-101 | |||||||
Reinsurance assets | F-104 | |||||||
Tangible assets | F-105 | |||||||
Intangible assets | F-109 | |||||||
Tax assets and liabilities | F-111 | |||||||
Other assets and liabilities | F-114 | |||||||
Financial liabilities at amortized cost | F-114 | |||||||
Liabilities under insurance contracts | F-121 | |||||||
Provisions | F-121 | |||||||
Pensions and other commitments | F-123 | |||||||
Common stock | F-136 | |||||||
Share premium | F-138 | |||||||
Reserves | F-138 | |||||||
Treasury stock | F-141 | |||||||
Valuation adjustments | F-142 | |||||||
Non-controlling interest | F-142 | |||||||
Capital base and capital management | F-142 | |||||||
Financial guarantees and drawable by third parties | F-144 | |||||||
Assets assigned to other own and third-party obligations | F-144 | |||||||
Other contingent assets and contingent liabilities | F-145 |
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Purchase and sale commitments and future payment obligations | F-145 | |||||||
Transactions on behalf of third parties | F-145 | |||||||
Interest, income and similar expenses | F-146 | |||||||
Dividend income | F-149 | |||||||
Share of profit or loss of entities accounted for using the equity method | F-150 | |||||||
Fee and commission income | F-150 | |||||||
Fee and commission expenses | F-150 | |||||||
Net gains (losses) on financial assets and liabilities | F-151 | |||||||
Other operating income and expenses | F-152 | |||||||
Administrative costs | F-152 | |||||||
Depreciation and amortization | F-156 | |||||||
Provisions (net) | F-156 | |||||||
Impairment losses on financial assets (net) | F-156 | |||||||
Impairment losses on other assets (net) | F-157 | |||||||
Gains (losses) on derecognized assets not classified as non-current assets held for sale | F-157 | |||||||
Gains (losses) in non-current assets held for sale not classified as discontinued operations | F-157 | |||||||
Consolidates statement of cash flows | F-158 | |||||||
Accountant fees and services | F-159 | |||||||
Related party transactions | F-159 | |||||||
Remuneration of the Board of Directors and Members of the Bank’s Management Committee | F-161 | |||||||
Detail of the Directors’ holdings in companies with similar business activities | F-164 | |||||||
Other information | F-164 | |||||||
Subsequent events | F-165 | |||||||
Differences between Eu-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 and the United States generally accepted accounting principles and other required disclosures english | F-165 |
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Financial Statements of Banco Bilbao Vizcaya Argentaria, S.A. | I-1 | |||||||
Additional information on consolidated subsidiaries composing the BBVA Group | II-1 | |||||||
Additional information on jointly controlled companies accounted for under the proportionate consolidation method in the BBVA Group | III-1 | |||||||
Additional information on investments and jointly controlled companies accounted for using the equity method in the BBVA Group | IV-1 | |||||||
Changes and notification of investments in the BBVA Group in 2010 | V-1 | |||||||
Fully consolidated subsidiaries with more than 10% owned by non-Group shareholders as of December 31, 2010 | VI-1 | |||||||
BBVA Group’s securitization fund | VII-1 | |||||||
Details of the outstanding subordinated debt and preferred securities issued by the Bank or entities in the Group consolidated as of December 31, 2010 | VIII-1 | |||||||
Consolidated balance sheets as of December 31, 2010, 2009 and 2008 held in foreign currency | IX-1 | |||||||
Consolidated income statements for the first and second half of 2010, 2009 and 2007 | X-1 | |||||||
GLOSSARY | XI-1 |
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F-1
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VIZCAYA ARGENTARIA GROUP
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2010, 2009 and 2008
(Notes 1 to 5)
Notes | 2010 | 2009 | 2008 | |||||||||||||
Millions of euros | ||||||||||||||||
ASSETS | ||||||||||||||||
CASH AND BALANCES WITH CENTRAL BANKS | 9 | 19,981 | 16,344 | 14,659 | ||||||||||||
FINANCIAL ASSETS HELD FOR TRADING | 10 | 63,283 | 69,733 | 73,299 | ||||||||||||
Loans and advances to credit institutions | — | — | — | |||||||||||||
Loans and advances to customers | — | — | — | |||||||||||||
Debt securities | 24,358 | 34,672 | 26,556 | |||||||||||||
Equity instruments | 5,260 | 5,783 | 5,797 | |||||||||||||
Trading derivatives | 33,665 | 29,278 | 40,946 | |||||||||||||
OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 11 | 2,774 | 2,337 | 1,754 | ||||||||||||
Loans and advances to credit institutions | — | — | — | |||||||||||||
Loans and advances to customers | — | — | — | |||||||||||||
Debt securities | 688 | 639 | 516 | |||||||||||||
Equity instruments | 2,086 | 1,698 | 1,238 | |||||||||||||
AVAILABLE-FOR-SALE FINANCIAL ASSETS | 12 | 56,456 | 63,521 | 47,780 | ||||||||||||
Debt securities | 50,875 | 57,071 | 39,831 | |||||||||||||
Equity instruments | 5,581 | 6,450 | 7,949 | |||||||||||||
LOANS AND RECEIVABLES | 13 | 364,707 | 346,117 | 369,494 | ||||||||||||
Loans and advances to credit institutions | 23,637 | 22,239 | 33,856 | |||||||||||||
Loans and advances to customers | 338,857 | 323,442 | 335,260 | |||||||||||||
Debt securities | 2,213 | 436 | 378 | |||||||||||||
HELD-TO-MATURITY INVESTMENTS | 14 | 9,946 | 5,437 | 5,282 | ||||||||||||
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 15 | 40 | — | — | ||||||||||||
HEDGING DERIVATIVES | 15 | 3,563 | 3,595 | 3,833 | ||||||||||||
NON-CURRENT ASSETS HELD FOR SALE | 16 | 1,529 | 1,050 | 444 | ||||||||||||
INVESTMENTS IN ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 17 | 4,547 | 2,922 | 1,467 | ||||||||||||
Associates | 4,247 | 2,614 | 894 | |||||||||||||
Jointly controlled entities | 300 | 308 | 573 | |||||||||||||
INSURANCE CONTRACTS LINKED TO PENSIONS | — | — | — | |||||||||||||
REINSURANCE ASSETS | 18 | 28 | 29 | 29 | ||||||||||||
TANGIBLE ASSETS | 19 | 6,701 | 6,507 | 6,908 | ||||||||||||
Property, plants and equipment | 5,132 | 4,873 | 5,174 | |||||||||||||
For own use | 4,408 | 4,182 | 4,442 | |||||||||||||
Other assets leased out under an operating lease | 724 | 691 | 732 | |||||||||||||
Investment properties | 1,569 | 1,634 | 1,734 | |||||||||||||
INTANGIBLE ASSETS | 20 | 8,007 | 7,248 | 8,439 | ||||||||||||
Goodwill | 6,949 | 6,396 | 7,659 | |||||||||||||
Other intangible assets | 1,058 | 852 | 780 | |||||||||||||
TAX ASSETS | 21 | 6,649 | 6,273 | 6,484 | ||||||||||||
Current | 1,113 | 1,187 | 1,266 | |||||||||||||
Deferred | 5,536 | 5,086 | 5,218 | |||||||||||||
OTHER ASSETS | 22 | 4,527 | 3,952 | 2,778 | ||||||||||||
Inventories | 2,788 | 1,933 | 1,066 | |||||||||||||
Rest | 1,739 | 2,019 | 1,712 | |||||||||||||
TOTAL ASSETS | 552,738 | 535,065 | 542,650 | |||||||||||||
F-2
Table of Contents
(Notes 1 to 5)
Notes | 2010 | 2009 | 2008 | |||||||||||||
Millions of euros | ||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
FINANCIAL LIABILITIES HELD FOR TRADING | 10 | 37,212 | 32,830 | 43,009 | ||||||||||||
Deposits from central banks | — | — | — | |||||||||||||
Deposits from credit institutions | — | — | — | |||||||||||||
Customer deposits | — | — | — | |||||||||||||
Debt certificates | — | — | — | |||||||||||||
Trading derivatives | 33,166 | 29,000 | 40,309 | |||||||||||||
Short positions | 4,046 | 3,830 | 2,700 | |||||||||||||
Other financial liabilities | — | — | — | |||||||||||||
OTHER FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 11 | 1,607 | 1,367 | 1,033 | ||||||||||||
Deposits from central banks | — | — | — | |||||||||||||
Deposits from credit institutions | — | — | — | |||||||||||||
Customer deposits | — | — | — | |||||||||||||
Debt certificates | — | — | — | |||||||||||||
Subordinated liabilities | — | — | — | |||||||||||||
Other financial liabilities | 1,607 | 1,367 | 1,033 | |||||||||||||
FINANCIAL LIABILITIES AT AMORTIZED COST | 23 | 453,164 | 447,936 | 450,605 | ||||||||||||
Deposits from central banks | 11,010 | 21,166 | 16,844 | |||||||||||||
Deposits from credit institutions | 57,170 | 49,146 | 49,961 | |||||||||||||
Customer deposits | 275,789 | 254,183 | 255,236 | |||||||||||||
Debt certificates | 85,179 | 99,939 | 104,157 | |||||||||||||
Subordinated liabilities | 17,420 | 17,878 | 16,987 | |||||||||||||
Other financial liabilities | 6,596 | 5,624 | 7,420 | |||||||||||||
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | (2 | ) | — | — | ||||||||||||
HEDGING DERIVATIVES | 15 | 1,664 | 1,308 | 1,226 | ||||||||||||
LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | 16 | — | — | — | ||||||||||||
LIABILITIES UNDER INSURANCE CONTRACTS | 24 | 8,034 | 7,186 | 6,571 | ||||||||||||
PROVISIONS | 25 | 8,322 | 8,559 | 8,678 | ||||||||||||
Provisions for pensions and similar obligations | 5,980 | 6,246 | 6,359 | |||||||||||||
Provisions for taxes and other legal contingencies | 304 | 299 | 263 | |||||||||||||
Provisions for contingent exposures and commitments | 264 | 243 | 421 | |||||||||||||
Other provisions | 1,774 | 1,771 | 1,635 | |||||||||||||
TAX LIABILITIES | 21 | 2,195 | 2,208 | 2,266 | ||||||||||||
Current | 604 | 539 | 984 | |||||||||||||
Deferred | 1,591 | 1,669 | 1,282 | |||||||||||||
OTHER LIABILITIES | 22 | 3,067 | 2,908 | 2,557 | ||||||||||||
TOTAL LIABILITIES | 515,263 | 504,302 | 515,945 | |||||||||||||
F-3
Table of Contents
Notes | 2010 | 2009 | 2008 | |||||||||||||
Millions of euros | ||||||||||||||||
LIABILITIES AND EQUITY(Continued) | ||||||||||||||||
STOCKHOLDERS’ FUNDS | 36,689 | 29,362 | 26,586 | |||||||||||||
Common Stock | 27 | 2,201 | 1,837 | 1,837 | ||||||||||||
Issued | 2,201 | 1,837 | 1,837 | |||||||||||||
Unpaid and uncalled(-) | — | — | — | |||||||||||||
Share premium | 28 | 17,104 | 12,453 | 12,770 | ||||||||||||
Reserves | 29 | 14,360 | 12,074 | 9,410 | ||||||||||||
Accumulated reserves (losses) | 14,305 | 11,765 | 8,801 | |||||||||||||
Reserves (losses) of entities accounted for using the equity method | 55 | 309 | 609 | |||||||||||||
Other equity instruments | 37 | 12 | 89 | |||||||||||||
Equity component of compound financial instruments | — | — | — | |||||||||||||
Other equity instruments | 37 | 12 | 89 | |||||||||||||
Less: Treasury stock | 30 | (552 | ) | (224 | ) | (720 | ) | |||||||||
Income attributed to the parent company | 4,606 | 4,210 | 5,020 | |||||||||||||
Less: Dividends and remuneration | (1,067 | ) | (1,000 | ) | (1,820 | ) | ||||||||||
VALUATION ADJUSTMENTS | 31 | (770 | ) | (62 | ) | (930 | ) | |||||||||
Available-for-sale financial assets | 333 | 1,951 | 931 | |||||||||||||
Cash flow hedging | 49 | 188 | 207 | |||||||||||||
Hedging of net investment in foreign transactions | (158 | ) | 219 | 247 | ||||||||||||
Exchange differences | (978 | ) | (2,236 | ) | (2,231 | ) | ||||||||||
Non-current assetsheld-for-sale | — | — | — | |||||||||||||
Entities accounted for using the equity method | (16 | ) | (184 | ) | (84 | ) | ||||||||||
Other valuation adjustments | — | — | — | |||||||||||||
NON-CONTROLLING INTEREST | 32 | 1,556 | 1,463 | 1,049 | ||||||||||||
Valuation adjustments | (86 | ) | 18 | (175 | ) | |||||||||||
Rest | 1,642 | 1,445 | 1,224 | |||||||||||||
TOTAL EQUITY | 37,475 | 30,763 | 26,705 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | 552,738 | 535,065 | 542,650 | |||||||||||||
Memorandum Item | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
CONTINGENT EXPOSURES | 34 | 36,441 | 33,185 | 35,952 | ||||||||||||
CONTINGENT COMMITMENTS | 34 | 90,574 | 92,323 | 98,897 | ||||||||||||
F-4
Table of Contents
VIZCAYA ARGENTARIA GROUP
CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 (Notes 1 to 5)
Notes | 2010 | 2009 | 2008 | |||||||||||||
Millions of Euros | ||||||||||||||||
INTEREST AND SIMILAR INCOME | 39 | 21,134 | 23,775 | 30,404 | ||||||||||||
INTEREST AND SIMILAR EXPENSES | 39 | (7,814 | ) | (9,893 | ) | (18,718 | ) | |||||||||
NET INTEREST INCOME | 13,320 | 13,882 | 11,686 | |||||||||||||
DIVIDEND INCOME | 40 | 529 | 443 | 447 | ||||||||||||
SHARE OF PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 41 | 335 | 120 | 293 | ||||||||||||
FEE AND COMMISSION INCOME | 42 | 5,382 | 5,305 | 5,539 | ||||||||||||
FEE AND COMMISSION EXPENSES | 43 | (845 | ) | (875 | ) | (1,012 | ) | |||||||||
NET GAINS (LOSSES) ON FINANCIAL ASSETS AND LIABILITIES | 44 | 1,441 | 892 | 1,328 | ||||||||||||
Financial instruments held for trading | 643 | 321 | 265 | |||||||||||||
Other financial instruments at fair value through profit or loss | 83 | 79 | (17 | ) | ||||||||||||
Other financial instruments not at fair value through profit or loss | 715 | 492 | 1,080 | |||||||||||||
Rest | — | — | — | |||||||||||||
EXCHANGE DIFFERENCES (NET) | 453 | 652 | 231 | |||||||||||||
OTHER OPERATING INCOME | 45 | 3,543 | 3,400 | 3,559 | ||||||||||||
Income on insurance and reinsurance contracts | 2,597 | 2,567 | 2,512 | |||||||||||||
Financial income from non-financial services | 647 | 493 | 485 | |||||||||||||
Rest of other operating income | 299 | 340 | 562 | |||||||||||||
OTHER OPERATING EXPENSES | 45 | (3,248 | ) | (3,153 | ) | (3,093 | ) | |||||||||
Expenses on insurance and reinsurance contracts | (1,815 | ) | (1,847 | ) | (1,896 | ) | ||||||||||
Changes in inventories | (554 | ) | (417 | ) | (403 | ) | ||||||||||
Rest of other operating expenses | (879 | ) | (889 | ) | (794 | ) | ||||||||||
GROSS INCOME | 20,910 | 20,666 | 18,978 | |||||||||||||
ADMINISTRATION COSTS | 46 | (8,207 | ) | (7,662 | ) | (7,756 | ) | |||||||||
Personnel expenses | (4,814 | ) | (4,651 | ) | (4,716 | ) | ||||||||||
General and administrative expenses | (3,393 | ) | (3,011 | ) | (3,040 | ) | ||||||||||
DEPRECIATION AND AMORTIZATION | 47 | (761 | ) | (697 | ) | (699 | ) | |||||||||
PROVISIONS (NET) | 48 | (482 | ) | (458 | ) | (1,431 | ) | |||||||||
IMPAIRMENT LOSSES ON FINANCIAL ASSETS (NET) | 49 | (4,718 | ) | (5,473 | ) | (2,941 | ) | |||||||||
Loans and receivables | (4,563 | ) | (5,199 | ) | (2,797 | ) | ||||||||||
Other financial instruments not at fair value through profit or loss | (155 | ) | (274 | ) | (144 | ) | ||||||||||
NET OPERATING INCOME | 6,742 | 6,376 | 6,151 | |||||||||||||
NET OPERATING INCOME | 6,742 | 6,376 | 6,151 | |||||||||||||
IMPAIRMENT LOSSES ON OTHER ASSETS (NET) | 50 | (489 | ) | (1,618 | ) | (45 | ) | |||||||||
Goodwill and other intangible assets | (13 | ) | (1,100 | ) | (1 | ) | ||||||||||
Other assets | (476 | ) | (518 | ) | (44 | ) | ||||||||||
GAINS (LOSSES) ON DERECOGNIZED ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE | 51 | 41 | 20 | 72 | ||||||||||||
NEGATIVE GOODWILL | 20 | 1 | 99 | — | ||||||||||||
GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS | 52 | 127 | 859 | 748 | ||||||||||||
INCOME BEFORE TAX | 6,422 | 5,736 | 6,926 | |||||||||||||
INCOME TAX | 21 | (1,427 | ) | (1,141 | ) | (1,541 | ) | |||||||||
INCOME FROM CONTINUING TRANSACTIONS | 4,995 | 4,595 | 5,385 | |||||||||||||
INCOME FROM DISCONTINUED TRANSACTIONS (NET) | — | — | — | |||||||||||||
NET INCOME | 4,995 | 4,595 | 5,385 | |||||||||||||
Net Income attributed to parent company | 4,606 | 4,210 | 5,020 | |||||||||||||
Net income attributed to non-controlling interests | 32 | 389 | 385 | 365 | ||||||||||||
Note | 2010 | 2009 | 2008 | |||||||||||||
Euros | ||||||||||||||||
EARNINGS PER SHARE | 5 | |||||||||||||||
Basic earnings per share | 1.17 | 1.08 | 1.31 | |||||||||||||
Diluted earnings per share | 1.17 | 1.08 | 1.31 |
F-5
Table of Contents
2010 | 2009 | 2008 | ||||||||||
Millions of euros | ||||||||||||
NET INCOME RECOGNIZED IN INCOME STATEMENT | 4,995 | 4,595 | 5,385 | |||||||||
OTHER RECOGNIZED INCOME (EXPENSES) | (813 | ) | 1,061 | (3,237 | ) | |||||||
Available-for-sale financial assets | (2,166 | ) | 1,502 | (3,787 | ) | |||||||
Valuation gains/(losses) | (1,963 | ) | 1,520 | (2,065 | ) | |||||||
Amounts removed to income statement | (206 | ) | (18 | ) | (1,722 | ) | ||||||
Reclassifications | 3 | — | — | |||||||||
Cash flow hedging | (190 | ) | (32 | ) | 361 | |||||||
Valuation gains/(losses) | (156 | ) | (21 | ) | 373 | |||||||
Amounts removed to income statement | (34 | ) | (11 | ) | (12 | ) | ||||||
Amounts removed to the initial carrying amount of the hedged items | — | — | — | |||||||||
Reclassifications | — | — | — | |||||||||
Hedging of net investment in foreign transactions | (377 | ) | (27 | ) | (50 | ) | ||||||
Valuation gains/(losses) | (377 | ) | (27 | ) | (50 | ) | ||||||
Amounts removed to income statement | — | — | — | |||||||||
Reclassifications | — | — | — | |||||||||
Exchange differences | 1,384 | 68 | (661 | ) | ||||||||
Valuation gains/(losses) | 1,380 | 141 | (678 | ) | ||||||||
Amounts removed to income statement | 4 | (73 | ) | 17 | ||||||||
Reclassifications | — | — | — | |||||||||
Non-current assets held for sale | — | — | — | |||||||||
Valuation gains/(losses) | — | — | — | |||||||||
Amounts removed to income statement | — | — | — | |||||||||
Reclassifications | — | — | — | |||||||||
Actuarial gains and losses in post-employment plans | — | — | — | |||||||||
Entities accounted for using the equity method | 228 | (88 | ) | (144 | ) | |||||||
Valuation gains/(losses) | 228 | (88 | ) | (144 | ) | |||||||
Amounts removed to income statement | — | — | — | |||||||||
Reclassifications | — | — | — | |||||||||
Rest of recognized income and expenses | — | — | — | |||||||||
Income tax | 308 | (362 | ) | 1,044 | ||||||||
TOTAL RECOGNIZED INCOME/EXPENSES | 4,182 | 5,656 | 2,148 | |||||||||
Attributed to the parent company | 3,898 | 5,078 | 1,838 | |||||||||
Attributed to minority interests | 284 | 578 | 310 |
F-6
Table of Contents
Total Equity Attributed to the Parent Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves (Note 29) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Losses) From | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Entities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounted | Less: | Less: | Non- | |||||||||||||||||||||||||||||||||||||||||||||||||
Common | Share | Accumulated | for Using | Other | Treasury | Income Attributed | Dividends and | Total | Valuation | Controlling | ||||||||||||||||||||||||||||||||||||||||||
Stock | Premium | Reserves | the Equity | Equity | Stock | to the Parent | Remunerations | Stockholders’ | Adjustments | Interests | Total | |||||||||||||||||||||||||||||||||||||||||
2010 | (Note 27) | (Note 28) | (Losses) | Method | Instruments | (Note 30) | Company | (Note 4) | Funds | (Note 31) | Total | (Note 32) | Equity | |||||||||||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2010 | 1,837 | 12,453 | 11,765 | 309 | 12 | (224 | ) | 4,210 | (1,000 | ) | 29,362 | (62 | ) | 29,300 | 1,463 | 30,763 | ||||||||||||||||||||||||||||||||||||
Effect of changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Effect of correction of errors | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Adjusted initial balance | 1,837 | 12,453 | 11,765 | 309 | 12 | (224 | ) | 4,210 | (1,000 | ) | 29,362 | (62 | ) | 29,300 | 1,463 | 30,763 | ||||||||||||||||||||||||||||||||||||
Total income/expense recognized | — | — | — | — | — | — | 4,606 | — | 4,606 | (708 | ) | 3,898 | 284 | 4,182 | ||||||||||||||||||||||||||||||||||||||
Other changes in equity | 364 | 4,651 | 2,540 | (254 | ) | 25 | (328 | ) | (4,210 | ) | (67 | ) | 2,721 | — | 2,721 | (191 | ) | 2,530 | ||||||||||||||||||||||||||||||||||
Common stock increase | 364 | 4,651 | — | — | — | — | — | — | 5,015 | — | 5,015 | — | 5,015 | |||||||||||||||||||||||||||||||||||||||
Common stock reduction | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | — | 25 | — | — | — | 25 | — | 25 | — | 25 | |||||||||||||||||||||||||||||||||||||||
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividend distribution | — | — | — | — | — | — | (558 | ) | (1,067 | ) | (1,625 | ) | — | (1,625 | ) | (197 | ) | (1,822 | ) | |||||||||||||||||||||||||||||||||
Transactions including treasury stock and other equity instruments (net) | — | — | (105 | ) | — | — | (328 | ) | — | — | (433 | ) | — | (433 | ) | — | (433 | ) | ||||||||||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 2,865 | (213 | ) | — | — | (3,652 | ) | 1,000 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Increase/Reduction due to business combinations | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Rest of increases/reductions in total equity | — | — | (220 | ) | (41 | ) | — | — | — | — | (261 | ) | — | (261 | ) | 6 | (255 | ) | ||||||||||||||||||||||||||||||||||
Balances as of December 31, 2010 | 2,201 | 17,104 | 14,305 | 55 | 37 | (552 | ) | 4,606 | (1,067 | ) | 36,689 | (770 | ) | 35,919 | 1,556 | 37,475 | ||||||||||||||||||||||||||||||||||||
F-7
Table of Contents
(Notes 1 to 5)
Total Equity Attributed to the Parent Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves (Note 29) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Losses) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Entities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounted | Less: | Income | Less: | Non- | ||||||||||||||||||||||||||||||||||||||||||||||||
Common | Share | Accumulated | for Using | Treasury | Attributed | Dividends and | Total | Valuation | Controlling | |||||||||||||||||||||||||||||||||||||||||||
Stock | Premium | Reserves | the Equity | Other Equity | Stock | to the Parent | Remunerations | Stockholders’ | Adjustments | Interests | Total | |||||||||||||||||||||||||||||||||||||||||
2009 | (Note 27) | (Note 28) | (Losses) | Method | Instruments | (Note 30) | Company | (Note 4) | Funds | (Note 31) | Total | (Note 32) | Equity | |||||||||||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2009 | 1,837 | 12,770 | 8,801 | 609 | 89 | (720 | ) | 5,020 | (1,820 | ) | 26,586 | (930 | ) | 25,656 | 1,049 | 26,705 | ||||||||||||||||||||||||||||||||||||
Effect of changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Effect of correction of errors | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Adjusted initial balance | 1,837 | 12,770 | 8,801 | 609 | 89 | (720 | ) | 5,020 | (1,820 | ) | 26,586 | (930 | ) | 25,656 | 1,049 | 26,705 | ||||||||||||||||||||||||||||||||||||
Total income/expense recognized | — | — | — | — | — | — | 4,210 | — | 4,210 | 868 | 5,078 | 578 | 5,656 | |||||||||||||||||||||||||||||||||||||||
Other changes in equity | — | (317 | ) | 2,964 | (300 | ) | (77 | ) | 496 | (5,020 | ) | 820 | (1,434 | ) | — | (1,434 | ) | (164 | ) | (1,598 | ) | |||||||||||||||||||||||||||||||
Common stock increase | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Common stock reduction | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | — | 10 | — | — | — | 10 | — | 10 | — | 10 | |||||||||||||||||||||||||||||||||||||||
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividend distribution | — | — | — | — | — | — | — | (1,000 | ) | (1,000 | ) | — | (1,000 | ) | (144 | ) | (1,144 | ) | ||||||||||||||||||||||||||||||||||
Transactions including treasury stock and other equity instruments (net) | — | — | (238 | ) | — | — | 496 | — | — | 258 | — | 258 | — | 258 | ||||||||||||||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 3,378 | (178 | ) | — | — | (5,020 | ) | 1,820 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Increase/Reduction due to business combinations | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Payments with equity instruments | — | (317 | ) | — | — | (87 | ) | — | — | — | (404 | ) | — | (404 | ) | — | (404 | ) | ||||||||||||||||||||||||||||||||||
Rest of increases/reductions in total equity | — | — | (176 | ) | (122 | ) | — | — | — | — | (298 | ) | — | (298 | ) | (20 | ) | (318 | ) | |||||||||||||||||||||||||||||||||
Balances as of December 31, 2009 | 1,837 | 12,453 | 11,765 | 309 | 12 | (224 | ) | 4,210 | (1,000 | ) | 29,362 | (62 | ) | 29,300 | 1,463 | 30,763 | ||||||||||||||||||||||||||||||||||||
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(Notes 1 to 5)
Total Equity Attributed to the Parent Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves (Note 29) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Losses) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Entities | Income | |||||||||||||||||||||||||||||||||||||||||||||||||||
Accounted | Less: | Attributed | Less: | Non- | ||||||||||||||||||||||||||||||||||||||||||||||||
Common | Share | Accumulated | for Using | Other | Treasury | to the | Dividends and | Total | Valuation | controlling | ||||||||||||||||||||||||||||||||||||||||||
Stock | Premium | Reserves | the Equity | Equity | Stock | Parent | Remunerations | Stockholders’ | Adjustments | Interests | Total | |||||||||||||||||||||||||||||||||||||||||
2008 | (Note 27) | (Note 28) | (Losses) | Method | Instruments | (Note 30) | Company | (Note 4) | Funds | (Note 31) | Total | (Note 32) | Equity | |||||||||||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2008 | 1,837 | 12,770 | 5,609 | 451 | 68 | (389 | ) | 6,126 | (1,661 | ) | 24,811 | 2,252 | 27,063 | 880 | 27,943 | |||||||||||||||||||||||||||||||||||||
Effect of changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Effect of correction of errors | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Adjusted initial balance | 1,837 | 12,770 | 5,609 | 451 | 68 | (389 | ) | 6,126 | (1,661 | ) | 24,811 | 2,252 | 27,063 | 880 | 27,943 | |||||||||||||||||||||||||||||||||||||
Total income/expense recognized | — | — | — | — | — | — | 5,020 | — | 5,020 | (3,182 | ) | 1,838 | 310 | 2,148 | ||||||||||||||||||||||||||||||||||||||
Other changes in equity | — | — | 3,192 | 158 | 21 | (331 | ) | (6,126 | ) | (159 | ) | (3,245 | ) | — | (3,245 | ) | (142 | ) | (3,387 | ) | ||||||||||||||||||||||||||||||||
Common stock increase | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Common stock reduction | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | — | 21 | — | — | — | 21 | — | 21 | — | 21 | |||||||||||||||||||||||||||||||||||||||
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividend distribution | — | — | — | — | — | — | (1,002 | ) | (1,820 | ) | (2,822 | ) | — | (2,822 | ) | (142 | ) | (2,964 | ) | |||||||||||||||||||||||||||||||||
Transactions including treasury stock and other equity instruments (net) | — | — | (172 | ) | — | — | (331 | ) | — | — | (503 | ) | — | (503 | ) | — | (503 | ) | ||||||||||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 3,431 | 33 | — | — | (5,125 | ) | 1,661 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Increase/Reduction due to business combinations | — | — | 9 | — | — | — | — | — | 9 | — | 9 | — | 9 | |||||||||||||||||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Rest of increases/reductions in total equity | — | — | (75 | ) | 125 | — | — | — | — | 49 | — | 49 | — | 49 | ||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2008 | 1,837 | 12,770 | 8,801 | 609 | 89 | (720 | ) | 5,020 | (1,820 | ) | 26,586 | (930 | ) | 25,656 | 1,049 | 26,705 | ||||||||||||||||||||||||||||||||||||
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Notes | 2010 | 2009 | 2008 | |||||||||||||
Millions of euros | ||||||||||||||||
CASH FLOW FROM OPERATING ACTIVITIES(1) | 53 | 8,503 | 2,567 | (1,992 | ) | |||||||||||
Net income for the year | 4,995 | 4,595 | 5,385 | |||||||||||||
Adjustments to obtain the cash flow from operating activities: | (534 | ) | (591 | ) | (1,112 | ) | ||||||||||
Depreciation and amortization | 761 | 697 | 699 | |||||||||||||
Other adjustments | (1,295 | ) | (1,288 | ) | (1,811 | ) | ||||||||||
Net increase/decrease in operating assets | 6,452 | (9,781 | ) | 45,714 | ||||||||||||
Financial assets held for trading | (6,450 | ) | (3,566 | ) | 10,964 | |||||||||||
Other financial assets designated at fair value through profit or loss | 437 | 582 | 588 | |||||||||||||
Available-for-sale financial assets | (7,064 | ) | 15,741 | (800 | ) | |||||||||||
Loans and receivables | 18,590 | (23,377 | ) | 30,866 | ||||||||||||
Other operating assets | 939 | 839 | 4,096 | |||||||||||||
Net increase/decrease in operating liabilities | 9,067 | (12,359 | ) | 37,908 | ||||||||||||
Financial liabilities held for trading | 4,383 | (10,179 | ) | 23,736 | ||||||||||||
Other financial liabilities designated at fair value through profit or loss | 240 | 334 | — | |||||||||||||
Financial liabilities at amortized cost | 5,687 | (3,564 | ) | 20,058 | ||||||||||||
Other operating liabilities | (1,243 | ) | 1,050 | (5,886 | ) | |||||||||||
Collection/Payments for income tax | 1,427 | 1,141 | 1,541 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES(2) | 53 | (7,078 | ) | (643 | ) | (2,865 | ) | |||||||||
Investment | 8,762 | 2,396 | 4,617 | |||||||||||||
Tangible assets | 1,040 | 931 | 1,199 | |||||||||||||
Intangible assets | 464 | 380 | 402 | |||||||||||||
Investments | 1,209 | 2 | 672 | |||||||||||||
Subsidiaries and other business units | 77 | 7 | 1,559 | |||||||||||||
Non-current assets held for sale and associated liabilities | 1,464 | 920 | 515 | |||||||||||||
Held-to-maturity investments | 4,508 | 156 | — | |||||||||||||
Other settlements related to investing activities | — | — | 270 | |||||||||||||
Divestments | 1,684 | 1,753 | 1,752 | |||||||||||||
Tangible assets | 261 | 793 | 168 | |||||||||||||
Intangible assets | 6 | 147 | 31 | |||||||||||||
Investments | 1 | 1 | 9 | |||||||||||||
Subsidiaries and other business units | 69 | 32 | 13 | |||||||||||||
Non-current assets held for sale and associated liabilities | 1,347 | 780 | 374 | |||||||||||||
Held-to-maturity investments | — | — | 283 | |||||||||||||
Other collections related to investing activities | — | — | 874 | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES(3) | 53 | 1,148 | (74 | ) | (2,271 | ) | ||||||||||
Investment | 12,410 | 10,012 | 17,807 | |||||||||||||
Dividends | 1,218 | 1,567 | 2,813 | |||||||||||||
Subordinated liabilities | 2,846 | 1,667 | 735 | |||||||||||||
Common stock amortization | — | — | — | |||||||||||||
Treasury stock acquisition | 7,828 | 6,431 | 14,095 | |||||||||||||
Other items relating to financing activities | 518 | 347 | 164 | |||||||||||||
Divestments | 13,558 | 9,938 | 15,536 | |||||||||||||
Subordinated liabilities | 1,205 | 3,103 | 1,535 | |||||||||||||
Common stock increase | 4,914 | — | — | |||||||||||||
Treasury stock disposal | 7,439 | 6,835 | 13,745 | |||||||||||||
Other items relating to financing activities | — | — | 256 | |||||||||||||
EFFECT OF EXCHANGE RATE CHANGES(4) | 1,063 | (161 | ) | (791 | ) | |||||||||||
NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS (1+2+3+4) | 3,636 | 1,689 | (7,919 | ) | ||||||||||||
CASH OR CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 16,331 | 14,642 | 22,561 | |||||||||||||
CASH OR CASH EQUIVALENTS AT END OF THE YEAR | 19,967 | 16,331 | 14,642 |
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Components of Cash and Equivalent at end of the Year | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Cash | 4,284 | 4,218 | 3,915 | |||||||||||||
Balance of cash equivalent in central banks | 15,683 | 12,113 | 10,727 | |||||||||||||
Other financial assets | — | — | — | |||||||||||||
Less: Bank overdraft refundable on demand | — | — | — | |||||||||||||
TOTAL CASH OR CASH EQUIVALENTS AT END OF THE YEAR | 9 | 19,967 | 16,331 | 14,642 | ||||||||||||
Of which: | ||||||||||||||||
Held by consolidated subsidiaries but not available for the Group | — | — | — |
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AND COMPANIES COMPOSING THE BANCO BILBAO VIZCAYA ARGENTARIA GROUP
REPORT FOR THE YEAR ENDED DECEMBER 31, 2010
1. | INTRODUCTION, BASIS OF PRESENTATION OF THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS AND OTHER INFORMATION |
1.2. | BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS |
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1.3. | SEASONAL NATURE OF INCOME AND EXPENSES |
1.4. | RESPONSIBILITY FOR THE INFORMATION AND FOR THE ESTIMATES MADE |
• | Impairment on certain financial assets (see Notes 7, 8, 12, 13, 14 and 17). | |
• | The assumptions used to quantify other provisions (see Note 25) and for the actuarial calculation of post-employment benefit liabilities and commitments (see Note 26). | |
• | The useful life and impairment losses of tangible and intangible assets (see Notes 16, 19, 20 and 22). | |
• | The valuation of consolidation goodwill (see Notes 17 and 20). | |
• | The fair value of certain unlisted financial assets and liabilities (see Notes 7, 8, 10, 11, 12 and 15). |
1.5. | BBVA GROUP INTERNAL CONTROL OVER FINANCIAL REPORTING MODEL |
• | Evaluate all of the risks that could arise during the preparation of the financial information. | |
• | Design the necessary control activities to mitigate the most critical risks. | |
• | Monitor the control activities to ensure they are fulfilled and they are effective over time. | |
• | Establish the right reporting circuits to detect and report system weaknesses or flaws. |
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• | Set up a suitable control area to track all of these activities. |
• | The BBVA Group has opted for a direct model of individually assigned responsibilities through a more ambitious model of certification aimed to ensure that the internal control extends to a greater range of hierarchical levels and contributes to the culture of control within the Group. | |
• | The internal control system is dynamic and evolves continuously over time in a way that reflects the reality of the business of the Group at all times, together with the risks affecting it and the controls mitigating these risks. | |
• | A complete documentation of the processes, risks and control activities is prepared within its scope, including detailed descriptions of the transactions, criteria for evaluation and revisions applied. |
1.6. | MORTGAGE MARKET POLICIES AND PROCEDURES |
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2. | PRINCIPLES OF CONSOLIDATION, ACCOUNTING POLICIES AND MEASUREMENT BASES APPLIED AND IFRS RECENT PRONOUNCEMENTS |
2.1. | PRINCIPLES OF CONSOLIDATION |
• | Jointly-controlled financial entity: Since it is a financial entity, the best way of reflecting its activities within the Group’s consolidated financial statements is considered to be the proportionate method of consolidation. |
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Contribution to the Group by Entities | ||||||||||||
Accounted for Under the Proportionate Method | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Assets | 1,040 | 869 | 331 | |||||||||
Liabilities | 891 | 732 | 217 | |||||||||
Equity | 28 | 38 | 27 | |||||||||
Net income | 19 | 17 | 11 |
• | Jointly-controlled non-financialentity: It is considered that the effect of distributing the balance sheet and income statement amounts belonging to jointly controlled non-financial entities would distort the information provided to investors. For this reason, the equity method is considered the most appropriate way of reflecting these investments. |
2.2. | ACCOUNTING POLICIES AND VALUATION CRITERIA APPLIED |
2.2.1. | FINANCIAL INSTRUMENTS |
a) | Measurement of financial instruments and recognition of changes in fair value |
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• | In fair value hedges, the changes in the fair value of the derivative and the hedged item attributable to the hedged risk are recognized under the heading “Net gains (losses) on financial assets and liabilities” in the consolidated income statement, with a balancing item under the headings where hedging items (“Hedging derivatives”) and the hedged items are recognized, as applicable. |
• | In cash flow hedges, the gain or loss on the hedging instruments relating to the effective portion are recognized temporarily under the heading “Valuation adjustments — Cash flow hedging”. These valuation changes are recognized in the accompanying consolidated income statement at the time when the gain or loss in the hedged instrument affects profit or loss, when the forecast transaction takes place or at the maturity date of the hedged item. Almost all of the hedges used by the Group are for interest rate risks. Therefore, the valuation changes are recognized under the headings “Interest and similar income” or “Interest and similar expenses” as appropriate, in the accompanying consolidated income statement (see Note 39). Differences in the measurement of the hedging items corresponding to the ineffective portions of cash flow hedges are recognized directly in the heading “Net gains (losses) on financial assets and liabilities” in the accompanying consolidated income statement. | |
• | In the hedges of net investments in foreign operations, the differences produced in the effective portions of hedging items are recognized temporarily under the heading “Valuation adjustments — Hedging of net investments in foreign transactions” in the consolidated balance sheets. These differences in valuation are recognized under the heading “Net exchange differences” in the consolidated income statement when the investment in a foreign operation is disposed of or derecognized. |
• | Equity instruments whose fair value cannot be determined in a sufficiently objective manner and financial derivatives that have those instruments as their underlying asset and are settled by delivery of those instruments are measured at acquisition cost adjusted, where appropriate, for any impairment loss. |
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• | Valuation adjustments arising from financial instruments classified at balance sheet date as non-current assets held for sale are recognized with a balancing entry under the heading “Valuation adjustments —Non-current assets held for sale” in the accompanying consolidated balance sheets. |
b) | Impairment on financial assets |
• | In the case of debt instruments (loans and debt securities), give rise to a negative impact on the future cash flows that were estimated at the time the transaction was arranged. | |
• | In the case of equity instruments, mean that the carrying amount of these instruments cannot be recovered. |
• | Debt securities at amortized cost |
• | All the amounts that are expected to be obtained over the residual life of the instrument; including, where appropriate, those which may result from the collaterals and other credit enhancements provided for the instrument (after deducting the costs required for foreclosure and subsequent sale). Impairment losses include an estimate for the possibility of collecting accrued, past due and uncollected interest. | |
• | The various types of risk to which each instrument is subject. |
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• | The circumstances in which collections will foreseeably be made. |
• | When there is evidence of a reduction in the obligor’s capacity to pay, whether manifestly by default or for other reasons; and/or | |
• | When country-risk is risk materializes, understood as the risk among debtors who are resident in a particular country as a result of factors other than normal commercial risk. |
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Age of the Past-Due Amount | Allowance Percentage | |||
Up to 6 months | 25 | % | ||
Over 6 months and up to 9 months | 50 | % | ||
Over 9 months and up to 12 months | 75 | % | ||
Over 12 months | 100 | % |
a. | Completed home that is the primary residence of the borrower. |
b. | Rural buildings in use, and completed offices, premises and multi-purpose buildings. |
c. | Finished homes (rest). |
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d. | Land, lots and other real estate assets. |
a. | Partial cash guarantees |
b. | Partial pledges |
Type of Risk | Allowance Percentage Range | |
Negligible risk | 0% | |
Low risk | 0.06% - 0.75% | |
Medium-low risk | 0.15% - 1.88% | |
Medium risk | 0.18% - 2.25% | |
Medium-high risk | 0.20% - 2.50% | |
High risk | 0.25% - 3.13% |
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• | Equity instruments measured at fair value: The criteria for quantifying and recognizing impairment losses on equity instruments are similar to those for other debt instruments, with the exception that any recovery of previously recognized impairment losses for an investment in an equity instrument classified as available for sale which are not recognized through profit or loss but recognized under the heading “Valuation adjustments —Available-for-sale financial assets” in the accompanying consolidated balance sheet (Note 31). | |
• | Equity instruments measured at cost: The impairment losses on equity instruments measured at acquisition cost are equal to the difference between their carrying amount and the present value of expected future cash flows discounted at the market rate of return for similar securities. These impairment losses are determined taking into account the equity of the investee (except for valuation adjustments due to cash flow hedges) for the last approved (consolidated) balance sheet, adjusted for the unrealized gains at the measurement date. |
2.2.2. | TRANSFERS AND DERECOGNITION OF FINANCIAL ASSETS AND LIABILITIES |
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• | The transferred financial asset is not derecognized and continues to be measured in the consolidated balance sheet using the same criteria as those used before the transfer. | |
• | A financial liability is recognized at the amount of compensation received, which is subsequently measured at amortized cost and included under the heading “Financial liabilities at amortized cost — Debt certificates” in the accompanying consolidated balance sheet (see Note 23). As these liabilities do not constitute a current obligation, when measuring such a financial liability the Group deducts those financial instruments owned by it which constitute financing for the entity to which the financial assets have been transferred, to the extent that these instruments are deemed to specifically finance the assets transferred. | |
• | Both the income generated on the transferred (but not derecognized) financial asset and the expenses of the new financial liability are recognized in the accompanying consolidated income statements. |
• | The securitization funds’ activities are undertaken in the name of the entity in accordance with its specific business requirements, with a view to generating benefits or gains from the securitization funds’ operations. | |
• | The entity retains decision-making power with a view to securing most of the gains derived from the securitization funds’ activities or has delegated this power in some kind of “auto-pilot” mechanism (the securitization funds are structured so that all the decisions and activities to be performed are pre-defined at the time of their creation). | |
• | The entity is entitled to receive the bulk of the profits from the securitization funds and is accordingly exposed to the risks inherent in their business activities. The entity retains the bulk of the securitization funds’ residual profit. | |
• | The entity retains the bulk of the securitization funds’ asset risks. |
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2.2.3. | FINANCIAL GUARANTEES |
2.2.4. | NON-CURRENT ASSETS HELD FOR SALE AND LIABILITIES ASSOCIATED WITHNON-CURRENT ASSETS HELD FOR SALE |
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2.2.5. | TANGIBLE ASSETS |
Type of Assets | Annual Percentage | |
Buildings for own use | 1.33% - 4.00% | |
Furniture | 8% - 10% | |
Fixtures | 6% - 12% | |
Office supplies and hardware | 8% - 25% |
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2.2.6. | INVENTORIES |
• | The cost value of inventories includes the costs incurred for their acquisition and transformation, as well as other direct and indirect costs incurred in giving them their current condition and location. |
• | The net realizable value is the estimated selling price of inventories in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. |
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2.2.7. | BUSINESS COMBINATIONS |
2.2.8. | INTANGIBLE ASSETS |
• | Is the lowest level at which the entity manages goodwill internally. | |
• | Is not larger than an operating segment. |
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2.2.9. | INSURANCE AND REINSURANCE CONTRACTS |
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• | Life insurance provisions: Represents the value of the net obligations undertaken with the life insurance policyholder. These provisions include: |
- | Provisions for unearned premiums. These are intended for the accrual, at the date of calculation, of the premiums written. Their balance reflects the portion of the premiums accrued until the closing date has to be allocated to the year from the closing date to the end of the policy period. | |
- | Mathematical reserves: Represents the value of the life insurance obligations of the insurance companies at the year-end, net of the policyholder’s obligations. |
• | Non-life insurance provisions: |
- | Provisions for unearned premiums. These provisions are intended for the accrual, at the date of calculation, of the premiums written. Their balance reflects the portion of the premiums accrued until year-end that has to be allocated to the period between the year-end and the end of the policy period. | |
- | Provisions for unexpired risks: the provision for unexpired risks supplements the provision for unearned premiums by the amount by which that provision is not sufficient to reflect the assessed risks and expenses to be covered by the insurance companies in the policy period not elapsed at the year-end. |
• | Provision for claims: This reflects the total amount of the outstanding obligations arising from claims incurred prior to the year-end. Insurance companies calculate this provision as the difference between the total estimated or certain cost of the claims not yet reported, settled or paid, and the total amounts already paid in relation to these claims. | |
• | Provision for bonuses and rebates: this provision includes the amount of the bonuses accruing to policyholders, insurees or beneficiaries and the premiums to be returned to policyholders or insurees, as the case may be, based on the behavior of the risk insured, to the extent that such amounts have not been individually assigned to each of them. | |
• | Technical provisions for reinsurance ceded: calculated by applying the criteria indicated above for direct insurance, taking account of the assignment conditions established in the reinsurance contracts in force. | |
• | Other technical provisions: insurance companies have recognized provisions to cover the probable mismatches in the market reinvestment interest rates with respect to those used in the valuation of the technical provisions. |
2.2.10. | TAX ASSETS AND LIABILITIES |
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2.2.11. | PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES |
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2.2.12. | POST-EMPLOYMENT BENEFITS AND OTHER LONG-TERM COMMITMENTS TO EMPLOYEES |
• | They are unbiased, in that they are not unduly aggressive nor excessively conservative. | |
• | They are mutually compatible, reflecting the economic relationships between factors such as inflation, rates of salary increase, discount rates and expected return of assets. The expected return of plan assets in the post-employment benefits is estimated taking into account the market expectations and the distribution of such assets in the different portfolios. | |
• | The future levels of salaries and benefits are based on market expectations at the balance sheet date for the period over which the obligations are to be settled. | |
• | The discount rate used is determined by reference to market yields at the balance sheet date on high quality corporate bonds or debentures. |
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2.2.13. | EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS |
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2.2.14. | TERMINATION BENEFITS |
2.2.15. | TREASURY STOCK |
2.2.16. | FOREIGN CURRENCY TRANSACTIONS AND EXCHANGE DIFFERENCES |
• | Assets and liabilities: at the average spot exchange rates as of the date of each of the accompanying consolidated balance sheets. | |
• | Income and expenses and cash flows: at the average exchange rates for each year presented. | |
• | Equity items: at the historical exchange rates. |
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2.2.17. | RECOGNITION OF INCOME AND EXPENSES |
• | Those relating to financial assets and liabilities measured at fair value through profit or loss, which are recognized when collected. | |
• | Those arising from transactions or services that are provided over a period of time, which are recognized over the life of these transactions or services. | |
• | Those relating to single acts, which are recognized when this single act is carried out. |
2.2.18. | SALES AND INCOME FROM THE PROVISION OF NON-FINANCIAL SERVICES |
2.2.19. | LEASES |
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2.2.20. | CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSES |
2.2.21. | CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
2.2.22. | CONSOLIDATED STATEMENTS OF CASH FLOWS |
• | Cash flows: Inflows and outflows of cash and cash equivalents, the latter being short-term, highly liquid investments subject to a low risk of changes in value, such Cash and Deposit balances from central banks. | |
• | Operating activities: The typical activities of credit institutions and other activities that cannot be classified as investing or financing activities. |
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• | Investing activities: The acquisition, sale or other disposal of long-term assets and other investments not included in cash and cash equivalents. | |
• | Financing activities: Activities that result in changes in the size and composition of equity and of liabilities that do not form part of operating activities. |
2.2.23. | ENTITIES AND BRANCHES LOCATED IN COUNTRIES WITH HYPERINFLATIONARY ECONOMIES |
2.3 | RECENT IFRS PRONOUNCEMENTS |
a) | STANDARDS AND INTERPRETATIONS EFFECTIVE IN 2010 |
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• | Inflation may not be designated as a hedged item unless it is identifiable and the inflation portion is a contractually specified portion of cash flows of an inflation-linked financial instrument, and the rest of the cash flows are not affected by the inflation-linked portion. | |
• | When changes in cash flows or the fair value of an item are hedged above or below a specified price or other variable (a one-side risk) via a purchased option, the intrinsic value and time value components of the option must be separated and only the intrinsic value may be designated as a hedging instrument. |
• | The dividend payable should be recognized when the dividend is appropriately authorized and is no longer at the discretion of the entity. | |
• | An entity should recognize the difference between the dividend paid and the carrying amount of the net assets distributed in profit or loss. |
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b) | STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE AS OF DECEMBER 31, 2010 |
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3. | BANCO BILBAO VIZCAYA ARGENTARIA GROUP |
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Net Income | ||||||||||||||||
Total Assets | % of the | Attributed to | % of the Net | |||||||||||||
Contribution to Consolidated Group. | Contributed to | Total Assets of | Parent | Income Attributed | ||||||||||||
Entities by Main Activities 2010 | the Group | the Group | Company | to Parent Company | ||||||||||||
Millions of euros/percentages | ||||||||||||||||
Banks | 521,701 | 94.38 | % | 3,749 | 81.39 | % | ||||||||||
Financial services | 8,070 | 1.46 | % | 247 | 5.36 | % | ||||||||||
Portfolio, securities dealers and mutual funds management companies | 3,372 | 0.61 | % | (239 | ) | (5.19 | )% | |||||||||
Insurance and pension fund managing companies | 17,034 | 3.08 | % | 826 | 17.93 | % | ||||||||||
Real Estate, services and other entities | 2,561 | 0.46 | % | 23 | 0.50 | % | ||||||||||
Total | 552,738 | 100.00 | % | 4,606 | 100.00 | % | ||||||||||
% of the Net | ||||||||||||||||
Total Assets | % of the | Net Income | Income | |||||||||||||
Contribution to Consolidated Group. | Contributed to | Total Assest of | Attributed to Parent | Attributed to | ||||||||||||
Entities by Main Activities 2009 | the Group | the Group | Company | Parent Company | ||||||||||||
Millions of euros/percentage | ||||||||||||||||
Banks | 505,398 | 94.46 | % | 3,435 | 81.58 | % | ||||||||||
Financial services | 7,980 | 1.49 | % | 343 | 8.16 | % | ||||||||||
Portfolio, securities dealers and mutual funds management companies | 3,053 | 0.57 | % | (243 | ) | (5.77 | )% | |||||||||
Insurance and pension fund managing companies | 16,168 | 3.02 | % | 755 | 17.94 | % | ||||||||||
Real Estate, services and other entities | 2,466 | 0.46 | % | (80 | ) | (1.91 | )% | |||||||||
Total | 535,065 | 100.00 | % | 4,210 | 100.00 | % | ||||||||||
% of the Net | ||||||||||||||||
Total Assets | % of the | Net Income | Income | |||||||||||||
Contribution to Consolidated Group. | Contributed to | Total Assest of | Attributed to Parent | Attributed to | ||||||||||||
Entities by Main Activities 2008 | the Group | the Group | Company | Parent Company | ||||||||||||
Millions of euros/percentage | ||||||||||||||||
Banks | 498,030 | 91.78 | % | 3,535 | 70.41 | % | ||||||||||
Financial services | 15,608 | 2.88 | % | 393 | 7.84 | % | ||||||||||
Portfolio, securities dealers and mutual funds management companies | 11,423 | 2.10 | % | 466 | 9.28 | % | ||||||||||
Insurance and pension fund managing companies | 14,997 | 2.76 | % | 646 | 12.86 | % | ||||||||||
Real Estate, services and other entities | 2,592 | 0.48 | % | (20 | ) | (0.40 | )% | |||||||||
Total | 542,650 | 100.00 | % | 5,020 | 100.00 | % | ||||||||||
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Total Assets by Countries | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Spain | 365,019 | 370,622 | 380,486 | |||||||||
Mexico | 73,837 | 61,655 | 61,023 | |||||||||
The United States | 52,166 | 49,576 | 49,698 | |||||||||
Chile | 13,309 | 10,253 | 9,389 | |||||||||
Venezuela | 8,613 | 11,410 | 9,652 | |||||||||
Colombia | 8,702 | 6,532 | 6,552 | |||||||||
Peru | 10,135 | 7,311 | 7,683 | |||||||||
Argentina | 6,075 | 5,030 | 5,137 | |||||||||
Rest | 14,882 | 12,676 | 13,030 | |||||||||
Total | 552,738 | 535,065 | 542,650 | |||||||||
Interest and Similar Income by Countries | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Spain | 9,426 | 12,046 | 16,892 | |||||||||
Mexico | 5,543 | 5,354 | 6,721 | |||||||||
The United States | 2,050 | 1,991 | 2,174 | |||||||||
Chile | 850 | 522 | 986 | |||||||||
Venezuela | 975 | 1,553 | 1,116 | |||||||||
Colombia | 694 | 750 | 811 | |||||||||
Peru | 597 | 563 | 520 | |||||||||
Argentina | 563 | 549 | 541 | |||||||||
Rest | 436 | 447 | 643 | |||||||||
Total | 21,134 | 23,775 | 30,404 | |||||||||
Contribution of BBVA, S.A. to Total Assets and | ||||||||||||||||
Income before Taxes of BBVA Group | 2010 | 2009 | 2008 | |||||||||||||
% BBVA Assets over Group Assets | 64 | % | 67 | % | 63 | % | ||||||||||
% BBVA Income before tax over consolidated income before tax | 32 | % | 49 | % | 28 | % |
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4. | APPLICATION OF EARNINGS |
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31-05-2010 | 31-08-2010 | 30-11-2010 | ||||||||||
Available Amount for Interim Dividend Payments | First | Second | Third | |||||||||
Millions of euros | ||||||||||||
Profit at each of the dates indicated, after the provision for income tax | 1,432 | 3,072 | 3,088 | |||||||||
Less — | ||||||||||||
Estimated provision for Legal Reserve | — | — | 73 | |||||||||
Interim dividends paid | — | 337 | 675 | |||||||||
Maximum amount distributable | 1,432 | 2,735 | 2,340 | |||||||||
Amount of proposed interim dividend | 337 | 337 | 404 |
Millions of | ||||
Application of Earnings 2010 | euros | |||
Net income for year of 2010(*) | 2,904 | |||
Distribution: | ||||
Dividends | 1,079 | |||
Legal reserve | 73 | |||
Voluntary reserves | 1,752 |
(*) | Net income of BBVA, S.A. (Apendix I) |
First | Second | Third | ||||||||||||||
Dividends per Share | Interim | Interim | Interim | Total | ||||||||||||
Euros per share | ||||||||||||||||
2010 | 0.090 | 0.090 | 0.090 | 0.270 |
2010 | 2009 | |||||||||||||||||||||||
Euros | Amount | Euros | Amount | |||||||||||||||||||||
% Over | per | (Millions of | % Over | Per | (Millions of | |||||||||||||||||||
Dividends Paid (*) | Nominal | Share | Euros) | Nominal | Share | Euros) | ||||||||||||||||||
Ordinary shares | 67 | % | 0.330 | 1,237 | 86 | % | 0.420 | 1,574 | ||||||||||||||||
Rest of shares | — | — | — | — | — | — | ||||||||||||||||||
Total dividends paid | 67 | % | 0.330 | 1,237 | 86 | % | 0.420 | 1,574 | ||||||||||||||||
Dividends with charge to income | 67 | % | 0.330 | 1,237 | 86 | % | 0.420 | 1,574 | ||||||||||||||||
Dividends with charge to reserve or share premium | — | — | — | — | — | — | ||||||||||||||||||
Dividends in kind | — | — | — | — | — | — |
(*) | The total dividens paid under the cash-flows criteria, are the total amount paid in cash each year to shareholders, regardless of the year there were accued. |
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5. | EARNINGS PER SHARE |
• | Basic earnings per shareare determined by dividing the “Net income attributed to parent company” by the weighted average number of shares outstanding, excluding the average number of treasury stocks maintained throughout the year. | |
• | Diluted earnings per shareis calculated by using a method similar to that used to calculate basic earnings per share; the weighted average number of shares outstanding, and the net income attributed to the parent company if appropriate, is adjusted to take into account the potential dilutive effect of certain financial instruments that could generate the issue of new Bank shares (share option commitments with employees, warrants on parent company shares, convertible debt instruments) or for discontinued operations. |
• | In 2010 the Bank has carried out a capital increase with the pre-emptive subscription right for former shareholders (see Note 27). According to IAS 33, the calculation of the basic and diluted earnings per share should be adjusted retrospectively for all years before the issue by using a corrective factor that will be applied to the denominator (a weighted average number of shares outstanding). Said corrective factor is the result of dividing the fair value per share immediately before the exercise of rights by the theoretical ex-rights fair value per share. For these purposes the basic and diluted earnings per share have been recalculated for 2009 and 2008 from the following table. | |
• | In 2009, the Bank issued subordinated convertible bonds amounting to €2,000 million (see Note 23.4). Since the conversion is mandatory on the date of their final maturity, in accordance with the IAS 33 criteria, the following adjustments must be applied to both the calculation of the diluted earnings per share as well as the basic earnings per share. |
• | In the numerator, the net income attributed to the parent company is increased by the amount of the annual coupon of the subordinated convertible bond. | |
• | In the denominator, the weighted average number of shares outstanding is increased by the estimated number of shares after the conversion if done that day. |
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Basic and Diluted Earnings per Share | 2010 | 2009 | 2008 | |||||||||
Numerator for basic and diluted earnigs per share (million of euros) | ||||||||||||
Net income attributed to parent company | 4,606 | 4,210 | 5,020 | |||||||||
+ADJUSTMENT: Mandatory convertible bonds interest expenses | 70 | 18 | — | |||||||||
Net income adjusted (millions of euros)(A) | 4,676 | 4,228 | 5,020 | |||||||||
Denominator for basic earnings per share (number of shares outstanding) | ||||||||||||
Weighted average number of shares outstanding(1) | 3,762 | 3,719 | 3,706 | |||||||||
Weighted average number of shares outstanding x corrective factor(2) | — | 3,860 | 3,846 | |||||||||
+ADJUSTMENT: Average number of estimated shares to be converted | 221 | 39 | — | |||||||||
Adjusted number of shares(B) | 3,983 | 3,899 | 3,846 | |||||||||
Basic earnings per share (Euros per share)A/B | 1.17 | 1.08 | 1.31 | |||||||||
Diluted earnings per share (Euros per share)A/B | 1.17 | 1.08 | 1.31 | |||||||||
(1) | Weighted average number of shares outstanding (millions of euros), excluded weighted average of treasury shares during the period | |
(2) | Corrective factor, due to the capital increase with pre-emptive subscription right, applied for the previous years. |
6. | BASIS AND METHODOLOGY FOR SEGMENT REPORTING |
• | Economic capital: Capital is allocated to each business based on capital at risk (CaR) criteria, in turn predicated on unexpected loss at a specific confidence level, determined as a function of the Group’s target capital ratio. This target level is applied at two levels: the first is adjusted core capital, which determines the allocated capital. The Bank uses this amount as a basis for calculating the return generated on the equity in each business (ROE). The second level is total capital, which determines the additional allocation in terms of subordinate debt and preferred securities. The calculation of the CaR combines credit risk, market risk, structural risk associated with the balance sheet equity positions, operational risk, fixed assets risks and technical risks in the case of insurance companies. These calculations are carried out using internal models that have been defined following the guidelines and requirements established under the Basel II Capital Accord, with economic criteria prevailing over regulatory ones. |
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• | Internal transfer prices: The calculation of the net interest income of each business is performed using rates adjusted for the maturities and rate reset clauses in effect on the various assets and liabilities making up each unit’s balance sheet. The allocation of profits across business units is performed at market prices. | |
• | Allocation of operating expenses: Both direct and indirect expenses are allocated to the segments, except for those items for which there is no clearly defined or close link with the businesses, as they represent corporate/institutional expenses incurred on behalf of the overall Group. In this regard, we should note that the primary change in criteria during 2010 related to the assignment of expenses refers to the allocation of rent expenses in Spain and Portugal. This was formerly carried out based on a percentage over the book value of the real estate property and based on the area occupied. As of 2010, this allocation will be carried out at market value. | |
• | Cross selling: On certain occasions, consolidation adjustments are made to eliminate overlap accounted for in the results of one or more units as result of cross-selling focus. |
• | Spain and Portugal: This area handles the financial and non-financial needs of private individual customers (Retail Network), including the higher net-worth market segment (BBVA Banca Privada, private banking), as well as the business segment (professionals, the self-employed, retailers, the farming community and SMEs) in the Spanish market. It also manages business with SMEs, corporations and public and private institutions and developers in Spain through the Corporate and Business Banking unit (“CBB”). Other specialized units handle online banking, consumer finance (the Consumer Finance Unit), the bancassurance business (BBVA Seguros) and BBVA Portugal. | |
• | Mexico: Includes the banking, pensions and insurance businesses in the country. | |
• | United States: encompasses the Group’s business in the United States and in the Commonwealth of Puerto Rico. | |
• | South America: Includes the banking, pensions and insurance businesses in South America. | |
• | Wholesale Banking and Asset Management (WB&AM): handles the Group’s wholesale businesses and asset management in all the geographical areas where it operates. For the purposes of this financial report, the business and earnings of the units in the Americas are registered in their respective areas (Mexico, South America and the United States). WB&AM is organized around three main business units: Corporate and Investment Banking (“C&IB”), Global Markets (“GM”) and Asset Management (“AM”). It also includes the Industrial and Real Estate Holdings unit and the Group’s holdings in the CITIC financial group. |
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• | United States and WB&AM: In order to give a global view of the Group’s business in the United States, we decided to include the New York branch, formerly in WB&AM, in the United States area. This change is consistent with BBVA’s current method of reporting its business units. | |
• | South America: The adjustment for the hyperinflation is included in 2010 in the accounting statements for Banco Provincial (Venezuela); this will also be carried out for the 2009 statements to make them comparable. At the close of 2009, when the Venezuelan economy was for the first time considered hyperinflationary for accounting purposes, this impact was registered in Corporate Activities, with the aim of making comparison with 2008 easier and in order not to distort the quarterly series for 2009 itself. |
Total Assets by Bussiness Areas | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Spain and Portugal | 217,191 | 215,823 | 220,464 | |||||||||
Mexico | 75,152 | 62,855 | 60,774 | |||||||||
South America | 51,663 | 44,378 | 41,600 | |||||||||
The United States | 57,613 | 77,896 | 74,124 | |||||||||
WB&AM | 121,522 | 106,563 | 124,058 | |||||||||
Corporate Activities | 29,597 | 27,550 | 21,630 | |||||||||
Total | 552,738 | 535,065 | 542,650 | |||||||||
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Net Income attributed by Bussiness Areas | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Spain and Portugal | 2,070 | 2,275 | 2,473 | |||||||||
Mexico | 1,707 | 1,357 | 1,930 | |||||||||
South America | 889 | 780 | 727 | |||||||||
The United States | 236 | (950 | ) | 308 | ||||||||
WB&AM | 950 | 853 | 722 | |||||||||
Corporate Activities | (1,246 | ) | (105 | ) | (1,140 | ) | ||||||
Subtotal | 4,606 | 4,210 | 5,020 | |||||||||
Non-assigned income | — | — | — | |||||||||
Elimination of interim income (between segments) | — | — | — | |||||||||
Other gains (losses) | 389 | 385 | 365 | |||||||||
Income tax and/or income from discontinued operations | 1,427 | 1,141 | 1,541 | |||||||||
INCOME BEFORE TAX | 6,422 | 5,736 | 6,926 | |||||||||
Total Ordinary Income by Bussiness Areas | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Spain and Portugal | 10,151 | 10,974 | 12,787 | |||||||||
Mexico | 8,271 | 7,669 | 9,166 | |||||||||
South America | 5,684 | 5,755 | 5,970 | |||||||||
The United States | 3,067 | 3,191 | 3,932 | |||||||||
WB&AM | 1,987 | 2,887 | 4,739 | |||||||||
Corporate Activities | 2,869 | 3,339 | 4,683 | |||||||||
Adjustments and eliminations of ordinary income between segments | — | — | — | |||||||||
TOTAL | 32,029 | 33,815 | 41,277 | |||||||||
7. | RISK EXPOSURE |
• | Credit risk: Credit risk defined as the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. | |
• | Market risks: These are defined as the risks arising from the maintenance of financial instruments whose value may be affected by changes in market conditions. It includes three types of risk: |
• | Foreign-exchange risk: this is the risk resulting from variations in foreign exchange rates. | |
• | Interest rate risk: this arises from variations in market interest rates. | |
• | Price risk: This is the risk resulting from variations in market prices, either due to factors specific to the instrument itself, or alternatively to factors which affect all the instruments traded on the market. | |
• | Liquidity risk: This is the possibility that a company cannot meet its payment commitments duly, or, to do so, must resort to borrowing funds under onerous conditions, or risking its image and the reputation of the entity. |
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• | The risk management function is unique, independent and global. | |
• | The assumed risks must be compatible with the target capital adequacy and must be identified, measured and assessed. Monitoring and management procedures and sound control and mitigation systems must likewise be in place. | |
• | All risks must be managed integrally during their life cycle, being treated differently depending on their type and with active portfolio management based on a common measurement (economic capital). | |
• | It is each business area’s responsibility to propose and maintain its own risk profile, within their independence in the corporate action framework (defined as the set of risk policies and procedures), using a proper risk infrastructure. | |
• | The risk infrastructure must be suitable in terms of people, tools, databases, information systems and procedures so that there is a clear definition of roles and responsibilities, ensuring efficient assignment of resources among the corporate area and the risk units in business areas. |
• | To analyze and evaluate proposals related to the Group’s risk management and oversight policies and strategies. |
• | To monitor the match between risks accepted and the profile established. | |
• | To assess and approve, where applicable, any risks whose size could compromise the Group’s capital adequacy or recurrent earnings, or that present significant potential operational or reputational risks. | |
• | To check that the Group possesses the means, systems, structures and resources in accordance with best practices to allow the implementation of its risk management strategy. |
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• | The Global Asset Allocation Committee is made up of the Group’s President and COO, the financial director, the corporate strategy and development director and the Global Risk Management director. This committee plans the process of risk acceptance by proposing an objective risk objective, which is submitted to the Board’s Risk Committee. | |
• | The task of theGlobal Internal Control and Operational Risk Committeeis to undertake a review at the level of the Group and of each of its units, of the control environment and the running of the Internal Control and Operational Risk Models, and likewise to monitor and locate the main operational risks the Group is subject to, including those that are transversal in nature. This Committee is therefore the highest operational risk management body in the Group. | |
• | ThisRisk Management Committeeis made up of the risk managers from the Risk Units from the business areas and those of the Corporate Risk Area. This body meets monthly and is responsible for establishing the Group’s risk strategy (especially as regards policies and structure of the operation of the Group), presenting the risk strategy to the Group’s governing bodies for their approval, monitoring the management and control of risks in the Group and, if necessary, adopting the necessary actions. | |
• | The Global Risk Management Committee is made up of the corporate directors of the Group’s risk unit and those responsible for risks in the different countries. The Committee meets every week to review the Group’s risk strategy, and review and agree on the main risk projects and initiatives in the business areas. | |
• | The Risk Management Committee is made up of the following permanent members: the Global Risk Management director, the Corporate Risk Management director and the Technical Secretary. The rest of the committee members deal with the operations that have to be analyzed in each of its sessions. The members analyze and decide on those financial programs and operations that are within its remit and discuss those that are not, and if necessary transfer them for approval to the Risk Committee. | |
• | The Assets and Liabilities Committee (“ALCO”) is responsible for actively managing structural interest rate and foreign exchange risk positions, global liquidity and the Group’s capital resources. | |
• | The Technology and Methodologies Committee is a forum that decides on the hedging needs of models and infrastructures in the Business Areas within the framework of the operational model of Global Risk Management. | |
• | The functions of theNew Products Committeeare to assess, and if appropriate to approve, the introduction of new products before the start of activity; to undertake subsequent control and monitoring for newly authorized products; and to foster business in an orderly way to enable it to develop in a controlled environment. |
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• | The “process” is the articulating axis of the Internal Control Model. | |
• | Risk identification, assessment and mitigation activities must be unique for each process. | |
• | It is the Group’s units that are responsible for internal control. | |
• | The systems, tools and information flows that support internal control and operational risk activities must be unique or, in any event, they must be wholly administered by a single unit. | |
• | The specialized units promote policies and draw up internal regulations, the second-level development and application of which is the responsibility of the Corporate Internal Control and Operational Risk Unit. |
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Maximum Credit Risk Exposure | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Financial assets held for trading | 10 | 24,358 | 34,672 | 26,556 | ||||||||||||
Debt securities | 24,358 | 34,672 | 26,556 | |||||||||||||
Government | 20,397 | 31,290 | 20,778 | |||||||||||||
Credit institutions | 2,274 | 1,384 | 2,825 | |||||||||||||
Other sectors | 1,687 | 1,998 | 2,953 | |||||||||||||
Other financial assets designated at fair value through profit or loss | 11 | 691 | 639 | 516 | ||||||||||||
Debt securities | 691 | 639 | 516 | |||||||||||||
Government | 70 | 60 | 38 | |||||||||||||
Credit institutions | 87 | 83 | 24 | |||||||||||||
Other sectors | 534 | 496 | 454 | |||||||||||||
Available-for-sale financial assets | 12 | 50,602 | 57,067 | 39,961 | ||||||||||||
Debt securities | 50,602 | 57,067 | 39,961 | |||||||||||||
Government | 33,074 | 38,345 | 19,576 | |||||||||||||
Credit institutions | 11,235 | 12,646 | 13,377 | |||||||||||||
Other sectors | 6,293 | 6,076 | 7,008 | |||||||||||||
Loans and receivables | 13 | 373,037 | 353,741 | 375,387 | ||||||||||||
Loans and advances to credit institutions | 23,604 | 22,200 | 33,679 | |||||||||||||
Loans and advances to customers | 347,210 | 331,087 | 341,322 | |||||||||||||
Government | 31,224 | 26,219 | 22,503 | |||||||||||||
Agriculture | 3,977 | 3,924 | 4,109 | |||||||||||||
Industry | 36,578 | 42,799 | 46,576 | |||||||||||||
Real estate and construction | 55,854 | 55,766 | 54,522 | |||||||||||||
Trade and finance | 45,689 | 40,714 | 44,885 | |||||||||||||
Loans to individuals | 135,868 | 126,488 | 127,890 | |||||||||||||
Finance leases | 8,141 | 8,222 | 9,385 | |||||||||||||
Other | 29,879 | 26,955 | 31,452 | |||||||||||||
Debt securities | 2,223 | 454 | 386 | |||||||||||||
Government | 2,040 | 342 | 290 | |||||||||||||
Credit institutions | 6 | 4 | 4 | |||||||||||||
Other sectors | 177 | 108 | 92 | |||||||||||||
Held-to-maturity investments | 14 | 9,946 | 5,438 | 5,285 | ||||||||||||
Government | 8,792 | 4,064 | 3,844 | |||||||||||||
Credit institutions | 552 | 754 | 800 | |||||||||||||
Other sectors | 602 | 620 | 641 | |||||||||||||
Derivatives (trading and hedging) | 10-15 | 44,762 | 42,836 | 46,887 | ||||||||||||
Subtotal | 503,396 | 494,393 | 494,591 | |||||||||||||
Valuation adjustments | 299 | 436 | 942 | |||||||||||||
Total balance | 503,695 | 494,829 | 495,533 | |||||||||||||
Financial guarantees | 36,441 | 33,185 | 35,952 | |||||||||||||
Drawable by third parties | 86,790 | 84,925 | 92,663 | |||||||||||||
Government | 4,135 | 4,567 | 4,221 | |||||||||||||
Credit institutions | 2,303 | 2,257 | 2,021 | |||||||||||||
Other sectors | 80,352 | 78,101 | 86,421 | |||||||||||||
Other contingent exposures | 3,784 | 7,398 | 6,234 | |||||||||||||
Total off-balance | 34 | 127,015 | 125,508 | 134,849 | ||||||||||||
Total maximum credit exposure | 630,710 | 620,337 | 630,382 | |||||||||||||
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• | Financial assets held for trading: The guarantees or credit enhancements obtained directly from the issuer or counterparty are implicit in the clauses of the instrument. In trading derivatives, credit risk is minimized through contractual netting agreements, where positive- and negative-value derivatives with the same counterparty are offset for their net balance. There may likewise be other kinds of guarantees, depending on counterparty solvency and the nature of the transaction. | |
• | Other financial assets designated at fair value through profit or loss:The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent in the structure of the instrument. | |
• | Available for sale financial assets: The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent in the structure of the instrument. | |
• | Loans and receivables: |
• | Loans and advances to credit institutions: These have the counterparty’s personal guarantee. | |
• | Total lending to customers: Most of these operations are backed by personal guarantees extended by the counterparty. The collateral received to secure loans and advances to other debtors includes mortgages, |
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cash guarantees and other collateral such as pledged securities. Other kinds of credit enhancements may be put in place such as guarantees. |
• | Debt securities: The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent in the structure of the instrument. |
• | Held-to-maturity investments: The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent in the structure of the instrument. | |
• | Hedging derivatives: Credit risk is minimized through contractual netting agreements, where positive- and negative-value derivatives with the same counterparty are settled at their net balance. There may likewise be other kinds of guarantees, depending on counterparty solvency and the nature of the transaction. | |
• | Financial guarantees, other contingent exposures and drawable by third parties:These have the counterparty’s personal guarantee. |
Collateralized Credit Risk | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Mortgage loans | 132,628 | 127,957 | 125,540 | |||||||||
Operating assets mortgage loans | 3,638 | 4,050 | 3,896 | |||||||||
Home mortgages | 108,224 | 99,493 | 96,772 | |||||||||
Rest of mortgages | 20,766 | 24,414 | 24,872 | |||||||||
Secured loans, except mortgage | 18,154 | 20,917 | 19,982 | |||||||||
Cash guarantees | 281 | 231 | 250 | |||||||||
Secured loan (pledged securities) | 563 | 692 | 458 | |||||||||
Rest of secured loans | 17,310 | 19,994 | 19,274 | |||||||||
Total | 150,782 | 148,874 | 145,522 | |||||||||
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Probability of Default (Basic Points) | ||||||||||||
Internal Rating | Minimum from | |||||||||||
Reduced List (17 Groups) | Average | >= | Maximum | |||||||||
AAA | 1 | — | 2 | |||||||||
AA+ | 2 | 2 | 3 | |||||||||
AA | 3 | 3 | 4 | |||||||||
AA− | 4 | 4 | 5 | |||||||||
A+ | 5 | 5 | 6 | |||||||||
A | 8 | 6 | 9 | |||||||||
A− | 10 | 9 | 11 | |||||||||
BBB+ | 14 | 11 | 17 | |||||||||
BBB | 20 | 17 | 24 | |||||||||
BBB- | 31 | 24 | 39 | |||||||||
BB+ | 51 | 39 | 67 | |||||||||
BB | 88 | 67 | 116 | |||||||||
BB- | 150 | 116 | 194 | |||||||||
B+ | 255 | 194 | 335 | |||||||||
B | 441 | 335 | 581 | |||||||||
B− | 785 | 581 | 1,061 | |||||||||
C | 2,122 | 1,061 | 4,243 |
Credit Risk Distribution by Internal Rating | 2010 | 2009 | 2008 | |||||||||
AAA/AA+/AA/AA− | 26.94 | % | 19.55 | % | 23.78 | % | ||||||
A+/A/A− | 27.49 | % | 28.78 | % | 26.59 | % | ||||||
BBB+ | 9.22 | % | 8.65 | % | 9.23 | % | ||||||
BBB | 4.49 | % | 7.06 | % | 5.76 | % | ||||||
BBB- | 5.50 | % | 6.91 | % | 9.48 | % | ||||||
BB+ | 5.10 | % | 4.46 | % | 8.25 | % | ||||||
BB | 4.57 | % | 6.05 | % | 6.16 | % | ||||||
BB- | 4.88 | % | 6.45 | % | 5.91 | % | ||||||
B+ | 4.84 | % | 5.38 | % | 3.08 | % | ||||||
B | 4.81 | % | 3.34 | % | 1.44 | % | ||||||
B− | 1.89 | % | 0.88 | % | 0.28 | % | ||||||
CCC/CC | 0.27 | % | 2.49 | % | 0.03 | % | ||||||
Total | 100.00 | % | 100.00 | % | 100.00 | % | ||||||
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• | The need to balance the customer’s financing needs, broken down by type (commercial/financial, short/long-term, etc.). This approach provides a better operational mix that is still compatible with the needs of the bank’s clientele. | |
• | Other determining factors are national legislation and the ratio between the size of customer lending and the Bank’s equity (to prevent risk from becoming overly concentrated among few customers). Additional factors taken into consideration include constraints related to market, customer, internal regulation and macroeconomic factors, etc. | |
• | Meanwhile, correct portfolio management leads to identification of risk concentrations and enables appropriate action to be taken. |
Exposure to Sovereign Counterparties by Ratings(*) | Millions of euros | % | ||||||
Higher than AA | 35,293 | 56.23 | % | |||||
Of which: | ||||||||
Spain | 31,212 | 49.72 | % | |||||
AA or below | 27,475 | 43.77 | % | |||||
Of which: | ||||||||
Mexico | 17,665 | 28.14 | % | |||||
Italy | 4,229 | 6.74 | % | |||||
Portugal | 58 | 0.09 | % | |||||
Grece | 107 | 0.17 | % | |||||
Ireland | — | — | ||||||
Total | 62,768 | 100.00 | % |
(*) | Global Ratings established by external rating agencies as of December 31, 2010. |
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2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||
Less than 1 | Less than 1 | Less than 1 | ||||||||||||||||||||||||||||||||||
Financial Assets Past | Months | 1 to 2 Months | 1 to 3 Months | Months | 1 to 2 Months | 1 to 3 Months | Months | 1 to 2 Months | 1 to 3 Months | |||||||||||||||||||||||||||
Due but Not Impaired | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | Past-Due | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Loans and advances to credit institutions | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Loans and advances to customers | 1,082 | 311 | 277 | 2,653 | 336 | 311 | 1,580 | 534 | 447 | |||||||||||||||||||||||||||
Government | 122 | 27 | 27 | 45 | 32 | 19 | 30 | 10 | 12 | |||||||||||||||||||||||||||
Other sectors | 960 | 284 | 250 | 2,608 | 304 | 292 | 1,550 | 524 | 435 | |||||||||||||||||||||||||||
Debt securities | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total | 1,082 | 311 | 277 | 2,653 | 336 | 311 | 1,580 | 534 | 447 | |||||||||||||||||||||||||||
Impaired Risks. Breakdown by Type of Asset and by Sector | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
IMPAIRED RISKS ON BALANCE | ||||||||||||
Available-for-sale financial assets | 140 | 212 | 188 | |||||||||
Debt securities | 140 | 212 | 188 | |||||||||
Loans and receivables | 15,472 | 15,311 | 8,540 | |||||||||
Loans and advances to credit institutions | 101 | 100 | 95 | |||||||||
Loans and advances to customers | 15,361 | 15,197 | 8,437 | |||||||||
Debt securities | 10 | 14 | 8 | |||||||||
TOTAL IMPAIRED RISKS ON BALANCE(1) | 15,612 | 15,523 | 8,728 | |||||||||
IMPAIRED RISKS OFF BALANCE(2) | ||||||||||||
Impaired contingent liabilities | 324 | 405 | 131 | |||||||||
TOTAL IMPAIRED RISKS(1)+(2) | 15,936 | 15,928 | 8,859 | |||||||||
Of which: | ||||||||||||
Goverment | 123 | 87 | 102 | |||||||||
Credit institutions | 129 | 172 | 165 | |||||||||
Other sectors | 15,360 | 15,264 | 8,461 | |||||||||
Mortgage | 8,627 | 7,932 | 3,047 | |||||||||
With partial secured loans | 159 | 37 | 4 | |||||||||
Rest | 6,574 | 7,295 | 5,410 | |||||||||
Impaired contingent liabilities | 324 | 405 | 131 | |||||||||
TOTAL IMPAIRED RISKS | 15,936 | 15,928 | 8,859 | |||||||||
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Changes in Impaired Financial Assets and Contingent Liabilities | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Balance at the beginning | 15,928 | 8,859 | 3,418 | |||||||||
Additions(1) | 13,207 | 17,298 | 11,488 | |||||||||
Recoveries(2) | (9,138 | ) | (6,524 | ) | (3,668 | ) | ||||||
Net additions(1)+(2) | 4,069 | 10,774 | 7,820 | |||||||||
Transfers to writeoff | (4,307 | ) | (3,737 | ) | (2,198 | ) | ||||||
Exchange differences and other | 247 | 32 | (181 | ) | ||||||||
Balance at the end | 15,936 | 15,928 | 8,859 | |||||||||
Recoveries on entries (%) | 69 | 38 | 32 | |||||||||
Less than 6 | 6 to 9 | 9 to 12 | More than | |||||||||||||||||
Months | Months | Months | 12 Months | |||||||||||||||||
2010 | Past-Due | Past-Due | Past-Due | Past-Due | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Spain | 5,279 | 1,064 | 798 | 4,544 | 11,685 | |||||||||||||||
Rest of Europe | 106 | 24 | 24 | 55 | 209 | |||||||||||||||
Latin America | 1,473 | 112 | 100 | 397 | 2,082 | |||||||||||||||
The United States | 1,110 | 84 | 111 | 331 | 1,636 | |||||||||||||||
Rest of the world | — | — | — | — | — | |||||||||||||||
Total | 7,968 | 1,284 | 1,034 | 5,327 | 15,612 | |||||||||||||||
Less than 6 | 6 to 9 | 9 to 12 | More than | |||||||||||||||||
Months | Months | Months | 12 Months | |||||||||||||||||
2010 | Past-Due | Past-Due | Past-Due | Past-Due | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Unsecured loans | 4,309 | 338 | 271 | 1,710 | 6,628 | |||||||||||||||
Mortgage | 3,301 | 946 | 763 | 3,617 | 8,627 | |||||||||||||||
Residential mortgage | 629 | 304 | 271 | 1,472 | 2,676 | |||||||||||||||
Commercial mortgage (rural properties in operation and offices, and industrial buildings) | 561 | 128 | 100 | 602 | 1,391 | |||||||||||||||
Rest of residential mortgage | 701 | 132 | 99 | 593 | 1,525 | |||||||||||||||
Plots and other real state assets | 1,410 | 382 | 293 | 950 | 3,035 | |||||||||||||||
Other partially secured loans | 159 | — | — | — | 159 | |||||||||||||||
Others | 199 | — | — | — | 198 | |||||||||||||||
Total | 7,968 | 1,284 | 1,034 | 5,327 | 15,612 | |||||||||||||||
2010 | 2009 | 2008 | ||||||||||
Millions of euros | ||||||||||||
Financial Income from Impaired Assets | 1,717 | 1,485 | 1,042 |
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Changes in Impaired Financial Assets Written-Off from the Balance Sheet | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Balance at the beginning | 9,834 | 6,872 | 5,622 | |||||||||
Increase: | 4,788 | 3,880 | 1,976 | |||||||||
Decrease: | (1,448 | ) | (1,172 | ) | (567 | ) | ||||||
Re-financing or restructuring | (1 | ) | — | — | ||||||||
Cash recovery | (253 | ) | (188 | ) | (199 | ) | ||||||
Foreclosed assets | (5 | ) | (48 | ) | (13 | ) | ||||||
Sales of written-off | (342 | ) | (590 | ) | (261 | ) | ||||||
Other causes | (847 | ) | (346 | ) | (94 | ) | ||||||
Net exchange differences | 193 | 253 | (159 | ) | ||||||||
Balance at the end | 13,367 | 9,833 | 6,872 | |||||||||
Percentage (%) | ||||||||||||
NPA Ratio | 2010 | 2009 | 2008 | |||||||||
BBVA Group | 4.1 | 4.3 | 2.3 |
Impairment Losses | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Available-for-sale portfolio | 12 | 619 | 449 | 202 | ||||||||||||
Loans and receivables | 13 | 9,473 | 8,805 | 7,505 | ||||||||||||
Loans and advances to customers | 9,396 | 8,720 | 7,412 | |||||||||||||
Loans and advances to credit institutions | 67 | 68 | 74 | |||||||||||||
Debt securities | 10 | 17 | 19 | |||||||||||||
Held to maturity investment | 14 | 1 | 1 | 4 | ||||||||||||
Total | 10,093 | 9,255 | 7,711 | |||||||||||||
Of which: | ||||||||||||||||
For impaired portfolio | 7,362 | 6,380 | 3,480 | |||||||||||||
For currently non-impaired portfolio | 2,731 | 2,875 | 4,231 |
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Changes in the Impairment Losses | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Balance at the beginning | 9,255 | 7,711 | 7,194 | |||||||||
Increase in impairment losses charged to income | 7,207 | 8,282 | 4,590 | |||||||||
Decrease in impairment losses credited to income | (2,236 | ) | (2,622 | ) | (1,457 | ) | ||||||
Transfers to written-off loans | (4,488 | ) | (3,878 | ) | (1,951 | ) | ||||||
Exchange differences and other | 355 | (238 | ) | (662 | ) | |||||||
Balance at the end | 10,093 | 9,255 | 7,711 | |||||||||
Of which: | ||||||||||||
For impaired portfolio | 7,362 | 6,380 | 3,480 | |||||||||
For currently non-impaired portfolio | 2,731 | 2,875 | 4,231 | |||||||||
Changes in the Impairment Losses of the Heading Loans and Receivables - Loans and Advances to Customers | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Balance at the beginning | 8,720 | 7,412 | 7,117 | |||||||||
Increase in impairment losses charged to income | 7,014 | 7,983 | 4,434 | |||||||||
Decrease in impairment losses credited to income | (2,200 | ) | (2,603 | ) | (1,636 | ) | ||||||
Transfers to written-off loans | (4,423 | ) | (3,828 | ) | (1,950 | ) | ||||||
Exchange differences and other | 285 | (244 | ) | (553 | ) | |||||||
Balance at the end | 9,396 | 8,720 | 7,412 | |||||||||
Of which: | ||||||||||||
For impaired portfolio | 6,683 | 5,864 | 3,239 | |||||||||
For currently non-impaired portfolio | 2,713 | 2,856 | 4,173 | |||||||||
a) | Market Risk |
• | Interest rate risk: Defined as changes in the term structure of market interest rates for different currencies. | |
• | Foreign-exchange risk: This is the risk resulting from changes in the foreign exchange rate for different currencies. | |
• | Price risk: This is the risk resulting from variations in market prices, either due to factors specific to the instrument itself, or alternatively to factors which affect all the instruments traded on the market. |
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VaR by Risk Factor | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Interest/Spread risk | 29 | 38 | 24 | |||||||||
Currency risk | 3 | 2 | 7 | |||||||||
Stock-market risk | 4 | 9 | 1 | |||||||||
Vega/Correlation risk | 12 | 15 | 15 | |||||||||
Diversification effect | (21 | ) | (33 | ) | (24 | ) | ||||||
Total | 28 | 31 | 23 | |||||||||
VaR medium in the period | 33 | 26 | 20 | |||||||||
VaR max in the period | 41 | 33 | 35 | |||||||||
VaR min in the period | 25 | 18 | 13 |
b) | Structural interest rate risk |
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Impact on Net Interest | Impact on Economic | |||||||||||||||
Income(*) | Value(**) | |||||||||||||||
100 Basis- | 100 Basis- | 100 Basis- | 100 Basis- | |||||||||||||
Point | Point | Point | Point | |||||||||||||
2010 | Increase | Decrease | Increase | Decrease | ||||||||||||
Europe | −3.06 | % | +4.83 | % | +1.10 | % | −1.21 | % | ||||||||
BBVA Bancomer | +1.71 | % | −1.71 | % | −1.49 | % | +0.98 | % | ||||||||
BBVA Compass | +3.63 | % | −2.66 | % | +1.60 | % | −3.39 | % | ||||||||
BBVA Puerto Rico | +4.50 | % | −4.27 | % | +2.88 | % | −2.48 | % | ||||||||
BBVA Chile | −1.36 | % | +1.29 | % | −5.13 | % | +3.72 | % | ||||||||
BBVA Colombia | +1.32 | % | −1.33 | % | −2.51 | % | +2.50 | % | ||||||||
BBVA Banco Continental | +2.28 | % | −2.25 | % | −4.93 | % | +5.26 | % | ||||||||
BBVA Banco Provincial | +1.66 | % | −1.55 | % | −0.64 | % | +0.66 | % | ||||||||
BBVA Banco Francés | +0.47 | % | −0.48 | % | −2.02 | % | +2.12 | % | ||||||||
BBVA Group | +0.43 | % | +0.26 | % | +0.44 | % | −0.91 | % |
(*) | Percentage relating to “1 year” net Interest margin forecast in each entity. | |
(**) | Percentage relating to each entity’s Capital Base. |
c) | Structural currency risk |
d) | Structural equity risk |
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7.3 | LIQUIDITY RISK |
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Europe, | ||||||||||||||||||||||||
Excluding | Latin | |||||||||||||||||||||||
2010 | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
RISKS ON-BALANCE | ||||||||||||||||||||||||
Financial assets held for trading | 18,903 | 22,899 | 3,951 | 15,126 | 2,404 | 63,283 | ||||||||||||||||||
Debt securities | 9,522 | 2,839 | 654 | 10,938 | 405 | 24,358 | ||||||||||||||||||
Equity instruments | 3,041 | 888 | 148 | 861 | 322 | 5,260 | ||||||||||||||||||
Derivatives | 6,340 | 19,172 | 3,149 | 3,327 | 1,677 | 33,665 | ||||||||||||||||||
Other financial assets designated at fair value through profit or loss | 284 | 98 | 481 | 1,913 | 1 | 2,777 | ||||||||||||||||||
Debt securities | 138 | 66 | 480 | 7 | — | 691 | ||||||||||||||||||
Equity instruments | 146 | 32 | 1 | 1,906 | 1 | 2,086 | ||||||||||||||||||
Available-for-sale portfolio | 25,230 | 7,689 | 7,581 | 14,449 | 1,234 | 56,183 | ||||||||||||||||||
Debt securities | 20,725 | 7,470 | 6,903 | 14,317 | 1,187 | 50,602 | ||||||||||||||||||
Equity instruments | 4,505 | 219 | 678 | 132 | 47 | 5,581 | ||||||||||||||||||
Loans and receivables | 218,399 | 30,985 | 39,944 | 77,861 | 5,847 | 373,036 | ||||||||||||||||||
Loans and advances to credit institutions | 6,786 | 7,846 | 864 | 7,090 | 1,018 | 23,604 | ||||||||||||||||||
Loans and advances to customers | 210,102 | 23,139 | 38,649 | 70,497 | 4,822 | 347,209 | ||||||||||||||||||
Debt securities | 1,511 | — | 431 | 274 | 7 | 2,223 | ||||||||||||||||||
Held-to-maturity investments | 7,504 | 2,443 | — | — | — | 9,947 | ||||||||||||||||||
Hedging derivatives | 234 | 2,922 | 131 | 281 | 35 | 3,603 | ||||||||||||||||||
Total | 270,554 | 67,036 | 52,088 | 109,630 | 9,521 | 508,829 | ||||||||||||||||||
RISKS OFF-BALANCE | ||||||||||||||||||||||||
Financial guarantees | 20,175 | 6,773 | 3,069 | 4,959 | 1,465 | 36,441 | ||||||||||||||||||
Contingent exposures | 35,784 | 19,144 | 17,604 | 17,132 | 910 | 90,574 | ||||||||||||||||||
Total | 55,959 | 25,917 | 20,673 | 22,091 | 2,375 | 127,015 | ||||||||||||||||||
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Europe, | ||||||||||||||||||||||||
Excluding | Latin | |||||||||||||||||||||||
2009 | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
RISKS ON-BALANCE | ||||||||||||||||||||||||
Financial assets held for trading | 22,893 | 25,583 | 3,076 | 15,941 | 2,240 | 69,733 | ||||||||||||||||||
Debt securities | 14,487 | 7,434 | 652 | 11,803 | 296 | 34,672 | ||||||||||||||||||
Equity instruments | 3,268 | 624 | 35 | 1,662 | 194 | 5,783 | ||||||||||||||||||
Derivatives | 5,138 | 17,525 | 2,389 | 2,476 | 1,750 | 29,278 | ||||||||||||||||||
Other financial assets designated at fair value through profit or loss | 330 | 73 | 436 | 1,498 | — | 2,337 | ||||||||||||||||||
Debt securities | 157 | 42 | 435 | 5 | — | 639 | ||||||||||||||||||
Equity instruments | 173 | 31 | 1 | 1,493 | — | 1,698 | ||||||||||||||||||
Available-for-sale portfolio | 30,177 | 11,660 | 7,828 | 12,585 | 1,266 | 63,516 | ||||||||||||||||||
Debt securities | 24,838 | 11,429 | 7,082 | 12,494 | 1,223 | 57,066 | ||||||||||||||||||
Equity instruments | 5,339 | 231 | 746 | 91 | 43 | 6,450 | ||||||||||||||||||
Loans and receivables | 206,097 | 34,613 | 40,469 | 66,395 | 6,167 | 353,741 | ||||||||||||||||||
Loans and advances to credit institutions | 2,568 | 11,280 | 2,441 | 4,993 | 918 | 22,200 | ||||||||||||||||||
Loans and advances to customers | 203,529 | 23,333 | 37,688 | 61,298 | 5,239 | 331,087 | ||||||||||||||||||
Debt securities | — | — | 340 | 104 | 10 | 454 | ||||||||||||||||||
Held-to-maturity investments | 2,625 | 2,812 | — | — | — | 5,437 | ||||||||||||||||||
Hedging derivatives | 218 | 2,965 | 117 | 270 | 25 | 3,595 | ||||||||||||||||||
Total | 262,340 | 77,706 | 51,926 | 96,689 | 9,698 | 498,359 | ||||||||||||||||||
RISKS OFF-BALANCE | ||||||||||||||||||||||||
Financial guarantees | 15,739 | 7,826 | 3,330 | 4,601 | 1,689 | 33,185 | ||||||||||||||||||
Contingent exposures | 37,804 | 24,119 | 15,990 | 13,164 | 1,246 | 92,323 | ||||||||||||||||||
Total | 53,543 | 31,945 | 19,320 | 17,765 | 2,935 | 125,508 | ||||||||||||||||||
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Europe, | ||||||||||||||||||||||||
Excluding | ||||||||||||||||||||||||
2008 | Spain | Spain | USA | Latin America | Rest | Total | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
RISK ON-BALANCE | ||||||||||||||||||||||||
Financial assets held for trading | 20,489 | 30,251 | 4,566 | 16,120 | 1,873 | 73,299 | ||||||||||||||||||
Debt securities | 7,799 | 5,926 | 652 | 11,563 | 616 | 26,556 | ||||||||||||||||||
Equity instruments | 2,332 | 1,376 | 80 | 1,071 | 938 | 5,797 | ||||||||||||||||||
Derivatives | 10,358 | 22,949 | 3,834 | 3,486 | 319 | 40,946 | ||||||||||||||||||
Other financial assets designated at fair value through profit or loss | 245 | 24 | 442 | 1,042 | 1 | 1,754 | ||||||||||||||||||
Debt securities | 63 | — | 441 | 12 | — | 516 | ||||||||||||||||||
Equity instruments | 182 | 24 | 1 | 1,030 | 1 | 1,238 | ||||||||||||||||||
Available-for-sale portfolio | 15,233 | 10,460 | 9,633 | 8,449 | 2,999 | 46,774 | ||||||||||||||||||
Debt securities | 11,811 | 9,970 | 8,889 | 8,368 | 924 | 39,962 | ||||||||||||||||||
Equity instruments | 3,422 | 490 | 744 | 81 | 2,075 | 6,812 | ||||||||||||||||||
Loans and receivables | 215,030 | 44,394 | 38,268 | 69,534 | 8,162 | 375,388 | ||||||||||||||||||
Loans and advances to credit institutions | 6,556 | 15,848 | 2,479 | 7,466 | 1,330 | 33,679 | ||||||||||||||||||
Loans and advances to customers | 208,474 | 28,546 | 35,498 | 61,978 | 6,826 | 341,322 | ||||||||||||||||||
Debt securities | — | — | 291 | 90 | 6 | 387 | ||||||||||||||||||
Held-to-maturity investments | 2,396 | 2,889 | — | — | — | 5,285 | ||||||||||||||||||
Hedging derivatives | 439 | 2,789 | 270 | 309 | 26 | 3,833 | ||||||||||||||||||
Total | 253,832 | 90,807 | 53,179 | 95,454 | 13,060 | 506,333 | ||||||||||||||||||
Europe, | ||||||||||||||||||||||||
Excluding | ||||||||||||||||||||||||
Spain | Spain | USA | Latin America | Rest | Total | |||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
RISK OFF-BALANCE | ||||||||||||||||||||||||
Financial guarantees | 16,843 | 8,969 | 3,456 | 4,721 | 1,963 | 35,952 | ||||||||||||||||||
Contingent exposures | 45,039 | 22,366 | 16,194 | 13,559 | 1,739 | 98,897 | ||||||||||||||||||
Total | 61,882 | 31,335 | 19,650 | 18,280 | 3,702 | 134,849 | ||||||||||||||||||
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7.5. | RESIDUAL MATURITY |
Up to | 1 to | 3 to | 1 to | Over | ||||||||||||||||||||||||
2010 | Demand | 1 Month | 3 Months | 12 Months | 5 Years | 5 Years | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 17,275 | 1,497 | 693 | 220 | 282 | — | 19,967 | |||||||||||||||||||||
Loans and advances to credit institutions | 2,471 | 10,590 | 1,988 | 1,658 | 4,568 | 2,329 | 23,604 | |||||||||||||||||||||
Loans and advances to customers | 16,543 | 33,397 | 21,127 | 49,004 | 85,800 | 141,338 | 347,209 | |||||||||||||||||||||
Debt securities | 497 | 3,471 | 12,423 | 8,123 | 35,036 | 28,271 | 87,821 | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 636 | 1,515 | 3,503 | 13,748 | 17,827 | 37,229 | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Deposits from central banks | 50 | 5,102 | 3,130 | 2,704 | — | 1 | 10,987 | |||||||||||||||||||||
Deposits from credit institutions | 4,483 | 30,031 | 4,184 | 3,049 | 9,590 | 5,608 | 56,945 | |||||||||||||||||||||
Deposits from customers | 111,090 | 69,625 | 21,040 | 45,110 | 21,158 | 6,818 | 274,841 | |||||||||||||||||||||
Debt certificates (including bonds) | 96 | 5,243 | 10,964 | 7,159 | 42,907 | 15,843 | 82,212 | |||||||||||||||||||||
Subordinated liabilities | — | 537 | 3 | 248 | 2,732 | 13,251 | 16,771 | |||||||||||||||||||||
Other financial liabilities | 4,177 | 1,207 | 175 | 433 | 647 | 1,564 | 8,203 | |||||||||||||||||||||
Short positions | — | 651 | — | 10 | — | 3,385 | 4,046 | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 826 | 1,473 | 3,682 | 12,813 | 16,037 | 34,831 |
Up to 1 | 1 to 3 | 3 to 12 | 1 to 5 | Over 5 | ||||||||||||||||||||||||
2009 | Demand | Month | Months | Months | Years | Years | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 14,650 | 535 | 248 | 735 | 163 | — | 16,331 | |||||||||||||||||||||
Loans and advances to credit institutions | 3,119 | 8,484 | 1,549 | 1,914 | 4,508 | 2,626 | 22,200 | |||||||||||||||||||||
Loans and advances to customers | 4,313 | 31,155 | 19,939 | 40,816 | 94,686 | 140,178 | 331,087 | |||||||||||||||||||||
Debt securities | 1,053 | 4,764 | 15,611 | 10,495 | 37,267 | 29,080 | 98,270 | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 637 | 2,072 | 3,863 | 13,693 | 12,608 | 32,873 | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Deposits from central banks | 213 | 4,807 | 3,783 | 12,293 | — | — | 21,096 | |||||||||||||||||||||
Deposits from credit institutions | 1,836 | 24,249 | 5,119 | 5,145 | 6,143 | 6,453 | 48,945 | |||||||||||||||||||||
Deposits from customers | 106,942 | 55,482 | 34,329 | 32,012 | 18,325 | 6,293 | 253,383 | |||||||||||||||||||||
Debt certificates (including bonds) | — | 10,226 | 16,453 | 15,458 | 40,435 | 14,614 | 97,186 | |||||||||||||||||||||
Subordinated liabilities | — | 500 | 689 | 2 | 1,529 | 14,585 | 17,305 | |||||||||||||||||||||
Other financial liabilities | 3,825 | 822 | 141 | 337 | 480 | 20 | 5,625 | |||||||||||||||||||||
Short positions | — | 448 | — | 16 | — | 3,366 | 3,830 | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 735 | 1,669 | 3,802 | 13,585 | 10,517 | 30,308 |
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Up to 1 | 1 to 3 | 3 to 12 | 1 to 5 | Over 5 | ||||||||||||||||||||||||
2008 | Demand | Month | Months | Months | Years | Years | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 13,487 | 476 | 296 | 181 | 202 | — | 14,642 | |||||||||||||||||||||
Loans and advances to credit institutions | 6,198 | 16,216 | 1,621 | 2,221 | 4,109 | 3,314 | 33,679 | |||||||||||||||||||||
Loans and advances to customers | 13,905 | 36,049 | 23,973 | 45,320 | 91,030 | 131,045 | 341,322 | |||||||||||||||||||||
Debt securities | 716 | 1,701 | 12,230 | 9,483 | 24,640 | 23,934 | 72,704 | |||||||||||||||||||||
Other assets | — | — | — | — | — | — | — | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 3,739 | 2,206 | 5,442 | 16,965 | 16,427 | 44,779 | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Deposits from central banks | 2,419 | 8,737 | 2,441 | 3,165 | — | — | 16,762 | |||||||||||||||||||||
Deposits from credit institutions | 4,906 | 22,412 | 4,090 | 5,975 | 6,581 | 5,609 | 49,573 | |||||||||||||||||||||
Deposits from customers | 101,141 | 68,804 | 27,025 | 35,176 | 16,440 | 5,137 | 253,723 | |||||||||||||||||||||
Debt certificates (including bonds) | — | 9,788 | 13,516 | 12,072 | 45,469 | 20,483 | 101,328 | |||||||||||||||||||||
Subordinated liabilities | 69 | 913 | 1 | 872 | 3,582 | 10,812 | 16,249 | |||||||||||||||||||||
Other financial liabilities | 5,000 | 1,152 | 385 | 203 | 1,371 | 342 | 8,453 | |||||||||||||||||||||
Short positions | — | 24 | — | 23 | — | 2,653 | 2,700 | |||||||||||||||||||||
Derivatives (trading and hedging) | — | 2,693 | 3,108 | 6,310 | 15,538 | 13,886 | 41,535 |
7.6. | RISK IN THE REAL ESTATE AND CONSTRUCTION SECTOR IN SPAIN |
Financing Allocated to | Drawn Over | |||||||||||
Construction and Real Estate | the Guarantee | Provision | ||||||||||
Development and its Coverage | Gross Amount | Value | Coverage | |||||||||
Millions of euros | ||||||||||||
Loans recorded by the Group’s credit institutions (Business in Spain) | 16,608 | 4,869 | 1,224 | |||||||||
Of which: Impaired assets | 3,543 | 1,355 | 893 | |||||||||
Of which: Potencial problem assets | 2,381 | 1,185 | 331 | |||||||||
Memorandum item: | ||||||||||||
Total provision for currently non-impaired portfolio (Total business) | n/a | n/a | 2,698 | |||||||||
Write-offs | 23 | n/a | n/a |
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Memorandum Item: | ||||
Consolidated Group Data (Carrying Amount) | 2010 | |||
Millions of euros | ||||
Total loans and advances to customers, excluding the Public Sector (Business in Spain) | 185,361 | |||
Total consolidated assets (total business) | 552,738 |
Credit: Gross amount (Business in Spain) | 2010 | |||
Millions of euros | ||||
Without secured loan | 1,259 | |||
With secured loan | 15,249 | |||
Terminated buildings | 7,403 | |||
Homes | 7,018 | |||
Other | 385 | |||
Buildings under construction | 3,531 | |||
Homes | 3,320 | |||
Other | 211 | |||
Land | 4,315 | |||
Urbanized land | 2,922 | |||
Rest of land | 1,393 | |||
Rest | 100 | |||
Total | 16,608 | |||
Housing-Acquisition Loans to Households | ||||
(Business in Spain) | 2010 | |||
Millions of euros | ||||
Without secured loan (gross amount) | — | |||
of which: Impaired | — | |||
With secured loan (gross amount) | 80,027 | |||
of which: Impaired | 2,324 | |||
Total | 80,027 | |||
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LTV Breakdown | Over 50% | Over 80% | ||||||||||||||
of Secured Loans to | but Less | but Less | ||||||||||||||
Households for the | Less Than | than or | than or | |||||||||||||
Purchase of a Home | or Equal to | Equal to | Equal to | |||||||||||||
(Business in Spain) | 50% | 80% | 100% | Over 100% | ||||||||||||
Millions of euros | ||||||||||||||||
Gross amount | 20,109 | 44,362 | 14,399 | 1,157 | ||||||||||||
of which: Impaired | 413 | 806 | 903 | 202 |
Foreclosed Assets to the Consolidated | Carrying | Of which: | ||||||||||
Group Entities (Business in Spain) | Amount | Coverage | ||||||||||
Millions of euros | ||||||||||||
Real estate assets from loans to the construction and real estate development sectors in Spain | 2,214 | 1,045 | ||||||||||
Terminated buildings | 598 | 202 | ||||||||||
Homes | 341 | 110 | ||||||||||
Other | 257 | 92 | ||||||||||
Buildings under construction | 124 | 74 | ||||||||||
Homes | 115 | 71 | ||||||||||
Other | 9 | 3 | ||||||||||
Land | 1,492 | 769 | ||||||||||
Urbanized land | 724 | 392 | ||||||||||
Rest of land | 768 | 377 | ||||||||||
Rest of real estate assets from mortgage financing for households for the purchase of a home | 682 | 193 | ||||||||||
Rest of foreclosed real estate assets | 127 | 77 | ||||||||||
Equity instruments, investments and financing to non-consolidated companies holding said assets | 168 | 287 |
8. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
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2010 | 2009 | 2008 | ||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||
Fair Value and Carrying Amount | Notes | Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 9 | 19,981 | 19,981 | 16,344 | 16,344 | 14,659 | 14,659 | |||||||||||||||||||||
Financial assets held for trading | 10 | 63,283 | 63,283 | 69,733 | 69,733 | 73,299 | 73,299 | |||||||||||||||||||||
Other financial assets designated at fair value through profit or loss | 11 | 2,774 | 2,774 | 2,337 | 2,337 | 1,754 | 1,754 | |||||||||||||||||||||
Available-for-sale financial assets | 12 | 56,456 | 56,456 | 63,521 | 63,521 | 47,780 | 47,780 | |||||||||||||||||||||
Loans and receivables | 13 | 364,707 | 371,359 | 346,117 | 354,933 | 369,494 | 381,845 | |||||||||||||||||||||
Held-to-maturity investments | 14 | 9,946 | 9,189 | 5,437 | 5,493 | 5,282 | 5,221 | |||||||||||||||||||||
Fair value changes of the hedges items in portfolio hedges of interes rate risk | 15 | 40 | 40 | — | — | — | — | |||||||||||||||||||||
Hedging derivatives | 15 | 3,563 | 3,563 | 3,595 | 3,595 | 3,833 | 3,833 | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Financial assets held for trading | 10 | 37,212 | 37,212 | 32,830 | 32,830 | 43,009 | 43,009 | |||||||||||||||||||||
Other financial liabilities designated at fair value through profit or loss | 11 | 1,607 | 1,607 | 1,367 | 1,367 | 1,033 | 1,033 | |||||||||||||||||||||
Financial liabilities at amortized cost | 23 | 453,164 | 453,504 | 447,936 | 448,537 | 450,605 | 447,722 | |||||||||||||||||||||
Fair value changes of the hedged items in portfolio hedges of interest rate risk | 15 | (2 | ) | (2 | ) | — | — | — | — |
• | The fair value of “Cash and balances with central banks”, which are short term by their very nature, is equivalent to their carrying amount. | |
• | The fair value of“Held-to-maturity investments” is equivalent to their quoted price in active markets. | |
• | The fair values of “Loans and receivables” and “Financial liabilities at amortized cost” were estimated by discounting estimated cash flows using the market interest rates prevailing at each year-end. The “Fair value changes of the hedged items in portfolio hedges of interest rate risk” item registers the difference between the carrying amount of the hedged deposits lent, registered under “Loans and Receivables,” and the fair value calculated using internal models and observable variables of market data (see Note 15). |
• | Level 1: Measurement using market observable quoted prices for the financial instrument in question, secured from independent sources and linked to active markets. This level includes listed debt securities, listed equity instruments, some derivatives and mutual funds. | |
• | Level 2: Measurement using valuation techniques the inputs for which are drawn from market observable data. |
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• | Level 3: Measurement using valuation techniques, where some of the inputs are not taken from market observable data. Model selection and validation is undertaken at the independent business units. As of December 31, 2010, Level 3 financial instruments accounted for 0.28% of financial assets and 0.01% of financial liabilities. |
2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||||
Fair Value by Levels | Notes | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||||||||||||||
Financial assets held for trading | 10 | 28,914 | 33,568 | 802 | 39,608 | 29,236 | 889 | 29,096 | 43,257 | 946 | ||||||||||||||||||||||||||||||
Debt securities | 22,930 | 921 | 508 | 33,043 | 1,157 | 471 | 22,227 | 4,015 | 314 | |||||||||||||||||||||||||||||||
Equity instruments | 5,034 | 92 | 134 | 5,504 | 94 | 185 | 5,348 | 89 | 360 | |||||||||||||||||||||||||||||||
Trading derivatives | 950 | 32,555 | 160 | 1,060 | 27,985 | 233 | 1,521 | 39,153 | 272 | |||||||||||||||||||||||||||||||
Other financial assets designated at fair value through profit or loss | 11 | 2,326 | 448 | — | 1,960 | 377 | — | 923 | 831 | — | ||||||||||||||||||||||||||||||
Debt securities | 624 | 64 | — | 584 | 54 | — | 515 | 1 | — | |||||||||||||||||||||||||||||||
Equity instruments | 1,702 | 384 | — | 1,376 | 323 | — | 408 | 830 | — | |||||||||||||||||||||||||||||||
Available-for-sale financial assets | 12 | 41,500 | 13,789 | 668 | 49,747 | 12,367 | 818 | 24,640 | 19,679 | 2,905 | ||||||||||||||||||||||||||||||
Debt securities | 37,024 | 13,352 | 499 | 44,387 | 12,146 | 538 | 19,274 | 19,384 | 1,173 | |||||||||||||||||||||||||||||||
Equity instruments | 4,476 | 437 | 169 | 5,360 | 221 | 280 | 5,366 | 295 | 1,732 | |||||||||||||||||||||||||||||||
Hedging derivatives | 15 | 265 | 3,298 | — | 302 | 3,293 | — | 444 | 3,386 | 2 | ||||||||||||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||||||||||||||
Financial liabilities held for trading | 10 | 4,961 | 32,225 | 25 | 4,936 | 27,797 | 96 | 4,517 | 38,408 | 84 | ||||||||||||||||||||||||||||||
Trading derivatives | 916 | 32,225 | 25 | 1,107 | 27,797 | 96 | 1,817 | 38,408 | 84 | |||||||||||||||||||||||||||||||
Short positions | 4,046 | — | — | 3,830 | — | — | 2,700 | — | — | |||||||||||||||||||||||||||||||
Other financial liabilities designated at fair value through profit or loss | 11 | — | 1,607 | — | — | 1,367 | — | — | 1,033 | — | ||||||||||||||||||||||||||||||
Hedging derivatives | 15 | 96 | 1,568 | — | 319 | 989 | — | 564 | 662 | — |
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(1) | Credit spread: The spread between the interest rate of a risk-free asset (e.g. Treasury securities) and the interest rate of any other security that is identical in every respect except for quality rating. Spreads are considered as Level 3 inputs when referring to illiquid issues. Based on spreads of similar entities. | |
(2) | Correlation decay: The constant rate of decay that allows us to calculate how the correlation evolves between the different pairs of forward rates. | |
(3) | Vol-of-Vol: Volatility of implicit volatility. This is a statistical measure of the changes of the spot volatility. | |
(4) | Reversion Factor: The speed with which volatility reverts to its natural value. | |
(5) | Volatility- Spot Correlation: A statistical measure of the linear relationship (correlation) between the spot price of a security and its volatility. |
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2010 | 2009 | |||||||||||||||
Financial Assets Level 3 Changes in the Period | Assets | Liabilities | Assets | Liabilities | ||||||||||||
Millions of euros | ||||||||||||||||
Balance at the beginning | 1,707 | 96 | 3,853 | 84 | ||||||||||||
Valuation adjustments recognized in the income statement(*) | (123 | ) | 12 | (146 | ) | 6 | ||||||||||
Valuation adjustments not recognized in the income statement | (18 | ) | — | 33 | — | |||||||||||
Acquisitions, disposals and liquidations | (334 | ) | �� | (100 | ) | (634 | ) | (1 | ) | |||||||
Net transfers to Level 3 | 236 | — | (1,375 | ) | 7 | |||||||||||
Exchange differences | 1 | 17 | (24 | ) | — | |||||||||||
Balance at the end | 1,469 | 25 | 1,707 | 96 | ||||||||||||
(*) | Profit or loss that are attributable to gains or losses relating to those assets and liabilities held at the end of the reporting period |
From: | Level I | Level 2 | Level 3 | |||||||||||||||||||||||||
Transfer Between Levels | To: | Level 2 | Level 3 | Level 1 | Level 3 | Level 1 | Level2 | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Financial assets held for trading | 107 | — | 4 | 118 | — | 55 | ||||||||||||||||||||||
Available-for-sale financial assets | 263 | 4 | 3 | 209 | — | 53 | ||||||||||||||||||||||
Hedging derivatives | — | — | — | — | — | — | ||||||||||||||||||||||
LIABILITIES — | — | — | — | — | — | |||||||||||||||||||||||
Potential Impact on Consolidated | ||||||||||||||||
Income Statement | Potential Impact on Total Equity | |||||||||||||||
Most Favorable | Least Favorable | Most Favorable | Least Favorable | |||||||||||||
Financial Assets Level 3 Sensitivity Analysis | Hypotheses | Hypotheses | Hypotheses | Hypotheses | ||||||||||||
Millions of euros | ||||||||||||||||
ASSETS — | ||||||||||||||||
Financial assets held for trading | 43 | (90 | ) | — | — | |||||||||||
Available-for-sale financial assets | — | — | 13 | (4 | ) | |||||||||||
LIABILITIES — | ||||||||||||||||
Financial liabilities held for trading | 3 | (3 | ) | — | — | |||||||||||
Total | 46 | (93 | ) | 13 | (4 | ) | ||||||||||
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Sales of Financial Instruments at Cost | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Amount of Sale | 51 | 73 | 219 | |||||||||
Carrying Amount at Sale Date | 36 | 64 | 147 | |||||||||
Gains/Losses | 15 | 9 | 72 | |||||||||
9. | CASH AND BALANCES WITH CENTRAL BANKS |
Cash and Balances with Central Banks | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Cash | 4,284 | 4,218 | 3,915 | |||||||||
Balances at the Central Banks | 15,683 | 12,113 | 10,727 | |||||||||
Accrued interests | 14 | 13 | 17 | |||||||||
Total | 19,981 | 16,344 | 14,659 | |||||||||
Deposits from Central Banks | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Deposits from Central Banks | 10,987 | 21,096 | 16,762 | |||||||||
Accrued interest until expiration | 23 | 70 | 82 | |||||||||
Total | 11,010 | 21,166 | 16,844 | |||||||||
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10. | FINANCIAL ASSETS AND LIABILITES HELD FOR TRADING |
10.1. | BREAKDOWN OF THE BALANCE |
Financial Assets and Liabilities Held-for-Trading | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
ASSETS — | ||||||||||||
Debt securities | 24,358 | 34,672 | 26,556 | |||||||||
Equity instruments | 5,260 | 5,783 | 5,797 | |||||||||
Trading derivatives | 33,665 | 29,278 | 40,946 | |||||||||
Total | 63,283 | 69,733 | 73,299 | |||||||||
LIABILITIES — | ||||||||||||
Trading derivatives | 33,166 | 29,000 | 40,309 | |||||||||
Short positions | 4,046 | 3,830 | 2,700 | |||||||||
Total | 37,212 | 32,830 | 43,009 | |||||||||
10.2. | DEBT SECURITIES |
Debt Securities Held-for-Trading Breakdown by type of instrument | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Issued by Central Banks | 699 | 326 | 378 | |||||||||
Spanish government bonds | 7,954 | 13,463 | 6,453 | |||||||||
Foreign government bonds | 11,744 | 17,500 | 13,947 | |||||||||
Issued by Spanish financial institutions | 722 | 431 | 578 | |||||||||
Issued by foreign financial institutions | 1,552 | 954 | 2,247 | |||||||||
Other debt securities | 1,687 | 1,998 | 2,953 | |||||||||
Total | 24,358 | 34,672 | 26,556 | |||||||||
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Equity Instruments Held-for-Trading Breakdown by Issuer | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Shares of Spanish companies | ||||||||||||
Credit institutions | 304 | 666 | 444 | |||||||||
Other sectors | 2,738 | 2,602 | 1,888 | |||||||||
Subtotal | 3,042 | 3,268 | 2,332 | |||||||||
Shares of foreign companies | ||||||||||||
Credit institutions | 167 | 156 | 205 | |||||||||
Other sectors | 2,051 | 2,359 | 3,260 | |||||||||
Subtotal | 2,218 | 2,515 | 3,465 | |||||||||
Total | 5,260 | 5,783 | 5,797 | |||||||||
10.4. | TRADING DERIVATIVES |
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Equity | Precious | |||||||||||||||||||||||||||||||
Currency | Interest | Price | Metals | Commodities | Credit | Other | ||||||||||||||||||||||||||
2010 | Risk | Rate Risk | Risk | Risk | Risk | Risk | Risks | Total | ||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||
Organized markets | ||||||||||||||||||||||||||||||||
Financial futures | — | 2 | 6 | — | — | — | — | 8 | ||||||||||||||||||||||||
Options | (3 | ) | — | (348 | ) | (11 | ) | (7 | ) | — | — | (369 | ) | |||||||||||||||||||
Other products | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | (3 | ) | 2 | (342 | ) | (11 | ) | (7 | ) | — | — | (361 | ) | |||||||||||||||||||
OTC markets | ||||||||||||||||||||||||||||||||
Credit institutions | ||||||||||||||||||||||||||||||||
Forward transactions | (96 | ) | — | — | — | — | — | — | (96 | ) | ||||||||||||||||||||||
Future rate agreements (FRAs) | — | 15 | — | — | — | — | — | 15 | ||||||||||||||||||||||||
Swaps | (541 | ) | (1,534 | ) | (4 | ) | 2 | 28 | — | — | (2,049 | ) | ||||||||||||||||||||
Options | (97 | ) | (786 | ) | 45 | — | — | — | 1 | (837 | ) | |||||||||||||||||||||
Other products | (1 | ) | 11 | — | — | — | (175 | ) | — | (165 | ) | |||||||||||||||||||||
Subtotal | (735 | ) | (2,294 | ) | 41 | 2 | 28 | (175 | ) | 1 | (3,132 | ) | ||||||||||||||||||||
Other financial institutions Forward transactions | 54 | — | — | — | — | — | — | 54 | ||||||||||||||||||||||||
Future rate agreements (FRAs) | — | 4 | — | — | — | — | — | 4 | ||||||||||||||||||||||||
Swaps | — | 1,174 | 31 | — | (5 | ) | — | — | 1,200 | |||||||||||||||||||||||
Options | (12 | ) | (56 | ) | (144 | ) | — | — | — | — | (212 | ) | ||||||||||||||||||||
Other products | — | — | — | — | — | 319 | — | 319 | ||||||||||||||||||||||||
Subtotal | 42 | 1,122 | (113 | ) | — | (5 | ) | 319 | — | 1,365 | ||||||||||||||||||||||
Other sectors | ||||||||||||||||||||||||||||||||
Forward transactions | 385 | — | — | — | — | — | — | 385 | ||||||||||||||||||||||||
Future rate agreements (FRAs) | — | 22 | — | — | — | — | — | 22 | ||||||||||||||||||||||||
Swaps | 18 | 1,628 | 145 | — | (15 | ) | — | — | 1,776 | |||||||||||||||||||||||
Options | (41 | ) | 81 | 395 | — | — | — | — | 435 | |||||||||||||||||||||||
Other products | — | 14 | — | — | — | (5 | ) | — | 9 | |||||||||||||||||||||||
Subtotal | 362 | 1,745 | 540 | — | (15 | ) | (5 | ) | — | 2,627 | ||||||||||||||||||||||
Subtotal | (331 | ) | 573 | 468 | 2 | 8 | 139 | 1 | 860 | |||||||||||||||||||||||
Total | (334 | ) | 575 | 126 | (9 | ) | 1 | 139 | 1 | 499 | ||||||||||||||||||||||
of which: Asset Trading Derivatives | 6,007 | 22,978 | 3,343 | 14 | 186 | 1,125 | 12 | 33,665 | ||||||||||||||||||||||||
of which: Liability Trading Derivatives | (6,341 | ) | (22,404 | ) | (3,216 | ) | (23 | ) | (185 | ) | (986 | ) | (11 | ) | (33,166 | ) | ||||||||||||||||
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Equity | Precious | |||||||||||||||||||||||||||||||
Currency | Interest | Price | Metals | Commodities | Credit | Other | ||||||||||||||||||||||||||
2009 | Risk | Rate Risk | Risk | Risk | Risk | Risk | Risks | Total | ||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||
Organized markets | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Financial futures | — | 2 | 7 | — | — | — | — | 9 | ||||||||||||||||||||||||
Options | — | — | (143 | ) | — | — | — | — | (143 | ) | ||||||||||||||||||||||
Other products | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | — | 2 | (136 | ) | — | — | — | — | (134 | ) | ||||||||||||||||||||||
OTC markets | ||||||||||||||||||||||||||||||||
Credit institutions | ||||||||||||||||||||||||||||||||
Forward transactions | 251 | — | — | — | — | — | — | 251 | ||||||||||||||||||||||||
Future rate agreements (FRAs) | — | 30 | — | — | — | — | — | 30 | ||||||||||||||||||||||||
Swaps | (568 | ) | (1,559 | ) | (126 | ) | 2 | 18 | — | — | (2,233 | ) | ||||||||||||||||||||
Options | (3 | ) | (243 | ) | (536 | ) | — | (6 | ) | — | 3 | (785 | ) | |||||||||||||||||||
Other products | — | — | — | — | — | (66 | ) | — | (66 | ) | ||||||||||||||||||||||
Subtotal | (320 | ) | (1,772 | ) | (662 | ) | 2 | 12 | (66 | ) | 3 | (2,803 | ) | |||||||||||||||||||
Other financial institutions | ||||||||||||||||||||||||||||||||
Forward transactions | 28 | — | — | — | — | — | — | 28 | ||||||||||||||||||||||||
Future rate agreements (FRAs) | — | (2 | ) | — | — | — | — | — | (2 | ) | ||||||||||||||||||||||
Swaps | — | 932 | 29 | — | 1 | — | — | 962 | ||||||||||||||||||||||||
Options | (1 | ) | (55 | ) | (341 | ) | — | — | — | — | (397 | ) | ||||||||||||||||||||
Other products | — | — | — | — | — | 345 | — | 345 | ||||||||||||||||||||||||
Subtotal | 27 | 875 | (312 | ) | — | 1 | 345 | — | 936 | |||||||||||||||||||||||
Other sectors | ||||||||||||||||||||||||||||||||
Forward transactions | 351 | — | — | — | — | — | — | 351 | ||||||||||||||||||||||||
Future rate agreements (FRAs) | — | (1 | ) | — | — | — | — | — | (1 | ) | ||||||||||||||||||||||
Swaps | 7 | 1,383 | 44 | — | (9 | ) | — | — | 1,425 | |||||||||||||||||||||||
Options | 45 | 155 | 336 | — | 3 | — | 1 | 540 | ||||||||||||||||||||||||
Other products | — | 18 | (3 | ) | — | — | (51 | ) | — | (36 | ) | |||||||||||||||||||||
Subtotal | 403 | 1,555 | 377 | — | (6 | ) | (51 | ) | 1 | 2,279 | ||||||||||||||||||||||
Subtotal | 110 | 658 | (597 | ) | 2 | 7 | 228 | 4 | 412 | |||||||||||||||||||||||
Total | 110 | 660 | (733 | ) | 2 | 7 | 228 | 4 | 278 | |||||||||||||||||||||||
of which: Asset Trading Derivatives | 5,953 | 19,398 | 2,836 | 2 | 59 | 1,018 | 12 | 29,278 | ||||||||||||||||||||||||
of which: Liability Trading Derivatives | (5,843 | ) | (18,738 | ) | (3,569 | ) | — | (52 | ) | (790 | ) | (8 | ) | (29,000 | ) | |||||||||||||||||
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Equity | Precious | |||||||||||||||||||||||||||||||
Currency | Interest | Price | Metals | Commodities | Credit | Other | ||||||||||||||||||||||||||
2008 | Risk | Rate Risk | Risk | Risk | Risk | Risk | Risks | Total | ||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||
Organized markets | ||||||||||||||||||||||||||||||||
Financial futures | — | — | 4 | — | — | — | — | 4 | ||||||||||||||||||||||||
Options | — | 5 | (232 | ) | — | — | 2 | — | (225 | ) | ||||||||||||||||||||||
Other products | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | — | 5 | (228 | ) | — | — | 2 | — | (221 | ) | ||||||||||||||||||||||
OTC markets | ||||||||||||||||||||||||||||||||
Credit institutions | ||||||||||||||||||||||||||||||||
Forward transactions | (978 | ) | — | — | — | — | — | — | (978 | ) | ||||||||||||||||||||||
Future rate agreements (FRAs) | — | 68 | — | — | — | — | — | 68 | ||||||||||||||||||||||||
Swaps | (672 | ) | (1,580 | ) | 154 | — | 15 | (196 | ) | — | (2,279 | ) | ||||||||||||||||||||
Options | (26 | ) | (140 | ) | (319 | ) | — | — | — | — | (485 | ) | ||||||||||||||||||||
Other products | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | (1,676 | ) | (1,652 | ) | (165 | ) | — | 15 | (196 | ) | — | (3,674 | ) | |||||||||||||||||||
Other financial institutions | ||||||||||||||||||||||||||||||||
Forward transactions | (110 | ) | — | — | — | — | — | — | (110 | ) | ||||||||||||||||||||||
Future rate agreements (FRAs) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Swaps | — | 1,278 | 24 | — | 12 | 580 | — | 1,894 | ||||||||||||||||||||||||
Options | (2 | ) | 57 | (175 | ) | — | 15 | — | — | (105 | ) | |||||||||||||||||||||
Other products | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | (112 | ) | 1,335 | (151 | ) | — | 27 | 580 | — | 1,679 | ||||||||||||||||||||||
Other sectors | ||||||||||||||||||||||||||||||||
Forward transactions | 378 | — | — | — | — | — | — | 378 | ||||||||||||||||||||||||
Future rate agreements (FRAs) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Swaps | 10 | 1,482 | 49 | — | 63 | (90 | ) | — | 1,514 | |||||||||||||||||||||||
Options | (91 | ) | 119 | 962 | — | (12 | ) | — | — | 978 | ||||||||||||||||||||||
Other products | — | 4 | (21 | ) | — | — | — | — | (17 | ) | ||||||||||||||||||||||
Subtotal | 297 | 1,605 | 990 | — | 51 | (90 | ) | — | 2,853 | |||||||||||||||||||||||
Subtotal | (1,491 | ) | 1,288 | 674 | — | 93 | 294 | — | 858 | |||||||||||||||||||||||
Total | (1,491 | ) | 1,293 | 446 | — | 93 | 296 | — | 637 | |||||||||||||||||||||||
of which: Asset Trading Derivatives | 10,940 | 22,574 | 5,082 | — | 174 | 2,174 | 2 | 40,946 | ||||||||||||||||||||||||
of which: Liability Trading Derivatives | (12,431 | ) | (21,281 | ) | (4,636 | ) | — | (81 | ) | (1,878 | ) | (2 | ) | (40,309 | ) | |||||||||||||||||
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11. | OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS |
Other Financial Assets Designated at Fair Value through Profit or | ||||||||||||
Loss. Breakdown by Type of Instruments | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Assets — | ||||||||||||
Debt securities | 688 | 639 | 516 | |||||||||
Unit-linked products | 103 | 95 | 516 | |||||||||
Other securities | 585 | 544 | — | |||||||||
Equity instruments | 2,086 | 1,698 | 1,238 | |||||||||
Unit-linked products | 1,467 | 1,242 | 921 | |||||||||
Other securities | 619 | 456 | 317 | |||||||||
Total | 2,774 | 2,337 | 1,754 | |||||||||
Liabilities — | ||||||||||||
Other financial liabilities | 1,607 | 1,367 | 1,033 | |||||||||
Unit-linked products | 1,607 | 1,367 | 1,033 | |||||||||
Total | 1,607 | 1,367 | 1,033 | |||||||||
12. | AVAILABLE FOR SALE FINANCIAL ASSETS |
12.1. | BREAKDOWN OF THE BALANCE |
Available-for-Sale Financial Assets | 2010 | 2009 | 2008 | |||||||||||||
Millions of euros | ||||||||||||||||
Debt securities | 50,875 | 57,071 | 39,831 | |||||||||||||
Equity instruments | 5,581 | 6,450 | 7,949 | |||||||||||||
Total | 56,456 | 63,521 | 47,780 | |||||||||||||
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2010 | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||
Millions of euros | ||||||||||||
Domestic Debt Securities | ||||||||||||
Spanish Government and other government agency debt securities | 58 | (1,264 | ) | 15,337 | ||||||||
Other debt securities | 49 | (206 | ) | 5,229 | ||||||||
Issue by Central Banks | — | — | — | |||||||||
Issue by credit institutions | 24 | (156 | ) | 4,090 | ||||||||
Issue by other issuers | 25 | (50 | ) | 1,139 | ||||||||
Subtotal | 107 | (1,470 | ) | 20,566 | ||||||||
Foreign Debt Securities | ||||||||||||
Mexico | 470 | (17 | ) | 10,106 | ||||||||
Mexican Government and other government agency debt securities | 441 | (14 | ) | 9,417 | ||||||||
Other debt securities | 29 | (3 | ) | 689 | ||||||||
Issue by Central Banks | — | — | — | |||||||||
Issue by credit institutions | 28 | (2 | ) | 579 | ||||||||
Issue by other issuers | 1 | (1 | ) | 110 | ||||||||
The United States | 216 | (234 | ) | 6,832 | ||||||||
Government securities | 13 | (9 | ) | 771 | ||||||||
US Treasury and other US Government agencies | 6 | (8 | ) | 578 | ||||||||
States and political subdivisions | 7 | (1 | ) | 193 | ||||||||
Other debt securities | 203 | (225 | ) | 6,061 | ||||||||
Issue by Central Banks | — | — | — | |||||||||
Issue by credit institutions | 83 | (191 | ) | 2,873 | ||||||||
Issue by other issuers | 120 | (34 | ) | 3,188 | ||||||||
Other countries | 394 | (629 | ) | 12,930 | ||||||||
Other foreign governments and other government agency debt securities | 169 | (371 | ) | 6,100 | ||||||||
Other debt securities | 225 | (258 | ) | 6,830 | ||||||||
Issue by Central Banks | 1 | — | 945 | |||||||||
Issue by credit institutions | 177 | (188 | ) | 4,420 | ||||||||
Issue by other issuers | 47 | (70 | ) | 1,465 | ||||||||
Subtotal | 1,080 | (880 | ) | 30,309 | ||||||||
Total | 1,187 | (2,350 | ) | 50,875 | ||||||||
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Unrealized | Unrealized | Fair | ||||||||||
2009 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Domestic Debt Securities | ||||||||||||
Spanish Government and other government agency debt securities | 309 | (70 | ) | 18,551 | ||||||||
Other debt securities | 178 | (125 | ) | 6,318 | ||||||||
Subtotal | 487 | (195 | ) | 24,869 | ||||||||
Foreign Debt Securities | ||||||||||||
The United States | 174 | (173 | ) | 6,805 | ||||||||
Government securities | 11 | (2 | ) | 637 | ||||||||
US Treasury and other US Government agencies | 4 | (2 | ) | 416 | ||||||||
States and political subdivisions | 7 | — | 221 | |||||||||
Other debt securities | 163 | (171 | ) | 6,168 | ||||||||
Other countries | 893 | (560 | ) | 25,397 | ||||||||
Other foreign governments and other government agency debt securities | 697 | (392 | ) | 17,363 | ||||||||
Other debt securities | 196 | (168 | ) | 8,034 | ||||||||
Subtotal | 1,067 | (733 | ) | 32,202 | ||||||||
Total | 1,554 | (928 | ) | 57,071 | ||||||||
Unrealized | Unrealized | Fair | ||||||||||
2008 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Domestic Debt Securities | ||||||||||||
Spanish Government and other government agency debt securities | 138 | — | 6,371 | |||||||||
Other debt securities | 91 | (62 | ) | 5,539 | ||||||||
Subtotal | 229 | (62 | ) | 11,910 | ||||||||
Foreign Debt Securities | ||||||||||||
The United States | 155 | (286 | ) | 10,442 | ||||||||
Government securities | 15 | (1 | ) | 840 | ||||||||
US Treasury and other US Government agencies | — | — | 444 | |||||||||
States and political subdivisions | 15 | (1 | ) | 396 | ||||||||
Other debt securities | 140 | (285 | ) | 9,602 | ||||||||
Other countries | 431 | (488 | ) | 17,478 | ||||||||
Other foreign governments and other government agency debt securities | 261 | (232 | ) | 9,653 | ||||||||
Other debt securities | 170 | (256 | ) | 7,825 | ||||||||
Subtotal | 586 | (774 | ) | 27,920 | ||||||||
Total | 815 | (836 | ) | 39,830 | ||||||||
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Available-for-Sale Financial Assets Debt Secutities by Rating | Fair Value | % | ||||||
Millions of euros | ||||||||
AAA | 11,638 | 22.9 | % | |||||
AA+ | 12,210 | 24.0 | % | |||||
AA | 5,022 | 9.9 | % | |||||
AA- | 2,523 | 5.0 | % | |||||
A+ | 1,651 | 3.2 | % | |||||
A | 8,661 | 17.0 | % | |||||
A− | 574 | 1.1 | % | |||||
With rating BBB+ or below | 3,761 | 7.4 | % | |||||
Without rating | 4,835 | 9.5 | % | |||||
Total | 50,875 | 100.0 | % | |||||
Unrealized | Unrealized | Fair | ||||||||||
2010 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Equity instruments listed | ||||||||||||
Listed Spanish company shares | 1,212 | (7 | ) | 4,583 | ||||||||
Credit institutions | — | — | 3 | |||||||||
Other entities | 1,212 | (7 | ) | 4,580 | ||||||||
Listed foreign company shares | 8 | (25 | ) | 253 | ||||||||
United States | 1 | — | 13 | |||||||||
Other countries | 7 | (25 | ) | 240 | ||||||||
Subtotal | 1,220 | (32 | ) | 4,836 | ||||||||
Unlisted equity instruments | ||||||||||||
Unlisted Spanish company shares | — | — | 25 | |||||||||
Credit institutions | — | — | 1 | |||||||||
Other entities | — | — | 24 | |||||||||
Unlisted foreign companies shares | 63 | — | 720 | |||||||||
United States | 55 | — | 649 | |||||||||
Other countries | 8 | — | 71 | |||||||||
Subtotal | 63 | — | 745 | |||||||||
Total | 1,283 | (32 | ) | 5,581 | ||||||||
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Unrealized | Unrealized | Fair | ||||||||||
2009 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Equity instruments listed | ||||||||||||
Listed Spanish company shares | 1,738 | (12 | ) | 5,383 | ||||||||
Credit institutions | — | — | — | |||||||||
Other entities | 1,738 | (12 | ) | 5,383 | ||||||||
Listed foreign company shares | 12 | (28 | ) | 250 | ||||||||
United States | — | (8 | ) | 8 | ||||||||
Other countries | 12 | (20 | ) | 242 | ||||||||
Subtotal | 1,750 | (40 | ) | 5,633 | ||||||||
Unlisted equity instruments | ||||||||||||
Unlisted Spanish company shares | — | — | 26 | |||||||||
Credit institutions | — | — | 1 | |||||||||
Other entities | — | — | 25 | |||||||||
Unlisted foreign companies shares | 109 | — | 791 | |||||||||
United States | 104 | — | 729 | |||||||||
Other countries | 5 | — | 62 | |||||||||
Subtotal | 109 | — | 817 | |||||||||
Total | 1,859 | (40 | ) | 6,450 | ||||||||
Unrealized | Unrealized | Fair | ||||||||||
2008 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Equity instruments listed | ||||||||||||
Listed Spanish company shares | 1,189 | (95 | ) | 4,639 | ||||||||
Credit institutions | — | (9 | ) | 22 | ||||||||
Other entities | 1,189 | (86 | ) | 4,617 | ||||||||
Listed foreign company shares | 1 | (141 | ) | 2,443 | ||||||||
United States | — | (11 | ) | 28 | ||||||||
Other countries | 1 | (130 | ) | 2,416 | ||||||||
Subtotal | 1,190 | (236 | ) | 7,082 | ||||||||
Unlisted equity instruments | ||||||||||||
Unlisted Spanish company shares | — | (1 | ) | 36 | ||||||||
Credit institutions | — | — | 1 | |||||||||
Other entities | — | (1 | ) | 35 | ||||||||
Unlisted foreign companies shares | 7 | — | 831 | |||||||||
United States | — | — | 626 | |||||||||
Other countries | 7 | — | 205 | |||||||||
Subtotal | 7 | (1 | ) | 867 | ||||||||
Total | 1,197 | (237 | ) | 7,949 | ||||||||
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12.4. | GAINS/LOSSES |
Changes in Valuation Adjustments — Available-for-Sale Financial Assets | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Balance at the beginning | 1,951 | 931 | 3,546 | |||||||||
Valuation gains and losses | (1,952 | ) | 1,520 | (2,065 | ) | |||||||
Income tax | 540 | (483 | ) | 1,172 | ||||||||
Amounts transferred to income | (206 | ) | (18 | ) | (1,722 | ) | ||||||
Balance at the end | 333 | 1,951 | 931 | |||||||||
Of which: | ||||||||||||
Debt securities | (746 | ) | 456 | (116 | ) | |||||||
Equity instruments | 1,079 | 1,495 | 1,047 |
13. | LOANS AND RECEIVABLES |
13.1. | BREAKDOWN OF THE BALANCE |
Loans and Receivables | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Loans and advances to credit institutions | 23,637 | 22,239 | 33,856 | |||||||||
Loans and advances to customers | 338,857 | 323,442 | 335,260 | |||||||||
Debt securities | 2,213 | 436 | 378 | |||||||||
Total | 364,707 | 346,117 | 369,494 | |||||||||
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13.2. | LOANS AND ADVANCES TO CREDIT INSTITUTIONS |
Loans and Advances to Credit Institutions | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Reciprocal accounts | 168 | 226 | 390 | |||||||||
Deposits with agreed maturity | 7,307 | 8,301 | 8,005 | |||||||||
Demand deposits | 2,008 | 2,091 | 6,433 | |||||||||
Other accounts | 6,299 | 6,125 | 9,250 | |||||||||
Reverse repurchase agreements | 7,822 | 5,457 | 9,601 | |||||||||
Total gross | 23,604 | 22,200 | 33,679 | |||||||||
Valuation adjustments | 33 | 39 | 177 | |||||||||
Impairment losses | (67 | ) | (68 | ) | (74 | ) | ||||||
Accrued interests and fees | 101 | 110 | 223 | |||||||||
Hedging derivatives and others | (1 | ) | (3 | ) | 28 | |||||||
Total | 23,637 | 22,239 | 33,856 | |||||||||
13.3. | LOANS AND ADVANCES TO CUSTOMERS |
Loans and Advances to Customers | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Financial paper | 1,982 | 602 | 587 | |||||||||
Commercial credit | 21,229 | 24,031 | 29,215 | |||||||||
Secured loans | 150,782 | 148,874 | 145,522 | |||||||||
Credit accounts | 23,705 | 19,683 | 21,593 | |||||||||
Other loans | 101,999 | 98,238 | 111,597 | |||||||||
Reverse repurchase agreements | 4,764 | 987 | 1,658 | |||||||||
Receivable on demand and other | 19,246 | 15,253 | 13,372 | |||||||||
Finance leases | 8,141 | 8,222 | 9,341 | |||||||||
Impaired assets | 15,361 | 15,197 | 8,437 | |||||||||
Total gross | 347,210 | 331,087 | 341,322 | |||||||||
Valuation adjustments | (8,353 | ) | (7,645 | ) | (6,062 | ) | ||||||
Impairment losses | (9,396 | ) | (8,720 | ) | (7,431 | ) | ||||||
Accrued interests and fees | 195 | 320 | 719 | |||||||||
Hedging derivatives and others | 848 | 755 | 650 | |||||||||
Total net | 338,857 | 323,442 | 335,260 | |||||||||
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Financial Lease Arrangements | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Movable property | 4,748 | 4,963 | 6,158 | |||||||||
Real Estate | 3,393 | 3,259 | 3,271 | |||||||||
Fixed rate | 42% | 38% | 33% | |||||||||
Floating rate | 58% | 62% | 67% |
Securitized Loans | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Securitized mortgage assets | 31,884 | 33,786 | 34,032 | |||||||||
Other securitized assets | 10,563 | 10,597 | 10,341 | |||||||||
Commercial and industrial loans | 6,263 | 4,356 | 2,634 | |||||||||
Finance leases | 771 | 1,380 | 2,238 | |||||||||
Loans to individuals | 3,403 | 4,536 | 5,124 | |||||||||
Rest | 126 | 325 | 345 | |||||||||
Total | 42,447 | 44,383 | 44,373 | |||||||||
Of which: | ||||||||||||
Liabilities associated to assets retained on the balance sheet(*) | 8,846 | 9,012 | 14,948 |
(*) | These liabilities are recognized under “Financial liabilities at amortized cost — Debt securities” in the accompanying consolidated balance sheets (Note 23). |
Derecognized Securitized Loans | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Securitized mortgage assets | 24 | 116 | 132 | |||||||||
Other securitized assets | 176 | 276 | 413 | |||||||||
Total | 200 | 392 | 545 | |||||||||
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14. | HELD-TO-MATURITY INVESTMENTS |
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
2010 | Cost | Gains | Losses | Value | ||||||||||||
Millions of euros | ||||||||||||||||
Domestic Debt Securities | ||||||||||||||||
Spanish Government and other government agency debt securities | 6,611 | 2 | (671 | ) | 5,942 | |||||||||||
Other domestic debt securities | 892 | — | (63 | ) | 829 | |||||||||||
Issue by credit institutions | 290 | — | (13 | ) | 277 | |||||||||||
Issue by other issuers | 602 | — | (50 | ) | 552 | |||||||||||
Subtotal | 7,503 | 2 | (734 | ) | 6,771 | |||||||||||
Foreign Debt Securities | ||||||||||||||||
Other foreign governments and other government agency debt securities not issued by the governments of the countries where they operate | 2,181 | 10 | (20 | ) | 2,171 | |||||||||||
Issue by credit institutions | 262 | 6 | (21 | ) | 247 | |||||||||||
Subtotal | 2,443 | 16 | (41 | ) | 2,418 | |||||||||||
Total | 9,946 | 18 | (775 | ) | 9,189 | |||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
2009 | Cost | Gains | Losses | Value | ||||||||||||
Millions of euros | ||||||||||||||||
Domestic Debt Securities | ||||||||||||||||
Spanish Government and other government agency debt securities | 1,674 | 21 | (13 | ) | 1,682 | |||||||||||
Other domestic debt securities | 952 | 8 | (18 | ) | 942 | |||||||||||
Subtotal | 2,626 | 29 | (31 | ) | 2,624 | |||||||||||
Foreign Debt Securities | ||||||||||||||||
Government and other government agency debt securities | 2,399 | 64 | (7 | ) | 2,456 | |||||||||||
Other debt securities | 412 | 7 | (6 | ) | 413 | |||||||||||
Subtotal | 2,811 | 71 | (13 | ) | 2,869 | |||||||||||
Total | 5,437 | 100 | (44 | ) | 5,493 | |||||||||||
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Amortized | Unrealized | Unrealized | Fair | |||||||||||||
2008 | Cost | Gains | Losses | Value | ||||||||||||
Millions of euros | ||||||||||||||||
Domestic Debt Securities | ||||||||||||||||
Spanish Government and other government agency debt securities | 1,412 | 7 | (7 | ) | 1,412 | |||||||||||
Other domestic debt securities | 980 | — | (53 | ) | 927 | |||||||||||
Subtotal | 2,392 | 7 | (60 | ) | 2,339 | |||||||||||
Foreign Debt Securities | ||||||||||||||||
Government and other government agency debt securities | 2,432 | 22 | (17 | ) | 2,437 | |||||||||||
Other debt securities | 458 | 3 | (16 | ) | 445 | |||||||||||
Subtotal | 2,890 | 25 | (33 | ) | 2,882 | |||||||||||
Total | 5,282 | 32 | (93 | ) | 5,221 | |||||||||||
Held to Maturuty Investments | ||||||||
Debt Secutities by Rating | Carrying Amount | % | ||||||
Millions of euros | ||||||||
AAA | 1,908 | 19.2 | % | |||||
AA+ | 6,703 | 67.4 | % | |||||
AA− | 1,222 | 12.3 | % | |||||
With rating A+ or below | 113 | 1.1 | % | |||||
Total | 9,946 | 100.0 | % | |||||
Held-to-Maturity Investments Changes on the Period | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Balance at the beginning | 5,438 | 5,285 | 5,589 | |||||||||
Acquisitions | 4,969 | 426 | — | |||||||||
Redemptions and others | (460 | ) | (273 | ) | (304 | ) | ||||||
Balance at the end | 9,947 | 5,438 | 5,285 | |||||||||
Impairment | (1 | ) | (1 | ) | (3 | ) | ||||||
Total | 9,946 | 5,437 | 5,282 | |||||||||
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15. | HEDGING DERIVATIVES (RECEIVABLE AND PAYABLE) AND FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES |
Hedging Derivatives and Fair Value Changes of the | ||||||||||||
Hedged Items in Portfolio Hedges of Interest Rate Risk | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
ASSETS — | ||||||||||||
Fair value changes of the hedged items in portfolio hedges of interest rate risk | 40 | — | — | |||||||||
Hedging derivatives | 3,563 | 3,595 | 3,833 | |||||||||
LIABILITIES — | ||||||||||||
Fair value changes of the hedged items in portfolio hedges of interest rate risk | (2 | ) | — | — | ||||||||
Hedging derivatives | 1,664 | 1,308 | 1,226 |
• | Fair value hedge: |
- | Available-for-sale fixed-interest debt securities: this risk is hedged using interest-rate derivatives (fixed-variable swaps). | |
- | Long term fixed-interest debt issued by Group: this risk is hedged using interest-rate derivatives (fixed-variable swaps). | |
- | Available-for-sale equity securities: this risk is hedged using equity swaps. | |
- | Fixed-interest loans: this risk is hedged using interest-rate derivatives (fixed-variable swaps). | |
- | Fixed-interest deposit portfolio hedges: this risk is hedged using fixed-variable swaps and derivatives for interest rate. The valuation of the deposit hedges corresponding to interest-rate risk is recognized under the heading “Changes in the fair value of the hedged items in the portfolio hedges of interest-rate risk”. |
• | Cash-flow hedge: Most of the hedged items are floating interest-rate loans: this risk is hedged using foreign-exchange and interest-rate swaps. | |
• | Net foreign-currency investment hedge: The risks hedged are foreign-currency investments in the Group’s subsidiaries abroad. This risk is hedged mainly with foreign-exchange options and forward currency purchase. |
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Currency | Interest | Equity | Other | |||||||||||||||||
2010 | Risk | Rate Risk | Price Risk | Risks | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
OTC markets | ||||||||||||||||||||
Credit institutions | ||||||||||||||||||||
Fair value hedge | — | 1,645 | 7 | 3 | 1,655 | |||||||||||||||
Of wich: Macro hedge | — | (282 | ) | — | — | (282 | ) | |||||||||||||
Cash flow hedge | (4 | ) | 160 | — | — | 156 | ||||||||||||||
Net investment in a foreign operation hedge | 3 | (6 | ) | — | — | (3 | ) | |||||||||||||
Subtotal | (1 | ) | 1,799 | 7 | 3 | 1,808 | ||||||||||||||
Other financial Institutions | ||||||||||||||||||||
Fair value hedge | — | 109 | 5 | — | 114 | |||||||||||||||
Of wich: Macro hedge | — | (20 | ) | — | — | (20 | ) | |||||||||||||
Cash flow hedge | — | (1 | ) | — | — | (1 | ) | |||||||||||||
Net investment in a foreign operation hedge | — | — | — | — | — | |||||||||||||||
Subtotal | — | 108 | 5 | — | 113 | |||||||||||||||
Other sectors | ||||||||||||||||||||
Fair value hedge | — | (12 | ) | — | — | (12 | ) | |||||||||||||
Of wich: Macro hedge | — | (2 | ) | — | — | (2 | ) | |||||||||||||
Cash flow hedge | — | (10 | ) | — | — | (10 | ) | |||||||||||||
Net investment in a foreign operation hedge | — | — | — | — | — | |||||||||||||||
Subtotal | — | (22 | ) | — | — | (22 | ) | |||||||||||||
Total | (1 | ) | 1,885 | 12 | 3 | 1,899 | ||||||||||||||
of which: Asset Hedging Derivatives | 14 | 3,486 | 60 | 3 | 3,563 | |||||||||||||||
of which: Liability Hedging Derivatives | (15 | ) | (1,601 | ) | (48 | ) | — | (1,664 | ) | |||||||||||
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Currency | Interest | Equity | Other | |||||||||||||||||
2009 | Risk | Rate Risk | Price Risk | Risks | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
OTC markets | ||||||||||||||||||||
Credit institutions | ||||||||||||||||||||
Fair value hedge | — | 1,985 | (32 | ) | — | 1,953 | ||||||||||||||
Cash flow hedge | 17 | 258 | (4 | ) | (4 | ) | 267 | |||||||||||||
Net investment in a foreign operation hedge | 1 | (27 | ) | — | — | (26 | ) | |||||||||||||
Subtotal | 18 | 2,216 | (36 | ) | (4 | ) | 2,194 | |||||||||||||
Other financial Institutions | ||||||||||||||||||||
Fair value hedge | — | 123 | (21 | ) | — | 102 | ||||||||||||||
Subtotal | — | 123 | (21 | ) | — | 102 | ||||||||||||||
Other sectors | ||||||||||||||||||||
Fair value hedge | — | (9 | ) | — | — | (9 | ) | |||||||||||||
Subtotal | — | (9 | ) | — | — | (9 | ) | |||||||||||||
Total | 18 | 2,330 | (57 | ) | (4 | ) | 2,287 | |||||||||||||
Of which: Asset Hedging Derivatives | 22 | 3,492 | 81 | — | 3,595 | |||||||||||||||
Of which: Liability Hedging Derivatives | (4 | ) | (1,162 | ) | (138 | ) | (4 | ) | (1,308 | ) | ||||||||||
Currency | Interest | Equity | Other | |||||||||||||||||
2008 | Risk | Rate Risk | Price Risk | Risks | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
OTC markets | ||||||||||||||||||||
Credit institutions | ||||||||||||||||||||
Fair value hedge | — | 1,972 | — | — | 1,972 | |||||||||||||||
Cash flow hedge | 106 | 338 | — | — | 444 | |||||||||||||||
Net investment in a foreign operation hedge | 99 | (20 | ) | — | — | 79 | ||||||||||||||
Subtotal | 205 | 2,290 | — | — | 2,495 | |||||||||||||||
Other financial Institutions | ||||||||||||||||||||
Fair value hedge | — | 68 | — | — | 68 | |||||||||||||||
Cash flow hedge | — | 32 | — | — | 32 | |||||||||||||||
Subtotal | — | 100 | — | — | 100 | |||||||||||||||
Other sectors | ||||||||||||||||||||
Fair value hedge | — | 1 | — | — | 1 | |||||||||||||||
Cash flow hedge | 11 | — | — | — | 11 | |||||||||||||||
Subtotal | 11 | 1 | — | — | 12 | |||||||||||||||
Total | 216 | 2,391 | — | — | 2,607 | |||||||||||||||
of which: Asset Hedging Derivatives | 227 | 3,606 | — | — | 3,833 | |||||||||||||||
of which: Liability Hedging Derivatives | (11 | ) | (1,215 | ) | — | — | (1,226 | ) | ||||||||||||
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From 3 | ||||||||||||||||||||
3 Months | Months to | From 1 to | More than | |||||||||||||||||
Cash Flows of Hedging Instruments | or Less | 1 Year | 5 Years | 5 Years | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Receivable cash inflows | 103 | 292 | 1,080 | 2,276 | 3,751 | |||||||||||||||
Payable cash outflows | 103 | 168 | 815 | 2,395 | 3,481 |
16. | NON-CURRENT ASSETS HELD FOR SALE AND LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE |
Non-Current Assets Held-for-Sale | ||||||||||||
Breakdown by type of Asset | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Property, plants and equipment | 252 | 397 | 151 | |||||||||
Buildings for own use | 188 | 313 | 79 | |||||||||
Operating leases | 64 | 84 | 72 | |||||||||
Foreclosures and recoveries | 1,513 | 861 | 391 | |||||||||
Foreclosures | 1,427 | 795 | 364 | |||||||||
Recoveries from financial leases | 86 | 66 | 27 | |||||||||
Accrued amortization(*) | (52 | ) | (41 | ) | (34 | ) | ||||||
Impairment losses | (184 | ) | (167 | ) | (64 | ) | ||||||
Total | 1,529 | 1,050 | 444 | |||||||||
(*) | Until classified as non-current assets held for sale |
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Non-Current Assets Held-for-Sale. | ||||||||||||||||
Changes in the Period | 2010 | 2009 | 2008 | |||||||||||||
Millions of euros | ||||||||||||||||
Balance at the beginning | 1,217 | 506 | 306 | |||||||||||||
Additions | 1,513 | 919 | 515 | |||||||||||||
Retirements | (1,017 | ) | (780 | ) | (374 | ) | ||||||||||
Acquisition of subsidiaries | — | — | — | |||||||||||||
Transfers | 145 | 493 | 57 | |||||||||||||
Exchange difference and other | (172 | ) | 79 | 2 | ||||||||||||
Balance at the end(1) | 1,686 | 1,217 | 506 | |||||||||||||
Impairment — | ||||||||||||||||
Balance at the beginning | 167 | 62 | 66 | |||||||||||||
Additions | 221 | 134 | 38 | |||||||||||||
Retirements | (44 | ) | (7 | ) | (22 | ) | ||||||||||
Transfers | 38 | 77 | 25 | |||||||||||||
Exchange difference and other | (225 | ) | (99 | ) | (45 | ) | ||||||||||
Balance at the end(2) | 157 | 167 | 62 | |||||||||||||
Total(1) — (2) | 1,529 | 1,050 | 444 | |||||||||||||
16.1. | FROM TANGIBLE ASSETS FOR OWN USE |
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17. | INVESTMENTS |
Investments in Entities Accounted for Using the Equity Method | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Associate entities | 4,247 | 2,614 | 894 | |||||||||
Jointly controlled entities | 300 | 308 | 573 | |||||||||
Total | 4,547 | 2,922 | 1,467 | |||||||||
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Associates Entities | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Grupo CITIC | 4,022 | 2,296 | 541 | |||||||||
Occidental Hoteles Management, S.L.(*) | — | 84 | 128 | |||||||||
Tubos Reunidos, S.A.(**) | 51 | 52 | 54 | |||||||||
BBVA Elcano Empresarial II, S.C.R.R.S., S.A. | 37 | 49 | 39 | |||||||||
BBVA Elcano Empresarial, S.C.R.R.S., S.A. | 37 | 49 | 39 | |||||||||
Rest of associate | 100 | 84 | 93 | |||||||||
Total | 4,247 | 2,614 | 894 | |||||||||
(*) | Since November 2010 the company had been accounted for as a jointly controlled entitie. | |
(**) | Company that quoted in Madrid’s stock exchange market. |
Associates Entities. Changes in the Year Breakdown of Goodwill | 2010 | 2009 | 2008 | |||||||||||||
Millions of euros | ||||||||||||||||
Balance at the beginning | 2,614 | 894 | 846 | |||||||||||||
Acquisitions and capital increases(*) | 1,210 | 53 | 655 | |||||||||||||
Disposals | (9 | ) | (2 | ) | (782 | ) | ||||||||||
Transfers and others(**) | 432 | 1,669 | 175 | |||||||||||||
Balance at the end | 4,247 | 2,614 | 894 | |||||||||||||
Of which: | ||||||||||||||||
Goodwill | 1,574 | 844 | 217 | |||||||||||||
CITIC Group | 1,570 | 841 | 214 | |||||||||||||
Rest | 4 | 3 | 3 |
(*) | The change of 2010 corresponds basically to the acquisition of 4.93% of CNCB formalized in April 2010 | |
(**) | Correspond mainly to the reclassification from the heading“Available-for-sale financial assets ‘” of CNCB investmentand in 2009 and in 2010 due to the exchange rate development. |
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Jointly Controlled Entities | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Corporación IBV Participaciones Empresariales S.A. | 71 | 157 | 385 | |||||||||
Occidental Hoteles Management, S.L.(*) | 88 | — | — | |||||||||
Fideicomiso F/403853-5 BBVA Bancomer SoS ZIBAT | 22 | 20 | 20 | |||||||||
I+D Mexico, S.A. | 22 | 15 | 14 | |||||||||
Fideicomiso Hares BBVA Bancomer F/47997-2(**) | — | 15 | 12 | |||||||||
Fideicomiso F/70413 Mirasierra | 14 | 12 | — | |||||||||
Fideicomiso F/402770-2 Alamar | 11 | 10 | — | |||||||||
Fideicomiso F/403112-6 Dos lagos | 11 | 9 | — | |||||||||
Las Pedrazas Golf, S.L. | 10 | 9 | 16 | |||||||||
Altitude Software SGPS, S.A. | 10 | — | — | |||||||||
Rest | 41 | 61 | 111 | |||||||||
Total | 300 | 308 | 558 | |||||||||
Of which | ||||||||||||
Goodwill | 9 | 5 | 8 |
(*) | Since November 2010 the company had been accounted for as a jointly controlled entitie. | |
(**) | Since august 2010 the company had been accounter for as a subsidiary. |
Jointly Controlled Entities. Effect on the Group’s main figures | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Assets | 1,062 | 863 | 910 | |||||||||
Liabilities | 313 | 469 | 139 | |||||||||
Net operating income | 15 | (12 | ) | 17 |
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17.3. | INFORMATION ABOUT ASSOCIATES AND JOINTLY CONTROLLED ENTITIES BY THE EQUITY METHOD |
2010(*) | 2009(*) | 2008(*) | ||||||||||||||||||||||
Jointly | Jointly | Jointly | ||||||||||||||||||||||
Associates and Jointly Controlles Entities | Controlled | Controlled | Controlled | |||||||||||||||||||||
Financial Main figures | Associates | Entities | Associates | Entities | Associates | Entities | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Current Assets | 19,979 | 279 | 10,611 | 347 | 745 | 559 | ||||||||||||||||||
Non-current Assets | 17,911 | 780 | 8,463 | 514 | 4,162 | 349 | ||||||||||||||||||
Current Liabilities | 32,314 | 179 | 10,356 | 108 | 230 | 136 | ||||||||||||||||||
Non-current Liabilities | 5,576 | 879 | 8,719 | 754 | 4,677 | 772 | ||||||||||||||||||
Net sales | 855 | 168 | 605 | 84 | 210 | 102 | ||||||||||||||||||
Operating Income | 450 | 15 | 244 | (12 | ) | 99 | 17 | |||||||||||||||||
Net Income | 339 | 1 | 166 | (14 | ) | 93 | 286 |
(*) | Non audited information |
18. | REINSURANCE ASSETS |
Reinsurance Asset | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Reinsurance assets | 28 | 29 | 29 |
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19. | TANGIBLE ASSETS |
Assets | ||||||||||||||||||||||||||||
For Own Use | Total | Leased | ||||||||||||||||||||||||||
Furniture, | Tangible | Out Under | ||||||||||||||||||||||||||
Land and | Work in | Fixtures and | Asset of | Investment | an Operating | |||||||||||||||||||||||
2010 | Buildings | Progress | Vehicles | Own Use | Properties | Lease | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Cost — | ||||||||||||||||||||||||||||
Balance at the beginning | 2,734 | 435 | 5,599 | 8,768 | 1,803 | 989 | 11,560 | |||||||||||||||||||||
Additions | 194 | 179 | 357 | 730 | 66 | 245 | 1,041 | |||||||||||||||||||||
Retirements | (49 | ) | (45 | ) | (156 | ) | (250 | ) | (8 | ) | (2 | ) | (260 | ) | ||||||||||||||
Acquisition of subsidiaries in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Disposal of entities in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Transfers | 387 | (335 | ) | (81 | ) | (29 | ) | 32 | (221 | ) | (218 | ) | ||||||||||||||||
Exchange difference and other | 140 | (19 | ) | (264 | ) | (144 | ) | (52 | ) | 4 | (192 | ) | ||||||||||||||||
Balance at the end | 3,406 | 215 | 5,455 | 9,075 | 1,841 | 1,015 | 11,931 | |||||||||||||||||||||
Accrued depreciation — | ||||||||||||||||||||||||||||
Balance at the beginning | 750 | — | 3,818 | 4,568 | 53 | 265 | 4,886 | |||||||||||||||||||||
Additions | 86 | — | 362 | 448 | 15 | 7 | 470 | |||||||||||||||||||||
Retirements | (6 | ) | — | (142 | ) | (148 | ) | (1 | ) | (1 | ) | (150 | ) | |||||||||||||||
Acquisition of subsidiaries in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Disposal of entities in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Transfers | 27 | — | (47 | ) | (20 | ) | (1 | ) | (110 | ) | (131 | ) | ||||||||||||||||
Exchange difference and other | 32 | — | (244 | ) | (212 | ) | — | 111 | (101 | ) | ||||||||||||||||||
Balance at the end | 889 | — | 3,747 | 4,636 | 66 | 272 | 4,974 | |||||||||||||||||||||
Impairment — | ||||||||||||||||||||||||||||
Balance at the beginning | 15 | — | 4 | 19 | 116 | 32 | 167 | |||||||||||||||||||||
Additions | 8 | — | 1 | 9 | 83 | — | 92 | |||||||||||||||||||||
Retirements | (2 | ) | — | (5 | ) | (7 | ) | — | (14 | ) | (21 | ) | ||||||||||||||||
Acquisition of subsidiaries in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Exchange difference and other | 10 | — | — | 10 | 7 | 1 | 18 | |||||||||||||||||||||
Balance at the end | 31 | — | — | 31 | 206 | 19 | 256 | |||||||||||||||||||||
Net tangible assets — | ||||||||||||||||||||||||||||
Balance at the beginning | 1,969 | 435 | 1,777 | 4,181 | 1,634 | 692 | 6,507 | |||||||||||||||||||||
Balance at the end | 2,486 | 215 | 1,708 | 4,408 | 1,569 | 724 | 6,701 | |||||||||||||||||||||
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Assets | ||||||||||||||||||||||||||||
For Own Use | Total | Leased | ||||||||||||||||||||||||||
Furniture, | Tangible | Out Under | ||||||||||||||||||||||||||
Land and | Work in | Fixtures and | Asset of | Investment | an Operating | Total | ||||||||||||||||||||||
2009 | Buildings | Progress | Vehicles | Own Use | Properties | Lease | ||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Cost — | ||||||||||||||||||||||||||||
Balance at the beginning | 3,030 | 422 | 4,866 | 8,318 | 1,786 | 996 | 11,100 | |||||||||||||||||||||
Additions | 120 | 102 | 437 | 659 | 74 | 210 | 943 | |||||||||||||||||||||
Retirements | (22 | ) | (73 | ) | (661 | ) | (756 | ) | (35 | ) | (2 | ) | (793 | ) | ||||||||||||||
Acquisition of subsidiaries in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Disposal of entities in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Transfers | (747 | ) | (16 | ) | (23 | ) | (786 | ) | (11 | ) | (212 | ) | (1,009 | ) | ||||||||||||||
Exchange difference and other | 353 | — | 980 | 1,333 | (11 | ) | (3 | ) | 1,319 | |||||||||||||||||||
Balance at the end | 2,734 | 435 | 5,599 | 8,768 | 1,803 | 989 | 11,560 | |||||||||||||||||||||
Accrued depreciation — | ||||||||||||||||||||||||||||
Balance at the beginning | 729 | — | 3,128 | 3,857 | 45 | 259 | 4,161 | |||||||||||||||||||||
Additions | 66 | — | 349 | 415 | 11 | 8 | 434 | |||||||||||||||||||||
Retirements | (15 | ) | — | (511 | ) | (526 | ) | — | (1 | ) | (527 | ) | ||||||||||||||||
Acquisition of subsidiaries in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Disposal of entities in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Transfers | (253 | ) | — | (15 | ) | (268 | ) | (2 | ) | (103 | ) | (373 | ) | |||||||||||||||
Exchange difference and other | 223 | — | 867 | 1,090 | (1 | ) | 102 | 1,191 | ||||||||||||||||||||
Balance at the end | 750 | — | 3,818 | 4,568 | 53 | 265 | 4,886 | |||||||||||||||||||||
Impairment — | ||||||||||||||||||||||||||||
Balance at the beginning | 16 | — | 3 | 19 | 8 | 5 | 32 | |||||||||||||||||||||
Additions | 7 | — | 17 | 24 | 93 | 38 | 155 | |||||||||||||||||||||
Retirements | (2 | ) | — | (17 | ) | (19 | ) | (1 | ) | — | (20 | ) | ||||||||||||||||
Acquisition of subsidiaries in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Exchange difference and other | (6 | ) | — | 1 | (5 | ) | 16 | (11 | ) | — | ||||||||||||||||||
Balance at the end | 15 | — | 4 | 19 | 116 | 32 | 167 | |||||||||||||||||||||
Net tangible assets — | ||||||||||||||||||||||||||||
Balance at the beginning | 2,285 | 422 | 1,735 | 4,442 | 1,734 | 732 | 6,908 | |||||||||||||||||||||
Balance at the end | 1,969 | 435 | 1,777 | 4,181 | 1,634 | 692 | 6,507 | |||||||||||||||||||||
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Assets | ||||||||||||||||||||||||||||
For Own Use | Total | Leased | ||||||||||||||||||||||||||
Furniture, | tangible | Out Under | ||||||||||||||||||||||||||
Land and | Fixtures and | asset of | Investment | an Operating | ||||||||||||||||||||||||
2008 | Buildings | Work in Progress | Vehicles | Own Use | Properties | Lease | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Cost — | ||||||||||||||||||||||||||||
Balance at the beginning | 3,415 | 151 | 5,024 | 8,590 | 96 | 966 | 9,652 | |||||||||||||||||||||
Additions | 156 | 101 | 561 | 818 | 41 | 220 | 1,079 | |||||||||||||||||||||
Retirements | (125 | ) | (55 | ) | (483 | ) | (663 | ) | (3 | ) | (28 | ) | (694 | ) | ||||||||||||||
Acquisition of subsidiaries in the year | — | — | 16 | 16 | 1,661 | — | 1,677 | |||||||||||||||||||||
Disposal of entities in the year | (12 | ) | (2 | ) | (5 | ) | (19 | ) | — | — | (19 | ) | ||||||||||||||||
Transfers | (326 | ) | 263 | (22 | ) | (85 | ) | (8 | ) | (162 | ) | (255 | ) | |||||||||||||||
Exchange difference and other | (78 | ) | (36 | ) | (225 | ) | (339 | ) | (1 | ) | — | (340 | ) | |||||||||||||||
Balance at the end | 3,030 | 422 | 4,866 | 8,318 | 1,786 | 996 | 11,100 | |||||||||||||||||||||
Accrued depreciation — | ||||||||||||||||||||||||||||
Balance at the beginning | 725 | — | 3,402 | 4,127 | 14 | 245 | 4,386 | |||||||||||||||||||||
Additions | 77 | — | 356 | 433 | 1 | 8 | 442 | |||||||||||||||||||||
Retirements | (30 | ) | — | (490 | ) | (520 | ) | (3 | ) | (4 | ) | (527 | ) | |||||||||||||||
Acquisition of subsidiaries in the year | — | — | 4 | 4 | 33 | — | 37 | |||||||||||||||||||||
Disposal of entities in the year | (3 | ) | — | (4 | ) | (7 | ) | — | — | (7 | ) | |||||||||||||||||
Transfers | (11 | ) | — | (4 | ) | (15 | ) | — | — | (15 | ) | |||||||||||||||||
Exchange difference and other | (29 | ) | — | (136 | ) | (165 | ) | — | 10 | (155 | ) | |||||||||||||||||
Balance at the end | 729 | — | 3,128 | 3,857 | 45 | 259 | 4,161 | |||||||||||||||||||||
Impairment — | ||||||||||||||||||||||||||||
Balance at the beginning | 21 | — | 5 | 26 | 1 | 2 | 29 | |||||||||||||||||||||
Additions | 3 | — | — | 3 | 4 | 1 | 8 | |||||||||||||||||||||
Retirements | (1 | ) | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||
Acquisition of subsidiaries in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Exchange difference and other | (7 | ) | — | (2 | ) | (9 | ) | 3 | 2 | (4 | ) | |||||||||||||||||
Balance at the end | 16 | — | 3 | 19 | 8 | 5 | 32 | |||||||||||||||||||||
Net tangible assets — | ||||||||||||||||||||||||||||
Balance at the beginning | 2,669 | 151 | 1,617 | 4,437 | 82 | 719 | 5,238 | |||||||||||||||||||||
Balance at the end | 2,285 | 422 | 1,735 | 4,442 | 1,734 | 732 | 6,908 | |||||||||||||||||||||
• | The reduction in the balance of the heading “Tangible assets — For own use — Land and buildings” in 2009 is mainly the result of the transfer of some properties owned by the Bank in Spain to the heading “Non-current assets held for sale”, as mentioned in Note 16. |
• | The balance under the heading “Investment properties” includes mainly the rented buildings of the real estate fund BBVA Propiedad FII (see Appendix II) which has been fully consolidated since 2008 (see |
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Appendix II) following the Group’s acquisition in 2008 of a 95.65% stake. The activity of this real estate fund is subject to regulations by the Spanish Securities and Exchange Commission (CNMV). |
• | In March 2008, BBVA Bancomer bought two properties in Mexico City, one of them located on Paseo de la Reforma and the other on Parques Polanco, in which it will set up the new BBVA Bancomer Group corporate headquarters. |
Number of branches | ||||||||||||
Bank Branches by Geographical Location | 2010 | 2009 | 2008 | |||||||||
Spain | 3,024 | 3,055 | 3,375 | |||||||||
Americas | 4,193 | 4,267 | 4,267 | |||||||||
Rest of the world | 144 | 144 | 145 | |||||||||
Total | 7,361 | 7,466 | 7,787 | |||||||||
Tangible Assets by Spanish and Foreign | ||||||||||||
Subsidiaries Net Assets Values | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Foreign subsidiaries | 2,741 | 2,473 | 2,276 | |||||||||
BBVA and Spanish subsidiaries | 3,960 | 4,034 | 4,632 | |||||||||
Total | 6,701 | 6,507 | 6,908 | |||||||||
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20. | INTANGIBLE ASSETS |
20.1. | GOODWILL |
Balance at | Exchange | Balance at | ||||||||||||||||||||||
2010 | the Beginning | Additions | Difference | Impairment | Rest | the End | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
The United States | 5,357 | — | 418 | — | (2 | ) | 5,773 | |||||||||||||||||
Mexico | 593 | — | 85 | — | — | 678 | ||||||||||||||||||
Colombia | 205 | — | 31 | — | — | 236 | ||||||||||||||||||
Chile | 65 | — | 11 | — | — | 76 | ||||||||||||||||||
Chile Pensions | 108 | — | 18 | — | — | 126 | ||||||||||||||||||
Spain and Portugal | 68 | — | — | (13 | ) | — | 55 | |||||||||||||||||
Global markets(*) | — | 1 | 1 | — | 3 | 5 | ||||||||||||||||||
Total | 6,396 | 1 | 564 | (13 | ) | 1 | 6,949 | |||||||||||||||||
(*) | Since February 2010, Group PYPSA (CGU Global Markets), accounted for using the proportionate method (previously accounted for using the equity method) |
Balance at | Exchange | Balance at | ||||||||||||||||||||||
2009 | the Beginning | Additions | Difference | Impairment | Rest | the End | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
The United States | 6,676 | — | (226 | ) | (1,097 | ) | 4 | 5,357 | ||||||||||||||||
Mexico | 588 | — | 9 | — | (4 | ) | 593 | |||||||||||||||||
Colombia | 193 | — | 12 | — | — | 205 | ||||||||||||||||||
Chile | 54 | — | 11 | — | — | 65 | ||||||||||||||||||
Chile Pensions | 89 | — | 19 | — | — | 108 | ||||||||||||||||||
Spain and Portugal | 59 | — | — | — | 9 | 68 | ||||||||||||||||||
Total | 7,659 | — | (175 | ) | (1,097 | ) | 9 | 6,396 | ||||||||||||||||
Balance at | Exchange | Balance at | ||||||||||||||||||||||
2008 | the Beginning | Additions | Difference | Impairment | Rest | the End | ||||||||||||||||||
The United States | 6,296 | — | 368 | — | 12 | 6,676 | ||||||||||||||||||
Mexico | 702 | — | (114 | ) | — | — | 588 | |||||||||||||||||
Colombia | 204 | — | (11 | ) | — | — | 193 | |||||||||||||||||
Chile | 64 | — | (10 | ) | — | — | 54 | |||||||||||||||||
Chile Pensions | 108 | — | (19 | ) | — | — | 89 | |||||||||||||||||
Spain and Portugal | 62 | — | — | — | (3 | ) | 59 | |||||||||||||||||
Total | 7,436 | — | 214 | — | 9 | 7,659 | ||||||||||||||||||
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• | As of December 31, 2010, there were no impairment losses on the goodwill recognized in the Group’s cash-generating units, except for the insignificant impairment on the goodwill for the cash-generating unit in Spain and Portugal for the impairment on the investments in Rentrucks, Alquiler y Servicios de Transportes, S.A. and in BBVA Finanzia SpA (for €9 million and €4 million, respectively). |
• | As of December 31, 2009, impairment losses of €1,097 million were estimated in the United States cash-generating unit which were recognized under “Impairment losses on other assets (net) — Goodwill and other intangible assets” in the accompanying consolidated income statement for 2009 (Note 50). The impairment loss of this unit was attributed to the significant decline in economic and credit conditions in the states in which the Group operates in the United States. The valuations were verified by an independent expert, not the Group’s accounts auditor. |
• | As of December 31, 2008, there were no impairment losses on the goodwill recognized in the Group’s cash-generating units. |
Other Intangible Assets. Breakdown by Type of Assets | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Computer software acquisition expenses | 749 | 464 | 259 | |||||||||
Other deferred charges | 28 | 29 | 113 | |||||||||
Other intangible assets | 282 | 360 | 409 | |||||||||
Impairment | (1 | ) | (1 | ) | (1 | ) | ||||||
Total | 1,058 | 852 | 780 | |||||||||
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Other Intangible Assets. Changes Over the Period | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Balance at the beginning | 852 | 780 | 808 | |||||||||||||
Additions | 458 | 362 | 242 | |||||||||||||
Amortization in the year | 47 | (291 | ) | (262 | ) | (256 | ) | |||||||||
Exchange differences and other | 39 | (28 | ) | (13 | ) | |||||||||||
Impairment | 50 | — | — | (1 | ) | |||||||||||
Balance at the end | 1,058 | 852 | 780 | |||||||||||||
21. | TAX ASSETS AND LIABILITIES |
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Reconciliation of the Corporate Tax Expense Resulting | ||||||||||||
from the Application of the Standard Rate and the | ||||||||||||
Expense Registered by this Tax | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Corporation tax(*) | 1,927 | 1,721 | 2,078 | |||||||||
Decreases due to permanent differences: | (559 | ) | (633 | ) | (690 | ) | ||||||
Tax credits and tax relief at consolidated Companies | (180 | ) | (223 | ) | (441 | ) | ||||||
Other items net | (379 | ) | (410 | ) | (249 | ) | ||||||
Net increases (decreases) due to temporary differences | (19 | ) | 96 | 580 | ||||||||
Charge for income tax and other taxes | 1,349 | 1,184 | 1,968 | |||||||||
Deferred tax assets and liabilities recorded (utilized) | 19 | (96 | ) | (580 | ) | |||||||
Income tax and other taxes accrued in the period | 1,368 | 1,088 | 1,388 | |||||||||
Adjustments to prior years’ income tax and other taxes | 59 | 53 | 153 | |||||||||
Income tax and other taxes | 1,427 | 1,141 | 1,541 | |||||||||
(*) | 30% Tax Rate. |
Effective Tax Rate | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Income from: | ||||||||||||
Consolidated Tax Group | 2,398 | 4,066 | 2,492 | |||||||||
Other Spanish Entities | (70 | ) | (77 | ) | 40 | |||||||
Foreign Entities | 4,094 | 1,747 | 4,394 | |||||||||
Total | 6,422 | 5,736 | 6,926 | |||||||||
Income tax and other taxes | 1,427 | 1,141 | 1,541 | |||||||||
Effective Tax Rate | 22.22 | % | 19.89 | % | 22.25 | % |
Tax Recognized in Total Equity | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Charges to total equity | ||||||||||||
Debt securities | — | (276 | ) | (19 | ) | |||||||
Equity instruments | (354 | ) | (441 | ) | (168 | ) | ||||||
Subtotal | (354 | ) | (717 | ) | (187 | ) | ||||||
Credits to total equity(*) | ||||||||||||
Debt securities and others | 192 | 1 | 2 | |||||||||
Subtotal | 192 | 1 | 2 | |||||||||
Total | (162 | ) | (716 | ) | (185 | ) | ||||||
(*) | Tax asset credit to total equity as of December 31, 2010, due primaly to debt instruments unrealized losses. |
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Tax Assets and Liabilities. Breakdown | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Tax assets - | ||||||||||||
Current | 1,113 | 1,187 | 1,266 | |||||||||
Deferred | 5,536 | 5,086 | 5,218 | |||||||||
Pensions | 1,392 | 1,483 | 1,659 | |||||||||
Portfolio | 1,546 | 987 | 1,205 | |||||||||
Other assets | 234 | 221 | 140 | |||||||||
Impairment losses | 1,648 | 1,632 | 1,453 | |||||||||
Other | 699 | 737 | 720 | |||||||||
Tax losses | 17 | 26 | 40 | |||||||||
Total | 6,649 | 6,273 | 6,484 | |||||||||
Tax Liabilities - | ||||||||||||
Current | 604 | 539 | 984 | |||||||||
Deferred | 1,591 | 1,669 | 1,282 | |||||||||
Portfolio | 1,280 | 1,265 | 977 | |||||||||
Charge for income tax and other taxes | 311 | 404 | 305 | |||||||||
Total | 2,195 | 2,208 | 2,266 | |||||||||
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22. | OTHER ASSETS AND LIABILITIES |
Other Assets and Liabilities | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Assets - | ||||||||||||
Inventories | 2,788 | 1,933 | 1,066 | |||||||||
Of which: | ||||||||||||
Real estate agencies | 2,729 | 1,930 | 1,064 | |||||||||
Transactions in transit | 26 | 55 | 33 | |||||||||
Accrued interest | 538 | 581 | 383 | |||||||||
Unaccrued prepaid expenses | 402 | 421 | 206 | |||||||||
Other prepayments and accrued income | 136 | 160 | 177 | |||||||||
Other items | 1,175 | 1,383 | 1,296 | |||||||||
Total | 4,527 | 3,952 | 2,778 | |||||||||
Liabilities - | ||||||||||||
Transactions in transit | 58 | 49 | 53 | |||||||||
Accrued interest | 2,162 | 2,079 | 1,918 | |||||||||
Unpaid accrued expenses | 1,516 | 1,412 | 1,321 | |||||||||
Other accrued expenses and deferred income | 646 | 667 | 597 | |||||||||
Other items | 847 | 780 | 586 | |||||||||
Total | 3,067 | 2,908 | 2,557 | |||||||||
23. | FINANCIAL LIABILITIES AT AMORTIZED COST |
Financial Liabilities at Amortized Cost | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Deposits from central banks (Note 9) | 11,010 | 21,166 | 16,844 | |||||||||
Deposits from credit institutions | 57,170 | 49,146 | 49,961 | |||||||||
Customer deposits | 275,789 | 254,183 | 255,236 | |||||||||
Debt certificates | 85,179 | 99,939 | 104,157 | |||||||||
Subordinated liabilities | 17,420 | 17,878 | 16,987 | |||||||||
Other financial liabilities | 6,596 | 5,624 | 7,420 | |||||||||
Total | 453,164 | 447,936 | 450,605 | |||||||||
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Deposits from Credit Institutions | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Reciprocal accounts | 140 | 68 | 90 | |||||||||
Deposits with agreed maturity | 38,265 | 30,608 | 35,785 | |||||||||
Demand deposits | 1,530 | 1,273 | 1,228 | |||||||||
Other accounts | 696 | 733 | 547 | |||||||||
Repurchase agreements | 16,314 | 16,263 | 11,923 | |||||||||
Subtotal | 56,945 | 48,945 | 49,573 | |||||||||
Accrued interest until expiration | 225 | 201 | 388 | |||||||||
Total | 57,170 | 49,146 | 49,961 | |||||||||
Demand | Deposits with | |||||||||||||||
2010 | Deposits | Agreed Maturity | Repos | Total | ||||||||||||
Millions of euros | ||||||||||||||||
Spain | 961 | 7,566 | 340 | 8,867 | ||||||||||||
Rest of Europe | 151 | 16,160 | 6,315 | 22,626 | ||||||||||||
The United States | 147 | 6,027 | 665 | 6,839 | ||||||||||||
Latin America | 356 | 5,408 | 8,994 | 14,758 | ||||||||||||
Rest of the world | 56 | 3,799 | — | 3,855 | ||||||||||||
Total | 1,671 | 38,960 | 16,314 | 56,945 | ||||||||||||
Demand | Deposits with | |||||||||||||||
2009 | Deposits | Agreed Maturity | Repos | Total | ||||||||||||
Millions of euros | ||||||||||||||||
Spain | 456 | 6,414 | 822 | 7,692 | ||||||||||||
Rest of Europe | 382 | 15,404 | 4,686 | 20,472 | ||||||||||||
The United States | 150 | 5,611 | 811 | 6,572 | ||||||||||||
Latin America | 336 | 1,576 | 9,945 | 11,857 | ||||||||||||
Rest of the world | 16 | 2,336 | — | 2,352 | ||||||||||||
Total | 1,340 | 31,341 | 16,264 | 48,945 | ||||||||||||
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Demand | Deposits with | |||||||||||||||
2008 | Deposits | Agreed Maturity | Repos | Total | ||||||||||||
Millions of euros | ||||||||||||||||
Spain | 676 | 4,413 | 1,131 | 6,220 | ||||||||||||
Rest of Europe | 82 | 17,542 | 2,669 | 20,293 | ||||||||||||
The United States | 40 | 8,164 | 1,093 | 9,297 | ||||||||||||
Latin America | 439 | 3,518 | 7,030 | 10,987 | ||||||||||||
Rest of the world | 80 | 2,696 | — | 2,776 | ||||||||||||
Total | 1,317 | 36,333 | 11,923 | 49,573 | ||||||||||||
Customer Deposits | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Government and other government agencies | 30,982 | 15,297 | 18,837 | |||||||||
Spanish | 17,404 | 4,291 | 6,320 | |||||||||
Foreign | 13,563 | 10,997 | 12,496 | |||||||||
Accrued interests | 15 | 9 | 21 | |||||||||
Other resident sectors | 116,217 | 93,190 | 98,630 | |||||||||
Current accounts | 18,705 | 20,243 | 20,725 | |||||||||
Savings accounts | 24,520 | 27,137 | 23,863 | |||||||||
Fixed-term deposits | 49,160 | 35,135 | 43,829 | |||||||||
Repurchase agreements | 23,197 | 10,186 | 9,339 | |||||||||
Other accounts | 46 | 31 | 62 | |||||||||
Accrued interests | 589 | 458 | 812 | |||||||||
Non-resident sectors | 128,590 | 145,696 | 137,769 | |||||||||
Current accounts | 39,567 | 33,697 | 28,160 | |||||||||
Savings accounts | 26,435 | 23,394 | 22,840 | |||||||||
Fixed-term deposits | 56,752 | 83,754 | 79,094 | |||||||||
Repurchase agreements | 5,370 | 4,415 | 6,890 | |||||||||
Other accounts | 122 | 103 | 104 | |||||||||
Accrued interests | 344 | 333 | 681 | |||||||||
Total | 275,789 | 254,183 | 255,236 | |||||||||
Of which: | ||||||||||||
In euros | 151,806 | 114,066 | 121,895 | |||||||||
In foreign currency | 123,983 | 140,117 | 133,341 | |||||||||
Of which: | ||||||||||||
Deposits from other creditors without valuation adjustment | 275,055 | 253,566 | 254,075 | |||||||||
Accrued interests | 734 | 617 | 1,161 |
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Deposits | ||||||||||||||||||||
Demand | Savings | with Agreed | ||||||||||||||||||
2010 | Deposits | Deposits | Maturity | Repos | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Spain | 21,848 | 24,707 | 67,838 | 18,640 | 133,033 | |||||||||||||||
Rest of Europe | 3,784 | 482 | 18,245 | 1,609 | 24,120 | |||||||||||||||
The United States | 13,985 | 11,363 | 17,147 | — | 42,495 | |||||||||||||||
Latin America | 28,685 | 15,844 | 23,724 | 3,762 | 72,015 | |||||||||||||||
Rest of the world | 357 | 201 | 2,620 | — | 3,178 | |||||||||||||||
Total | 68,659 | 52,597 | 129,574 | 24,011 | 274,841 | |||||||||||||||
Deposits | ||||||||||||||||||||
Demand | Savings | with Agreed | ||||||||||||||||||
2009 | Deposits | Deposits | Maturity | Repos | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Spain | 23,836 | 27,245 | 38,370 | 7,572 | 97,023 | |||||||||||||||
Rest of Europe | 2,975 | 457 | 18,764 | 3 | 22,199 | |||||||||||||||
The United States | 11,548 | 10,146 | 46,292 | — | 67,986 | |||||||||||||||
Latin America | 24,390 | 13,593 | 20,631 | 4,413 | 63,027 | |||||||||||||||
Rest of the world | 440 | 181 | 2,527 | — | 3,148 | |||||||||||||||
Total | 63,189 | 51,622 | 126,584 | 11,988 | 253,383 | |||||||||||||||
Deposits | ||||||||||||||||||||
Demand | Savings | with Agreed | ||||||||||||||||||
2008 | Deposits | Deposits | Maturity | Repos | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Spain | 26,209 | 23,892 | 45,299 | 9,745 | 105,145 | |||||||||||||||
Rest of Europe | 3,214 | 360 | 22,733 | 34 | 26,341 | |||||||||||||||
The United States | 8,288 | 10,899 | 36,997 | — | 56,184 | |||||||||||||||
Latin America | 20,219 | 9,911 | 20,195 | 6,867 | 57,192 | |||||||||||||||
Rest of the world | 1,576 | 2,488 | 4,796 | — | 8,860 | |||||||||||||||
Total | 59,506 | 47,550 | 130,020 | 16,646 | 253,722 | |||||||||||||||
Debt Certificates and Subordinated Liabilities | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Debt Certificates | 85,179 | 99,939 | 104,157 | |||||||||
Promissory notes and bills | 13,215 | 29,582 | 19,985 | |||||||||
Bonds and debentures | 71,964 | 70,357 | 84,172 | |||||||||
Subordinated Liabilities | 17,420 | 17,878 | 16,987 | |||||||||
Total | 102,599 | 117,817 | 121,144 | |||||||||
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Exchange | ||||||||||||||||||||
Balance at the | Repurchase or | Differences and | Balance at the | |||||||||||||||||
2010 | Beginning | Issuances | Redemption | Other | End | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Debt certificates issued in the European Union | 107,069 | 129,697 | (149,965 | ) | 3,768 | 90,569 | ||||||||||||||
With information brochure | 107,035 | 129,697 | (149,962 | ) | 3,768 | 90,538 | ||||||||||||||
Without information brochure | 34 | — | (3 | ) | — | 31 | ||||||||||||||
Other debt certificates issued outside the European Union | 10,748 | 2,622 | (2,097 | ) | 758 | 12,031 | ||||||||||||||
Total | 117,817 | 132,319 | (152,062 | ) | 4,526 | 102,600 | ||||||||||||||
Exchange | ||||||||||||||||||||
Balance at the | Repurchase or | Differences and | Balance at the | |||||||||||||||||
2009 | Beginning | Issuances | Redemption | Other | End | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Debt certificates issued in the European Union | 111,159 | 129,107 | (126,713 | ) | (6,484 | ) | 107,069 | |||||||||||||
With information brochure | 111,126 | 129,107 | (126,713 | ) | (6,485 | ) | 107,035 | |||||||||||||
Without information brochure | 33 | — | — | 1 | 34 | |||||||||||||||
Other debt certificates issued outside the European Union | 9,986 | 4,894 | (4,343 | ) | 211 | 10,748 | ||||||||||||||
Total | 121,145 | 134,001 | (131,056 | ) | (6,273 | ) | 117,817 | |||||||||||||
Exchange | ||||||||||||||||||||
Balance at the | Repurchase or | Differences and | Balance at the | |||||||||||||||||
2008 | Beginning | Issuances | Redemption | Other | End | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Debt certificates issued in the European Union | 109,173 | 107,848 | (85,671 | ) | (20,192 | ) | 111,158 | |||||||||||||
With information brochure | 109,140 | 107,848 | (85,671 | ) | (20,192 | ) | 111,125 | |||||||||||||
Without information brochure | 33 | — | — | — | 33 | |||||||||||||||
Other debt certificates issued outside the European Union | 8,737 | 42,494 | (40,844 | ) | (401 | ) | 9,986 | |||||||||||||
Total | 117,910 | 150,342 | (126,515 | ) | (20,593 | ) | 121,144 | |||||||||||||
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Promissory Notes and Bills | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
In euros | 7,672 | 11,024 | 9,593 | |||||||||
In other currencies | 5,543 | 18,558 | 10,392 | |||||||||
Total | 13,215 | 29,582 | 19,985 | |||||||||
Bonds and Debentures Issued | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
In euros - | ||||||||||||
Non-convertible bonds and debentures at floating interest rates | 6,776 | 8,593 | 11,577 | |||||||||
Non-convertible bonds and debentures at fixed interest rates | 7,493 | 5,932 | 4,736 | |||||||||
Covered bonds | 37,170 | 34,708 | 38,481 | |||||||||
Hybrid financial instruments | 373 | 389 | — | |||||||||
Securitization bonds realized by the Group | 8,047 | 8,407 | 13,783 | |||||||||
Accrued interest and others(*) | 2,952 | 2,731 | 2,668 | |||||||||
In foreign currency - | ||||||||||||
Non-convertible bonds and debentures at floating interest rates | 3,767 | 4,808 | 8,980 | |||||||||
Non-convertible bonds and debentures at fixed interest rates | 2,681 | 2,089 | 1,601 | |||||||||
Covered bonds | 772 | 731 | 1,005 | |||||||||
Hybrid financial instruments | 1,119 | 1,342 | — | |||||||||
Other securities associated to financial activities | — | — | 15 | |||||||||
Securitization bonds realized by the Group | 799 | 605 | 1,165 | |||||||||
Accrued interest and others(*) | 15 | 22 | 161 | |||||||||
Total | 71,964 | 70,357 | 84,172 | |||||||||
(*) | Hedging operations and issuance costs. |
2010 | 2009 | 2008 | ||||||||||||||||||||||
Foreign | Foreign | Foreign | ||||||||||||||||||||||
Interests Rates of Promissory Notes and Bills Issued | Euros | Currency | Euros | Currency | Euros | Currency | ||||||||||||||||||
Fixed rate | 3.75 | % | 5.31 | % | 3.86 | % | 5.00 | % | 3.86 | % | 4.79 | % | ||||||||||||
Floating rate | 1.30 | % | 3.00 | % | 0.90 | % | 2.56 | % | 4.41 | % | 4.97 | % |
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Subordinated Liabilities | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Subordinated debt | 11,569 | 12,117 | 10,785 | |||||||||
Preferred securities | 5,202 | 5,188 | 5,464 | |||||||||
Subtotal | 16,771 | 17,305 | 16,249 | |||||||||
Accrued interest until expiration | 649 | 573 | 738 | |||||||||
Total | 17,420 | 17,878 | 16,987 | |||||||||
Preferred Securities by Issuer | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
BBVA International, Ltd.(1) | 500 | 500 | 500 | |||||||||
BBVA Capital Finance, S.A.U.(1) | 2,975 | 2,975 | 2,975 | |||||||||
Banco Provincial, S.A | 37 | 67 | 70 | |||||||||
BBVA International Preferred, S.A.U.(2) | 1,671 | 1,628 | 1,901 | |||||||||
Phoenix Loan Holdings, Inc. | 19 | 18 | 18 | |||||||||
Total | 5,202 | 5,188 | 5,464 | |||||||||
(1) | Traded on the Spanish AIAF market, | |
(2) | Traded on the London Stock Exchange and New York Stock Exchanges, |
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Other Financial Liabilities | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Creditors for other financial liabilities | 2,295 | 1,776 | 3,191 | |||||||||
Collection accounts | 2,068 | 2,049 | 2,077 | |||||||||
Creditors for other payment obligations | 1,829 | 1,799 | 1,526 | |||||||||
Dividend payable but pending payment | 404 | — | 626 | |||||||||
Total | 6,596 | 5,624 | 7,420 | |||||||||
24. | LIABILITIES UNDER INSURANCE CONTRACTS |
Liabilities under Insurance Contracts | ||||||||||||
Technical Reserve and Provisions | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Mathematical reserves | 6,766 | 5,994 | 5,503 | |||||||||
Provision for unpaid claims reported | 759 | 712 | 640 | |||||||||
Provisions for unexpired risks and other provisions | 509 | 480 | 428 | |||||||||
Total | 8,034 | 7,186 | 6,571 | |||||||||
25. | PROVISIONS |
Provisions. Breakdown by Concepts | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Provisions for pensions and similar obligations | 5,980 | 6,246 | 6,359 | |||||||||
Provisions for taxes and other legal contingencies | 304 | 299 | 263 | |||||||||
Provisions for contingent exposures and commitments | 264 | 243 | 421 | |||||||||
Other provisions | 1,774 | 1,771 | 1,635 | |||||||||
Total | 8,322 | 8,559 | 8,678 | |||||||||
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Provisions for Pensions and Similar Obligations. | ||||||||||||||||
Changes Over the Period | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Balance at the beginning | 6,246 | 6,359 | 5,967 | |||||||||||||
Add - | ||||||||||||||||
Charge to income for the year | 607 | 747 | 1,229 | |||||||||||||
Interest expenses and similar charges | 39.2 | 259 | 274 | 254 | ||||||||||||
Personnel expenses | 46.1 | 37 | 44 | 56 | ||||||||||||
Provision expenses | 311 | 429 | 919 | |||||||||||||
Charges to reserves(*) | 26.2 | 63 | 146 | 63 | ||||||||||||
Transfers and other changes | 16 | 111 | 65 | |||||||||||||
Less - | ||||||||||||||||
Payments | (815 | ) | (980 | ) | (828 | ) | ||||||||||
Amount used and other changes | (137 | ) | (137 | ) | (137 | ) | ||||||||||
Balance at the end | 5,980 | 6,246 | 6,359 | |||||||||||||
(*) | Correspond to actuarial losses (gains) arising from certain defined-benefit post-employment commitments recognized in “Reserves” in the consolidated balance sheets (see Note 2.2.3.). |
Provisions for Contingent Exposures and Commitments. | ||||||||||||
Changes Over the Period | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Balance at beginning | 243 | 421 | 546 | |||||||||
Add - | ||||||||||||
Charge to income for the year | 62 | 110 | 97 | |||||||||
Transfers and other changes | 5 | — | — | |||||||||
Less - | ||||||||||||
Available funds | (40 | ) | (280 | ) | (216 | ) | ||||||
Amount used and other variations | (6 | ) | (8 | ) | (6 | ) | ||||||
Balance at the end | 264 | 243 | 421 | |||||||||
Provisions for Taxes, Legal Contingents and Other Provisions | ||||||||||||
Changes Over the Period | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Balance at beginning | 2,070 | 1,898 | 1,829 | |||||||||
Add - | ||||||||||||
Charge to income for the year | 145 | 152 | 705 | |||||||||
Acquisition of subsidiaries | — | — | — | |||||||||
Transfers and other changes | 41 | 360 | 254 | |||||||||
Less - | ||||||||||||
Available funds | (90 | ) | (103 | ) | (245 | ) | ||||||
Amount used and other variations | (88 | ) | (237 | ) | (645 | ) | ||||||
Disposal of subsidiaries | — | — | — | |||||||||
Balance at the end | 2,078 | 2,070 | 1,898 | |||||||||
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26. | PENSIONS AND OTHER COMMITMENTS |
26.2 | PENSION COMMITMENTS THROUGH DEFINED-BENEFIT PLANS AND OTHERLONG-TERM BENEFITS |
Commitments and Plan Assets in Defined-Benefit Plans | ||||||||||||||||||||
and Other Post-Employment Commitments | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Pension and post-employment benefits | 8,082 | 7,996 | 7,987 | 7,816 | 8,173 | |||||||||||||||
Assets and insurance contracts coverage | 2,102 | 1,750 | 1,628 | 1,883 | 1,816 | |||||||||||||||
Net assets | — | — | — | (34 | ) | — | ||||||||||||||
Net liabilities(*) | 5,980 | 6,246 | 6,359 | 5,967 | 6,357 |
(*) | Registered under the heading “Provisions — Provisions for pensions and similar obligations” of the accompanying consolidated balance sheets |
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Pensions and Early-Retirement | ||||||||||||||||||||||||||||||||||||
Commitments and Welfare | Commitments in Spain | Commitments Abroad | Total BBVA Group | |||||||||||||||||||||||||||||||||
Benefits: Spain and Abroad | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Post-employment benefits | ||||||||||||||||||||||||||||||||||||
Pension commitments | 2,857 | 2,946 | 3,060 | 1,122 | 998 | 904 | 3,979 | 3,944 | 3,964 | |||||||||||||||||||||||||||
Early retirements | 3,106 | 3,309 | 3,437 | — | — | — | 3,106 | 3,309 | 3,437 | |||||||||||||||||||||||||||
Post-employment welfare benefits | 220 | 222 | 221 | 777 | 521 | 365 | 997 | 743 | 586 | |||||||||||||||||||||||||||
Total post-employment benefits(1) | 6,183 | 6,477 | 6,718 | 1,899 | 1,519 | 1,269 | 8,082 | 7,996 | 7,987 | |||||||||||||||||||||||||||
Insurance contracts coverage | ||||||||||||||||||||||||||||||||||||
Pension commitments | 430 | 455 | 436 | — | — | — | 430 | 455 | 436 | |||||||||||||||||||||||||||
Other plan assets | ||||||||||||||||||||||||||||||||||||
Pension commitments | — | — | — | 1,052 | 953 | 891 | 1,052 | 953 | 891 | |||||||||||||||||||||||||||
Post-employment welfare benefits | — | — | — | 620 | 342 | 301 | 620 | 342 | 301 | |||||||||||||||||||||||||||
Total plan assets and insurance contracts coverage(2) | 430 | 455 | 436 | 1,672 | 1,295 | 1,192 | 2,102 | 1,750 | 1,628 | |||||||||||||||||||||||||||
Total net commitments(1) — (2) | 5,753 | 6,022 | 6,282 | 227 | 224 | 77 | 5,980 | 6,246 | 6,359 | |||||||||||||||||||||||||||
of which: | ||||||||||||||||||||||||||||||||||||
Net assets | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Net liabilities(*) | 5,753 | 6,022 | 6,282 | 227 | 224 | 77 | 5,980 | 6,246 | 6,359 |
(*) | Registered under the heading “Provisions — Provisions for pensions and similar obligations” of the accompanying consolidated balance sheets |
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Net Commitments Spain and Abroad: | Commitments in Spain | Commitments Abroad | Total BBVA Group | |||||||||||||||||||||||||||||||||
Summary of Changes in the Period | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Balance at the Beginning | 6,022 | 6,282 | 5,832 | 224 | 76 | 100 | 6,246 | 6,358 | 5,932 | |||||||||||||||||||||||||||
Interest costs | 244 | 259 | 244 | 131 | 105 | 116 | 375 | 364 | 360 | |||||||||||||||||||||||||||
Expected return on plan assets | — | — | — | (116 | ) | (90 | ) | (106 | ) | (116 | ) | (90 | ) | (106 | ) | |||||||||||||||||||||
Current service cost | 6 | 20 | 16 | 37 | 26 | 43 | 43 | 46 | 59 | |||||||||||||||||||||||||||
Cost for early retirements | 296 | 430 | 1,004 | 9 | — | — | 305 | 430 | 1,004 | |||||||||||||||||||||||||||
Past service cost or changes in the plan | — | 36 | 8 | 9 | 7 | 1 | 9 | 43 | 9 | |||||||||||||||||||||||||||
Benefits paid in the period | (815 | ) | (980 | ) | (828 | ) | — | — | — | (815 | ) | (980 | ) | (828 | ) | |||||||||||||||||||||
Acquisitions and divestitures | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Effect of curtailments and settlements | — | — | — | — | 6 | (88 | ) | — | 6 | (88 | ) | |||||||||||||||||||||||||
Contributions in the period | — | — | — | (137 | ) | (55 | ) | (50 | ) | (137 | ) | (55 | ) | (50 | ) | |||||||||||||||||||||
Actuarial gains and losses | (4 | ) | 3 | 4 | 72 | 146 | 59 | 68 | 149 | 63 | ||||||||||||||||||||||||||
Exchage differences | — | — | — | 26 | 2 | 1 | 26 | 2 | 1 | |||||||||||||||||||||||||||
Other changes | 4 | (28 | ) | 2 | (29 | ) | 1 | — | (25 | ) | (27 | ) | 2 | |||||||||||||||||||||||
Balance at the End | 5,753 | 6,022 | 6,282 | 227 | 224 | 76 | 5,980 | 6,246 | 6,358 | |||||||||||||||||||||||||||
Total Post-employments Benefits BBVA Group: | ||||||||||||||||
Income Statements and Equity Effects. | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Interest and similar expenses | 39.1 | 259 | 274 | 254 | ||||||||||||
Interest costs | 375 | 364 | 360 | |||||||||||||
Expected return on plan assets | (116 | ) | (90 | ) | (106 | ) | ||||||||||
Personnel expenses | 127 | 132 | 143 | |||||||||||||
Defined-contribution plan expense | 46.1 | 84 | 68 | 71 | ||||||||||||
Defined-benefit plan expense | 46.1 | 37 | 44 | 56 | ||||||||||||
Other personnel expenses — Welfare benefits | 6 | 20 | 16 | |||||||||||||
Provision — Pension funds and similar obligations | 48 | 405 | 552 | 985 | ||||||||||||
Pension funds | 25 | 9 | (5 | ) | (83 | ) | ||||||||||
Early retirements | 25 | 301 | 431 | 1,003 | ||||||||||||
Other provisions | 95 | 126 | 65 | |||||||||||||
Total Effects in Income Statements: Debit (Credit) | 791 | 958 | 1,382 | |||||||||||||
Total Effects in Equity: Debit (Credit) to Reserves(*) | 64 | 149 | 62 |
(*) | Correspond to actuarial losses (gains) arising from pension commitments and welfare benefits recognized in “Reserves”. For Early reitirements are recognized in the Income Statements (see Note 2.2.3.). |
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Actuarial Assumptions | ||||||
Commitments with Employees in Spain | 2010 | 2009 | 2008 | |||
Mortality tables | PERM/F 2000P. | PERM/F 2000P. | PERM/F 2000P. | |||
Discount rate (cumulative annual) | 4.5%/AA Corporate Bond Yield Curve | 4.5%/AA Corporate Bond Yield Curve | 4.5%/AA Corporate Bond Yield Curve | |||
Consumer price index (cumulative annual) | 2% | 2% | 2% | |||
Salary growth rate (cumulative annual) | At least 3% (depending on employee) | At least 3% (depending on employee) | At least 3% (depending on employee) | |||
Retirement age | ||||||
First date at which the employees are entitled to retire or contractually | ||||||
agreed at the individual level in the case of early retirements |
Pension Commitments Spain | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Pension commitments to retired employees | 2,765 | 2,847 | 2,852 | |||||||||
Vested contingencies in respect of current employees | 92 | 99 | 208 | |||||||||
Total(*) | 2,857 | 2,946 | 3,060 | |||||||||
(*) | Recognized under the heading “Provisions-Provisions for pension and similar obligations” in the accompanyng consolidated balance sheets |
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Post-Employment Welfare Benefits Commitments in Spain | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Post-employment welfare benefit commitments to retired employees | 180 | 183 | 181 | |||||||||
Vested post-employment welfare benefit contingencies in respect of current employees | 40 | 39 | 40 | |||||||||
Total Commitments(*) | 220 | 222 | 221 | |||||||||
(*) | Recognized under the heading “Provisions-Provisions for pension and similar obligations” in the accompanyng consolidated balance sheets |
• | Other commitments with employees — Long-service awards |
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Net Commitments in Spain : | Early | Welfare | Total | |||||||||||||
Changes in the Year 2010 | Pensions | Retirements | Benefits | Spain | ||||||||||||
Millions of euros | ||||||||||||||||
Balance at the Beginning | 2,491 | 3,309 | 222 | 6,022 | ||||||||||||
Interest costs | 107 | 127 | 10 | 244 | ||||||||||||
Expected return on plan assets | — | — | — | — | ||||||||||||
Current service cost | 4 | — | 2 | 6 | ||||||||||||
Cost for early retirements | — | 296 | — | 296 | ||||||||||||
Past service cost or changes in the plan | — | — | — | — | ||||||||||||
Benefits paid in the period | (170 | ) | (627 | ) | (18 | ) | (815 | ) | ||||||||
Acquisitions and divestitures | — | — | — | — | ||||||||||||
Effect of curtailments and settlements | — | — | — | — | ||||||||||||
Contributions in the period | — | — | — | — | ||||||||||||
Actuarial gains and losses | (9 | ) | 6 | (1 | ) | (4 | ) | |||||||||
Exchage differences | — | — | — | — | ||||||||||||
Other changes | 4 | (5 | ) | 5 | 4 | |||||||||||
Balance at the End | 2,427 | 3,106 | 220 | 5,753 | ||||||||||||
Net Commitments in Spain : | Early | Welfare | Total | |||||||||||||
Changes in the Year 2009 | Pensions | Retirements | Benefits | Spain | ||||||||||||
Millions of euros | ||||||||||||||||
Balance at the Beginning | 2,624 | 3,437 | 221 | 6,282 | ||||||||||||
Interest costs | 114 | 135 | 10 | 259 | ||||||||||||
Expected return on plan assets | — | — | — | — | ||||||||||||
Current service cost | 18 | — | 2 | 20 | ||||||||||||
Cost for early retirements | — | 430 | — | 430 | ||||||||||||
Past service cost or changes in the plan | 31 | — | 5 | 36 | ||||||||||||
Benefits paid in the period | (249 | ) | (712 | ) | (19 | ) | (980 | ) | ||||||||
Effect of curtailments and settlements | — | — | — | — | ||||||||||||
Contributions in the period | — | — | — | — | ||||||||||||
Actuarial gains and losses | 2 | 4 | (3 | ) | 3 | |||||||||||
Other changes | (49 | ) | 15 | 6 | (28 | ) | ||||||||||
Balance at the End | 2,491 | 3,309 | 222 | 6,022 | ||||||||||||
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Net Commitments in Spain : | Early | Welfare | Total | |||||||||||||
Changes in the Year 2008 | Pensions | Retirements | Benefits | Spain | ||||||||||||
Millions of euros | ||||||||||||||||
Balance at the Beginning | 2,648 | 2,950 | 234 | 5,832 | ||||||||||||
Interest costs | 116 | 117 | 11 | 244 | ||||||||||||
Expected return on plan assets | — | — | — | — | ||||||||||||
Current service cost | 14 | — | 2 | 16 | ||||||||||||
Cost for early retirements | — | 1,004 | — | 1,004 | ||||||||||||
Past service cost or changes in the plan | 8 | — | — | 8 | ||||||||||||
Benefits paid in the period | (167 | ) | (618 | ) | (43 | ) | (828 | ) | ||||||||
Acquisitions and divestitures | — | — | — | — | ||||||||||||
Effect of curtailments and settlements | — | — | — | — | ||||||||||||
Contributions in the period | — | — | — | — | ||||||||||||
Actuarial gains and losses | 5 | (2 | ) | 1 | 4 | |||||||||||
Exchage differences | — | — | — | — | ||||||||||||
Other changes | — | (14 | ) | 16 | 2 | |||||||||||
Balance at the End | 2,624 | 3,437 | 221 | 6,282 | ||||||||||||
Post-employments Benefits in Spain | ||||||||||||
Income Statements and Equity Effects | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Interest and similar expenses | 244 | 259 | 244 | |||||||||
Personnel expenses | 6 | 20 | 16 | |||||||||
Provision (net) — Early retirements | 301 | 431 | 1,003 | |||||||||
Total Effects in Income Statements: Debit (Credit) | 551 | 710 | 1,263 | |||||||||
Total Effects in Equity: Debit (Credit) to Reserves(*) | (9 | ) | 2 | 5 | ||||||||
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Post-Employment | Commitments | Plan Assets | Net Commitments | |||||||||||||||||||||||||||||||||
Commitments Abroad | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Pension Commitments | ||||||||||||||||||||||||||||||||||||
Mexico | 508 | 398 | 387 | 519 | 424 | 436 | (11 | ) | (26 | ) | (49 | ) | ||||||||||||||||||||||||
Portugal | 288 | 321 | 283 | 290 | 320 | 283 | (2 | ) | 1 | — | ||||||||||||||||||||||||||
The United States | 236 | 195 | 168 | 191 | 163 | 135 | 45 | 32 | 33 | |||||||||||||||||||||||||||
Rest of countries | 90 | 84 | 66 | 52 | 46 | 37 | 38 | 38 | 29 | |||||||||||||||||||||||||||
Subtotal | 1,122 | 998 | 904 | 1,052 | 953 | 891 | 70 | 45 | 13 | |||||||||||||||||||||||||||
Post-Employment Welfare Benefits | ||||||||||||||||||||||||||||||||||||
Mexico | 766 | 511 | 360 | 620 | 342 | 301 | 146 | 169 | 59 | |||||||||||||||||||||||||||
Portugal | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
The United States | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Rest of countries | 11 | 10 | 4 | — | — | — | 11 | 10 | 4 | |||||||||||||||||||||||||||
Subtotal | 777 | 521 | 364 | 620 | 342 | 301 | 157 | 179 | 63 | |||||||||||||||||||||||||||
Total | 1,899 | 1,519 | 1,268 | 1,672 | 1,295 | 1,192 | 227 | 224 | 76 | |||||||||||||||||||||||||||
Net Commitments Abroad: | United | Rest of | Total | |||||||||||||||||
Changes in the Year 2010 | Mexico | Portugal | States | Countries | Abroad | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Balance at the Beginning | 143 | 1 | 32 | 48 | 224 | |||||||||||||||
Interest cost | 94 | 17 | 12 | 8 | 131 | |||||||||||||||
Expected return on plan assets | (87 | ) | (13 | ) | (13 | ) | (3 | ) | (116 | ) | ||||||||||
Current service cost | 26 | 5 | 5 | 2 | 37 | |||||||||||||||
Cost for early retirements | — | 9 | — | — | 9 | |||||||||||||||
Past service cost or changes in the plan | 8 | — | — | 1 | 9 | |||||||||||||||
Benefits paid in the period | — | — | — | — | (0 | ) | ||||||||||||||
Acquisitions and divestitures | — | — | — | — | — | |||||||||||||||
Effect of curtailments and settlements | — | — | — | — | — | |||||||||||||||
Contributions in the period | (114 | ) | (17 | ) | (2 | ) | (3 | ) | (137 | ) | ||||||||||
Actuarial gains and losses | 45 | 19 | 9 | (1 | ) | 72 | ||||||||||||||
Exchage differences | 20 | — | 2 | 4 | 26 | |||||||||||||||
Other changes | (1 | ) | (22 | ) | 1 | (7 | ) | (29 | ) | |||||||||||
Balance at the End | 135 | (2 | ) | 45 | 49 | 227 | ||||||||||||||
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Net Commitments Abroad: | United | Rest of | Total | |||||||||||||||||
Changes in the Year 2009 | Mexico | Portugal | States | Countries | Abroad | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Balance at the Beginning | 10 | — | 33 | 33 | 76 | |||||||||||||||
Interest cost | 72 | 16 | 11 | 6 | 105 | |||||||||||||||
Expected return on plan assets | (65 | ) | (13 | ) | (10 | ) | (2 | ) | (90 | ) | ||||||||||
Current service cost | 15 | 4 | 4 | 3 | 26 | |||||||||||||||
Cost for early retirements | — | — | — | — | — | |||||||||||||||
Past service cost or changes in the plan | 1 | — | — | 6 | 7 | |||||||||||||||
Benefits paid in the period | — | — | — | — | — | |||||||||||||||
Acquisitions and divestitures | — | — | — | — | — | |||||||||||||||
Effect of curtailments and settlements | (5 | ) | 10 | — | 1 | 6 | ||||||||||||||
Contributions in the period | (12 | ) | (29 | ) | (12 | ) | (2 | ) | (55 | ) | ||||||||||
Actuarial gains and losses | 127 | 13 | 7 | (1 | ) | 146 | ||||||||||||||
Exchage differences | — | — | (1 | ) | 3 | 2 | ||||||||||||||
Other changes | — | — | — | 1 | 1 | |||||||||||||||
Balance at the End | 143 | 1 | 32 | 48 | 224 | |||||||||||||||
Net Commitments Abroad: | United | Rest of | Total | |||||||||||||||||
Changes in the Year 2008 | Mexico | Portugal | States | Countries | Abroad | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Balance at the Beginning | 74 | 3 | (6 | ) | 29 | 100 | ||||||||||||||
Interest cost | 84 | 15 | 9 | 8 | 116 | |||||||||||||||
Expected return on plan assets | (78 | ) | (13 | ) | (12 | ) | (3 | ) | (106 | ) | ||||||||||
Current service cost | 29 | 4 | 5 | 5 | 43 | |||||||||||||||
Cost for early retirements | — | — | — | — | — | |||||||||||||||
Past service cost or changes in the plan | — | — | 1 | — | 1 | |||||||||||||||
Benefits paid in the period | — | — | — | — | — | |||||||||||||||
Acquisitions and divestitures | — | — | — | — | — | |||||||||||||||
Effect of curtailments and settlements | (83 | ) | — | (2 | ) | (3 | ) | (88 | ) | |||||||||||
Contributions in the period | (31 | ) | (10 | ) | (3 | ) | (6 | ) | (50 | ) | ||||||||||
Actuarial gains and losses | 15 | 1 | 41 | 2 | 59 | |||||||||||||||
Exchage differences | — | — | — | 1 | 1 | |||||||||||||||
Other changes | — | — | — | — | — | |||||||||||||||
Balance at the End | 10 | — | 33 | 33 | 76 | |||||||||||||||
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Commitments with employees Abroad: | ||||||||||||
Income Statements and Equity Effects. | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Interest and similar expenses | 15 | 15 | 10 | |||||||||
Personnel expenses | 37 | 24 | 40 | |||||||||
Provisions (net) | 9 | (5 | ) | (83 | ) | |||||||
Total Effects in Income Statements: Debit (Credit) | 61 | 34 | (33 | ) | ||||||||
Total Effects in Equity: Debit (Credit) to Reserves(*) | 73 | 147 | 57 | |||||||||
Post-Employment Actuarial Assumptions in Mexico | 2010 | 2009 | 2008 | |||
Mortality tables | EMSSA 97 | EMSSA 97 | EMSSA 97 | |||
Discount rate (cumulative annual) | 8.75% | 9.25% | 10.25% | |||
Consumer price index (cumulative annual) | 3.75% | 3.75% | 3.75% | |||
Medical cost trend rate | 6.75% | 6.75% | 6.75% | |||
Expected rate of return on plan assets | 9.00% | 9.40% | 9.75% |
Pension Commitments and Plan Assets | Commitments | Plan Assets | Net Commitments | |||||||||||||||||||||||||||||||||
in Mexico: Changes in the period | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Balance at the Beginning | 398 | 387 | 584 | 424 | 436 | 572 | (26 | ) | (49 | ) | 12 | |||||||||||||||||||||||||
Interest cost | 40 | 35 | 49 | — | — | — | 40 | 35 | 49 | |||||||||||||||||||||||||||
Expected return on plan assets | — | — | — | 42 | 37 | 48 | (42 | ) | (37 | ) | (48 | ) | ||||||||||||||||||||||||
Current service cost | 7 | 4 | 15 | — | — | — | 7 | 4 | 15 | |||||||||||||||||||||||||||
Past service cost or changes in the plan | 8 | 1 | — | — | — | — | 8 | 1 | — | |||||||||||||||||||||||||||
Benefits paid in the period | (36 | ) | (31 | ) | (31 | ) | (36 | ) | (31 | ) | (31 | ) | (0 | ) | — | — | ||||||||||||||||||||
Effect of curtailments and settlements | — | (1 | ) | (66 | ) | — | — | — | — | (1 | ) | (66 | ) | |||||||||||||||||||||||
Contributions in the period | — | — | — | 45 | 3 | 8 | (45 | ) | (3 | ) | (8 | ) | ||||||||||||||||||||||||
Actuarial gains and losses | 33 | 30 | (47 | ) | 66 | 6 | (37 | ) | (33 | ) | 24 | (10 | ) | |||||||||||||||||||||||
Exchage differences | 57 | 6 | (88 | ) | 61 | 6 | (95 | ) | (4 | ) | — | 7 | ||||||||||||||||||||||||
Other changes | — | (33 | ) | (29 | ) | (83 | ) | (33 | ) | (29 | ) | 83 | — | — | ||||||||||||||||||||||
Balance at the End | 508 | 398 | 387 | 519 | 424 | 436 | (11 | ) | (26 | ) | (49 | ) | ||||||||||||||||||||||||
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Welfare Benefits Commitments and | ||||||||||||||||||||||||||||||||||||
Plan Assets in Mexico: Changes in the | Commitments | Plan Assets | Net Commitments | |||||||||||||||||||||||||||||||||
period | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Balance at the Beginning | 511 | 360 | 416 | 342 | 301 | 354 | 169 | 59 | 62 | |||||||||||||||||||||||||||
Interest costs | 54 | 37 | 35 | — | — | — | 54 | 37 | 35 | |||||||||||||||||||||||||||
Expected return on plan assets | — | — | — | 45 | 28 | 30 | (45 | ) | (28 | ) | (30 | ) | ||||||||||||||||||||||||
Current service cost | 19 | 11 | 14 | — | — | — | 19 | 11 | 14 | |||||||||||||||||||||||||||
Past service cost or changes in the plan | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Benefits paid in the period | (18 | ) | (18 | ) | (19 | ) | (18 | ) | (18 | ) | (19 | ) | — | — | — | |||||||||||||||||||||
Effect of curtailments and settlements | — | (4 | ) | (17 | ) | — | — | — | — | (4 | ) | (17 | ) | |||||||||||||||||||||||
Contributions in the period | — | — | — | 69 | 9 | 23 | (69 | ) | (9 | ) | (23 | ) | ||||||||||||||||||||||||
Actuarial gains and losses | 127 | 119 | 2 | 49 | 16 | (23 | ) | 78 | 103 | 25 | ||||||||||||||||||||||||||
Exchage differences | 73 | 6 | (71 | ) | 49 | 6 | (64 | ) | 24 | — | (7 | ) | ||||||||||||||||||||||||
Other changes | — | — | — | 84 | — | — | (84 | ) | — | — | ||||||||||||||||||||||||||
Balance at the End | 766 | 511 | 360 | 620 | 342 | 301 | 146 | 169 | 59 | |||||||||||||||||||||||||||
1% | 1% | |||||||
Welfare Benefits in Mexico. Sensitivity Analysis | Increase | Decrease | ||||||
Millions of euros | ||||||||
Increase/Decrease in current service cost and interest cost | 21 | (16 | ) | |||||
Increase/Decrease in commitments | 155 | (121 | ) |
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Post-Employment Actuarial Assumptions in Portugal | 2010 | 2010 | 2009 | |||
Mortality tables | TV88/90 | TV88/90 | TV88/90 | |||
Discount rate (cumulative annual) | 5.35% | 5.35% | 5.90% | |||
Consumer price index (cumulative annual) | 1.75% | 2.00% | 2.00% | |||
Salary growth rate (cumulative annual) | 2.75% | 3.00% | 3.00% | |||
Expected rate of return on plan assets | 4.40% | 4.50% | 4.60% |
Pensions Net Commitments in | ||||||||||||||||||||||||||||||||||||
Portugal: | Commitments | Plan Assets | Net Commitments | |||||||||||||||||||||||||||||||||
Changes in the period | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Balance at the Beginning | 321 | 283 | 295 | 320 | 283 | 292 | 1 | — | 3 | |||||||||||||||||||||||||||
Interest cost | 17 | 16 | 15 | — | — | — | 17 | 16 | 15 | |||||||||||||||||||||||||||
Expected return on plan assets | — | — | — | 13 | 13 | 13 | (13 | ) | (13 | ) | (13 | ) | ||||||||||||||||||||||||
Current service cost | 5 | 4 | 4 | — | — | — | 5 | 4 | 4 | |||||||||||||||||||||||||||
Cost for early retirements | 9 | — | — | — | — | — | 9 | — | — | |||||||||||||||||||||||||||
Past service cost or changes in the plan | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Benefits paid in the period | (16 | ) | (16 | ) | (15 | ) | (16 | ) | (16 | ) | (15 | ) | — | — | — | |||||||||||||||||||||
Effect of curtailments and settlements | — | 10 | — | — | — | — | — | 10 | — | |||||||||||||||||||||||||||
Contributions in the period | — | — | — | 17 | 29 | 10 | (17 | ) | (29 | ) | (10 | ) | ||||||||||||||||||||||||
Actuarial gains and losses | (25 | ) | 24 | (16 | ) | (44 | ) | 11 | (17 | ) | 19 | 13 | 1 | |||||||||||||||||||||||
Exchage differences | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Other changes | (22 | ) | — | — | — | — | — | (22 | ) | — | — | |||||||||||||||||||||||||
Balance at the End | 288 | 321 | 283 | 290 | 320 | 283 | (2 | ) | 1 | — | ||||||||||||||||||||||||||
Percentage | ||||||||||||
Plan Assets Categories in Portugal | 2010 | 2009 | 2008 | |||||||||
Equity instruments | — | — | 8.7 | |||||||||
Debt securities | 91.5 | 93.2 | 85.3 | |||||||||
Property, Land and Buildings | 0.5 | — | 0.5 | |||||||||
Cash | 8.0 | 5.2 | 3.6 | |||||||||
Other investments | — | 1.6 | 1.9 | |||||||||
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Post-Employment Actuarial | ||||||
Assumptions in the United States | 2010 | 2009 | 2008 | |||
Mortality tables | RP 2000 Projected | RP 2000 Projected | RP 2000 Projected | |||
Discount rate (cumulative annual) | 5.44% | 5.93% | 6.92% | |||
Consumer price index (cumulative annual) | 2.50% | 2.50% | 2.50% | |||
Salary growth rate (cumulative annual) | 3.50% | 3.50% | 4.00% | |||
Expected rate of return on plan assets | 7.50% | 7.50% | 7.50% |
Pensions Net Commitments in the | ||||||||||||||||||||||||||||||||||||
United States | Commitments | Plan Assets | Net Commitments | |||||||||||||||||||||||||||||||||
Changes in the Period | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Balance at the Beginning | 195 | 168 | 162 | 163 | 135 | 168 | 32 | 33 | (6 | ) | ||||||||||||||||||||||||||
Interest cost | 12 | 11 | 9 | — | — | — | 12 | 11 | 9 | |||||||||||||||||||||||||||
Expected return on plan assets | — | — | — | 13 | 10 | 12 | (13 | ) | (10 | ) | (12 | ) | ||||||||||||||||||||||||
Current service cost | 5 | 4 | 5 | — | — | — | 5 | 4 | 5 | |||||||||||||||||||||||||||
Past service cost or changes in the plan | — | — | 1 | — | — | — | — | — | 1 | |||||||||||||||||||||||||||
Benefits paid in the period | (7 | ) | (6 | ) | (7 | ) | (7 | ) | (6 | ) | (7 | ) | — | — | — | |||||||||||||||||||||
Effect of curtailments and settlements | — | — | (2 | ) | — | — | — | — | — | (2 | ) | |||||||||||||||||||||||||
Contributions in the period | — | — | — | 2 | 12 | 3 | (2 | ) | (12 | ) | (3 | ) | ||||||||||||||||||||||||
Actuarial gains and losses | 16 | 24 | (9 | ) | 7 | 17 | (50 | ) | 9 | 7 | 41 | |||||||||||||||||||||||||
Exchage differences | 14 | (6 | ) | 9 | 12 | (5 | ) | 9 | 2 | (1 | ) | — | ||||||||||||||||||||||||
Other changes | 1 | — | — | — | — | — | 1 | — | — | |||||||||||||||||||||||||||
Balance at the End | 236 | 195 | 168 | 191 | 163 | 135 | 45 | 32 | 33 | |||||||||||||||||||||||||||
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Plan Assets Categories for | ||||||||||||
Pension Commitments in the United | Percentage | |||||||||||
States | 2010 | 2009 | 2008 | |||||||||
Equity instruments | 62.4 | 63.6 | 52.7 | |||||||||
Debt securities | 35.7 | 35.1 | 46.0 | |||||||||
Property, Land and Buildings | — | — | — | |||||||||
Cash | 1.9 | 1.3 | 1.3 | |||||||||
Other investments | — | — | — |
26.2.3 | Estimated future payments for commitments with employees in the BBVA Group |
Expected Future Benefits for | ||||||||||||||||||||||||
Post-Employment Commitments | 2011 | 2012 | 2013 | 2014 | 2015 | 2016-2020 | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Pensions Spain | 791 | 734 | 688 | 637 | 580 | 1,939 | ||||||||||||||||||
Early retirement Spain | 596 | 541 | 497 | 448 | 392 | 1,043 | ||||||||||||||||||
Pension Mexico | 60 | 59 | 61 | 65 | 70 | 441 | ||||||||||||||||||
Pensions Portugal | 17 | 17 | 17 | 17 | 17 | 84 | ||||||||||||||||||
Pensions The United States | 8 | 9 | 10 | 11 | 12 | 72 | ||||||||||||||||||
Total | 876 | 819 | 776 | 730 | 679 | 2,536 | ||||||||||||||||||
27. | COMMON STOCK |
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28. | SHARE PREMIUM |
29. | RESERVES |
Reserves. Breakdown by concepts | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Legal reserve | 367 | 367 | 367 | |||||||||
Restricted reserve for retired capital | 88 | 88 | 88 | |||||||||
Restricted reserve for Parent Company shares | 456 | 470 | 604 | |||||||||
Restricted reserve for redenomination of capital in euros | 2 | 2 | 2 | |||||||||
Revaluation Royal Decree-Law 7/1996 | 32 | 48 | 82 | |||||||||
Voluntary reserves | 4,168 | 2,918 | 1,927 | |||||||||
Consolidation reserves attributed to the Bank and dependents consolidated companies | 9,247 | 8,181 | 6,340 | |||||||||
Total | 14,360 | 12,074 | 9,410 | |||||||||
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29.3. | REVALUATION OF ROYAL DECREE-LAW 7/1996 (REVALUATION AND REGULARIZATION OF THE BALANCE SHEET) |
Revaluation and Regularization of the Balance Sheet | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Legal revaluations and regularizations of tangible assets: | ||||||||||||
Cost | 187 | 187 | 187 | |||||||||
Less: | ||||||||||||
Single revaluation tax (3%) | (6 | ) | (6 | ) | (6 | ) | ||||||
Balance as of December 31, 1999 | 181 | 181 | 181 | |||||||||
Rectification as a result of review by the tax authorities in 2000 | (5 | ) | (5 | ) | (5 | ) | ||||||
Transfer to voluntary reserves | (144 | ) | (128 | ) | (94 | ) | ||||||
Total | 32 | 48 | 82 | |||||||||
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Reserves Assigned to the Consolidation Process | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Accumulated reserves (losses) | ||||||||||||
BBVA, S.A. (Reserves asigned to the holding company) | 4,760 | 1,676 | 1,516 | |||||||||
Grupo BBVA Bancomer | 4,306 | 4,022 | 3,489 | |||||||||
Grupo Chile | 540 | 419 | 248 | |||||||||
Grupo BBVA Banco Provincial | 593 | 413 | 198 | |||||||||
Grupo BBVA Continental | 183 | 127 | 95 | |||||||||
Grupo BBVA Puerto Rico | 5 | 72 | 44 | |||||||||
Grupo BBVA USA Bancshares | (960 | ) | 71 | (84 | ) | |||||||
Grupo BBVA Portugal | (207 | ) | (207 | ) | (220 | ) | ||||||
Grupo BBVA Colombia | (144 | ) | (209 | ) | (264 | ) | ||||||
Grupo BBVA Banco Francés | (113 | ) | (139 | ) | (305 | ) | ||||||
BBVA Seguros, S.A. | 1,275 | 1,052 | 862 | |||||||||
Corporacion General Financiera, S.A. | 1,356 | 1,229 | 979 | |||||||||
BBVA Luxinvest, S.A. | 1,231 | 1,239 | 1,232 | |||||||||
Cidessa Uno, S.L. | 1,016 | 746 | 298 | |||||||||
Anida Grupo Inmobiliario, S.L. | 377 | 401 | 380 | |||||||||
BBVA Suiza, S.A. | 249 | 233 | 222 | |||||||||
Bilbao Vizcaya Holding, S.A. | 150 | 166 | 150 | |||||||||
BBVA Panamá, S.A. | 147 | 118 | 108 | |||||||||
BBVA Ireland Public Limited Company | 144 | 103 | 103 | |||||||||
Almacenes Generales de Deposito, S.A.E. | — | 105 | 97 | |||||||||
Compañía de Cartera e Inversiones, S.A. | 141 | 123 | 121 | |||||||||
Anida Desarrollos Singulares, S.L. | (299 | ) | (21 | ) | — | |||||||
Participaciones Arenal, S.L. | (181 | ) | (181 | ) | (182 | ) | ||||||
Anida Operaciones Singulares, S.L. | (117 | ) | (1 | ) | — | |||||||
BBVA Propiedad F.I.I. | (116 | ) | (12 | ) | (11 | ) | ||||||
Compañía Chilena de Inversiones, S.L. | (87 | ) | (135 | ) | (135 | ) | ||||||
Finanzia, Banco de Crédito, S.A. | (49 | ) | 146 | 144 | ||||||||
Rest | 105 | 211 | (288 | ) | ||||||||
Subtotal | 14,305 | 11,766 | 8,801 | |||||||||
Reserves (losses) of entities accounted for using the equity method: | ||||||||||||
Grupo CITIC | 93 | 31 | 151 | |||||||||
Tubos Reunidos, S.A. | 52 | 51 | 53 | |||||||||
Corp. IBV Participaciones Empresariales, S.A. | 4 | 249 | 437 | |||||||||
Part. Servired, Sdad.Civil | 12 | 24 | 8 | |||||||||
Occidental Hoteles Management, S.L. | (44 | ) | (13 | ) | (3 | ) | ||||||
Hestenar, S.L. | (15 | ) | (2 | ) | (0 | ) | ||||||
Rest | (47 | ) | (31 | ) | (37 | ) | ||||||
Subtotal | 55 | 309 | 609 | |||||||||
Total Reserves | 14,360 | 12,075 | 9,410 | |||||||||
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30. | TREASURY STOCK |
2010 | 2009 | 2008 | ||||||||||||||||||||||
Number of | Millions of | Number of | Millions of | Number of | Millions of | |||||||||||||||||||
Treasury Stock | Shares | Euros | Shares | Euros | Shares | Euros | ||||||||||||||||||
Balance at beginning | 16,642,054 | 224 | 61,539,883 | 720 | 15,836,692 | 389 | ||||||||||||||||||
+ Purchases | 821,828,799 | 7,828 | 688,601,601 | 6,431 | 1,118,942,855 | 14,096 | ||||||||||||||||||
− Sales and other changes | (780,423,886 | ) | (7,545 | ) | (733,499,430 | ) | (6,835 | ) | (1,073,239,664 | ) | (13,745 | ) | ||||||||||||
+/− Derivatives over BBVA shares | — | 45 | — | (92 | ) | — | (20 | ) | ||||||||||||||||
Balance at the end | 58,046,967 | 552 | 16,642,054 | 224 | 61,539,883 | 720 | ||||||||||||||||||
Of which: | ||||||||||||||||||||||||
Held by BBVA | 2,838,798 | 83 | 8,900,623 | 128 | 4,091,197 | 143 | ||||||||||||||||||
Held by Corporación General Financiera, S.A. | 55,207,640 | 469 | 7,740,902 | 96 | 57,436,183 | 577 | ||||||||||||||||||
Held by other subsidiaries | 529 | 529 | 12,503 | |||||||||||||||||||||
Average purchase price in euros | 9.53 | 9.34 | 12.60 | |||||||||||||||||||||
Average selling price in euros | 9.48 | 8.95 | 12.52 | |||||||||||||||||||||
Net gain or losses on transactions (Shareholder’s funds-Reserves) | (106 | ) | (238 | ) | (172 | ) |
2010 | 2009 | 2008 | ||||||||||||||||||||||
Treasury Stock | Min | Max | Min | Max | Min | Max | ||||||||||||||||||
% treasury stock | 0.352 | % | 2.396 | % | 0.020 | % | 2.850 | % | 0.318 | % | 3.935 | % |
Shares of BBVA Accepted in Pledge | 2010 | 2009 | 2008 | |||||||||
Number of shares in pledge | 107,180,992 | 92,503,914 | 98,228,254 | |||||||||
Nominal value | 0.49 | 0.49 | 0.49 | |||||||||
% of share capital | 2.39 | % | 2.47 | % | 2.62 | % |
Shares of BBVA Owned by Third Parties but | ||||||||||||
Managed by the Group | 2010 | 2009 | 2008 | |||||||||
Number of shares property of third parties | 96,107,765 | 82,319,422 | 104,534,298 | |||||||||
Nominal value | 0.49 | 0.49 | 0.49 | |||||||||
% of share capital | 2.14 | % | 2.20 | % | 2.79 | % |
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31. | VALUATION ADJUSTMENTS |
Valuation Adjustments | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Available-for-sale financial assets | 12.4 | 333 | 1,951 | 931 | ||||||||||||
Cash flow hedging | 49 | 188 | 207 | |||||||||||||
Hedging of net investments in foreign transactions | (158 | ) | 219 | 247 | ||||||||||||
Exchange differences | 2.2.16 | (978 | ) | (2,236 | ) | (2,231 | ) | |||||||||
Non-current assets held for sale | — | — | — | |||||||||||||
Entities accounted for using the equity method | (16 | ) | (184 | ) | (84 | ) | ||||||||||
Other valuation adjustments | — | — | — | |||||||||||||
Total | (770 | ) | (62 | ) | (930 | ) | ||||||||||
32. | NON-CONTROLLING INTEREST |
Non-Controlling Interest | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
BBVA Colombia Group | 36 | 30 | 26 | |||||||||
BBVA Chile Group | 375 | 280 | 194 | |||||||||
BBVA Banco Continental Group | 501 | 391 | 278 | |||||||||
BBVA Banco Provincial Group | 431 | 590 | 413 | |||||||||
BBVA Banco Francés Group | 161 | 127 | 88 | |||||||||
Other companies | 52 | 45 | 50 | |||||||||
Total | 1,556 | 1,463 | 1,049 | |||||||||
Net Income atributed to Non-Controlling Interests | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
BBVA Colombia Group | 8 | 6 | 5 | |||||||||
BBVA Chile Group | 89 | 64 | 31 | |||||||||
BBVA Banco Continental Group | 150 | 126 | 97 | |||||||||
BBVA Banco Provincial Group | 98 | 148 | 175 | |||||||||
BBVA Banco Francés Group | 37 | 33 | 44 | |||||||||
Other companies | 7 | 8 | 13 | |||||||||
Total | 389 | 385 | 365 | |||||||||
33. | CAPITAL BASE AND CAPITAL MANAGEMENT |
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Capital Base | 2010(*) | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Basic equity | 34,352 | 27,114 | 22,107 | |||||||||
Common Stock | 2,201 | 1,837 | 1,837 | |||||||||
Parent company reserves | 28,738 | 20,892 | 21,394 | |||||||||
Reserves in consolidated companies | 1,720 | 1,600 | (626 | ) | ||||||||
Non-controlling interests | 1,325 | 1,245 | 928 | |||||||||
Other equity instruments | 7,175 | 7,130 | 5,391 | |||||||||
Deductions (Goodwill and others) | (10,331 | ) | (8,177 | ) | (9,998 | ) | ||||||
Attributed net income (less dividends) | 3,526 | 2,587 | 3,181 | |||||||||
Additional equity | 7,472 | 12,116 | 12,543 | |||||||||
Other deductions | (4,477 | ) | (2,133 | ) | (957 | ) | ||||||
Additional equity due to mixed group(**) | 1,291 | 1,305 | 1,129 | |||||||||
Total Equity | 38,639 | 38,402 | 34,822 | |||||||||
Minimum equity required | 25,066 | 23,282 | 24,124 | |||||||||
(*) | Provisional data. | |
(**) | Mainly insurance companies in the Group. |
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34. | FINANCIAL GUARANTEES AND DRAWABLE BY THIRD PARTIES |
Financial Guarantees and Drawable by Third Parties | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Contingent Exposures | ||||||||||||
Collateral, bank guarantees and indemnities | 28,092 | 26,266 | 27,649 | |||||||||
Rediscounts, endorsements and acceptances | 49 | 45 | 81 | |||||||||
Rest | 8,300 | 6,874 | 8,222 | |||||||||
Total | 36,441 | 33,185 | 35,952 | |||||||||
Contingent Commitments | ||||||||||||
Drawable by third parties: | 86,790 | 84,925 | 92,663 | |||||||||
Credit institutions | 2,303 | 2,257 | 2,021 | |||||||||
Government and other government agency | 4,135 | 4,567 | 4,221 | |||||||||
Other resident sectors | 27,201 | 29,604 | 37,529 | |||||||||
Non-resident sector | 53,151 | 48,497 | 48,892 | |||||||||
Other commitments | 3,784 | 7,398 | 6,234 | |||||||||
Total | 90,574 | 92,323 | 98,897 | |||||||||
35. | ASSETS ASSIGNED TO OTHER OWN AND THIRD-PARTY OBLIGATIONS |
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36. | OTHER CONTINGENT ASSETS AND CONTINGENT LIABILITIES |
37. | PURCHASE AND SALE COMMITMENTS AND FUTURE PAYMENT OBLIGATIONS |
Purchase and Sale Commitments | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Financial instruments sold with repurchase commitments | 40,323 | 29,409 | 32,569 | |||||||||
Financial instruments purchased with resale commitments | 8,693 | 7,023 | 11,515 |
Maturity of Future Payment | Up to | |||||||||||||||||||
Obligations | 1 Year | 1 to 3 Years | 3 to 5 Years | Over 5 Years | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Finance leases | — | — | — | — | — | |||||||||||||||
Operating leases | 144 | 71 | 29 | 89 | 332 | |||||||||||||||
Purchase commitments | 26 | — | — | — | 26 | |||||||||||||||
Technology and systems projects | 14 | — | — | — | 14 | |||||||||||||||
Other projects | 12 | — | — | — | 12 | |||||||||||||||
Total | 170 | 71 | 29 | 89 | 358 | |||||||||||||||
38. | TRANSACTIONS ON BEHALF OF THIRD PARTIES |
Transactions on Behalf of Third Parties | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Financial instruments entrusted by third parties | 534,243 | 530,109 | 510,019 | |||||||||
Conditional bills and other securities received for collection | 4,256 | 4,428 | 5,208 | |||||||||
Securities received in credit | 999 | 489 | 71 |
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Off-Balance Sheet Customer Funds by Type | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Commercialized by the Group | ||||||||||||
Investment companies and mutual funds | 41,006 | 39,849 | 37,076 | |||||||||
Pension funds | 72,598 | 57,264 | 42,701 | |||||||||
Saving insurance contracts | 9,296 | 9,814 | 10,398 | |||||||||
Customer portfolios managed on a discretionary basis | 25,435 | 26,501 | 24,582 | |||||||||
Of which: | ||||||||||||
Portfolios managed on a discretionary | 10,494 | 10,757 | 12,176 | |||||||||
Commercialized by the Group managed by third parties outside the Group | ||||||||||||
Investment companies and mutual funds | 76 | 85 | 59 | |||||||||
Pension funds | 21 | 24 | 24 | |||||||||
Saving insurance contracts | — | — | — | |||||||||
Total | 148,432 | 133,537 | 114,840 | |||||||||
39. | INTEREST, INCOME AND SIMILAR EXPENSES |
39.1. | Interest And Similar Income |
Interest and Similar Income. Breakdown by Origin. | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Central Banks | 239 | 254 | 479 | |||||||||
Loans and advances to credit institutions | 402 | 631 | 1,323 | |||||||||
Loans and advances to customers | 16,002 | 18,119 | 23,580 | |||||||||
Government and other government agency | 485 | 485 | 736 | |||||||||
Resident sector | 5,887 | 7,884 | 11,177 | |||||||||
Non resident sector | 9,630 | 9,750 | 11,667 | |||||||||
Debt securities | 3,080 | 3,342 | 3,706 | |||||||||
Held for trading | 956 | 1,570 | 2,241 | |||||||||
Available-for-sale financial assets andheld-to-madurity investments | 2,124 | 1,772 | 1,465 | |||||||||
Rectification of income as a result of hedging transactions | 63 | 177 | 175 | |||||||||
Insurance activity | 975 | 940 | 812 | |||||||||
Other income | 373 | 312 | 329 | |||||||||
Total | 21,134 | 23,775 | 30,404 | |||||||||
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Adjustments in Income Resulting | ||||||||||||
from Hedge Accounting | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Cash flow hedging | 213 | 295 | 152 | |||||||||
Fair value hedging | (150 | ) | (118 | ) | 23 | |||||||
Total | 63 | 177 | 175 | |||||||||
Interest and Similar Income. | ||||||||||||
Breakdown by Geographical Area | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Domestic market | 8,906 | 11,224 | 15,391 | |||||||||
Foreign | 12,228 | 12,551 | 15,013 | |||||||||
European Union | 744 | 1,089 | 1,974 | |||||||||
Rest of OECD | 7,417 | 7,153 | 8,671 | |||||||||
Rest of countries | 4,067 | 4,309 | 4,368 | |||||||||
Total | 21,134 | 23,775 | 30,404 | |||||||||
39.2. | Interest And Similar Expenses |
Interest and Similar Expenses. Breakdown by Origin | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Bank of Spain and other central banks | 184 | 202 | 384 | |||||||||
Deposits from credit institutions | 1,081 | 1,511 | 3,115 | |||||||||
Customers deposits | 3,570 | 4,312 | 9,057 | |||||||||
Debt certificates | 2,627 | 2,681 | 3,631 | |||||||||
Subordinated liabilities | 829 | 1,397 | 1,121 | |||||||||
Rectification of expenses as a result of hedging transactions | (1,587 | ) | (1,215 | ) | 421 | |||||||
Cost attributable to pension funds (Note 26) | 259 | 274 | 254 | |||||||||
Insurance activity | 707 | 679 | 571 | |||||||||
Other charges | 144 | 52 | 164 | |||||||||
Total | 7,814 | 9,893 | 18,718 | |||||||||
Adjustments in Expenses Resulting from Hedge Accounting | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Cash flow hedging | — | (35 | ) | (33 | ) | |||||||
Fair value hedging | (1,587 | ) | (1,180 | ) | 454 | |||||||
TOTAL | (1,587 | ) | (1,215 | ) | 421 | |||||||
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39.3. | Averages Return On Investments and Average Borrowing Cost |
2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||
Interest and | Interest and | Interest and | ||||||||||||||||||||||||||||||||||
Average | Similar | Interest | Average | Similar | Interest | Average | Similar | Interest | ||||||||||||||||||||||||||||
ASSETS | Balances | Income | Rates (%) | Balances | Income | Rates (%) | Balances | Income | Rates (%) | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Cash and balances with central banks | 21,342 | 239 | 1.12 | 18,638 | 253 | 1.36 | 14,396 | 479 | 3.32 | |||||||||||||||||||||||||||
Securities portfolio and derivatives | 145,990 | 3,939 | 2.70 | 138,030 | 4,207 | 3.05 | 118,356 | 4,659 | 3.94 | |||||||||||||||||||||||||||
Loans and advances to credit institutions | 25,561 | 501 | 1.96 | 26,152 | 697 | 2.66 | 31,229 | 1,367 | 4.38 | |||||||||||||||||||||||||||
Euros | 15,888 | 210 | 1.32 | 16,190 | 353 | 2.18 | 21,724 | 933 | 4.30 | |||||||||||||||||||||||||||
Foreign currency | 9,673 | 291 | 3.01 | 9,962 | 344 | 3.45 | 9,505 | 434 | 4.57 | |||||||||||||||||||||||||||
Loans and advances to customers | 333,021 | 16,296 | 4.89 | 328,969 | 18,498 | 5.62 | 321,498 | 23,720 | 7.38 | |||||||||||||||||||||||||||
Euros | 219,857 | 7,023 | 3.19 | 222,254 | 9,262 | 4.17 | 218,634 | 13,072 | 5.98 | |||||||||||||||||||||||||||
Foreign currency | 113,164 | 9,273 | 8.19 | 106,715 | 9,236 | 8.65 | 102,864 | 10,648 | 10.35 | |||||||||||||||||||||||||||
Other finance income | — | 159 | — | — | 120 | — | — | 179 | — | |||||||||||||||||||||||||||
Other assets | 32,894 | — | — | 31,180 | — | — | 32,377 | — | — | |||||||||||||||||||||||||||
ASSETS/INTEREST AND SIMILAR INCOME | 558,808 | 21,134 | 3.78 | 542,969 | 23,775 | 4.38 | 517,856 | 30,404 | 5.87 | |||||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||
Interest and | Interest and | Interest and | ||||||||||||||||||||||||||||||||||
Average | Similar | Interest | Average | Similar | Interest | Average | Similar | Interest | ||||||||||||||||||||||||||||
LIABILITIES | Balances | Expenses | Rates (%) | Balances | Expenses | Rates (%) | Balances | Expenses | Rates (%) | |||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Deposits from central banks and credit institutions | 80,177 | 1,515 | 1.89 | 74,017 | 2,143 | 2.89 | 77,159 | 3,809 | 4.94 | |||||||||||||||||||||||||||
Euros | 45,217 | 863 | 1.91 | 35,093 | 967 | 2.75 | 32,790 | 1,604 | 4.89 | |||||||||||||||||||||||||||
Foreign currency | 34,960 | 652 | 1.87 | 38,924 | 1,176 | 3.02 | 44,369 | 2,205 | 4.97 | |||||||||||||||||||||||||||
Customer deposits | 259,330 | 3,550 | 1.37 | 249,106 | 4,056 | 1.63 | 237,387 | 8,390 | 3.53 | |||||||||||||||||||||||||||
Euros | 121,956 | 1,246 | 1.02 | 116,422 | 1,326 | 1.14 | 115,166 | 3,765 | 3.27 | |||||||||||||||||||||||||||
Foreign currency | 137,374 | 2,304 | 1.68 | 132,684 | 2,730 | 2.06 | 122,221 | 4,625 | 3.78 | |||||||||||||||||||||||||||
Debt certificates and subordinated liabilities | 119,684 | 2,334 | 1.95 | 120,228 | 3,098 | 2.58 | 119,249 | 6,100 | 5.12 | |||||||||||||||||||||||||||
Euros | 89,020 | 1,569 | 1.76 | 91,730 | 2,305 | 2.51 | 96,764 | 5,055 | 5.22 | |||||||||||||||||||||||||||
Foreign currency | 30,664 | 765 | 2.49 | 28,498 | 793 | 2.78 | 22,485 | 1,045 | 4.65 | |||||||||||||||||||||||||||
Other finance expenses | — | 415 | — | — | 596 | — | — | 418 | — | |||||||||||||||||||||||||||
Other liabilities | 66,541 | — | — | 70,020 | — | — | 56,867 | — | — | |||||||||||||||||||||||||||
Equity | 33,076 | — | — | 29,598 | — | — | 27,194 | — | — | |||||||||||||||||||||||||||
LIABILITIES+EQUITY/INTEREST AND SIMILAR EXPENSES | 558,808 | 7,814 | 1.40 | 542,969 | 9,893 | 1.82 | 517,856 | 18,717 | 3.61 | |||||||||||||||||||||||||||
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2010/2009 | 2009/2008 | |||||||||||||||||||||||
Interest Income and Expense and Similar Items. | Volume | Price | Volume | Total | ||||||||||||||||||||
Change in the Balance | Effect(1) | Effect (2) | Total Effect | Effect(1) | Price Effect(2) | Effect | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Cash and balances with central banks | 37 | (51 | ) | (14 | ) | 141 | (366 | ) | (225 | ) | ||||||||||||||
Securities portfolio and derivatives | 243 | (511 | ) | (268 | ) | 774 | (1,226 | ) | (452 | ) | ||||||||||||||
Loans and advances to credit institutions | (16 | ) | (179 | ) | (195 | ) | (222 | ) | (448 | ) | (670 | ) | ||||||||||||
Euros | (7 | ) | (136 | ) | (142 | ) | (238 | ) | (342 | ) | (580 | ) | ||||||||||||
Foreign currency | (10 | ) | (43 | ) | (53 | ) | 21 | (112 | ) | (91 | ) | |||||||||||||
Loans and advances to customers | 228 | (2,429 | ) | (2,201 | ) | 551 | (5,774 | ) | (5,222 | ) | ||||||||||||||
Euros | (100 | ) | (2,139 | ) | (2,239 | ) | 216 | (4,027 | ) | (3,810 | ) | |||||||||||||
Foreign currency | 558 | (521 | ) | 37 | 399 | (1,811 | ) | (1,412 | ) | |||||||||||||||
Other financial incomes | — | 39 | 39 | — | (59 | ) | (59 | ) | ||||||||||||||||
INTEREST AND SIMILAR INCOME | 693 | (3,333 | ) | (2,641 | ) | 1,474 | (8,104 | ) | (6,629 | ) | ||||||||||||||
Deposits from central banks and credit institutions | 178 | (806 | ) | (628 | ) | (155 | ) | (1,512 | ) | (1,667 | ) | |||||||||||||
Euros | 279 | (382 | ) | (104 | ) | 113 | (750 | ) | (637 | ) | ||||||||||||||
Foreign currency | (120 | ) | (404 | ) | (524 | ) | (271 | ) | (759 | ) | (1,029 | ) | ||||||||||||
Customer deposits | 166 | (672 | ) | (505 | ) | 414 | (4,748 | ) | (4,334 | ) | ||||||||||||||
Euros | 63 | (143 | ) | (80 | ) | 41 | (2,480 | ) | (2,439 | ) | ||||||||||||||
Foreign currency | 96 | (522 | ) | (425 | ) | 396 | (2,291 | ) | (1,895 | ) | ||||||||||||||
Debt certificates and subordinated liabilities | (14 | ) | (750 | ) | (764 | ) | 50 | (3,052 | ) | (3,002 | ) | |||||||||||||
Euros | (68 | ) | (668 | ) | (736 | ) | (263 | ) | (2,481 | ) | (2,744 | ) | ||||||||||||
Foreign currency | 60 | (88 | ) | (27 | ) | 280 | (537 | ) | (258 | ) | ||||||||||||||
Other financial expenses | — | (181 | ) | (181 | ) | — | 178 | 178 | ||||||||||||||||
INTEREST AND SIMILAR EXPENSES | 288 | (2,367 | ) | (2,079 | ) | 908 | (9,733 | ) | (8,825 | ) | ||||||||||||||
NET INTEREST INCOME | (562 | ) | 2,197 | |||||||||||||||||||||
(1) | The volume effect is calculated as the result of the interest rate of the initial period multiplied by the difference between the average balances of both periods. | |
(2) | The price effect is calculated as the result of the average balance of the last period multiplied by the difference between the interest rates of both periods. |
40. | DIVIDEND INCOME |
Dividend Income | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Dividends from: | ||||||||||||
Financial assets held for trading | 157 | 131 | 110 | |||||||||
Available-for-sale financial assets | 372 | 312 | 337 | |||||||||
Total | 529 | 443 | 447 | |||||||||
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41. | SHARE OF PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD |
Investments in Entities Accounted for Using the Equity Method | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
CITIC Group | 337 | 164 | 18 | |||||||||
Corporación IBV Participaciones Empresariales, S.A. | 16 | 18 | 233 | |||||||||
Tubos Reunidos, S.A. | — | 1 | 20 | |||||||||
Occidental Hoteles Management, S.L. | (29 | ) | (31 | ) | (9 | ) | ||||||
Hestenar, S.L. | — | (13 | ) | (1 | ) | |||||||
Las Pedrazas Golf, S.L. | 1 | (7 | ) | — | ||||||||
Servired Española de Medios de Pago, S.A. | 8 | (2 | ) | 26 | ||||||||
Rest | 2 | (10 | ) | 6 | ||||||||
Total | 335 | 120 | 293 | |||||||||
42. | FEE AND COMMISSION INCOME |
Fee and Commission Income. Breakdown by Main Items | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Commitment fees | 133 | 97 | 62 | |||||||||
Contingent liabilities | 282 | 260 | 243 | |||||||||
Letters of credit | 45 | 42 | 45 | |||||||||
Bank and other guarantees | 237 | 218 | 198 | |||||||||
Arising from exchange of foreign currencies and banknotes | 19 | 14 | 24 | |||||||||
Collection and payment services | 2,500 | 2,573 | 2,655 | |||||||||
Securities services | 1,651 | 1,636 | 1,895 | |||||||||
Counselling on and management of one-off transactions | 11 | 7 | 9 | |||||||||
Financial and similar counselling services | 60 | 43 | 24 | |||||||||
Factoring transactions | 29 | 27 | 28 | |||||||||
Non-banking financial products sales | 102 | 83 | 96 | |||||||||
Other fees and commissions | 595 | 565 | 503 | |||||||||
Total | 5,382 | 5,305 | 5,539 | |||||||||
43. | FEE AND COMMISSION EXPENSES |
Fee and Commission Expenses. Breakdown by Main Items | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Brokerage fees on lending and deposit transactions | 5 | 7 | 8 | |||||||||
Fees and commissions assigned to third parties | 578 | 610 | 728 | |||||||||
Other fees and commissions | 262 | 258 | 276 | |||||||||
Total | 845 | 875 | 1,012 | |||||||||
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44. | NET GAINS (LOSSES) ON FINANCIAL ASSETS AND LIABILITIES |
Gains (Losses) on Financial Assets and Liabilities (Net) | 2010 | 2008 | 2009 | |||||||||
Millions of euros | ||||||||||||
Financial assets held for trading | 643 | 321 | 265 | |||||||||
Other financial assets designated at fair value through profit or loss | 83 | 79 | (17 | ) | ||||||||
Other financial instruments not designated at fair value through profit or loss | 715 | 492 | 1,080 | |||||||||
Available-for-sale financial assets | 653 | 504 | 996 | |||||||||
Loans and receivables | 25 | 20 | 13 | |||||||||
Rest | 37 | (32 | ) | 71 | ||||||||
Total | 1,441 | 892 | 1,328 | |||||||||
Net Gains (Losses) on Financial Assets and Liabilities | ||||||||||||
Breakdown by Nature of the Financial Instrument | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Debt instruments | 783 | 875 | (143 | ) | ||||||||
Equity instruments | (318 | ) | 1,271 | (1,986 | ) | |||||||
Loans and advances to customers | 33 | 38 | 106 | |||||||||
Derivatives | 847 | (1,318 | ) | 3,305 | ||||||||
Customer deposits | — | (2 | ) | 13 | ||||||||
Rest | 96 | 28 | 33 | |||||||||
Total | 1,441 | 892 | 1,328 | |||||||||
Derivatives Trading and Hedging | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Trading derivatives | ||||||||||||
Interest rate agreements | 133 | (213 | ) | 568 | ||||||||
Security agreements | 712 | (993 | ) | 2,621 | ||||||||
Commodity agreements | (5 | ) | (2 | ) | 42 | |||||||
Credit derivative agreements | (63 | ) | (130 | ) | 217 | |||||||
Foreign-exchange agreements | 79 | 64 | (152 | ) | ||||||||
Other agreements | (1 | ) | 10 | (57 | ) | |||||||
Subtotal | 855 | (1,264 | ) | 3,239 | ||||||||
Hedging Derivatives Ineffectiveness | ||||||||||||
Fair value hedging | (8 | ) | (55 | ) | 66 | |||||||
Hedging derivative | (127 | ) | 58 | 2,513 | ||||||||
Hedged item | 119 | (113 | ) | (2,447 | ) | |||||||
Cash flow hedging | — | 1 | — | |||||||||
Subtotal | (8 | ) | (54 | ) | 66 | |||||||
Total | 847 | (1,318 | ) | 3,305 | ||||||||
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45. | OTHER OPERATING INCOME AND EXPENSES |
Other Operating Income. Breakdown by main Items | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Income on insurance and reinsurance contracts | 2,597 | 2,567 | 2,512 | |||||||||
Financial income from non-financial services | 647 | 493 | 485 | |||||||||
Of which: | ||||||||||||
Real estate agencies | 202 | 42 | 40 | |||||||||
Rest of other operating income | 299 | 340 | 562 | |||||||||
Of which: | ||||||||||||
Net operating profit from rented buildings | 60 | 57 | 20 | |||||||||
Total | 3,543 | 3,400 | 3,559 | |||||||||
Other Operating Expenses. Breakdown by main Item | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Expenses on insurance and reinsurance contracts | 1,815 | 1,847 | 1,896 | |||||||||
Change in inventories | 554 | 417 | 403 | |||||||||
Of which: | ||||||||||||
Real estate agencies | 171 | 29 | 27 | |||||||||
Rest of other operating expenses | 879 | 889 | 794 | |||||||||
Of which: | ||||||||||||
Contributions to guaranted banks deposits funds | 386 | 323 | 251 | |||||||||
Total | 3,248 | 3,153 | 3,093 | |||||||||
46. | ADMINISTRATIVE COSTS |
46.1 | PERSONNEL EXPENSES |
Personnel Expenses. Breakdown by main Concepts | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Wages and salaries | 3,740 | 3,607 | 3,593 | |||||||||||||
Social security costs | 567 | 531 | 566 | |||||||||||||
Defined-benefit plan expense | 26.2 | 37 | 44 | 56 | ||||||||||||
Defined-contribution plan expense | 26.1 | 84 | 68 | 71 | ||||||||||||
Other personnel expenses | 386 | 401 | 430 | |||||||||||||
Total | 4,814 | 4,651 | 4,716 | |||||||||||||
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Average number of employees | ||||||||||||
Average Number of Employees by Geographical Areas | 2010 | 2009 | 2008 | |||||||||
Spanish banks | ||||||||||||
Executive managers | 1,084 | 1,043 | 1,053 | |||||||||
Other line personnel | 20,901 | 20,700 | 21,268 | |||||||||
Clerical staff | 4,644 | 5,296 | 6,152 | |||||||||
Branches abroad | 666 | 653 | 720 | |||||||||
Subtotal | 27,295 | 27,692 | 29,193 | |||||||||
Companies abroad | ||||||||||||
Mexico | 26,693 | 26,675 | 27,369 | |||||||||
Venezuela | 5,592 | 5,935 | 6,154 | |||||||||
Argentina | 4,247 | 4,156 | 4,242 | |||||||||
Colombia | 4,317 | 4,289 | 4,382 | |||||||||
Peru | 4,379 | 4,222 | 3,836 | |||||||||
United States | 11,033 | 10,705 | 12,029 | |||||||||
Other | 4,796 | 4,839 | 4,918 | |||||||||
Subtotal | 61,057 | 60,821 | 62,930 | |||||||||
Pension fund managers | 6,229 | 5,642 | 8,470 | |||||||||
Other non-banking companies | 10,174 | 10,261 | 11,343 | |||||||||
Total | 104,755 | 104,416 | 111,936 | |||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Male | Female | Male | Female | Male | Female | |||||||||||||||||||
Average Number of Employees | 50,804 | 53,951 | 50,755 | 53,661 | 54,356 | 57,580 | ||||||||||||||||||
Of which: | ||||||||||||||||||||||||
BBVA, S.A. | 15,616 | 11,218 | 15,947 | 11,213 | 16,874 | 11,643 |
Number of Employees | ||||||||||||||||||||||||
by Professional | 2010 | 2009 | 2008 | |||||||||||||||||||||
Category and Gender | Male | Female | Male | Female | Male | Female | ||||||||||||||||||
Executive managers | 1,659 | 338 | 1,646 | 328 | 1,627 | 319 | ||||||||||||||||||
Other line personnel | 23,779 | 20,066 | 21,960 | 18,687 | 22,983 | 19,092 | ||||||||||||||||||
Clerical staff | 26,034 | 35,100 | 26,913 | 34,187 | 29,169 | 35,782 | ||||||||||||||||||
Total | 51,472 | 55,504 | 50,519 | 53,202 | 53,779 | 55,193 | ||||||||||||||||||
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• | 2010-2011 program |
• | 40 percent of the shares received shall be freely transferable by the beneficiaries at the time of their delivery; | |
• | 30 percent of the shares are transferable a year after the settlement date of the program; and | |
• | 30 percent are transferable starting two years after the settlement date of the program. |
• | 2008-2010 plan |
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• | 2009-2011 plan |
• | 2010-2012 plan |
46.2 | GENERAL AND ADMINISTRATIVE EXPENSES |
General and Administrative Expenses. | ||||||||||||
Breakdown by Main concepts | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Technology and systems | 563 | 577 | 598 | |||||||||
Communications | 284 | 254 | 260 | |||||||||
Advertising | 345 | 262 | 273 | |||||||||
Property, fixtures and materials | 750 | 643 | 617 | |||||||||
Of which: | ||||||||||||
Rent expenses(*) | 397 | 304 | 268 | |||||||||
Taxes | 322 | 266 | 295 | |||||||||
Other administration expenses | 1,129 | 1,009 | 997 | |||||||||
Total | 3,393 | 3,011 | 3,040 | |||||||||
(*) | The consolidated companies do not expect to terminate the lease contracts early. |
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47. | DEPRECIATION AND AMORTIZATION |
Depreciation and Amortization | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Tangible assets | 19 | 470 | 435 | 443 | ||||||||||||
For own use | 448 | 416 | 434 | |||||||||||||
Investment properties | 15 | 11 | 1 | |||||||||||||
Operating lease | 7 | 8 | 8 | |||||||||||||
Other Intangible assets | 20.2 | 291 | 262 | 256 | ||||||||||||
Total | 761 | 697 | 699 | |||||||||||||
48. | PROVISIONS (NET) |
Provisions (Net) | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Provisions for pensions and similar obligations | 26 | 405 | 552 | 985 | ||||||||||||
Provisions for contingent exposures and commitments | 22 | (170 | ) | (118 | ) | |||||||||||
Provisions for taxes and other legal contingencies | 6 | 5 | 4 | |||||||||||||
Other Provisions | 49 | 71 | 560 | |||||||||||||
Total | 482 | 458 | 1,431 | |||||||||||||
49. | IMPAIRMENT LOSSES ON FINANCIAL ASSETS (NET) |
Impairment Losses on Financial Assets (Net) | ||||||||||||||||
Breakdown by main concepts | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Available-for-sale financial assets | 12 | 155 | 277 | 145 | ||||||||||||
Debt securities | 4 | 167 | 144 | |||||||||||||
Other equity instruments | 151 | 110 | 1 | |||||||||||||
Held-to-maturity investments | 14 | — | (3 | ) | (1 | ) | ||||||||||
Loans and receivables | 7 | 4,563 | 5,199 | 2,797 | ||||||||||||
Of which: | ||||||||||||||||
Recovery of written-off assets | 7 | 253 | 187 | 192 | ||||||||||||
Total | 4,718 | 5,473 | 2,941 | |||||||||||||
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50. | IMPAIRMENT LOSSES ON OTHER ASSETS (NET) |
Impairment Losses on Other Assets (Net) | Notes | 2010 | 2009 | 2008 | ||||||||||||
Millions of euros | ||||||||||||||||
Goodwill | 20.1 - 17 | 13 | 1,100 | — | ||||||||||||
Other intangible assets | 20.2 | — | — | 1 | ||||||||||||
Tangible assets | 19 | 92 | 155 | 13 | ||||||||||||
For own use | 9 | 62 | 8 | |||||||||||||
Investment properties | 83 | 93 | 5 | |||||||||||||
Inventories | 22 | 370 | 334 | 26 | ||||||||||||
Rest | 14 | 29 | 5 | |||||||||||||
Total | 489 | 1,618 | 45 | |||||||||||||
51. | GAINS (LOSSES) ON DERECOGNIZED ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE |
Gains and Losses on Derecognized Assets Not | ||||||||||||
Classified as Non-current Assets Held for Sale | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Gains | ||||||||||||
Disposal of investments in entities | 40 | 6 | 27 | |||||||||
Disposal of intangible assets and other | 17 | 28 | 75 | |||||||||
Losses: | ||||||||||||
Disposal of investments in entities | (11 | ) | (2 | ) | (14 | ) | ||||||
Disposal of intangible assets and other | (5 | ) | (12 | ) | (16 | ) | ||||||
Total | 41 | 20 | 72 | |||||||||
52. | GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS |
Gains and Losses in Non-current Assets Held for | ||||||||||||
Sale | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Gains for real estate | 374 | 986 | 61 | |||||||||
Of which: | ||||||||||||
Foreclosed | 17 | 5 | (40 | ) | ||||||||
Sale of buildings for own use (Note 16.1) | 285 | 925 | 64 | |||||||||
Impairment of non-current assets held for sale | (247 | ) | (127 | ) | (40 | ) | ||||||
Gains on sale ofavailable-for-sale financial assets | — | — | 727 | |||||||||
Total | 127 | 859 | 748 | |||||||||
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53. | CONSOLIDATES STATEMENT OF CASH FLOWS |
Main Cash Flows in Investing Activities | Cash Flows in Investment Activities | |||||||
2010 | Investments (−) | Divestments (+) | ||||||
Millions of euros | ||||||||
Tangible assets | 1,040 | 261 | ||||||
Intangible assets | 464 | 6 | ||||||
Investments | 1,209 | 1 | ||||||
Subsidiaries and other business units | 77 | 69 | ||||||
Non-current assets held for sale and associated liabilities | 1,464 | 1,347 | ||||||
Held-to-maturity investments | 4,508 | — | ||||||
Other settlements related to investement activities | — | — |
Main Cash Flows in Investing Activities | Cash Flows in Investment Activities | |||||||
2009 | Investments (−) | Divestments (+) | ||||||
Millions of euros | ||||||||
Tangible assets | 931 | 793 | ||||||
Intangible assets | 380 | 147 | ||||||
Investments | 2 | 1 | ||||||
Subsidiaries and other business units | 7 | 32 | ||||||
Non-current assets held for sale and associated liabilities | 920 | 780 | ||||||
Held-to-maturity investments | 156 | — | ||||||
Other settlements related to investement activities | — | — |
Main Cash Flows in Investing Activities | Cash Flows in Investment Activities | |||||||
2008 | Investments (−) | Divestments (+) | ||||||
Millions of euros | ||||||||
Intangible assets | 402 | 31 | ||||||
Investments | 672 | 9 | ||||||
Subsidiaries and other business units | 1,559 | 13 | ||||||
Non-current assets held for sale and associated liabilities | 515 | 374 | ||||||
Held-to-maturity investments | — | 283 | ||||||
Other settlements related to investement activities | 270 | 874 |
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54. | ACCOUNTANT FEES AND SERVICES |
Fees for Audits Conducted | Millions of euros | |||
Audits of the companies audited by firms belonging to the Deloitte worldwide organization and other reports related with the audit | 16.4 | |||
Other reports required pursuant to applicable legislation and tax regulations issued by the national supervisory bodies of the countries in which the Group operates, reviewed by firms belonging to the Deloitte worldwide organization | 3.8 | |||
Fees for audits conducted by other firms | — |
Other Services Contracted | Millions of euros | |||
Firms belonging to the Deloitte worldwide organization | 2.6 | |||
Other firms | 17.6 |
(*) | Including €1.3 million related to fees for tax services. |
55. | RELATED PARTY TRANSACTIONS |
55.1 | TRANSACTIONS WITH SIGNIFICANT SHAREHOLDERS |
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55.2 | TRANSACTIONS WITH THE BBVA GROUP |
Balances arising from transactions with Entities of the | ||||||||||||
Group | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Assets: | ||||||||||||
Loans and advances to credit institutions | 87 | 45 | 27 | |||||||||
Loans and advances to customers | 457 | 613 | 507 | |||||||||
Liabilities: | ||||||||||||
Deposits from credit institutions | — | 3 | 1 | |||||||||
Customer deposits | 89 | 76 | 23 | |||||||||
Debt certificates | 8 | 142 | 344 | |||||||||
Memorandum accounts: | ||||||||||||
Contingent exposures | 55 | 36 | 37 | |||||||||
Contingents commitments | 327 | 340 | 415 |
Balances of Income Statement arising from | ||||||||||||
transactions with Entities of the Group | 2010 | 2009 | 2008 | |||||||||
Millions of euros | ||||||||||||
Income statement: | ||||||||||||
Financial incomes | 14 | 18 | 36 | |||||||||
Financial costs | 2 | 6 | 22 |
55.3 | TRANSACTIONS WITH MEMBERS OF THE BOARD OF DIRECTORS AND MANAGEMENT COMMITTEE |
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55.4 | TRANSACTIONS WITH OTHER RELATED PARTIES |
56. | REMUNERATION OF THE BOARD OF DIRECTORS AND MEMBERS OF THE BANK’S MANAGEMENT COMMITTEE |
• | Remuneration of non-executive directors |
Appointments | ||||||||||||||||||||||||||||||||
Standing- | and | Appointments | Compensation | |||||||||||||||||||||||||||||
Board of | Executive | Audit | Risk | Compensation | Committee | Committee | ||||||||||||||||||||||||||
Year 2010 Remuneration of Non-Executive Directors | Directors | Committee | Committee | Committee | Committee(4) | (5) | (5) | Total | ||||||||||||||||||||||||
Thousand of euros | ||||||||||||||||||||||||||||||||
Tomás Alfaro Drake | 129 | — | 71 | — | — | 59 | — | 259 | ||||||||||||||||||||||||
Juan Carlos Alvarez Mezquiriz | 129 | 167 | — | — | 18 | — | 25 | 339 | ||||||||||||||||||||||||
Rafael Bermejo Blanco | 129 | — | 179 | 107 | — | — | — | 415 | ||||||||||||||||||||||||
Ramón Bustamante y de la Mora | 129 | — | 71 | 107 | — | — | — | 307 | ||||||||||||||||||||||||
José Antonio Fernández Rivero(1) | 129 | — | — | 214 | — | 23 | — | 366 | ||||||||||||||||||||||||
Ignacio Ferrero Jordi | 129 | 167 | — | — | 18 | — | 25 | 339 | ||||||||||||||||||||||||
Carlos Loring Martinez de Irujo | 129 | — | 71 | — | 45 | — | 62 | 307 | ||||||||||||||||||||||||
José Maldonado Ramos(2) | 129 | — | — | 107 | — | 23 | 25 | 284 | ||||||||||||||||||||||||
Enrique Medina Fernández | 129 | 167 | — | 107 | — | — | — | 403 | ||||||||||||||||||||||||
Susana Rodríguez Vidarte | 129 | — | 71 | — | 18 | 23 | 25 | 266 | ||||||||||||||||||||||||
Total(3) | 1,290 | 501 | 463 | 642 | 99 | 128 | 162 | 3,284 | ||||||||||||||||||||||||
(1) | Mr. José Antonio Fernández Rivero, apart from the amounts detailed in the table above, also received a total of €652 thousand in early retirement benefit as a former director of BBVA. | |
(2) | Mr. José Maldonado Ramos, who resigned as chief executive of BBVA on December 22, 2009, received in the year 2010 apart from the amounts detailed in the table above, a total of €805 thousand in accrued variable compensation in 2009 by his former post of Company Secretary. | |
(3) | Mr. Roman Knörr Borras, who resigned as executive director on March 23, 2010, received in the year 2010 the total amount of €74 thousand as compensation for their membership of the Board of Directors and Standing-Executive Committee until that date. | |
(4) | By agreement of the Board of Directors on May 25, 2010, created two new Appointments and Compensation Committees, which replaced the former Appointments and Compensation Committee. | |
(5) | Remuneration received from June 1, 2010. |
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• | Remuneration of executive directors |
Fixed | Variable | |||||||||||
Year 2010 Remuneration of Executive Directors | Remuneration | Remuneration(1) | Total | |||||||||
Thousand of euros | ||||||||||||
Chairman and CEO | 1,928 | 3,388 | 5,316 | |||||||||
President and COO(2) | 1,249 | 1,482 | 2,731 | |||||||||
Total | 3,177 | 4,870 | 8,046 | |||||||||
(1) | The figures relate to variable remuneration for 2009 paid in 2010. | |
(2) | The variable remuneration for 2009 of COO, who was appointed on September 29, 2009, includes the remuneration received as Director of Resources and Media in the period of 2009 in which he occupied that function (9 months ) and earned as COO since his appointment. |
• | Remuneration of the members of the management committee(*) |
(*) | This section includes information on the members of the Management Committee as of December 31, 2010, excluding the executive directors. |
• | variable multi-year stock remuneration program for executive directors and members of the management committee |
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• | Scheme for remuneration of non-executive directors with deferred distribution of shares |
Theorical | Accumulated | |||||||
Scheme for Remuneration of Non-Executive Directors | Shares | Theorical | ||||||
with Deferred Distribution of Shares | Assigned in 2010 | Shares | ||||||
Tomás Alfaro Drake | 3,521 | 13,228 | ||||||
Juan Carlos Alvarez Mezquiriz | 5,952 | 39,463 | ||||||
Rafael Bermejo Blanco | 7,286 | 23,275 | ||||||
Ramón Bustamante y de la Mora | 5,401 | 38,049 | ||||||
José Antonio Fernández Rivero | 6,026 | 30,141 | ||||||
Ignacio Ferrero Jordi | 5,952 | 40,035 | ||||||
Carlos Loring Martínez de Irujo | 5,405 | 25,823 | ||||||
Enrique Medina Fernández | 7,079 | 51,787 | ||||||
Susana Rodríguez Vidarte | 4,274 | 24,724 | ||||||
Total(*) | 50,896 | 286,525 | ||||||
(*) | Additionally, were also assigned to Don Roman Knorr Borras, who resigned as director as of March 23, 2010, 5,198 theoretical shares equivalent to 20% of the remuneration received by him in 2009. |
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• | Pension commitments |
• | Termination of the contractual relationship. |
57. | DETAIL OF THE DIRECTORS’ HOLDINGS IN COMPANIES WITH SIMILAR BUSINESS ACTIVITIES |
58. | OTHER INFORMATION |
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59. | SUBSEQUENT EVENTS |
60. | DIFFERENCES BETWEEN EU-IFRS REQUIRED TO BE APPLIED UNDER THE BANK OF SPAIN’S CIRCULAR 4/2004 AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND OTHER REQUIRED DISCLOSURES. |
• Net income attributed to parent company and Shareholders’ equity reconciliation betweenEU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 and U.S. GAAP(*) | A | |
• Consolidated Financial Statements | B | |
• Main disclosures required by U.S. accounting regulations for banks and additional disclosures required under U.S. GAAP | C |
(*) | BBVA is availing itself of the accommodation in Item 17(c)(2)(iv) ofForm 20-F with respect to the application of IAS 21 for highly inflationary economies (Venezuela). Therefore, this reconciliation has been prepared in accordance with Item 18 ofForm 20-F which is different from that required by US GAAP. See Item 16 below and the discussion under Venezuela for additional information. |
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Increase (Decrease) | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
Item | 2010 | 2009 | 2008 | |||||||||||||
Millions of euros, except per share data | ||||||||||||||||
NET INCOME | ||||||||||||||||
Net income for the year under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 4,995 | 4,595 | 5,385 | |||||||||||||
Net income attributed to non-controlling interests under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | (389 | ) | (385 | ) | (365 | ) | ||||||||||
Net income attributed to parent company under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 4,606 | 4,210 | 5,020 | |||||||||||||
Adjustments to conform to U.S. GAAP: | ||||||||||||||||
Business combination with Argentaria | 1 | (22 | ) | (22 | ) | (36 | ) | |||||||||
Valuation of assets | 2 | (276 | ) | (910 | ) | (32 | ) | |||||||||
Valuation of financial instruments | 3 | — | — | — | ||||||||||||
Accounting of goodwill | 4 | (2 | ) | 713 | (2 | ) | ||||||||||
Accounting of derivatives | 6 | (34 | ) | (34 | ) | (128 | ) | |||||||||
Loans adjustments | 7 | — | — | (1,152 | ) | |||||||||||
Pension plan cost | 8 | (64 | ) | (221 | ) | — | ||||||||||
Tax effect of U.S. GAAP adjustments and deferred taxation | 9 | 91 | 89 | 402 | ||||||||||||
Net income attributed to parent company in accordance with U.S. GAAP(*) | 4,299 | 3,825 | 4,070 | |||||||||||||
Other comprehensive income, (loss) net of tax: | ||||||||||||||||
Foreign currency translation adjustments and others | 1,784 | (76 | ) | (1,001 | ) | |||||||||||
Unrealized gains on securities: | ||||||||||||||||
Unrealized holding gains (losses) arising during period, net of tax | (1,680 | ) | 943 | (2,657 | ) | |||||||||||
Derivative instruments and hedging activities | (531 | ) | (4 | ) | 175 | |||||||||||
Comprehensive income (losses) in accordance with U.S. GAAP (*) | 10 | 3,872 | 4,688 | 587 | ||||||||||||
Earning per share (Euros)(see note 60. A.11) (**) | 1.14 | 1.03 | 1.10 |
(*) | In accordance with Item 18 ofForm 20-F. | |
(**) | At the date of the issuance of these financial statements, the scrip dividend (“Dividendo Option”) mentioned in Note 4 is not distributed. Therefore, the conditions to restate the Earning Per Share under IAS 33 and ASC 260 are not met. |
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Increase (Decrease) | ||||||||||||||||
As of December 31, | ||||||||||||||||
Item | 2010 | 2009 | 2008 | |||||||||||||
Millions of euros | ||||||||||||||||
TOTAL EQUITY | ||||||||||||||||
Total equity under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 37,475 | 30,763 | 26,705 | |||||||||||||
Non-controlling interests under EU-IFRS | (1,556 | ) | (1,463 | ) | (1,049 | ) | ||||||||||
Total equity without non-controlling interests under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 35,919 | 29,300 | 25,656 | |||||||||||||
Adjustments to conform to U.S. GAAP: | ||||||||||||||||
Business combination with Argentaria | 1 | 5,425 | 5,447 | 5,469 | ||||||||||||
Valuation of assets | 2 | (1,260 | ) | (984 | ) | (74 | ) | |||||||||
Valuation of financial instruments | 3 | — | 18 | 36 | ||||||||||||
Accounting of goodwill | 4 | 3,657 | 3,332 | 2,573 | ||||||||||||
Adjustments related to inflation-due to IFRS-1 | 5 | (229 | ) | (199 | ) | (192 | ) | |||||||||
Accounting of derivatives | 6 | (48 | ) | 7 | 35 | |||||||||||
Loans adjustments | 7 | — | — | 36 | ||||||||||||
Tax effect of U.S. GAAP adjustments and deferred taxation | 9 | (651 | ) | (749 | ) | (795 | ) | |||||||||
Total shareholders’ equity in accordance with U.S. GAAP(*) (**) | 42,813 | 36,172 | 32,744 |
(*) | In accordance with Item 18 ofForm 20-F. | |
(**) | Under US GAAP “Shareholders’ equity” is equivalent to “Total equity” net of “Non controlling interest in subsidiaries”. |
1. | BUSINESS COMBINATION WITH ARGENTARIA — |
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Millions of euros | ||||
Approximate Argentaria net worth as of January 28, 2000 under Spanish GAAP | 3,454 | |||
(i) Reversal of the net effect of the restatement of fixed assets and equity securities | (129 | ) | ||
(ii) Reduction for employees and third party loans issued to purchase shares of capital stock | (123 | ) | ||
(iii) Goodwill amortization adjustments | 101 | |||
(iv) Up-front premium reversal | 108 | |||
(v) Valuation of investment securities | 1,926 | |||
(vi) Effect of adjustments to conform to U.S. GAAP for investments in affiliated Companies | (87 | ) | ||
(vii) Tax effect of above mentioned adjustments | (608 | ) | ||
(viii) Other adjustments | 35 | |||
Subtotal | 1,223 | |||
Approximate Argentaria net worth as of January 28, 2000 under U.S. GAAP | 4,677 |
i. | Revaluation of property and equity securities |
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2000 | Millions of euros | |||
Net lending | 611 | |||
Investment securities-held to maturity | 306 | |||
Premises and equipment | 129 | |||
Other assets and liabilities | (113 | ) | ||
Long term debt | (173 | ) | ||
Tax effect | (220 | ) | ||
Goodwill | 5,776 | |||
6,316 | ||||
2. | VALUATION OF ASSETS — |
• | Revaluation of property |
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• | Valuation of property |
• | Sale and leaseback of fixed assets |
• | We considered that there is no reasonable certainty that the repurchase option will be exercised, because it is at fair value, and there are no other indicators that we expect would economically force us to exercise the repurchase option; and | |
• | We completed an analysis of the other main factors of the transaction and concluded that the lease agreements had the characteristics of operating leases, the sale price and lease payments were at fair value so, in effect, there had been a normal sale transaction and the gain on the sale of the properties was recognized immediately in the consolidated statement of income for the year 2009 and 2010. |
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• | undo the sale, place the properties under repurchase agreement back in the accounting books (€404 million as of December 31, 2010 and €301 million as of December 31,2009) and continue to depreciate them for the year 2010 and 2009 (€11 million and €4 million, respectively); | |
• | eliminate the profit on sale (€273 million of income as of the date of the transaction in 2010 and €914 million of income as of the date of the transaction in 2010) and create a liability for the total amount of the cash received; and | |
• | reclassify the operating leases rental payments incurred by the Group (€113 million for the year 2010 and €31 million for year 2009) as interest expense. |
3. | VALUATION OF FINANCIAL INSTRUMENTS — |
4. | ACCOUNTING OF GOODWILL — |
Net Income Attributed | ||||||||||||||||||||||||
Shareholders’ Equity | to Parent Company | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
Millions of Euros | ||||||||||||||||||||||||
Goodwill previous to IFRS1 | 981 | 981 | 981 | — | — | — | ||||||||||||||||||
Reversal of Step Acquisition | 2,704 | 2,330 | 2,310 | — | — | — | ||||||||||||||||||
Step Acquisition of BBVA Bancomer | (1,194 | ) | (1,171 | ) | (1,170 | ) | (1 | ) | 2 | 1 | ||||||||||||||
Adquisition and impairment of Compass | 1,182 | 1,095 | 398 | — | 711 | — | ||||||||||||||||||
Others | (16 | ) | 97 | 54 | (1 | ) | — | (3 | ) | |||||||||||||||
Adjustment 4 in reconciliation to U.S. GAAP | 3,657 | 3,332 | 2,573 | (2 | ) | 713 | (2 | ) | ||||||||||||||||
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Millions of euros | ||||
Net Worth Adquired | 1,207 | |||
Investment securities | (32 | ) | ||
Net loans and leases | 622 | |||
Permises and equipment | (28 | ) | ||
Intangible assets | 970 | |||
Other assets | 189 | |||
Time deposits | (124 | ) | ||
Long term debt | (50 | ) | ||
Other liabilities | (490 | ) | ||
Fair value under U.S. GAAP | 2,264 | |||
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2010 | 2009 | 2008 | ||||||||||
Millions of euros | ||||||||||||
The United States | 6,975 | 6,472 | 7,098 | |||||||||
Spain and Portugal | 4,282 | 4,294 | 4,286 | |||||||||
Mexico | 2,636 | 2,302 | 2,265 | |||||||||
Wholesale Banking & Global Market | 1,489 | 1,489 | 1,489 | |||||||||
Pension in South América | 294 | 252 | 208 | |||||||||
Chile | 121 | 104 | 86 | |||||||||
Colombia | 236 | 205 | 192 | |||||||||
Other Reporting Units | 13 | 10 | 10 | |||||||||
Total | 16,047 | 15,128 | 15,634 | |||||||||
5. | ADJUSTMENTS RELATED TO INFLATION-DUE TO IFRS-1 |
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6. | ACCOUNTING OF DERIVATIVES — |
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7. | LOANS ADJUSTMENTS — |
8. | PENSION PLAN COST — |
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9. | TAX EFFECT OF U.S. GAAP ADJUSTMENTS AND DEFERRED TAXATION — |
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Years Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Millions of euros | ||||||||||||
Income tax provision under IFRS | 1,427 | 1,141 | 1,541 | |||||||||
Tax effect of U.S. GAAP adjustments and deferred taxation | (103 | ) | (103 | ) | (416 | ) | ||||||
Income tax provision under U.S. GAAP | 1,324 | 1,038 | 1,125 | |||||||||
As of December 31, | As of December 31, | As of December 31, | ||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Deferred | Deferred | Deferred | Deferred | Deferred | Deferred | |||||||||||||||||||
Tax | Tax | Tax | Tax | Tax | Tax | |||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
As reported under the EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 5,442 | (1,591 | ) | 4,993 | (1,669 | ) | 5,055 | (1,282 | ) | |||||||||||||||
Less — | ||||||||||||||||||||||||
Timing differences recorded under the EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 and reversed in the reconciliation to U.S. GAAP | (467 | ) | (434 | ) | (504 | ) | (417 | ) | (548 | ) | (171 | ) | ||||||||||||
Tax effect of the EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 to U.S. GAAP reconciliation adjustments | — | — | — | — | (1 | ) | — | |||||||||||||||||
Plus — | ||||||||||||||||||||||||
Tax effect of the EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 to U.S. GAAP reconciliation adjustments | 377 | (49 | ) | 302 | (66 | ) | 119 | (106 | ) | |||||||||||||||
As reported under ASC 740 (gross) | 5,352 | (2,074 | ) | 4,791 | (2,152 | ) | 4,625 | (1,559 | ) | |||||||||||||||
Valuation reserve | (19 | ) | — | (20 | ) | — | (22 | ) | — | |||||||||||||||
As reported under ASC 740 (net) | 5,333 | (2,074 | ) | 4,771 | (2,152 | ) | 4,603 | (1,559 | ) | |||||||||||||||
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Millions of euros | ||||||||||||
Deferred Tax assets | ||||||||||||
Investments, derivatives and other | 1,889 | 1,360 | 862 | |||||||||
Loan loss reserves | 1,648 | 1,632 | 1,440 | |||||||||
Unrealized losses on securities pension liability | 1,405 | 1,485 | 1,684 | |||||||||
Fixed assets | 392 | 286 | 44 | |||||||||
Net operating loss carryforward | 17 | 26 | 38 | |||||||||
Goodwill | 2 | 2 | 557 | |||||||||
Total deferred tax assets | 5,352 | 4,791 | 4,625 | |||||||||
Valuation reserve | (19 | ) | (20 | ) | (22 | ) | ||||||
Net tax asset | 5,333 | 4,771 | 4,603 | |||||||||
Deferred tax liabilities | ||||||||||||
Unrealized gains on securities pension liability | (67 | ) | (22 | ) | (1 | ) | ||||||
Investments and derivatives | (1,195 | ) | (951 | ) | (335 | ) | ||||||
Fixed assets | (179 | ) | (91 | ) | (11 | ) | ||||||
Goodwill | (434 | ) | (465 | ) | (238 | ) | ||||||
Other | (199 | ) | (622 | ) | (974 | ) | ||||||
Total deferred tax liabilities | (2,074 | ) | (2,152 | ) | (1,559 | ) | ||||||
2010 | 2009 | 2008 | ||||||||||
Percentages | ||||||||||||
Corporate income tax at the standard rate | 30.00 | 30.00 | 30.00 | |||||||||
Decrease arising from permanent differences | (8.70 | ) | (11.04 | ) | (9.96 | ) | ||||||
Adjustments to the provision for prior years’ corporate income tax and other taxes | 0.92 | 0.92 | 2.21 | |||||||||
Income tax provision under the EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 22.22 | 19.89 | 22.25 | |||||||||
Tax effect of U.S. GAAP adjustments and deferred taxation under ASC 740 | (0.24 | ) | (0.11 | ) | (2.03 | ) | ||||||
Income tax provision under U.S. GAAP | 21.98 | 19.78 | 20.22 |
10. | OTHER COMPREHENSIVE INCOME — |
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Foreign | ||||||||||||||||
Currency | Derivative | |||||||||||||||
Translation | Unrealized | Instruments and | Total Other | |||||||||||||
Adjustments | Gains on | Hedging | Comprehensive | |||||||||||||
and Others | Securities | Activities | Income | |||||||||||||
Millions of euros | ||||||||||||||||
Balance as of December 31, 2008 | (6,166 | ) | 1,070 | 477 | (4,619 | ) | ||||||||||
Changes in 2009 | (76 | ) | 943 | (4 | ) | 863 | ||||||||||
Balance as of December 31, 2009 | (6,242 | ) | 2,013 | 473 | (3,756 | ) | ||||||||||
Changes in 2010 | 1,784 | (1,680 | ) | (531 | ) | (427 | ) | |||||||||
Balance as of December 31, 2010 | (4,458 | ) | 333 | (58 | ) | (4,183 | ) | |||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||
Tax | Tax | Tax | ||||||||||||||||||||||||||||||||||
Before | Expense | Net of | Before | Expense | Net of | Before | Expense | Net of | ||||||||||||||||||||||||||||
Tax | or | Tax | Tax | or | Tax | Tax | or | Tax | ||||||||||||||||||||||||||||
Amount | Benefit | Amount | Amount | Benefit | Amount | Amount | Benefit | Amount | ||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments and Others | 1,784 | — | 1,784 | (76 | ) | — | (76 | ) | (1,001 | ) | — | (1,001 | ) | |||||||||||||||||||||||
Unrealized Gains on Securities | (2,184 | ) | 504 | (1,680 | ) | 1,221 | (278 | ) | 943 | (3,454 | ) | 797 | (2,657 | ) | ||||||||||||||||||||||
Derivative Instruments and Hedging Activities | (691 | ) | 159 | (531 | ) | (5 | ) | 1 | (4 | ) | 228 | (53 | ) | 175 | ||||||||||||||||||||||
Total Other Comprehensive Income | (1,091 | ) | 663 | (427 | ) | 1,140 | (277 | ) | 863 | (4,227 | ) | 744 | (3,483 | ) | ||||||||||||||||||||||
11. | EARNINGS PER SHARE — |
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Millions of euros, except per share data | ||||||||||||
Numerator for basic earnings per share: | ||||||||||||
Income available to common shareholders (IFRS)(*) | 4,676 | 4,228 | 5,020 | |||||||||
Income available to common shareholders (U.S. GAAP) | 4,299 | 3,825 | 4,070 | |||||||||
Numerator for diluted earnings per share: | ||||||||||||
Income available to common shareholders (IFRS)(*) | 4,676 | 4,228 | 5,020 | |||||||||
Income available to common shareholders (U.S. GAAP) | 4,369 | 3,843 | 4,070 |
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Millions of euros, except per share data | ||||||||||||
Denominator for basic earnings per share | ||||||||||||
IFRS(*) | 3,982,754,198 | 3,899,289,696 | 3,846,156,552 | |||||||||
U.S. GAAP | 3,761,698,126 | 3,719,162,366 | 3,706,204,569 | |||||||||
Denominator for diluted earnings per share | ||||||||||||
IFRS(*) | 3,982,754,198 | 3,899,289,696 | 3,846,156,552 | |||||||||
U.S. GAAP | 3,982,754,198 | 3,758,316,634 | 3,706,204,569 | |||||||||
IFRS(*)(**) | ||||||||||||
Basic earnings per share (Euros) | 1.17 | 1.08 | 1.31 | |||||||||
Diluted earnings per share (Euros) | 1.17 | 1.08 | 1.31 | |||||||||
U.S. GAAP(**) | ||||||||||||
Basic earnings per share (Euros) | 1.14 | 1.03 | 1.10 | |||||||||
Diluted earnings per share (Euros) | 1.10 | 1.02 | 1.10 |
(*) | EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004. The presentation and disclosure requirements for earnings per share (EPS) under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 is presented in Note 5 of the Consolidated Financial Statements. | |
(**) | At the date of the issuance of these financial statements, the scrip dividend (“Dividendo Opción”) mentioned in Note 4 to the Consolidated Financial Statements is not distributed. Therefore, the conditions to restate the Earning per share under IAS 33 and ASC 260 are not met. |
12. | ASC 810- CONSOLIDATION OF SPECIAL PURPOSE ENTITIES — |
• | We are the sponsor in the issuance of certain debentures by special purpose vehicles (SPEs) (the issuer of preference shares) that we incorporated and for which we hold 100% of the common stock and voting rights. |
• | The SPEs lend both the proceeds raised from the preferred securities and the common stock back to us through intercompany loans with fixed maturities and fixed interest rate similar to that the dividend coupon on the preferred securities issued by the SPEs. Consequently, the SPEs use the cash received from interest payments on BBVA loans to pay dividends to the preferred securities holders. | |
• | We guarantee the dividend payments on the preferred securities. |
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13. | OTHER ACCOUNTING STANDARDS EFFECTIVE IN 2010 — |
• | The quoted prices of the identical liability when traded as an asset | |
• | Quoted prices for similar liabilities or similar liabilities when traded as assets. |
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• | An entity that is a SEC filer is required to evaluate subsequent events through the date that the financial statements are issued, but is not required to disclose the date through which subsequent events have been evaluated. |
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• | An entity that is a conduit bond obligor for conduit debt securities that are traded in a public market is required to evaluate subsequent events through the date that the financial statements are issued and must disclose such date. | |
• | All other entities will continue to be required to evaluate subsequent events through the date the financial statements are available to be issued, and must disclose such date |
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• | A rollforward schedule of the allowance for credit losses from the beginning of the reporting period to the end of the reporting period on a portfolio segment basis, with the ending balance further disaggregated on the basis of the impairment method | |
• | For each disaggregated ending balance in item (1) above, the related recorded investment in financing receivables | |
• | The nonaccrual status of financing receivables by class of financing receivables | |
• | Impaired financing receivables by class of financing receivables. |
• | Credit quality indicators of financing receivables at the end of the reporting period by class of financing receivables | |
• | The aging of past due financing receivables at the end of the reporting period by class of financing receivables | |
• | The nature and extent of troubled debt restructurings that occurred during the period by class of financing receivables and their effect on the allowance for credit losses | |
• | The nature and extent of financing receivables modified as troubled debt restructurings within the previous 12 months that defaulted during the reporting period by class of financing receivables and their effect on the allowance for credit losses | |
• | Significant purchases and sales of financing receivables during the reporting period disaggregated by portfolio segment. |
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14. | NEW ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE AS OF DECEMBER 31, 2010 |
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• | An insurance entity should not consider any separate account interests held for the benefit of policy holders in an investment to be the insurer’s interests and should not combine those interests with its general account interest in the same investment when assessing the investment for consolidation, unless the separate account interests are held for the benefit of a related party policy holder as defined in theVariable InterestSubsections of Subtopic810-10Consolidation-Overalland those subsections require the consideration of related parties. | |
• | For the purpose of evaluating whether the retention of specialized accounting for investments in consolidation is appropriate, a separate account arrangement should be considered a subsidiary. | |
• | An insurer is not required to consolidate an investment in which a separate account holds a controlling financial interest if the investment is not or would not be consolidated in the standalone financial statements of the separate account. |
• | Be commensurate with either a)The vendor’s performance to achieve the milestone, or b)The enhancement of the value of the item delivered as a result of a specific outcome resulting from the vendor’s performance to achieve the milestone | |
• | Relate solely to past performance | |
• | Be reasonable relative to all deliverables and payment terms in the arrangement. |
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15. | OTHER INFORMATION — VENEZUELA |
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B) | CONSOLIDATED FINANCIAL STATEMENTS |
1. | DIFFERENCES RELATING TO THE FINANCIAL STATEMENTS PRESENTATION — |
2. | CONSOLIDATED FINANCIAL STATEMENTS UNDERREGULATION S-X — |
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2010 | 2009 | 2008 | ||||||||||
Millions of euros | ||||||||||||
ASSETS | ||||||||||||
Cash and due from banks | 7,435 | 7,568 | 11,862 | |||||||||
Interest-bearing deposits in other banks | 34,714 | 28,350 | 31,831 | |||||||||
Securities purchased under agreements to resell | 2,331 | 3,652 | 6,480 | |||||||||
Trading securities | 66,057 | 72,070 | 75,063 | |||||||||
Investment securities | 66,401 | 68,978 | 53,416 | |||||||||
Net Loans & Leases: | ||||||||||||
Loans and leases net of unearned income | 349,642 | 331,693 | 340,958 | |||||||||
Less: Allowance for loan losses | (9,801 | ) | (9,004 | ) | (7,404 | ) | ||||||
Hedging Derivatives | 3,665 | 3,663 | 3,929 | |||||||||
Premises and equipment, net | 6,605 | 6,353 | 6,462 | |||||||||
Investments in affiliated companies | 4,547 | 2,922 | 1,467 | |||||||||
Intangible assets | 1,058 | 852 | 780 | |||||||||
Due from customers on acceptances | — | — | — | |||||||||
Goodwill in consolidation | 16,047 | 15,128 | 15,634 | |||||||||
Accrual Accounts | 538 | 581 | 383 | |||||||||
Other assets | 12,528 | 10,788 | 8,176 | |||||||||
Total assets | 561,767 | 543,594 | 549,037 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||
Liabilities | ||||||||||||
Bank acceptances outstanding | — | — | — | |||||||||
Demand Deposits | 74,763 | 68,655 | 69,009 | |||||||||
Saving deposits | 51,141 | 50,639 | 46,732 | |||||||||
Time deposits | 148,884 | 152,933 | 166,322 | |||||||||
Due to Bank of Spain | 2 | 10,930 | 37 | |||||||||
Trading account liabilities | 37,212 | 32,830 | 43,009 | |||||||||
Hedging derivatives | 1,704 | 1,306 | 1,226 | |||||||||
Short term borrowings | 63,844 | 68,985 | 61,832 | |||||||||
Long-term debt | 111,251 | 92,843 | 100,147 | |||||||||
Taxes payable | 2,678 | 2,690 | 1,835 | |||||||||
Accounts payable | 6,596 | 5,624 | 7,420 | |||||||||
Accrual accounts | 2,162 | 2,079 | 1,918 | |||||||||
Pension allowance | 5,981 | 6,246 | 6,359 | |||||||||
Other provisions | 2,341 | 2,313 | 2,319 | |||||||||
Others liabilities | 9,032 | 8,054 | 7,242 | |||||||||
Total liabilities | 517,591 | 506,127 | 515,407 | |||||||||
Shareholder’s equity | ||||||||||||
Common stocks | 2,201 | 1,836 | 1,836 | |||||||||
Additional paid-in capital | 17,104 | 12,453 | 12,770 | |||||||||
Dividends | (1,067 | ) | (1,000 | ) | (1,820 | ) | ||||||
Other capital instruments | (553 | ) | (224 | ) | (720 | ) | ||||||
Retained earnings | 25,128 | 23,107 | 20,678 | |||||||||
Total shareholder’s equity | 42,813 | 36,172 | 32,744 | |||||||||
Non-controlling interest | 1,363 | 1,295 | 886 | |||||||||
Total Equity | 44,176 | 37,467 | 33,630 | |||||||||
Total liabilities and equity | 561,767 | 543,594 | 549,037 | |||||||||
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CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED
DECEMBER 31, 2010, 2009 AND 2008
(U.S. GAAP)
2010 | 2009 | 2008 | ||||||||||
Millions of euros | ||||||||||||
Interest Income | ||||||||||||
Interest and fees on loans and leases | 16,448 | 18,670 | 24,141 | |||||||||
Interest on deposits in other banks | 1,326 | 1,489 | 1,722 | |||||||||
Interest on securities purchased under agreements to resell | 123 | 201 | 517 | |||||||||
Interest on investment securities | 3,652 | 3,829 | 4,479 | |||||||||
Total interest income | 21,549 | 24,188 | 30,859 | |||||||||
Interest Expense | ||||||||||||
Interest on deposits | (4,838 | ) | (6,139 | ) | (12,982 | ) | ||||||
Interest on Bank of Spain & Deposit Guarantee Fund | (120 | ) | (79 | ) | (368 | ) | ||||||
Interest on short-term borrowings | (1,283 | ) | (1,504 | ) | (2,168 | ) | ||||||
Interest on long term debt | (1,102 | ) | (1,749 | ) | (3,199 | ) | ||||||
Total interest expense | (7,343 | ) | (9,471 | ) | (18,717 | ) | ||||||
Net Interest Income | 14,206 | 14,718 | 12,142 | |||||||||
Provision for loan losses | (4,563 | ) | (5,199 | ) | (3,956 | ) | ||||||
Net Interest Income after provison for loan losses | 9,643 | 9,519 | 8,186 | |||||||||
Non-interest income | ||||||||||||
Contingent liabilities (collected) | 282 | 260 | 243 | |||||||||
Collection and payments services (collected) | 2,500 | 2,573 | 2,656 | |||||||||
Securities services (collected) | 1,651 | 1,636 | 1,895 | |||||||||
Other transactions (collected) | 949 | 835 | 746 | |||||||||
Ceded to other entities and correspondents (paid) | (545 | ) | (572 | ) | (662 | ) | ||||||
Other transactions (paid) | (254 | ) | (263 | ) | (326 | ) | ||||||
Gains (losses) from: | ||||||||||||
Affiliated companies’ securities | 364 | 122 | 306 | |||||||||
Investment securities | 497 | 231 | 1,578 | |||||||||
Foreign exchange, derivatives and other ,net | 1,174 | 970 | 382 | |||||||||
Other gains (losses) | 3,415 | 3,474 | 3,657 | |||||||||
Total non-interest income | 10,033 | 9,267 | 10,473 | |||||||||
Non-interest expense | ||||||||||||
Salaries and employee benefits | (4,814 | ) | (4,651 | ) | (4,716 | ) | ||||||
Occupancy expense of premises, depreciation and maintenance, net | (1,400 | ) | (1,306 | ) | (1,348 | ) | ||||||
General and administrative expenses | (2,642 | ) | (2,368 | ) | (2,423 | ) | ||||||
Impairment of goodwill | (14 | ) | (388 | ) | — | |||||||
Net provision for specific allowances | (547 | ) | (680 | ) | (1,431 | ) | ||||||
Other expenses | (4,247 | ) | (4,145 | ) | (3,182 | ) | ||||||
Total non-interest expense | (13,664 | ) | (13,539 | ) | (13,100 | ) | ||||||
Income Before Taxes | 6,012 | 5,248 | 5,559 | |||||||||
Income Tax expense | (1,324 | ) | (1,038 | ) | (1,124 | ) | ||||||
Net Income | 4,688 | 4,210 | 4,435 | |||||||||
Less: net income attributed to the non-controlling interests | (389 | ) | (385 | ) | (365 | ) | ||||||
Net income attributed to parent company | 4,299 | 3,825 | 4,070 | |||||||||
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3. | CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY — |
2010 | 2009 | 2008 | ||||||||||
Millions of euros | ||||||||||||
Balance at the begining of the year | 36,172 | 32,744 | 35,384 | |||||||||
Capital increase | 5,015 | — | — | |||||||||
Net income of the year | 4,299 | 3,825 | 4,070 | |||||||||
Interim Dividends | (1,067 | ) | (1,000 | ) | (1,820 | ) | ||||||
Other Comprehensive income | (427 | ) | 863 | (3,481 | ) | |||||||
Foreign currency translation adjust | 1,784 | (76 | ) | (1,001 | ) | |||||||
Unrelaized Gains on Securities | (1,680 | ) | 943 | (2,656 | ) | |||||||
Derivatives Instruments and Hedging activities (SFAS 133) | (531 | ) | (4 | ) | 176 | |||||||
Other variation(*) | (1,179 | ) | (260 | ) | (1,409 | ) | ||||||
Balance at the end of the year | 42,813 | 36,172 | 32,744 | |||||||||
(*) | Includes €558 million and €1,002 million in 2010 and 2008, respectively, corresponding to the final dividend of 2009 and 2007, respectively. |
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C) | MAIN DISCLOSURES REQUIRED BY U.S. ACCOUNTING REGULATIONS FOR BANKS AND ADDITIONAL DISCLOSURES REQUIRED UNDER U.S. GAAP |
As of December 31, 2010 | As of December 31, 2009 | As of December 31, 2008 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Unrealized | Unrealized | Amortized | Fair | Unrealized | Unrealized | Amortized | Fair | Unrealized | Unrealized | |||||||||||||||||||||||||||||||||||||
Cost | Value | Gains | Losses | Cost | Value | Gains | Losses | Cost | Value | Gains | Losses | |||||||||||||||||||||||||||||||||||||
Millions of euros | Millions of euros | Millions of euros | ||||||||||||||||||||||||||||||||||||||||||||||
DEBT SECURITIES - | ||||||||||||||||||||||||||||||||||||||||||||||||
AVAILABLE FOR SALE PORTFOLIO | ||||||||||||||||||||||||||||||||||||||||||||||||
Domestic - | 21,929 | 20,566 | 107 | (1,470 | ) | 24,577 | 24,869 | 487 | (195 | ) | 11,743 | 11,910 | 229 | (62 | ) | |||||||||||||||||||||||||||||||||
Spanish Government | 16,543 | 15,337 | 58 | (1,264 | ) | 18,312 | 18,551 | 309 | (70 | ) | 6,233 | 6,371 | 138 | — | ||||||||||||||||||||||||||||||||||
Other debt securities | 5,386 | 5,229 | 50 | (206 | ) | 6,265 | 6,318 | 178 | (125 | ) | 5,510 | 5,539 | 91 | (62 | ) | |||||||||||||||||||||||||||||||||
Central Banks | — | — | — | — | — | — | — | — | 9 | 9 | — | — | ||||||||||||||||||||||||||||||||||||
Credit institutions | 4,221 | 4,090 | 24 | (156 | ) | 5,097 | 5,202 | 134 | (29 | ) | 4,330 | 4,338 | 44 | (36 | ) | |||||||||||||||||||||||||||||||||
Other issuers | 1,165 | 1,139 | 25 | (50 | ) | 1,168 | 1,116 | 44 | (96 | ) | 1,171 | 1,192 | 47 | (26 | ) | |||||||||||||||||||||||||||||||||
International - | 30,108 | 30,309 | 1,081 | (880 | ) | 31,868 | 32,202 | 1,067 | (733 | ) | 28,108 | 27,920 | 586 | (774 | ) | |||||||||||||||||||||||||||||||||
United States - | 6,850 | 6,832 | 216 | (234 | ) | 6,804 | 6,805 | 174 | (173 | ) | 10,573 | 10,442 | 155 | (286 | ) | |||||||||||||||||||||||||||||||||
U.S. Treasury and other U.S. Government agencies | 579 | 578 | 6 | (8 | ) | 414 | 416 | 4 | (2 | ) | 444 | 444 | — | — | ||||||||||||||||||||||||||||||||||
States and political subdivisions | 187 | 193 | 7 | (1 | ) | 214 | 221 | 7 | — | 382 | 396 | 15 | (1 | ) | ||||||||||||||||||||||||||||||||||
Other debt securities | 6,084 | 6,061 | 203 | (225 | ) | 6,176 | 6,168 | 163 | (171 | ) | 9,747 | 9,602 | 140 | (285 | ) | |||||||||||||||||||||||||||||||||
Central Banks | — | — | — | — | — | — | — | — | 240 | 242 | 13 | (12 | ) | |||||||||||||||||||||||||||||||||||
Credit institutions | 2,982 | 2,873 | 83 | (191 | ) | 2,597 | 2,610 | 50 | (37 | ) | 4,341 | 4,327 | 55 | (70 | ) | |||||||||||||||||||||||||||||||||
Other issuers | 3,102 | 3,188 | 120 | (34 | ) | 3,579 | 3,558 | 113 | (134 | ) | 5,166 | 5,033 | 71 | (204 | ) | |||||||||||||||||||||||||||||||||
Other countries — (*) | 23,258 | 23,477 | 865 | (646 | ) | 25,064 | 25,397 | 893 | (560 | ) | 17,535 | 17,478 | 431 | (488 | ) | |||||||||||||||||||||||||||||||||
Securities of other foreign Governments(**) | 15,733 | 15,958 | 610 | (386 | ) | 17,058 | 17,363 | 697 | (392 | ) | 9,624 | 9,653 | 261 | (232 | ) | |||||||||||||||||||||||||||||||||
Other debt securities | 7,525 | 7,519 | 254 | (261 | ) | 8,006 | 8,034 | 196 | (168 | ) | 7,911 | 7,825 | 170 | (256 | ) | |||||||||||||||||||||||||||||||||
Central Banks | 945 | 945 | 1 | (0 | ) | 1,296 | 1,297 | 1 | — | 1,045 | 1,045 | — | — | |||||||||||||||||||||||||||||||||||
Credit institutions | 4,983 | 4,998 | 205 | (190 | ) | 4,795 | 4,893 | 185 | (87 | ) | 5,934 | 5,958 | 167 | (143 | ) | |||||||||||||||||||||||||||||||||
Other institutions | 1,597 | 1,576 | 49 | (70 | ) | 1,915 | 1,844 | 10 | (81 | ) | 932 | 823 | 3 | (113 | ) | |||||||||||||||||||||||||||||||||
TOTAL AVAILABLE FOR SALE PORTFOLIO | 52,037 | 50,875 | 1,188 | (2,350 | ) | 56,445 | 57,071 | 1,554 | (928 | ) | 39,851 | 39,830 | 815 | (836 | ) | |||||||||||||||||||||||||||||||||
HELD TO MATURITY PORTFOLIO | ||||||||||||||||||||||||||||||||||||||||||||||||
Domestic - | 7,503 | 6,771 | 2 | (734 | ) | 2,626 | 2,624 | 29 | (31 | ) | 2,392 | 2,339 | 7 | (60 | ) | |||||||||||||||||||||||||||||||||
Spanish Government | 6,611 | 5,942 | 2 | (671 | ) | 1,674 | 1,682 | 21 | (13 | ) | 1,412 | 1,412 | 7 | (7 | ) | |||||||||||||||||||||||||||||||||
Other debt securities | 892 | 829 | 0 | (63 | ) | 952 | 942 | 8 | (18 | ) | 980 | 927 | — | (53 | ) | |||||||||||||||||||||||||||||||||
Central Banks | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Credit institutions | 290 | 277 | — | (13 | ) | 342 | 344 | 6 | (4 | ) | 342 | 344 | — | (10 | ) | |||||||||||||||||||||||||||||||||
Other institutions | 602 | 552 | — | (50 | ) | 610 | 598 | 2 | (14 | ) | 638 | 583 | — | (43 | ) | |||||||||||||||||||||||||||||||||
International - | 2,443 | 2,418 | 16 | (41 | ) | 2,811 | 2,869 | 71 | (13 | ) | 2,890 | 2,882 | 25 | (33 | ) | |||||||||||||||||||||||||||||||||
Securities of other foreign Governments | 2,181 | 2,171 | 10 | (20 | ) | 2,399 | 2,456 | 64 | (7 | ) | 2,432 | 2,437 | 22 | (17 | ) | |||||||||||||||||||||||||||||||||
Other debt securities. Credit Institutions | 262 | 247 | 6 | (21 | ) | 412 | 413 | 7 | (6 | ) | 458 | 445 | 3 | (16 | ) | |||||||||||||||||||||||||||||||||
TOTAL HELD TO MATURITY PORTFOLIO | 9,946 | 9,189 | 18 | (775 | ) | 5,437 | 5,493 | 100 | (44 | ) | 5,282 | 5,221 | 32 | (93 | ) | |||||||||||||||||||||||||||||||||
TOTAL DEBT SECURITIES | 61,983 | 60,064 | 1,206 | (3,125 | ) | 61,882 | 62,564 | 1,654 | (972 | ) | 45,133 | 45,051 | 847 | (929 | ) | |||||||||||||||||||||||||||||||||
(*) | Includes Mexico. As of December 31, 2010 the total fair value of Mexican debt securities amounted to €10,547 million of which Mexican Government and other government agency debt securities amounted to € 9,858 million and credit institutions amounted to €579 million. | |
(**) | Consists mainly of securities held by our subsidiaries issued by the Governments of the countries where they operate. As of December 31, 2010 the fair value of Securities of other foreign Governments included €9,858 million of Mexican Government and other government agency debt securities. |
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As of December 31, 2010 | As of December 31, 2009 | As of December 31, 2008 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Unrealized | Unrealized | Amortized | Fair | Unrealized | Unrealized | Amortized | Fair | Unrealized | Unrealized | |||||||||||||||||||||||||||||||||||||
Cost | Value | Gains | Losses | Cost | Value | Gains | Losses | Cost | Value | Gains | Losses | |||||||||||||||||||||||||||||||||||||
(Millions of euros) | (Millions of euros) | (Millions of euros) | ||||||||||||||||||||||||||||||||||||||||||||||
EQUITY SECURITIES - | ||||||||||||||||||||||||||||||||||||||||||||||||
AVAILABLE FOR SALE PORTFOLIO | ||||||||||||||||||||||||||||||||||||||||||||||||
Domestic - | 3,403 | 4,608 | 1,212 | (7 | ) | 3,682 | 5,408 | 1,738 | (12 | ) | 3,581 | 4,675 | 1,189 | (96 | ) | |||||||||||||||||||||||||||||||||
Equity listed | 3,378 | 4,583 | 1,212 | (7 | ) | 3,656 | 5,383 | 1,738 | (12 | ) | 3,545 | 4,639 | 1,189 | (95 | ) | |||||||||||||||||||||||||||||||||
Equity Unlisted | 25 | 25 | — | — | 25 | 25 | — | — | 37 | 36 | — | (1 | ) | |||||||||||||||||||||||||||||||||||
International - | 927 | 973 | 71 | (25 | ) | 948 | 1,041 | 121 | (28 | ) | 3,407 | 3,274 | 8 | (141 | ) | |||||||||||||||||||||||||||||||||
United States - | 605 | 662 | 56 | — | 641 | 737 | 104 | (8 | ) | 664 | 654 | — | (11 | ) | ||||||||||||||||||||||||||||||||||
Equity listed | 11 | 13 | 1 | — | 16 | 8 | — | (8 | ) | 38 | 28 | — | (11 | ) | ||||||||||||||||||||||||||||||||||
Equity Unlisted | 594 | 649 | 55 | — | 625 | 729 | 104 | (0 | ) | 626 | 626 | — | (0 | ) | ||||||||||||||||||||||||||||||||||
Other countries - | 322 | 311 | 15 | (25 | ) | 307 | 304 | 17 | (20 | ) | 2,743 | 2,620 | 8 | (130 | ) | |||||||||||||||||||||||||||||||||
Equity listed | 258 | 240 | 7 | (25 | ) | 250 | 242 | 12 | (20 | ) | 2,545 | 2,416 | 1 | (130 | ) | |||||||||||||||||||||||||||||||||
Equity Unlisted | 64 | 71 | 8 | (0 | ) | 57 | 62 | 5 | (0 | ) | 198 | 205 | 7 | (0 | ) | |||||||||||||||||||||||||||||||||
TOTAL AVAILABLE FOR SALE PORTFOLIO | 4,330 | 5,581 | 1,283 | (32 | ) | 4,630 | 6,450 | 1,860 | (40 | ) | 6,988 | 7,949 | 1,197 | (237 | ) | |||||||||||||||||||||||||||||||||
TOTAL EQUITY SECURITIES | 4,330 | 5,581 | 1,283 | (32 | ) | 4,630 | 6,450 | 1,860 | (40 | ) | 6,988 | 7,949 | 1,197 | (237 | ) | |||||||||||||||||||||||||||||||||
TOTAL INVESTMENT SECURITIES | 66,313 | 65,645 | 2,489 | (3,156 | ) | 66,512 | 69,014 | 3,514 | (1,012 | ) | 52,122 | 53,001 | 2,044 | (1,166 | ) | |||||||||||||||||||||||||||||||||
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As of December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Millions of euros | ||||||||||||
Equity securities | (429 | ) | (226 | ) | (26 | ) | ||||||
Debt securities | (190 | ) | (223 | ) | (176 | ) | ||||||
(1) Total impairmentsother-than-temporary (charged to income under both GAAP) | (619 | ) | (449 | ) | (202 | ) | ||||||
Equity securities | (32 | ) | (40 | ) | (237 | ) | ||||||
Debt securities | (3,125 | ) | (972 | ) | (929 | ) | ||||||
(2) Total temporary unrealized losses | (3,157 | ) | (1,012 | ) | (1,166 | ) | ||||||
(1)+(2) Total unrecognized losses | (3,776 | ) | (1,461 | ) | (1,368 | ) | ||||||
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December 31, 2010 | ||||||||||||||||||||
Carrying Amount | ||||||||||||||||||||
Due After | Due After | |||||||||||||||||||
Due in One | One Year to | Five Years to | Due After | |||||||||||||||||
Year or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
Millions of euros | ||||||||||||||||||||
AVAILABLE-FOR-SALE PORTFOLIO(*) | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 982 | 8,650 | 3,197 | 2,507 | 15,337 | |||||||||||||||
Other debt securities | 1,303 | 2,613 | 438 | 876 | 5,229 | |||||||||||||||
Total Domestic | 2,285 | 11,263 | 3,635 | 3,383 | 20,566 | |||||||||||||||
International | ||||||||||||||||||||
United States | 525 | 2,971 | 2,340 | 995 | 6,832 | |||||||||||||||
U.S. Treasury and other U.S. government agencies | 108 | 195 | 65 | 210 | 578 | |||||||||||||||
States and political subdivisions | 29 | 93 | 59 | 12 | 193 | |||||||||||||||
Other U.S. securities | 389 | 2,683 | 2,216 | 773 | 6,061 | |||||||||||||||
Other countries | 3,075 | 11,436 | 3,571 | 5,395 | 23,477 | |||||||||||||||
Securities of other foreign governments | 690 | 9,156 | 2,547 | 3,565 | 15,958 | |||||||||||||||
Other debt securities of other countries | 2,385 | 2,280 | 1,024 | 1,830 | 7,519 | |||||||||||||||
Total International | 3,601 | 14,407 | 5,911 | 6,390 | 30,309 | |||||||||||||||
TOTALAVAILABLE-FOR-SALE | 5,886 | 25,670 | 9,546 | 9,773 | 50,875 | |||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 75 | 98 | 3,107 | 3,330 | 6,610 | |||||||||||||||
Other debt securities | 38 | 645 | 210 | — | 893 | |||||||||||||||
Total Domestic | 113 | 743 | 3,317 | 3,330 | 7,503 | |||||||||||||||
Total International | 616 | 1,392 | 209 | 226 | 2,443 | |||||||||||||||
TOTALHELD-TO-MATURITY | 729 | 2,135 | 3,526 | 3,556 | 9,946 | |||||||||||||||
TOTAL DEBT SECURITIES | 6,615 | 27,805 | 13,072 | 13,329 | 60,821 | |||||||||||||||
December 31, 2010 | ||||||||||||||||||||
Market Value | ||||||||||||||||||||
Due After | Due After | |||||||||||||||||||
Due in One | One Year to | Five Years to | Due After | |||||||||||||||||
Year or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
Millions of euros | ||||||||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 76 | 98 | 2.859 | 2.909 | 5.942 | |||||||||||||||
Other debt securities | 37 | 612 | 180 | — | 829 | |||||||||||||||
Total Domestic | 113 | 710 | 3.039 | 2.909 | 6.771 | |||||||||||||||
Total International | 617 | 1.372 | 202 | 227 | 2.418 | |||||||||||||||
TOTALHELD-TO-MATURITY | 730 | 2.082 | 3.241 | 3.136 | 9.189 | |||||||||||||||
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As of December 31, 2009 | ||||||||||||||||||||
Carrying Amount | ||||||||||||||||||||
Due After | Due After | |||||||||||||||||||
Due in One | One Year to | Five Years to | Due After | |||||||||||||||||
Year or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
Millions of euros | ||||||||||||||||||||
AVAILABLE-FOR-SALE PORTFOLIO(*) | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 127 | 10,536 | 5,116 | 2,772 | 18,551 | |||||||||||||||
Other debt securities | 576 | 4,422 | 283 | 1,037 | 6,318 | |||||||||||||||
Total Domestic | 703 | 14,958 | 5,399 | 3,809 | 24,869 | |||||||||||||||
International | ||||||||||||||||||||
United States | 838 | 2,586 | 1,597 | 1,784 | 6,805 | |||||||||||||||
U.S. Treasury and other U.S. government agencies | 223 | 53 | — | 140 | 416 | |||||||||||||||
States and political subdivisions | 36 | 84 | 79 | 22 | 221 | |||||||||||||||
Other U.S. securities | 579 | 2,449 | 1,518 | 1,622 | 6,168 | |||||||||||||||
Other countries | 2,254 | 9,318 | 3,614 | 10,211 | 25,397 | |||||||||||||||
Securities of other foreign governments | 934 | 5,929 | 2,454 | 8,046 | 17,363 | |||||||||||||||
Other debt securities of other countries | 1,320 | 3,389 | 1,160 | 2,165 | 8,034 | |||||||||||||||
Total International | 3,092 | 11,904 | 5,211 | 11,995 | 32,202 | |||||||||||||||
TOTALAVAILABLE-FOR-SALE | 3,795 | 26,862 | 10,610 | 15,804 | 57,071 | |||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 5 | 181 | 1,425 | 63 | 1,674 | |||||||||||||||
Other debt securities | 50 | 486 | 294 | 122 | 952 | |||||||||||||||
Total Domestic | 55 | 667 | 1,719 | 185 | 2,626 | |||||||||||||||
Total International | 215 | 790 | 1,590 | 216 | 2,811 | |||||||||||||||
TOTALHELD-TO-MATURITY | 270 | 1,457 | 3,309 | 401 | 5,437 | |||||||||||||||
TOTAL DEBT SECURITIES | 4,065 | 28,319 | 13,919 | 16,205 | 62,508 | |||||||||||||||
As of December 31, 2009 | ||||||||||||||||||||
Market Value | ||||||||||||||||||||
Due After | Due After | |||||||||||||||||||
Due in One | One Year to | Five Years to | Due After | |||||||||||||||||
Year or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
Millions of euros | ||||||||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 5 | 181 | 1,433 | 63 | 1,682 | |||||||||||||||
Other debt securities | 50 | 482 | 287 | 123 | 942 | |||||||||||||||
Total Domestic | 55 | 663 | 1,720 | 186 | 2,624 | |||||||||||||||
Total International | 217 | 808 | 1,623 | 221 | 2,869 | |||||||||||||||
TOTALHELD-TO-MATURITY | 272 | 1,471 | 3,343 | 407 | 5,493 | |||||||||||||||
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December 31, 2008 | ||||||||||||||||||||
Carrying Amount | ||||||||||||||||||||
Due After | Due After | |||||||||||||||||||
Due in One | One Year to | Five Years to | Due After | |||||||||||||||||
Year or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
Millions of euros | ||||||||||||||||||||
AVAILABLE-FOR-SALE PORTFOLIO(*) | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 119 | 6,694 | 4,003 | 3,829 | 14,645 | |||||||||||||||
Other debt securities | 1,067 | 3,732 | 278 | 835 | 5,912 | |||||||||||||||
Total Domestic | 1,186 | 10,426 | 4,281 | 4,664 | 20,557 | |||||||||||||||
International | ||||||||||||||||||||
United States | 985 | 3,083 | 1,784 | 1,410 | 7,262 | |||||||||||||||
U.S. Treasury and other U.S. government agencies | 160 | 18 | — | 245 | 423 | |||||||||||||||
States and political subdivisions | 70 | 145 | 159 | 52 | 426 | |||||||||||||||
Other U.S. securities | 755 | 2,920 | 1,625 | 1,113 | 6,413 | |||||||||||||||
Other countries | 2,603 | 9,799 | 5,438 | 3,960 | 21,800 | |||||||||||||||
Securities of other foreign governments | 666 | 7,483 | 4,018 | 2,088 | 14,255 | |||||||||||||||
Other debt securities of other countries | 1,937 | 2,316 | 1,420 | 1,872 | 7,545 | |||||||||||||||
Total International | 3,588 | 12,882 | 7,222 | 5,370 | 29,062 | |||||||||||||||
TOTALAVAILABLE-FOR-SALE | 4,774 | 23,308 | 11,503 | 10,034 | 49,619 | |||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 110 | 118 | 1,053 | 54 | 1,335 | |||||||||||||||
Other debt securities | 54 | 212 | 550 | 128 | 944 | |||||||||||||||
Total Domestic | 164 | 330 | 1,603 | 182 | 2,279 | |||||||||||||||
Total International | 85 | 918 | 1,594 | 223 | 2,820 | |||||||||||||||
TOTALHELD-TO-MATURITY | 249 | 1,248 | 3,197 | 405 | 5,099 | |||||||||||||||
TOTAL DEBT SECURITIES | 5,023 | 24,556 | 14,700 | 10,439 | 54,718 | |||||||||||||||
December 31, 2008 | ||||||||||||||||||||
Market Value | ||||||||||||||||||||
Due After | Due After | |||||||||||||||||||
Due in One | One Year to | Five Years to | Due After | |||||||||||||||||
Year or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
Millions of euros | ||||||||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 110 | 119 | 1,055 | 54 | 1,338 | |||||||||||||||
Other debt securities | 52 | 203 | 525 | 122 | 902 | |||||||||||||||
Total Domestic | 162 | 322 | 1,580 | 176 | 2,240 | |||||||||||||||
Total International | 83 | 924 | 1,607 | 226 | 2,840 | |||||||||||||||
TOTALHELD-TO-MATURITY | 245 | 1,246 | 3,187 | 402 | 5,080 | |||||||||||||||
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(*) | As we describe in Note 2.2.1 carrying amount and market value are the same for “Trading portfolio” and “Available for sale portfolio” |
• | Debt securities: fair value is considered to be the present value of the cash flows, using market interest rates (discounted cash flows). | |
• | Equity securities: in the cases of equity instruments whose fair value cannot be determined in a sufficiently objective manner are measured at acquisition cost. In some cases in which trigger events indicate that a specific investment could be impaired, a specific valuation of fair value is used and all available factors are considered by management to determine the fair value under both GAAP. |
2. | LOANS AND ACCOUNTING BY CREDITORS FOR IMPAIRMENT OF A LOAN — |
As of December 31, | ||||
2010 | ||||
Millions of euros | ||||
Impaired loans requiring no reserve | 281 | |||
Impaired loans requiring valuation allowance | 15,080 | |||
Total impaired loans | 15,361 | |||
Valuation allowance on impaired loans | 5,482 | |||
As December 31, | ||||
2010 | ||||
Millions of euros | ||||
Interest revenue that would have been recorded if accruing | 1,717 | |||
Net interest revenue recorded | 203 |
3. | INVESTMENTS IN AND INDEBTEDNESS OF AND TO AFFILIATES — |
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Table of Contents
4. | DEPOSITS — |
5. | SHORT-TERM BORROWINGS — |
As of December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||
(In millions of euro, except percentages) | ||||||||||||||||||||||||
Securities sold under agreements to repurchase (principally Spanish Treasury bills): | ||||||||||||||||||||||||
As of December 31, | 39,587 | 2.03 | % | 26,171 | 2.43 | % | 28,206 | 4.66 | % | |||||||||||||||
Average during year | 31,056 | 2.17 | % | 30,811 | 2.71 | % | 34,729 | 5.62 | % | |||||||||||||||
Maximum quarter-end balance | 39,587 | — | 28,849 | — | 34,202 | — | ||||||||||||||||||
Bank promissory notes: | ||||||||||||||||||||||||
As of December 31, | 13,215 | 0.91 | % | 29,578 | 0.50 | % | 20,061 | 3.70 | % | |||||||||||||||
Average during year | 24,405 | 0.55 | % | 27,434 | 1.28 | % | 15,661 | 4.57 | % | |||||||||||||||
Maximum quarter-end balance | 28,937 | — | 30,919 | — | 20,061 | — | ||||||||||||||||||
Bonds and Subordinated debt : | ||||||||||||||||||||||||
As of December 31 , | 11,041 | 2.57 | % | 13,236 | 2.54 | % | 13,565 | 4.66 | % | |||||||||||||||
Average during year | 10,825 | 3.20 | % | 14,820 | 3.20 | % | 12,447 | 5.18 | % | |||||||||||||||
Maximum quarter-end balance | 13,184 | — | 15,609 | — | 15,822 | — | ||||||||||||||||||
Total short-term borrowings at December 31 | 63,844 | 1.89 | % | 68,985 | 1.62 | % | 61,832 | 4.35 | % | |||||||||||||||
6. | LONG TERM DEBT — |
7. | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES — |
7.1. | Objectives for the holding of positions in derivatives and strategies for the achievement of these objectives |
7.1.1. | Risk Management Policies |
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Table of Contents
7.1.2. | Transactions whose risks are hedged for U.S. GAAP purposes |
7.2. | Accounting for Derivative Instruments and Hedging Activities |
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Table of Contents
7.3. | Additional disclosures required by U.S. GAAP: Fair Value Methods |
8. | PENSION LIABILITIES — |
9. | EMPLOYERS’ DISCLOSURES ABOUT POSTRETIREMENT BENEFIT PLAN ASSETS(ASC 715-20) |
• | Fixed income as the only category of allowed assets. Preference for government bonds. | |
• | No currency risk allowed in asset allocation | |
• | Requirement of specific levels of liquidity in order to meet the expected cash flow liabilities. | |
• | Systematized controls in duration, limiting the asset-liabilities duration gaps. | |
• | Standardized limitation in inflation risk. |
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Table of Contents
10. | DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (ASC825-10) — |
11. | SEGMENT INFORMATION — |
12. | BUSINESS COMBINATION IN 2010 — |
13. | “UNRECOGNIZED TAX BENEFITS” (ASC605-15) — |
Millions of euros | ||||
Total unrecognized tax benefits as of December 31, 2008 | 1,136 | |||
Net amount of increases for current year’s tax positions | 3 | |||
Gross amount of increases for prior years’ tax positions | 113 | |||
Gross amount of decreases for prior years’ tax positions | (9 | ) | ||
Foreign exchange, acquisitions and others | (191 | ) | ||
Total unrecognized tax benefits as of December 31, 2009 | 1,052 | |||
Net amount of increases for current year’s tax positions | 7 | |||
Gross amount of increases for prior years’ tax positions | 77 | |||
Gross amount of decreases for prior years’ tax positions | (7 | ) | ||
Foreign exchange, acquisitions and others | (38 | ) | ||
Total unrecognized tax benefits as of December 31, 2010 | 1,091 |
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Table of Contents
Jurisdiction | Tax Year | |||
Spain | 2004 - 2010 | |||
United States | 2005 - 2010 | |||
Puerto Rico | 2006 - 2010 | |||
Peru | 2006 - 2010 | |||
Colombia | 2005 - 2010 | |||
Argentina | 2005 - 2010 | |||
Venezuela | 2004 - 2010 | |||
Mexico | 2005 - 2010 |
14. | DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES(ASC 815-10-50 — DERIVATIVES AND HEDGING) — |
15. | DISCLOSURES ABOUT THE CREDIT QUALITY OF FINANCING RECEIVABLES AND THE ALLOWANCE FOR CREDIT LOSSES (ASC 310) — |
16. | FINANCIAL STATEMENTS OF GUARANTORS AND ISSUERS OF GUARANTEED SECURITIES REGISTERED — |
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Table of Contents
2010 | 2009 | |||||||
Millions of euros | ||||||||
ASSETS | ||||||||
CASH AND BALANCES WITH CENTRAL BANKS | 4,165 | 3,286 | ||||||
FINANCIAL ASSETS HELD FOR TRADING | 51,348 | 57,532 | ||||||
Loans and advances to credit institutions | — | — | ||||||
Loans and advances to customers | — | — | ||||||
Debt securities | 13,016 | 22,833 | ||||||
Equity instruments | 4,608 | 4,996 | ||||||
Trading derivatives | 33,724 | 29,703 | ||||||
Memorandum item: Loaned or advanced as collateral | 8,669 | 12,665 | ||||||
OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | — | — | ||||||
Loans and advances to credit institutions | — | — | ||||||
Loans and advances to customers | — | — | ||||||
Debt securities | — | — | ||||||
Equity instruments | — | — | ||||||
Memorandum item: Loaned or advanced as collateral | — | — | ||||||
AVAILABLE-FOR-SALE FINANCIAL ASSETS | 26,712 | 35,964 | ||||||
Debt securities | 22,131 | 30,610 | ||||||
Equity instruments | 4,581 | 5,354 | ||||||
Memorandum item: Loaned or advanced as collateral | 5,901 | 23,777 | ||||||
LOANS AND RECEIVABLES | 264,278 | 256,355 | ||||||
Loans and advances to credit institutions | 28,882 | 27,863 | ||||||
Loans and advances to customers | 234,031 | 228,491 | ||||||
Debt securities | 1,365 | 1 | ||||||
Memorandum item: Loaned or advanced as collateral | 42,333 | 40,040 | ||||||
HELD-TO-MATURITY INVESTMENTS | 9,946 | 5,437 | ||||||
Memorandum item: Loaned or advanced as collateral | — | 1,178 | ||||||
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 40 | — | ||||||
HEDGING DERIVATIVES | 2,988 | 3,082 | ||||||
NON-CURRENT ASSETS HELD FOR SALE | 958 | 570 | ||||||
INVESTMENTS IN ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 24,368 | 22,120 | ||||||
Associates | 3,612 | 2,296 | ||||||
Jointly controlled entities | 14 | 17 | ||||||
Subsidiaries | 20,742 | 19,807 | ||||||
INSURANCE CONTRACTS LINKED TO PENSIONS | 1,847 | 1,883 | ||||||
TANGIBLE ASSETS | 1,459 | 1,464 | ||||||
Property, plants and equipment | 1,458 | 1,461 | ||||||
For own use | 1,458 | 1,461 | ||||||
Other assets leased out under an operating lease | — | — | ||||||
Investment properties | 1 | 3 | ||||||
Memorandum item: Loaned or advanced as collateral | — | — | ||||||
INTANGIBLE ASSETS | 410 | 246 | ||||||
Goodwill | — | — | ||||||
Other intangible assets | 410 | 246 | ||||||
TAX ASSETS | 3,161 | 3,188 | ||||||
Current | 324 | 448 | ||||||
Deferred | 2,837 | 2,740 | ||||||
OTHER ASSETS | 431 | 718 | ||||||
TOTAL ASSETS | 392,111 | 391,845 | ||||||
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2010 | 2009 | |||||||
Millions of euros | ||||||||
LIABILITIES AND EQUITY | ||||||||
FINANCIAL LIABILITIES HELD FOR TRADING | 35,680 | 31,943 | ||||||
Deposits from central banks | — | — | ||||||
Deposits from credit institutions | — | — | ||||||
Customer deposits | — | — | ||||||
Debt certificates | — | — | ||||||
Trading derivatives | 32,294 | 28,577 | ||||||
Short positions | 3,386 | 3,366 | ||||||
Other financial liabilities | — | — | ||||||
OTHER FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | — | — | ||||||
Deposits from central banks | — | — | ||||||
Deposits from credit institutions | — | — | ||||||
Customer deposits | — | — | ||||||
Debt certificates | — | — | ||||||
Subordinated liabilities | — | — | ||||||
Other financial liabilities | — | — | ||||||
FINANCIAL LIABILITIES AT AMORTIZED COST | 320,592 | 328,389 | ||||||
Deposits from central banks | 10,867 | 20,376 | ||||||
Deposits from credit institutions | 42,015 | 40,201 | ||||||
Customer deposits | 194,079 | 180,407 | ||||||
Debt certificates | 56,007 | 69,453 | ||||||
Subordinated liabilities | 13,099 | 14,481 | ||||||
Other financial liabilities | 4,525 | 3,471 | ||||||
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | (2 | ) | — | |||||
HEDGING DERIVATIVES | 1,391 | 1,014 | ||||||
LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | — | — | ||||||
PROVISIONS | 6,613 | 6,790 | ||||||
Provisions for pensions and similar obligations | 5,177 | 5,426 | ||||||
Provisions for taxes and other legal contingencies | — | — | ||||||
Provisions for contingent exposures and commitments | 177 | 201 | ||||||
Other provisions | 1,259 | 1,163 | ||||||
TAX LIABILITIES | 488 | 715 | ||||||
Current | — | — | ||||||
Deferred | 488 | 715 | ||||||
OTHER LIABILITIES | 1,192 | 1,317 | ||||||
TOTAL LIABILITIES | 365,954 | 370,168 | ||||||
STOCKHOLDERS’ FUNDS | 26,183 | 20,034 | ||||||
Common Stock | 2,201 | 1,837 | ||||||
Issued | 2,201 | 1,837 | ||||||
Unpaid and uncalled(-) | — | — | ||||||
Share premium | 17,104 | 12,453 | ||||||
Reserves | 5,114 | 3,893 | ||||||
Other equity instruments | 23 | 10 | ||||||
Equity component of compound financial instruments | — | — | ||||||
Other equity instruments | 23 | 10 | ||||||
Less: Treasury stock | (84 | ) | (128 | ) | ||||
Income attributed | 2,904 | 2,981 | ||||||
Less: Dividends and remuneration | (1,079 | ) | (1,012 | ) | ||||
VALUATION ADJUSTMENTS | (26 | ) | 1,643 | |||||
Available-for-sale financial assets | 39 | 1,567 | ||||||
Cash flow hedging | (62 | ) | 80 | |||||
Hedging of net investment in foreign transactions | — | — | ||||||
Exchange differences | (3 | ) | (4 | ) | ||||
Non-current assetsheld-for-sale | — | — | ||||||
Other valuation adjustments | — | — | ||||||
TOTAL EQUITY | 26,157 | 21,677 | ||||||
TOTAL LIABILITIES AND EQUITY | 392,111 | 391,845 | ||||||
Memorandum Item | 2010 | 2009 | ||||||
Millions of euros | ||||||||
CONTINGENT EXPOSURES | 57,764 | 58,174 | ||||||
CONTINGENT COMMITMENTS | 58,885 | 64,428 | ||||||
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2010 | 2009 | |||||||
Millions of euros | ||||||||
INTEREST AND SIMILAR INCOME | 8,759 | 11,420 | ||||||
INTEREST AND SIMILAR EXPENSES | (3,718 | ) | (5,330 | ) | ||||
NET INTEREST INCOME | 5,041 | 6,090 | ||||||
DIVIDEND INCOME | 2,129 | 1,773 | ||||||
FEE AND COMMISSION INCOME | 1,806 | 1,948 | ||||||
FEE AND COMMISSION EXPENSES | (270 | ) | (303 | ) | ||||
NET GAINS (LOSSES) ON FINANCIAL ASSETS AND LIABILITIES | 738 | 96 | ||||||
Financial instruments held for trading | 256 | (133 | ) | |||||
Other financial instruments at fair value through profit or loss | — | — | ||||||
Other financial instruments not at fair value through profit or loss | 482 | 229 | ||||||
Rest | — | — | ||||||
EXCHANGE DIFFERENCES (NET) | 112 | 259 | ||||||
OTHER OPERATING INCOME | 102 | 81 | ||||||
OTHER OPERATING EXPENSES | (106 | ) | (98 | ) | ||||
GROSS INCOME | 9,552 | 9,846 | ||||||
ADMINISTRATION COSTS | (3,409 | ) | (3,337 | ) | ||||
Personnel expenses | (2,202 | ) | (2,251 | ) | ||||
General and administrative expenses | (1,207 | ) | (1,086 | ) | ||||
DEPRECIATION AND AMORTIZATION | (276 | ) | (243 | ) | ||||
PROVISIONS (NET) | (405 | ) | (269 | ) | ||||
IMPAIRMENT LOSSES ON FINANCIAL ASSETS (NET) | (1,925 | ) | (1,698 | ) | ||||
Loans and receivables | (1,794 | ) | (1,518 | ) | ||||
Other financial instruments not at fair value through profit or loss | (131 | ) | (180 | ) | ||||
NET OPERATING INCOME | 3,537 | 4,299 | ||||||
IMPAIRMENT LOSSES ON OTHER ASSETS (NET) | (258 | ) | (1,746 | ) | ||||
Goodwill and other intangible assets | — | — | ||||||
Other assets | (258 | ) | (1,746 | ) | ||||
GAINS (LOSSES) ON DERECOGNIZED ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE | 5 | 3 | ||||||
NEGATIVE GOODWILL | — | — | ||||||
GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS | 129 | 892 | ||||||
INCOME BEFORE TAX | 3,413 | 3,448 | ||||||
INCOME TAX | (509 | ) | (467 | ) | ||||
INCOME FROM CONTINUING TRANSACTIONS | 2,904 | 2,981 | ||||||
INCOME FROM DISCONTINUED TRANSACTIONS (NET) | — | — | ||||||
NET INCOME | 2,904 | 2,981 | ||||||
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2010 | 2009 | |||||||
Millions of euros | ||||||||
NET INCOME RECOGNIZED IN INCOME STATEMENT | 2,904 | 2,981 | ||||||
OTHER RECOGNIZED INCOME (EXPENSES) | (1,669 | ) | 492 | |||||
Available-for-sale financial assets | (2,038 | ) | 1,028 | |||||
Valuation gains/(losses) | (1,756 | ) | 1,045 | |||||
Amounts removed to income statement | (282 | ) | (17 | ) | ||||
Reclassifications | — | — | ||||||
Cash flow hedging | (190 | ) | (85 | ) | ||||
Valuation gains/(losses) | (159 | ) | (80 | ) | ||||
Amounts removed to income statement | (31 | ) | (5 | ) | ||||
Amounts removed to the initial carrying amount of the hedged items | — | — | ||||||
Reclassifications | — | — | ||||||
Hedging of net investment in foreign transactions | — | — | ||||||
Valuation gains/(losses) | — | — | ||||||
Amounts removed to income statement | — | — | ||||||
Reclassifications | — | — | ||||||
Exchange differences | — | (79 | ) | |||||
Valuation gains/(losses) | (4 | ) | (6 | ) | ||||
Amounts removed to income statement | 4 | (73 | ) | |||||
Reclassifications | — | — | ||||||
Non-current assets held for sale | — | — | ||||||
Valuation gains/(losses) | — | — | ||||||
Amounts removed to income statement | — | — | ||||||
Reclassifications | — | — | ||||||
Actuarial gains and losses in post-employment plans | — | — | ||||||
Rest of recognized income and expenses | — | — | ||||||
Income tax | 559 | (372 | ) | |||||
TOTAL RECOGNIZED INCOME/EXPENSES | 1,235 | 3,473 | ||||||
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Total Equity Attributed to the Parent Company | ||||||||||||||||||||||||||||||||||||||||
Stockholders’ Funds | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Reserves | Other | Less: | Dividends | Total | ||||||||||||||||||||||||||||||||||||
Common | Share | (Accumulated | Equity | Treasury | Profit for | and | Stockholders’ | Valuation | Total | |||||||||||||||||||||||||||||||
Stock | Premium | Losses) | Instruments | Stock | the Year | Remunerations | Funds | Adjustments | Equity | |||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2010 | 1,837 | 12,453 | 3,893 | 10 | (128 | ) | 2,981 | (1,012 | ) | 20,034 | 1,643 | 21,677 | ||||||||||||||||||||||||||||
Effect of changes in accounting policies | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Effect of correction of errors | ||||||||||||||||||||||||||||||||||||||||
Adjusted initial balance | 1,837 | 12,453 | 3,893 | 10 | (128 | ) | 2,981 | (1,012 | ) | 20,034 | 1,643 | 21,677 | ||||||||||||||||||||||||||||
Total income/expense recognized | — | — | — | — | — | 2,904 | — | 2,904 | (1,669 | ) | 1,235 | |||||||||||||||||||||||||||||
Other changes in equity | 364 | 4,651 | 1,221 | 13 | 44 | (2,981 | ) | (67 | ) | 3,245 | — | 3,245 | ||||||||||||||||||||||||||||
Common stock increase | 364 | 4,651 | — | — | — | — | — | 5,015 | — | 5,015 | ||||||||||||||||||||||||||||||
Common stock reduction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | 13 | — | — | — | 13 | — | 13 | ||||||||||||||||||||||||||||||
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | ——— | — | — | ||||||||||||||||||||||||||||||
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Dividend distribution | — | — | — | — | — | (562 | ) | (1,079 | ) | (1,641 | ) | — | (1,641 | ) | ||||||||||||||||||||||||||
Transactions including treasury stock and other equity instruments (net) | — | — | (88 | ) | — | 44 | — | — | (44 | ) | — | (44 | ) | |||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 1,407 | — | — | (2,419 | ) | 1,012 | — | — | — | |||||||||||||||||||||||||||||
Increase/Reduction due to business combinations | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Rest of increases/reductions in total equity | — | — | (98 | ) | — | — | — | — | (98 | ) | — | (98 | ) | |||||||||||||||||||||||||||
Balances as of December 31, 2010 | 2,201 | 17,104 | 5,114 | 23 | (84 | ) | 2,904 | (1,079 | ) | 26,183 | (26 | ) | 26,157 | |||||||||||||||||||||||||||
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ARGENTARIA, S.A.
STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
Total Equity Attributed to the Parent Company | ||||||||||||||||||||||||||||||||||||||||
Stockholders’ Funds | ||||||||||||||||||||||||||||||||||||||||
Reserves | Other | Less: | Less: | |||||||||||||||||||||||||||||||||||||
Common | Share | (Accumulated | Equity | Treasury | Profit for | Dividends | Total | Valuation | Total | |||||||||||||||||||||||||||||||
Stock | Premium | Losses) | Instruments | Stock | the Year | and Remunerations | Stockholders’ Funds | Adjustments | Equity | |||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||
Balances as of January 1, 2009 | 1,837 | 12,770 | 3,070 | 71 | (143 | ) | 2,835 | (1,878 | ) | 18,562 | 1,151 | 19,713 | ||||||||||||||||||||||||||||
Effect of changes in accounting policies | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Effect of correction of errors | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Adjusted initial balance | 1,837 | 12,770 | 3,070 | 71 | (143 | ) | 2,835 | (1,878 | ) | 18,562 | 1,151 | 19,713 | ||||||||||||||||||||||||||||
Total income/expense recognized | — | — | — | — | — | 2,981 | — | 2,981 | 492 | 3,473 | ||||||||||||||||||||||||||||||
Other changes in equity | — | (317 | ) | 823 | (61 | ) | 15 | (2,835 | ) | 866 | (1,509 | ) | — | (1,509 | ) | |||||||||||||||||||||||||
Common stock increase | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Common stock reduction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | 5 | — | — | — | 5 | — | 5 | ||||||||||||||||||||||||||||||
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Dividend distribution | — | — | — | — | — | — | (1,012 | ) | (1,012 | ) | — | (1,012 | ) | |||||||||||||||||||||||||||
Transactions including treasury stock and other equity instruments (net) | — | — | (99 | ) | — | 15 | — | — | (84 | ) | — | (84 | ) | |||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 957 | — | — | (2,835 | ) | 1,878 | — | — | — | |||||||||||||||||||||||||||||
Increase/Reduction due to business combinations | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Payments with equity instruments | — | (317 | ) | — | (66 | ) | — | — | — | (383 | ) | — | (383 | ) | ||||||||||||||||||||||||||
Rest of increases/reductions in total equity | — | — | (35 | ) | — | — | — | — | (35 | ) | — | (35 | ) | |||||||||||||||||||||||||||
Balances as of December 31, 2009 | 1,837 | 12,453 | 3,893 | 10 | (128 | ) | 2,981 | (1,012 | ) | 20,034 | 1,643 | 21,677 | ||||||||||||||||||||||||||||
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2010 | 2009 | |||||||
Millions of euros | ||||||||
CASH FLOW FROM OPERATING ACTIVITIES(1) | 5,867 | 2,372 | ||||||
Net income for the year | 2,904 | 2,981 | ||||||
Adjustments to obtain the cash flow from operating activities: | (1,141 | ) | 934 | |||||
Depreciation and amortization | 276 | 243 | ||||||
Other adjustments | (1,417 | ) | 691 | |||||
Net increase/decrease in operating assets | (7,251 | ) | (2,022 | ) | ||||
Financial assets held for trading | (6,184 | ) | (2,455 | ) | ||||
Other financial assets designated at fair value through profit or loss | — | — | ||||||
Available-for-sale financial assets | (9,252 | ) | 17,238 | |||||
Loans and receivables | 7,963 | (15,759 | ) | |||||
Other operating assets | 222 | (1,046 | ) | |||||
Net increase/decrease in operating liabilities | (3,656 | ) | (4,032 | ) | ||||
Financial liabilities held for trading | 3,737 | (8,594 | ) | |||||
Other financial liabilities designated at fair value through profit or loss | — | — | ||||||
Financial liabilities at amortized cost | (6,821 | ) | 5,668 | |||||
Other operating liabilities | (572 | ) | (1,106 | ) | ||||
Collection/Payments for income tax | 509 | 467 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES(2) | (7,108 | ) | (656 | ) | ||||
Investment | 8,329 | 2,306 | ||||||
Tangible assets | 222 | 268 | ||||||
Intangible assets | 260 | 138 | ||||||
Investments | 1,864 | 1,039 | ||||||
Other business units | — | — | ||||||
Non-current assets held for sale and associated liabilities | 1,014 | 436 | ||||||
Held-to-maturity investments | 4,969 | 425 | ||||||
Other settlements related to investing activities | — | — | ||||||
Divestments | 1,221 | 1,650 | ||||||
Tangible assets | — | 6 | ||||||
Intangible assets | — | — | ||||||
Investments | 12 | 21 | ||||||
Subsidiaries and other business units | — | — | ||||||
Non-current assets held for sale and associated liabilities | 749 | 1,350 | ||||||
Held-to-maturity investments | 232 | 257 | ||||||
Other collections related to investing activities | 228 | 16 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES(3) | 2,121 | (1,118 | ) | |||||
Investment | 7,622 | 7,785 | ||||||
Dividends | 1,237 | 1,638 | ||||||
Subordinated liabilities | 1,524 | 1,682 | ||||||
Common stock amortization | — | — | ||||||
Treasury stock acquisition | 4,828 | 4,232 | ||||||
Other items relating to financing activities | 33 | 233 | ||||||
Divestments | 9,743 | 6,667 | ||||||
Subordinated liabilities | — | 2,927 | ||||||
Common stock increase | 4,914 | — | ||||||
Treasury stock disposal | 4,829 | 3,740 | ||||||
Other items relating to financing activities | — | — | ||||||
EFFECT OF EXCHANGE RATE CHANGES(4) | (1 | ) | 1 | |||||
NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS (1+2+3+4) | 879 | 599 | ||||||
CASH OR CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 3,286 | 2,687 | ||||||
CASH OR CASH EQUIVALENTS AT END OF THE YEAR | 4,165 | 3,286 | ||||||
Millions of euros | ||||||||
COMPONENTS OF CASH AND EQUIVALENT AT END OF THE YEAR | 2010 | 2009 | ||||||
Cash | 616 | 650 | ||||||
Balance of cash equivalent in central banks | 3,549 | 2,636 | ||||||
Other financial assets | — | — | ||||||
Less: Bank overdraft refundable on demand | — | — | ||||||
TOTAL CASH OR CASH EQUIVALENTS AT END OF THE YEAR | 4,165 | 3,286 | ||||||
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% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | Profit | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | (Loss) | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12.31.10 | 12.31.10 | 12.31.10 | 12.31.10 | ||||||||||||||||||||||||||
Thousands of euros(*) | ||||||||||||||||||||||||||||||||||||
ADMINISTRADORA DE FONDOS DE PENSIONES (AFP) PROVIDA, S.A. | CHILE | PENSION FUNDS MANAGEMENT | 12.7 | 51.6 | 64.3 | 299,781 | 604,814 | 133,974 | 336,179 | 134,661 | ||||||||||||||||||||||||||
ADMINISTRADORA DE FONDOS PARA EL RETIRO-BANCOMER, S.A DE C.V. | MEXICO | PENSION FUNDS MANAGEMENT | 17.5 | 82.5 | 100.0 | 378,280 | 253,580 | 57,106 | 121,296 | 75,178 | ||||||||||||||||||||||||||
AFP GENESIS ADMINISTRADORA DE FONDOS Y FIDEICOMISOS, S.A. | ECUADOR | PENSION FUNDS MANAGEMENT | — | 100.0 | 100.0 | 5,705 | 9,911 | 4,191 | 1,251 | 4,469 | ||||||||||||||||||||||||||
AFP HORIZONTE, S.A. | PERU | PENSION FUNDS MANAGEMENT | 24.9 | 75.2 | 100.0 | 57,956 | 93,038 | 23,097 | 53,875 | 16,066 | ||||||||||||||||||||||||||
AFP PREVISION BBV-ADM.DE FONDOS DE PENSIONES S.A. | BOLIVIA | PENSION FUNDS MANAGEMENT | 75.0 | 5.0 | 80.0 | 2,063 | 9,634 | 4,263 | 3,942 | 1,429 | ||||||||||||||||||||||||||
AMERICAN FINANCE GROUP, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 15,599 | 16,529 | 930 | 14,370 | 1,229 | ||||||||||||||||||||||||||
ANIDA DESARROLLOS INMOBILIARIOS, S.L. | SPAIN | REAL ESTATE | — | 100.0 | 100.0 | 264,143 | 570,278 | 350,002 | 244,826 | (24,550 | ) | |||||||||||||||||||||||||
ANIDA DESARROLLOS SINGULARES, S.L. | SPAIN | REAL ESTATE | — | 100.0 | 100.0 | (485,076 | ) | 1,613,790 | 2,134,176 | (293,829 | ) | (226,557 | ) | |||||||||||||||||||||||
ANIDA GERMANIA IMMOBILIEN ONE, GMBH | GERMANY | REAL ESTATE | — | 100.0 | 100.0 | 4,358 | 20,130 | 15,566 | 4,289 | 275 | ||||||||||||||||||||||||||
ANIDA GRUPO INMOBILIARIO, S.L | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | — | 186,112 | 596,399 | (42,568 | ) | (367,719 | ) | ||||||||||||||||||||||||
ANIDA INMOBILIARIA, S.A. DE C.V. | MEXICO | INVESTMENT COMPANY | — | 100.0 | 100.0 | 106,704 | 98,004 | 9 | 97,847 | 148 | ||||||||||||||||||||||||||
ANIDA INMUEBLES ESPAÑA Y PORTUGAL, S.L. | SPAIN | REAL ESTATE | — | 100.0 | 100.0 | (11,543 | ) | 333,936 | 385,249 | (7,631 | ) | (43,682 | ) | |||||||||||||||||||||||
ANIDA OPERACIONES SINGULARES, S.L | SPAIN | REAL ESTATE | — | 100.0 | 100.0 | (436,849 | ) | 2,152,664 | 2,644,200 | (293,202 | ) | (198,334 | ) | |||||||||||||||||||||||
ANIDA PROYECTOS INMOBILIARIOS, S.A. DE C.V. | MEXICO | REAL ESTATE | — | 100.0 | 100.0 | 97,027 | 143,976 | 46,949 | 97,016 | 11 | ||||||||||||||||||||||||||
ANIDA SERVICIOS INMOBILIARIOS, S.A. DE C.V. | MEXICO | REAL ESTATE | — | 100.0 | 100.0 | 499 | 919 | 420 | 349 | 150 | ||||||||||||||||||||||||||
ANIDAPORT INVESTIMENTOS IMOBILIARIOS, UNIPESSOAL, LTDA | PORTUGAL | REAL ESTATE | — | 100.0 | 100.0 | — | 21,948 | 24,040 | (1,207 | ) | (885 | ) | ||||||||||||||||||||||||
APLICA SOLUCIONES ARGENTINAS, S.A. | ARGENTINA | SERVICES | — | 100.0 | 100.0 | 1,399 | 1,604 | 122 | 1,546 | (64 | ) | |||||||||||||||||||||||||
APLICA SOLUCIONES TECNOLOGICAS CHILE LIMITADA | CHILE | SERVICES | — | 100.0 | 100.0 | (76 | ) | 431 | 506 | 3 | (78 | ) | ||||||||||||||||||||||||
APLICA TECNOLOGIA AVANZADA OPERADORA, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 3 | 3 | — | 3 | — | ||||||||||||||||||||||||||
APLICA TECNOLOGIA AVANZADA SERVICIOS, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 3 | 3 | — | 3 | — | ||||||||||||||||||||||||||
APLICA TECNOLOGIA AVANZADA, S.A. DE C.V.- ATA | MEXICO | SERVICES | 100.0 | — | 100.0 | 4 | 60,114 | 46,651 | 7,129 | 6,334 | ||||||||||||||||||||||||||
APOYO MERCANTIL S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 2,115 | 268,134 | 267,388 | 1,122 | (376 | ) | |||||||||||||||||||||||||
ARIZONA FINANCIAL PRODUCTS, INC | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 718,853 | 721,440 | 2,586 | 705,529 | 13,325 | ||||||||||||||||||||||||||
AUTOMERCANTIL-COMERCIO E ALUGER DE VEICULOS AUTOM.,LDA | PORTUGAL | FINANCIAL SERVICES | — | 100.0 | 100.0 | 4,720 | 45,950 | 37,434 | 8,795 | (279 | ) | |||||||||||||||||||||||||
BAHIA SUR RESORT, S.C | SPAIN | INACTIVE | 100.0 | — | 100.0 | 1,436 | 1,438 | 15 | 1,423 | — | ||||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA (PANAMA), S.A. | PANAMA | BANKING | 54.1 | 44.8 | 98.9 | 19,464 | 1,585,516 | 1,379,245 | 174,908 | 31,363 | ||||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA (PORTUGAL), S.A. | PORTUGAL | BANKING | 9.5 | 90.5 | 100.0 | 338,916 | 8,094,054 | 7,801,158 | 301,751 | (8,855 | ) | |||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA CHILE, S.A. | CHILE | BANKING | — | 68.2 | 68.2 | 543,201 | 11,637,734 | 10,840,980 | 725,374 | 71,380 | ||||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA PUERTO RICO, S.A. | PUERTO RICO | BANKING | — | 100.0 | 100.0 | 178,673 | 3,614,532 | 3,205,830 | 403,714 | 4,988 | ||||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA URUGUAY, S.A. | URUGUAY | BANKING | 100.0 | — | 100.0 | 17,049 | 754,090 | 697,780 | 58,543 | (2,233 | ) | |||||||||||||||||||||||||
BANCO CONTINENTAL, S.A.(1) | PERU | BANKING | — | 92.2 | 92.2 | 835,381 | 10,077,559 | 9,175,857 | 632,731 | 268,971 | ||||||||||||||||||||||||||
BANCO DE PROMOCION DE NEGOCIOS, S.A. | SPAIN | BANKING | — | 99.8 | 99.8 | 15,165 | 32,901 | 172 | 32,561 | 168 | ||||||||||||||||||||||||||
BANCO DEPOSITARIO BBVA, S.A. | SPAIN | BANKING | — | 100.0 | 100.0 | 1,595 | 986,755 | 906,042 | 56,174 | 24,539 | ||||||||||||||||||||||||||
BANCO INDUSTRIAL DE BILBAO, S.A. | SPAIN | BANKING | — | 99.9 | 99.9 | 97,220 | 212,691 | 1,120 | 191,414 | 20,157 | ||||||||||||||||||||||||||
BANCO OCCIDENTAL, S.A. | SPAIN | BANKING | 49.4 | 50.6 | 100.0 | 16,464 | 18,014 | 272 | 17,576 | 166 | ||||||||||||||||||||||||||
BANCO PROVINCIAL OVERSEAS N.V.(2) | NETHERLANDS ANTILLES | BANKING | — | 100.0 | 100.0 | 35,236 | 424,812 | 388,592 | 25,019 | 11,201 | ||||||||||||||||||||||||||
BANCO PROVINCIAL S.A. — BANCO UNIVERSAL | VENEZUELA | BANKING | 1.9 | 53.8 | 55.6 | 159,952 | 8,492,775 | 7,587,925 | 792,625 | 112,225 | ||||||||||||||||||||||||||
BANCOMER FINANCIAL SERVICES INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 1,930 | 778 | (1,152 | ) | 1,922 | 8 | |||||||||||||||||||||||||
BANCOMER FOREIGN EXCHANGE INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 7,412 | 8,593 | 1,181 | 5,945 | 1,467 | ||||||||||||||||||||||||||
BANCOMER PAYMENT SERVICES INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 34 | 22 | (11 | ) | 37 | (4 | ) |
(*) | Information on foreign companies at exchange rate on December 31, 2010 | |
(1) | The percentage of voting rights is the result of the agreements entered into with shareholders that enable the control of the entity. The ownership percentage is 46.1%. | |
(2) | The percentage of voting rights is the result of the agreements entered into with shareholders that enable the control of the entity. The ownership percentage is 48.0%. |
II-1
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | Profit | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | (Loss) | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12.31.10 | 12.31.10 | 12.31.10 | 12.31.10 | ||||||||||||||||||||||||||
Thousands of euros(*) | ||||||||||||||||||||||||||||||||||||
BANCOMER TRANSFER SERVICES, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 27,707 | 71,644 | 43,936 | 18,342 | 9,366 | ||||||||||||||||||||||||||
BBV AMERICA, S.L. | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | 479,328 | 880,779 | 21 | 880,228 | 530 | ||||||||||||||||||||||||||
BBVA & PARTNERS ALTERNATIVE INVESTMENT A.V., S.A. | SPAIN | SECURITIES DEALER | 70.0 | — | 70.0 | 1,331 | 9,880 | 2,239 | 6,463 | 1,178 | ||||||||||||||||||||||||||
BBVA ASESORIAS FINANCIERAS, S.A. | CHILE | FINANCIAL SERVICES | — | 100.0 | 100.0 | 3,990 | 5,374 | 1,385 | 1,174 | 2,815 | ||||||||||||||||||||||||||
BBVA ASSET MANAGEMENT (IRELAND) LIMITED | IRELAND | FINANCIAL SERVICES | — | 100.0 | 100.0 | 245 | 270 | 34 | 311 | (75 | ) | |||||||||||||||||||||||||
BBVA ASSET MANAGEMENT ADMINISTRADORA GENERAL DE FONDOS S.A. | CHILE | FINANCIAL SERVICES | — | 100.0 | 100.0 | 15,821 | 18,002 | 2,181 | 9,875 | 5,946 | ||||||||||||||||||||||||||
BBVA ASSET MANAGEMENT, S.A., SGIIC | SPAIN | FINANCIAL SERVICES | 17.0 | 83.0 | 100.0 | 11,436 | 152,334 | 69,240 | 57,373 | 25,721 | ||||||||||||||||||||||||||
BBVA AUTORENTING SPA | ITALY | SERVICES | — | 100.0 | 100.0 | 66,793 | 314,830 | 281,221 | 30,091 | 3,518 | ||||||||||||||||||||||||||
BBVA BANCO DE FINANCIACION S.A. | SPAIN | BANKING | — | 100.0 | 100.0 | 64,200 | 703,047 | 630,388 | 72,438 | 221 | ||||||||||||||||||||||||||
BBVA BANCO FRANCES, S.A. | ARGENTINA | BANKING | 45.7 | 30.4 | 76.0 | 64,589 | 5,249,989 | 4,563,209 | 459,362 | 227,418 | ||||||||||||||||||||||||||
BBVA BANCOMER FINANCIAL HOLDINGS, INC. | UNITED STATES | INVESTMENT COMPANY | — | 100.0 | 100.0 | 48,091 | 42,900 | (5,324 | ) | 37,394 | 10,830 | |||||||||||||||||||||||||
BBVA BANCOMER GESTION, S.A. DE C.V. | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 30,613 | 54,585 | 23,972 | 12,548 | 18,065 | ||||||||||||||||||||||||||
BBVA BANCOMER OPERADORA, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 41,407 | 304,008 | 262,600 | 30,568 | 10,840 | ||||||||||||||||||||||||||
BBVA BANCOMER SERVICIOS ADMINISTRATIVOS, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 534 | 24,503 | 23,969 | 394 | 140 | ||||||||||||||||||||||||||
BBVA BANCOMER, S.A. DE C.V. | MEXICO | BANKING | — | 100.0 | 100.0 | 6,561,797 | 69,666,830 | 63,107,804 | 5,212,420 | 1,346,606 | ||||||||||||||||||||||||||
BBVA BRASIL BANCO DE INVESTIMENTO, S.A. | BRASIL | BANKING | 100.0 | — | 100.0 | 16,166 | 47,756 | 6,722 | 39,060 | 1,974 | ||||||||||||||||||||||||||
BBVA BROKER, CORREDURIA DE SEGUROS Y REASEGUROS, S.A. (Ex-BBVA CORREDURIA TECNICA ASEGURADORA, S.A.) | SPAIN | FINANCIAL SERVICES | 99.9 | 0.1 | 100.0 | 297 | 35,016 | 3,907 | 25,730 | 5,379 | ||||||||||||||||||||||||||
BBVA CAPITAL FINANCE, S.A. | SPAIN | FINANCIAL SERVICES | 100.0 | — | 100.0 | 60 | 2,983,028 | 2,982,710 | 267 | 51 | ||||||||||||||||||||||||||
BBVA CARTERA DE INVERSIONES,SICAV,S.A. | SPAIN | VARIABLE CAPITAL | 100.0 | — | 100.0 | 118,444 | 120,093 | 121 | 118,880 | 1,092 | ||||||||||||||||||||||||||
BBVA COLOMBIA, S.A. | COLOMBIA | BANKING | 76.2 | 19.2 | 95.4 | 265,416 | 8,634,332 | 7,753,127 | 714,310 | 166,895 | ||||||||||||||||||||||||||
BBVA COMERCIALIZADORA LTDA. | CHILE | FINANCIAL SERVICES | — | 100.0 | 100.0 | (1,154 | ) | 3,050 | 4,205 | (710 | ) | (445 | ) | |||||||||||||||||||||||
BBVA COMPASS CONSULTING & BENEFITS, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 13,449 | 13,723 | 275 | 13,143 | 305 | ||||||||||||||||||||||||||
BBVA COMPASS INSURANCE AGENCY, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 146,614 | 155,943 | 9,328 | 140,493 | 6,122 | ||||||||||||||||||||||||||
BBVA COMPASS INVESTMENT SOLUTIONS, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 51,158 | 56,021 | 4,862 | 40,773 | 10,386 | ||||||||||||||||||||||||||
BBVA CONSOLIDAR SEGUROS, S.A. | ARGENTINA | INSURANCES SERVICES | 87.8 | 12.2 | 100.0 | 6,496 | 48,124 | 29,304 | 17,334 | 1,486 | ||||||||||||||||||||||||||
BBVA CONSULTING ( BEIJING) LIMITED | CHINA | FINANCIAL SERVICES | — | 100.0 | 100.0 | 477 | 683 | 182 | 440 | 61 | ||||||||||||||||||||||||||
BBVA CONSULTORIA, S.A. | SPAIN | SERVICES | — | 100.0 | 100.0 | 2,227 | 4,257 | 707 | 2,933 | 617 | ||||||||||||||||||||||||||
BBVA CORREDORA TECNICA DE SEGUROS LIMITADA | CHILE | FINANCIAL SERVICES | — | 100.0 | 100.0 | 13,377 | 15,902 | 2,501 | 7,075 | 6,326 | ||||||||||||||||||||||||||
BBVA CORREDORES DE BOLSA LIMITADA | CHILE | SECURITIES DEALER | — | 100.0 | 100.0 | 48,415 | 573,180 | 524,768 | 41,467 | 6,945 | ||||||||||||||||||||||||||
BBVA DINERO EXPRESS, S.A.U | SPAIN | FINANCIAL SERVICES | 100.0 | — | 100.0 | �� | 2,186 | 14,524 | 9,298 | 4,820 | 406 | |||||||||||||||||||||||||
BBVA FACTORING LIMITADA (CHILE) | CHILE | FINANCIAL SERVICES | — | 100.0 | 100.0 | 6,765 | 31,974 | 25,207 | 5,443 | 1,324 | ||||||||||||||||||||||||||
BBVA FIDUCIARI1A, S.A. | COLOMBIA | FINANCIAL SERVICES | — | 100.0 | 100.0 | 23,453 | 26,094 | 2,614 | 17,487 | 5,993 | ||||||||||||||||||||||||||
BBVA FINANCE (UK), LTD. | UNITED KINGDOM | FINANCIAL SERVICES | — | 100.0 | 100.0 | 3,324 | 24,867 | 13,603 | 11,198 | 66 | ||||||||||||||||||||||||||
BBVA FINANCE SPA. | ITALY | FINANCIAL SERVICES | 100.0 | — | 100.0 | 4,648 | 6,860 | 1,332 | 5,398 | 130 | ||||||||||||||||||||||||||
BBVA FINANCIAMIENTO AUTOMOTRIZ, S.A. | CHILE | INVESTMENT COMPANY | — | 100.0 | 100.0 | 145,494 | 145,529 | 35 | 120,467 | 25,027 | ||||||||||||||||||||||||||
BBVA FINANZIA, S.p.A | ITALY | FINANCIAL SERVICES | 50.0 | 50.0 | 100.0 | 29,200 | 600,187 | 573,633 | 38,061 | (11,507 | ) | |||||||||||||||||||||||||
BBVA FUNDOS, S.Gestora Fundos Pensoes, S.A. | PORTUGAL | FINANCIAL SERVICES | — | 100.0 | 100.0 | 998 | 8,679 | 445 | 6,448 | 1,786 | ||||||||||||||||||||||||||
BBVA GEST, S.G.DE FUNDOS DE INVESTIMENTO MOBILIARIO, S.A. | PORTUGAL | FINANCIAL SERVICES | — | 100.0 | 100.0 | 998 | 7,206 | 120 | 6,834 | 252 | ||||||||||||||||||||||||||
BBVA GLOBAL FINANCE LTD. | CAYMAN ISLANDS | FINANCIAL SERVICES | 100.0 | — | 100.0 | — | 688,846 | 685,142 | 3,776 | (72 | ) | |||||||||||||||||||||||||
BBVA GLOBAL MARKETS B.V. | NETHERLANDS | FINANCIAL SERVICES | 100.0 | — | 100.0 | 18 | 256,964 | 256,960 | 17 | (13 | ) |
(*) | Information on foreign companies at exchange rate on December 31, 2010 |
II-2
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | Profit | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | (Loss) | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12.31.10 | 12.31.10 | 12.31.10 | 12.31.10 | ||||||||||||||||||||||||||
Thousands of euros (*) | ||||||||||||||||||||||||||||||||||||
BBVA HORIZONTE PENSIONES Y CESANTIAS, S.A. | COLOMBIA | PENSION FUNDS MANAGEMENT | 78.5 | 21.4 | 100.0 | 62,061 | 162,934 | 35,812 | 102,872 | 24,250 | ||||||||||||||||||||||||||
BBVA INMOBILIARIA E INVERSIONES, S.A. | CHILE | REAL ESTATE | — | 68.1 | 68.1 | 5,652 | 44,049 | 35,750 | 8,641 | (342 | ) | |||||||||||||||||||||||||
BBVA INSTITUIÇAO FINANCEIRA DE CREDITO, S.A. | PORTUGAL | FINANCIAL SERVICES | — | 100.0 | 100.0 | 33,148 | 443,576 | 402,234 | 39,123 | 2,219 | ||||||||||||||||||||||||||
BBVA INTERNATIONAL LIMITED | CAYMAN ISLANDS | FINANCIAL SERVICES | 100.0 | — | 100.0 | 1 | 503,692 | 501,107 | 2,751 | (166 | ) | |||||||||||||||||||||||||
BBVA INTERNATIONAL PREFERRED, S.A.U | SPAIN | FINANCIAL SERVICES | 100.0 | — | 100.0 | 60 | 1,697,891 | 1,697,121 | 378 | 392 | ||||||||||||||||||||||||||
BBVA INVERSIONES CHILE, S.A. | CHILE | FINANCIAL SERVICES | 61.2 | 38.8 | 100.0 | 580,584 | 1,254,723 | 2,328 | 1,088,536 | 163,859 | ||||||||||||||||||||||||||
BBVA IRELAND PLC | IRELAND | FINANCIAL SERVICES | 100.0 | — | 100.0 | 180,381 | 881,138 | 514,594 | 344,782 | 21,762 | ||||||||||||||||||||||||||
BBVA LEASIMO — SOCIEDADE DE LOCAÇAO FINANCEIRA, S.A. | PORTUGAL | FINANCIAL SERVICES | — | 100.0 | 100.0 | 11,576 | 28,620 | 18,456 | 10,422 | (258 | ) | |||||||||||||||||||||||||
BBVA LUXINVEST, S.A. | LUXEMBOURG | INVESTMENT COMPANY | 36.0 | 64.0 | 100.0 | 255,843 | 1,477,238 | 65,971 | 1,406,909 | 4,358 | ||||||||||||||||||||||||||
BBVA MEDIACION OPERADOR DE BANCA-SEGUROS VINCULADO, S.A. | SPAIN | FINANCIAL SERVICES | — | 100.0 | 100.0 | 60 | 85,311 | 73,962 | 5,784 | 5,565 | ||||||||||||||||||||||||||
BBVA NOMINEES LIMITED | UNITED KINGDOM | SERVICES | 100.0 | — | 100.0 | — | 1 | — | 1 | — | ||||||||||||||||||||||||||
BBVA PARAGUAY, S.A. | PARAGUAY | BANKING | 100.0 | — | 100.0 | 22,598 | 1,121,259 | 1,010,091 | 71,269 | 39,899 | ||||||||||||||||||||||||||
BBVA PATRIMONIOS GESTORA SGIIC, S.A. | SPAIN | FINANCIAL SERVICES | 100.0 | — | 100.0 | 3,907 | 28,634 | 3,404 | 20,143 | 5,087 | ||||||||||||||||||||||||||
BBVA PENSIONES, SA, ENTIDAD GESTORA DE FONDOS DE PENSIONES | SPAIN | PENSION FUNDS MANAGEMENT | 100.0 | — | 100.0 | 12,922 | 72,968 | 34,106 | 25,939 | 12,923 | ||||||||||||||||||||||||||
BBVA PLANIFICACION PATRIMONIAL, S.L. | SPAIN | FINANCIAL SERVICES | 80.0 | 20.0 | 100.0 | 1 | 502 | 3 | 493 | 6 | ||||||||||||||||||||||||||
BBVA PROPIEDAD F.I.I | SPAIN | REAL ESTATE INVESTMENT COMPANY | — | 100.0 | 100.0 | 1,384,561 | 1,469,283 | 74,743 | 1,474,196 | (79,656 | ) | |||||||||||||||||||||||||
BBVA PUERTO RICO HOLDING CORPORATION | PUERTO RICO | INVESTMENT COMPANY | 100.0 | — | 100.0 | 322,837 | 179,048 | 6 | 179,107 | (65 | ) | |||||||||||||||||||||||||
BBVA RE LIMITED | IRELAND | INSURANCES SERVICES | — | 100.0 | 100.0 | 656 | 67,631 | 39,901 | 22,296 | 5,434 | ||||||||||||||||||||||||||
BBVA RENTING, S.A. | SPAIN | FINANCIAL SERVICES | — | 100.0 | 100.0 | 20,976 | 840,056 | 747,739 | 85,809 | 6,508 | ||||||||||||||||||||||||||
BBVA RENTING, SPA | ITALY | SERVICES | — | 100.0 | 100.0 | 8,453 | 56,154 | 50,629 | 7,891 | (2,366 | ) | |||||||||||||||||||||||||
BBVA SECURITIES INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 41,796 | 45,580 | 12,452 | 27,484 | 5,644 | ||||||||||||||||||||||||||
BBVA SECURITIES OF PUERTO RICO, INC. | PUERTO RICO | FINANCIAL SERVICES | 100.0 | — | 100.0 | 4,726 | 6,963 | 755 | 6,082 | 126 | ||||||||||||||||||||||||||
BBVA SEGUROS COLOMBIA, S.A. | COLOMBIA | INSURANCES SERVICES | 94.0 | 6.0 | 100.0 | 9,490 | 42,797 | 27,578 | 14,065 | 1,154 | ||||||||||||||||||||||||||
BBVA SEGUROS DE VIDA COLOMBIA, S.A. | COLOMBIA | INSURANCES SERVICES | 94.0 | 6.0 | 100.0 | 13,242 | 329,602 | 278,040 | 41,754 | 9,808 | ||||||||||||||||||||||||||
BBVA SEGUROS DE VIDA, S.A. | CHILE | INSURANCES SERVICES | — | 100.0 | 100.0 | 56,178 | 397,262 | 341,085 | 45,780 | 10,397 | ||||||||||||||||||||||||||
BBVA SEGUROS INC. | PUERTO RICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 187 | 5,459 | 629 | 3,895 | 935 | ||||||||||||||||||||||||||
BBVA SEGUROS, S.A., DE SEGUROS Y REASEGUROS | SPAIN | INSURANCES SERVICES | 94.3 | 5.7 | 100.0 | 414,659 | 10,913,118 | 10,164,287 | 508,373 | 240,458 | ||||||||||||||||||||||||||
BBVA SENIOR FINANCE, S.A.U | SPAIN | FINANCIAL SERVICES | 100.0 | — | 100.0 | 60 | 15,154,181 | 15,153,452 | 346 | 383 | ||||||||||||||||||||||||||
BBVA SERVICIOS CORPORATIVOS LIMITADA | CHILE | FINANCIAL SERVICES | — | 100.0 | 100.0 | 1,297 | 10,949 | 9,648 | (1,968 | ) | 3,269 | |||||||||||||||||||||||||
BBVA SERVICIOS, S.A. | SPAIN | SERVICES | — | 100.0 | 100.0 | 354 | 10,791 | 1,189 | 7,031 | 2,571 | ||||||||||||||||||||||||||
BBVA SOCIEDAD DE LEASING INMOBILIARIO, S.A. | CHILE | FINANCIAL SERVICES | — | 97.5 | 97.5 | 15,901 | 64,945 | 48,633 | 14,795 | 1,517 | ||||||||||||||||||||||||||
BBVA SUBORDINATED CAPITAL S.A.U | SPAIN | FINANCIAL SERVICES | 100.0 | — | 100.0 | 130 | 3,434,727 | 3,434,217 | 403 | 107 | ||||||||||||||||||||||||||
BBVA SUIZA, S.A. (BBVA SWITZERLAND) | SWITZERLAND | BANKING | 39.7 | 60.3 | 100.0 | 58,107 | 1,406,692 | 1,008,595 | 377,797 | 20,300 | ||||||||||||||||||||||||||
BBVA TRADE, S.A. | SPAIN | INVESTMENT COMPANY | — | 100.0 | 100.0 | 6,379 | 21,274 | 11,035 | 8,171 | 2,068 | ||||||||||||||||||||||||||
BBVA U.S. SENIOR S.A.U. | SPAIN | FINANCIAL SERVICES | 100.0 | — | 100.0 | 169 | 898,687 | 898,650 | 138 | (101 | ) | |||||||||||||||||||||||||
BBVA USA BANCSHARES, INC. | UNITED STATES | INVESTMENT COMPANY | 100.0 | — | 100.0 | 9,268,740 | 9,106,626 | 7,897 | 9,355,563 | (256,834 | ) | |||||||||||||||||||||||||
BBVA VALORES COLOMBIA, S.A. COMISIONISTA DE BOLSA | COLOMBIA | SECURITIES DEALER | — | 100.0 | 100.0 | 4,747 | 9,330 | 4,583 | 3,581 | 1,166 | ||||||||||||||||||||||||||
BBVA WEALTH SOLUTIONS, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 25,398 | 25,990 | 591 | 25,269 | 130 | ||||||||||||||||||||||||||
BCL INTERNATIONAL FINANCE. LTD. | CAYMAN ISLANDS | FINANCIAL SERVICES | 100.0 | — | 100.0 | — | 4 | 4 | (5 | ) | 5 | |||||||||||||||||||||||||
BILBAO VIZCAYA AMERICA B.V. | NETHERLANDS | INIVESTMENT COMPANY | — | 100.0 | 100.0 | 746,000 | 629,416 | 22 | 608,766 | 20,628 |
(*) | Information on foreign companies at exchange rate on December 31, 2010 |
II-3
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | Profit | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | (Loss) | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12.31.10 | 12.31.10 | 12.31.10 | 12.31.10 | ||||||||||||||||||||||||||
Thousands of euros (*) | ||||||||||||||||||||||||||||||||||||
BILBAO VIZCAYA HOLDING, S.A. | SPAIN | INVESTMENT COMPANY | 89.0 | 11.0 | 100.0 | 34,771 | 251,089 | 21,027 | 223,504 | 6,558 | ||||||||||||||||||||||||||
BLUE INDICO INVESTMENTS, S.L. | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | 49,106 | 55,957 | 207 | 60,897 | (5,147 | ) | |||||||||||||||||||||||||
C B TRANSPORT ,INC. | UNITED STATES | SERVICES | — | 100.0 | 100.0 | 12,427 | 13,622 | 1,195 | 12,803 | (376 | ) | |||||||||||||||||||||||||
CAPITAL INVESTMENT COUNSEL, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 22,807 | 24,088 | 1,280 | 21,037 | 1,771 | ||||||||||||||||||||||||||
CARTERA E INVERSIONES S.A., CIA DE | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | 92,016 | 253,247 | 48,030 | 201,140 | 4,077 | ||||||||||||||||||||||||||
CASA DE BOLSA BBVA BANCOMER , S.A. DE C.V. | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 77,423 | 99,183 | 21,758 | 47,743 | 29,682 | ||||||||||||||||||||||||||
CASA DE CAMBIO MULTIDIVISAS, SA DE CV | MEXICO | IN LIQUIDATION | — | 100.0 | 100.0 | 171 | 170 | — | 169 | 1 | ||||||||||||||||||||||||||
CIA. GLOBAL DE MANDATOS Y REPRESENTACIONES, S.A. | URUGUAY | IN LIQUIDATION | — | 100.0 | 100.0 | 108 | 187 | 2 | 185 | — | ||||||||||||||||||||||||||
CIDESSA DOS, S.L. | SPAIN | INVESTMENT COMPANY | — | 100.0 | 100.0 | 12,062 | 12,183 | 117 | 12,047 | 19 | ||||||||||||||||||||||||||
CIDESSA UNO, S.L. | SPAIN | INVESTMENT COMPANY | — | 100.0 | 100.0 | 4,754 | 898,460 | 22,374 | 994,155 | (118,069 | ) | |||||||||||||||||||||||||
CIERVANA, S.L. | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | 53,164 | 70,156 | 3,232 | 66,879 | 45 | ||||||||||||||||||||||||||
COMERCIALIZADORA CORPORATIVA SAC(1) | PERU | FINANCIAL SERVICES | — | 100.0 | 100.0 | 449 | 1,050 | 601 | 142 | 307 | ||||||||||||||||||||||||||
COMERCIALIZADORA DE SERVICIOS FINANCIEROS, S.A. | COLOMBIA | SERVICES | — | 100.0 | 100.0 | 587 | 1,738 | 752 | 680 | 306 | ||||||||||||||||||||||||||
COMPASS ASSET ACCEPTANCE COMPANY, LLC | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 363,575 | 363,575 | — | 362,726 | 849 | ||||||||||||||||||||||||||
COMPASS AUTO RECEIVABLES CORPORATION | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 3,125 | 3,125 | — | 3,127 | (2 | ) | |||||||||||||||||||||||||
COMPASS BANCSHARES, INC. | UNITED STATES | INVESTMENT COMPANY | — | 100.0 | 100.0 | 9,083,594 | 9,178,765 | 95,174 | 9,339,985 | (256,394 | ) | |||||||||||||||||||||||||
COMPASS BANK | UNITED STATES | BANKING | — | 100.0 | 100.0 | 9,049,899 | 51,111,008 | 42,061,111 | 9,289,908 | (240,011 | ) | |||||||||||||||||||||||||
COMPASS CAPITAL MARKETS, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 5,626,344 | 5,626,344 | — | 5,509,976 | 116,368 | ||||||||||||||||||||||||||
COMPASS CUSTODIAL SERVICES, INC. | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
COMPASS FINANCIAL CORPORATION | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 6,886 | 53,984 | 47,099 | 6,824 | 61 | ||||||||||||||||||||||||||
COMPASS GP, INC. | UNITED STATES | INVESTMENT COMPANY | — | 100.0 | 100.0 | 34,802 | 43,807 | 9,005 | 34,272 | 530 | ||||||||||||||||||||||||||
COMPASS INVESTMENTS, INC. | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
COMPASS LIMITED PARTNER, INC. | UNITED STATES | INVESTMENT COMPANY | — | 100.0 | 100.0 | 4,872,688 | 4,873,129 | 440 | 4,770,173 | 102,516 | ||||||||||||||||||||||||||
COMPASS LOAN HOLDINGS TRS, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 58,163 | 60,101 | 1,938 | 58,118 | 45 | ||||||||||||||||||||||||||
COMPASS MORTGAGE CORPORATION | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 1,938,209 | 1,938,459 | 249 | 1,924,839 | 13,371 | ||||||||||||||||||||||||||
COMPASS MORTGAGE FINANCING, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 26 | 26 | — | 26 | — | ||||||||||||||||||||||||||
COMPASS MULTISTATE SERVICES CORPORATION | UNITED STATES | SERVICES | — | 100.0 | 100.0 | 2,807 | 2,862 | 55 | 2,807 | — | ||||||||||||||||||||||||||
COMPASS SOUTHWEST, LP | UNITED STATES | BANKING | — | 100.0 | 100.0 | 4,008,054 | 4,008,406 | 351 | 3,916,928 | 91,127 | ||||||||||||||||||||||||||
COMPASS TEXAS ACQUISITION CORPORATION | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1,694 | 1,711 | 17 | 1,693 | 1 | ||||||||||||||||||||||||||
COMPASS TEXAS MORTGAGE FINANCING, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 26 | 26 | — | 26 | — | ||||||||||||||||||||||||||
COMPASS TRUST II | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | — | 1 | — | 1 | — | ||||||||||||||||||||||||||
COMPASS WEALTH MANAGERS COMPANY | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
COMPAÑIA CHILENA DE INVERSIONES, S.L. | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | 580,313 | 590,050 | 3,534 | 585,508 | 1,008 | ||||||||||||||||||||||||||
COMUNIDAD FINANCIERA ÍNDICO, S.L. | SPAIN | SERVICES | — | 100.0 | 100.0 | 69 | 62 | — | 160 | (98 | ) | |||||||||||||||||||||||||
CONSOLIDAR A.F.J.P., S.A. | ARGENTINA | PENSION FUNDS MANAGEMENT | 46.1 | 53.9 | 100.0 | 4,025 | 19,566 | 12,099 | 10,727 | (3,260 | ) | |||||||||||||||||||||||||
CONSOLIDAR ASEGURADORA DE RIESGOS DEL TRABAJO, S.A. | ARGENTINA | INSURANCES SERVICES | 87.5 | 12.5 | 100.0 | 29,434 | 237,856 | 199,586 | 33,211 | 5,059 | ||||||||||||||||||||||||||
CONSOLIDAR CIA. DE SEGUROS DE RETIRO, S.A. | ARGENTINA | INSURANCES SERVICES | 33.8 | 66.2 | 100.0 | 32,612 | 608,698 | 559,442 | 36,596 | 12,660 | ||||||||||||||||||||||||||
CONSOLIDAR COMERCIALIZADORA, S.A. | ARGENTINA | FINANCIAL SERVICES | — | 100.0 | 100.0 | 1,440 | 12,577 | 11,139 | 8,864 | (7,426 | ) | |||||||||||||||||||||||||
CONTENTS AREA, S.L. | SPAIN | INVESTMENT COMPANY | — | 100.0 | 100.0 | 1,251 | 1,456 | 44 | 3,789 | (2,377 | ) | |||||||||||||||||||||||||
CONTINENTAL BOLSA, SDAD. AGENTE DE BOLSA, S.A.(2) | PERU | SECURITIES DEALER | — | 100.0 | 100.0 | 6,243 | 12,399 | 6,156 | 5,283 | 960 |
(*) | Information on foreign companies at exchange rate on December 31, 2010 | |
(1) | The percentage of voting rights is the result of the agreements entered into with shareholders that enable the control of the entity. The ownership percentage is 50.0%. | |
(2) | The percentage of voting rights is the result of the agreements entered into with shareholders that enable the control of the entity. The ownership percentage is 46.1%. |
II-4
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | Profit | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | (Loss) | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12.31.10 | 12.31.10 | 12.31.10 | 12.31.10 | ||||||||||||||||||||||||||
Thousands of euros(*) | ||||||||||||||||||||||||||||||||||||
CONTINENTAL DPR FINANCE COMPANY(1) | CAYMAN ISLANDS | FINANCIAL SERVICES | — | 100.0 | 100.0 | — | 350,885 | 350,885 | — | — | ||||||||||||||||||||||||||
CONTINENTAL S.A. SOCIEDAD ADMINISTRADORA DE FONDOS(1) | PERU | FINANCIAL SERVICES | — | 100.0 | 100.0 | 9,013 | 10,700 | 1,686 | 6,587 | 2,427 | ||||||||||||||||||||||||||
CONTINENTAL SOCIEDAD TITULIZADORA, S.A.(1) | PERU | FINANCIAL SERVICES | — | 100.0 | 100.0 | 440 | 467 | 27 | 437 | 3 | ||||||||||||||||||||||||||
CONTRATACION DE PERSONAL, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 2,633 | 11,486 | 8,853 | 2,221 | 412 | ||||||||||||||||||||||||||
CORPORACION DE ALIMENTACION Y BEBIDAS, S.A. | SPAIN | INVESTMENT COMPANY | — | 100.0 | 100.0 | 138,508 | 164,685 | 1,282 | 162,956 | 447 | ||||||||||||||||||||||||||
CORPORACION GENERAL FINANCIERA, S.A. | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | 509,716 | 1,704,190 | 44,359 | 1,604,045 | 55,786 | ||||||||||||||||||||||||||
DESARROLLADORA Y VENDEDORA DE CASAS, S.A | MEXICO | REAL ESTATE | — | 100.0 | 100.0 | 13 | 15 | 2 | 16 | (3 | ) | |||||||||||||||||||||||||
DESARROLLO URBANISTICO DE CHAMARTIN, S.A. | SPAIN | REAL ESTATE | — | 72.5 | 72.5 | 52,210 | 91,653 | 19,698 | 72,086 | (131 | ) | |||||||||||||||||||||||||
DESITEL TECNOLOGIA Y SISTEMAS, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 1,616 | 1,616 | — | 1,569 | 47 | ||||||||||||||||||||||||||
DINERO EXPRESS SERVICIOS GLOBALES, S.A. | SPAIN | FINANCIAL SERVICES | 100.0 | — | 100.0 | 2,042 | 1,771 | 229 | 2,005 | (463 | ) | |||||||||||||||||||||||||
ECONTA GESTION INTEGRAL, S.L. | SPAIN | SERVICES | — | 100.0 | 100.0 | 372 | 1,829 | 1,639 | 1,305 | (1,115 | ) | |||||||||||||||||||||||||
EL ENCINAR METROPOLITANO, S.A. | SPAIN | REAL ESTATE | — | 99.0 | 99.0 | 6,253 | 7,240 | 1,056 | 5,378 | 806 | ||||||||||||||||||||||||||
EL OASIS DE LAS RAMBLAS, S.L. | SPAIN | REAL ESTATE | — | 70.0 | 70.0 | 167 | 473 | 191 | 257 | 25 | ||||||||||||||||||||||||||
ENTRE2 SERVICIOS FINANCIEROS, E.F.C., S.A. | SPAIN | FINANCIAL SERVICES | — | 100.0 | 100.0 | 9,139 | 9,515 | 12 | 9,570 | (67 | ) | |||||||||||||||||||||||||
ESPANHOLA COMERCIAL E SERVIÇOS, LTDA | BRASIL | FINANCIAL SERVICES | 100.0 | — | 100.0 | — | 985 | 313 | 6,945 | (6,273 | ) | |||||||||||||||||||||||||
ESTACION DE AUTOBUSES CHAMARTIN, S.A. | SPAIN | SERVICES | — | 51.0 | 51.0 | 31 | 30 | — | 30 | — | ||||||||||||||||||||||||||
EUROPEA DE TITULIZACION, S.A., S.G.F.T. | SPAIN | FINANCIAL SERVICES | 87.5 | — | 87.5 | 1,974 | 23,916 | 1,328 | 16,407 | 6,181 | ||||||||||||||||||||||||||
FIDEICOMISO28991-8 TRADING EN LOS MCADOS FINANCIEROS | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 2,259 | 2,259 | — | 2,150 | 109 | ||||||||||||||||||||||||||
FIDEICOMISO BBVA BANCOMER SERVICIOS No F/47433-8, S.A. | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 41,490 | 48,139 | 6,648 | 39,573 | 1,918 | ||||||||||||||||||||||||||
FIDEICOMISO F/29763-0 SOCIO LIQUIDADOR DE OPERACIONES FINANCIERAS DERIVADAS CUENTA PROPIA | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 24,506 | 24,947 | 440 | 23,083 | 1,424 | ||||||||||||||||||||||||||
FIDEICOMISO F/29764-8 SOCIO LIQUIDADOR DE OPERACIONES FINANCIERAS DERIVADAS CUENTA TERCEROS | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 39,772 | 40,540 | 767 | 36,556 | 3,217 | ||||||||||||||||||||||||||
FIDEICOMISO HARES BBVA BANCOMER F/47997-2 | MEXICO | REAL ESTATE | — | 80.3 | 80.3 | 28,371 | 35,433 | 2,275 | 28,979 | 4,179 | ||||||||||||||||||||||||||
FIDEICOMISO N.847 EN BANCO INVEX, S.A.,INSTITUCION DE BANCA MULTIPLE, INVEX GRUPO FINANCIERO, FIDUCIARIO (FIDEIC. 4 EMISION) | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 29 | 270,963 | 273,221 | (355 | ) | (1,903 | ) | ||||||||||||||||||||||||
FIDEICOMISO No.402900-5 ADMINISTRACION DE INMUEBLES | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 2,522 | 2,734 | 201 | 2,533 | — | ||||||||||||||||||||||||||
FIDEICOMISO No.711, EN BANCO INVEX, S.A. INSTITUCION DE BANCA MÚLTIPLE, INVEX GRUPO FINANCIERO, FIDUCIARIO (FIDEICOMISO INVEX 1a EMISION) | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | — | 111,196 | 107,748 | 5,365 | (1,917 | ) | |||||||||||||||||||||||||
FIDEICOMISO No.752 EN BANCO INVEX, S.A.,INSTITUCION DE BANCA MULTIPLE, INVEX GRUPO FINANCIERO, FIDUCIARIO(FIDEIC.INVEX 2a EMISION) | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | — | 51,183 | 49,731 | 2,185 | (733 | ) | |||||||||||||||||||||||||
FIDEICOMISO No.781EN BANCO INVEX, S.A.,INSTITUCION DE BANCA MULTIPLE, INVEX GRUPO FINANCIERO, FIDUCIARIO (FIDEIC. 3ra EMISION) | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | — | 295,754 | 275,519 | 5,549 | 14,686 | ||||||||||||||||||||||||||
FINANCEIRA DO COMERCIO EXTERIOR S.A.R. | PORTUGAL | INACTIVE | 100.0 | — | 100.0 | 51 | 35 | — | 36 | (1 | ) | |||||||||||||||||||||||||
FINANCIERA AYUDAMOS S.A. DE C.V., SOFOMER | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 3,405 | 7,428 | 4,023 | 4,811 | (1,406 | ) | |||||||||||||||||||||||||
FINANZIA AUTORENTING, S.A. | SPAIN | SERVICES | 27.1 | 72.9 | 100.0 | 49,879 | 540,085 | 528,174 | 13,250 | (1,339 | ) | |||||||||||||||||||||||||
FINANZIA, BANCO DE CREDITO, S.A. | SPAIN | BANKING | — | 100.0 | 100.0 | 174,207 | 7,778,930 | 7,689,540 | 197,799 | (108,409 | ) | |||||||||||||||||||||||||
FRANCES ADMINISTRADORA DE INVERSIONES, S.A. | ARGENTINA | FINANCIAL SERVICES | — | 100.0 | 100.0 | 7,118 | 10,436 | 3,318 | 6,091 | 1,027 | ||||||||||||||||||||||||||
FRANCES VALORES SOCIEDAD DE BOLSA, S.A. | ARGENTINA | FINANCIAL SERVICES | — | 100.0 | 100.0 | 2,255 | 3,686 | 1,431 | 1,482 | 773 | ||||||||||||||||||||||||||
FUTURO FAMILIAR, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 439 | 1,176 | 736 | 340 | 100 | ||||||||||||||||||||||||||
GESTION DE PREVISION Y PENSIONES, S.A. | SPAIN | PENSION FUNDS MANAGEMENT | 60.0 | — | 60.0 | 8,830 | 27,725 | 2,587 | 20,873 | 4,265 | ||||||||||||||||||||||||||
GESTION Y ADMINISTRACION DE RECIBOS, S.A. | SPAIN | SERVICES | — | 100.0 | 100.0 | 150 | 2,780 | 405 | 1,887 | 488 | ||||||||||||||||||||||||||
GOBERNALIA GLOBAL NET, S.A. | SPAIN | SERVICES | — | 100.0 | 100.0 | 947 | 2,977 | 1,408 | 1,553 | 16 | ||||||||||||||||||||||||||
GRAN JORGE JUAN, S.A. | SPAIN | REAL ESTATE | 100.0 | — | 100.0 | 110,115 | 515,862 | 457,176 | 60,453 | (1,767 | ) | |||||||||||||||||||||||||
GRANFIDUCIARIA | COLOMBIA | IN LIQUIDATION | — | 90.0 | 90.0 | — | 218 | 128 | 136 | (46 | ) | |||||||||||||||||||||||||
GRUPO FINANCIERO BBVA BANCOMER, S.A. DE C.V. | MEXICO | FINANCIAL SERVICES | 100.0 | — | 100.0 | 6,677,124 | 7,562,447 | 1,002 | 5,984,850 | 1,576,595 |
(*) | Information on foreign companies at exchange rate on December 31, 2010 | |
(1) | The percentage of voting rights is the result of the agreements entered into with shareholders that enable the control of the entity. The ownership percentage is 46.1%. |
II-5
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | Profit | |||||||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | (Loss) | ||||||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12.31.10 | 12.31.10 | 12.31.10 | 12.31.10 | ||||||||||||||||||||||||||||||
Thousands of euros (*) | ||||||||||||||||||||||||||||||||||||||||
GRUPO PROFESIONAL PLANEACION Y PROYECTOS, S.A. DE C.V. | MEXICO | SERVICES | — | 58.4 | 58.4 | 4,049 | 23,913 | 16,981 | 7,368 | (436 | ) | |||||||||||||||||||||||||||||
GUARANTY BUSINESS CREDIT CORPORATION | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 27,132 | 28,524 | 1,391 | 25,838 | 1,295 | ||||||||||||||||||||||||||||||
GUARANTY PLUS HOLDING COMPANY | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | (23,927 | ) | 45,646 | 69,571 | (22,290 | ) | (1,635 | ) | |||||||||||||||||||||||||||
GUARANTY PLUS PROPERTIES LLC-2 | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 35,040 | 35,193 | 153 | 34,866 | 174 | ||||||||||||||||||||||||||||||
GUARANTY PLUS PROPERTIES LLC-3 | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||||||
GUARANTY PLUS PROPERTIES LLC-4 | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||||||
GUARANTY PLUS PROPERTIES LLC-5 | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||||||
GUARANTY PLUS PROPERTIES LLC-6 | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||||||
GUARANTY PLUS PROPERTIES LLC-7 | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||||||
GUARANTY PLUS PROPERTIES LLC-8 | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||||||
GUARANTY PLUS PROPERTIES LLC-9 | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||||||
GUARANTY PLUS PROPERTIES, INC-1 | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 9,349 | 9,351 | 2 | 9,730 | (381 | ) | |||||||||||||||||||||||||||||
HIPOTECARIA NACIONAL MEXICANA INCORPORATED | UNITED STATES | REAL ESTATE | — | 100.0 | 100.0 | 312 | 408 | 95 | 183 | 130 | ||||||||||||||||||||||||||||||
HIPOTECARIA NACIONAL, S.A. DE C.V. | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 58,701 | 91,122 | 11,779 | 80,170 | (827 | ) | |||||||||||||||||||||||||||||
HOLDING CONTINENTAL, S.A. | PERU | INVESTMENT COMPANY | 50.0 | — | 50.0 | 123,678 | 884,998 | 5 | 628,029 | 256,964 | ||||||||||||||||||||||||||||||
HOMEOWNERS LOAN CORPORATION | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 7,786 | 8,062 | 275 | 7,970 | (183 | ) | |||||||||||||||||||||||||||||
HUMAN RESOURCES PROVIDER | UNITED STATES | SERVICES | — | 100.0 | 100.0 | 698,212 | 698,237 | 24 | 703,161 | (4,948 | ) | |||||||||||||||||||||||||||||
HUMAN RESOURCES SUPPORT, INC. | UNITED STATES | SERVICES | — | 100.0 | 100.0 | 696,453 | 696,511 | 59 | 701,608 | (5,156 | ) | |||||||||||||||||||||||||||||
IBERNEGOCIO DE TRADE, S.L. | SPAIN | SERVICES | — | 100.0 | 100.0 | 3,687 | 3,688 | — | 1,688 | 2,000 | ||||||||||||||||||||||||||||||
INGENIERIA EMPRESARIAL MULTIBA, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
INMOBILIARIA BILBAO, S.A. | SPAIN | REAL ESTATE | — | 100.0 | 100.0 | 3,842 | 3,847 | 1 | 3,837 | 9 | ||||||||||||||||||||||||||||||
INMUEBLES Y RECUPERACIONES CONTINENTAL S.A(1) | PERU | REAL ESTATE | — | 100.0 | 100.0 | 5,392 | 6,583 | 1,192 | 1,873 | 3,518 | ||||||||||||||||||||||||||||||
INVERAHORRO, S.L. | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | — | 77,630 | 79,210 | (918 | ) | (662 | ) | ||||||||||||||||||||||||||||
INVERSIONES ALDAMA, C.A | VENEZUELA | IN LIQUIDATION | — | 100.0 | 100.0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
INVERSIONES BANPRO INTERNATIONAL INC. N.V. | NETHERLANDS ANTILLES | IN LIQUIDATION | 48.0 | — | 48.0 | 11,390 | 37,837 | 1,173 | 25,460 | 11,204 | ||||||||||||||||||||||||||||||
INVERSIONES BAPROBA, C.A | VENEZUELA | FINANCIAL SERVICES | 100.0 | — | 100.0 | 1,307 | 1,258 | 132 | 801 | 325 | ||||||||||||||||||||||||||||||
INVERSIONES P.H.R.4, C.A. | VENEZUELA | IN LIQUIDATION | — | 60.5 | 60.5 | — | 26 | — | 26 | — | ||||||||||||||||||||||||||||||
INVERSORA OTAR, S.A. | ARGENTINA | INVESTMENT COMPANY | — | 100.0 | 100.0 | 3,276 | 65,392 | 8 | 42,299 | 23,085 | ||||||||||||||||||||||||||||||
INVESCO MANAGEMENT No 1, S.A. | LUXEMBOURG | FINANCIAL SERVICES | — | 100.0 | 100.0 | 9,753 | 10,344 | 623 | 9,825 | (104 | ) | |||||||||||||||||||||||||||||
INVESCO MANAGEMENT No 2, S.A. | LUXEMBOURG | FINANCIAL SERVICES | — | 100.0 | 100.0 | — | 7,769 | 17,071 | (8,564 | ) | (738 | ) | ||||||||||||||||||||||||||||
JARDINES DE SARRIENA, S.L. | SPAIN | INVESTMENT COMPANY | — | 85.0 | 85.0 | 255 | 457 | 159 | 172 | 126 | ||||||||||||||||||||||||||||||
LIQUIDITY ADVISORS, L.P | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 900,046 | 902,819 | 2,774 | 890,086 | 9,959 | ||||||||||||||||||||||||||||||
MEDITERRANIA DE PROMOCIONS I GESTIONS INMOBILIARIES, S.A. | SPAIN | INACTIVE | — | 100.0 | 100.0 | 1,189 | 1,251 | 60 | 1,187 | 4 | ||||||||||||||||||||||||||||||
MISAPRE, S.A. DE C.V. | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 17,342 | 23,937 | 8,087 | 16,910 | (1,060 | ) | |||||||||||||||||||||||||||||
MULTIASISTENCIA OPERADORA S.A. DE C.V. | MEXICO | INSURANCES SERVICES | — | 100.0 | 100.0 | 121 | 877 | 757 | 76 | 44 | ||||||||||||||||||||||||||||||
MULTIASISTENCIA SERVICIOS S.A. DE C.V. | MEXICO | INSURANCES SERVICES | — | 100.0 | 100.0 | 381 | 1,971 | 1,589 | 208 | 174 | ||||||||||||||||||||||||||||||
MULTIASISTENCIA, S.A. DE C.V. | MEXICO | INSURANCES SERVICES | — | 100.0 | 100.0 | 16,913 | 25,983 | 7,868 | 14,470 | 3,645 | ||||||||||||||||||||||||||||||
OPCION VOLCAN, S.A. | MEXICO | REAL ESTATE | — | 100.0 | 100.0 | 65,964 | 69,684 | 3,719 | 61,801 | 4,164 | ||||||||||||||||||||||||||||||
OPPLUS OPERACIONES Y SERVICIOS, S.A. (Antes STURGES) | SPAIN | SERVICES | 100.0 | — | 100.0 | 1,067 | 19,109 | 11,467 | 4,602 | 3,040 | ||||||||||||||||||||||||||||||
OPPLUS S.A.C | PERU | SERVICES | — | 100.0 | 100.0 | 600 | 1,710 | 938 | 754 | 18 |
(*) | Information on foreign companies at exchange rate on December 31, 2010 | |
(1) | The percentage of voting rights is the result of the agreements entered into with shareholders that enable the control of the entity. The ownership percentage is 46.1%. |
II-6
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | Profit | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | (Loss) | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12.31.10 | 12.31.10 | 12.31.10 | 12.31.10 | ||||||||||||||||||||||||||
Thousands of euros(*) | ||||||||||||||||||||||||||||||||||||
PARTICIPACIONES ARENAL, S.L. | SPAIN | INACTIVE | — | 100.0 | 100.0 | 7,574 | 7,582 | 4 | 7,553 | 25 | ||||||||||||||||||||||||||
PECRI INVERSION S.A | SPAIN | OTHER INVESTMENT COMPANIES | 100.0 | — | 100.0 | 78,500 | 95,512 | 17,013 | 97,355 | (18,856 | ) | |||||||||||||||||||||||||
PENSIONES BANCOMER, S.A. DE C.V. | MEXICO | INSURANCES SERVICES | — | 100.0 | 100.0 | 156,591 | 2,529,143 | 2,372,547 | 89,097 | 67,499 | ||||||||||||||||||||||||||
PHOENIX LOAN HOLDINGS, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 319,718 | 338,561 | 18,844 | 331,675 | (11,958 | ) | |||||||||||||||||||||||||
PI HOLDINGS NO. 1, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 57,372 | 57,768 | 397 | 58,917 | (1,546 | ) | |||||||||||||||||||||||||
PI HOLDINGS NO. 3, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 21,423 | 21,650 | 228 | 21,055 | 367 | ||||||||||||||||||||||||||
PI HOLDINGS NO. 4, INC. | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
PORT ARTHUR ABSTRACT & TITLE COMPANY | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 1,839 | 2,176 | 336 | 1,878 | (38 | ) | |||||||||||||||||||||||||
PREMEXSA, S.A. DE C.V. | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 375 | 1,282 | 571 | 463 | 248 | ||||||||||||||||||||||||||
PREVENTIS, S.A. | MEXICO | INSURANCES SERVICES | — | 90.3 | 90.3 | 11,130 | 28,533 | 16,379 | 8,316 | 3,838 | ||||||||||||||||||||||||||
PRO-SALUD, C.A | VENEZUELA | SERVICES | — | 58.9 | 58.9 | — | — | — | — | — | ||||||||||||||||||||||||||
PROMOCION EMPRESARIAL XX, S.A. | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | 1,039 | 12,641 | 11,112 | 1,120 | 409 | ||||||||||||||||||||||||||
PROMOTORA DE RECURSOS AGRARIOS, S.A. | SPAIN | SERVICES | 100.0 | — | 100.0 | 139 | 122 | — | 125 | (3 | ) | |||||||||||||||||||||||||
PROMOTORA RESIDENCIAL GRAN EUROPA, S.L. | SPAIN | REAL ESTATE | — | 58.5 | 58.5 | 184 | 339 | 26 | 384 | (71 | ) | |||||||||||||||||||||||||
PROVIDA INTERNACIONAL, S.A. | CHILE | PENSION FUNDS MANAGEMENT | — | 100.0 | 100.0 | 44,125 | 48,133 | 4,010 | 32,246 | 11,877 | ||||||||||||||||||||||||||
PROVINCIAL DE VALORES CASA DE BOLSA, C.A | VENEZUELA | FINANCIAL SERVICES | — | 90.0 | 90.0 | 2,344 | 11,277 | 7,966 | 1,362 | 1,949 | ||||||||||||||||||||||||||
PROVINCIAL SDAD.ADMIN.DE ENTIDADES DE INV.COLECTIVA, C.A | VENEZUELA | FINANCIAL SERVICES | — | 100.0 | 100.0 | 1,489 | 1,488 | 143 | 1,105 | 240 | ||||||||||||||||||||||||||
PROVIVIENDA ENTIDAD RECAUDADORA Y ADMIN.DE APORTES, S.A. | BOLIVIA | PENSION FUNDS MANAGEMENT | — | 100.0 | 100.0 | 776 | 2,913 | 2,066 | 707 | 140 | ||||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS (UK) LLP | UNITED KINGDOM | IN LIQUIDATION | — | 51.0 | 51.0 | — | 85 | 2,298 | (617 | ) | (1,596 | ) | ||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS (USA) LLC | UNITED STATES | IN LIQUIDATION | — | 100.0 | 100.0 | 7,212 | 1,293 | 201 | 1,163 | (71 | ) | |||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS HOLDINGS (USA) II INC. | UNITED STATES | IN LIQUIDATION | — | 100.0 | 100.0 | 72 | 68 | 42 | 25 | 1 | ||||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS HOLDINGS (USA) INC. | UNITED STATES | IN LIQUIDATION | 100.0 | — | 100.0 | 72 | 7,216 | 3,349 | 3,718 | 149 | ||||||||||||||||||||||||||
PROXIMA ALFA SERVICES LTD. | UNITED KINGDOM | FINANCIAL SERVICES | 100.0 | — | 100.0 | 105 | 2,342 | 1 | 2,364 | (23 | ) | |||||||||||||||||||||||||
RESIDENCIAL CUMBRES DE SANTA FE, S.A. DE C.V. | MEXICO | REAL ESTATE | — | 100.0 | 100.0 | 8,938 | 9,456 | 1,145 | 8,433 | (122 | ) | |||||||||||||||||||||||||
RIVER OAKS BANK BUILDING, INC. | UNITED STATES | REAL ESTATE | — | 100.0 | 100.0 | 24,530 | 29,231 | 4,701 | 16,014 | 8,516 | ||||||||||||||||||||||||||
RIVER OAKS TRUST CORPORATION | UNITED STATES | INACTIVE | — | 100.0 | 100.0 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
RIVERWAY HOLDINGS CAPITAL TRUST I | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 233 | 7,765 | 7,531 | 210 | 24 | ||||||||||||||||||||||||||
RWHC, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 542,101 | 542,734 | 634 | 539,968 | 2,132 | ||||||||||||||||||||||||||
S.GESTORA FONDO PUBL.REGUL.MERCADO HIPOT | SPAIN | INACTIVE | 77.2 | — | 77.2 | 138 | 213 | 67 | 146 | — | ||||||||||||||||||||||||||
SCALDIS FINANCE, S.A. | BELGIUM | INVESTMENT COMPANY | — | 100.0 | 100.0 | 3,416 | 3,652 | 145 | 3,514 | (7 | ) | |||||||||||||||||||||||||
SEGUROS BANCOMER, S.A. DE C.V. | MEXICO | INSURANCES SERVICES | 25.0 | 75.0 | 100.0 | 412,330 | 2,432,075 | 2,083,508 | 191,517 | 157,050 | ||||||||||||||||||||||||||
SEGUROS PROVINCIAL, C.A. | VENEZUELA | INSURANCES SERVICES | — | 100.0 | 100.0 | 31,340 | 53,778 | 22,546 | 16,946 | 14,286 | ||||||||||||||||||||||||||
SERVICIOS CORPORATIVOS BANCOMER, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 317 | 2,501 | 2,182 | 401 | (82 | ) | |||||||||||||||||||||||||
SERVICIOS CORPORATIVOS DE SEGUROS, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 1,099 | 6,000 | 4,899 | 858 | 243 | ||||||||||||||||||||||||||
SERVICIOS EXTERNOS DE APOYO EMPRESARIAL, S.A DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 3,603 | 5,266 | 1,663 | 3,304 | 299 | ||||||||||||||||||||||||||
SERVICIOS TECNOLOGICOS SINGULARES, S.A. | SPAIN | SERVICES | — | 100.0 | 100.0 | — | 20,216 | 24,042 | (297 | ) | (3,529 | ) | ||||||||||||||||||||||||
SMARTSPREAD LIMITED (UK) | UNITED KINGDOM | SERVICES | 100.0 | — | 100.0 | 1 | 137 | — | (188 | ) | 325 | |||||||||||||||||||||||||
SOCIEDAD DE ESTUDIOS Y ANALISIS FINANCIERO.,S.A. | SPAIN | COMERCIAL | 100.0 | — | 100.0 | 114,518 | 193,810 | 116 | 194,130 | (436 | ) | |||||||||||||||||||||||||
SOCIETE INMOBILIERE BBV D’ILBARRIZ | FRANCE | REAL ESTATE | — | 100.0 | 100.0 | 1,637 | 1,537 | 30 | 1,682 | (175 | ) | |||||||||||||||||||||||||
SOUTHEAST TEXAS TITLE COMPANY | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 529 | 727 | 198 | 529 | — |
(*) | Information on foreign companies at exchange rate on December 31, 2010 |
II-7
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the | ||||||||||||||||||||||||||||||||||||
Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | Profit | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | (Loss) | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12.31.10 | 12.31.10 | 12.31.10 | 12.31.10 | ||||||||||||||||||||||||||
Thousands of euros(*) | ||||||||||||||||||||||||||||||||||||
SPORT CLUB 18, S.A. | SPAIN | INVESTMENT COMPANY | 100.0 | — | 100.0 | 23,412 | 53,093 | 29,785 | 25,183 | (1,875 | ) | |||||||||||||||||||||||||
STATE NATIONAL CAPITAL TRUST I | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 352 | 11,580 | 11,228 | 339 | 13 | ||||||||||||||||||||||||||
STATE NATIONAL STATUTORY TRUST II | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 233 | 7,725 | 7,493 | 225 | 7 | ||||||||||||||||||||||||||
TEXAS LOAN SERVICES, LP. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 894,559 | 895,031 | 472 | 882,589 | 11,970 | ||||||||||||||||||||||||||
TEXAS REGIONAL STATUTORY TRUST I | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 1,159 | 38,627 | 37,468 | 1,123 | 36 | ||||||||||||||||||||||||||
TEXASBANC CAPITAL TRUST I | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 582 | 19,396 | 18,813 | 565 | 18 | ||||||||||||||||||||||||||
TMF HOLDING INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 7,601 | 10,388 | 2,787 | 7,354 | 247 | ||||||||||||||||||||||||||
TRAINER PRO GESTION DE ACTIVIDADES, S.A. | SPAIN | REAL ESTATE | — | 100.0 | 100.0 | 2,886 | 2,931 | — | 3,261 | (330 | ) | |||||||||||||||||||||||||
TRANSITORY CO | PANAMA | REAL ESTATE | — | 100.0 | 100.0 | 124 | 1,435 | 1,407 | 154 | (126 | ) | |||||||||||||||||||||||||
TUCSON LOAN HOLDINGS, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | 345,706 | 345,789 | 83 | 341,069 | 4,637 | ||||||||||||||||||||||||||
TWOENC, INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.0 | 100.0 | (1,164 | ) | 1,117 | 2,282 | (1,165 | ) | — | ||||||||||||||||||||||||
UNICOM TELECOMUNICACIONES S.DE R.L. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 1 | 3 | 2 | — | 1 | ||||||||||||||||||||||||||
UNIDAD DE AVALUOS MEXICO, S.A. DE CV | MEXICO | FINANCIAL SERVICES | — | 100.0 | 100.0 | 1,918 | 3,533 | 1,970 | 1,235 | 328 | ||||||||||||||||||||||||||
UNITARIA GESTION DE PATRIMONIOS INMOBILIARIOS | SPAIN | SERVICES | — | 100.0 | 100.0 | 2,410 | 2,633 | 1 | 2,624 | 8 | ||||||||||||||||||||||||||
UNIVERSALIDAD “E5” | COLOMBIA | FINANCIAL SERVICES | — | 100.0 | 100.0 | — | 3,250 | 1,085 | 1,888 | 277 | ||||||||||||||||||||||||||
UNIVERSALIDAD TIPS PESOSE-9 | COLOMBIA | FINANCIAL SERVICES | — | 100.0 | 100.0 | — | 94,309 | 81,086 | 3,882 | 9,341 | ||||||||||||||||||||||||||
UNO-E BANK, S.A. | SPAIN | BANKING | 67.4 | 32.7 | 100.0 | 174,751 | 1,361,488 | 1,255,492 | 107,729 | (1,733 | ) | |||||||||||||||||||||||||
URBANIZADORA SANT LLORENC, S.A. | SPAIN | INACTIVE | 60.6 | — | 60.6 | — | 108 | — | 108 | — | ||||||||||||||||||||||||||
VALANZA CAPITAL RIESGO S.G.E.C.R. S.A. UNIPERSONAL | SPAIN | VENTURE CAPITAL | 100.0 | — | 100.0 | 1,200 | 16,026 | 491 | 14,743 | 792 | ||||||||||||||||||||||||||
VIRTUAL DOC, S.L. | SPAIN | IN LIQUIDATION | — | 70.0 | 70.0 | — | 467 | 620 | 318 | (471 | ) | |||||||||||||||||||||||||
VISACOM, S.A. DE C.V. | MEXICO | SERVICES | — | 100.0 | 100.0 | 1,134 | 1,135 | — | 1,052 | 83 |
(*) | Information on foreign companies at exchange rate on December 31, 2010 |
II-8
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | ||||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Profit (Loss) | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12.31.10 | 12.31.10 | 12.31.10 | 12.31.10 | ||||||||||||||||||||||||||
Thousands of euros (*) | ||||||||||||||||||||||||||||||||||||
ALTURA MARKETS, SOCIEDAD DE VALORES, S.A. | SPAIN | SECURITIES DEALER | 50.0 | — | 50.0 | 12,600 | 1,038,431 | 998,424 | 30,381 | 9,626 | ||||||||||||||||||||||||||
ECASA, S.A. | CHILE | FINANCIAL SERVICES | — | 51.0 | 51.0 | 5,515 | 7,102 | 7,018 | (4,943 | ) | 5,027 | |||||||||||||||||||||||||
FORUM DISTRIBUIDORA, S,A, | CHILE | FINANCIAL SERVICES | — | 51.0 | 51.0 | 7,480 | 107,008 | 97,848 | 6,995 | 2,165 | ||||||||||||||||||||||||||
FORUM SERVICIOS FINANCIEROS, S.A. | CHILE | FINANCIAL SERVICES | — | 51.0 | 51.0 | 56,493 | 719,366 | 643,861 | 29,489 | 46,016 | ||||||||||||||||||||||||||
INVERSIONES PLATCO, C.A | VENEZUELA | FINANCIAL SERVICES | — | 50.0 | 50.0 | 11,832 | 26,803 | 3,137 | 24,972 | (1,306 | ) | |||||||||||||||||||||||||
PSA FINANCE ARGENTINA COMPAÑIA FINANCIERA, S.A. | ARGENTINA | FINANCIAL SERVICES | — | 50.0 | 50.0 | 12,451 | 137,358 | 112,456 | 18,707 | 6,195 | ||||||||||||||||||||||||||
RENTRUCKS, ALQUILER Y SERVICIOS DE TRANSPORTE, S.A. | SPAIN | FINANCIAL SERVICES | — | 50.0 | 50.0 | 3,959 | 42,281 | 34,364 | 11,358 | (3,441 | ) |
Information on foreign companies at exchange rate on December 31, 2010 | ||
(*) | Jointly controlled companies accounted for using the equity method |
III-1
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Affiliate Entity Data | |||||||||||||||||||||||||||||||||||||||
Net | Liabilities | |||||||||||||||||||||||||||||||||||||||
Carrying | Assets of | as of | Equity | Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 12/31/10 | 12/31/10 | 12/31/10 | 12/31/10 | ||||||||||||||||||||||||||||||
Thousands of euros (*) | ||||||||||||||||||||||||||||||||||||||||
ADQUIRA ESPAÑA, S.A. | SPAIN | SERVICES | — | 40.0 | 40.0 | 2,037 | 17,162 | 9,357 | 6,872 | 934(2 | ) | |||||||||||||||||||||||||||||
ALMAGRARIO, S.A. | COLOMBIA | SERVICES | — | 35.4 | 35.4 | 3,956 | 31,858 | 15,261 | 20,406 | (3,809 | )(2) | |||||||||||||||||||||||||||||
ALTITUDE SOFTWARE SGPS, S.A.(*) | PORTUGAL | SERVICES | — | 30.5 | 30.5 | 9,842 | 18,619 | 9,994 | 6,144 | 2,481(2 | ) | |||||||||||||||||||||||||||||
AUREA, S.A. (CUBA) | CUBA | REAL ESTATE | — | 49.0 | 49.0 | 3,922 | 8,421 | 811 | 7,485 | 125(2 | ) | |||||||||||||||||||||||||||||
BBVA ELCANO EMPRESARIAL II, S.C.R., S.A. | SPAIN | VENTURE CAPITAL | 45.0 | — | 45.0 | 37,491 | 104,885 | 15,355 | 89,454 | 77(2 | ) | |||||||||||||||||||||||||||||
BBVA ELCANO EMPRESARIAL, S.C.R., S.A. | SPAIN | VENTURE CAPITAL | 45.0 | — | 45.0 | 37,487 | 104,958 | 15,355 | 89,457 | 146(2 | ) | |||||||||||||||||||||||||||||
CAMARATE GOLF, S.A.(*) | SPAIN | REAL ESTATE | — | 26.0 | 26.0 | 4,091 | 39,396 | 18,764 | 17,798 | 2,835(3 | ) | |||||||||||||||||||||||||||||
CHINA CITIC BANK LIMITED CNCB | CHINA | BANKING | 15.0 | — | 15.0 | 3,557,759 | 180,608,192 | 169,601,243 | 9,478,880 | 1,528,069(2 | ) | |||||||||||||||||||||||||||||
CITIC INTERNATIONAL FINANCIAL HOLDINGS LIMITED CIFH | HONG-KONG | FINANCIAL SERVICES | 29.7 | — | 29.7 | 464,339 | 11,063,029 | 9,619,672 | 1,357,742 | 85,616(1 | )(2) | |||||||||||||||||||||||||||||
COMPAÑIA ESPAÑOLA DE FINANCIACION DEL DESARROLLO S.A. | SPAIN | FINANCIAL SERVICES | 21.8 | — | 21.8 | 14,413 | 61,967 | 7,126 | 53,086 | 1,755(2 | ) | |||||||||||||||||||||||||||||
COMPAÑIA MEXICANA DE PROCESAMIENTO, S.A. DE C.V. | MEXICO | SERVICES | — | 50.0 | 50.0 | 4,706 | 8,854 | 1,558 | 6,564 | 732(2 | ) | |||||||||||||||||||||||||||||
CORPORACION IBV PARTICIPACIONES EMPRESARIALES, S.A.(*) | SPAIN | INVESTMENT COMPANY | — | 50.0 | 50.0 | 71,027 | 808,482 | 371,929 | 402,838 | 33,715(1 | )(2) | |||||||||||||||||||||||||||||
FERROMOVIL 3000, S.L.(*) | SPAIN | SERVICES | — | 20.0 | 20.0 | 6,275 | 649,334 | 619,575 | 27,470 | 2,289(2 | ) | |||||||||||||||||||||||||||||
FERROMOVIL 9000, S.L.(*) | SPAIN | SERVICES | — | 20.0 | 20.0 | 4,614 | 413,798 | 391,994 | 19,410 | 2,394(2 | ) | |||||||||||||||||||||||||||||
FIDEICOMISO F/70191-2 PUEBLA(*) | MEXICO | REAL ESTATE | — | 25.0 | 25.0 | 5,017 | 44,360 | 11,668 | 28,189 | 4,503(3 | ) | |||||||||||||||||||||||||||||
I+D MEXICO, S.A. DE C.V.(*) | MEXICO | SERVICES | — | 50.0 | 50.0 | 22,127 | 70,158 | 34,068 | 29,080 | 7,010(1 | )(2) | |||||||||||||||||||||||||||||
IMOBILIARIA DUQUE D’AVILA, S.A.(*) | PORTUGAL | REAL ESTATE | — | 50.0 | 50.0 | 5,346 | 24,149 | 13,713 | 10,058 | 377(2 | ) | |||||||||||||||||||||||||||||
LAS PEDRAZAS GOLF, S.L.(*) | SPAIN | REAL ESTATE | — | 50.0 | 50.0 | 9,647 | 66,286 | 49,189 | 27,279 | (10,183 | )(2) | |||||||||||||||||||||||||||||
OCCIDENTAL HOTELES MANAGEMENT, S.L.(*) | SPAIN | SERVICES | — | 41.7 | 41.7 | 87,579 | 756,194 | 493,789 | 336,310 | (73,906 | )(1)(2) | |||||||||||||||||||||||||||||
PARQUE REFORMA SANTA FE, S.A. DE C.V. | MEXICO | REAL ESTATE | — | 30.0 | 30.0 | 3,544 | 66,363 | 55,103 | 9,923 | 1,337(3 | ) | |||||||||||||||||||||||||||||
PROMOTORA METROVACESA, S.L(*) | SPAIN | REAL ESTATE | — | 50.0 | 50.0 | 4,412 | 76,919 | 64,518 | 14,491 | (2,089 | )(3) | |||||||||||||||||||||||||||||
ROMBO COMPAÑIA FINANCIERA, S.A. | ARGENTINA | FINANCIAL SERVICES | — | 40.0 | 40.0 | 9,849 | 86,232 | 65,463 | 13,868 | 6,901(2 | ) | |||||||||||||||||||||||||||||
SERVICIOS DE ADMINISTRACION PREVISIONAL, S.A. | CHILE | PENSION FUNDS MANAGEMENT | — | 37.9 | 37.9 | 5,460 | 15,263 | 4,506 | 6,387 | 4,370(2 | ) | |||||||||||||||||||||||||||||
SERVICIOS ELECTRONICOS GLOBALES, S.A. DE C.V. | MEXICO | SERVICES | — | 46.1 | 46.1 | 4,992 | 14,226 | 5,297 | 8,811 | 118(2 | ) | |||||||||||||||||||||||||||||
SERVICIOS ON LINE PARA USUARIOS MULTIPLES, S.A. (SOLIUM)(*) | SPAIN | SERVICES | — | 66.7 | 66.7 | 4,056 | 7,710 | 4,488 | 2,902 | 320(2 | ) | |||||||||||||||||||||||||||||
SERVIRED SOCIEDAD ESPAÑOLA DE MEDIOS DE PAGO, S.A. | SPAIN | FINANCIAL SERVICES | 20.4 | 0.9 | 21.4 | 15,489 | 206,836 | 78,920 | 119,659 | 8,257(1 | )(2) | |||||||||||||||||||||||||||||
TELEFONICA FACTORING, S.A. | SPAIN | FINANCIAL SERVICES | 30.0 | — | 30.0 | 3,694 | 101,408 | 90,408 | 6,849 | 4,151(2 | ) | |||||||||||||||||||||||||||||
TUBOS REUNIDOS, S.A. | SPAIN | INDUSTRIAL | — | 23.0 | 23.0 | 50,726 | 664,368 | 436,637 | 226,672 | 1,059(1 | )(2) | |||||||||||||||||||||||||||||
VITAMEDICA S.A DE C.V.(*) | MEXICO | INSURANCES SERVICES | — | 51.0 | 51.0 | 2,586 | 9,833 | 4,407 | 4,964 | 462(2 | ) | |||||||||||||||||||||||||||||
OTHER COMPANIES | 90,554 | |||||||||||||||||||||||||||||||||||||||
�� | TOTAL | 4,547,037 | 196,149,259 | 182,110,166 | 12,429,047 | 1,610,047 |
(*) | Jointly controlled companies accounted for using the equity method | |
(**) | Data relating to the latest financial statements approved at the date of preparation of these notes to the consolidated statements | |
Information on foreign companies at exchange rate on reference date | ||
(1) | Consolidated Data | |
(2) | Financial statetement as of December 31, 2009 | |
(3) | Financial statetement as of December 31, 2008 |
IV-1
Table of Contents
Thousands of Euros | % of Voting Rights | |||||||||||||||||||||||
Price Paid in the | Fair Value of | Total Voting | ||||||||||||||||||||||
Transactions + | Equity | % Participation | Rights | Effective Date for | ||||||||||||||||||||
Expenses directly | Instruments | (net) | Controlled after | the Trasaction | ||||||||||||||||||||
attributable to the | Issued for the | Acquired | the | (or Notification | ||||||||||||||||||||
Company | Type of Transaction | Activity | Transactions | Transactions | in the Period | Transactions | Date) | |||||||||||||||||
APLICA SOLUCIONES TECNOLOGICAS CHILE LIMITADA | FOUNDING | SERVICES | 7 | — | 99.99 | % | 99.99 | % | 4-1-2010 | |||||||||||||||
MONTEALMENARA GOLF, S.L.* | ACQUISITION | REAL ESTATE | 6,515 | — | 50.00 | % | 100.00 | % | 26-2-2010 | |||||||||||||||
GRUPO PROFESIONAL PLANEACION Y PROYECTOS, S.A. DE C.V. | ACQUISITION | SERVICES | 904 | — | 14.02 | % | 58.40 | % | 26-2-2010 | |||||||||||||||
BANCO CONTINENTAL, S.A. | ACQUISITION | BANKING | 998 | — | 0.07 | % | 92.15 | % | 31-3-2010 | |||||||||||||||
ECONTA GESTION INTEGRAL, S.L.* | ACQUISITION | SERVICES | 591 | — | 29.92 | % | 100.00 | % | 22-4-2010 | |||||||||||||||
REAL ESTATE | ||||||||||||||||||||||||
BBVA PROPIEDAD F.I.I. | ACQUISITION | INVESTMENT COMPANY | 55,774 | — | 3.89 | % | 99.57 | % | 30-4-2010 | |||||||||||||||
BANCO CONTINENTAL, S.A. | ACQUISITION | BANKING | 1,490 | — | 0.07 | % | 92.22 | % | 31-5-2010 | |||||||||||||||
REAL ESTATE | ||||||||||||||||||||||||
BBVA PROPIEDAD F.I.I. | ACQUISITION | INVESTMENT COMPANY | — | — | 0.15 | % | 99.75 | % | 31-5-2010 | |||||||||||||||
RENTRUCKS, ALQUILER Y SoS DE TRANSPORTE, S.A.* | ACQUISITION | FINANCIAL SERVICES | 8 | — | 7.08 | % | 50.00 | % | 30-6-2010 | |||||||||||||||
BBVA SEGUROS DE VIDA, S.A. | ACQUISITION | INSURANCES SERVICES | — | — | 0.00 | % | 100.00 | % | 31-7-2010 | |||||||||||||||
OCCIVAL, S.A. | ACQUISITION | INVESTMENT COMPANY | — | — | 0.00 | % | 100.00 | % | 31-7-2010 | |||||||||||||||
IBERDROLA SERVICIOS FINANCIEROS, E.F.C., S.A.* | ACQUISITION | FINANCIAL SERVICES | 1,849 | — | 16.00 | % | 100.00 | % | 31-7-2010 | |||||||||||||||
REAL ESTATE | ||||||||||||||||||||||||
BBVA PROPIEDAD F.I.I. | ACQUISITION | INVESTMENT COMPANY | — | — | 0.25 | % | 100.00 | % | 31-8-2010 | |||||||||||||||
APLICA TECNOLOGIA AVANZADA OPERADORA, S.A. DE C.V. | FOUNDING | SERVICES | 3 | — | 100.00 | % | 100.00 | % | 24-9-2010 | |||||||||||||||
APLICA TECNOLOGIA AVANZADA SERVICIOS, S.A. DE C.V. | FOUNDING | SERVICES | 3 | — | 100.00 | % | 100.00 | % | 24-9-2010 | |||||||||||||||
BANCO PROMOCIÓN | ACQUISITION | BANKING | 13 | — | 0.00 | % | 99.84 | % | 30-11-2010 | |||||||||||||||
BANCO CONTINENTAL, S.A. | ACQUISITION | BANKING | — | — | 0.02 | % | 92.24 | % | 31-12-2010 | |||||||||||||||
FIDEICOMISO HARES BBVA BANCOMER F/47997-2 | ACQUISITION | REAL ESTATE | 8,833 | — | 30.31 | % | 80.31 | % | 31-12-2010 |
(*) | Notification realized |
V-1
Table of Contents
% of Voting Rights | ||||||||||||||||||||
Effective Date for | ||||||||||||||||||||
% Participation | Total Voting Rights | the Transaction | ||||||||||||||||||
Type of | Profit (Loss) | Sold | Controlled after the | (or Notification | ||||||||||||||||
Company | Transaction | Activity | in the Transaction | in the Period | Disposal | Date) | ||||||||||||||
Thousands of euros | ||||||||||||||||||||
BBVA LEASING S.A.COMPAÑIA DE FINANCIAMIENTO COMERCIAL | MERGER | FINANCIAL SERVICES | — | 100.00 | % | — | 04-01-10 | |||||||||||||
GFIS HOLDINGS INC. | MERGER | FINANCIAL SERVICES | — | 100.00 | % | — | 01-02-10 | |||||||||||||
GUARANTY FINANCIAL INSURANCE SOLUTIONS, INC. | MERGER | FINANCIAL SERVICES | — | 100.00 | % | — | 01-02-10 | |||||||||||||
BBVAE-COMMERCE, S.A. | MERGER | SERVICES | — | 100.00 | % | — | 15-03-10 | |||||||||||||
UNIVERSALIDAD- BANDO GRANAHORRAR | LIQUIDATION | FINANCIAL SERVICES | 557 | 100.00 | % | — | 30-04-10 | |||||||||||||
PROXIMA ALFA MANAGING MEMBER LLC | LIQUIDATION | FINANCIAL SERVICES | (1 | ) | 100.00 | % | — | 30-04-10 | ||||||||||||
BIBJ MANAGEMENT, LTD. | LIQUIDATION | SERVICES | — | 100.00 | % | — | 31-05-10 | |||||||||||||
BIBJ NOMINEES, LTD. | LIQUIDATION | SERVICES | — | 100.00 | % | — | 31-05-10 | |||||||||||||
CANAL COMPANY, LTD. | LIQUIDATION | FINANCIAL SERVICES | (191 | ) | 100.00 | % | — | 31-05-10 | ||||||||||||
COMPASS TRUST IV | LIQUIDATION | FINANCIAL SERVICES | (1 | ) | 100.00 | % | — | 31-05-10 | ||||||||||||
APLICA SOLUCIONES GLOBALES, S.L. | LIQUIDATION | SERVICES | (14 | ) | 100.00 | % | — | 31-07-10 | ||||||||||||
BBVA PRIVANZA (JERSEY), LTD. | LIQUIDATION | FINANCIAL SERVICES | (1,272 | ) | 100.00 | % | — | 31-08-10 | ||||||||||||
BBVA CAPITAL FUNDING, LTD. | LIQUIDATION | FINANCIAL SERVICES | 1,723 | 100.00 | % | — | 31-08-10 | |||||||||||||
ADPROTEL STRAND, S.L. | DISPOSAL | REAL ESTATE | 27,139 | 100.00 | % | — | 29-09-10 | |||||||||||||
PRESTACIONES ADMINISTRATIVAS LIMITADA-PROEX LIMITADA | MERGER | FINANCIAL SERVICES | — | 100.00 | % | — | 01-09-10 | |||||||||||||
ALTITUDE INVESTMENTS LIMITED | LIQUIDATION | FINANCIAL SERVICES | (86 | ) | 51.00 | % | — | 05-10-10 | ||||||||||||
ATUEL FIDEICOMISOS, S.A. | MERGER | SERVICES | — | 100.00 | % | — | 26-10-10 | |||||||||||||
EMPRESA INSTANT CREDIT, C.A. | LIQUIDATION | REAL ESTATE | — | 100.00 | % | — | 18-11-10 | |||||||||||||
INVERSIONES T, C.A. | LIQUIDATION | REAL ESTATE | — | 100.00 | % | — | 18-11-10 | |||||||||||||
PROXIMA ALFA INVESTMENTS, SGIIC, S.A. | LIQUIDATION | FINANCIAL SERVICES | — | 100.00 | % | — | 12-11-10 | |||||||||||||
ST. JOHNS INVESTMENTS MANAGMENT CO | MERGER | FINANCIAL SERVICES | — | 100.00 | % | — | 30-11-10 | |||||||||||||
DEUSTO, S.A. DE INVERSION MOBILIARIA | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 10-12-10 | |||||||||||||
ELANCHOVE, S.A. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 10-12-10 | |||||||||||||
FINANCIERA ESPAÑOLA, S.A. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 10-12-10 | |||||||||||||
OCCIVAL, S.A. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 10-12-10 | |||||||||||||
BBVA SECURITIES HOLDINGS, S.A. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 21-12-10 | |||||||||||||
ALMACENES GENERALES DE DEPOSITO, S.A.E. DE | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 21-12-10 | |||||||||||||
MULTIVAL, S.A. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 21-12-10 | |||||||||||||
S.A. DE PROYECTOS INDUSTRIALES CONJUNTOS | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 21-12-10 | |||||||||||||
HOLDING DE PARTICIPACIONES INDUSTRIALES 2000, S.A. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 21-12-10 | |||||||||||||
MIRADOR DE LA CARRASCOSA, S.L. | MERGER | REAL ESTATE | — | 100.00 | % | — | 28-12-10 | |||||||||||||
MONTEALMENARA GOLF, S.L. | MERGER | REAL ESTATE | — | 100.00 | % | — | 28-12-10 | |||||||||||||
BBVA GLOBAL MARKETS RESEARCH, S.A. | LIQUIDATION | FINANCIAL SERVICES | 46 | 100.00 | % | — | 15-12-10 | |||||||||||||
ANIDA CARTERA SINGULAR, S.L, | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 28-12-10 | |||||||||||||
BBVA PARTICIPACIONES INTERNACIONAL, S.L. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 22-12-10 | |||||||||||||
BROOKLINE INVESTMENTS,S.L. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 22-12-10 | |||||||||||||
ARAGON CAPITAL, S.L. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 22-12-10 | |||||||||||||
GRELAR GALICIA, S.A. | MERGER | INVESTMENT COMPANY | — | 100.00 | % | — | 21-12-10 | |||||||||||||
MARQUES DE CUBAS 21, S.L, | MERGER | REAL ESTATE | — | 100.00 | % | — | 28-12-10 |
V-2
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||
Price Paid in the | Fair Value of | Total Voting | ||||||||||||||||||||||
Transactions + | Equity | % Participation | Rights | Effective Date for | ||||||||||||||||||||
Expenses Directly | Instruments | (Net) | Controlled After | the Transaction | ||||||||||||||||||||
Type of | Attributable to the | Issued for the | Acquired | the | (or Notification | |||||||||||||||||||
Company | Transaction | Activity | Transactions | Transactions | in the Period | Transactions | Date) | |||||||||||||||||
Thousands of Euros | ||||||||||||||||||||||||
TELEFONICA FACTORING COLOMBIA, S.A. | ACQUISITION | COMERCIAL | 350 | — | 24.30 | % | 24.30 | % | 31-1-2010 | |||||||||||||||
MICROMEDIOS DIGITALES, S.A. | ACQUISITION | SERVICES | — | — | — | 48.99 | % | 26-2-2010 | ||||||||||||||||
OPERADORA HITO URBANO, S.A. DE C.V. | FOUNDING | SERVICES | 1 | — | 35.00 | % | 35.00 | % | 26-2-2010 | |||||||||||||||
CHINA CITIC BANK LIMITED CNCB | ACQUISITION | BANKING | 1,197,475 | — | 4.93 | % | 15.00 | % | 30-4-2010 | |||||||||||||||
TELEFONICA FACTORING CHILE, S.A. | FOUNDING | COMERCIAL | 139 | — | 24.30 | % | 24.30 | % | 31-5-2010 | |||||||||||||||
DESARROLLO URBANÍSTICO CHAPULTEPEC, S.A.P.I. DE C.V. | FOUNDING | SERVICES | 280 | — | 50.00 | % | 50.00 | % | 24-6-2010 | |||||||||||||||
SOLIUM MEXICO, S.A. DE C.V. | FOUNDING | SERVICES | — | — | 100.00 | % | 100.00 | % | 4-11-2010 | |||||||||||||||
ALTITUDE SOFTWARE SGPS, S.A. | ACQUISITION | SERVICES | 9,842 | — | 30.47 | % | 30.47 | % | 29-12-2010 | |||||||||||||||
% of Voting Rights | Effective Date for | |||||||||||||||||||
% Participation | Total Voting Rights | the Transaction | ||||||||||||||||||
Profit (Loss) | Sold | Controlled after the | (or Notification | |||||||||||||||||
Company | Type of Transaction | Activity | in the Transaction | in the Period | Disposal | Date) | ||||||||||||||
Thousands of euros | ||||||||||||||||||||
SERVICIO MERCANTIL DE OCCIDENTE, S.A. | LIQUIDATION | SERVICES | — | 25.00 | % | — | 31-05-10 | |||||||||||||
INMUEBLES MADARIAGA PROMOCIONES, S.L. | LIQUIDATION | REAL ESTATE | (34 | ) | 50.0 | % | — | 31-05-10 | ||||||||||||
SDAD PARA LA PRESTACION SoS ADMINISTRATIVOS, S.L. | DISPOSAL | SERVICES | 485 | 30.0 | % | — | 30-06-10 | |||||||||||||
INMOBILIARIA RESIDENCIAL LOS ARROYOS, S.A. | CHARGE-OFF | REAL ESTATE | — | 33.3 | % | — | 30-06-10 | |||||||||||||
PRUBI, S.A. | CHARGE-OFF | REAL ESTATE | — | 24.0 | % | — | 30-06-10 | |||||||||||||
FIDEICOMISO F/401555-8 CUATRO BOSQUES | DISPOSAL | REAL ESTATE | 85 | 50.0 | % | — | 31-08-10 | |||||||||||||
MOBIPAY INTERNATIONAL, S.A. | LIQUIDATION | SERVICES | 1 | 50.0 | % | — | 06-08-10 | |||||||||||||
TUBOS REUNIDOS, S.A. | DISPOSAL | INDUSTRIAL | 141 | 0.1 | % | 23.25 | % | 30-09-10 | ||||||||||||
TUBOS REUNIDOS, S.A. | DISPOSAL | INDUSTRIAL | 278 | 0.2 | % | 23.03 | % | 31-10-10 | ||||||||||||
FIDEICOMISOS DE ADMINISTRACION (COLOMBIA) | DISPOSAL | SERVICES | 30 | 20.5 | % | — | 30-11-10 | |||||||||||||
TUBOS REUNIDOS, S.A. | DISPOSAL | INDUSTRIAL | 28 | 0.0 | % | 23.00 | % | 30-11-10 | ||||||||||||
MICROMEDIOS DIGITALES, S.A. | DISPOSAL | SERVICES | (129 | ) | 49.0 | % | — | 31-12-10 | ||||||||||||
TUBOS REUNIDOS, S.A. | DISPOSAL | INDUSTRIAL | 53 | 0.0 | % | 22.95 | % | 31-12-10 |
V-3
Table of Contents
% Voting rights | Effective Date | |||||||||||||||
% Participation | for the Transaction | |||||||||||||||
Type of | Acquired (Sold) | Totally Controlled | (or Notification | |||||||||||||
Company | Transaction | Activity | in the Period | after Transaction | Date) | |||||||||||
INMOBILIARIA COLONIAL, S.A.(*)(1) | ACQUISITION | REAL ESTATE | 3.302 | % | 3.302 | % | 18-3-2010 | |||||||||
INMOBILIARIA COLONIAL, S.A.(*)(2) | DILUCION PARTIC. | REAL ESTATE | 2.519 | % | 0.783 | % | 24-3-2010 | |||||||||
ACS, ACTIVIDADES DE CONSTRUCCIÓN Y SERVICIOS, S.A.(*) | ACQUISITION | SERVICES | 0.888 | % | 3.560 | % | 13-5-2010 | |||||||||
TECNICAS REUNIDAS, S.A.(*) | DISPOSAL | SERVICES | 0.434 | % | 2.685 | % | 29-6-2010 | |||||||||
ACS, ACTIVIDADES DE CONSTRUCCIÓN Y SERVICIOS, S.A.(*) | DISPOSAL | SERVICES | 0.010 | % | 2.998 | % | 27-10-2010 | |||||||||
ACS, ACTIVIDADES DE CONSTRUCCIÓN Y SERVICIOS, S.A.(*) | ACQUISITION | SERVICES | 0.150 | % | 3.022 | % | 10-11-2010 | |||||||||
REPSOL YPF, S.A.(*) | ACQUISITION | SERVICES | 0.803 | % | 3.284 | % | 28-12-2010 |
(*) | Notifications realized | |
(1) | Operation of change of ownership in favor of BBVA by enforcement actions of 58,012,836 shares. | |
(2) | Dilution of our percentage of investment for increase of the issuer resulting from the conversion into shares of convertifbles obligations. |
V-4
Table of Contents
% of Voting Rights | ||||||||||||||
Controlled by the Bank | ||||||||||||||
Company | Activity | Direct | Indirect | Total | ||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA CHILE, S.A. | BANKING | — | 68.2 | 68.2 | ||||||||||
BANCO PROVINCIAL S.A. — BANCO UNIVERSAL | BANKING | 1.9 | 53.8 | 55.6 | ||||||||||
BBVA & PARTNERS ALTERNATIVE INVESTMENT A.V., S.A. | SECURITIES DEALER | 70.0 | — | 70.0 | ||||||||||
BBVA INMOBILIARIA E INVERSIONES, S.A. | REAL ESTATE | — | 68.1 | 68.1 | ||||||||||
DESARROLLO URBANISTICO DE CHAMARTÍN, S.A. | REAL ESTATE | — | 72.5 | 72.5 | ||||||||||
EL OASIS DE LAS RAMBLAS, S.L. | REAL ESTATE | — | 70.0 | 70.0 | ||||||||||
ESTACIÓN DE AUTOBUSES CHAMARTÍN, S.A. | SERVICES | — | 51.0 | 51.0 | ||||||||||
FIDEICOMISO HARES BBVA BANCOMER F/47997-2 | REAL ESTATE | — | 80.3 | 80.3 | ||||||||||
GESTIÓN DE PREVISIÓN Y PENSIONES, S.A. | PENSION FUND MANAGEMENT | 60.0 | — | 60.0 | ||||||||||
GRUPO PROFESIONAL PLANEACION Y PROYECTOS, S.A. DE C.V. | SERVICES | — | 58.4 | 58.4 | ||||||||||
HOLDING CONTINENTAL, S.A. | INVESTMENT COMPANY | 50.0 | — | 50.0 | ||||||||||
INVERSIONES BANPRO INTERNATIONAL INC. N.V. | IN LIQUIDATION | 48.0 | — | 48.0 | ||||||||||
INVERSIONES P.H.R.4, C.A. | IN LIQUIDATION | — | 60.5 | 60.5 | ||||||||||
JARDINES DE SARRIENA, S.L. | REAL ESTATE | — | 85.0 | 85.0 | ||||||||||
PROMOTORA RESIDENCIAL GRAN EUROPA, S.L. | REAL ESTATE | — | 58.5 | 58.5 | ||||||||||
PRO-SALUD, C.A. | SERVICES | — | 58.9 | 58.9 | ||||||||||
VIRTUAL DOC, S.L. | IN LIQUIDATION | — | 70.0 | 70.0 |
VI-1
Table of Contents
Total Securitized | Total Securitized | |||||||||||
Origination | Exposures at the | Exposures as of | ||||||||||
Securitization Fund | Company | Date | Origination Date | December 31, 2010 | ||||||||
Thousands of euros | ||||||||||||
BBVA AUTOS I FTA | BBVA, S.A. | 10/2004 | 1,000,000 | 92,588 | ||||||||
BBVA-3 FTPYME FTA | BBVA, S.A. | 11/2004 | 1,000,023 | 106,617 | ||||||||
BBVA AUTOS 2 FTA | BBVA, S.A. | 12/2005 | 1,000,000 | 294,326 | ||||||||
BBVA HIPOTECARIO 3 FTA | BBVA, S.A. | 06/2005 | 1,450,013 | 346,643 | ||||||||
BBVA-4 PYME FTA | BBVA, S.A. | 09/2005 | 1,250,025 | 141,447 | ||||||||
BBVA CONSUMO 1 FTA | BBVA, S.A. | 05/2006 | 1,499,999 | 415,721 | ||||||||
BBVA-5 FTPYME FTA | BBVA, S.A. | 10/2006 | 1,900,022 | 402,815 | ||||||||
BCL MUNICIPIOS I FTA | BBVA, S.A. | 06/2000 | 1,205,059 | 154,217 | ||||||||
2 PS RBS (ex ABN) | BBVA SDAD DE LEASING INMOBILIARIO, S.A. | 09/2001 | 8,982 | 6,393 | ||||||||
2 PS INTERAMERICANA | BBVA CHILE, S.A. | 09/2004 | 14,149 | 6,830 | ||||||||
2 PS INTERAMERICANA | BBVA SDAD DE LEASING INMOBILIARIO, S.A. | 09/2004 | 20,211 | 10,175 | ||||||||
BBVA-2 FTPYME ICO FTA | BBVA, S.A. | 12/2000 | 899,393 | 13,848 | ||||||||
BBVA CONSUMO 2 FTA | BBVA, S.A. | 11/2006 | 1,500,000 | 582,053 | ||||||||
BBVA CONSUMO 3 FTA | FINANZIA BANCO DE CRÉDITO, S.A. | 04/2008 | 651,788 | 354,982 | ||||||||
BBVA CONSUMO 3 FTA | BBVA, S.A. | 04/2008 | 323,212 | 153,544 | ||||||||
BBVA CONSUMO 4 FTA | FINANZIA BANCO DE CRÉDITO, S.A. | 12/2009 | 684,530 | 687,429 | ||||||||
BBVA CONSUMO 4 FTA | BBVA, S.A. | 12/2009 | 415,470 | 390,774 | ||||||||
BBVA CONSUMO 5 FTA | FINANZIA BANCO DE CRÉDITO, S.A. | 12/2010 | 827,819 | 821,700 | ||||||||
BBVA CONSUMO 5 FTA | BBVA, S.A. | 12/2010 | 72,180 | 72,185 | ||||||||
BBVA UNIVERSALIDAD E10 | BBVA COLOMBIA, S.A. | 03/2009 | 29,033 | 15,838 | ||||||||
BBVA UNIVERSALIDAD E11 | BBVA COLOMBIA, S.A. | 05/2009 | 19,166 | 11,175 | ||||||||
BBVA UNIVERSALIDAD E12 | BBVA COLOMBIA, S.A. | 08/2009 | 30,789 | 17,566 | ||||||||
BBVA UNIVERSALIDAD E9 | BBVA COLOMBIA, S.A. | 12/2008 | 55,052 | 28,747 | ||||||||
BBVA EMPRESAS 1 FTA | BBVA, S.A. | 11/2007 | 1,450,002 | 436,485 | ||||||||
BBVA EMPRESAS 2 FTA | BBVA, S.A. | 03/2009 | 2,850,062 | 1,654,301 | ||||||||
BBVA EMPRESAS 3 FTA | BBVA, S.A. | 12/2009 | 2,600,011 | 1,921,757 | ||||||||
BBVA EMPRESAS 4 FTA | BBVA, S.A. | 07/2010 | 1,700,025 | 1,513,222 | ||||||||
BACOMCB 07 | BBVA BANCOMER, S.A. | 12/2007 | 159,755 | 107,803 | ||||||||
BACOMCB 08 | BBVA BANCOMER, S.A. | 03/2008 | 69,783 | 50,165 | ||||||||
BACOMCB 08U | BBVA BANCOMER, S.A. | 08/2008 | 344,198 | 291,279 | ||||||||
BACOMCB08-2 | BBVA BANCOMER, S.A. | 12/2008 | 351,925 | 269,905 | ||||||||
BACOMCB 09 | BBVA BANCOMER, S.A. | 08/2009 | 395,526 | 344,219 | ||||||||
FannieMae- Lender No. 227300000 | COMPASS BANK | 12/2001 | 184,116 | 22,763 | ||||||||
FANNIE MAE — LENDER No. 227300027 | COMPASS BANK | 12/2003 | 279,356 | 86,990 | ||||||||
BBVA-FINANZIA AUTOS 1 FTA | FINANZIA BANCO DE CRÉDITO, S.A. | 04/2007 | 800,000 | 309,971 | ||||||||
GAT FTGENCAT 2005 FTA | BBVA, S.A. | 12/2005 | 249,943 | 46,081 | ||||||||
GC GENCAT II FTA | BBVA, S.A. | 03/2003 | 224,967 | 10,517 | ||||||||
BBVA RMBS 1 FTA | BBVA, S.A. | 02/2007 | 2,500,000 | 1,787,623 | ||||||||
BBVA RMBS 2 FTA | BBVA, S.A. | 03/2007 | 5,000,000 | 3,536,270 | ||||||||
BBVA RMBS 3 FTA | BBVA, S.A. | 07/2007 | 3,000,000 | 2,366,245 | ||||||||
BBVA RMBS 4 FTA | BBVA, S.A. | 11/2007 | 4,900,001 | 3,508,024 | ||||||||
BBVA RMBS 5 FTA | BBVA, S.A. | 05/2008 | 5,000,001 | 4,053,846 | ||||||||
BBVA RMBS 6 FTA | BBVA, S.A. | 11/2008 | 4,995,005 | 4,113,627 | ||||||||
BBVA RMBS 7 FTA | BBVA, S.A. | 11/2008 | 8,500,005 | 6,530,597 | ||||||||
BBVA RMBS 9 FTA | BBVA, S.A. | 04/2010 | 1,295,101 | 1,258,406 | ||||||||
BBVA LEASING 1 FTA | BBVA, S.A. | 06/2007 | 2,500,000 | 921,962 | ||||||||
BBVA-6 FTPYME FTA | BBVA, S.A. | 06/2007 | 1,500,101 | 452,240 | ||||||||
BBVA-7 FTGENCAT FTA | BBVA, S.A. | 02/2008 | 250,010 | 98,519 | ||||||||
BBVA-8 FTPYME FTA | BBVA, S.A. | 07/2008 | 1,100,127 | 539,816 | ||||||||
BBVA RMBS 8 FTA | BBVA, S.A. | 07/2009 | 1,220,000 | 1,089,584 |
VII-1
Table of Contents
Prevailing | ||||||||||||||||||||||||
December | December | December | Interest Rate | Maturity | ||||||||||||||||||||
Issuer Entity and Issued Date | Currency | 2010 | 2009 | 2008 | at 2010 | Date | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Issues in Euros | ||||||||||||||||||||||||
BBVA | ||||||||||||||||||||||||
July-96 | EUR | 27 | 27 | 27 | 9.37 | % | 22-12-16 | |||||||||||||||||
November-03 | EUR | — | 750 | 750 | — | 12-11-15 | ||||||||||||||||||
October-04 | EUR | 992 | 992 | 992 | 4.37 | % | 20-10-19 | |||||||||||||||||
February-07 | EUR | 297 | 297 | 297 | 4.50 | % | 16-02-22 | |||||||||||||||||
March-08 | EUR | 125 | 125 | 125 | 6.03 | % | 03-03-33 | |||||||||||||||||
July-08 | EUR | 100 | 100 | 100 | 6.20 | % | 04-07-23 | |||||||||||||||||
September-09 | EUR | 2,000 | 2,000 | — | 5.00 | % | 15-10-14 | |||||||||||||||||
Subtotal | EUR | 3,541 | 4,291 | 2,291 | ||||||||||||||||||||
BBVA GLOBAL FINANCE, LTD.(*) | ||||||||||||||||||||||||
July-99 | EUR | 73 | 73 | 73 | 6.35 | % | 16-10-15 | |||||||||||||||||
February-00 | EUR | — | 442 | 442 | — | 25-02-10 | ||||||||||||||||||
October-01 | EUR | 60 | 60 | 60 | 5.73 | % | 10-10-11 | |||||||||||||||||
October-01 | EUR | 40 | 40 | 40 | 6.08 | % | 10-10-16 | |||||||||||||||||
October-01 | EUR | 50 | 50 | 50 | 1.58 | % | 15-10-16 | |||||||||||||||||
November-01 | EUR | 55 | 55 | 55 | 1.75 | % | 02-11-16 | |||||||||||||||||
December-01 | EUR | 56 | 56 | 56 | 1.72 | % | 20-12-16 | |||||||||||||||||
Subtotal | EUR | 334 | 776 | 776 | ||||||||||||||||||||
BBVA SUBORDINATED CAPITAL, S.A.U.(*) | ||||||||||||||||||||||||
May-05 | EUR | 423 | 456 | 484 | 1.34 | % | 23-05-17 | |||||||||||||||||
October-05 | EUR | 126 | 130 | 150 | 1.28 | % | 13-10-20 | |||||||||||||||||
October-05 | EUR | 205 | 231 | 250 | 1.25 | % | 20-10-17 | |||||||||||||||||
October-06 | EUR | 822 | 900 | 1,000 | 1.33 | % | 24-10-16 | |||||||||||||||||
April-07 | EUR | 623 | 700 | 750 | 1.11 | % | 03-04-17 | |||||||||||||||||
April-07 | EUR | 100 | 100 | 100 | 3.32 | % | 04-05-22 | |||||||||||||||||
May-08 | EUR | 50 | 50 | 50 | 0.00 | % | 19-05-23 | |||||||||||||||||
July-08 | EUR | 20 | 20 | 20 | 6.11 | % | 22-07-18 | |||||||||||||||||
Subtotal | EUR | 2,369 | 2,587 | 2,804 | ||||||||||||||||||||
BBVA BANCOMER, S.A. de C.V. | ||||||||||||||||||||||||
May-07 | EUR | 601 | 560 | 610 | 5.00 | % | 17-07-17 | |||||||||||||||||
Subtotal | EUR | 601 | 560 | 610 | ||||||||||||||||||||
ALTURA MARKETS A.V., S.A. | ||||||||||||||||||||||||
November-07 | EUR | 2 | 2 | 3 | 3.03 | % | 29-11-17 | |||||||||||||||||
Subtotal | EUR | 2 | 2 | 3 | ||||||||||||||||||||
Total issued in Euros | 6,847 | 8,216 | 6,484 | |||||||||||||||||||||
(*) | As of March 23, 2010 issues of BBVA Capital Funding, Ltd. have been assumed by BBVA Global Finance Ltd. | |
VIII-1
Table of Contents
Prevailing | ||||||||||||||||||||||||
December | December | December | Interest Rate | Maturity | ||||||||||||||||||||
Issuer Entity and Issued Date | Currency | 2010 | 2009 | 2008 | at 2010 | Date | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Issues in foreign currency | ||||||||||||||||||||||||
BBVA PUERTO RICO, S.A. | ||||||||||||||||||||||||
September-04 | USD | 38 | 35 | 36 | 1.74 | % | 23-09-14 | |||||||||||||||||
September-06 | USD | 28 | 26 | 27 | 5.76 | % | 29-09-16 | |||||||||||||||||
September-06 | USD | 22 | 21 | 22 | 0.86 | % | 29-09-16 | |||||||||||||||||
Subtotal | USD | 88 | 82 | 85 | ||||||||||||||||||||
BBVA GLOBAL FINANCE, LTD.(*) | ||||||||||||||||||||||||
December-95 | USD | 96 | 139 | 144 | 7.00 | % | 01-12-25 | |||||||||||||||||
October-95 | JPY | 92 | 75 | 79 | 6.00 | % | 26-10-15 | |||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA, CHILE | ||||||||||||||||||||||||
Various issues | CLP | 624 | 336 | 287 | Various | Various | ||||||||||||||||||
Subtotal | CLP | 624 | 336 | 287 | ||||||||||||||||||||
BBVA BANCOMER, S.A. de C.V. | ||||||||||||||||||||||||
July-05 | USD | — | 241 | — | — | 22-07-15 | ||||||||||||||||||
May-07 | USD | 373 | 345 | — | 6.00 | % | 17-05-22 | |||||||||||||||||
April-10 | USD | 670 | — | — | 7.00 | % | 22-04-20 | |||||||||||||||||
Subtotal | USD | 1,043 | 586 | — | ||||||||||||||||||||
September-06 | MXN | 151 | 132 | — | 5.00 | % | 18-09-14 | |||||||||||||||||
July-08 | MXN | 73 | 63 | — | 5.00 | % | 16-07-18 | |||||||||||||||||
October-08 | MXN | 181 | 156 | — | 6.00 | % | 24-09-18 | |||||||||||||||||
December-08 | MXN | 166 | 146 | — | 6.00 | % | 26-11-20 | |||||||||||||||||
January-09 | MXN | 2 | 2 | — | 6.00 | % | 26-11-20 | |||||||||||||||||
February-09 | MXN | 2 | 2 | — | 6.00 | % | 26-11-20 | |||||||||||||||||
March-09 | MXN | 1 | 1 | — | 6.00 | % | 26-11-20 | |||||||||||||||||
April-09 | MXN | 1 | 1 | — | 6.00 | % | 26-11-20 | |||||||||||||||||
June-09 | MXN | 158 | 138 | — | 6.00 | % | 07-06-19 | |||||||||||||||||
July-09 | MXN | 5 | 5 | — | 6.00 | % | 07-06-19 | |||||||||||||||||
September-09 | MXN | 1 | 1 | — | 6.00 | % | 07-06-19 | |||||||||||||||||
Subtotal | MXN | 741 | 647 | — | ||||||||||||||||||||
BBVA SUBORDINATED CAPITAL, S.A.U. | ||||||||||||||||||||||||
October-05 | JPY | 184 | 150 | 159 | 2.75 | % | 22-10-35 | |||||||||||||||||
Subtotal | JPY | 184 | 150 | 159 | ||||||||||||||||||||
October-05 | GBP | — | 277 | 315 | — | 21-10-15 | ||||||||||||||||||
March-06 | GBP | 326 | 325 | 315 | 5.00 | % | 31-03-16 | |||||||||||||||||
March-07 | GBP | 284 | 282 | 262 | 5.75 | % | 11-03-18 | |||||||||||||||||
Subtotal | GBP | 610 | 884 | 892 | ||||||||||||||||||||
RIVERWAY HOLDING CAPITAL TRUST I | ||||||||||||||||||||||||
March-01 | USD | 7 | 7 | 7 | 10.18 | % | 08-06-31 | |||||||||||||||||
Subtotal | USD | 7 | 7 | 7 | ||||||||||||||||||||
TEXAS REGIONAL STATUTORY TRUST I | ||||||||||||||||||||||||
February-04 | USD | 37 | 35 | 36 | 3.15 | % | 17-03-34 | |||||||||||||||||
Subtotal | USD | 37 | 35 | 36 | ||||||||||||||||||||
(*) | As of March 23, 2010 issues of BBVA Capital Funding, Ltd. have been assumed by BBVA Global Finance Ltd. |
VIII-2
Table of Contents
Prevailing | ||||||||||||||||||||||||
December | December | December | Interest Rate | Maturity | ||||||||||||||||||||
Issuer Entity and Issued Date | Currency | 2010 | 2009 | 2008 | at 2010 | Date | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
STATE NATIONAL CAPITAL TRUST I | ||||||||||||||||||||||||
July-03 | USD | 11 | 10 | 11 | 3.35 | % | 30-09-33 | |||||||||||||||||
Subtotal | USD | 11 | 10 | 11 | ||||||||||||||||||||
STATE NATIONAL STATUTORY TRUST II | ||||||||||||||||||||||||
March-04 | USD | 7 | 7 | 7 | 3.09 | % | 17-03-34 | |||||||||||||||||
Subtotal | USD | 7 | 7 | 7 | ||||||||||||||||||||
TEXASBANC CAPITAL TRUST I | ||||||||||||||||||||||||
July-04 | USD | 19 | 17 | 18 | 2.89 | % | 23-07-34 | |||||||||||||||||
Subtotal | USD | 19 | 17 | 18 | ||||||||||||||||||||
COMPASS BANK | ||||||||||||||||||||||||
March-05 | USD | 212 | 195 | 201 | 5.50 | % | 01-04-20 | |||||||||||||||||
March-06 | USD | 195 | 180 | 186 | 5.90 | % | 01-04-26 | |||||||||||||||||
September-07 | USD | 261 | 242 | 250 | 6.40 | % | 01-10-17 | |||||||||||||||||
Subtotal | USD | 668 | 617 | 637 | ||||||||||||||||||||
BBVA COLOMBIA, S.A. | ||||||||||||||||||||||||
August-06 | COP | 156 | 136 | 128 | 7.92 | % | 28-08-11 | |||||||||||||||||
Subtotal | COP | 156 | 136 | 128 | ||||||||||||||||||||
BBVA PARAGUAY, S.A. | ||||||||||||||||||||||||
Various | PYG | 2 | 2 | 2 | Various | Various | ||||||||||||||||||
Various | USD | 6 | 6 | 6 | Various | Various | ||||||||||||||||||
BANCO CONTINENTAL, S.A. | ||||||||||||||||||||||||
December-06 | USD | 22 | 21 | 22 | 1.84 | % | 15-02-17 | |||||||||||||||||
May-07 | USD | 15 | 14 | 9 | 6.00 | % | 14-05-27 | |||||||||||||||||
September-07 | USD | 15 | 14 | 14 | 1.59 | % | 24-09-17 | |||||||||||||||||
February-08 | USD | 15 | 14 | 14 | 6.47 | % | 28-02-28 | |||||||||||||||||
June-08 | USD | 22 | 21 | 14 | 3.11 | % | 15-06-18 | |||||||||||||||||
November-08 | USD | 15 | 14 | 14 | 2.89 | % | 15-02-19 | |||||||||||||||||
Subtotal | 104 | 98 | 87 | |||||||||||||||||||||
May-07 | PEN | 11 | 10 | 9 | 5.85 | % | 07-05-22 | |||||||||||||||||
June-07 | PEN | 16 | 14 | 14 | 3.88 | % | 18-06-32 | |||||||||||||||||
November-07 | PEN | 15 | 13 | 12 | 3.91 | % | 19-11-32 | |||||||||||||||||
July-08 | PEN | 13 | 11 | 11 | 3.22 | % | 08-07-23 | |||||||||||||||||
September-08 | PEN | 14 | 12 | 12 | 3.23 | % | 09-09-23 | |||||||||||||||||
December-08 | PEN | 8 | 7 | 7 | 4.30 | % | 15-12-33 | |||||||||||||||||
October-10 | PEN | 150 | — | — | 7.38 | % | 15-12-33 | |||||||||||||||||
Subtotal | PEN | 227 | 67 | 65 | ||||||||||||||||||||
Total issues in foreign currencies (Millions of Euros) | 4,722 | 3,901 | 2,650 | |||||||||||||||||||||
VIII-3
Table of Contents
December 2010 | December 2009 | December 2008 | ||||||||||||||||||||||
Amount Issued | Amount Issued | Amount Issued | ||||||||||||||||||||||
Issuer Entity and Issued Date | Currency | (Millions) | Currency | (Millions) | Currency | (Millions) | ||||||||||||||||||
BBVA International, Ltd. | — | — | — | — | — | — | ||||||||||||||||||
December-02 | EUR | 500 | EUR | 500 | EUR | 500 | ||||||||||||||||||
BBVA Capital Finance, S.A.U. | — | — | — | — | — | — | ||||||||||||||||||
December-03 | EUR | 350 | EUR | 350 | EUR | 350 | ||||||||||||||||||
July-04 | EUR | 500 | EUR | 500 | EUR | 500 | ||||||||||||||||||
December-04 | EUR | 1,125 | EUR | 1,125 | EUR | 1,125 | ||||||||||||||||||
December-08 | EUR | 1,000 | EUR | 1,000 | EUR | 1,000 | ||||||||||||||||||
BBVA International Preferred, S.A.U | — | — | — | — | — | — | ||||||||||||||||||
September-05 | EUR | 85 | EUR | 85 | EUR | 85 | ||||||||||||||||||
September-06 | EUR | 164 | EUR | 164 | EUR | 164 | ||||||||||||||||||
April-07 | USD | 600 | USD | 600 | USD | 600 | ||||||||||||||||||
July-07 | GBP | 31 | GBP | 31 | GBP | 31 | ||||||||||||||||||
October-09 | EUR | 645 | EUR | 645 | EUR | — | ||||||||||||||||||
October-09 | GBP | 251 | GBP | 251 | GBP | — | ||||||||||||||||||
Banco Provincial, S.A. — Banco Universal | — | — | — | — | — | — | ||||||||||||||||||
October-07 | VEF | 150 | VEF | 150 | VEF | 150 | ||||||||||||||||||
November-07 | VEF | 58 | VEF | 58 | VEF | 58 | ||||||||||||||||||
Phoenix Loan Holdings Inc. | — | — | — | — | — | — | ||||||||||||||||||
November-00 | USD | 25 | USD | 25 | USD | 25 |
VIII-4
Table of Contents
Mexican | Other Foreign | Total Foreign | ||||||||||||||
2010 | USD | Pesos | Currencies | Currencies | ||||||||||||
Millions of euros | ||||||||||||||||
Assets - | ||||||||||||||||
Cash and balances with Central Banks | 4,358 | 6,002 | 5,333 | 15,693 | ||||||||||||
Financial assets held for trading | 2,347 | 11,142 | 4,031 | 17,520 | ||||||||||||
Available-for-sale financial assets | 8,547 | 10,150 | 5,102 | 23,799 | ||||||||||||
Loans and receivables | 61,994 | 35,465 | 31,288 | 128,747 | ||||||||||||
Investments in entities accounted for using the equity method | 5 | 112 | 3,658 | 3,775 | ||||||||||||
Tangible assets | 804 | 916 | 655 | 2,375 | ||||||||||||
Other assets | 3,972 | 2,768 | 1,830 | 8,570 | ||||||||||||
Total | 82,027 | 66,555 | 51,897 | 200,479 | ||||||||||||
Liabilities- | ||||||||||||||||
Financial liabilities held for trading | 1,420 | 3,349 | 1,073 | 5,842 | ||||||||||||
Financial liabilities at amortised cost | 90,444 | 50,708 | 42,645 | 183,797 | ||||||||||||
Other liabilities | 928 | 5,976 | 2,889 | 9,793 | ||||||||||||
Total | 92,792 | 60,033 | 46,607 | 199,432 | ||||||||||||
Mexican | Other Foreign | Total Foreign | ||||||||||||||
2009 | USD | Pesos | Currencies | Currencies | ||||||||||||
Millions of euros | ||||||||||||||||
Assets - | ||||||||||||||||
Cash and balances with Central Banks | 3,198 | 5,469 | 4,278 | 12,945 | ||||||||||||
Financial assets held for trading | 2,607 | 12,121 | 2,459 | 17,187 | ||||||||||||
Available-for-sale financial assets | 8,451 | 7,277 | 5,227 | 20,955 | ||||||||||||
Loans and receivables | 59,400 | 27,618 | 27,953 | 114,971 | ||||||||||||
Investments in entities accounted for using the equity method | 5 | 112 | 2,328 | 2,445 | ||||||||||||
Tangible assets | 753 | 777 | 653 | 2,183 | ||||||||||||
Other assets | 3,699 | 2,123 | 1,763 | 7,585 | ||||||||||||
Total | 78,113 | 55,497 | 44,661 | 178,271 | ||||||||||||
Liabilities- | ||||||||||||||||
Financial liabilities held for trading | 893 | 2,507 | 968 | 4,368 | ||||||||||||
Financial liabilities at amortised cost | 121,735 | 43,300 | 42,502 | 207,537 | ||||||||||||
Other liabilities | 1,050 | 4,316 | 2,835 | 8,201 | ||||||||||||
Total | 123,678 | 50,123 | 46,305 | 220,106 | ||||||||||||
IX-1
Table of Contents
Mexican | Other Foreign | Total Foreign | ||||||||||||||
2008 | USD | Pesos | Currencies | Currencies | ||||||||||||
Millions of euros | ||||||||||||||||
Assets - | ||||||||||||||||
Cash and balances with Central Banks | 2,788 | 5,179 | 3,612 | 11,579 | ||||||||||||
Financial assets held for trading | 4,137 | 13,184 | 3,003 | 20,324 | ||||||||||||
Available-for-sale financial assets | 10,321 | 5,613 | 4,846 | 20,780 | ||||||||||||
Loans and receivables | 65,928 | 26,168 | 28,072 | 120,168 | ||||||||||||
Investments in entities accounted for using the equity method | 5 | 103 | 481 | 589 | ||||||||||||
Tangible assets | 802 | 729 | 485 | 2,016 | ||||||||||||
Other assets | 2,093 | 1,843 | 1,716 | 5,652 | ||||||||||||
Total | 86,074 | 52,819 | 42,215 | 181,108 | ||||||||||||
Liabilities- | ||||||||||||||||
Financial liabilities held for trading | 1,192 | 3,919 | 1,057 | 6,168 | ||||||||||||
Financial liabilities at amortised cost | 116,910 | 42,288 | 42,097 | 201,295 | ||||||||||||
Other liabilities | 1,005 | 3,896 | 2,565 | 7,466 | ||||||||||||
Total | 119,107 | 50,103 | 45,719 | 214,929 | ||||||||||||
IX-2
Table of Contents
Six Months | Six Months | Six Months | Six Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||
2010 | 2010 | 2009 | 2009 | |||||||||||||
Millions of euros | ||||||||||||||||
INTEREST AND SIMILAR INCOME | 10,457 | 10,677 | 12,911 | 10,864 | ||||||||||||
INTEREST AND SIMILAR EXPENSES | (3,520 | ) | (4,294 | ) | (6,053 | ) | (3,840 | ) | ||||||||
NET INTEREST INCOME | 6,937 | 6,383 | 6,858 | 7,024 | ||||||||||||
DIVIDEND INCOME | 257 | 272 | 248 | 195 | ||||||||||||
SHARE OF PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 151 | 184 | 27 | 93 | ||||||||||||
FEE AND COMMISSION INCOME | 2,678 | 2,704 | 2,638 | 2,667 | ||||||||||||
FEE AND COMMISSION EXPENSES | (406 | ) | (439 | ) | (457 | ) | (418 | ) | ||||||||
NET GAINS (LOSSES) ON FINANCIAL ASSETS AND LIABILITIES | 1,067 | 374 | 446 | 446 | ||||||||||||
NET EXCHANGE DIFFERENCES | 56 | 397 | 352 | 300 | ||||||||||||
OTHER OPERATING INCOME | 1,771 | 1,772 | 1,755 | 1,645 | ||||||||||||
OTHER OPERATING EXPENSES | (1,631 | ) | (1,617 | ) | (1,487 | ) | (1,666 | ) | ||||||||
GROSS INCOME | 10,880 | 10,030 | 10,380 | 10,286 | ||||||||||||
ADMINISTRATION COSTS | (4,015 | ) | (4,192 | ) | (3,734 | ) | (3,928 | ) | ||||||||
Personnel expenses | (2,364 | ) | (2,450 | ) | (2,291 | ) | (2,360 | ) | ||||||||
General and administrative expenses | (1,651 | ) | (1,742 | ) | (1,443 | ) | (1,568 | ) | ||||||||
DEPRECIATION AND AMORTIZATION | (365 | ) | (396 | ) | (354 | ) | (343 | ) | ||||||||
PROVISIONS (NET) | (270 | ) | (212 | ) | (152 | ) | (306 | ) | ||||||||
IMPAIRMENT LOSSES ON FINANCIAL ASSETS (NET) | (2,419 | ) | (2,299 | ) | (1,945 | ) | (3,528 | ) | ||||||||
NET OPERATING INCOME | 3,811 | 2,931 | 4,195 | 2,181 | ||||||||||||
IMPAIRMENT LOSSES ON OTHER ASSETS (NET) | (196 | ) | (293 | ) | (271 | ) | (1,347 | ) | ||||||||
GAINS (LOSSES) ON DERECOGNIZED ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE | 11 | 30 | 9 | 11 | ||||||||||||
NEGATIVE GOODWILL | 1 | — | — | 99 | ||||||||||||
GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS | 24 | 103 | 70 | 789 | ||||||||||||
INCOME BEFORE TAX | 3,651 | 2,771 | 4,003 | 1,733 | ||||||||||||
INCOME TAX | (941 | ) | (486 | ) | (961 | ) | (180 | ) | ||||||||
INCOME FROM CONTINUING TRANSACTIONS | 2,710 | 2,285 | 3,042 | 1,553 | ||||||||||||
INCOME FROM DISCONTINUED TRANSACTIONS (NET) | — | — | — | — | ||||||||||||
NET INCOME | 2,710 | 2,285 | 3,042 | 1,553 | ||||||||||||
Net Income attributed to parent company | 2,527 | 2,079 | 2,799 | 1,411 | ||||||||||||
Net income attributed to non-controlling interests | 183 | 206 | 243 | 142 |
Six Months | Six Months Ended | |||||||||||||||
Ended June 30, | Six Months Ended | June 30, | Six Months Ended | |||||||||||||
2010 | December 31, 2010 | 2009 | December 31, 2009 | |||||||||||||
Euros | ||||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
Basic earnings per share | 0.63 | 0.54 | 0.73 | 0.35 | ||||||||||||
Diluted earnings per share | 0.63 | 0.54 | 0.73 | 0.35 |
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Adjusted acquisition cost | The acquisition cost of the securities less accumulated amortizations, plus interest accrued, but not net of any other valuation adjustments. | |
Amortized cost | The amortized cost of a financial asset is the amount at which it was measured at initial recognition minus principal repayments, plus or minus, as warranted, the cumulative amount taken to profit or loss using the effective interest rate method of any difference between the initial amount and the maturity amount, and minus any reduction for impairment or change in measured value. | |
Assets leased out under operating lease | Lease arrangements that are not finance leases are designated operating leases. | |
Associates | Companies in which the Group is able to exercise significant influence, without having control. Significant influence is deemed to exist when the Group owns 20% or more of the voting rights of an investee directly or indirectly. | |
Available-for-sale financial assets | Available-for-sale (AFS) financial assets are debt securities that are not classified as held-to-maturity investments or as financial assets designated at fair value through profit or loss (FVTPL) and equity instruments that are not subsidiaries, associates or jointly controlled entities and have not been designated as at FVTPL. | |
Basic earnings per share | Calculated by dividing profit or loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period | |
Business combination | The merger of two or more entities or independent businesses into a single entity or group of entities. | |
Cash flow hedges | Derivatives that hedge the exposure to variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction and could effect profit or loss. | |
Commissions and fees | Income and expenses relating to commissions and similar fees are recognized in the consolidated income statement using criteria that vary according to their nature. The most significant income and expense items in this connection are: | |
• Feed and commissions relating linked to financial assets and liabilities measured at fair value through profit or loss, which are recognized when collected. | ||
• Fees and commissions arising from transactions or services that are provided over a period of time, which are recognized over the life of these transactions or services. | ||
• Fees and commissions generated by a single act are accrued upon execution of that act. | ||
Contingencies | Current obligations arising as a result of past events, certain in terms of nature at the balance sheet date but uncertain in terms of amount and/or cancellation date, settlement of which is deemed likely to entail an outflow of resources embodying economic benefits. | |
Contingent commitments | Possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. |
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Contingent risks | Transactions through which the entity guarantees commitments assumed by third parties in respect of financial guarantees granted or other types of contracts. | |
Current tax assets | Taxes recoverable over the next twelve months. | |
Current tax liabilities | Corporate income tax payable on taxable profit for the year and other taxes payable in the next twelve months. | |
Debt obligations/certificates | Obligations and other interest-bearing securities that create or evidence a debt on the part of their issuer, including debt securities issued for trading among an open group of investors, that accrue interest, implied or explicit, whose rate, fixed or benchmarked to other rates, is established contractually, and take the form of securities or book-entries, irrespective of the issuer. | |
Deferred tax assets | Taxes recoverable in future years, including loss carryforwards or tax credits for deductions and tax rebates pending application. | |
Deferred tax liabilities | Income taxes payable in subsequent years. | |
Defined benefit commitments | Post-employment obligation under which the entity, directly or indirectly via the plan, retains the contractual or implicit obligation to pay remuneration directly to employees when required or to pay additional amounts if the insurer, or other entity required to pay, does not cover all the benefits relating to the services rendered by the employees when insurance policies do not cover all of the corresponding post-employees benefits. | |
Defined contribution commitments | Defined contribution plans are retirement benefit plans under which amounts to be paid as retirement benefits are determined by contributions to a fund together with investment earnings thereon. The employer’s obligations in respect of its employees current and prior years’ employment service are discharged by contributions to the fund. | |
Deposits from central banks | Deposits of all classes, including loans and money market operations, received from the Bank of Spain and other central banks. | |
Deposits from credit institutions | Deposits of all classes, including loans and money market operations received, from credit entities. | |
Deposits from customers | Redeemable cash balances received by the entity, with the exception of debt certificates, money market operations through counterparties and subordinated liabilities, that are not received from either central banks or credit entities. This category also includes cash deposits and consignments received that can be readily withdrawn. |
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Diluted earnings per share | This calculation is similar to that used to measure basic earnings per share, except that the weighted average number of shares outstanding is adjusted to reflect the potential dilutive effect of any stock options, warrants and convertible debt instruments outstanding the year. For the purpose of calculating diluted earnings per share, an entity shall assume the exercise of dilutive warrants of the entity. The assumed proceeds from these instruments shall be regarded as having been received from the issue of ordinary shares at the average market price of ordinary shares during the period. The difference between the number of ordinary shares issued and the number of ordinary shares that would have been issued at the average market price of ordinary shares during the period shall be treated as an issue of ordinary shares for no consideration. Such shares are dilutive and are added to the number of ordinary shares outstanding in the calculation of diluted earnings per share. | |
Early retirements | Employees that no longer render their services to the entity but which, without being legally retired, remain entitled to make economic claims on the entity until they formally retire. | |
Economic capital | Eligible capital for regulatory capital adequacy calculations. | |
Effective interest rate | Discount rate that exactly equals the value of a financial instrument with the cash flows estimated over the expected life of the instrument based on its contractual period as well as its anticipated amortization, but without taking the future losses of credit risk into consideration. | |
Equity | The residual interest in an entity’s assets after deducting its liabilities. It includes owner or venturer contributions to the entity, at incorporation and subsequently, unless they meet the definition of liabilities, and accumulated net profits or losses, fair value adjustments affecting equity and, if warranted, minority interests. | |
Equity instruments | An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. | |
Equity method | The equity method is a method of accounting whereby the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the Group’s share of net assets of the investee, adjusted for dividends received and other equity eliminations. | |
Exchange/translation differences | Gains and losses generated by currency trading and the differences arising on translating monetary items denominated in foreign currency to the functional currency, exchange differences on foreign currency non-monetary assets accumulated in equity and taken to profit or loss when the assets are sold and gains and losses realized on the disposal of assets at entities with a functional currency other than the euro. | |
Fair value | The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. | |
Fair value hedges | Derivatives that hedge the exposure of the fair value of assets and liabilities to movements in interest rates and/or exchange rates designated as a hedged risk. | |
Fees | See Commissions, fees and similar items |
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Financial guarantees | A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument, irrespective of its instrumentation. These guarantees may take the form of deposits, technical or financial guarantees, irrevocable letters of credit issued or confirmed by the entity, insurance contracts or credit derivatives in which the entity sells credit protection, among others. | |
Financial instrument | A financial instrument is any contract that gives rise to a financial asset of one entity and to a financial liability or equity instrument of another entity. | |
Financial liabilities at amortized cost | Financial liabilities that do not meet the definition of financial liabilities designated at fair value through profit or loss and arise from the financial entities’ ordinary activities to capture funds, regardless of their instrumentation or maturity. | |
Full consolidation | • preparing consolidated financial statements, an entity combines the balance sheets of the parent and its subsidiaries line by line by adding together like items of assets, liabilities and equity. Intragroup balances and transactions, including amounts payable and receivable, are eliminated in full. | |
• Group entity income statement income and expense headings are similarly combined line by line into the consolidated income statement, having made the following consolidation eliminations: a) income and expenses in respect of intragroup transactions are eliminated in full. b) profits and losses resulting from intragroup transactions are similarly eliminated. | ||
• The carrying amount of the parent’s investment and the parent’s share of equity in each subsidiary are eliminated. | ||
Gains or losses on financial assets and liabilities, net | This heading reflects fair value changes in financial instruments - except for changes attributable to accrued interest upon application of the interest rate method and asset impairment losses (net) recognized in the income statement - as well as gains or losses generated by their sale - except for gains or losses generated by the disposal of investments in subsidiaries, jointly controlled entities and associates an of securities classified as held to maturity. | |
Goodwill | Goodwill acquired in a business combination represents a payment made by the acquirer in anticipation of future economic benefits from assets that are not able to be individually identified and separately recognized. | |
Hedges of net investments in foreign operations | Foreign currency hedge of a net investment in a foreign operation. | |
Held-to-maturity investments | Held-to-maturity investments are financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity. |
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Held for trading (assets and liabilities) | Financial assets and liabilities acquired or incurred principally for the purpose of selling or repurchasing them in the near term with a view to profiting from variations in their prices or by exploiting existing differences between their bid and ask prices. | |
This category also includes financial derivatives not qualifying for hedge accounting, and in the case of borrowed securities, financial liabilities originated by the firm sale of financial assets acquired under repurchase agreements or received on loan (“short positions”). | ||
Impaired/doubtful/non-performing portfolio | Financial assets whose carrying amount is higher than their recoverable value, prompting the entity to recognize the corresponding impairment loss | |
Impaired financial assets | A financial asset is deemed impaired, and accordingly restated to fair value, when there is objective evidence of impairment as a result of one or more events that give rise to: | |
1. A measurable decrease in the estimated future cash flows since the initial recognition of those assets in the case of debt instruments (loans and receivables and debt securities). | ||
2. A significant or prolonged drop in fair value below cost in the case of equity instruments. | ||
Income from equity instruments | Dividends and income on equity instruments collected or announced during the year corresponding to profits generated by investees after the ownership interest is acquired. Income is recognized gross, i.e., without deducting any withholdings made, if any. | |
Insurance contracts linked to pensions | The fair value of insurance contracts written to cover pension commitments. | |
Inventories | Assets, other than financial instruments, under production, construction or development, held for sale during the normal course of business, or to be consumed in the production process or during the rendering of services. Inventories include land and other properties held for sale at the real estate development business. | |
Investment properties | Investment property is property (land or a building — or part of a building — or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for own use or sale in the ordinary course of business. | |
Jointly controlled entities | Companies over which the entity exercises control but are not subsidiaries are designated “jointly controlled entities”. Joint control is the contractually agreed sharing of control over an economic activity or undertaking by two or more entities, or controlling parties. The controlling parties agree to share the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. It exists only when the strategic financial and operating decisions require unanimous consent of the controlling parties. | |
Leases | A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time, a stream of cash flows that is essentially equivalent to the combination of principal and interest payments under a loan agreement. |
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Liabilities associated with non-current assets held for sale | The balance of liabilities directly associated with assets classified as non-current assets held for sale, including those recognized under liabilities in the entity’s balance sheet at the balance sheet date corresponding to discontinued operations. | |
Liabilities under insurance contracts | The technical reserves of direct insurance and inward reinsurance recorded by the consolidated entities to cover claims arising from insurance contracts in force at period-end. | |
Loans and advances to customers | Loans and receivables, irrespective of their type, granted to third parties that are not credit entities and that are not classified as money market operations through counterparties. | |
Loans and receivables | Financing extended to third parties, classified according to their nature, irrespective of the borrower type and the instrumentation of the financing extended, including finance lease arrangements where the consolidated subsidiaries act as lessors. | |
Minority interests | Minority interest is that portion of the profit or loss and net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent, including minority interests in the profit or loss of consolidated subsidiaries for the reporting period. | |
Mortgage-backed bonds | Fixed-income securities guaranteed with the mortgage loans for the issuing entity, which, in accordance with current legislation to that effect, are not subject to the issuance of mortgage bonds. | |
Non-current assets held for sale | A non-current asset or disposal group, whose carrying amount is expected to be realized through a sale transaction, rather than through continuing use, and which meets the following requirements: | |
a) it is immediately available for sale in its present condition at the balance sheet date, i.e. only normal procedures are required for the sale of the asset. | ||
b) the sale is considered highly probable. | ||
Other equity instruments | This heading reflects the increase in equity resulting from various forms of owner contributions, retained earnings, restatements of the financial statements and valuation adjustments. | |
Other financial assets/liabilities at fair value through profit or loss | • Assets and liabilities that are deemed hybrid financial assets and liabilities and for which the fair value of the embedded derivatives cannot be reliably determined. | |
• These are financial assets managed jointly with “Liabilities under insurance contracts” valued at fair value, in combination with derivatives written with a view to significantly mitigating exposure to changes in these contracts’ fair value, or in combination with financial liabilities and derivatives designed to significantly reduce global exposure to interest rate risk. | ||
These headings include customer loans and deposits effected via so-called unit-linked life insurance contracts, in which the policyholder assumes the investment risk. | ||
Own/treasury shares | The amount of own equity instruments held by the entity. |
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Personnel expenses | All compensation accrued during the year in respect of personnel on the payroll, under permanent or temporary contracts, irrespective of their jobs or functions, irrespective of the concept, including the current costs of servicing pension plans, own share based compensation schemes and capitalized personnel expenses. Amounts reimbursed by the state Social Security or other welfare entities in respect of employee illness are deducted from personnel expenses. | |
Post-employment benefits | Retirement benefit plans are arrangements whereby an enterprise provides benefits for its employees on or after termination of service. | |
Property, plant and equipment/tangible assets | Buildings, land, fixtures, vehicles, computer equipment and other facilities owned by the entity or acquired under finance leases. | |
Proportionate consolidation method | The venturer combines and subsequently eliminates its interests in jointly controlled entities’ balances and transactions in proportion to its ownership stake in these entities. | |
The venturer combines its interest in the assets and liabilities assigned to the jointly controlled operations and the assets that are jointly controlled together with other joint venturers line by line in the consolidated balance sheet. Similarly, it combines its interest in the income and expenses originating in jointly controlled businesses line by line in the consolidated income statement. | ||
Provisions | Provisions include amounts recognized to cover the Group’s current obligations arising as a result of past events, certain in terms of nature but uncertain in terms of amount and/or cancellation date. | |
Provision expenses | Provisions recognized during the year, net of recoveries on amounts provisioned in prior years, with the exception of provisions for pensions and contributions to pension funds which constitute current or interest expense. | |
Provisions for contingent exposures and commitments | Provisions recorded to cover exposures arising as a result of transactions through which the entity guarantees commitments assumed by third parties in respect of financial guarantees granted or other types of contracts, and provisions for contingent commitments, i.e., irrevocable commitments which may arise upon recognition of financial assets. | |
Provisions for pensions and similar obligation | Constitutes all provisions recognized to cover retirement benefits, including commitments assumed vis-à-vis beneficiaries of early retirement and analogous schemes. | |
Reserves | Accumulated net profits or losses recognized in the income statement in prior years and retained in equity upon distribution. Reserves also include the cumulative effect of adjustments recognized directly in equity as a result of the retroactive restatement of the financial statements due to changes in accounting policy and the correction of errors. | |
Securitization fund | A fund that is configured as a separate equity and administered by a management company. An entity that would like funding sells certain assets to the securitization fund, which, in turn, issues securities backed by said assets. | |
Share premium | The amount paid in by owners for issued equity at a premium to the shares’ nominal value. |
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Short positions | Financial liabilities arising as a result of the final sale of financial assets acquired under repurchase agreements or received on loan. | |
Subordinated liabilities | Financing received, regardless of its instrumentation, which ranks after the common creditors in the event of a liquidation. | |
Subsidiaries | Companies which the Group has the power to control. Control is presumed to exist when the parent owns, directly or indirectly through subsidiaries, more than one half of an entity’s voting power, unless, exceptionally, it can be clearly demonstrated that ownership of more than one half of an entity’s voting rights does not constitute control of it. Control also exists when the parent owns half or less of the voting power of an entity when there is: | |
• an agreement that gives the parent the right to control the votes of other shareholders; | ||
• power to govern the financial and operating policies of the entity under a statute or an agreement; power to appoint or remove the majority of the members of the board of directors or equivalent governing body and control of the entity is by that board or body; | ||
• power to cast the majority of votes at meetings of the board of directors or equivalent governing body and control of the entity is by that board or body. | ||
Substandard risk | All debt instruments and contingent risks which do not meet the criteria to be classified individually as non-performing or written-off, but show weaknesses that may entail for the entity the need to assume losses greater than the hedges for impairment of risks subject to special monitoring. | |
Tax liabilities | All tax related liabilities except for provisions for taxes. | |
Trading derivatives | The fair value in favor of the entity of derivatives not designated as accounting hedges. | |
Value at Risk (VaR) | Value at Risk (VaR) is the basic variable for measuring and controlling the Group’s market risk. This risk metric estimates the maximum loss that may occur in a portfolio’s market positions for a particular time horizon and given confidence level | |
VaR figures are estimated following two methodologies: | ||
• VaR without smoothing, which awards equal weight to the daily information for the immediately preceding last two years. This is currently the official methodology for measuring market risks vis-à-vis limits compliance of the risk. | ||
• VaR with smoothing, which weights more recent market information more heavily. | ||
This is a metric which supplements the previous one. | ||
VaR with smoothing adapts itself more swiftly to the changes in financial market conditions, whereas VaR without smoothing is, in general, a more stable metric that will tend to exceed VaR with smoothing when the markets show less volatile trends, while it will tend to be lower when they present upturns in uncertainty. |
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