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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, 2008 | ||
OR | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
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 | ||
For the transition period from to |
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Name Of Each Exchange on | ||
Title of Each Class | which Registered | |
American Depositary Shares, each representing the right to receive one ordinary share, par value €0.49 per share | New York Stock Exchange | |
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 |
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” or“Group” means Banco Bilbao Vizcaya Argentaria, S.A. and its consolidated subsidiaries unless otherwise indicated or the context otherwise requires. BBVA was formed by the merger of Banco Bilbao Vizcaya, S.A. (“BBV”) and Argentaria, Caja Postal y Banco Hipotecario, S.A. (“Argentaria”), which was approved by the shareholders of each institution on December 18, 1999. | |
• | “Compass” means Compass Bancshares, Inc. and its consolidated subsidiaries, unless otherwise indicated or the context otherwise requires. | |
• | “Consolidated Financial Statements” means BBVA’s audited consolidated financial statements as of and for the years ended December 31, 2008, 2007 and 2006 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 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 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; | |
• | 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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• | Assets classified as impaired for customers in which the amount of their operations is less than € 1 million. | |
• | Asset portfolio not currently impaired but which presents an inherent loss. |
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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 stockholders’ 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 regarding period-to-period changes is based on numbers which have not been rounded. |
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ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
A. | Directors and Senior Management |
B. | Advisers |
C. | Auditors |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
A. | Selected Consolidated Financial Data |
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Year Ended December 31, | ||||||||||||||||||||
2008 | 2007(1) | 2006(1) | 2005(1) | 2004(1) | ||||||||||||||||
(In millions of euros, except per share/ | ||||||||||||||||||||
ADS data (in euros) | ||||||||||||||||||||
Consolidated Income Statement data | ||||||||||||||||||||
Interest and similar income | 30,404 | 26,176 | 20,042 | 16,584 | 13,108 | |||||||||||||||
Interest expense and similar charges | (18,718 | ) | (16,548 | ) | (11,904 | ) | (9,500 | ) | (6,999 | ) | ||||||||||
Net interest income | 11,686 | 9,628 | 8,138 | 7,084 | 6,110 | |||||||||||||||
Dividend income | 447 | 348 | 380 | 295 | 255 | |||||||||||||||
Share of profit or loss of entities accounted for using the equity method | 293 | 241 | 308 | 121 | 97 | |||||||||||||||
Fee and commission income | 5,539 | 5,603 | 5,133 | 4,681 | 4,057 | |||||||||||||||
Fee and commission expenses | (1,012 | ) | (1,043 | ) | (943 | ) | (849 | ) | (738 | ) | ||||||||||
Net gains (losses) on financial assets and liabilities | 1,328 | 1,545 | 1,261 | 885 | 761 | |||||||||||||||
Net exchange differences | 231 | 411 | 376 | 290 | 298 | |||||||||||||||
Other operating income | 3,559 | 3,589 | 3,413 | 3,812 | 2,815 | |||||||||||||||
Other operating expenses | (3,093 | ) | (3,051 | ) | (2,923 | ) | (3,510 | ) | (2,553 | ) | ||||||||||
Gross income | 18,978 | 17,271 | 15,143 | 12,810 | 11,102 | |||||||||||||||
Administration costs | (7,756 | ) | (7,253 | ) | (6,330 | ) | (5,763 | ) | (5,098 | ) | ||||||||||
Depreciation and amortization | (699 | ) | (577 | ) | (472 | ) | (449 | ) | (448 | ) | ||||||||||
Provisions (net) | (1,431 | ) | (235 | ) | (1,338 | ) | (454 | ) | (851 | ) | ||||||||||
Impairment on financial assets (net) | (2,941 | ) | (1,903 | ) | (1,457 | ) | (821 | ) | (728 | ) | ||||||||||
Net operating income | 6,151 | 7,303 | 5,545 | 9,104 | 8,269 | |||||||||||||||
Impairment on other assets (net) | (45 | ) | (13 | ) | (12 | ) | (0 | ) | (234 | ) | ||||||||||
Gains (losses) in written off assets not classified as non-current assets held for sale | 72 | 13 | 956 | 51 | 335 | |||||||||||||||
Gains (losses) in non-current assets held for sale not classified as discontinued operations | 748 | 1,191 | 541 | 217 | 59 | |||||||||||||||
Income before tax | 6,926 | 8,494 | 7,030 | 5,592 | 4,137 | |||||||||||||||
Income tax | (1,541 | ) | (2,079 | ) | (2,059 | ) | (1,521 | ) | (1,029 | ) | ||||||||||
Income from ordinary activities | 5,385 | 6,415 | 4,971 | 4,071 | 3,108 | |||||||||||||||
Income from discontinued operations (net) | — | — | — | — | — | |||||||||||||||
Net income | 5,385 | 6,415 | 4,971 | 4,071 | 3,108 | |||||||||||||||
Net income attributed to parent company | 5,020 | 6,126 | 4,736 | 3,806 | 2,923 | |||||||||||||||
Profit or loss attributed to minority interest | 365 | 289 | 235 | 264 | 186 | |||||||||||||||
Per share/ADS(2) Data | ||||||||||||||||||||
Net operating income(2) | 1.66 | 2.03 | 1.63 | 2.68 | 2.45 | |||||||||||||||
Numbers of shares outstanding (at period end) | 3,747,969,121 | 3,747,969,121 | 3,551,969,121 | 3,390,852,043 | 3,390,852,043 | |||||||||||||||
Net income attributed to the parent company(3) | 1.35 | 1.70 | 1.39 | 1.12 | 0.87 | |||||||||||||||
Dividends declared | 0.501 | 0.733 | 0.637 | 0.531 | 0.442 |
(*) | EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004. | |
(1) | As previously explained and explained in Note 1.3 to our Consolidated Financial Statements, income statement and income statement derived information for the years 2007, 2006, 2005 and 2004 have been |
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restated taking into account the financial statements models established in Bank of Spain Circular 6/2008 and are not comparable with the BBVA Group’s income statement information for each of the years 2007, 2006, 2005 and 2004 contained in previous annual reports onForm 20-F prepared under other formats. The principal differences between our consolidated income statements prepared taking into account the financial statements models established in Bank of Spain Circular 6/2008 and our consolidated income statement prepared prior to the implementation of the Bank of Spain Circular 6/2008 are described below and in Appendix VIII to the Consolidated Financial Statements. | ||
(2) | Each American Depositary Share (“ADS” or“ADSs”) represents the right to receive one ordinary share. | |
(3) | Calculated on the basis of the weighted average number of BBVA’s ordinary shares outstanding during the relevant period (3,706 million 3,594 million, 3,406 million, 3,391 million and 3,369 million shares in 2008, 2007, 2006, 2005 and 2004, respectively). |
Year Ended December, 31 | ||||||||||||||||||||
2008 | 2007(1) | 2006(1) | 2005(1) | 2004(1) | ||||||||||||||||
(In millions of euros, except %) | ||||||||||||||||||||
Consolidated balance sheet data | ||||||||||||||||||||
Total assets | 542,650 | 501,726 | 411,663 | 392,389 | 329,441 | |||||||||||||||
Capital stock | 1,837 | 1,837 | 1,740 | 1,662 | 1,662 | |||||||||||||||
Loans and receivables (net) | 369,494 | 337,765 | 279,658 | 249,397 | 196,892 | |||||||||||||||
Deposits from customers | 255,236 | 219,610 | 186,749 | 183,375 | 150,726 | |||||||||||||||
Marketable debt securities and subordinated liabilities | 121,144 | 117,909 | 100,079 | 76,565 | 57,809 | |||||||||||||||
Minority interest | 1,049 | 880 | 768 | 971 | 738 | |||||||||||||||
Stockholders’ equity | 26,586 | 24,811 | 18,209 | 13,034 | 10,961 | |||||||||||||||
Consolidated ratios | ||||||||||||||||||||
Profitability ratios: | ||||||||||||||||||||
Net interest income(2) | 2.26 | % | 2.09 | % | 2.06 | % | 1.68 | % | 2.20 | % | ||||||||||
Return on average total assets(3) | 1.04 | % | 1.39 | % | 1.26 | % | 1.12 | % | 0.97 | % | ||||||||||
Return on average equity(4) | 21.5 | % | 34.2 | % | 37.6 | % | 37.0 | % | 33.2 | % | ||||||||||
Credit quality data | ||||||||||||||||||||
Loan loss reserve | 7,505 | 7,144 | 6,424 | 5,589 | 4,622 | |||||||||||||||
Loan loss reserve as a percentage of total loans and receivables (net) | 2.03 | % | 2.12 | % | 2.30 | % | 2.24 | % | 2.35 | % | ||||||||||
Substandard loans | 8,540 | 3,366 | 2,500 | 2,347 | 2,202 | |||||||||||||||
Substandard loans as a percentage of total loans and receivables (net) | 2.31 | % | 1.00 | % | 0.89 | % | 0.94 | % | 1.12 | % |
(*) | EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004. | |
(1) | As previously explained and explained in Note 1.3 to our Consolidated Financial Statements, balance sheet and balance sheet derived information as of December 31, 2007, 2006, 2005 and 2004 have been restated taking into account the financial statements models established in Bank of Spain 6/2008 and are not comparable with the BBVA Group’s balance sheet as of December 31, 2007, 2006, 2005 and 2004 contained in previous annual reports on Form 20-F prepared under other formats. The principal differences are described in Appendix VIII to the Consolidated Financial Statements. | |
(2) | Represents net interest income as a percentage of average total assets. | |
(3) | Represents net income as a percentage of average total assets. | |
(4) | Represents net income attributed to parent company as a percentage of average stockholders’ equity. |
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Year Ended December 31, | ||||||||||||||||
2007 | 2006 | 2005 | 2004 | |||||||||||||
(In millions of euros) | ||||||||||||||||
Previous Format: | ||||||||||||||||
Net interest income | 9,769 | 8,374 | 7,208 | 6,160 | ||||||||||||
Gross income | 18,133 | 15,700 | 13,023 | 11,121 | ||||||||||||
Net operating income | 10,544 | 8,883 | 6,823 | 5,591 | ||||||||||||
Income before tax | 8,495 | 7,030 | 5,591 | 4,137 | ||||||||||||
Income from continuing operations | 6,415 | 4,971 | 4,070 | 3,108 | ||||||||||||
Consolidated income for the year | 6,415 | 4,971 | 4,070 | 3,108 | ||||||||||||
Income attributed to the Group | 6,126 | 4,736 | 3,806 | 2,923 | ||||||||||||
Income attributed to minority interest | 289 | 235 | 264 | 186 |
Year Ended December 31, | ||||||||||||||||
2007 | 2006 | 2005 | 2004 | |||||||||||||
(In millions of euros) | ||||||||||||||||
New Format: | ||||||||||||||||
Net interest income | 9,628 | 8,138 | 7,084 | 6,110 | ||||||||||||
Gross income | 17,271 | 15,143 | 12,810 | 11,102 | ||||||||||||
Net operating income | 7,303 | 5,545 | 9,104 | 8,269 | ||||||||||||
Income before tax | 8,494 | 7,030 | 5,592 | 4,137 | ||||||||||||
Income from ordinary activities | 6,415 | 4,971 | 4,071 | 3,108 | ||||||||||||
Net income | 6,415 | 4,971 | 4,071 | 3,108 | ||||||||||||
Net income attributed to parent company | 6,126 | 4,736 | 3,806 | 2,923 | ||||||||||||
Profit or loss attributed to minority interest | 289 | 235 | 264 | 186 |
• | Includes new margin called “Net interest income” representing the difference between “Interest and similar income” and “Interest expense and similar charges”. Both captions include income and expenses of this nature arising on the insurance business and on non-financial activities. | |
• | As explained in the previous paragraph dealing with “Interest income” and “Interest expense”, income and expense arising on the Group’s insurance activities are no longer offset. Rather, they are now recognized in the corresponding income or expense captions of the consolidated income statement, with the resulting effect on each of the margins and on the captions comprising that statement. | |
• | The new “Gross income” is similar to the previous “Gross income” except for the fact that it includes other operating income and expense which previously did not form part of the ordinary margin. In addition, the |
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new model includes interest income and charges arising on non-financial activities (see letter g, below) and comprises other items previously recognized under “Other gains” and “Other losses”. |
• | Eliminates the headings “Sales and income from the provision of non-financial services” and “Cost of sales”. These amounts are now recognized primarily under “Other operating income” and “Other operating expenses”. | |
• | Includes in “Staff expenses” and “General and administrative expenses” amounts previously recognized under “Other gains” and “Other losses” in the earlier model. | |
• | “Impairment losses (net)” is now divided into two headings: “Impairment on financial assets (net)”, which comprises net impairment on the financial assets other than equity instruments classified as shareholdings; and “Impairment on other assets (net)”, which includes net impairment losses on equity instruments classified as shareholdings and on non-financial assets. | |
• | Eliminates the headings “Financial income from non-financial activities” and “Financial expense from non-financial activities.” These amounts are now recognized under “Interest and similar income” and “Interest expenses and similar charges”, respectively, in the consolidated income statement. | |
• | Changes “Net operating income”. These measures of profit mainly differ in that includes the financial interest income and expense arising on the Group’s non-financial activity, net impairment on financial instruments and net provisions, as well as the amounts previously recognized under “Other gains” and “Other losses” in the earlier statement format. | |
• | Does not include “Other gains” and “Other losses,” instead creating the following new headings: “Gains (losses) in written off assets not classified as non-current assets held for sale,” “Negative goodwill” and “Gains (losses) in non-current assets held for sale not classified as discontinued operations” which comprise, basically, the captions that previously formed part of the two eliminated headings mentioned above. |
Year Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(In millions of euros, except per share/ ADS data (in euros) or as otherwise indicated) | ||||||||||||||||||||
Consolidated statement of income data | ||||||||||||||||||||
Net income | 4,070 | 5,409 | 4,972 | 2,018 | 3,095 | |||||||||||||||
Basic earnings per share/ADS(1)(2) | 1.098 | 1.505 | 1.460 | 0.595 | 0.918 | |||||||||||||||
Diluted earnings per share/ADS(1)(2) | 1.098 | 1.505 | 1.460 | 0.595 | 0.918 | |||||||||||||||
Dividends per share/ADS (in dollars)(1)(2)(3) | 0.652 | 1.011 | 0.807 | 0.658 | 0.552 | |||||||||||||||
Consolidated balance sheet data | ||||||||||||||||||||
Total assets(4) | 549,574 | 510,569 | 420,971 | 401,799 | 314,350 | |||||||||||||||
Stockholders’ equity(4) | 32,744 | 35,384 | 30,461 | 25,375 | 23,465 | |||||||||||||||
Basic stockholders’ equity per share/ADS(1)(2) | 8.84 | 9.85 | 8.94 | 7.48 | 6.96 | |||||||||||||||
Diluted stockholders’ equity per share/ADS(1)(2) | 8.84 | 9.85 | 8.94 | 7.48 | 6.96 |
(1) | Calculated on the basis of the weighted average number of BBVA’s ordinary shares outstanding during the relevant period. | |
(2) | Each ADS represents the right to receive one ordinary share. | |
(3) | Dividends per share/ADS are converted into dollars at the average exchange rate for the relevant year, 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. | |
(4) | At the end of the reported period. |
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Year Ended December 31 | Average(1) | |||
2004 | 1.2478 | |||
2005 | 1.2400 | |||
2006 | 1.2661 | |||
2007 | 1.3797 | |||
2008 | 1.4695 | |||
2009 (through March 27) | 1.2924 |
(1) | The average of the noon buying rates for the euro on the last published date in respect of which such information is in each month during the relevant period. |
Month Ended | High | Low | ||||||
September 30, 2008 | 1.4737 | 1.3939 | ||||||
October 31, 2008 | 1.4058 | 1.2446 | ||||||
November 30, 2008 | 1.3039 | 1.2525 | ||||||
December 31, 2008 | 1.4358 | 1.2634 | ||||||
January 31, 2009 | 1.3946 | 1.2804 | ||||||
February 28, 2009 | 1.3064 | 1.2547 | ||||||
March 31, 2009 (through March 27) | 1.3730 | 1.2549 |
B. | Capitalization and Indebtedness |
C. | Reasons for the Offer and Use of Proceeds |
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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 |
• | Spanish retail network | |
• | Corporate and business banking | |
• | Other units: Consumer finance, European insurance, BBVA Portugal and Dinero Express |
• | Global Businesses (Wholesale Banking and Asset Management) |
• | Corporate and investment banking | |
• | Global markets | |
• | Asset management | |
• | Industrial and real estate holdings | |
• | Asia |
• | Mexico |
• | Banking businesses | |
• | Pensions and insurance |
• | The United States |
• | BBVA Compass banking group |
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• | Other units: BBVA Puerto Rico, BTS and BBVA Bancomer USA |
• | South America |
• | Banking businesses | |
• | Pensions and insurance |
• | Corporate Activities |
Income/(loss) Attributed to the | % of Income/(loss) Attributed to | |||||||||||||||||||||||
Parent Company | Parent Company | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2008 | 2007 | 2006 | 2008 | 2007 | 2006 | |||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||
Spain and Portugal | 2,625 | 2,381 | 1,884 | 52 | % | 39 | % | 40 | % | |||||||||||||||
Global Businesses (Wholesale Banking and Asset Management) | 754 | 896 | 859 | 15 | % | 15 | % | 18 | % | |||||||||||||||
Mexico | 1,938 | 1,880 | 1,711 | 39 | % | 31 | % | 36 | % | |||||||||||||||
The United States | 211 | 203 | 64 | 4 | % | 3 | % | 1 | % | |||||||||||||||
South America | 727 | 623 | 509 | 14 | % | 10 | % | 11 | % | |||||||||||||||
Subtotal | 6,255 | 5,983 | 5,027 | 125 | % | 98 | % | 106 | % | |||||||||||||||
Corporate Activities | (1,235 | ) | 143 | (291 | ) | (25 | )% | 2 | % | (6 | )% | |||||||||||||
Net income attributed to parent company | 5,020 | 6,126 | 4,736 | 100 | % | 100 | % | 100 | % | |||||||||||||||
Net Interest Income | ||||||||||||
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Spain and Portugal | 4,828 | 4,391 | 3,800 | |||||||||
Global Businesses (Wholesale Banking and Asset Management) | 745 | (7 | ) | 18 | ||||||||
Mexico | 3,716 | 3,505 | 3,220 | |||||||||
The United States | 1,332 | 763 | 280 | |||||||||
South America | 2,199 | 1,746 | 1,376 | |||||||||
Subtotal | 12,820 | 10,398 | 8,694 | |||||||||
Corporate Activities | (1,134 | ) | (770 | ) | (556 | ) | ||||||
Net interest income | 11,686 | 9,628 | 8,138 | |||||||||
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• | Spanish Retail Network: manages individual customers, high net-worth individuals and small companies and businesses 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; | |
• | Consumer Finance; | |
• | European Insurance: manages the insurance business in Spain and Portugal; | |
• | BBVA Portugal: manages the banking business in Portugal; and | |
• | Dinero Express: specializes in the immigrant segment. |
• | Total net lending was €199,297 million, as of December 31, 2008, an increase of 0.4% from €198,524 as of December 31, 2007, reflecting the significant slowdown in lending growth in Spain. | |
• | Total customer deposits were €100,893 million as of December 31, 2008 compared to €91,546 million as of December 31, 2007, an increase of 10.2%. | |
• | Mutual funds under management were €31,270 million as of December 31, 2008, a decrease of 26.4% from €42,469 million as of December 31, 2007, reflecting declines in portfolio volumes and withdrawals of mutual fund assets. | |
• | Pension fund assets under management were €9,603 million as of December 31, 2008, a decrease of 4.7% from €10,072 million as of December 31, 2007. |
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• | 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 (the Group’s private equity unit); | |
• | Industrial and Real Estate 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 real estate projects (Anida and the Duch Project); | |
• | Asia: represents our increased stakes in CIFH in Hong Kong (approximately 30%) and in CNCB (approximately 10%) and our commitment to China as demonstrated by aggregate investments that now exceed €2,000 million. |
• | Total net lending was €48,683 million, an increase of 30.4% from €37,337 million as of December 31, 2007. | |
• | Total customer deposits were €62,568 million as of December 31, 2008 compared to €42,243 million as of December 31, 2007, an increase of 48.1%. | |
• | Mutual funds under management were €4,014 million as of December 31, 2008, an increase of 65.5% from €2,425 million as of December 31, 2007. | |
• | Pension fund assets under management were €6,810 million as of December 31, 2008, a decrease of 7.5% from €7,363 million as of December 31, 2007. |
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• | Banking Businesses, and | |
• | Pensions and Insurance Businesses |
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• | Total net lending was €25,543 million as of December 31, 2008, a decrease of 5.0% from €26,899 million as of December 31, 2007. | |
• | Total customer deposits were €29,677 million as of December 31, 2008 compared to €31,408 million as of December 31, 2007, a decrease of 5.5%. | |
• | Mutual funds under management were €9,180 million as of December 31, 2008, a decrease of 18.1% from €11,214 million as of December 31, 2007. | |
• | Pension fund assets under management were €7,196 million as of December 31, 2008, a decrease of 16.8% from €8,648 million as of December 31, 2007. |
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• | BBVA Compass banking group | |
• | Other units: BBVA Puerto Rico, BTS and BBVA Bancomer USA |
• | Total net lending was approximately €31,066 million as of December 31, 2008, an increase of 18.7% from €26,161 million as of December 31, 2007. | |
• | Total customer deposits were €26,240 million as of December 31, 2008 compared to €23,784 million as of December 31, 2007, an increase of 10.3%. |
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• | Banking Businesses, including banks in Argentina, Chile, Colombia, Panama, Paraguay, Peru, Uruguay and Venezuela; | |
• | Pension businesses in Argentina, Bolivia, Chile, Colombia, Ecuador, Peru and Dominican Republic; and | |
• | Insurance businesses in Argentina, Chile, Colombia, Dominican Republic and Venezuela. |
• | Total net lending was €24,475 million as of December 31, 2008, an increase of 12.0% from €21,845 million as of December 31, 2007. | |
• | Total customer deposits were €29,382 million as of December 31, 2008, an increase of 15.1% from €25,525 million as of December 31, 2007. | |
• | Mutual funds under management were €1,300 million as of December 31, 2008, a decrease of 24.6% from €1,725 million as of December 31, 2007. | |
• | Pension fund assets under management were €24,531 million as of December 31, 2008, a decrease of 29.6% from €34,826 million as of December 31, 2007. |
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• | Financial Planning, carried out by the ALCO: administers the Group’s interest- and exchange-rate structure as well as its overall liquidity and shareholders’ funds. | |
• | Holdings in Industrial and Financial Companies: manages the Group’s 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. |
• | 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 109 of the Treaty on European Union (“EU Treaty���), and holding and managing the States’ official currency reserves; |
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• | promoting the sound working of payment systems in the euro area; and | |
• | issuing legal tender banknotes. |
• | 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. |
• | 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. |
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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; |
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• | holding and managing the official foreign reserves of the member states; and | |
• | promoting the smooth operation of the payment systems. |
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C. | Organizational Structure |
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BBVA | ||||||||||||||||
Country of | Voting | BBVA | Total | |||||||||||||
Subsidiary | Incorporation | Activity | Power | Ownership | Assets | |||||||||||
(%) | (In millions | |||||||||||||||
of euros) | ||||||||||||||||
BBVA Bancomer, S.A. de C.V. | Mexico | Bank | 100.00 | 99.97 | 59,174 | |||||||||||
Compass Bank | United States | Bank | 100.00 | 100.00 | 46,843 | |||||||||||
BBVA Seguros, S.A., de Seguros y Reaseguros | Spain | Insurance | 99.94 | 99.94 | 11,474 | |||||||||||
Banco de Credito Local, S.A. | Spain | Bank | 100.00 | 100.00 | 11,312 | |||||||||||
Banco Provincial S.A. — Banco Universal | Venezuela | Bank | 55.60 | 55.60 | 9,495 | |||||||||||
Banco Bilbao Vizcaya Argentaria Chile, S.A. | Chile | Bank | 68.18 | 68.16 | 8,587 | |||||||||||
Banco Continental, S.A. | Peru | Bank | 92.08 | 46.04 | 7,699 | |||||||||||
Finanzia, Banco de Credito, S.A. | Spain | Bank | 100.00 | 100.00 | 7,403 | |||||||||||
Banco Bilbao Vizcaya Argentaria (Portugal), S.A. | Portugal | Bank | 100.00 | 100.00 | 6,903 | |||||||||||
BBVA Factoring E.F.C., S.A. | Spain | Financial services | 100.00 | 100.00 | 6,786 | |||||||||||
BBVA Colombia, S.A. | Colombia | Bank | 95.43 | 95.43 | 6,505 | |||||||||||
BBVA Banco de Financiacion, S.A. | Spain | Bank | 100.00 | 100.00 | 5,765 | |||||||||||
Compass Capital Markets, Inc. | United States | Financial services | 100.00 | 100.00 | 5,138 | |||||||||||
BBVA Banco Frances, S.A. | Argentina | Bank | 76.00 | 76.00 | 4,486 | |||||||||||
Banco Bilbao Vizcaya Argentaria Puerto Rico | Puerto Rico | Bank | 100.00 | 100.00 | 4,318 | |||||||||||
Compass Southwest, LP | United States | Bank | 100.00 | 100.00 | 3,631 | |||||||||||
BBVA Ireland Public Limited Company | Ireland | Financial services | 100.00 | 100.00 | 2,302 | |||||||||||
BBVA International Investment Corporation | Puerto Rico | Financial services | 100.00 | 100.00 | 2,144 | |||||||||||
Uno-E Bank, S.A. | Spain | Bank | 100.00 | 100.00 | 1,297 | |||||||||||
Banco Depositario BBVA, S.A. | Spain | Bank | 100.00 | 99.99 | 899 |
D. | Property, Plants and Equipment |
E. | Selected Statistical Information |
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Average Balance Sheet — Assets and Interest from Earning Assets | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | Year Ended December 31, 2007 | Year Ended December 31, 2006 | ||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
Balance | Interest | Yield(1) | Balance | Interest | Yield(1) | Balance | Interest | Yield(1) | ||||||||||||||||||||||||||||
(In millions of euros, except %) | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Cash and balances with central banks | 14,396 | 479 | 3.33 | % | 16,038 | 458 | 2.86 | % | 11,903 | 444 | 3.73 | % | ||||||||||||||||||||||||
Debt securities, equity instruments and derivatives | 118,356 | 4,659 | 3.94 | % | 107,236 | 4,386 | 4.09 | % | 103,387 | 4,498 | 4.35 | % | ||||||||||||||||||||||||
Loans and receivables | 352,727 | 25,087 | 7.11 | % | 315,156 | 21,067 | 6.68 | % | 256,462 | 14,795 | 5.77 | % | ||||||||||||||||||||||||
Loans and advances to credit institutions | 31,229 | 1,367 | 4.38 | % | 39,509 | 1,777 | 4.50 | % | 23,671 | 992 | 4.19 | % | ||||||||||||||||||||||||
In euros(2) | 21,724 | 933 | 4.29 | % | 29,522 | 1,138 | 3.85 | % | 14,090 | 452 | 3.21 | % | ||||||||||||||||||||||||
In other currencies(3) | 9,505 | 434 | 4.57 | % | 9,987 | 639 | 6.40 | % | 9,581 | 540 | 5.63 | % | ||||||||||||||||||||||||
Loans and advances to customers | 321,498 | 23,720 | 7.38 | % | 275,647 | 19,290 | 7.00 | % | 232,791 | 13,803 | 5.93 | % | ||||||||||||||||||||||||
In euros(2) | 218,634 | 13,072 | 5.98 | % | 201,045 | 10,747 | 5.35 | % | 177,330 | 7,366 | 4.15 | % | ||||||||||||||||||||||||
In other currencies(3) | 102,864 | 10,648 | 10.35 | % | 74,602 | 8,543 | 11.45 | % | 55,461 | 6,437 | 11.61 | % | ||||||||||||||||||||||||
Other financial income | — | 179 | — | — | 265 | — | — | 305 | — | |||||||||||||||||||||||||||
Non-earning assets | 32,377 | — | — | 22,770 | — | — | 24,198 | — | — | |||||||||||||||||||||||||||
Total average assets | 517,856 | 30,404 | 5.87 | % | 461,200 | 26,176 | 5.68 | % | 395,950 | 20,042 | 5.06 | % | ||||||||||||||||||||||||
(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 December 31, 2008 | Year Ended December 31, 2007 | Year Ended December 31, 2006 | ||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
Balance | Interest | Yield(1) | Balance | Interest | Yield(1) | Balance | Interest | Yield(1) | ||||||||||||||||||||||||||||
(In millions of euros, except%) | ||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Deposits from central banks and credit institutions | 77,159 | 3,809 | 4.94 | % | 65,822 | 3,470 | 5.27 | % | 63,730 | 2,612 | 4.10 | % | ||||||||||||||||||||||||
In euros | 32,790 | 1,604 | 4.89 | % | 27,388 | 1,261 | 4.60 | % | 34,550 | 1,175 | 3.40 | % | ||||||||||||||||||||||||
In other currencies | 44,369 | 2,205 | 4.97 | % | 38,434 | 2,209 | 5.75 | % | 29,180 | 1,437 | 4.92 | % | ||||||||||||||||||||||||
Customer deposits | 237,387 | 8,390 | 3.53 | % | 205,740 | 7,013 | 3.41 | % | 177,927 | 5,507 | 3.10 | % | ||||||||||||||||||||||||
In euros(2) | 115,166 | 3,765 | 3.27 | % | 109,605 | 3,133 | 2.86 | % | 99,148 | 1,850 | 1.87 | % | ||||||||||||||||||||||||
In other currencies(3) | 122,221 | 4,625 | 3.78 | % | 96,135 | 3,880 | 4.04 | % | 78,779 | 3,657 | 4.64 | % | ||||||||||||||||||||||||
Debt securities and subordinated liabilities | 119,249 | 6,100 | 5.12 | % | 116,247 | 5,658 | 4.87 | % | 87,520 | 3,354 | 3.83 | % | ||||||||||||||||||||||||
In euros(2) | 96,764 | 5,055 | 5.22 | % | 99,612 | 4,675 | 4.69 | % | 77,480 | 2,834 | 3.66 | % | ||||||||||||||||||||||||
In other currencies(3) | 22,485 | 1,045 | 4.65 | % | 16,635 | 983 | 5.91 | % | 10,040 | 520 | 5.18 | % | ||||||||||||||||||||||||
Other financial costs | — | 418 | — | — | 408 | — | — | 431 | — | |||||||||||||||||||||||||||
Non-interest-bearing liabilities | 56,867 | — | — | 48,776 | — | — | 47,985 | — | — | |||||||||||||||||||||||||||
Stockholders’ equity | 27,194 | — | — | 24,615 | — | — | 18,787 | — | — | |||||||||||||||||||||||||||
Total average liabilities | 517,856 | 18,717 | 3.61 | % | 461,200 | 16,548 | 3.59 | % | 395,949 | 11,904 | 3.01 | % | ||||||||||||||||||||||||
(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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2008/2007 | ||||||||||||
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 | (46 | ) | 66 | 21 | ||||||||
Debt securities, equity instruments and derivatives | 468 | (195 | ) | 273 | ||||||||
Loans and advances to credit institutions | (368 | ) | (41 | ) | (409 | ) | ||||||
In euros | 37 | (242 | ) | (205 | ) | |||||||
In other currencies | (29 | ) | (175 | ) | (204 | ) | ||||||
Loans and advances to customers | 3,270 | 1,159 | 4,430 | |||||||||
In euros | 698 | 1,627 | 2,325 | |||||||||
In other currencies | 3,269 | (1,164 | ) | 2,105 | ||||||||
Other financial income | — | (86 | ) | (86 | ) | |||||||
Total income | 3,297 | 932 | 4,229 | |||||||||
Interest expense | ||||||||||||
Deposits from central banks and credit institutions | 609 | (269 | ) | 340 | ||||||||
In euros | 253 | 91 | 344 | |||||||||
In other currencies | 348 | (351 | ) | (3 | ) | |||||||
Customer deposits | 1,101 | 277 | 1,377 | |||||||||
In euros | 167 | 493 | 660 | |||||||||
In other currencies | 1,066 | (321 | ) | 745 | ||||||||
Debt certificates and subordinated liabilities | 162 | 281 | 443 | |||||||||
In euros | (142 | ) | 522 | 380 | ||||||||
In other currencies | 349 | (287 | ) | 62 | ||||||||
Other financial costs | — | 10 | 10 | |||||||||
Total expense | 2,084 | 86 | 2,170 | |||||||||
Net interest income | 1,213 | 846 | 2,059 | |||||||||
(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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2007/2006 | ||||||||||||
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 | 154 | (141 | ) | 14 | ||||||||
Debt securities, equity instruments and derivatives | 167 | (279 | ) | (112 | ) | |||||||
Loans and advances to credit institutions | 663 | 122 | 785 | |||||||||
In euros | 495 | 192 | 686 | |||||||||
In other currencies | 23 | 76 | 99 | |||||||||
Loans and advances to customers | 2,541 | 2,947 | 5,488 | |||||||||
In euros | 985 | 2,397 | 3,382 | |||||||||
In other currencies | 2,221 | (115 | ) | 2,106 | ||||||||
Other financial income | — | (41 | ) | (41 | ) | |||||||
Total income | 3,303 | 2,832 | 6,134 | |||||||||
Interest expense | ||||||||||||
Deposits from central banks and credit institutions | 86 | 772 | 858 | |||||||||
In euros | (244 | ) | 329 | 86 | ||||||||
In other currencies | 456 | 316 | 772 | |||||||||
Customer deposits | 861 | 645 | 1,506 | |||||||||
In euros | 195 | 1,088 | 1,284 | |||||||||
In other currencies | 806 | (584 | ) | 222 | ||||||||
Debt certificates and subordinated liabilities | 1,101 | 1,202 | 2,303 | |||||||||
In euros | 810 | 1,030 | 1,840 | |||||||||
In other currencies | 341 | 122 | 463 | |||||||||
Other financial costs | — | (23 | ) | (23 | ) | |||||||
Total expense | 1,962 | 2,682 | 4,644 | |||||||||
Net interest income | 1,341 | 150 | 1,490 | |||||||||
(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. |
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros, except %) | ||||||||||||
Average interest earning assets | 485,479 | 438,430 | 371,752 | |||||||||
Gross yield(1) | 6.17 | % | 5.89 | % | 5.29 | % | ||||||
Net yield(2) | 5.78 | % | 5.60 | % | 4.97 | % | ||||||
Net interest margin(3) | 2.41 | % | 2.20 | % | 2.19 | % | ||||||
Average effective rate paid on all interest-bearing liabilities | 3.61 | % | 3.59 | % | 3.01 | % | ||||||
Spread(4) | 2.56 | % | 2.30 | % | 2.28 | % |
(1) | Gross yield represents total interest income divided by average interest earning assets. |
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(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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2008 | 2007 | 2006 | ||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||
DEBT SECURITIES — | ||||||||||||||||||||||||
AVAILABLE FOR SALE PORTFOLIO | ||||||||||||||||||||||||
Domestic — | 11,743 | 11,910 | 10,088 | 10,161 | 9,221 | 9,494 | ||||||||||||||||||
Spanish government | 6,233 | 6,371 | 5,226 | 5,274 | 6,596 | 6,859 | ||||||||||||||||||
Other debt securities | 5,510 | 5,539 | 4,862 | 4,887 | 2,625 | 2,635 | ||||||||||||||||||
International — | 28,108 | 27,920 | 26,725 | 27,175 | 22,002 | 22,724 | ||||||||||||||||||
United States — | 10,573 | 10,442 | 9,051 | 9,056 | 5,514 | 5,506 | ||||||||||||||||||
U.S. Treasury and other U.S. government agencies | 444 | 444 | 60 | 61 | 342 | 343 | ||||||||||||||||||
States and political subdivisions | 382 | 396 | 515 | 518 | 310 | 310 | ||||||||||||||||||
Other debt securities | 9,747 | 9,602 | 8,476 | 8,477 | 4,862 | 4,853 | ||||||||||||||||||
Other countries — | 17,535 | 17,478 | 17,674 | 18,119 | 16,488 | 17,218 | ||||||||||||||||||
Securities of other foreign government | 9,624 | 9,653 | 10,844 | 11,278 | 9,858 | 10,386 | ||||||||||||||||||
Other debt securities | 7,911 | 7,825 | 6,830 | 6,841 | 6,630 | 6,832 | ||||||||||||||||||
TOTAL AVAILABLE FOR SALE PORTFOLIO | 39,851 | 39,830 | 36,813 | 37,336 | 31,223 | 32,218 | ||||||||||||||||||
HELD TO MATURITY PORTFOLIO | ||||||||||||||||||||||||
Domestic — | 2,392 | 2,339 | 2,402 | 2,271 | 2,404 | 2,337 | ||||||||||||||||||
Spanish government | 1,412 | 1,412 | 1,417 | 1,349 | 1,417 | 1,378 | ||||||||||||||||||
Other debt securities | 980 | 927 | 985 | 922 | 987 | 959 | ||||||||||||||||||
International — | 2,890 | 2,882 | 3,182 | 3,063 | 3,502 | 3,421 | ||||||||||||||||||
TOTAL HELD TO MATURITY PORTFOLIO | 5,282 | 5,221 | 5,584 | 5,334 | 5,906 | 5,758 | ||||||||||||||||||
TOTAL DEBT SECURITIES | 45,133 | 45,051 | 42,397 | 42,670 | 37,129 | 37,976 | ||||||||||||||||||
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2008 | 2007 | 2006 | ||||||||||||||||||||||
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 — | 3,582 | 4,675 | 3,783 | 7,164 | 4,564 | 7,381 | ||||||||||||||||||
Equity listed | 3,545 | 4,639 | 3,710 | 7,032 | 4,525 | 7,342 | ||||||||||||||||||
Equity unlisted | 37 | 36 | 73 | 132 | 39 | 39 | ||||||||||||||||||
International — | 3,408 | 3,275 | 2,841 | 3,932 | 1,860 | 2,656 | ||||||||||||||||||
United States — | 665 | 654 | 490 | 489 | 53 | 54 | ||||||||||||||||||
Equity listed | 39 | 28 | 420 | 419 | 27 | 28 | ||||||||||||||||||
Equity unlisted | 626 | 626 | 70 | 70 | 26 | 26 | ||||||||||||||||||
Other countries — | 2,743 | 2,621 | 2,351 | 3,443 | 1,807 | 2,602 | ||||||||||||||||||
Equity listed | 2,545 | 2,416 | 2,242 | 3,346 | 1,702 | 2,497 | ||||||||||||||||||
Equity unlisted | 198 | 205 | 109 | 97 | 105 | 105 | ||||||||||||||||||
TOTAL AVAILABLE FOR SALE PORTFOLIO | 6,990 | 7,950 | 6,624 | 11,096 | 6,424 | 10,037 | ||||||||||||||||||
TOTAL EQUITY SECURITIES | 6,990 | 7,950 | 6,624 | 11,096 | 6,424 | 10,037 | ||||||||||||||||||
TOTAL INVESTMENT SECURITIES | 52,123 | 53,001 | 49,021 | 53,766 | 43,553 | 48,013 | ||||||||||||||||||
(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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Maturing After Five | Maturing After Ten | |||||||||||||||||||||||||||||||||||
Maturing at One Year or Less | Maturing After One Year to Five Years | Year to Ten Years | Years | |||||||||||||||||||||||||||||||||
Amount | Yield%(1) | Amount | Yield%(1) | Amount | Yield%(1) | Amount | Yield%(1) | Total | ||||||||||||||||||||||||||||
(In millions of euros, except %) | ||||||||||||||||||||||||||||||||||||
AVAILABLE FOR SALE PORTFOLIO | ||||||||||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||||||||||
Spanish government | 342 | 8.60 | 606 | 4.85 | 2,520 | 3.97 | 2,903 | 4.72 | 6,371 | |||||||||||||||||||||||||||
Other debt securities | 1,037 | 4.69 | 3,112 | 3.95 | 192 | 4.66 | 1,198 | 5.28 | 5,539 | |||||||||||||||||||||||||||
Total Domestic | 1,379 | 5.58 | 3,718 | 4.10 | 2,712 | 4.02 | 4,101 | 4.89 | 11,910 | |||||||||||||||||||||||||||
International: | ||||||||||||||||||||||||||||||||||||
United States: | 1,277 | 5.44 | 3,431 | 4.83 | 3,026 | 4.73 | 2,708 | 3.41 | 10,442 | |||||||||||||||||||||||||||
U.S. Treasury and other U.S. government securities | 61 | 18.80 | 156 | 5.04 | 18 | 17.00 | 209 | 3.09 | 444 | |||||||||||||||||||||||||||
States and political subdivisions | 60 | 7.04 | 121 | 6.17 | 141 | 6.09 | 74 | 6.05 | 396 | |||||||||||||||||||||||||||
Other debt securities | 1,156 | 4.69 | 3,154 | 4.78 | 2,867 | 4.66 | 2,425 | 3.29 | 9,602 | |||||||||||||||||||||||||||
Other countries: | 3,208 | 5.93 | 5,847 | 5.66 | 4,292 | 6.51 | 4,131 | 5.11 | 17,478 | |||||||||||||||||||||||||||
Securities of other foreign governments | 813 | 6.37 | 3,784 | 6.07 | 3,113 | 7.13 | 1,943 | 5.03 | 9,653 | |||||||||||||||||||||||||||
Other debt securities | 2,395 | 5.79 | 2,063 | 4.88 | 1,179 | 4.94 | 2,188 | 5.18 | 7,825 | |||||||||||||||||||||||||||
Total International | 4,485 | 5.79 | 9,278 | 5.35 | 7,318 | 5.77 | 6,839 | 4.65 | 27,920 | |||||||||||||||||||||||||||
Total Available for sale | 5,864 | 5.74 | 12,996 | 4.98 | 10,030 | 5.28 | 10,940 | 4.75 | 39,830 | |||||||||||||||||||||||||||
HELD TO MATURITY PORTFOLIO | ||||||||||||||||||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||||||||||||||
Spanish government | 168 | 4.56 | 120 | 5.21 | 1,068 | 3.22 | 54 | 4.20 | 1,410 | |||||||||||||||||||||||||||
Other debt securities | 26 | 3.63 | 259 | 4.18 | 565 | 3.96 | 130 | 3.81 | 980 | |||||||||||||||||||||||||||
International: | 67 | 3.86 | 943 | 4.01 | 1,653 | 4.15 | 227 | 3.75 | 2,890 | |||||||||||||||||||||||||||
Total held to maturity | 261 | 4.29 | 1,323 | 4.15 | 3,286 | 3.82 | 413 | 3.83 | 5,282 | |||||||||||||||||||||||||||
TOTAL DEBT SECURITIES | 6,125 | 5.68 | 14,318 | 4.91 | 13,316 | 4.92 | 11,353 | 4.72 | 45,112 |
(1) | Rates have been presented on a non-taxable equivalent basis. |
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As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Domestic | 208,474 | 205,287 | 184,288 | |||||||||
Foreign | ||||||||||||
Western Europe | 28,546 | 23,442 | 18,073 | |||||||||
Latin America | 61,978 | 57,647 | 49,712 | |||||||||
United States | 35,498 | 28,925 | 9,664 | |||||||||
Other | 6,826 | 4,370 | 2,405 | |||||||||
Total foreign | 132,848 | 114,384 | 79,854 | |||||||||
Total loans and leases | 341,322 | 319,671 | 264,142 | |||||||||
Valuation adjustments | (6,062 | ) | (6,493 | ) | (5,825 | ) | ||||||
Total net lending | 335,260 | 313,178 | 258,317 | |||||||||
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Domestic | ||||||||||||
Government | 17,436 | 16,013 | 15,987 | |||||||||
Agriculture | 1,898 | 1,987 | 1,818 | |||||||||
Industrial | 17,976 | 18,404 | 15,965 | |||||||||
Real estate and construction | 38,632 | 36,261 | 33,803 | |||||||||
Commercial and financial | 17,165 | 15,220 | 15,231 | |||||||||
Loans to individuals | 88,712 | 88,853 | 78,190 | |||||||||
Lease financing | 7,702 | 7,698 | 6,717 | |||||||||
Other | 18,953 | 20,851 | 16,577 | |||||||||
Total domestic | 208,474 | 205,287 | 184,288 | |||||||||
Foreign | ||||||||||||
Government | 5,066 | 5,052 | 5,207 | |||||||||
Agriculture | 2,211 | 1,750 | 1,315 | |||||||||
Industrial | 28,600 | 21,518 | 8,765 | |||||||||
Real estate and construction | 15,890 | 18,895 | 7,698 | |||||||||
Commercial and financial | 27,720 | 21,151 | 23,679 | |||||||||
Loans to individuals | 39,178 | 32,609 | 25,728 | |||||||||
Lease financing | 1,683 | 1,450 | 975 | |||||||||
Other | 12,500 | 11,959 | 6,487 | |||||||||
Total foreign | 132,848 | 114,384 | 79,854 | |||||||||
Total loans and leases | 341,322 | 319,671 | 264,142 | |||||||||
Valuation adjustments | (6,062 | ) | (6,493 | ) | (5,825 | ) | ||||||
Total net lending | 335,260 | 313,178 | 258,317 | |||||||||
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As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
In euros | 226,855 | 219,226 | 194,405 | |||||||||
In other currencies | 108,405 | 93,952 | 63,912 | |||||||||
Total net lending | 335,260 | 313,178 | 258,317 | |||||||||
Maturity | ||||||||||||||||
Due After One | ||||||||||||||||
Due in One | Year Through | Due After | ||||||||||||||
Year or Less | Five Years | Five Years | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
Domestic: | ||||||||||||||||
Government | 6,104 | 5,147 | 6,185 | 17,436 | ||||||||||||
Agriculture | 761 | 679 | 458 | 1,898 | ||||||||||||
Industrial | 13,410 | 3,259 | 1,307 | 17,976 | ||||||||||||
Real estate and construction | 17,707 | 8,298 | 12,627 | 38,632 | ||||||||||||
Commercial and financial | 10,094 | 4,043 | 3,028 | 17,165 | ||||||||||||
Loans to individuals | 10,745 | 16,442 | 61,525 | 88,712 | ||||||||||||
Lease financing | 675 | 3,414 | 3,613 | 7,702 | ||||||||||||
Other | 10,783 | 3,981 | 4,189 | 18,953 | ||||||||||||
Total domestic | 70,279 | 45,263 | 92,932 | 208,474 | ||||||||||||
Foreign: | ||||||||||||||||
Government | 940 | 2,575 | 1,551 | 5,066 | ||||||||||||
Agriculture | 1,132 | 947 | 132 | 2,211 | ||||||||||||
Industrial | 11,179 | 13,999 | 3,422 | 28,600 | ||||||||||||
Real estate and construction | 7,913 | 5,509 | 2,468 | 15,890 | ||||||||||||
Commercial and financial | 13,601 | 8,981 | 5,138 | 27,720 | ||||||||||||
Loans to individuals | 4,216 | 9,385 | 25,577 | 39,178 | ||||||||||||
Lease financing | 416 | 1,048 | 219 | 1,683 | ||||||||||||
Other | 6,974 | 3,837 | 1,689 | 12,500 | ||||||||||||
Total foreign | 46,371 | 46,281 | 40,196 | 132,848 | ||||||||||||
Total loans and leases | 116,650 | 91,544 | 133,128 | 341,322 | ||||||||||||
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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 | 19,732 | 49,654 | 69,386 | |||||||||
Variable rate | 118,462 | 36,819 | 155,281 | |||||||||
Total loans and leases | 138,194 | 86,473 | 224,667 | |||||||||
As of December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(In millions of euros, except %) | ||||||||||||||||||||
Loan loss reserve at beginning of period: | ||||||||||||||||||||
Domestic | 3,459 | 3,734 | 3,079 | 2,374 | 1,771 | |||||||||||||||
Foreign | 3,685 | 2,690 | 2,511 | 2,248 | 3,274 | |||||||||||||||
Total loan loss reserve at beginning of period | 7,144 | 6,424 | 5,590 | 4,622 | 5,045 | |||||||||||||||
Loans charged off: | ||||||||||||||||||||
Government and other Agencies | — | — | — | — | — | |||||||||||||||
Real estate and loans to individuals | (639 | ) | (361 | ) | (255 | ) | (138 | ) | (103 | ) | ||||||||||
Commercial and financial | (16 | ) | (7 | ) | (2 | ) | (76 | ) | (31 | ) | ||||||||||
Other | — | — | — | — | — | |||||||||||||||
Total Domestic | (655 | ) | (368 | ) | (257 | ) | (214 | ) | (134 | ) | ||||||||||
Foreign | (1,296 | ) | (928 | ) | (289 | ) | (452 | ) | (579 | ) | ||||||||||
Total loans charged off | (1,951 | ) | (1,296 | ) | (546 | ) | (666 | ) | (713 | ) | ||||||||||
Provision for loan losses: | ||||||||||||||||||||
Domestic | 953 | 807 | 883 | 624 | 737 | |||||||||||||||
Foreign | 2,035 | 1,321 | 778 | 196 | 408 | |||||||||||||||
Total provision for loan losses | 2,988 | 2,128 | 1,661 | 820 | 1,145 | |||||||||||||||
Acquisition and disposition of subsidiaries | — | 250 | 69 | 144 | — | |||||||||||||||
Effect of foreign currency translation | (487 | ) | (420 | ) | (333 | ) | 370 | (146 | ) | |||||||||||
Other | 189 | 58 | (17 | ) | 300 | (708 | ) | |||||||||||||
Loan loss reserve at end of period: | ||||||||||||||||||||
Domestic | 3,766 | 3,459 | 3,734 | 3,079 | 2,374 | |||||||||||||||
Foreign | 3,740 | 3,685 | 2,690 | 2,511 | 2,248 | |||||||||||||||
Total loan loss reserve at end of period | 7,505 | 7,144 | 6,424 | 5,590 | 4,622 | |||||||||||||||
Loan loss reserve as a percentage of total loans and leases at end of period | 2.03 | % | 2.12 | % | 2.30 | % | 2.24 | % | 2.35 | % | ||||||||||
Net loan charge-offs as a percentage of total loans and leases at end of period | 0.53 | % | 0.38 | % | 0.20 | % | 0.27 | % | 0.36 | % |
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As of December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(In millions of euros, except %) | ||||||||||||||||||||
Substandard loans: | ||||||||||||||||||||
Domestic | 5,700 | 1,590 | 1,105 | 850 | 954 | |||||||||||||||
Public sector | 79 | 116 | 127 | 33 | 33 | |||||||||||||||
Other resident sectors | 5,483 | 1,435 | 954 | 721 | 832 | |||||||||||||||
Non-resident sector | 138 | 38 | 24 | 96 | 89 | |||||||||||||||
Foreign | 2,840 | 1,776 | 1,394 | 1,497 | 1,248 | |||||||||||||||
Public sector | 22 | 57 | 86 | 89 | 74 | |||||||||||||||
Other resident sectors | — | — | — | 73 | 48 | |||||||||||||||
Non-resident sector | 2,818 | 1,718 | 1,308 | 1,335 | 1,126 | |||||||||||||||
Total substandard loans | 8,540 | 3,366 | 2,500 | 2,347 | 2,202 | |||||||||||||||
Total loan loss reserve | (7,505 | ) | (7,144 | ) | (6,424 | ) | (5,589 | ) | (4,622 | ) | ||||||||||
Substandard loans net of reserves | 1,035 | (3,778 | ) | (3,925 | ) | (3,242 | ) | (2,420 | ) | |||||||||||
Substandard loans as a percentage of total loans and receivables (net) | 2.31 | % | 1.00 | % | 0.89 | % | 0.94 | % | 1.12 | % | ||||||||||
Substandard loans (net of reserves) as a percentage of total loans and receivables (net) | 0.28 | % | (1.12 | )% | (1.40 | )% | (1.30 | )% | (1.23 | )% |
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Substandard | ||||||||||||
Loans as a | ||||||||||||
Loan | Percentage | |||||||||||
Substandard | Loss | of Loans in | ||||||||||
Loans | Reserve | Category | ||||||||||
(In millions of euros, except %) | ||||||||||||
Domestic: | ||||||||||||
Government | 79 | 7 | 0.46 | % | ||||||||
Agricultural | 50 | 15 | 2.64 | % | ||||||||
Industrial | 312 | 103 | 1.73 | % | ||||||||
Real estate and construction | 2,176 | 477 | 5.63 | % | ||||||||
Commercial and financial | 447 | 122 | 2.61 | % | ||||||||
Loans to individuals | 2,354 | 508 | 2.65 | % | ||||||||
Other | 282 | 69 | 1.06 | % | ||||||||
Total domestic | 5,700 | 1,301 | 2.73 | % | ||||||||
Total foreign | 2,840 | 1,973 | 2.14 | % | ||||||||
General reserve | 4,231 | |||||||||||
Total | 8,540 | 7,505 | 2.50 | % | ||||||||
As of December 31, | ||||||||||||||||||||||||
2008 | 2007 | 2006 | ||||||||||||||||||||||
% of Total | % of Total | % of Total | ||||||||||||||||||||||
Amount | Assets | Amount | Assets | Amount | Assets | |||||||||||||||||||
(In millions of euros, except %) | ||||||||||||||||||||||||
OECD | ||||||||||||||||||||||||
United Kingdom | 7,542 | 1.39 | 6,201 | 1.23 | 5,612 | 1.36 | ||||||||||||||||||
Mexico | 4,644 | 0.86 | 2,812 | 0.56 | 2,337 | 0.57 | ||||||||||||||||||
Other OECD | 6,514 | 1.20 | 6,134 | 1.22 | 5,460 | 1.33 | ||||||||||||||||||
Total OECD | 18,700 | 3.45 | 15,147 | 3.02 | 13,409 | 3.26 | ||||||||||||||||||
Central and South America | 4,092 | 0.75 | 3,345 | 0.67 | 2,725 | 0.66 | ||||||||||||||||||
Others | 5,676 | 1.05 | 4,810 | 0.96 | 3,460 | 0.84 | ||||||||||||||||||
Total | 28,468 | 5.25 | 23,302 | 4.64 | 19,594 | 4.76 | ||||||||||||||||||
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Banks and | ||||||||||||||||
Other | Commercial, | |||||||||||||||
Financial | Industrial | |||||||||||||||
Governments | Institutions | and Other | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
2008 | ||||||||||||||||
Mexico | 4 | 228 | 4,412 | 4,644 | ||||||||||||
United Kingdom | — | 5,113 | 2,429 | 7,542 | ||||||||||||
Total | 4 | 5,341 | 6,841 | 12,186 | ||||||||||||
2007 | ||||||||||||||||
Mexico | 26 | 133 | 2,653 | 2,812 | ||||||||||||
United Kingdom | — | 3,450 | 2,751 | 6,201 | ||||||||||||
Total | 26 | 3,583 | 5,404 | 9,013 | ||||||||||||
2006 | ||||||||||||||||
Mexico | 4 | 108 | 2,225 | 2,337 | ||||||||||||
United Kingdom | — | 3,386 | 2,226 | 5,612 | ||||||||||||
Total | 4 | 3,494 | 4,451 | 7,949 | ||||||||||||
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, 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 | ||||||||||||
As of December 31, 2007 | ||||||||||||||||
Bank of Spain and | Other | |||||||||||||||
Customer | Other Central | Credit | ||||||||||||||
Deposits | Banks | Institutions | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
Total domestic | 95,247 | 24,078 | 9,276 | 128,601 | ||||||||||||
Foreign: | ||||||||||||||||
Western Europe | 15,935 | 1,705 | 17,300 | 34,940 | ||||||||||||
Latin America | 58,368 | 43 | 18,218 | 76,629 | ||||||||||||
United States | 37,985 | 1,284 | 10,811 | 50,080 | ||||||||||||
Other | 8,937 | 146 | 4,790 | 13,873 | ||||||||||||
Total foreign | 121,225 | 3,178 | 51,119 | 175,522 | ||||||||||||
Total | 216,472 | 27,256 | 60,395 | 304,123 | ||||||||||||
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As of December 31, 2006 | ||||||||||||||||
Bank of Spain and | Other | |||||||||||||||
Customer | Other Central | Credit | ||||||||||||||
Deposits | Banks | Institutions | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
Total domestic | 95,059 | 12,190 | 7,491 | 11,4740 | ||||||||||||
Foreign: | ||||||||||||||||
Western Europe | 11,487 | 1,176 | 17,903 | 30,566 | ||||||||||||
Latin America | 60,808 | 679 | 9,321 | 70,808 | ||||||||||||
United States | 14,025 | 993 | 3,560 | 18,578 | ||||||||||||
Other | 4,074 | 153 | 4,011 | 8,238 | ||||||||||||
Total foreign | 90,394 | 3,001 | 34,795 | 128,190 | ||||||||||||
Total | 185,453 | 15,191 | 42,286 | 242,930 | ||||||||||||
As of December 31, 2008 | ||||||||||||
Domestic | Foreign | Total | ||||||||||
(In millions of euros) | ||||||||||||
3 months or under | 9,961 | 55,840 | 65,801 | |||||||||
Over 3 to 6 months | 5,015 | 8,379 | 13,394 | |||||||||
Over 6 to 12 months | 4,414 | 3,992 | 8,406 | |||||||||
Over 12 months | 7,018 | 3,304 | 10,322 | |||||||||
Total | 26,408 | 71,515 | 97,923 | |||||||||
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As of December 31, | ||||||||||||||||||||||||
2008 | 2007 | 2006 | ||||||||||||||||||||||
Amount | Average Rate | Amount | Average Rate | Amount | Average Rate | |||||||||||||||||||
(In millions of euro, except %) | ||||||||||||||||||||||||
Securities sold under agreements to repurchase (principally Spanish Treasury bills): | ||||||||||||||||||||||||
As of December 31 | 28,206 | 4.66 | % | 39,902 | 5.20 | % | 37,098 | 4.27 | % | |||||||||||||||
Average during year | 34,729 | 5.62 | % | 42,770 | 5.13 | % | 38,721 | 3.61 | % | |||||||||||||||
Maximum quarter-end balance | 34,202 | — | 44,155 | — | 46,449 | — | ||||||||||||||||||
Bank promissory notes: | ||||||||||||||||||||||||
As of December 31 | 20,061 | 3.70 | % | 5,810 | 3.69 | % | 7,596 | 3.75 | % | |||||||||||||||
Average during year | 15,661 | 4.57 | % | 6,975 | 3.96 | % | 8,212 | 3.16 | % | |||||||||||||||
Maximum quarter-end balance | 20,061 | — | 7,133 | — | 9,036 | — | ||||||||||||||||||
Bonds and Subordinated debt: | ||||||||||||||||||||||||
As of December 31 | 13,565 | 4.66 | % | 11,281 | 4.49 | % | 7,756 | 4.01 | % | |||||||||||||||
Average during year | 12,447 | 5.18 | % | 12,147 | 5.21 | % | 8,076 | 3.74 | % | |||||||||||||||
Maximum quarter-end balance | 15,822 | — | 15,761 | — | 10,872 | — | ||||||||||||||||||
Total short-term borrowings as of December 31 | 61,832 | 4.35 | % | 56,993 | 4.91 | % | 52,450 | 4.16 | % |
As of or for the Year Ended | ||||||||||||
December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Return on equity(1) | 21.5 | 34.2 | 37.6 | |||||||||
Return on assets(2) | 1.04 | 1.39 | 1.26 | |||||||||
Dividend pay-out ratio | 46.0 | 44.4 | 46.9 | |||||||||
Equity to assets ratio(3) | 4.90 | 4.95 | 4.42 |
(1) | Represents net income attributed to parent company for the year as a percentage of average stockholders’ equity for the year. | |
(2) | Represents net income as a percentage of average total assets for the year. | |
(3) | Represents total stockholders’ 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, 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 and loans (cajas de ahorro) and securitization funds containing Spanish assets, secured by loans extended to individuals, companies and non-financial corporates. | |
• | 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 it; and, have a nominal value of €10 million or more. The deadline for issuing debt eligible for state guarantees is December 31, 2009 and the total amount of guarantees that can be extended is €100 billion. | |
• | Authorization, on an exceptional basis, until December 31, 2009, for the Spanish Economy Ministry to acquire securities, including preferred shares and other non-voting equity instruments, issued by credit entities resident in Spain that need to reinforce their capital and so request. |
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 in the actuarial calculation of the post-employment benefit liabilities and commitments. |
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• | The useful life of tangible and intangible assets. | |
• | The measurement of goodwill arising on consolidation. | |
• | The fair value of certain unlisted assets. |
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• | Assets classified as impaired for customers in which the amount of their operations is less than € 1 million. | |
• | Asset portfolio not currently impaired but which presents an inherent loss. |
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A. | Operating Results |
As of December 31, | Change | |||||||||||||||||||
2008 | 2007 | 2006 | 2008/2007 | 2007/2006 | ||||||||||||||||
(In %) | ||||||||||||||||||||
Mexican peso | 19.2334 | 16.0521 | 14.3230 | (19.8 | ) | (12.1 | ) | |||||||||||||
U.S. dollar | 1.3917 | 1.4721 | 1.3170 | 5.5 | (11.8 | ) | ||||||||||||||
Venezuelan bolivar | 2.9884 | 3.1646 | 2.8249 | 5.6 | (12.0 | ) | ||||||||||||||
Colombian peso | 3,125.00 | 2,967.36 | 2,941.18 | (5.3 | ) | (0.9 | ) | |||||||||||||
Chilean peso | 885.74 | 731.53 | 703.73 | (21.1 | ) | (4.0 | ) | |||||||||||||
Peruvian nuevo sol | 4.3678 | 4.4060 | 4.2098 | 0.9 | (4.7 | ) | ||||||||||||||
Argentinean peso | 4.9197 | 4.6684 | 4.0679 | (5.4 | ) | (14.8 | ) |
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Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Interest and similar income | 30,404 | 26,176 | 16.15 | |||||||||
Interest expense and similar charges | (18,718 | ) | (16,548 | ) | 13.11 | |||||||
Net interest income | 11,686 | 9,628 | 21.38 | |||||||||
Dividend income | 447 | 348 | 28.45 | |||||||||
Share of profit or loss of entities accounted for using the equity method | 293 | 241 | 21.58 | |||||||||
Fee and commission income | 5,539 | 5,603 | (1.14 | ) | ||||||||
Fee and commission expenses | (1,012 | ) | (1,043 | ) | (2.97 | ) | ||||||
Net gains (losses) on financial assets and liabilities | 1,328 | 1,545 | (14.05 | ) | ||||||||
Net exchange differences | 231 | 411 | (43.80 | ) | ||||||||
Other operating income | 3,559 | 3,589 | (0.84 | ) | ||||||||
Other operating expenses | (3,093 | ) | (3,051 | ) | 1.38 | |||||||
Gross income | 18,978 | 17,271 | 9.88 | |||||||||
Administrative costs | (7,756 | ) | (7,253 | ) | 6.94 | |||||||
Personnel expenses | (4,716 | ) | (4,335 | ) | 8.79 | |||||||
General and administrative expenses | (3,040 | ) | (2,918 | ) | 4.18 | |||||||
Depreciation and amortization | (699 | ) | (577 | ) | 21.14 | |||||||
Provisions (net) | (1,431 | ) | (235 | ) | n.m.(1 | ) | ||||||
Impairment on financial assets (net) | (2,941 | ) | (1,903 | ) | 54.55 | |||||||
Net operating income | 6,151 | 7,303 | (15.77 | ) | ||||||||
Impairment on other assets (net) | (45 | ) | (13 | ) | n.m. (1 | ) | ||||||
Gains (losses) in written off assets not classified as non-current | ||||||||||||
assets held for sale | 72 | 13 | n.m. (1 | ) | ||||||||
Gains (losses) in non-current assets held for sale not classified as | ||||||||||||
discontinued operations | 748 | 1,191 | (37.20 | ) | ||||||||
Income before tax | 6,926 | 8,494 | (18.46 | ) | ||||||||
Income tax | (1,541 | ) | (2,079 | ) | (25.88 | ) | ||||||
Net income | 5,385 | 6,415 | (16.06 | ) | ||||||||
Profit or loss attributed to minority interest | (365 | ) | (289 | ) | 26.30 | |||||||
Net income attributed to parent company | 5,020 | 6,126 | (18.05 | ) | ||||||||
(1) | Not meaningful |
• | In 2008, we recognized a gross gain of €727 million (€509 million net of tax) from the sale of our stake in Bradesco (which we recorded under the heading “Gains in non-current assets held for sale not classified as discontinued operations”). | |
• | In 2008, we recognized a gross charge of €860 million (€602 million net of tax) related to extraordinary early retirements in Spain under the transformation plan we announced in the fourth quarter of 2007, which we recorded under the heading “Provisions (net)”. |
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• | In 2008, we recognized a charge of €431 million (€302 million net of tax), associated with the loss from the Madoff fraud, which we recorded under the heading “Provisions (net)”. Although we had no direct investment and never sold products managed or deposited at this company to retail or private banking customers, we structured products for financial entities and institutional investors that were linked to third-party mutual funds which invested via Madoff. | |
• | In 2007, we recognized a gross gain of €847 million (€696 million net of tax) from the sale of our stake in Iberdrola, S.A., which we recognized under the heading “Gains in non-current assets held for sale not classified as discontinued operations”. | |
• | In 2007, we recognized a gross gain of €273 million (€233 million net of tax) from our sale of real estate as part of the project for our new corporate headquarters, which we recognized under the heading “Gains in non-current assets held for sale not classified as discontinued operations”. | |
• | In 2007, we recognized a gross charge of €200 million (€135 million net of tax) related to contributions we made to the BBVA Foundation for Microfinance, which we recognized under the heading “General and administrative expenses”. | |
• | In 2007, we recognized a gross charge of €100 million (€70 million net of tax) related to extraordinary early retirements in Spain under the transformation plan we announced in the fourth quarter of 2007, which we recorded under the heading “Provisions (net)”. |
Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euros) | (in%) | |||||||||||
Interest and similar income | 30,404 | 26,176 | 16.15 | |||||||||
Interest expense and similar charges | (18,718 | ) | (16,548 | ) | 13.11 | |||||||
Net interest income | 11,686 | 9,628 | 21.38 | |||||||||
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Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Commitment fees | 62 | 55 | 12.73 | |||||||||
Contingent liabilities | 243 | 229 | 6.11 | |||||||||
Documentary credits | 45 | 38 | 18.42 | |||||||||
Bank and other guarantees | 198 | 191 | 3.66 | |||||||||
Arising from exchange of foreign currencies and banknotes | 24 | 24 | 0.00 | |||||||||
Collection and payment services | 2,655 | 2,567 | 3.43 | |||||||||
Securities services | 1,895 | 2,089 | (9.29 | ) | ||||||||
Counseling on and management of one-off transactions | 9 | 16 | (43.75 | ) | ||||||||
Financial and similar counseling services | 24 | 23 | 4.35 | |||||||||
Factoring transactions | 28 | 25 | 12.00 | |||||||||
Non-banking financial products sales | 96 | 87 | 10.34 | |||||||||
Other fees and commissions | 503 | 488 | 3.07 | |||||||||
Fee and commission income | 5,539 | 5,603 | (1.14 | ) | ||||||||
Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euro) | (In %) | |||||||||||
Brokerage fees on lending and deposit transactions | (9 | ) | (7 | ) | 28.57 | |||||||
Fees and commissions assigned to third parties | (728 | ) | (612 | ) | 18.95 | |||||||
Other fees and commissions | (275 | ) | (424 | ) | (35.14 | ) | ||||||
Fee and commission expenses | (1,012 | ) | (1,043 | ) | (2.97 | ) | ||||||
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Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euro) | (In %) | |||||||||||
Wages and salaries | 3,593 | 3,297 | 8.98 | |||||||||
Social security costs | 566 | 546 | 3.66 | |||||||||
Transfers to internal pension provisions | 56 | 56 | — | |||||||||
Contributions to external pension funds | 71 | 58 | 22.41 | |||||||||
Other personnel expenses | 430 | 378 | 13.76 | |||||||||
Total | 4,716 | 4,335 | 8.79 | |||||||||
Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euro) | (In %) | |||||||||||
Technology and systems | 598 | 539 | 10.95 | |||||||||
Communications | 260 | 236 | 10.17 | |||||||||
Advertising | 273 | 248 | 10.08 | |||||||||
Property, fixtures and materials | 617 | 520 | 18.65 | |||||||||
Of which: | ||||||||||||
Rents expenses | 268 | 205 | 30.73 | |||||||||
Taxes other than income tax | 295 | 258 | 14.34 | |||||||||
Other expenses | 997 | 1,117 | (10.74 | ) | ||||||||
Total | 3,040 | 2,918 | 4.18 | |||||||||
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Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Interest and similar income | 26,176 | 20,042 | 30.61 | |||||||||
Interest expense and similar charges | (16,548 | ) | (11,904 | ) | 39.01 | |||||||
Net interest income | 9,628 | 8,138 | 18.31 | |||||||||
Dividend income | 348 | 380 | (8.42 | ) | ||||||||
Share of profit or loss of entities accounted for using the equity method | 241 | 308 | (21.75 | ) | ||||||||
Fee and commission income | 5,603 | 5,133 | 9.16 | |||||||||
Fee and commission expenses | (1,043 | ) | (943 | ) | 10.60 | |||||||
Net gains (losses) on financial assets and liabilities | 1,545 | 1,261 | 22.52 | |||||||||
Net exchange differences | 411 | 376 | 9.31 | |||||||||
Other operating income | 3,589 | 3,413 | 5.16 | |||||||||
Other operating expenses | (3,051 | ) | (2,923 | ) | 4.38 | |||||||
Gross income | 17,271 | 15,143 | 14.05 | |||||||||
Administrative costs | (7,253 | ) | (6,330 | ) | 14.58 | |||||||
Personnel expenses | (4,335 | ) | (3,989 | ) | 8.67 | |||||||
General and administrative expenses | (2,918 | ) | (2,342 | ) | 24.59 | |||||||
Depreciation and amortization | (577 | ) | (472 | ) | 22.25 | |||||||
Provisions (net) | (235 | ) | (1,338 | ) | (82.44 | ) | ||||||
Impairment on financial assets (net) | (1,903 | ) | (1,457 | ) | 30.61 | |||||||
Net operating income | 7,303 | 5,545 | 31.70 | |||||||||
Impairment on other assets (net) | (13 | ) | (12 | ) | 8.33 | |||||||
Gains (losses) in written off assets not classified as non-current assets held for sale | 13 | 956 | (98.64 | ) | ||||||||
Gains (losses) in non-current assets held for sale not classified as discontinued operations | 1,191 | 541 | 120.15 | |||||||||
Income before tax | 8,494 | 7,030 | 20.83 | |||||||||
Income tax | (2,079 | ) | (2,059 | ) | 0.97 | |||||||
Net income | 6,415 | 4,971 | 29.05 | |||||||||
Profit or loss attributed to minority interest | (289 | ) | (235 | ) | 22.98 | |||||||
Net income attributed to parent company | 6,126 | 4,736 | 29.35 | |||||||||
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• | In 2007, we recognized a gross gain of €847 million (€696 million net of taxes) from our sale of our stake in Iberdrola, S.A., which we recognized under the heading “Gains in non-current assets held for sale not classified as discontinued operations”. | |
• | In 2007, we recognized a gross gain of €273 million (€233 million net of taxes) from our sale of real estate as part of the reorganization of our real estate portfolio in connection with our construction of a new corporate headquarters, which we recognized under the heading “Gains in non-current assets held for sale not classified as discontinued operations”. | |
• | In 2007, we recognized a gross charge of €200 million (€135 million after tax) related to contributions we made to the BBVA Foundation for Microfinance, which we recognized under the heading “General and administrative expenses”. | |
• | In 2007, we recognized a gross charge of €100 million (€70 million net of tax) related to extraordinary early retirements in Spain under the transformation plan we announced in the fourth quarter of 2007, which we recorded under the heading “Provisions (net)”. | |
• | In 2006, we acquired 100% ownership of Texas Regional Bancshares, Inc. | |
• | In 2006, we acquired 100% ownership of Uno-E. | |
• | In 2006, we sold our 5.04% capital share in Repsol, which gave rise to a gain of €523 million. | |
• | In 2006, we sold our ownership interest in the share capital of BNL to BNP Paribas, which gave rise to a gain of €568 million. |
Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Interest and similar income | 26,176 | 20,042 | 30.61 | |||||||||
Interest expense and similar charges | (16,548 | ) | (11,904 | ) | 39.01 | |||||||
Net interest income | 9,628 | 8,138 | 18.31 | |||||||||
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Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Commitment fees | 55 | 56 | (1.79 | ) | ||||||||
Contingent liabilities | 229 | 204 | 12.25 | |||||||||
Documentary credits | 38 | 33 | 15.15 | |||||||||
Bank and other guarantees | 191 | 171 | 11.70 | |||||||||
Arising from exchange of foreign currencies and banknotes | 24 | 20 | 20.00 | |||||||||
Collection and payment services | 2,567 | 2,274 | 12.88 | |||||||||
Securities services | 2,089 | 2,017 | 3.57 | |||||||||
Counseling on and management of one-off transactions | 16 | 14 | 14.29 | |||||||||
Financial and similar counseling services | 23 | 18 | 27.78 | |||||||||
Factoring transactions | 25 | 19 | 31.58 | |||||||||
Non-banking financial products sales | 87 | 80 | 8.75 | |||||||||
Other fees and commissions | 488 | 431 | 13.23 | |||||||||
Fee and commission income | 5,603 | 5,133 | 9.16 | |||||||||
Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euro) | (In %) | |||||||||||
Brokerage fees on lending and deposit transactions | (7 | ) | (11 | ) | (36.36 | ) | ||||||
Fees and commissions assigned to third parties | (612 | ) | (560 | ) | 9.29 | |||||||
Other fees and commissions | (424 | ) | (372 | ) | 13.98 | |||||||
Fee and commission expenses | (1,043 | ) | (943 | ) | 10.60 | |||||||
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Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euro) | (In %) | |||||||||||
Wages and salaries | 3,297 | 3,012 | 9.46 | |||||||||
Social security costs | 546 | 504 | 8.33 | |||||||||
Transfers to internal pension provisions | 56 | 74 | (24.32 | ) | ||||||||
Contributions to external pension funds | 58 | 53 | 9.43 | |||||||||
Other personnel expenses | 378 | 346 | 9.25 | |||||||||
Total | 4,335 | 3,989 | 8.67 | |||||||||
Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euro) | (In %) | |||||||||||
Technology and systems | 539 | 495 | 8.89 | |||||||||
Communications | 236 | 218 | 8.26 | |||||||||
Advertising | 248 | 207 | 19.81 | |||||||||
Property, fixtures and materials | 520 | 451 | 15.30 | |||||||||
Of which: | ||||||||||||
Rents expenses | 205 | 173 | 18.50 | |||||||||
Taxes other than income tax | 258 | 203 | 27.09 | |||||||||
Other expenses | 1,117 | 768 | 45.44 | |||||||||
Total | 2,918 | 2,342 | 24.59 | |||||||||
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Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euros) | (In percentage) | |||||||||||
Net interest income | 4,828 | 4,391 | 9.95 | |||||||||
Net fees and commissions | 1,639 | 1,701 | (3.64 | ) | ||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 254 | 250 | 1.60 | |||||||||
Other operating income and expenses | 415 | 391 | 6.14 | |||||||||
Gross income | 7,136 | 6,732 | 6.00 | |||||||||
Administrative costs | (2,480 | ) | (2,505 | ) | (1.00 | ) | ||||||
Depreciation and amortization | (103 | ) | (111 | ) | (7.21 | ) | ||||||
Impairment on financial assets (net) | (809 | ) | (594 | ) | 36.20 | |||||||
Provisions (net) and other gains (losses) | 6 | 6 | 0.00 | |||||||||
Income before tax | 3,751 | 3,529 | 6.29 | |||||||||
Income tax | (1,125 | ) | (1,149 | ) | (2.09 | ) | ||||||
Net income | 2,625 | 2,380 | 10.25 | |||||||||
Profit or loss attributed to minority interest | — | 1 | n.m. | (1) | ||||||||
Net income attributed to parent company | 2,625 | 2,381 | 10.25 | |||||||||
(1) | Not meaningful |
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Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euros) | (In%) | |||||||||||
Net interest income | 745 | (7 | ) | n.m. | (1) | |||||||
Net fees and commissions | 413 | 446 | (7.40 | ) | ||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 144 | 791 | (81.80 | ) | ||||||||
Other operating income and expenses | 434 | 518 | (16.22 | ) | ||||||||
Gross income | 1,736 | 1,749 | (0.74 | ) | ||||||||
Administrative costs | (511 | ) | (467 | ) | 9.42 | |||||||
Depreciation and amortization | (9 | ) | (7 | ) | 28.57 | |||||||
Impairment on financial assets (net) | (256 | ) | (130 | ) | 96.92 | |||||||
Provisions (net) and other gains (losses) | (25 | ) | 9 | n.m. | (1) | |||||||
Income before tax | 934 | 1,154 | (19.06 | ) | ||||||||
Income tax | (174 | ) | (247 | ) | (29.55 | ) | ||||||
Net income | 760 | 907 | (16.21 | ) | ||||||||
Profit or loss attributed to minority interest | (6 | ) | (10 | ) | (40.00 | ) | ||||||
Net income attributed to parent company | 754 | 896 | (15.85 | ) | ||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Net interest income | 3,716 | 3,505 | 6.02 | |||||||||
Net fees and commissions | 1,189 | 1,305 | (8.89 | ) | ||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 376 | 311 | 20.90 | |||||||||
Other operating income and expenses | 154 | 115 | 33.91 | |||||||||
Gross income | 5,435 | 5,236 | 3.80 | |||||||||
Administrative costs | (1,727 | ) | (1,737 | ) | (0.58 | ) | ||||||
Depreciation and amortization | (73 | ) | (102 | ) | (28.43 | ) | ||||||
Impairment on financial assets (net) | (1,110 | ) | (834 | ) | 33.09 | |||||||
Provisions (net) and other gains (losses) | (25 | ) | 19 | n.m. | (1) | |||||||
Income before tax | 2,499 | 2,583 | (3.25 | ) | ||||||||
Income tax | (560 | ) | (701 | ) | (20.11 | ) | ||||||
Net income | 1,939 | 1,882 | 3.03 | |||||||||
Profit or loss attributed to minority interest | (1 | ) | (2 | ) | (50.00 | ) | ||||||
Net income attributed to parent company | 1,938 | 1,880 | 3.09 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Net interest income | 1,332 | 763 | 74.57 | |||||||||
Net fees and commissions | 546 | 314 | 73.89 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 123 | 37 | n.m. | (1) | ||||||||
Other operating income and expenses | 21 | 11 | 90.91 | |||||||||
Gross income | 2,022 | 1,125 | 79.73 | |||||||||
Administrative costs | (1,088 | ) | (621 | ) | 75.20 | |||||||
Depreciation and amortization | (244 | ) | (123 | ) | 98.37 | |||||||
Impairment on financial assets (net) | (365 | ) | (85 | ) | n.m. | (1). | ||||||
Provisions (net) and other gains (losses) | (15 | ) | 1 | n.m. | (1) | |||||||
Income before tax | 309 | 297 | 4.04 | |||||||||
Income tax | (99 | ) | (93 | ) | 6.45 | |||||||
Net income | 211 | 203 | 3.94 | |||||||||
Profit or loss attributed to minority interest | — | — | — | |||||||||
Net income attributed to the parent company | 211 | 203 | 3.94 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Net interest income | 2,199 | 1,746 | 25.95 | |||||||||
Net fees and commissions | 775 | 750 | 3.33 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 253 | 222 | 13.96 | |||||||||
Other losses (net) | (35 | ) | (18 | ) | 94.44 | |||||||
Gross income | 3,192 | 2,701 | 18.18 | |||||||||
Administrative costs | (1,315 | ) | (1,181 | ) | 11.35 | |||||||
Depreciation and amortization | (107 | ) | (93 | ) | 15.05 | |||||||
Impairment on financial assets (net) | (358 | ) | (262 | ) | 36.64 | |||||||
Provisions (net) and other gains (losses) | (17 | ) | (63 | ) | (73.02 | ) | ||||||
Income before tax | 1,396 | 1,102 | 26.68 | |||||||||
Income tax | (318 | ) | (197 | ) | 61.42 | |||||||
Net income | 1,078 | 905 | 19.12 | |||||||||
Profit or loss attributed to minority interest | (351 | ) | (282 | ) | 24.47 | |||||||
Net income attributed to parent company | 727 | 623 | 16.69 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2008 | 2007 | 2008/2007 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Net interest income | (1,135 | ) | (770 | ) | 47.40 | |||||||
Net fees and commissions | (35 | ) | 43 | n.m. | (1) | |||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 409 | 346 | 18.21 | |||||||||
Other operating income and expenses | 217 | 111 | 95.50 | |||||||||
Gross income | (543 | ) | (271 | ) | 100.37 | |||||||
Administrative costs | (633 | ) | (742 | ) | (14.69 | ) | ||||||
Depreciation and amortization | (164 | ) | (142 | ) | 15.49 | |||||||
Impairment on financial assets (net) | (43 | ) | 1 | n.m. | (1) | |||||||
Provisions (net) and other gains (losses) | (581 | ) | 984 | n.m. | (1) | |||||||
Income before tax | (1,963 | ) | (170 | ) | n.m. | (1) | ||||||
Income tax | 735 | 307 | 139.41 | |||||||||
Net income | (1,228 | ) | 137 | n.m. | (1) | |||||||
Profit or loss attributed to minority interest | (7 | ) | 5 | n.m. | (1) | |||||||
Net income attributed to parent company | (1,235 | ) | 142 | n.m. | (1) | |||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Net interest income | 4,391 | 3,800 | 15.55 | |||||||||
Net fees and commissions | 1,701 | 1,650 | 3.09 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 250 | 223 | 12.11 | |||||||||
Other operating income and expenses | 391 | 322 | 21.43 | |||||||||
Gross income | 6,732 | 5,996 | 12.27 | |||||||||
Administrative costs | (2,505 | ) | (2,445 | ) | 2.45 | |||||||
Depreciation and amortization | (111 | ) | (105 | ) | 5.71 | |||||||
Impairment on financial assets (net) | (594 | ) | (546 | ) | 8.79 | |||||||
Provisions (net) and other gains (losses) | 6 | 12 | (50.00 | ) | ||||||||
Income before tax | 3,529 | 2,911 | 21.23 | |||||||||
Income tax | (1,149 | ) | (1,023 | ) | 12.32 | |||||||
Net income | 2,380 | 1,887 | 26.13 | |||||||||
Profit or loss attributed to minority interest | 1 | (3 | ) | n.m. | (1) | |||||||
Net income attributed to parent company | 2,381 | 1,884 | 26.38 | |||||||||
(1) | Not meaningful |
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Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Net interest income | (7 | ) | 18 | n.m. | (1) | |||||||
Net fees and commissions | 446 | 383 | 16.45 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 791 | 501 | 57.88 | |||||||||
Other operating income and expenses | 518 | 538 | (3.72 | ) | ||||||||
Gross income | 1,749 | 1,441 | 21.37 | |||||||||
Administrative costs | (467 | ) | (363 | ) | 28.65 | |||||||
Depreciation and amortization | (7 | ) | (7 | ) | 0.00 | |||||||
Impairment on financial assets (net) | (130 | ) | (127 | ) | 2.36 | |||||||
Provisions (net) and other gains (losses) | 9 | 151 | (94.04 | ) | ||||||||
Income before tax | 1,154 | 1,094 | 5.48 | |||||||||
Income tax | (247 | ) | (227 | ) | 8.81 | |||||||
Net income | 907 | 866 | 4.73 | |||||||||
Profit or loss attributed to minority interest | (10 | ) | (7 | ) | 42.86 | |||||||
Net income attributed to parent company | 896 | 859 | 4.31 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Net interest income | 3,505 | 3,220 | 8.85 | |||||||||
Net fees and commissions | 1,305 | 1,276 | 2.27 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 311 | 260 | 19.62 | |||||||||
Other operating income and expenses | 115 | 129 | (10.85 | ) | ||||||||
Gross income | 5,236 | 4,885 | 7.18 | |||||||||
Administrative costs | (1,737 | ) | (1,694 | ) | 2.54 | |||||||
Depreciation and amortization | (102 | ) | (98 | ) | 4.08 | |||||||
Impairment on financial assets (net) | (834 | ) | (621 | ) | 34.30 | |||||||
Provisions (net) and other gains (losses) | 19 | (50 | ) | n.m. | (1) | |||||||
Income before tax | 2,583 | 2,422 | 6.65 | |||||||||
Income tax | (701 | ) | (710 | ) | (1.27 | ) | ||||||
Net income | 1,882 | 1,712 | 9.93 | |||||||||
Profit or loss attributed to minority interest | (2 | ) | (2 | ) | 0.00 | |||||||
Net income attributed to parent company | 1,880 | 1,710 | 9.94 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Net interest income | 763 | 280 | n.m. | (1) | ||||||||
Net fees and commissions | 314 | 113 | n.m. | (1) | ||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 37 | 14 | n.m. | (1) | ||||||||
Other operating income and expenses | 11 | 3 | n.m. | (1) | ||||||||
Gross income | 1,125 | 410 | n.m. | (1) | ||||||||
Administrative costs | (621 | ) | (252 | ) | n.m. | (1) | ||||||
Depreciation and amortization | (123 | ) | (28 | ) | n.m. | (1) | ||||||
Impairment on financial assets (net) | (85 | ) | (39 | ) | n.m. | (1) | ||||||
Provisions (net) and other gains (losses) | 1 | 2 | n.m. | (1) | ||||||||
Income before tax | 297 | 93 | n.m. | (1) | ||||||||
Income tax | (93 | ) | (29 | ) | n.m. | (1) | ||||||
Net income | 203 | 64 | n.m. | (1) | ||||||||
Profit or loss attributed to minority interest | — | — | n.m. | (1) | ||||||||
Net income attributed to parent company | 203 | 64 | n.m. | (1) | ||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euros) | (In percentages) | |||||||||||
Net interest income | 1,746 | 1,376 | 26.89 | |||||||||
Net fees and commissions | 750 | 664 | 12.95 | |||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 222 | 319 | (30.41 | ) | ||||||||
Other losses (net) | (18 | ) | (4 | ) | n.m. | (1) | ||||||
Gross income | 2,701 | 2,355 | 14.69 | |||||||||
Administrative costs | (1,181 | ) | (1,103 | ) | 7.07 | |||||||
Depreciation and amortization | (93 | ) | (93 | ) | 0.00 | |||||||
Impairment on financial assets (net) | (262 | ) | (150 | ) | 74.67 | |||||||
Provisions (net) and other gains (losses) | (63 | ) | (54 | ) | 16.67 | |||||||
Income before tax | 1,102 | 955 | 15.39 | |||||||||
Income tax | (197 | ) | (229 | ) | 13.97 | |||||||
Net income | 905 | 726 | 24.66 | |||||||||
Profit or loss attributed to minority interest | (282 | ) | (217 | ) | 29.95 | |||||||
Net income attributed to parent company | 623 | 509 | 22.40 | |||||||||
(1) | Not meaningful. |
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Year Ended December 31, | Change | |||||||||||
2007 | 2006 | 2007/2006 | ||||||||||
(In millions of euros) | (In %) | |||||||||||
Net interest income | (770 | ) | (557 | ) | 38.24 | |||||||
Net fees and commissions | 43 | 105 | (59.05 | ) | ||||||||
Net gains (losses) on financial assets and liabilities and exchange differences | 346 | 321 | 7.79 | |||||||||
Other operating income and expenses | 111 | 189 | (41.27 | ) | ||||||||
Gross income | (271 | ) | 57 | n.m. | (1) | |||||||
Administrative costs | (742 | ) | (473 | ) | 56.87 | |||||||
Depreciation and amortization | (142 | ) | (141 | ) | 0.71 | |||||||
Impairment on financial assets (net) | 1 | 26 | (96.15 | ) | ||||||||
Provisions (net) and other gains (losses) | 984 | 87 | n.m. | (1) | ||||||||
Income before tax | (170 | ) | (444 | ) | (61.71 | ) | ||||||
Income tax | 307 | 159 | 93.08 | |||||||||
Net income | 137 | (285 | ) | (148.07 | ) | |||||||
Profit or loss attributed to minority interest | 5 | (6 | ) | (183.33 | ) | |||||||
Net income attributed to parent company | 142 | (291 | ) | (148.80 | ) | |||||||
(1) | Not meaningful. |
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B. | Liquidity and Capital Resources |
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Customer deposits | 255,236 | 219,610 | 186,749 | |||||||||
Due to credit entities | 66,805 | 88,098 | 57,805 | |||||||||
Debt securities in issue | 121,144 | 117,909 | 100,079 | |||||||||
Other financial liabilities | 7,420 | 6,239 | 6,772 | |||||||||
Total | 450,605 | 431,856 | 351,405 | |||||||||
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Senior debt | 4.3 years | |||
Subordinated debt (excluding preference shares) | 8.9 years |
Short Term | Long Term | Financial Strength | Outlook | |||||||||||||
Moody’s | P-1 | Aa1 | B | Stable | ||||||||||||
Fitch — IBCA | F-1+ | AA- | A/B | Positive | ||||||||||||
Standard & Poor’s | A-1+ | AA | — | Stable |
C. | Research and Development, Patents and Licenses, etc. |
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D. | Trend Information |
• | uncertainties relating to economic growth expectations 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. Now that there is a contagion of the crisis to Europe, and it is possible that the Spanish economy could enter into recession during 2009 or thereafter; | |
• | the ongoing 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 and has been further exacerbated by worsening economic conditions in the real economy worldwide; | |
• | the downturn in the Spanish economy could be worse than expected, if it is further exacerbated by the current international financial crisis; | |
• | the downward adjustment in the housing sector in Spain could be prolonged and negatively affect credit demand and households 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 growth are likely to postpone investment decisions, therefore negatively affecting mortgage growth rates | |
• | the ongoing slowdown in the U.S. financial sector, which is having negative effects on the U.S. economy and consequently in the global markets; | |
• | a further downturn 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. |
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E. | Off-Balance Sheet Arrangements |
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Contingent liabilities: | ||||||||||||
Rediscounts, endorsements and acceptances | 81 | 58 | 44 | |||||||||
Guarantees and other sureties | 27,649 | 27,997 | 24,708 | |||||||||
Other contingent liabilities | 8,222 | 8,804 | 5,235 | |||||||||
Total contingent liabilities | 35,952 | 36,859 | 29,987 | |||||||||
Commitments: | ||||||||||||
Balances drawable by third parties: | ||||||||||||
Credit entities | 2,021 | 2,619 | 4,356 | |||||||||
Public authorities | 4,221 | 4,419 | 3,122 | |||||||||
Other domestic customers | 37,529 | 42,448 | 43,730 | |||||||||
Foreign customers | 48,892 | 51,958 | 47,018 | |||||||||
Total balances drawable by third parties | 92,663 | 101,444 | 98,226 | |||||||||
Other commitments | 6,234 | 5,496 | 4,995 | |||||||||
Total commitments | 98,897 | 106,940 | 103,221 | |||||||||
Total contingent liabilities and commitments | 134,849 | 143,799 | 133,208 | |||||||||
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Mutual funds | 37,076 | 63,487 | 62,246 | |||||||||
Pension funds | 42,701 | 59,143 | 55,505 | |||||||||
Other managed assets | 24,582 | 31,936 | 26,465 | |||||||||
Total | 104,359 | 154,566 | 144,216 | |||||||||
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F. | Tabular Disclosure of Contractual Obligations |
Less Than | One to Five | Over | ||||||||||||||
One Year | Years | Five Years | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
Senior debt | 35,376 | 45,470 | 20,483 | 101,329 | ||||||||||||
Subordinated liabilities | 1,855 | 3,582 | 10,813 | 16,250 | ||||||||||||
Capital lease obligations | — | — | — | — | ||||||||||||
Operating lease obligations | 336 | 87 | 105 | 528 | ||||||||||||
Purchase obligations | 33 | 4 | — | 37 | ||||||||||||
Total(*) | 37,600 | 49,143 | 31,401 | 118,144 | ||||||||||||
(*) | 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 2008, 2007 and 2006 is detailed in Note 38.2 to the Consolidated Financial Statements. Commitments with personnel for 2008, 2007 and 2006 are detailed in Note 25 to the Consolidated Financial Statements. |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
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. |
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• | 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. |
Present Principal | ||||||||||||
Outside Occupation | ||||||||||||
and Five-Year | ||||||||||||
Name | Birth Year | Current Position | Date Nominated | Date Re-elected | Employment History(*) | |||||||
Francisco González Rodríguez(1) | 1944 | Chairman and Chief Executive Officer | January 28, 2000 | February 26, 2005 | Chairman &CEO of BBVA, since January 2000. Director of BBVA Bancomer Servicios, S.A.; Grupo Financiero BBVA Bancomer, S.A. C.V. and BBVA Bancomer, S.A. | |||||||
José Ignacio Goirigolzarri Tellaeche(1) | 1954 | President and Chief Operating Officer | December 18, 2001 | March 14, 2008 | President and Chief Operating Officer, BBVA, since 2001. Director of BBVA Bancomer Servicios, S.A.; Director, Grupo Financiero BBVA Bancomer and BBVA Bancomer, S.A. Citic Bank board member. | |||||||
Tomás Alfaro Drake(2) | 1951 | Independent Director | March 18, 2006 | Director of Business Management and Administration and Business Sciences programs at Universidad Francisco de Vitoria, since 1998. | ||||||||
Juan Carlos Álvarez Mezquíriz(1)(3) | 1959 | Independent Director | January 28, 2000 | March 18, 2006 | Managing Director of Grupo Eulen, S.A. | |||||||
Rafael Bermejo Blanco(2)(4) | 1940 | Independent Director | March 16, 2007 | Chairman of the Audit & Compliance Committee of BBVA since 28th March 2007. Technical Secretary General of Banco Popular, 1999 — 2004. | ||||||||
Ramón Bustamante y de la Mora(2)(4) | 1948 | Independent Director | January 28, 2000 | February 26, 2005 | Since 1997 he is Chairman of Unitaria. |
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Present Principal | ||||||||||||
Outside Occupation | ||||||||||||
and Five-Year | ||||||||||||
Name | Birth Year | Current Position | Date Nominated | Date Re-elected | Employment History(*) | |||||||
José Antonio Fernández Rivero(4) | 1949 | Independent Director | February 28, 2004 | Chairman of Risks Committee since 30th March 2004; Appointed Group General Manager, 2000--2003; From 2003 to 2005: Deputy Chairman of Telefónica and Member of its Audit and Regulation Committees. Member of the Board and Executive Committee of Iberdrola, Director of Banco de Crédito Local, and Chairman of Adquira. | ||||||||
Ignacio Ferrero Jordi(1)(3) | 1945 | Independent Director | January 28, 2000 | February 26, 2005 | Chairman and COO of Nutrexpa, S.A. and La Piara, S.A. | |||||||
Román Knörr Borrás(1) | 1939 | Independent Director | May 28, 2002 | March 14, 2008 | Chairman, Carbónicas Alavesas, S.A.; Director, Mediasal 2000, S.A. and President of the Alava Chamber of Commerce; Chairman, Confebask (Basque Business Confederation) from 1999 to 2005; Director of Aguas de San Martín de Veri, S.A. until January 2006. Plenary member and Chairman of the Training Committee of the Supreme Council of Chambers of Commerce. | |||||||
Carlos Loring Martínez de Irujo(2)(3) | 1947 | Independent Director | February 28, 2004 | March 18, 2006 | Partner of J&A Garrigues, from 1977 until 2004; Director of the Department of Mergers and Acquisitions, of Banking and Capital Markets, Member of the Management Committee since 1985 | |||||||
José Maldonado Ramos(4)(5) | 1952 | Director and General Secretary | January 28, 2000 | February 28, 2004 | Director and General Secretary, BBVA, since January 2000. | |||||||
Enrique Medina Fernández(1)(4) | 1942 | Independent Director | January 28, 2000 | February 28, 2004 | Deputy Chairman of Gines Navarro Construcciones until it merged to become Grupo ACS. | |||||||
Susana Rodríguez Vidarte(2)(3) | 1955 | Independent Director | May 28, 2002 | March 18, 2006 | Dean of Deusto “La Comercial” University since 1996. |
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(*) | 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 and Compensation Committee. | |
(4) | Member of the Risk Committee. | |
(5) | Secretary of the board of directors. |
Present Principal Outside Occupation and | ||||
Name | Current Position | Five-Year Employment History(*) | ||
Francisco González Rodríguez | Chairman and Chief Executive Officer | Chairman, BBVA, since January 2000. Director of BBVA Bancomer Servicios, S.A; Grupo Financiero BBVA Bancomer, S.A. C.V. and BBVA Bancomer, S.A. | ||
José Ignacio Goirigolzarri Tellaeche | President and Chief Operating Officer | Director, BBVA Bancomer Servicios, S.A., Grupo Financiero BBVA Bancomer and BBVA Bancomer, S.A. | ||
José Maldonado Ramos | Director and General Secretary | Director and General Secretary, Argentaria (BBVA since January 2001), since May 1997. | ||
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 — 2002. | ||
Ángel Cano Fernández | Human Resources and Services | Chief Financial Officer, BBVA, 2001 — 2002, Controller, BBVA, 2000 — 2001; Controller, Argentaria, 1998 — 2000. | ||
Manuel González Cid | Head of Finance Division | Deputy General Manager, BBVA — Head of the Merger Office, 1999 — 2001; Head of Corporate Development, BBVA, 2001 — 2002. Director and Vice president of Repsol YPF, S.A. 2003-2005. | ||
José Sevilla Álvarez | Head of Risk | Head of Finance Division, Latin American Banking, BBV, 1998 — December 2001; Head of Business Development, BBVA, December 2001 — January 2003; Head of the Office of the Chairman, with responsibility for accountancy, internal audit and compliance, since January 2003-2006. |
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Present Principal Outside Occupation and | ||||
Name | Current Position | Five-Year Employment History(*) | ||
José María García Meyer-Dohner | Head of United States | BBVA Business Management and Coordination Manager for Mexico, 2000-2001. Commercial Banking Manager for BBVA Bancomer, 2001 — 2004. Retail Banking Manager for the U.S., August 2004. | ||
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 Global Operations | 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. | ||
Vila Torres Carlos | 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. |
(*) | Where no date is provided, positions are currently held. |
B. | Compensation |
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Standing | Appointments and | |||||||||||||||||||||||
Board | Committee | Audit. | Risks | Compensation | Total | |||||||||||||||||||
Tomás Alfaro Drake | 129 | — | 71 | — | — | 200 | ||||||||||||||||||
Juan Carlos Álvarez Mezquiriz | 129 | 167 | — | — | 42 | 338 | ||||||||||||||||||
Rafael Bermejo Blanco | 129 | — | 179 | 107 | — | 415 | ||||||||||||||||||
Richard C. Breeden | 350 | — | — | — | — | 350 | ||||||||||||||||||
Ramón Bustamante y de La Mora | 129 | — | 71 | 107 | — | 307 | ||||||||||||||||||
José Antonio Fernández Rivero(1) | 129 | — | — | 214 | — | 343 | ||||||||||||||||||
Ignacio Ferrero Jordi | 129 | 167 | — | — | 42 | 338 | ||||||||||||||||||
Román Knörr Borrás | 129 | 167 | — | — | — | 296 | ||||||||||||||||||
Carlos Loring Martínez de Irujo | 129 | — | 71 | — | 107 | 307 | ||||||||||||||||||
Enrique Medina Fernández | 129 | 167 | — | 107 | — | 403 | ||||||||||||||||||
Susana Rodríguez Vidarte | 129 | — | 71 | — | 42 | 242 | ||||||||||||||||||
Total | 1,640 | 668 | 463 | 535 | 233 | 3,539 |
(1) | In 2008, Mr. José Antonio Fernández Rivero, in addition to the amounts detailed in the table above, also received €652 thousand for early retirement from his previous management responsibilities in BBVA. |
Fixed | Variable | |||||||||||
Remunerations | Remunerations(1) | Total(2) | ||||||||||
Chairman & CEO | 1,928 | 3,802 | 5,729 | |||||||||
President & COO | 1,425 | 3,183 | 4,609 | |||||||||
Company Secretary | 665 | 886 | 1,552 | |||||||||
Total | 4,019 | 7,871 | 11,890 |
(1) | Figures relating to variable remuneration for 2007 paid in 2008. | |
(2) | In addition, the executive directors received remuneration in kind during 2008 totaling €38 thousand, of which €9 thousand relates to the Chairman & CEO, €16 thousand relates to the President & COO and €13 thousand to the Company Secretary. |
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Post | (In thousands of euros) | |||
Chairman & CEO | 72,547 | |||
President & COO | 52,495 | |||
Company Secretary | 8,710 | |||
TOTAL | 133,752 |
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Number Assigned | Multiplier | Number | ||||||||||
Theoretical Shares | Ratio | of Shares | ||||||||||
Chairman & CEO | 320,000 | 1.42 | 454,400 | |||||||||
President & COO | 270,000 | 1.42 | 383,400 | |||||||||
Director & Company Secretary | 100,000 | 1.42 | 142,000 | |||||||||
Other members of board of directors | 1,124,166 | 1.42 | 1,596,316 |
Accumulative | ||||||||
2008 | Number | |||||||
Theoretical | of Theoretical | |||||||
Directors | Shares | Shares | ||||||
Tomás Alfaro Drake | 2,655 | 4,062 | ||||||
Juan Carlos Alvarez Mezquiriz | 4,477 | 23,968 | ||||||
Rafael Bermejo Blanco | 4,306 | 4,306 | ||||||
Ramón Bustamante y de la Mora | 4,064 | 23,987 | ||||||
José Antonio Fernández Rivero | 4,533 | 14,452 | ||||||
Ignacio Ferrero Jordi | 4,477 | 24,540 | ||||||
Román Knörr Borrás | 3,912 | 19,503 | ||||||
Carlos Loring Martínez de Irujo | 4,067 | 11,751 | ||||||
Enrique Medina Fernández | 5,322 | 33,357 | ||||||
Susana Rodríguez Vidarte | 3,085 | 13,596 | ||||||
TOTAL | 40,898 | 173,522 |
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C. | Board Practices |
Chairman and Chief Executive Officer: | Mr. Francisco González Rodríguez | |
President and Chief Operating Officer: | Mr. José Ignacio Goirigolzarri Tellaeche | |
Members: | Mr. Juan Carlos Álvarez Mezquíriz | |
Mr. Ignacio Ferrero Jordi | ||
Mr. Román Knörr Borrás | ||
Mr. Enrique Medina Fernández |
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Chairman: | Mr. Rafael Bermejo Blanco | |
Members: | Mr. Tomás Alfaro Drake | |
Mr. Ramón Bustamante y de la Mora | ||
Mr. Carlos Loring Martínez de Irujo | ||
Mrs. Susana Rodríguez Vidarte |
• | Supervise the internal control systems’ sufficiency, appropriateness and efficacy in order to ensure the accuracy, reliability, scope and clarity of the financial statements of the Company and its consolidated group in their annual and quarterly reports. The Committee also oversees the accounting and financial information that the Bank of Spain or other regulators from Spain and abroad may require. | |
• | Oversee compliance with applicable national 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. The Committee also oversees that any requests for information or for a response from the competent bodies in these matters are dealt with in due time and in due form. | |
• | Ensure that the internal codes of ethics and conduct and securities market operations, as they apply to Group personnel, comply with regulations and are properly suited to the Bank. | |
• | Enforce compliance with provisions contained in the BBVA directors charter, and ensure that directors satisfy applicable standards regarding their conduct on the securities markets. | |
• | Ensure the accuracy, reliability, scope and clarity of the financial statements. The committee shall constantly monitor the process by which they are drawn up, holding frequent meetings with the Bank executives and the external auditor responsible for them. |
• | 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. |
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Chairman: | Mr. Carlos Loring Martínez de Irujo | |
Members: | Mr. Juan Carlos Álvarez Mezquíriz | |
Mr. Ignacio Ferrero Jordi | ||
Mrs. Susana Rodríguez Vidarte |
• | Should the chairmanship of the board or the post of chief executive officer fall vacant, examine or organize, in the manner it deems suitable, the succession of the chairmanand/or chief executive officer and put corresponding proposals to the board for an orderly, well-planned succession. | |
• | Submit an annual report on the directors remuneration policy to the board of directors. | |
• | Report the appointments and severances of senior managers and propose senior-management remuneration policy to the board, along with the basic terms and conditions for their contracts. |
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Chairman: | Mr. José Antonio Fernández Rivero | |
Members: | Mr. Ramón Bustamante y de la Mora | |
Mr. Rafael Bermejo Blanco | ||
Mr. José Maldonado Ramos | ||
Mr. Enrique Medina Fernández |
• | Analyze and evaluate proposals related to the Group’s risk management and oversight policies and strategy. In particular, these shall identify: |
• | Monitor the match between risks accepted and the profile established. | |
• | 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. | |
• | Check that the Group possesses the means, systems, structures and resources benchmarked against best practices to allow implementation of its risk management strategy. |
D. | Employees |
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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 | ||||||||||||
New York | 157 | 18 | — | 175 | ||||||||||||
Miami | 11 | — | — | 11 | ||||||||||||
Other U.S. | — | 12,461 | — | 12,461 | ||||||||||||
Total North America | 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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Country | BBVA | Banks | Companies | Total | ||||||||||||
Spain | 28,892 | 725 | 1,489 | 31,106 | ||||||||||||
United Kingdom | 113 | — | 7 | 140 | ||||||||||||
France | 109 | — | — | 109 | ||||||||||||
Italy | 61 | — | 171 | 232 | ||||||||||||
Germany | 7 | — | — | 7 | ||||||||||||
Switzerland | — | 111 | — | 111 | ||||||||||||
Portugal | — | 925 | — | 925 | ||||||||||||
Belgium | 38 | — | — | 38 | ||||||||||||
Jersey | — | 3 | — | 3 | ||||||||||||
Russia | 3 | — | — | 3 | ||||||||||||
Ireland | — | 5 | — | 5 | ||||||||||||
Total Europe | 29,243 | 1,769 | 1,667 | 32,679 | ||||||||||||
New York | 150 | 14 | — | 164 | ||||||||||||
Miami | 86 | — | — | 86 | ||||||||||||
Other U.S. | — | 13,082 | — | 13,082 | ||||||||||||
Grand Cayman | 2 | — | — | 2 | ||||||||||||
Total North America | 238 | 13,096 | — | 13,334 | ||||||||||||
Panama | — | 285 | — | 285 | ||||||||||||
Puerto Rico | — | 999 | — | 999 | ||||||||||||
Argentina | — | 7,483 | — | 7,483 | ||||||||||||
Brazil | 4 | — | 15 | 19 | ||||||||||||
Colombia | — | 5,969 | — | 5,969 | ||||||||||||
Venezuela | — | 5,822 | — | 5,822 | ||||||||||||
Mexico | — | 35,200 | — | 35,200 | ||||||||||||
Uruguay | 36 | 158 | — | 194 | ||||||||||||
Paraguay | — | 139 | — | 139 | ||||||||||||
Bolivia | — | — | 196 | 196 | ||||||||||||
Chile | — | 4,431 | — | 4,431 | ||||||||||||
Dominican Republic | — | — | — | — | ||||||||||||
Cuba | 1 | — | — | 1 | ||||||||||||
Peru | — | 4,874 | — | 4,874 | ||||||||||||
Ecuador | — | — | 167 | 167 | ||||||||||||
Total Latin America | 41 | 65,360 | 378 | 65,779 | ||||||||||||
Hong Kong | 90 | — | — | 90 | ||||||||||||
Japan | 11 | — | — | 11 | ||||||||||||
China | 6 | — | — | 6 | ||||||||||||
Singapore | 14 | — | — | 14 | ||||||||||||
Total Asia | 121 | — | — | 121 | ||||||||||||
Total | 29,643 | 80,228 | 2,045 | 111,913 | ||||||||||||
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Country | BBVA | Banks | Companies | Total | ||||||||||||
Spain | 28,601 | 722 | 1,259 | 30,582 | ||||||||||||
United Kingdom | 127 | — | 7 | 134 | ||||||||||||
France | 108 | — | — | 108 | ||||||||||||
Italy | 55 | — | — | 55 | ||||||||||||
Germany | 4 | — | — | 4 | ||||||||||||
Switzerland | 2 | 108 | — | 110 | ||||||||||||
Portugal | — | 953 | — | 953 | ||||||||||||
Belgium | 36 | — | — | 36 | ||||||||||||
Jersey | — | 3 | — | 3 | ||||||||||||
Russia | 3 | — | — | 3 | ||||||||||||
Andorra | — | — | — | — | ||||||||||||
Ireland | — | 4 | — | 4 | ||||||||||||
Gibraltar | — | — | — | — | ||||||||||||
Total Europe | 28,936 | 1,790 | 1,266 | 31,992 | ||||||||||||
New York | 137 | 20 | — | 157 | ||||||||||||
Miami | 112 | — | — | 112 | ||||||||||||
Other U.S. | — | 3,646 | — | 3,646 | ||||||||||||
Grand Cayman | 3 | — | — | 3 | ||||||||||||
Total North America | 252 | 3,666 | — | 3,918 | ||||||||||||
Panama | — | 266 | — | 266 | ||||||||||||
Puerto Rico | — | 1,044 | — | 1,044 | ||||||||||||
Argentina | — | 7,215 | — | 7,215 | ||||||||||||
Brazil | 4 | — | — | 4 | ||||||||||||
Colombia | — | 6,408 | — | 6,408 | ||||||||||||
Venezuela | — | 5,749 | — | 5,749 | ||||||||||||
Mexico | — | 32,847 | — | 32,847 | ||||||||||||
Uruguay | 39 | 151 | — | 190 | ||||||||||||
Paraguay | — | 108 | — | 108 | ||||||||||||
Bolivia | — | — | 188 | 188 | ||||||||||||
Chile | — | 4,068 | — | 4,068 | ||||||||||||
Dominican Republic | — | — | 97 | 97 | ||||||||||||
Cuba | 1 | — | — | 1 | ||||||||||||
Peru | — | 4,191 | — | 4,191 | ||||||||||||
Ecuador | — | — | 168 | 168 | ||||||||||||
Total Latin America | 44 | 62,047 | 453 | 62,544 | ||||||||||||
Hong Kong | 77 | — | — | 77 | ||||||||||||
Japan | 9 | — | — | 9 | ||||||||||||
China | 8 | — | — | 8 | ||||||||||||
Singapore | 5 | — | — | 5 | ||||||||||||
Total Asia | 99 | — | — | 99 | ||||||||||||
Total | 29,331 | 67,503 | 1,719 | 98,553 | ||||||||||||
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E. | Share Ownership |
Directly | Indirectly | % | ||||||||||||||
Owned | Owned | Total | Capital | |||||||||||||
Name | Shares | Shares | Shares | Stock | ||||||||||||
GONZALEZ RODRÍGUEZ, FRANCISCO | 307,011 | 1,508,904 | 1,815,915 | 0.048 | ||||||||||||
GOIRIGOLZARRI TELLAECHE, JOSE IGNACIO | 291,907 | 471,944 | 763,851 | 0.020 | ||||||||||||
ALFARO DRAKE, TOMÁS | 8,959 | — | 8,959 | 0.000 | ||||||||||||
ALVAREZ MEZQUIRIZ, JUAN CARLOS | 140,179 | — | 140,179 | 0.004 | ||||||||||||
BERMEJO BLANCO, RAFAEL | 21,000 | — | 21,000 | 0.001 | ||||||||||||
BUSTAMANTE Y DE LA MORA, RAMON | 10,139 | 2,000 | 12,139 | — | ||||||||||||
FERNANDEZ RIVERO, JOSÉ ANTONIO | 50,000 | 825 | 50,825 | 0.001 | ||||||||||||
FERRERO JORDI, IGNACIO | 2,787 | 51,300 | 54,087 | 0.001 | ||||||||||||
KNÖRR BORRÁS, ROMÁN | 36,637 | 6,987 | 43,624 | 0.001 | ||||||||||||
LORING MARTÍNEZ DE IRUJO, CARLOS | 39,149 | — | 39,149 | 0.001 | ||||||||||||
MALDONADO RAMOS, JOSÉ | 99,235 | — | 99,235 | 0.003 | ||||||||||||
MEDINA FERNÁNDEZ, ENRIQUE | 30,831 | 1,160 | 31,991 | 0.001 | ||||||||||||
RODRIGUEZ VIDARTE, SUSANA | 16,037 | 2,272 | 18,309 | — | ||||||||||||
TOTAL | 1,053,871 | 2,045,392 | 3,099,263 | 0.083 |
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 |
ITEM 8. | FINANCIAL INFORMATION |
A. | Consolidated Statements and Other Financial Information |
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Per Share | ||||||||||||||||||||||||||||||||||||||||
First Interim | Second Interim | Third Interim | Final | Total | ||||||||||||||||||||||||||||||||||||
€ | $ | € | $ | € | $ | € | $ | € | $ | |||||||||||||||||||||||||||||||
2004 | € | 0.100 | $ | 0.125 | € | 0.100 | $ | 0.125 | € | 0.100 | $ | 0.125 | € | 0.142 | $ | 0.177 | € | 0.442 | $ | 0.552 | ||||||||||||||||||||
2005 | € | 0.115 | $ | 0.143 | € | 0.115 | $ | 0.143 | € | 0.115 | $ | 0.143 | € | 0.186 | $ | 0.231 | € | 0.531 | $ | 0.660 | ||||||||||||||||||||
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 |
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B. | Significant Changes |
ITEM 9. | THE OFFER AND LISTING |
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Euro per Share | ||||||||
High | Low | |||||||
Fiscal year ended December 31, 2004 | ||||||||
Annual | 13.09 | 10.22 | ||||||
Fiscal year ended December 31, 2005 | ||||||||
Annual | 15.17 | 11.95 | ||||||
Fiscal year ended December 31, 2006 | ||||||||
Annual | 19.49 | 14.91 | ||||||
Fiscal year ended December 31, 2007 | ||||||||
Annual | 20.08 | 15.60 | ||||||
First Quarter | 20.08 | 17.38 | ||||||
Second Quarter | 18.87 | 17.65 | ||||||
Third Quarter | 18.43 | 15.60 | ||||||
Fourth Quarter | 17.54 | 16.06 | ||||||
Fiscal year ended December 31, 2008 | ||||||||
Annual | 16.58 | 7.16 | ||||||
First Quarter | 16.58 | 12.76 | ||||||
Second Quarter | 15.27 | 12.17 | ||||||
Third Quarter | 12.41 | 10.30 | ||||||
Fourth Quarter | 12.30 | 7.16 | ||||||
Month ended September 30, 2008 | 11.86 | 10.30 | ||||||
Month ended October 31, 2008 | 12.30 | 7.24 | ||||||
Month ended November 30, 2008 | 10.13 | 7.16 | ||||||
Month ended December 31, 2008 | 8.72 | 7.62 | ||||||
Fiscal year ended December 31, 2009 | ||||||||
Month ended January 31, 2009 | 9.28 | 6.45 | ||||||
Month ended February 28, 2009 | 7.50 | 5.82 | ||||||
Month ended March 31 (through March 27), 2009 | 6.57 | 4.68 |
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U.S. Dollars per ADS | ||||||||
High | Low | |||||||
Fiscal year ended December 31, 2004 | ||||||||
Annual | 17.77 | 12.47 | ||||||
Fiscal year ended December 31, 2005 | ||||||||
Annual | 17.91 | 15.08 | ||||||
Fiscal year ended December 31, 2006 | ||||||||
Annual | 25.15 | 18.21 | ||||||
Fiscal year ended December 31, 2007 | ||||||||
Annual | 26.23 | 21.56 | ||||||
First Quarter | 26.23 | 22.79 | ||||||
Second Quarter | 25.37 | 23.56 | ||||||
Third Quarter | 23.57 | 21.56 | ||||||
Fourth Quarter | 25.48 | 23.44 | ||||||
Fiscal year ended December 31, 2008 | ||||||||
Annual | 24.27 | 8.45 | ||||||
First Quarter | 24.27 | 19.32 | ||||||
Second Quarter | 23.90 | 18.97 | ||||||
Third Quarter | 19.56 | 14.59 | ||||||
Fourth Quarter | 16.63 | 8.45 | ||||||
Month ended September 30, 2008 | 17.46 | 14.59 | ||||||
Month ended October 31, 2008 | 16.63 | 9.28 | ||||||
Month ended November 30, 2008 | 12.99 | 8.45 | ||||||
Month ended December 31, 2008 | 12.49 | 9.27 | ||||||
Fiscal year ended December 31, 2009 | ||||||||
Month ended January 31, 2009 | 12.66 | 8.32 | ||||||
Month ended February 28, 2009 | 9.70 | 7.43 | ||||||
Month ended March 31, 2009 (through March 27) | 8.90 | 5.76 |
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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. |
• | 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; |
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• | 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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ITEM 10. | ADDITIONAL INFORMATION |
A. | Share Capital |
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. |
• | issuances of debt; | |
• | capital increases or decreases; | |
• | merger of BBVA; and | |
• | any other amendment to the bylaws. |
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C. | Material Contracts |
D. | Exchange Controls |
• | 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. |
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• | suspend the voting rights corresponding to such shares for up to three years; | |
• | take control of the bank or replace the directors; or | |
• | revoke the bank’s license. |
E. | Taxation |
• | a citizen or a resident of the United States, | |
• | a corporation or other entity treated as a corporation, created or organised 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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• | 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; |
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• | dealers and traders who use a mark-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 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 |
I. | Subsidiary Information |
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
• | Market risk: the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. There are three types of market risk: exchange rate risk, interest rate risk and equity/commodity risk. | |
• | Credit risk: the risk that one party to a financial instrument will cause a financial loss to the other party to such instrument by failing to satisfy an obligation under such instrument. | |
• | Liquidity risk: the risk that an entity will not be able to meet obligations associated with financial liabilities or will be forced to secure funding on onerous conditions as a result of difficulties encountered in meeting its obligations. |
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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. |
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• | 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. |
(1) | On 29-Feb-06 the Bank of Spain approved the Algorithmics internal model for the European and Mexican trading portfolios. The methodology applied for the VaR metric in these businesses is the historical simulation. |
Risk | December 31, 2008 | |||
(In millions of euros) | ||||
Interest/Spread risk | 24.2 | |||
Exchange rate risk | 7.4 | |||
Equity risk | 1.1 | |||
Vega/Correlation risk | 14.8 | |||
Diversification effect | (24.3 | ) | ||
Total | 23.3 | |||
Average 2008 | 20.2 | |||
Maximum 2008 | 35.3 | |||
Minimum 2008 | 12.8 | |||
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As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Financial assets held for trading | 67,502 | 53,156 | 41,842 | |||||||||
Debt securities | 26,556 | 38,392 | 30,426 | |||||||||
Public sector | 20,778 | 27,960 | 20,939 | |||||||||
Credit institutions | 2,825 | 6,020 | 6,352 | |||||||||
Other sectors | 2,953 | 4,412 | 3,135 | |||||||||
Trading derivatives | 40,946 | 14,764 | 11,416 |
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Average Impact on Net Interest Income | ||||||||||||||||||||
100 Basis-Point | ||||||||||||||||||||
100 Basis-Point Increase | Decrease | |||||||||||||||||||
Entities | Euro | Dollar | Other | Total | Total | |||||||||||||||
(In millions of euros) | ||||||||||||||||||||
Europe | (89.3 | ) | (30.1 | ) | +0.7 | (115.0 | ) | +136.9 | ||||||||||||
BBVA Bancomer | — | +18.2 | +25.2 | +43.4 | (43.4 | ) | ||||||||||||||
BBVA Puerto Rico | — | +2.0 | — | +2.0 | (3.2 | ) | ||||||||||||||
Compass | — | (8.3 | ) | — | (8.3 | ) | +4.6 | |||||||||||||
BBVA Chile | — | +0.2 | (0.5 | ) | (0.3 | ) | +0.1 | |||||||||||||
BBVA Colombia | — | (0.2 | ) | +8.9 | +8.6 | (8.7 | ) | |||||||||||||
BBVA Banco Continental | — | (1.2 | ) | +2.9 | +1.7 | (1.8 | ) | |||||||||||||
BBVA Banco Provincial | — | +1.2 | (1.4 | ) | (0.2 | ) | +0.2 | |||||||||||||
BBVA Banco Francés | — | (0.2 | ) | +0.3 | +0.1 | (0.1 | ) | |||||||||||||
Average Impact on Economic Value | ||||||||||||||||||||
100 Basis-Point | ||||||||||||||||||||
100 Basis-Point Increase | Decrease | |||||||||||||||||||
Entities | Euro | Dollar | Other | Total | Total | |||||||||||||||
(In millions of euros) | ||||||||||||||||||||
Europe | +140.6 | +14.1 | (1.1 | ) | +152.6 | (196.2 | ) | |||||||||||||
BBVA Bancomer | — | +55.1 | (401.8 | ) | (346.0 | ) | +331.1 | |||||||||||||
BBVA Puerto Rico | — | +6.4 | — | +6.4 | (18.6 | ) | ||||||||||||||
Compass | — | (127.4 | ) | — | (127.4 | ) | +44.9 | |||||||||||||
BBVA Chile | — | +3.2 | (54.3 | ) | (51.1 | ) | +39.7 | |||||||||||||
BBVA Colombia | — | (0.8 | ) | (9.5 | ) | (10.4 | ) | +11.4 | ||||||||||||
BBVA Banco Continental | — | (23.7 | ) | (16.3 | ) | (40.0 | ) | +41.7 | ||||||||||||
BBVA Banco Provincial | — | (12.8 | ) | +2.0 | (10.8 | ) | +12.0 | |||||||||||||
BBVA Banco Francés | — | +0.1 | (9.4 | ) | (9.3 | ) | +9.8 | |||||||||||||
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Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Financial assets held for trading | 67,502 | 53,156 | 41,842 | |||||||||
Debt securities | 26,556 | 38,392 | 30,426 | |||||||||
Public sector | 20,778 | 27,960 | 20,939 | |||||||||
Credit institutions | 2,825 | 6,020 | 6,352 | |||||||||
Other sectors | 2,953 | 4,412 | 3,135 | |||||||||
Trading derivatives | 40,946 | 14,764 | 11,416 | |||||||||
Other financial assets designated at fair value through profit or loss | 516 | 421 | 56 | |||||||||
Debt securities | 516 | 421 | 56 | |||||||||
Public sector | 38 | 41 | 40 | |||||||||
Credit institutions | 24 | 36 | 10 | |||||||||
Other sectors | 454 | 344 | 6 | |||||||||
Available-for-sale financial assets | 39,961 | 37,252 | 32,068 | |||||||||
Debt securities | 39,961 | 37,252 | 32,068 | |||||||||
Public sector | 19,576 | 17,573 | 17,964 | |||||||||
Credit institutions | 13,377 | 13,419 | 9,199 | |||||||||
Other sectors | 7,008 | 6,260 | 4,905 | |||||||||
Loans and receivables | 375,386 | 344,124 | 285,421 | |||||||||
Loans and advances to credit institutions | 33,679 | 24,392 | 21,204 | |||||||||
Loans and advances to customers | 341,321 | 319,671 | 264,139 | |||||||||
Public Sector | 22,502 | 21,065 | 21,194 | |||||||||
Agriculture | 4,109 | 3,737 | 3,133 | |||||||||
Industry | 46,576 | 39,922 | 24,731 | |||||||||
Real estate and construction | 47,682 | 55,156 | 41,502 | |||||||||
Trade and finance | 51,725 | 36,371 | 38,910 | |||||||||
Loans to individuals | 127,890 | 121,462 | 103,918 | |||||||||
Leases | 9,385 | 9,148 | 7,692 | |||||||||
Other | 31,452 | 32,810 | 23,059 | |||||||||
Debt securities | 386 | 61 | 78 | |||||||||
Public sector | 290 | (1 | ) | — | ||||||||
Credit institutions | 4 | 1 | 1 | |||||||||
Other sectors | 92 | 61 | 77 | |||||||||
Held-to-maturity investments | 5,285 | 5,589 | 5,911 | |||||||||
Public sector | 3,844 | 4,125 | 4,440 | |||||||||
Credit institutions | 800 | 818 | 823 | |||||||||
Other sectors | 641 | 646 | 648 | |||||||||
Hedging derivatives | 3,833 | 1,050 | 1,963 | |||||||||
Subtotal | 492,482 | 441,592 | 367,261 | |||||||||
Valuation adjustments | 942 | 655 | 401 | |||||||||
Total Balance | 493,424 | 442,247 | 367,662 | |||||||||
Financial guarantees | 35,952 | 65,845 | 42,281 | |||||||||
Other contingent exposures | 6,234 | 5,496 | 4,995 | |||||||||
Drawable by third parties | 92,663 | 101,444 | 98,226 | |||||||||
Public sector | 4,221 | 4,419 | 3,122 | |||||||||
Credit institutions | 2,021 | 2,619 | 4,356 | |||||||||
Other sectors | 86,421 | 94,406 | 90,748 | |||||||||
Total off-balances | 134,849 | 172,785 | 145,502 | |||||||||
Total | 628,273 | 615,032 | 513,164 | |||||||||
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• | Financial assets held for trading: Guarantees or credit enhancements, which are taken directly from the issuer or counterparty, may be included in the instruments’ contractual clauses to reduce our ultimate credit exposure. For trading derivatives, credit risk is generally minimized via master netting agreements, whereby derivative financial assets and liabilities with the same counterparty can be settled net. Other types of guarantees may also be put in place, depending on the counterparty’s solvency and the nature of the transaction. | |
• | Other financial assets designated at fair value through profit or loss: Guarantees or credit enhancements, which are taken directly from the issuer or counterparty, may be included in the instruments’ contractual clauses to reduce our ultimate credit exposure. | |
• | Available-for-sale financial assets: Guarantees or credit enhancements, which are taken directly from the issuer or counterparty, may be implicit to the instrument’s structuring to reduce our ultimate credit exposure. | |
• | Loans and receivables: |
• | Loans and advances to credit institutions: Personal guarantees from the counterparties and, on occasion, an additional guarantee from another credit entity with which a credit derivative has been written to reduce our ultimate credit exposure may be required. | |
• | Loans and advances to customers: Personal guarantees extended by the counterparties may be required. The collateral received to secure loans and advances to customers include mortgages, cash guarantees and other collateral such as pledged securities. Other kinds of credit enhancements may be put in place such as guarantees and credit derivatives to reduce our ultimate credit exposure | |
• | Debt securities: Guarantees or credit enhancements, which are taken directly from the issuer or counterparty, may be implicit to the instrument’s structuring. |
• | Held-to-maturity investments: Guarantees or credit enhancements, which are taken directly from the issuer or counterparty, may be implicit to the instrument’s structuring. | |
• | Hedging derivatives: Credit risk is minimized via master netting agreements, whereby derivative financial assets and liabilities with the same counterparty can be settled net. Other types of guarantees may also be put in place, depending on the counterparty’s solvency and the nature of the transaction. | |
• | Financial guarantees, other contingent exposures and drawable by third parties: Personal guarantees from the counterparties and, on occasion, an additional guarantee from another credit entity with which a credit derivative has been written to reduce our ultimate credit exposure may be required. |
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As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Mortgage loans | 125,540 | 123,998 | 107,837 | |||||||||
Operating assets mortgage loans | 3,896 | 4,381 | 4,595 | |||||||||
Home mortgages | 82,613 | 79,377 | 67,777 | |||||||||
Rest | 39,031 | 40,240 | 35,465 | |||||||||
Secured loans, except mortgage loans | 19,982 | 11,559 | 8,900 | |||||||||
Cash guarantees | 250 | 578 | 727 | |||||||||
Pledging of securities | 458 | 766 | 972 | |||||||||
Rest | 19,274 | 10,215 | 7,201 | |||||||||
Total | 145,522 | 135,557 | 116,737 | |||||||||
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Probability of Default (Basic Points) | ||||||||||||
Minimum from | Maximum until | |||||||||||
Rating | Average | >= | < | |||||||||
AAA | 1 | 0 | 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+1 | 12 | 11 | 14 | |||||||||
BBB+2 | 15 | 14 | 17 | |||||||||
BBB1 | 18 | 17 | 20 | |||||||||
BBB2 | 22 | 20 | 24 | |||||||||
BBB-1 | 27 | 24 | 30 | |||||||||
BBB-2 | 34 | 30 | 39 | |||||||||
BB+1 | 44 | 39 | 50 | |||||||||
BB+2 | 58 | 50 | 67 | |||||||||
BB1 | 78 | 67 | 90 | |||||||||
BB2 | 102 | 90 | 116 | |||||||||
BB-1 | 132 | 116 | 150 | |||||||||
BB-2 | 166 | 150 | 194 | |||||||||
B+1 | 204 | 194 | 226 | |||||||||
B+2 | 250 | 226 | 276 | |||||||||
B+3 | 304 | 276 | 335 | |||||||||
B1 | 370 | 335 | 408 | |||||||||
B2 | 450 | 408 | 490 | |||||||||
B3 | 534 | 490 | 581 | |||||||||
B-1 | 633 | 581 | 689 | |||||||||
B-2 | 750 | 689 | 842 | |||||||||
B-3 | 945 | 842 | 1061 | |||||||||
CCC+ | 1,191 | 1,061 | 1,336 | |||||||||
CCC | 1,500 | 1,336 | 1,684 | |||||||||
CCC- | 1,890 | 1,684 | 2,121 | |||||||||
CC+ | 2,381 | 2,121 | 2,673 | |||||||||
CC | 3,000 | 2,673 | 3,367 | |||||||||
CC- | 3,780 | 3,367 | 4,243 |
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Rating | % | |||
AAA/AA | 23.77 | % | ||
A | 26.59 | % | ||
BBB+ | 9.23 | % | ||
BBB | 5.76 | % | ||
BBB- | 9.48 | % | ||
BB+ | 8.25 | % | ||
BB | 6.16 | % | ||
BB- | 5.91 | % | ||
B+ | 3.08 | % | ||
B | 1.44 | % | ||
B- | 0.29 | % | ||
CCC/CC | 0.03 | % | ||
Total | 100.00 | % | ||
• | Striking a balance between the customer’s financing needs, broken down by type (trade/financial, short/long-term, etc.), and the degree to which its business is or is not attractive to us. We believe this approach drives a better operational mix that is still compatible with the needs of our clients. | |
• | Other determining factors relate to national legislation and the ratio between the size of the customer book and 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. | |
• | Correct portfolio management leads to identification of risk concentrations and enables the taking of appropriate action. |
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Less Than | ||||||||||||||||
1 Month | 1 to 2 Months | 2 to 3 Months | Total | |||||||||||||
(In millions of euros) | ||||||||||||||||
Loans and advances to customers | 1,580 | 534 | 447 | 2,561 | ||||||||||||
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
IMPAIRED RISKS ON BALANCE | ||||||||||||
Available-for-sale | 188 | 3 | 3 | |||||||||
Debt securities | 188 | 3 | 3 | |||||||||
Loans and advances | 8,540 | 3,366 | 2,500 | |||||||||
Loans and advances to credit institutions | 95 | 8 | 8 | |||||||||
Loans and advances to customers | 8,437 | 3,358 | 2,492 | |||||||||
Debt securities | 8 | — | — | |||||||||
8,728 | 3,369 | 2,503 | ||||||||||
IMPAIRED RISKS OFF BALANCE | ||||||||||||
Impaired contingent liabilities | 131 | 49 | 40 | |||||||||
TOTAL IMPAIRED RISKS | 8,859 | 3,418 | 2,543 | |||||||||
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Balance at the beginning of the year | 3,418 | 2,543 | 2,389 | |||||||||
Additions | 11,488 | 4,606 | 2,746 | |||||||||
Recoveries | (3,668 | ) | (2,418 | ) | (1,830 | ) | ||||||
Transfers to write-off | (2,198 | ) | (1,497 | ) | (707 | ) | ||||||
Exchange differences and others | (182 | ) | 184 | (55 | ) | |||||||
Balance at the end of the year | 8,858 | 3,418 | 2,543 | |||||||||
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Impaired Assets of Loans and Advances to Customers | ||||||||||||||||||||||||
Amounts Less Than Six | 6 to 12 | 12 to 18 | 18 to 24 | More Than | ||||||||||||||||||||
Months Past-Due | Months | Months | Months | 24 Months | Total | |||||||||||||||||||
(In millions of euros) | ||||||||||||||||||||||||
Spain | 2,405 | 1,904 | 595 | 87 | 975 | 5,966 | ||||||||||||||||||
Rest of Europe | 55 | 10 | 6 | 5 | 16 | 92 | ||||||||||||||||||
Latin America | 1,112 | 88 | 22 | 7 | 320 | 1,549 | ||||||||||||||||||
United States | 221 | 869 | — | — | 30 | 1,120 | ||||||||||||||||||
Rest | — | — | — | — | 1 | 1 | ||||||||||||||||||
Total | 3,793 | 2,871 | 623 | 99 | 1,342 | 8,728 | ||||||||||||||||||
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Public sector | 102 | 177 | 216 | |||||||||
Credit institutions | 165 | 8 | 8 | |||||||||
Collateralized financial assets with other sectors | 3,428 | 809 | 545 | |||||||||
Mortgage | 2,487 | 696 | 459 | |||||||||
Other collateralized financial assets | 941 | 113 | 86 | |||||||||
Non-collateralized financial assets with other sectors | 5,033 | 2,375 | 1,734 | |||||||||
Total | 8,728 | 3,369 | 2,503 | |||||||||
As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Financial income from impaired assets | 1,042 | 880 | 1,107 | |||||||||
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As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Balance at beginning of year | 5,622 | 6,120 | 6,187 | |||||||||
Increase: | ||||||||||||
Assets of remote collectability | 1,700 | 1,895 | 472 | |||||||||
Products overdue not collected | 276 | 217 | 167 | |||||||||
Decrease: | ||||||||||||
Cash recovery | (199 | ) | (237 | ) | (463 | ) | ||||||
Foreclosed assets | (13 | ) | (5 | ) | (5 | ) | ||||||
Other causes | (355 | ) | (2,455 | ) | (129 | ) | ||||||
Net exchange differences | (159 | ) | 87 | (109 | ) | |||||||
Balance at the end of year | 6,872 | 5,622 | 6,120 | |||||||||
As of December 31, | ||||||||
2008 | 2007 | |||||||
(In millions of euros) | ||||||||
Bancomer | 249 | 1,338 | ||||||
BBVA, S.A. | 12 | 968 | ||||||
Total | 261 | 2,306 | ||||||
Gains for sales to third parties | 3 | 26 | ||||||
2008 | 2007 | 2006 | ||||||||||
NPL ratio | 2.12 | 0.89 | 0.83 | |||||||||
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As of December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(In millions of euros) | ||||||||||||
Balance at beginning of year | 7,194 | 6,504 | 5,729 | |||||||||
Increase in impairment losses charged to income | 4,590 | 2,462 | 2,113 | |||||||||
Decrease in impairment losses credited to income | (1,457 | ) | (333 | ) | (470 | ) | ||||||
Acquisition of subsidiaries in the year | 1 | 276 | 91 | |||||||||
Disposal of subsidiaries in the year | (4 | ) | (26 | ) | (22 | ) | ||||||
Transfers to written-off loans | (1,951 | ) | (1,297 | ) | (563 | ) | ||||||
Exchange differences and other | (662 | ) | (392 | ) | (374 | ) | ||||||
Balance at end of year | 7,711 | 7,194 | 6,504 | |||||||||
Of which: | ||||||||||||
For impaired portfolio | 3,480 | 1,999 | 2,083 | |||||||||
For current portfolio non impaired | 4,231 | 5,195 | 4,421 | |||||||||
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Europe | Latin | |||||||||||||||||||||||
Risks on Balance | Spain | Except 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 | 13,061 | 506,333 | ||||||||||||||||||
Europe | Latin | |||||||||||||||||||||||
Risks Off-Balance | Spain | Except Spain | USA | America | Rest | Total | ||||||||||||||||||
Financial guarantees | 16,843 | 8,969 | 3,456 | 4,721 | 1,963 | 35,952 | ||||||||||||||||||
Other 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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ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
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; | |
• | 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 | 2008 | 2007 | ||||||
(In millions of euros) | ||||||||
Audit Fees(1) | 4.3 | 4.3 | ||||||
Audit-Related Fees(2) | 3.0 | 3.6 | ||||||
Tax Fees(3) | 0.1 | 0.2 | ||||||
All Other Fees(4) | 0.3 | 0.3 | ||||||
Total | 7.7 | 8.4 |
(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 €12.2 million and €10.6 million in 2008 and 2007, 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 |
Maximum Number (or | ||||||||||||||||
Total | Total Number of | Approximate Dollar | ||||||||||||||
Number of | Shares (or Units) | Value) of Shares | ||||||||||||||
Ordinary | Average Price | Purchased as Part of | (or Units) that May Yet | |||||||||||||
Shares | Paid per Share | Publicly Announced | Be Purchased Under | |||||||||||||
Period of Fiscal Year | Purchased | (or Unit) | Plans or Programs | the Plans or Programs | ||||||||||||
January 1 to January 31 | 173,910,763 | € | 14.72 | — | — | |||||||||||
February 1 to February 28 | 60,805,115 | € | 13.87 | — | — | |||||||||||
March 1 to March 31 | 43,534,121 | € | 13.42 | — | — | |||||||||||
April 1 to April 30 | 157,316,121 | € | 14.12 | — | — | |||||||||||
May 1 to May 31 | 34,411,789 | € | 14.82 | — | — | |||||||||||
June 1 to June 30 | 65,915,639 | € | 13.24 | — | — | |||||||||||
July 1 to July 31 | 172,958,729 | € | 11.82 | — | — | |||||||||||
August 1 to August 31 | 33,221,470 | € | 11.46 | — | — | |||||||||||
September 1 to September 30 | 59,864,237 | € | 11.33 | — | — | |||||||||||
October 1 to October 31 | 211,522,561 | € | 10.13 | — | — | |||||||||||
November 1 to November 30 | 64,213,475 | € | 8.44 | — | — | |||||||||||
December 1 to December 31 | 41,268,835 | € | 8.58 | — | — | |||||||||||
Total | 1,118,942,855 | — | — |
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*. | ||
4 | .1 | Plan of Merger between Banco Bilbao Vizcaya, S.A. and Argentaria, Caja Postal y Banco Hipotecario, S.A.** | ||
4 | .2 | Master Agreement of Strategic Alliance between Telefónica and BBVA, together with an English translation.*** | ||
4 | .3 | Transaction Agreement by and between Banco Bilbao Vizcaya Argentaria, S.A. and Compass Bancshares, Inc. dated as of February 16, 2007.**** | ||
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 |
* | Incorporated by reference to BBVA’s Registration Statement onForm F-3 (FileNo. 333-144784) filed with the Securities and Exchange Commission July 18, 2008. | |
** | Incorporated by reference to BBVA’s Registration Statement onForm F-4 (FileNo. 333-11090) filed with the Securities and Exchange Commission on November 4, 1999. | |
*** | Incorporated by reference to BBVA’s 1999 Annual Report onForm 20-F. | |
**** | Incorporated by reference to BBVA’s 2006 Annual Report onForm 20-F. |
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By: | /s/ JAVIER MALAGON NAVAS |
Title: | Chief Accounting Officer |
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April 2, 2009
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BILBAO VIZCAYA ARGENTARIA GROUP
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2008, 2007 AND 2006 (Notes 1 to 5)
2008 | 2007(*) | 2006(*) | ||||||||||
Millions of euros | ||||||||||||
ASSETS | ||||||||||||
CASH AND BALANCES WITH CENTRAL BANKS (Note 9) | 14,659 | 22,581 | 12,515 | |||||||||
FINANCIAL ASSETS HELD FOR TRADING (Note 10) | 73,299 | 62,336 | 51,791 | |||||||||
Loans and advances to credit institutions | — | — | — | |||||||||
Loans and advances to customers | — | — | — | |||||||||
Debt securities | 26,556 | 38,392 | 30,426 | |||||||||
Other equity instruments | 5,797 | 9,180 | 9,949 | |||||||||
Trading derivatives | 40,946 | 14,764 | 11,416 | |||||||||
OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS (Note 11) | 1,754 | 1,167 | 977 | |||||||||
Loans and advances to credit institutions | — | — | — | |||||||||
Loans and advances to customers | — | — | — | |||||||||
Debt securities | 516 | 421 | 56 | |||||||||
Other equity instruments | 1,238 | 746 | 921 | |||||||||
AVAILABLE-FOR-SALE FINANCIAL ASSETS (Note 12) | 47,780 | 48,432 | 42,256 | |||||||||
Debt securities | 39,831 | 37,336 | 32,219 | |||||||||
Other equity instruments | 7,949 | 11,096 | 10,037 | |||||||||
LOANS AND RECEIVABLES (Note 13) | 369,494 | 337,765 | 279,658 | |||||||||
Loans and advances to credit institutions | 33,856 | 24,527 | 21,264 | |||||||||
Loans and advances to customers | 335,260 | 313,178 | 258,317 | |||||||||
Debt securities | 378 | 60 | 77 | |||||||||
HELD-TO-MATURITY INVESTMENTS (Note 14) | 5,282 | 5,584 | 5,906 | |||||||||
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | — | — | — | |||||||||
HEDGING DERIVATIVES (Note 15) | 3,833 | 1,050 | 1,963 | |||||||||
NON-CURRENT ASSETS HELD FOR SALE (Note 16) | 444 | 240 | 186 | |||||||||
INVESTMENTS IN ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD (Note 17) | 1,467 | 1,542 | 889 | |||||||||
Associates | 894 | 846 | 206 | |||||||||
Jointly controlled entities | 573 | 696 | 683 | |||||||||
INSURANCE CONTRACTS LINKED TO PENSIONS | — | — | — | |||||||||
REINSURANCE ASSETS (Note 18) | 29 | 43 | 32 | |||||||||
TANGIBLE ASSETS (Note 19) | 6,908 | 5,238 | 4,527 | |||||||||
Property, plants and equipment | 5,174 | 5,156 | 4,466 | |||||||||
Own use | 4,442 | 4,437 | 3,816 | |||||||||
Other assets leased out under an operating lease | 732 | 719 | 650 | |||||||||
Investment properties | 1,734 | 82 | 61 | |||||||||
INTANGIBLE ASSETS (Note 20) | 8,439 | 8,244 | 3,269 | |||||||||
Goodwill | 7,659 | 7,436 | 2,973 | |||||||||
Other intangible assets | 780 | 808 | 296 | |||||||||
TAX ASSETS (Note 32) | 6,484 | 5,207 | 5,340 | |||||||||
Current | 1,266 | 682 | 449 | |||||||||
Deferred | 5,218 | 4,525 | 4,891 | |||||||||
OTHER ASSETS (Note 21) | 2,778 | 2,297 | 2,354 | |||||||||
Inventories | 1,066 | 457 | 470 | |||||||||
Other | 1,712 | 1,840 | 1,884 | |||||||||
TOTAL ASSETS | 542,650 | 501,726 | 411,663 |
(*) | Balance sheet and balance sheet derived information as of December 31, 2007 and 2006 have been restated as mentioned in Note 1.3 to consolidated financial statements. |
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AS OF DECEMBER 31, 2008, 2007 AND 2006 (Notes 1 to 5)
2008 | 2007(*) | 2006(*) | ||||||||||
Millions of euros | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||
FINANCIAL LIABILITIES HELD FOR TRADING (Note 10) | 43,009 | 19,273 | 14,923 | |||||||||
Deposits from central banks | — | — | — | |||||||||
Deposits from credit institutions | — | — | — | |||||||||
Deposits from customers | — | — | — | |||||||||
Debt certificates | — | — | — | |||||||||
Trading derivatives | 40,309 | 17,540 | 13,218 | |||||||||
Short positions | 2,700 | 1,733 | 1,705 | |||||||||
Other financial liabilities | — | — | — | |||||||||
OTHER FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS (Note 11) | 1,033 | 449 | 582 | |||||||||
Deposits from central banks | — | — | — | |||||||||
Deposits from credit institutions | — | — | — | |||||||||
Deposits from customers | — | — | — | |||||||||
Debt certificates | — | — | — | |||||||||
Subordinated liabilities | — | — | — | |||||||||
Other financial liabilities | 1,033 | 449 | 582 | |||||||||
FINANCIAL LIABILITIES AT AMORTISED COST (Note 22) | 450,605 | 431,856 | 351,405 | |||||||||
Deposits from central banks | 16,844 | 27,326 | 15,238 | |||||||||
Deposits from credit institutions | 49,961 | 60,772 | 42,567 | |||||||||
Deposits from customers | 255,236 | 219,610 | 186,749 | |||||||||
Debt certificates | 104,157 | 102,247 | 86,482 | |||||||||
Subordinated liabilities | 16,987 | 15,662 | 13,597 | |||||||||
Other financial liabilities | 7,420 | 6,239 | 6,772 | |||||||||
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | — | — | — | |||||||||
HEDGING DERIVATIVES (Note 15) | 1,226 | 1,807 | 2,280 | |||||||||
LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE (Note 16) | — | — | — | |||||||||
LIABILITIES UNDER INSURANCE CONTRACTS (Note 23) | 6,571 | 6,867 | 6,908 | |||||||||
PROVISIONS (Note 24) | 8,678 | 8,342 | 8,649 | |||||||||
Provisions for pensions and similar obligations | 6,359 | 5,967 | 6,358 | |||||||||
Provisions for taxes | 263 | 225 | 232 | |||||||||
Provisions for contingent exposures and commitments | 421 | 546 | 502 | |||||||||
Other provisions | 1,635 | 1,604 | 1,557 | |||||||||
TAX LIABILITIES (Note 32) | 2,266 | 2,817 | 2,369 | |||||||||
Current | 984 | 582 | 622 | |||||||||
Deferred | 1,282 | 2,235 | 1,747 | |||||||||
OTHER LIABILITIES (Note 21) | 2,557 | 2,372 | 2,229 | |||||||||
TOTAL LIABILITIES | 515,945 | 473,783 | 389,345 | |||||||||
(*) Balance sheet and balance sheet derived information as of December 31, 2007 and 2006 have been restated as mentioned in Note 1.3 to consolidated financial statements. |
F-3
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2008 | 2007(*) | 2006(*) | ||||||||||
Millions of euros | ||||||||||||
STOCKHOLDERS’ FUNDS | 26,586 | 24,811 | 18,209 | |||||||||
Capital (Note 27) | 1,837 | 1,837 | 1,740 | |||||||||
Issued | 1,837 | 1,837 | 1,740 | |||||||||
Unpaid and uncalled(-) | — | — | — | |||||||||
Share premium (Note 28) | 12,770 | 12,770 | 9,579 | |||||||||
Reserves (Note 29) | 9,410 | 6,060 | 3,629 | |||||||||
Accumulated reserves (losses) | 8,801 | 5,609 | 3,268 | |||||||||
Reserves (losses) of entities accounted for using the equity method | 609 | 451 | 361 | |||||||||
Other equity instruments | 89 | 68 | 35 | |||||||||
Equity component of compound financial instruments | — | — | — | |||||||||
Other | 89 | 68 | 35 | |||||||||
Less: Treasury shares (Note 30) | (720 | ) | (389 | ) | (147 | ) | ||||||
Income attributed to the Group | 5,020 | 6,126 | 4,736 | |||||||||
Less: Dividends and remuneration | (1,820 | ) | (1,661 | ) | (1,363 | ) | ||||||
VALUATION ADJUSTMENTS | (930 | ) | 2,252 | 3,341 | ||||||||
Available-for-sale financial assets (Note 12) | 931 | 3,546 | 3,323 | |||||||||
Cash flow heges | 207 | (50 | ) | 17 | ||||||||
Hedges of net investment in a foreign operations | 247 | 297 | (5 | ) | ||||||||
Exchange differences | (2,231 | ) | (1,588 | ) | (27 | ) | ||||||
Non-current assets helf for sale | — | — | — | |||||||||
Entities accounted for using the equity method | (84 | ) | 47 | 33 | ||||||||
Other valuation adjustments | — | — | — | |||||||||
MINORITY INTERESTS (Note 26) | 1,049 | 880 | 768 | |||||||||
Valuation adjustments | (175 | ) | (118 | ) | 8 | |||||||
Other | 1,224 | 998 | 760 | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 26,705 | 27,943 | 22,318 | |||||||||
TOTAL LIABILITIES AND EQUITY | 542,650 | 501,726 | 411,663 |
Millions of euros | ||||||||||||
2008 | 2007(*) | 2006(*) | ||||||||||
CONTINGENT EXPOSURES (Note 33) | 35,952 | 36,859 | 29,986 | |||||||||
CONTINGENT COMMITMENTS (Note 33) | 98,897 | 106,940 | 103,221 |
(*) | Balance sheet and balance sheet derived information as of December 31, 2007 and 2006 have been restated as mentioned in Note 1.3 to consolidated financial statements. |
F-4
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2008 | 2007(*) | 2006(*) | ||||||||||
Millions of euros | ||||||||||||
INTEREST AND SIMILAR INCOME (Note 38) | 30,404 | 26,176 | 20,042 | |||||||||
INTEREST EXPENSE AND SIMILAR CHARGES (Note 38) | (18,718 | ) | (16,548 | ) | (11,904 | ) | ||||||
NET INTEREST INCOME | 11,686 | 9,628 | 8,138 | |||||||||
DIVIDEND INCOME (Note 39) | 447 | 348 | 380 | |||||||||
SHARE OF PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD (Note 40) | 293 | 241 | 308 | |||||||||
FEE AND COMMISSION INCOME (Note 41) | 5,539 | 5,603 | 5,133 | |||||||||
FEE AND COMMISSION EXPENSES (Note 42) | (1,012 | ) | (1,043 | ) | (943 | ) | ||||||
NET GAINS (LOSSES) ON FINANCIAL ASSETS AND LIABILITIES (Note 43) | 1,328 | 1,545 | 1,261 | |||||||||
Held for trading | 265 | 709 | 829 | |||||||||
Other financial instruments at fair value through profit or loss | (17 | ) | 43 | 62 | ||||||||
Other financial instruments not at fair value through profit or loss | 1,080 | 793 | 370 | |||||||||
Other | — | — | — | |||||||||
NET EXCHANGE DIFFERENCES | 231 | 411 | 376 | |||||||||
OTHER OPERATING INCOME (Note 44) | 3,559 | 3,589 | 3,413 | |||||||||
Income on insurance and reinsurance contracts | 2,512 | 2,605 | 2,736 | |||||||||
Financial income from non-financial services | 485 | 655 | 460 | |||||||||
Rest of other operating income | 562 | 329 | 217 | |||||||||
OTHER OPERATING EXPENSES (Note 44) | (3,093 | ) | (3,051 | ) | (2,923 | ) | ||||||
Expenses on insurance and reinsurance contracts | (1,896 | ) | (2,052 | ) | (2,209 | ) | ||||||
Changes in inventories | (403 | ) | (467 | ) | (329 | ) | ||||||
Rest of other operating expenses | (794 | ) | (532 | ) | (385 | ) | ||||||
GROSS INCOME | 18,978 | 17,271 | 15,143 | |||||||||
ADMINISTRATION COSTS (Note 45) | (7,756 | ) | (7,253 | ) | (6,330 | ) | ||||||
Personnel expenses | (4,716 | ) | (4,335 | ) | (3,989 | ) | ||||||
General and administrative expenses | (3,040 | ) | (2,918 | ) | (2,342 | ) | ||||||
DEPRECIATION AND AMORTIZATION | (699 | ) | (577 | ) | (472 | ) | ||||||
PROVISIONS (NET) (Note 46) | (1,431 | ) | (235 | ) | (1,338 | ) | ||||||
IMPAIRMENT ON FINANCIAL ASSETS (NET) (Note 47) | (2,941 | ) | (1,903 | ) | (1,457 | ) | ||||||
Loans and receivables (Note 13) | (2,797 | ) | (1,902 | ) | (1,477 | ) | ||||||
Other financial instruments not at fair value through profit or loss | (144 | ) | (1 | ) | 20 | |||||||
NET OPERATING INCOME | 6,151 | 7,303 | 5,545 | |||||||||
IMPAIRMENT ON OTHER ASSETS (NET) (Note 48) | (45 | ) | (13 | ) | (12 | ) | ||||||
Goodwill and other intangible assets (Note 20) | (1 | ) | (1 | ) | (13 | ) | ||||||
Other assets | (44 | ) | (12 | ) | 1 | |||||||
GAINS (LOSSES) IN WRITTEN OFF ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE (Note 49) | 72 | 13 | 956 | |||||||||
NEGATIVE GOODWILL | — | — | — | |||||||||
(*) Income statement and income statement derived information for the years 2007 and 2006 have been restated as mentioned in Note 1.3 to consolidated financial statements. |
F-5
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2008 | 2007(*) | 2006(*) | ||||||||||
Millions of euros | ||||||||||||
GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS (Note 50) | 748 | 1,191 | 541 | |||||||||
INCOME BEFORE TAX | 6,926 | 8,494 | 7,030 | |||||||||
INCOME TAX (Note 32) | (1,541 | ) | (2,079 | ) | (2,059 | ) | ||||||
INCOME FROM ORDINARY ACTIVITIES | 5,385 | 6,415 | 4,971 | |||||||||
INCOME FROM DISCONTINUED OPERATIONS (NET) | — | — | — | |||||||||
NET INCOME | 5,385 | 6,415 | 4,971 | |||||||||
Net Income attributed to parent company | 5,020 | 6,126 | 4,736 | |||||||||
Profit or loss attributable to minority interest (Note 26) | 365 | 289 | 235 |
2008 | 2007(*) | 2006(*) | ||||||||||
Units of euros | ||||||||||||
EARNINGS PER SHARE FOR CONTINUING OPERATIONS (Note 5) | ||||||||||||
Basic earnings per share | 1.35 | 1.70 | 1.39 | |||||||||
Diluted earnings per share | 1.35 | 1.70 | 1.39 | |||||||||
(*) | Income statement and income statement derived information for the years 2007 and 2006 have been restated as mentioned in Note 1.3 to consolidated financial statements. |
F-6
Table of Contents
CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSE/
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2008,
2007 AND 2006 (Notes 1 to 5)
2008 | 2007(*) | 2006(*) | ||||||||||
Millions of euros | ||||||||||||
NET INCOME RECOGNISED DIRECTLY IN EQUITY | 5,385 | 6,415 | 4,971 | |||||||||
OTHER RECOGNIZED INCOME (EXPENSES) | (3,237 | ) | (1,092 | ) | 46 | |||||||
Available-for-sale financial assets | (3,787 | ) | 320 | 143 | ||||||||
Revaluation gains/losses | (2,065 | ) | 1,857 | 1,264 | ||||||||
Amounts removed to income statement | (1,722 | ) | (1,537 | ) | (1,121 | ) | ||||||
Reclassifications | — | — | — | |||||||||
Cash flow hedges | 361 | (94 | ) | 183 | ||||||||
Revaluation gains/losses | 373 | (81 | ) | 183 | ||||||||
Amounts removed to income statement | (12 | ) | (13 | ) | — | |||||||
Amounts removed to the initial carrying amount of the hedged items | — | — | — | |||||||||
Reclassifications | — | — | — | |||||||||
Hedges of net investment in foreign operations | (50 | ) | 507 | 676 | ||||||||
Revaluation gains/losses | (50 | ) | 507 | 676 | ||||||||
Amounts removed to income statement | — | — | — | |||||||||
Reclassifications | — | — | — | |||||||||
Exchange differences | (660 | ) | (2,311 | ) | (1,328 | ) | ||||||
Translation gains/losses | (678 | ) | (2,311 | ) | (1,328 | ) | ||||||
Amounts removed to income statement | 17 | — | — | |||||||||
Reclassifications | — | — | — | |||||||||
Non-current assets held for sale | — | — | — | |||||||||
Revaluation gains | — | — | — | |||||||||
Amounts removed to income statement | — | — | — | |||||||||
Reclassifications | — | — | — | |||||||||
Actuarial gains and losses in post-employment plans | — | — | — | |||||||||
Entities accounted for using the equity method | (144 | ) | 18 | 29 | ||||||||
Valuation gains/losses | (144 | ) | 18 | 29 | ||||||||
Amounts removed to income statement | — | — | — | |||||||||
Reclassifications | — | — | — | |||||||||
Rest of recognized income and expenses | — | — | — | |||||||||
Income tax | 1,044 | 468 | 343 | |||||||||
TOTAL RECOGNIZED INCOME/EXPENSES | 2,148 | 5,323 | 5,017 | |||||||||
Attributed to the parent company | 1,838 | 5,038 | 4,782 | |||||||||
Attributed to minority interest | 310 | 285 | 235 |
(*) | Changes in equity and stockholders’ equity derived information for the years 2007 and 2006 have been restated as mentioned in Note 1.3 to consolidated financial statements. |
F-7
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CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSE/
CONSOLIDATED CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2008,
2007 AND 2006 (Notes 1 to 5)
Total equity attributed to the parent company | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||
From | Profit For | Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Entities | Less: | The Year | Dividends | |||||||||||||||||||||||||||||||||||||||||||||||||
Share | Reserves | Accounted For | Other | Treasury | Attributed | And | Total | Minority | Total | |||||||||||||||||||||||||||||||||||||||||||
Capital | Share | (Accumulated | Equity | Equity | Shares | to Parent | Remune- | Stockholders | Valuation | Interest | Stockholders’ | |||||||||||||||||||||||||||||||||||||||||
(Note 27) | Premium | Losses) | Method) | Instruments | (Note 30) | Company | Rations | Funds | Adjustments | Total | (Note 26) | Equity(*) | ||||||||||||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at 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 | |||||||||||||||||||||||||||||||||||||||
Effects 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 | (3,244 | ) | — | (3,244 | ) | (142 | ) | (3,388 | ) | ||||||||||||||||||||||||||||||||||
Increased of capital | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Capital reduction | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | — | 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 shares and other equity instruments (net) | — | — | (172 | ) | — | — | 331 | — | — | (503 | ) | — | (503 | ) | — | (503 | ) | |||||||||||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 3,431 | 33 | — | — | (5,125 | ) | (1,661 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Increase/Reduction in business combinations | — | — | 9 | — | — | — | — | — | 9 | — | 9 | — | 9 | |||||||||||||||||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Rest of increase/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 | ||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2007 | 1,740 | 9,579 | 3,268 | 361 | 35 | 147 | 4,736 | 1,363 | 18,209 | 3,341 | 21,550 | 768 | 22,318 | |||||||||||||||||||||||||||||||||||||||
Effects of changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Effect of correction of errors | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Adjusted initial balance | 1,740 | 9,579 | 3,268 | 361 | 35 | 147 | 4,736 | 1,363 | 18,209 | 3,341 | 21,550 | 768 | 22,318 | |||||||||||||||||||||||||||||||||||||||
Total income/expense recognized | — | — | — | — | — | — | 6,126 | — | 6,126 | (1,088 | ) | 5,038 | 285 | 5,323 | ||||||||||||||||||||||||||||||||||||||
Other changes in equity | 97 | 3,191 | 2,341 | 90 | 33 | 242 | (4,736 | ) | 298 | 476 | (1 | ) | 475 | (173 | ) | 302 | ||||||||||||||||||||||||||||||||||||
Increased of capital | 97 | 3,191 | (24 | ) | — | — | — | — | — | 3,264 | — | 3,264 | — | 3,264 | ||||||||||||||||||||||||||||||||||||||
Capital reduction | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividend distribution | — | — | — | — | — | — | 848 | (1,661 | ) | 2,509 | — | 2,509 | 108 | 2,617 | ||||||||||||||||||||||||||||||||||||||
Transactions including treasury shares and other equity instruments (net) | — | — | (26 | ) | — | — | 242 | — | — | (268 | ) | — | (268 | ) | — | (268 | ) | |||||||||||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 2,435 | 90 | — | — | (3,888 | ) | (1,363 | ) | — | — | — | — | — |
(*) | Changes in equity and stockholders’ equity derived information for the years 2007 and 2006 have been restated as mentioned in Note 1.3 to consolidated financial statements. |
F-8
Table of Contents
CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSE/
CONSOLIDATED CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2008,
2007 AND 2006 (Notes 1 to 5)
Total equity attributed to the parent company | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ funds | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserves | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||
From | Profit For | Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Entities | Less: | The Year | Dividends | |||||||||||||||||||||||||||||||||||||||||||||||||
Share | Reserves | Accounted For | Other | Treasury | Attributed | And | Total | Minority | Total | |||||||||||||||||||||||||||||||||||||||||||
Capital | Share | (Accumulated | Equity | Equity | Shares | to Parent | Remune- | Stockholders | Valuation | Interest | Stockholders’ | |||||||||||||||||||||||||||||||||||||||||
(Note 27) | Premium | Losses) | Method) | Instruments | (Note 30) | Company | Rations | Funds | Adjustments | Total | (Note 26) | Equity(*) | ||||||||||||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase/Reduction in business combinations | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | 33 | — | — | — | 33 | — | 33 | — | 33 | |||||||||||||||||||||||||||||||||||||||
Rest of increase/reductions in total equity | — | — | (44 | ) | — | — | — | — | — | (44 | ) | (1 | ) | (45 | ) | (65 | ) | (110 | ) | |||||||||||||||||||||||||||||||||
Balances as of December 31, 2007 | 1,837 | 12,770 | 5,609 | 451 | 68 | 389 | 6,126 | 1,661 | 24,811 | 2,252 | 27,063 | 880 | 27,943 | |||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2006 | 1,662 | 6,658 | 2,343 | (171 | ) | — | 96 | 3,806 | 1,166 | 13,036 | 3,295 | 16,331 | 971 | 17,302 | ||||||||||||||||||||||||||||||||||||||
Effects of changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Effect of correction of errors | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Adjusted initial balance | 1,662 | 6,658 | 2,343 | (171 | ) | — | 96 | 3,806 | 1,166 | 13,036 | 3,295 | 16,331 | 971 | 17,302 | ||||||||||||||||||||||||||||||||||||||
Total income/expense recognized | — | — | — | — | — | — | 4,736 | — | 4,736 | 46 | 4,782 | 235 | 5,017 | |||||||||||||||||||||||||||||||||||||||
Other changes in equity | 78 | 2,921 | 925 | 532 | 35 | 51 | (3,806 | ) | 197 | 437 | — | 437 | (438 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||
Increased of capital | 78 | 2,921 | (40 | ) | — | — | — | — | — | 2,959 | — | 2,959 | — | 2,959 | ||||||||||||||||||||||||||||||||||||||
Capital reduction | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividend distribution | — | — | — | — | — | — | 629 | (1,363 | ) | 1,992 | — | 1,992 | 104 | 2,096 | ||||||||||||||||||||||||||||||||||||||
Transactions including treasury shares and other equity instruments (net) | — | — | 17 | — | — | 51 | — | — | (34 | ) | — | (34 | ) | — | (34 | ) | ||||||||||||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 1,479 | 532 | — | — | (3,177 | ) | (1,166 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Increase/Reduction in business combinations | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Payments with equity instruments | — | — | — | ��� | 35 | — | — | — | 35 | — | 35 | — | 35 | |||||||||||||||||||||||||||||||||||||||
Rest of increase/reductions in total equity | — | — | (531 | ) | — | — | — | — | — | (531 | ) | — | (531 | ) | (334 | ) | (865 | ) | ||||||||||||||||||||||||||||||||||
Balances as of December 31, 2006 | 1,740 | 9,579 | 3,268 | 361 | 35 | 147 | 4,736 | 1,363 | 18,209 | 3,341 | 21,550 | 768 | 22,318 | |||||||||||||||||||||||||||||||||||||||
(*) | Changes in equity and stockholders’ equity derived information for the years 2007 and 2006 have been restated as mentioned in Note 1.3 to consolidated financial statements. |
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2008 | 2007(*) | 2006(*) | ||||||||||
Millions of euros | ||||||||||||
CASH FLOW FROM OPERATING ACTIVITIES(1) | (1,992 | ) | 17,290 | 2,222 | ||||||||
Consolidated profit for the year | 5,385 | 6,415 | 4,971 | |||||||||
Adjustments to obtain the cash flow from operating activities: | (1,112 | ) | 828 | 1,522 | ||||||||
Depreciation and amortization | 699 | 577 | 472 | |||||||||
Other adjustments | (1,811 | ) | 251 | 1,050 | ||||||||
Net increase/decrease in operating assets | 45,714 | 74,226 | 19,468 | |||||||||
Financial assets held for trading | 10,964 | 10,545 | 7,779 | |||||||||
Other financial assets designated at fair value through profit or loss | 588 | 190 | (444 | ) | ||||||||
Available-for-sale financial assets | (800 | ) | 5,827 | (18,357 | ) | |||||||
Loans and receivables | 30,866 | 58,352 | 33,334 | |||||||||
Other operating assets | 4,096 | (688 | ) | (2,844 | ) | |||||||
Net increase/decrease in operating liabilities | 37,908 | 82,192 | 13,138 | |||||||||
Financial liabilities held for trading | 23,736 | 4,350 | (1,347 | ) | ||||||||
Other financial liabilities designated at fair value through profit or loss | — | (134 | ) | (158 | ) | |||||||
Financial liabilities measured at amortised cost | 20,058 | 78,385 | 17,672 | |||||||||
Other operating liabilities | (5,886 | ) | (408 | ) | (3,029 | ) | ||||||
Collection/Payments for income tax | 1,541 | 2,080 | 2,059 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES(2) | (2,865 | ) | (7,987 | ) | (2,128 | ) | ||||||
Investment | 4,617 | 10,948 | 5,401 | |||||||||
Tangible assets | 1,199 | 1,836 | 1,214 | |||||||||
Intangible assets | 402 | 134 | 253 | |||||||||
Investments | 672 | 690 | 80 | |||||||||
Subsidiaries and other business units | 1,559 | 7,082 | 1,629 | |||||||||
Non-current assets held for sale and associated liabilities | 515 | 487 | 279 | |||||||||
Held-to-maturity investments | — | — | 1,946 | |||||||||
Other payments related to investing activities | 270 | 719 | — | |||||||||
Divestments | 1,752 | 2,961 | 3,273 | |||||||||
Tangible assets | 168 | 328 | 501 | |||||||||
Intangible assets | 31 | 146 | 120 | |||||||||
Investments | 9 | 227 | 825 | |||||||||
Subsidiaries and other business units | 13 | 11 | 934 | |||||||||
Non-current assets held for sale and associated liabilities | 374 | 744 | 370 | |||||||||
Held-to-maturity investments | 283 | 321 | — | |||||||||
Other collections related to investing activities | 874 | 1,184 | 523 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES(3) | (2,271 | ) | 1,996 | 871 | ||||||||
Investment | 17,807 | 20,470 | 9,554 | |||||||||
Dividends | 2,813 | 2,424 | 1,914 | |||||||||
Subordinated liabilities | 735 | 1,723 | 1,760 | |||||||||
Amortization of own equity instruments | — | — | — | |||||||||
Acquisition of own equity instruments | 14,095 | 16,182 | 5,677 | |||||||||
Other items relating to financing activities | 164 | 141 | 203 | |||||||||
Divestments | 15,536 | 22,466 | 10,425 | |||||||||
Subordinated liabilities | 1,535 | 3,096 | 1,846 | |||||||||
Issuance of own equity instruments | — | 3,263 | 2,939 | |||||||||
Disposal of own equity instruments | 13,745 | 16,041 | 5,640 | |||||||||
Other items relating to financing activities | 256 | 66 | — | |||||||||
EFFECT OF EXCHANGE RATE CHANGES(4) | (791 | ) | (1,233 | ) | (785 | ) | ||||||
NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS (1+2+3+4) | (7,919 | ) | 10,066 | 180 | ||||||||
CASH OR CASH EQUIVALENTS AT BEGINNING OF YEAR | 22,561 | 12,496 | 12,317 | |||||||||
CASH OR CASH EQUIVALENTS AT END OF YEAR | 14,642 | 22,561 | 12,496 | |||||||||
Cash | 3,915 | 2,938 | 2,756 | |||||||||
Balance of cash equivalent in central banks | 10,727 | 19,623 | 9,713 | |||||||||
Other financial assets | — | — | — | |||||||||
Less:bank overdraft refundable on demand | — | — | — | |||||||||
TOTAL CASH OR CASH EQUIVALENTS AT END OF YEAR | 14,642 | 22,561 | 12,496 | |||||||||
Of which: | ||||||||||||
held by consolidated entities but no available for the Group | — | — | — |
(*) | Cash flows and cash flows derived information for the years 2007 and 2006 have been restated as mentioned in Note 1.3 to consolidated financial statements. |
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THE BANCO BILBAO VIZCAYA ARGENTARIA GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. | INTRODUCTION, BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OTHER INFORMATION |
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1.7. | REPORT ON THE ACTIVITY OF THE CUSTOMER CARE DEPARTMENT AND THE CUSTOMER OMBUDSMAN |
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2. | BASIS OF CONSOLIDATION, ACCOUNTING POLICIES AND MEASUREMENT BASES APPLIED AND IFRS RECENT PRONOUNCEMENTS |
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• | Jointly controlled financial entities. Since their corporate purpose is that of a financial entity, management considers that the best way of reflecting their activities within the Group’s consolidated financial statements is using the proportionate method of consolidation. |
Millions of Euros | ||||
Group Asset | 331 | |||
Group Liabilities | 217 | |||
Group Equity | 27 | |||
Group Consolidated Income | 11 |
• | Jointly controlled non-financial entities. Management believes that the effect of breaking out the balance sheet and income statement headings of 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 recognising these investments. |
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a) | Measurement of financial instruments and recognition of changes arising from the measurement |
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• | In the fair value hedges, the changes in the fair value of the derivative and the hedged item attributable to the hedged risk are recognized in the heading “Net gains (losses) on financial assets and liabilities” in the consolidated income statement. | |
• | In the cash flow hedges and net investments in a foreign operation hedges, the differences produced in the effective portions of hedging items are recognized temporarily under the heading “Valuation adjustments — Cash flow hedges” and “Valuation adjustments — Hedges of net investments in foreign operations” respectively. These valuation changes are recognized in the heading “Net gains (losses) on financial assets and liabilities” in the consolidated income statement in the same period or periods during which the hedged instrument affects profit or loss, when forecast transaction occurs or at the maturity date of the item hedged. |
• | Equity instruments whose fair value cannot be determined in a sufficiently objective manner and financial derivatives that have those instruments as their underlying and are settled by delivery of those instruments are measured at acquisition cost adjusted, where appropriate, by any related impairment loss. |
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• | Valuation adjustments arising on 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” of the consolidated balance sheet. |
b) | Impairment 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. |
• | 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). |
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• | The various types of risk to which each instrument is subject. | |
• | The circumstances in which collections will foreseeably be made. |
• | Assets classified as impaired of customers in which the amount of their operations is less than €1 million. | |
• | Asset portfolio not impaired currently but which presents an inherent loss. |
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Age of the Past-Due Amount | Allowance Percentage | |
Up to 6 months | between 4,5% and 5,3% | |
Over 6 months and up to 12 months | between 27,4% and 27,8% | |
Over 12 months and up to 18 months | between 60,5% and 65,1% | |
Over 18 months and up to 24 months | between 93,3% and 95,8% | |
Over 24 months | 100% |
Age of the Past-Due Amount | Allowance Percentage | |||
Less than 3 years | 2 | % | ||
Over 3 years and up to 4 years | 25 | % | ||
Over 4 years and up to 5 years | 50 | % | ||
Over 5 years and up to 6 years | 75 | % | ||
Over 6 years | 100 | % |
Age of the Past-Due Amount | Allowance Percentage | |
Up to 6 months | between 3,8% and 4,5% | |
Over 6 months and up to 12 months | between 23,3% and 23,6% | |
Over 12 months and up to 18 months | between 47,2% and 55,3% | |
Over 18 months and up to 24 months | between 79,3% and 81,4% | |
Over 24 months | 100% |
Risk | Allowance Percentage | |||||||
Negligible risk | 0 | % | 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 recognising 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 consolidated balance sheet. | |
• | 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 unrealised gains at the measurement date. |
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• | Those relating to financial assets and liabilities measured at fair value through profit or loss. They are recognized when they are collected. | |
• | Those arising from transactions or services that are provided over a period of time. They are recognized over the life of these transactions or services. | |
• | Those relating to a single act. They are recognized when the single act is carried out. |
2.2.3. | POST-EMPLOYMENT BENEFITS AND OTHER LONG TERM COMMITMENTS TO EMPLOYEES |
• | They are unbiased, in that they are neither imprudent 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. |
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• | Assets and liabilities: at the average spot exchange rates as of December 31, 2008, 2007 and 2006. | |
• | Income and expenses and cash flows: at the average exchange rates of the year. | |
• | Equity items: at the historical exchange rates. |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Assets — | 181,108 | 168,983 | 126,190 | |||||||||
Cash and balances with Central Banks | 11,579 | 10,097 | 8,858 | |||||||||
Financial held for trading | 20,324 | 28,561 | 22,398 | |||||||||
Available-for-sale financial assets | 20,780 | 21,159 | 14,801 | |||||||||
Loans and receivables | 120,168 | 102,987 | 71,728 | |||||||||
Investments in entities accounted for using the equity method | 589 | 523 | 66 | |||||||||
Tangible assets | 2,016 | 2,026 | 1,661 | |||||||||
Other | 5,652 | 3,630 | 6,678 | |||||||||
Liabilities — | 214,929 | 189,683 | 135,829 | |||||||||
Financial held for trading | 6,168 | 1,893 | 1,879 | |||||||||
Financial liabilities at amortised cost | 201,295 | 181,611 | 128,154 | |||||||||
Other | 7,466 | 6,179 | 5,796 |
2008 | USD | Mexican Pesos | Other Foreign | Total | ||||||||||||
Millions of euros | ||||||||||||||||
Assets — | 86,074 | 52,819 | 42,215 | 181,108 | ||||||||||||
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 | 2,093 | 1,843 | 1,716 | 5,652 | ||||||||||||
Liabilities — | 119,107 | 50,103 | 45,719 | 214,929 | ||||||||||||
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 | 1,005 | 3,896 | 2,565 | 7,466 |
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2007 | USD | Mexican Pesos | Other foreign | Total | ||||||||||||
Millions of euros | ||||||||||||||||
Assets — | 73,296 | 58,449 | 37,238 | 168,983 | ||||||||||||
Cash and balances with Central Banks | 1,785 | 5,459 | 2,853 | 10,097 | ||||||||||||
Financial assets held for trading | 5,963 | 20,203 | 2,395 | 28,561 | ||||||||||||
Available-for-sale financial assets | 10,477 | 5,227 | 5,455 | 21,159 | ||||||||||||
Loans and receivables | 52,311 | 26,436 | 24,240 | 102,987 | ||||||||||||
Investments in entities accounted for using the equity method | 5 | 72 | 446 | 523 | ||||||||||||
Tangible assets | 737 | 823 | 466 | 2,026 | ||||||||||||
Other | 2,018 | 229 | 1,383 | 3,630 | ||||||||||||
Liabilities — | 95,939 | 53,021 | 40,723 | 189,683 | ||||||||||||
Financial liabilities held for trading | 1,441 | 18 | 434 | 1,893 | ||||||||||||
Financial liabilities at amortised cost | 93,835 | 49,647 | 38,129 | 181,611 | ||||||||||||
Other | 663 | 3,356 | 2,160 | 6,179 |
2.2.5. | ENTITIES AND BRANCHES LOCATED IN COUNTRIES WITH HYPERINFLATIONARY ECONOMIES |
2.2.6. | NON-CURRENT ASSETS HELD FOR SALE AND LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE |
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2.2.7. | SALES AND INCOME FROM THE PROVISION OF NON-FINANCIAL SERVICES |
• | Mathematical provisions, which include: |
• | Life insurance provisions: these represent the value of the life insurance obligations of the insurance companies at period-end, net of the obligations of the policyholder. | |
• | 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 in the year that has to be allocated to the period from the reporting date to the end of the policy period. | |
• | Provision for claims: this reflects the total amount of the obligations outstanding arising from claims incurred prior to the reporting date. The 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. |
• | Provisions for unexpired risks and other provisions, which include: |
• | Non-life insurance provisions — 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 period-end. | |
• | Technical provisions for reinsurance ceded: calculated by applying the criteria indicated above for direct insurance, taking account of the cession conditions established in the reinsurance contracts in force. | |
• | Other technical provisions: the insurance companies have recognized provisions to cover the probable mismatches in the market reinvestment interest rates with respect to those used in the measurement of the technical provisions. |
• | 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 |
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the case may be, based on the behaviour of the risk insured, to the extent that such amounts have not been individually assigned to each of them. |
Annual Percentage | ||||
Buildings for own use | 1.33% a 4% | |||
Furniture | 8% to 10% | |||
Fixtures | 6% to 12% | |||
Office supplies and computerisation | 8% to 25% |
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2.2.11 | INTANGIBLE ASSETS |
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2.2.17. | TRANSFERS OF FINANCIAL ASSETS AND DERECOGNITION OF FINANCIAL ASSETS AND LIABILITIES |
• | The transferred financial asset is not derecognized and continues to be measured using the same criteria as those used before the transfer in the consolidated balance sheet. | |
• | A financial liability is recognized in the amount of compensation received, which is subsequently measured at amortized cost and included under the heading “Financial liabilities at amortized cost — Debt |
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certificates” of the accompanying consolidated balance sheet. 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, in so far as 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 consolidated income statement |
• | The securitization fund’s activities are undertaken in the name of the entity in accordance with that bank’s specific business requirements with a view to generating benefits or gains from the securitization funds’ operations. | |
• | The bank 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 their incorporation). | |
• | The bank is entitled to receive the bulk of the securitization funds’ profits 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 risk embodied by the assets in the securitization funds and the corresponding asset derecognition rules are applied. |
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• | 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 as balances with central banks, short-term Treasury bills and notes, and demand balances with other credit institutions. | |
• | Operating activities: The typical activities of credit institutions and other activities that cannot be classified as investing or financing activities. | |
• | 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 |
• | Statement of recognized income and expense that reflects the income and expenses generated in every year, distinguishing the recognized ones as “results” in the consolidated income statement of the “other gains (losses) and recognized expenses” straight in equity. | |
• | Statement of changes in total equity that reflects all the movements produced in every year in each of the headings of the consolidated equity included the proceeding ones from transactions realized with the |
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shareholders when they act as such, and the due ones to changes in countable criteria and corrections of errors. |
a) | STANDARDS AND INTERPRETATIONS IN EFFECT IN 2008 |
b) | STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE IN 2008 |
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• | “Puttable instruments”: Financial instrument that gives the holder the right to put the instrument back to the issuer for cash or another financial asset or is automatically put back to the issuer on the occurrence of an uncertain future event or retirement of the instrument holder. Puttable instruments that are subordinate and that entitle the holder to a pro rata share of the entity’s net assets in the event of the entity’s liquidation will be classified as equity. | |
• | Instruments, or components of instruments, that are subordinate to all other classes of instruments and that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation. |
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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 and other cash flows of the financial instrument are not affected by the inflation portion. | |
• | When changes in the cash flows or fair value of a hedged item above or below a specified price or other variable (a one-sided risk) are hedged via a purchased option, the intrinsic value and time value components must be separated and only the intrinsic value may be designated as a hedging instrument. |
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• | The risk hedged is the foreign currency exposure to the functional currencies of the foreign operation and the parent entity. Consequently, a parent entity may designate as a hedged risk only the foreign exchange differences arising from a difference between its own functional currency and that of its foreign operation, i.e. the presentation currency does not create an exposure to which an entity may apply hedge accounting. | |
• | The hedging instrument(s) may be held by any entity or entities within the group, irrespective of their functional currencies (except the foreign operation the investment in which is hedged), so long as IAS 39 requirements are met. |
• | A 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. |
3. | BANCO BILBAO VIZCAYA ARGENTARIA GROUP |
Total Assets | % of the Total | Total Income of the | % of the Total | |||||||||||||
Contributed to the | Asset of the | Period Contributed | Income of the | |||||||||||||
Group | Group | to the Group | Group | |||||||||||||
Millions of euros | ||||||||||||||||
Banks | 498,030 | 91.78 | % | 3,535 | 70.41 | % | ||||||||||
Financial services | 15,608 | 2.88 | % | 393 | 7.84 | % | ||||||||||
Portfolio and funds managing company and dealers | 11,423 | 2.10 | % | 466 | 9.28 | % | ||||||||||
Insurance and pension fund managing company | 14,997 | 2.76 | % | 646 | 12.86 | % | ||||||||||
Real Estate, services and other entities | 2,592 | 0.48 | % | (20 | ) | (0.40 | )% | |||||||||
Total | 542,650 | 100 | % | 5,020 | 100 | % | ||||||||||
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Country | 2008 | 2007 | 2006 | |||||||||
Millions of euros | ||||||||||||
Spain | 380,532 | 347,767 | 302,412 | |||||||||
Mexico | 61,023 | 65,556 | 55,992 | |||||||||
USA & Puerto Rico | 49,698 | 44,358 | 14,682 | |||||||||
Chile | 9,389 | 8,835 | 7,273 | |||||||||
Venezuela | 9,652 | 7,156 | 6,824 | |||||||||
Colombia | 6,552 | 5,922 | 4,797 | |||||||||
Peru | 7,683 | 5,650 | 4,464 | |||||||||
Argentina | 5,137 | 4,798 | 4,595 | |||||||||
Other | 12,984 | 11,684 | 10,624 | |||||||||
Total | 542,650 | 501,724 | 411,663 | |||||||||
Country | 2008 | 2007 | 2006 | |||||||||
Millions of euros | ||||||||||||
Spain | 16,892 | 15,007 | 10,792 | |||||||||
Mexico | 6,721 | 6,185 | 5,991 | |||||||||
USA & Puerto Rico | 2,174 | 1,476 | 566 | |||||||||
Chile | 986 | 793 | 513 | |||||||||
Venezuela | 1,116 | 772 | 574 | |||||||||
Colombia | 811 | 589 | 437 | |||||||||
Peru | 520 | 395 | 326 | |||||||||
Argentina | 541 | 466 | 439 | |||||||||
Other | 643 | 493 | 404 | |||||||||
Total | 30,403 | 26,176 | 20,044 | |||||||||
2008 | 2007 | 2006 | ||||||||||
% BBVA Assets over Group Assets | 63 | % | 62 | % | 65 | % | ||||||
% BBVA Income before tax over Consolidated income before tax | 28 | % | 46 | % | 33 | % |
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Company | % Voting Rights | % Ownership | ||||||
Banco Continental, S.A. | 92.08 | 46.04 | ||||||
Continental Bolsa, Sociedad Agente de Bolsa, S.A. | 100 | 46.04 | ||||||
Continental Sociedad Titulizadora, S.A. | 100 | 46.04 | ||||||
Continental S.A. Sociedad Administradora de Fondos | 100 | 46.04 | ||||||
Inmuebles y Recuperaciones Continental, S.A. | 100 | 46.04 | ||||||
Banco Provincial Overseas N.V. | 100 | 48.01 |
• | On January 3, 2007 the Group closed the transaction to purchase State National Bancshares Inc. with an investment of 488 million dollars (€378 million), generating a goodwill of €270 million. |
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• | On September 7, 2007 the Group acquired 100% of the share capital of Compass Bancshares Inc., (“Compass”) a U.S. banking Group, which conducts its main business activity in the states of Alabama, Texas, Florida, Arizona, Colorado and New Mexico. |
• | On July 28, 2006, Telefónica España, S.A., proceeded to start selling to BBVA its 33% ownership interest in Uno-E Bank, S.A. for an aggregated amount of €148.5 million, reaching BBVA a 100% ownership ofUno-E Bank, S.A. | |
• | In May 2006 BBVA acquired a 51% ownership interest in Forum, a Chilean company specialising in car purchase financing, through the Chilean entities Forum Distribuidora, S.A. and Forum Servicios Financieros, S.A. (which in turn own all the shares of ECASA, S.A.), giving rise to the incorporation of BBVA Financiamiento Automotriz. | |
• | On April 5, 2006 the Group sold its 51% ownership interest in Banc Internacional d’Andorra, S.A. for €395 million, which gave rise to a gain of €184 million. | |
• | On November 10, 2006 the Group acquired Texas Regional Bancshares Inc. through the investment of $2,141 million (€1,674 million). | |
• | On November 30, 2006 the Group acquired all the shares of the Italian vehicle rental company Maggiore Fleet S.p.A., for €70.2 million. |
4. | ALLOCATION OF PROFIT OR LOSS |
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25-06-2008 | 31-08-2008 | 30-11-2008 | ||||||||||
Dividend 1 | Dividend 2 | Dividend 3 | ||||||||||
Millions of euros | ||||||||||||
Interim dividend — | ||||||||||||
Profit at each of the dates indicated, after the provision for income tax | 1,748 | 2,785 | 2,967 | |||||||||
Less - | ||||||||||||
Estimated provision for Legal Reserve | — | — | — | |||||||||
Interim dividends paid | — | 626 | 1,252 | |||||||||
Maximum amount distributable | 1,748 | 2,159 | 1,715 | |||||||||
Amount of proposed interim dividend | 626 | 626 | 626 | |||||||||
Millions of euros | ||||||||
Net profit for 2008(*) | 2,835 | |||||||
Distribution: | ||||||||
Dividends | — | |||||||
— Interim | 1,878 | |||||||
— Final | — | |||||||
Legal reserve | — | |||||||
Voluntary reserves | 957 | |||||||
(*) | Profit of BBVA, S.A. (Appendix I) |
First Interim | Second Interim | Third Interim | Final | Total | ||||||||||||||||
2008 | 0.167 | 0.167 | 0.167 | — | 0.501 | |||||||||||||||
2007 | 0.152 | 0.152 | 0.152 | 0.277 | 0.733 | |||||||||||||||
2006 | 0.132 | 0.132 | 0.132 | 0.241 | 0.637 |
2008 | 2007 | |||||||||||||||||||||||
% over | Euros | % Over | Euros | |||||||||||||||||||||
Nominal | per Share | Amount | Nominal | per Share | Amount | |||||||||||||||||||
(Millions of Euros) | (Millions of Euros) | |||||||||||||||||||||||
Ordinary shares | 102 | % | 0.501 | 1,878 | 150 | % | 0.733 | 2,717 | ||||||||||||||||
Rest of shares | — | — | — | — | — | — | ||||||||||||||||||
Total dividends paid | 102 | % | 0.501 | 1,878 | 150 | % | 0.733 | 2,717 | ||||||||||||||||
Dividends with charge to income | — | — | — | — | — | — | ||||||||||||||||||
Dividends with charge to reserve or share premium | — | — | — | — | — | — | ||||||||||||||||||
Dividends in kind | — | — | — | — | — | — |
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5. | EARNINGS PER SHARE |
2008 | 2007 | 2006 | ||||||||||
EARNINGS PER SHARE FOR CONTINUING OPERATIONS | ||||||||||||
Numerator for basic earnings per share: | ||||||||||||
Income available to common stockholders (thousands of euros) | 5,020 | 6,126 | 4,736 | |||||||||
Numerator for diluted earnings per share: | ||||||||||||
Income available to common stockholders (thousands of euros) | 5,020 | 6,126 | 4,736 | |||||||||
Denominator for basic earnings per share (millions of shares) | 3,706 | 3,594 | 3,406 | |||||||||
Denominator for diluted earnings per share (millions of shares) | 3,706 | 3,594 | 3,406 | |||||||||
Basic earnings per share for continuing operations (euros) | 1.35 | 1.70 | 1.39 | |||||||||
Diluted earnings per share for continuing operations (euros) | 1.35 | 1.70 | 1.39 |
6. | BASIS AND METHODOLOGY INFORMATION FOR SEGMENT REPORTING |
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• | The wholesale businesses (a segment denominated Global Businesses), which includes wholesale type transactions undertaken in any part of the world, and is made up of: Global Clients & Investment Banking, which encompasses the wholesale businesses performed by the European, Asian and New York based offices, Global Markets, charged with treasury management and distribution in the same markets, Asset Management, which includes the traditional asset management businesses (mutual funds and pension funds in Spain), alternative asset management and private equity, the Proprietary Project Management arm, including the Group’s non-financial shareholdings and proprietary real estate activities, and Asia, which holds the Group’s investment in the CITIC Group. | |
• | The retail businesses, which constitute the Group’s core business, and are in turn split into four segments, given each unit’s unique characteristics. The names of these segments have been preserved from how the Group has traditionally reported its business performance to the market. They are: |
• | The retail banking business in the eurozone (a segment denominated Spain and Portugal), which includes: the retail banking network in Spain, including the retail segment, wealth management and the company and business banking unit in this market; commercial banking, which encompasses banking with SMEs, corporates, institutions and developers in the same geography, and all other related businesses, noteworthy among which are the consumer financing, European insurance and Portuguese banking units. |
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• | The retail businesses in Mexico (a segment denominated Mexico), which includes the banking, insurance and pension businesses in this nation. | |
• | The retail businesses in the US (a segment denominated USA), which includes the banking and insurance businesses in the US and Puerto Rico. | |
• | The retail businesses in the rest of the Americas (a segment denominated South America), which includes the banking, insurance and pension businesses in this region. |
• | Activities of a corporate nature (Corporate Activities), a unit which performs management functions for the Group as a whole, essentially management of structural euro- and currency-denominated balance sheet interest rate positions, as well as liquidity and capital management functions; the management of structural risks in non-euro interest rate positions is undertaken at the corresponding business units. This segment also includes the Industrial and Financial Shareholdings unit and the allocation of strictly head-office costs and certain allowances, such as early retirement provisions and others that are also corporate in nature. |
Total Assets | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Spain and Portugal | 223,498 | 223,628 | 200,814 | |||||||||
Global Businesses | 140,372 | 103,999 | 84,792 | |||||||||
Mexico | 60,805 | 65,678 | 56,879 | |||||||||
USA | 43,345 | 38,381 | 14,951 | |||||||||
South America | 41,600 | 34,690 | 30,498 | |||||||||
Corporate Activities | 33,029 | 35,350 | 23,730 | |||||||||
Total | 542,650 | 501,726 | 411,663 | |||||||||
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Consolidated Income | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Spain and Portugal | 2,625 | 2,381 | 1,884 | |||||||||
Global Businesses | 754 | 896 | 859 | |||||||||
Mexico | 1,938 | 1,880 | 1,711 | |||||||||
USA | 211 | 203 | 64 | |||||||||
South America | 727 | 623 | 509 | |||||||||
Corporate Activities | (1,235 | ) | 142 | (291 | ) | |||||||
Subtotal | 5,020 | 6,126 | 4,736 | |||||||||
Not assigned income | — | — | — | |||||||||
Elimination of interim income (between segments) | — | — | — | |||||||||
Other gains (losses) | 366 | 289 | 235 | |||||||||
Income tax and/or income from discontinued operations | 1,541 | 2,079 | 2,059 | |||||||||
INCOME BEFORE TAX | 6,926 | 8,494 | 7,030 | |||||||||
Total Ordinary Income | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Spain and Portugal | 12,613 | 11,442 | 9,832 | |||||||||
Global Businesses | 5,920 | 5,559 | 4,035 | |||||||||
Mexico | 9,162 | 8,721 | 8,431 | |||||||||
USA | 2,862 | 1,831 | 701 | |||||||||
South America | 5,834 | 4,643 | 3,954 | |||||||||
Corporate Activities | 4,886 | 5,064 | 3,275 | |||||||||
Adjustments and eliminations of ordinary income between segments | — | — | — | |||||||||
TOTAL | 41,277 | 37,260 | 30,229 | |||||||||
7. | RISK EXPOSURE |
• | Market risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. There are three types of market risk: | |
• | Currency risk: the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. | |
• | Interest rate risk: the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. | |
• | Price risk: the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. |
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• | Credit risk is 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. | |
• | Liquidity risk is defined as the risk that an entity will not be able to meet obligations associated with financial liabilities, or will be forced to secure funding on onerous conditions as a result of difficulties encountered in meeting its obligations. |
• | The risks assumed must be aligned with the Group’s regulatory capital in accordance with its target solvency level. | |
• | There are limits in place to curtail the concentration of exposures to specific risk factors that could jeopardize the Group’s objectives in terms of solvency, liquidity and earnings recurrence. | |
• | The Group’s endeavours to generate profits must imply a high degree of repeat earnings. | |
• | Business growth must be financed in accordance with prudent liquidity management. | |
• | All risks must be identified, measured and evaluated and procedures must be in place to monitor and manage these risks. | |
• | Maintenance of robust tools for controlling and mitigating operational and reputational risks. | |
• | The business divisions are held responsible for proposing and maintaining an adequate risk profile within their scope of activity and under the umbrella of the corporate risk management framework. | |
• | The risk management infrastructure must be sufficient to lend dynamic support to the principles listed above in relation to tools, databases, IT systems, procedures and personnel. |
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• | Analysing and assessing proposals for Group risk strategy and policies in order to submit them to the Bank’s Standing Committee for approval. | |
• | Monitoring the degree to which the risks assumed are in line with the specified profile, as a reflection of the Bank’s risk tolerance and expected earnings in view of the risk exposure. | |
• | Approval of risk operations within the established delegation system. | |
• | Verification that the Group is provided with the means, systems, structures and resources in line with best practices, to enable it to implement its risk management strategy. | |
• | Submission of the proposals it considers necessary or appropriate to the Bank’s Standing Committee so that risk management adapts to best practices arising from recommendations on corporate governance or from risk supervisory bodies. |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Financial asstest held for trading (Note 10) | 67,502 | 53,156 | 41,842 | |||||||||
Debt securities | 26,556 | 38,392 | 30,426 | |||||||||
Public sector | 20,778 | 27,960 | 20,939 | |||||||||
Credit institutions | 2,825 | 6,020 | 6,352 | |||||||||
Other sectors | 2,953 | 4,412 | 3,135 | |||||||||
Trading derivatives | 40,946 | 14,764 | 11,416 | |||||||||
Other financial assets designated at fair value through profit or loss (Note 11) | 516 | 421 | 56 | |||||||||
Debt securities | 516 | 421 | 56 | |||||||||
Public sector | 38 | 41 | 40 | |||||||||
Credit institutions | 24 | 36 | 10 | |||||||||
Other sectors | 454 | 344 | 6 | |||||||||
Availvable-for-sale financial assets (Note 12) | 39,961 | 37,252 | 32,068 | |||||||||
Debt securities | 39,961 | 37,252 | 32,068 | |||||||||
Public sector | 19,576 | 17,573 | 17,964 | |||||||||
Credit institutions | 13,377 | 13,419 | 9,199 | |||||||||
Other sectors | 7,008 | 6,260 | 4,905 | |||||||||
Loans and receivables (Note 13) | 375,386 | 344,124 | 285,421 | |||||||||
Loans and advances to credit institutions | 33,679 | 24,392 | 21,204 | |||||||||
Loans and advances to customers | 341,321 | 319,671 | 264,139 | |||||||||
Public Sector | 22,502 | 21,065 | 21,194 | |||||||||
Agriculture | 4,109 | 3,737 | 3,133 | |||||||||
Industry | 46,576 | 39,922 | 24,731 | |||||||||
Real estate and construction | 47,682 | 55,156 | 41,502 | |||||||||
Trade and finance | 51,725 | 36,371 | 38,910 | |||||||||
Loans to individuals | 127,890 | 121,462 | 103,918 | |||||||||
Leases | 9,385 | 9,148 | 7,692 | |||||||||
Other | 31,452 | 32,810 | 23,059 | |||||||||
Debt securities | 386 | 61 | 78 | |||||||||
Public sector | 290 | (1 | ) | — | ||||||||
Credit institutions | 4 | 1 | 1 | |||||||||
Other sectors | 92 | 61 | 77 | |||||||||
Held-to-maturity investments (Note 14) | 5,285 | 5,589 | 5,911 | |||||||||
Public sector | 3,844 | 4,125 | 4,440 | |||||||||
Credit institutions | 800 | 818 | 823 | |||||||||
Other sectors | 641 | 646 | 648 | |||||||||
Hedging derivatives (Note 15) | 3,833 | 1,050 | 1,963 | |||||||||
Subtotal | 492,482 | 441,592 | 367,261 | |||||||||
Valuation adjustments | 942 | 655 | 401 | |||||||||
Total Balance | 493,424 | 442,247 | 367,662 | |||||||||
Financial guarantees (Note 33) | 35,952 | 65,845 | 42,281 | |||||||||
Other contingent exposures | 6,234 | 5,496 | 4,995 | |||||||||
Drawable by third parties (Note 33) | 92,663 | 101,444 | 98,226 | |||||||||
Public sector | 4,221 | 4,419 | 3,122 | |||||||||
Credit institutions | 2,021 | 2,619 | 4,356 | |||||||||
Other sectors | 86,421 | 94,406 | 90,748 | |||||||||
Total off-balances | 134,849 | 172,785 | 145,502 | |||||||||
Total | 628,273 | 615,032 | 513,164 | |||||||||
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• | Loans and advances to credit institutions: They have personal guarantees from the counterparties and, on occasion, an additional guarantee from another credit entity with which a credit derivative has been written. | |
• | Loans and advances to customers: Most of these operations are backed by personal guarantees extended by the counterparties. The collateral received to secure loans and advances to customers include mortgages, cash guarantees and other collateral such as pledged securities. Other kinds of credit enhancements may be put in place such as guarantees, credit derivatives, etc. | |
• | Debt securities: Guarantees or credit enhancements, which are taken directly from the issuer or counterparty, are implicit to the instrument’s structuring. |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Mortgage loans | 125,540 | 123,998 | 107,837 | |||||||||
Operating assets mortgage loans | 3,896 | 4,381 | 4,595 | |||||||||
Home mortgages | 82,613 | 79,377 | 67,777 | |||||||||
Rest | 39,031 | 40,240 | 35,465 | |||||||||
Secured loans, except mortgage | 19,982 | 11,559 | 8,900 | |||||||||
Cash guarantees | 250 | 578 | 727 | |||||||||
Pledging of securities | 458 | 766 | 972 | |||||||||
Rest | 19,274 | 10,215 | 7,201 | |||||||||
Total | 145,522 | 135,557 | 116,737 | |||||||||
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Probability of Default (Basic Points) | ||||||||||||
Minimum from | Maximum | |||||||||||
Rating | Average | >= | Until < | |||||||||
AAA | 1 | 0 | 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+1 | 12 | 11 | 14 | |||||||||
BBB+2 | 15 | 14 | 17 | |||||||||
BBB1 | 18 | 17 | 20 | |||||||||
BBB2 | 22 | 20 | 24 | |||||||||
BBB-1 | 27 | 24 | 30 | |||||||||
BBB-2 | 34 | 30 | 39 | |||||||||
BB+1 | 44 | 39 | 50 | |||||||||
BB+2 | 58 | 50 | 67 | |||||||||
BB1 | 78 | 67 | 90 | |||||||||
BB2 | 102 | 90 | 116 | |||||||||
BB-1 | 132 | 116 | 150 | |||||||||
BB-2 | 166 | 150 | 194 | |||||||||
B+1 | 204 | 194 | 226 | |||||||||
B+2 | 250 | 226 | 276 | |||||||||
B+3 | 304 | 276 | 335 | |||||||||
B1 | 370 | 335 | 408 | |||||||||
B2 | 450 | 408 | 490 | |||||||||
B3 | 534 | 490 | 581 | |||||||||
B-1 | 633 | 581 | 689 | |||||||||
B-2 | 750 | 689 | 842 | |||||||||
B-3 | 945 | 842 | 1061 | |||||||||
CCC+ | 1,191 | 1,061 | 1,336 | |||||||||
CCC | 1,500 | 1,336 | 1,684 | |||||||||
CCC- | 1,890 | 1,684 | 2,121 | |||||||||
CC+ | 2,381 | 2,121 | 2,673 | |||||||||
CC | 3,000 | 2,673 | 3,367 | |||||||||
CC- | 3,780 | 3,367 | 4,243 |
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Rating | % | |||
AAA/AA | 23.77 | % | ||
A | 26.59 | % | ||
BBB+ | 9.23 | % | ||
BBB | 5.76 | % | ||
BBB- | 9.48 | % | ||
BB+ | 8.25 | % | ||
BB | 6.16 | % | ||
BB- | 5.91 | % | ||
B+ | 3.08 | % | ||
B | 1.44 | % | ||
B- | 0.29 | % | ||
CCC/CC | 0.03 | % | ||
Total | 100.00 | % | ||
• | Striking a balance between the customer’s financing needs, broken down by type (trade/financial, short/long-term, etc.), and the degree to which its business is or is not attractive to BBVA. This approach drives a better operational mix that is still compatible with the needs of the bank’s clientele. | |
• | Other determining factors relate to national legislation and the ratio between the size of the customer book and 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 the taking of appropriate action. |
Less Than 1 | 1 to 2 | 2 to 3 | ||||||||||||||
Month | Months | Months | Total | |||||||||||||
Millions of euros | ||||||||||||||||
Loans and advances to customers | 1,580 | 534 | 447 | 2,561 |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
IMPAIRED RISKS ON BALANCE | ||||||||||||
Available-for-sale | 188 | 3 | 3 | |||||||||
Debt securities | 188 | 3 | 3 | |||||||||
Loans and advances | 8,540 | 3,366 | 2,500 | |||||||||
Loans and advances to credit institutions | 95 | 8 | 8 | |||||||||
Loans and advances to customers | 8,437 | 3,358 | 2,492 | |||||||||
Debt securities | 8 | — | — | |||||||||
8,728 | 3,369 | 2,503 | ||||||||||
IMPAIRED RISKS OFF BALANCE | ||||||||||||
Impaired contingent liabilities | 131 | 49 | 40 | |||||||||
TOTAL IMPAIRED RISKS | 8,859 | 3,418 | 2,543 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at the beginning of the year | 3,418 | 2,543 | 2,389 | |||||||||
Additions | 11,488 | 4,606 | 2,746 | |||||||||
Recoveries | (3,668 | ) | (2,418 | ) | (1,830 | ) | ||||||
Transfers to write-off | (2,198 | ) | (1,497 | ) | (707 | ) | ||||||
Exchange differences and others | (182 | ) | 184 | (55 | ) | |||||||
Balance at the end of the year | 8,858 | 3,418 | 2,543 | |||||||||
Impaired Assets of Loans and Advances to Customers | ||||||||||||||||||||||||
Amounts less | ||||||||||||||||||||||||
than six | ||||||||||||||||||||||||
months past- | 6 to 12 | 12 to 18 | 18 to 24 | More than 24 | ||||||||||||||||||||
due | months | months | months | months | Total | |||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Spain | 2,405 | 1,904 | 595 | 87 | 975 | 5,966 | ||||||||||||||||||
Rest of Europe | 55 | 10 | 6 | 5 | 16 | 92 | ||||||||||||||||||
Latin America | 1,112 | 88 | 22 | 7 | 320 | 1,549 | ||||||||||||||||||
United States | 221 | 869 | — | — | 30 | 1,120 | ||||||||||||||||||
Rest | — | — | — | — | 1 | 1 | ||||||||||||||||||
Total | 3,793 | 2,871 | 623 | 99 | 1,342 | 8,728 | ||||||||||||||||||
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
IMPAIRED RISKS ON BALANCE | ||||||||||||
Public sector | 102 | 177 | 216 | |||||||||
Credit institutions | 165 | 8 | 8 | |||||||||
Collateralized financial assets with other sectors | 3,428 | 809 | 545 | |||||||||
Mortgage | 2,487 | 696 | 459 | |||||||||
Other collateralized financial assets | 941 | 113 | 86 | |||||||||
Non-collateralized financial assets with other sectors | 5,033 | 2,375 | 1,734 | |||||||||
Total | 8,728 | 3,369 | 2,503 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Financial income from impaired assets | 1,042 | 880 | 1,107 |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 5,622 | 6,120 | 6,187 | |||||||||
Increase: | ||||||||||||
Assets of remote collectability | 1,700 | 1,895 | 472 | |||||||||
Products overdue not collected | 276 | 217 | 167 | |||||||||
Decrease: | ||||||||||||
Cash recovery | (199 | ) | (237 | ) | (463 | ) | ||||||
Foreclosed assets | (13 | ) | (5 | ) | (5 | ) | ||||||
Other causes | (355 | ) | (2,455 | ) | (129 | ) | ||||||
Net exchange differences | (159 | ) | 87 | (109 | ) | |||||||
Balance at the end of year | 6,872 | 5,622 | 6,120 | |||||||||
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2008 | 2007 | |||||||
Millions of euros | ||||||||
SALES TO THIRD PARTIES | ||||||||
Bancomer | 249 | 1,338 | ||||||
BBVA, S.A. | 12 | 968 | ||||||
Total | 261 | 2,306 | ||||||
Gains for sales to third parties | 3 | 26 | ||||||
2008 | 2007 | 2006 | ||||||||||
NPL ratio | 2.12 | 0.89 | 0.83 |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 7,194 | 6,504 | 5,729 | |||||||||
Increase in impairment losses charged to income | 4,590 | 2,462 | 2,113 | |||||||||
Decrease in impairment losses credited to income | (1,457 | ) | (333 | ) | (470 | ) | ||||||
Aquisition of subsidiaries in the year | 1 | 276 | 91 | |||||||||
Disposal of subsidiaries in the year | (4 | ) | (26 | ) | (22 | ) | ||||||
Transfers to written-off loans | (1,951 | ) | (1,297 | ) | (563 | ) | ||||||
Exchange differences and other | (662 | ) | (392 | ) | (374 | ) | ||||||
Balance at end of year | 7,711 | 7,194 | 6,504 | |||||||||
Of which: | ||||||||||||
For impaired portfolio | 3,480 | 1,999 | 2,083 | |||||||||
For current portfolio non impaired | 4,231 | 5,195 | 4,421 |
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• | Currency risk: the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. | |
• | Interest rate risk: the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. | |
• | Price risk: defined as the risk that the value of financial instruments will fluctuate as a result of changes in market prices whether those changes are caused by factors specific to the individual instrument or factors affecting all instruments traded in the market. |
a) | Market Risk |
(MILLIONS of EUROS)
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2008 | 2007 | 2006 | ||||||||||||||
Millions of euros | ||||||||||||||||
Interest/Spread risk | 24.2 | 12.2 | 12.9 | |||||||||||||
Currency risk | 7.4 | 2.4 | 0.7 | |||||||||||||
Stock-market risk | 1.1 | 6.3 | 5.8 | |||||||||||||
Vega/Correlation risk | 14.8 | 8.8 | 7.9 |
• | Interest rate risk: Defined as the potential loss in value of the portfolio due to movements in interest rate curves. We use all interest rate curves in which positions and risks exist. We also use a wide range of vertices reflecting the different maturities within each curve. | |
• | Credit spread risk: Defined as the potential loss caused by movements in credit spread levels determining the value of corporate bonds or any corporate bond derivative. 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: Defined as the potential loss caused by movements in exchange rates. Exchange rate risk VaR is estimated by impacting present positions with observed actual changes in exchange rates. | |
• | Equity or commodity risk: Defined as 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 in line with observed actual changes in equity prices, stock-market indices and commodity prices. | |
• | Vega risk: Defined as 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 impacting implied volatility surfaces with observed changes in the implied volatilities of equity, interest rate and exchange rate options. | |
• | Correlation risk: Defined as the potential loss caused by a disparity between the estimated and actual correlation between two assets, currencies, derivatives, instruments or markets. |
b) | Structural interest rate risk |
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Average Impact on Net Interest Income | ||||||||||||||||||||
100 Basis-Point | ||||||||||||||||||||
100 Basis-Point Increase | Decrease | |||||||||||||||||||
Entities | Euro | Dollar | Other | Total | Total | |||||||||||||||
(Millions of euros) | ||||||||||||||||||||
BBVA | (89.3 | ) | (30.1 | ) | +0.7 | (115.0 | ) | +136.9 | ||||||||||||
BBVA Bancomer | — | +18.2 | +25.2 | +43.4 | (43.4 | ) | ||||||||||||||
BBVA Puerto Rico | — | +2.0 | — | +2.0 | (3.2 | ) | ||||||||||||||
Compass Bancshares, Inc | — | (8.3 | ) | — | (8.3 | ) | +4.6 | |||||||||||||
BBVA Chile | — | +0.2 | (0.5 | ) | (0.3 | ) | +0.1 | |||||||||||||
BBVA Colombia | — | (0.2 | ) | +8.9 | +8.6 | (8.7 | ) | |||||||||||||
BBVA Banco Continental | — | (1.2 | ) | +2.9 | +1.7 | (1.8 | ) | |||||||||||||
BBVA Banco Provincial | — | +1.2 | (1.4 | ) | (0.2 | ) | +0.2 | |||||||||||||
BBVA Banco Francés | — | (0.2 | ) | +0.3 | +0.1 | (0.1 | ) |
Average impact on Economic Value | ||||||||||||||||||||
100 Basis-Point | ||||||||||||||||||||
100 Basis-Point Increase | Decrease | |||||||||||||||||||
Entities | Euro | Dollar | Other | Total | Total | |||||||||||||||
(Millions of euros) | ||||||||||||||||||||
Europa | +140.6 | +14.1 | (1.1 | ) | +152.6 | (196.2 | ) | |||||||||||||
BBVA Bancomer | — | +55.1 | (401.8 | ) | (346.0 | ) | +331.1 | |||||||||||||
BBVA Puerto Rico | — | +6.4 | — | +6.4 | (18.6 | ) | ||||||||||||||
Compass Bancshares, Inc | — | (127.4 | ) | — | (127.4 | ) | +44.9 | |||||||||||||
BBVA Chile | — | +3.2 | (54.3 | ) | (51.1 | ) | +39.7 | |||||||||||||
BBVA Colombia | — | (0.8 | ) | (9.5 | ) | (10.4 | ) | +11.4 | ||||||||||||
BBVA Banco Continental | — | (23.7 | ) | (16.3 | ) | (40.0 | ) | +41.7 | ||||||||||||
BBVA Banco Provincial | — | (12.8 | ) | +2.0 | (10.8 | ) | +12.0 | |||||||||||||
BBVA Banco Francés | — | +0.1 | (9.4 | ) | (9.3 | ) | +9.8 |
c) | Structural currency risk |
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d) | Structural equity price risk |
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Up to 1 | 1 to 3 | 3 to 12 | 1 to 5 | Over 5 | ||||||||||||||||||||||||
2008 | Total | Demand | month | months | months | years | years | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 14,640 | 13,485 | 476 | 296 | 181 | 202 | — | |||||||||||||||||||||
Loans and advances to credit insititutions | 33,678 | 6,198 | 16,215 | 1,621 | 2,221 | 4,109 | 3,314 | |||||||||||||||||||||
Loans and advances to customers | 341,322 | 13,905 | 36,049 | 23,973 | 45,320 | 91,030 | 131,045 | |||||||||||||||||||||
Debt securities | 72,704 | 716 | 1,701 | 12,230 | 9,483 | 24,640 | 23,934 | |||||||||||||||||||||
Derivatives (trading and hedging) | 44,779 | — | 3,739 | 2,206 | 5,442 | 16,965 | 16,427 | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Deposits from central banks | 16,762 | 2,419 | 8,737 | 2,441 | 3,165 | — | — | |||||||||||||||||||||
Deposits from credit institutions | 49,573 | 4,906 | 22,412 | 4,090 | 5,975 | 6,581 | 5,609 | |||||||||||||||||||||
Deposits from customers | 253,722 | 101,140 | 68,804 | 27,025 | 35,176 | 16,440 | 5,137 | |||||||||||||||||||||
Debt certificates (including bonds) | 101,329 | — | 9,788 | 13,516 | 12,072 | 45,470 | 20,483 | |||||||||||||||||||||
Subordinated liabilities | 16,250 | 69 | 913 | 1 | 872 | 3,582 | 10,813 | |||||||||||||||||||||
Other financial liabilities | 8,453 | 5,000 | 1,152 | 385 | 203 | 1,371 | 342 | |||||||||||||||||||||
Short positions | 2,700 | — | 24 | — | 23 | — | 2,653 | |||||||||||||||||||||
Derivatives (trading and hedging) | 41,534 | — | 2,693 | 3,108 | 6,310 | 15,537 | 13,886 |
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Up to 1 | 1 to 3 | 3 to 12 | 1 to 5 | Over 5 | ||||||||||||||||||||||||
2007 | Total | Demand | Month | Months | Months | Years | Years | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 22,561 | 22,532 | 29 | — | — | — | — | |||||||||||||||||||||
Loans and advances to credit insititutions | 24,392 | 3,764 | 12,246 | 2,519 | 2,301 | 2,703 | 859 | |||||||||||||||||||||
Loans and advances to customers | 319,671 | 7,220 | 30,338 | 23,778 | 46,226 | 87,414 | 124,695 | |||||||||||||||||||||
Debt securities | 81,715 | 516 | 1,719 | 24,726 | 8,964 | 20,884 | 24,906 | |||||||||||||||||||||
Other assets | — | — | — | — | — | — | — | |||||||||||||||||||||
OTC derivatives | — | — | — | — | — | — | — | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Deposits from central banks | 27,256 | 117 | 25,013 | 1,435 | 691 | — | — | |||||||||||||||||||||
Deposits from credit institutions | 60,395 | 6,696 | 36,665 | 4,063 | 5,258 | 5,657 | 2,055 | |||||||||||||||||||||
Money market operations through counterparties | — | — | — | — | — | — | — | |||||||||||||||||||||
Deposits from customers | 218,541 | 74,605 | 51,671 | 15,815 | 36,390 | 34,404 | 5,656 | |||||||||||||||||||||
Debt certificates (including bonds) | 101,875 | 5,987 | 7,391 | 4,191 | 14,878 | 44,178 | 25,249 | |||||||||||||||||||||
Subordinated liabilities | 15,397 | 1,200 | 495 | 15 | 583 | 2,722 | 10,382 | |||||||||||||||||||||
Other financial liabilities | 6,239 | 3,810 | 1,372 | 182 | 450 | 372 | 53 | |||||||||||||||||||||
OTC derivatives | — | — | — | — | — | — | — |
Up to 1 | 1 to 3 | 3 to 12 | 1 to 5 | Over 5 | ||||||||||||||||||||||||
2006 | Total | Demand | Month | Months | Months | Years | Years | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
ASSETS — | ||||||||||||||||||||||||||||
Cash and balances with central banks | 12,496 | 12,446 | 50 | — | — | — | — | |||||||||||||||||||||
Loans and advances to credit insititutions | 21,205 | 4,705 | 9,306 | 1,271 | 2,166 | 3,131 | 626 | |||||||||||||||||||||
Loans and advances to customers | 264,139 | 2,919 | 23,196 | 21,555 | 37,308 | 71,728 | 107,433 | |||||||||||||||||||||
Money market operations through counterparties | — | — | — | — | — | — | — | |||||||||||||||||||||
Debt securities | 68,537 | 379 | 1,272 | 16,223 | 7,068 | 16,461 | 27,134 | |||||||||||||||||||||
Other assets | — | — | — | — | — | — | — | |||||||||||||||||||||
OTC derivatives | — | — | — | — | — | — | — | |||||||||||||||||||||
LIABILITIES — | ||||||||||||||||||||||||||||
Deposits from central banks | 15,191 | 1,802 | 11,041 | 1,850 | 498 | — | — | |||||||||||||||||||||
Deposits from credit institutions | 42,285 | 2,529 | 22,017 | 5,268 | 5,968 | 4,460 | 2,043 | |||||||||||||||||||||
Money market operations through counterparties | — | — | — | — | — | — | — | |||||||||||||||||||||
Deposits from customers | 186,035 | 77,654 | 46,488 | 12,352 | 16,412 | 27,295 | 5,834 | |||||||||||||||||||||
Debt certificates (including bonds) | 85,670 | 3,453 | 5,629 | 2,989 | 9,952 | 41,985 | 21,662 | |||||||||||||||||||||
Subordinated liabilities | 13,411 | — | — | 560 | 631 | 3,435 | 8,785 | |||||||||||||||||||||
Other financial liabilities | 6,771 | 4,552 | 1,596 | 262 | 210 | 147 | 4 | |||||||||||||||||||||
OTC derivatives | — | — | — | — | — | — | — |
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• | Royal Decree-Law 6/2008, of October 10, creating the Spanish Financial Asset Acquisition Fund, 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, extendable to €50 billion, is to acquire, with public financing and based on market criteria, via auctions, financial instruments issued by the banks andcajasand securitization funds containing Spanish assets, secured by loans extended to individuals, companies and non-financial corporates. | |
• | 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: |
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Europe | ||||||||||||||||||||||||
Except | Latin | |||||||||||||||||||||||
Risks on Balance | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
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 | 13,061 | 506,333 | ||||||||||||||||||
Europe | ||||||||||||||||||||||||
Except | Latin | |||||||||||||||||||||||
Risks Off-Balance | Spain | Spain | USA | America | Rest | Total | ||||||||||||||||||
Financial guarantees | 16,843 | 8,969 | 3,456 | 4,721 | 1,963 | 35,952 | ||||||||||||||||||
Other 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 | ||||||||||||||||||
8. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
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2008 | 2007 | 2006 | ||||||||||||||||||||||
Book | Fair | Book | Fair | Book | Fair | |||||||||||||||||||
Value | Value | Value | Value | Value | Value | |||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and balances with central banks | 14,659 | 14,659 | 22,581 | 22,581 | 12,515 | 12,515 | ||||||||||||||||||
Financial assets held for trading | 73,299 | 73,299 | 62,336 | 62,336 | 51,791 | 51,791 | ||||||||||||||||||
Other financial assets designated at fair value through profit or loss | 1,755 | 1,755 | 1,167 | 1,167 | 977 | 977 | ||||||||||||||||||
Available-for-sale financial assets | 47,780 | 47,780 | 48,432 | 48,432 | 42,256 | 42,267 | ||||||||||||||||||
Loans and receivables | 369,494 | 381,845 | 337,765 | 345,505 | 279,658 | 287,590 | ||||||||||||||||||
Held-to-maturity investments | 5,282 | 5,221 | 5,584 | 5,334 | 5,906 | 5,757 | ||||||||||||||||||
Hedging derivatives | 3,833 | 3,833 | 1,050 | 1,050 | 1,963 | 1,963 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Financial assets held for trading | 43,009 | 43,009 | 19,273 | 19,273 | 14,923 | 14,923 | ||||||||||||||||||
Other financial liabilities designated at fair value through profit or loss | 1,033 | 1,033 | 449 | 449 | 582 | 582 | ||||||||||||||||||
Financial liabilities at amortised cost | 450,605 | 447,722 | 431,856 | 425,265 | 351,405 | 347,557 | ||||||||||||||||||
Hedging derivatives | 1,226 | 1,226 | 1,807 | 1,807 | 2,280 | 2,280 |
• | 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” corresponds to their quoted price in active markets. | |
• | The fair values of “Loans and receivables” and “Financial liabilities at amortized cost” was estimated by discounting estimated cash flows to present value using the market interest rates prevailing at each year-end. |
• | Measurement using market observable quoted prices for the financial instrument in question, secured from independent sources and linked to active markets (Level 1). This level includes listed debt securities, other listed equity instruments, derivatives in organized markets and mutual funds. | |
• | Measurement using valuation techniques the inputs for which are drawn from market observable data (Level 2). They are measured using discounted cash flow methodology using market observable interest rate and spread curves. This level includes unlisted debt securities, other unlisted equity instruments and OTC derivatives (swaps, forward contracts, credit default swaps (CDS), etc). | |
• | Measurement using valuation techniques, where some of the inputs are not taken from market observable data (Level 3). Model selection and validation is undertaken at the independent business units. |
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Assumptions not | ||||
Financial Instruments | Valuation Techniques | Obsevable in Market | ||
Debt securities | Time to default model. ABSs were measured by discounted cash flow. Future prepayments are calculated on the basis of conditional prepayment rates supplied by issuers. CDOs are valued by the time-to-default model. The model is based on a statistical Gaussian Copula as a measure of probability of default. The BBVA Group uses a correlation input extrapolated from the correlation of the various tranches of the indices (ITRAXX and CDX) with the underlying portfolio of our CDOs, using the expected loss as the basis of realisation. | Credit Spread Correlation of defaults | ||
Other equity instruments | Present value method | Credit Spread | ||
Trading derivatives | Present value method and “Libor Market” model for valuation of forward and future rate agreements (FRA). Options are measured using widely accepted valuation models, factoring in implied volatility observations. The models used most often are the Montecarlo, numerical integration and Black-Scholes models for equity and currency options while the models used most extensively to value interest rate options are the Black 76, Hull & White and Black-Derman-Toy models. | Correlation decay Vol-of-Vol; Rever Factor; Volatility- Spot Correlation | ||
Short positions | Present value method | |||
Hedging derivatives (assets and liabilities) | Present value method. Black 76 for caps, collars and floors. |
• | Credit Spread: The spread between the yield of a free risk asset (e.g.Treasury securities) and the yield of any other security that are identical in all respects except for quality rating. Spreads are considered as level 3 inputs to fair value when referred to illiquid issues. Based on spread of similar entities. | |
• | Correlation decay: It is the factor that allows us to calculate how the correlation evolves between the different pairs of forward rates. | |
• | Vol-of-Vol: Volatility of implicit volatility of the spot. It is a statistical measure of the changes of the spot volatility. | |
• | Reversion Factor: it is the speed with the spot volatility reverts to its average value. | |
• | Volatility — Spot Correlation: is a statistical measure of the linear relationship (correlation) between the spot price of a security and its volatility. |
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2008 | 2007 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Financial assets held for trading (Note 10) | 29,096 | 43,257 | 946 | 44,880 | 17,247 | 210 | ||||||||||||||||||
Debt securities (Note 10.2) | 22,227 | 4,015 | 314 | 34,265 | 4,031 | 96 | ||||||||||||||||||
Other equity instruments (Note 10.3) | 5,348 | 89 | 360 | 9,149 | 30 | 1 | ||||||||||||||||||
Trading derivatives (Note 10.4) | 1,521 | 39,153 | 272 | 1,466 | 13,185 | 113 | ||||||||||||||||||
Other financial assets designated at fair value through profit or loss (Note 11) | 923 | 831 | — | 1,116 | 51 | — | ||||||||||||||||||
Debt securities | 515 | 1 | — | 370 | 51 | — | ||||||||||||||||||
Other equity instruments | 408 | 830 | — | 746 | — | — | ||||||||||||||||||
Available-for-sale financial assets (Note 12) | 24,640 | 19,679 | 2,905 | 37,590 | 10,445 | 397 | ||||||||||||||||||
Debt securities | 19,274 | 19,384 | 1,173 | 35,587 | 1,452 | 297 | ||||||||||||||||||
Other equity instruments | 5,366 | 295 | 1,732 | 2,003 | 8,993 | 100 | ||||||||||||||||||
Hedging derivatives (Nota 15) | 444 | 3,386 | 2 | 389 | 661 | — | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Financial liabilities held for trading (Note 10) | 4,517 | 38,408 | 84 | 1,506 | 17,691 | 76 | ||||||||||||||||||
Trading derivatives (Note 10.4) | 1,817 | 38,408 | 84 | — | 17,464 | 76 | ||||||||||||||||||
Short positions (Note 10.1) | 2,700 | — | — | 1,506 | 227 | — | ||||||||||||||||||
Other financial liabilities designated at fair value through profit or loss (Note 11) | — | 1,033 | — | 449 | — | — | ||||||||||||||||||
Hedging derivatives (Note 15) | 564 | 662 | — | 502 | 1,305 | — |
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Carrying | ||||||||||||
Amount | Amount At | Gains/ | ||||||||||
of Sale | Sale Date | losses | ||||||||||
Millions of euros | ||||||||||||
Sale of instruments at cost | 219 | 147 | 72 |
9. | CASH AND BALANCES WITH CENTRAL BANKS |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Cash | 3,915 | 2,938 | 2,756 | |||||||||
Balances at the Bank of Spain | 2,391 | 11,543 | 2,705 | |||||||||
Balances at other central banks | 8,336 | 8,080 | 7,035 | |||||||||
Total gross | 14,642 | 22,561 | 12,496 | |||||||||
Accrued interests | 17 | 20 | 19 | |||||||||
Total | 14,659 | 22,581 | 12,515 | |||||||||
10. | FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Assets — | ||||||||||||
Debt securities | 26,556 | 38,392 | 30,426 | |||||||||
Other equity instruments | 5,797 | 9,180 | 9,949 | |||||||||
Trading derivatives | 40,946 | 14,764 | 11,416 | |||||||||
Total | 73,299 | 62,336 | 51,791 | |||||||||
Liabilities — | ||||||||||||
Trading derivatives | 40,309 | 17,540 | 13,218 | |||||||||
Short positions | 2,700 | 1,733 | 1,705 | |||||||||
Total | 43,009 | 19,273 | 14,923 | |||||||||
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Issued by central banks | 378 | 208 | 623 | |||||||||
Spanish government bonds | 6,453 | 5,043 | 3,345 | |||||||||
Foreign government bonds | 13,947 | 22,709 | 16,971 | |||||||||
Issued by Spanish financial institutions | 578 | 1,436 | 1,572 | |||||||||
Issued by foreign financial institutions | 2,247 | 4,584 | 4,780 | |||||||||
Other fixed debt securities | 2,953 | 4,412 | 3,135 | |||||||||
Total | 26,556 | 38,392 | 30,426 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Shares of Spanish companies | 2,332 | 2,996 | 5,498 | |||||||||
Credit institutions | 444 | 237 | 672 | |||||||||
Other | 1,888 | 2,759 | 4,826 | |||||||||
Shares of foreign companies | 3,465 | 6,184 | 4,451 | |||||||||
Credit institutions | 205 | 602 | 526 | |||||||||
Other | 3,260 | 5,582 | 3,925 | |||||||||
Total | 5,797 | 9,180 | 9,949 |
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Interest | Equity | |||||||||||||||||||||||||||
Currency | Rate | Price | Commodities | Credit | Other | |||||||||||||||||||||||
2008 | Risk | Risk | Risk | Risk | Risk | Risks | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Organised markets | — | 5 | (228 | ) | — | 2 | — | (221 | ) | |||||||||||||||||||
Financial futures | — | — | 4 | — | — | — | 4 | |||||||||||||||||||||
Options | — | 5 | (232 | ) | — | 2 | — | (225 | ) | |||||||||||||||||||
Other products | — | — | — | — | — | — | — | |||||||||||||||||||||
OTC markets | (1,491 | ) | 1,288 | 674 | 92 | 296 | — | 859 | ||||||||||||||||||||
Credit institutions | (1,676 | ) | (1,652 | ) | (165 | ) | 15 | (196 | ) | — | (3,674 | ) | ||||||||||||||||
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 financial Institutions | (112 | ) | 1,335 | (151 | ) | 27 | 582 | — | 1,681 | |||||||||||||||||||
Forward transactions | (110 | ) | — | — | — | — | — | (110 | ) | |||||||||||||||||||
Future rate agreements (FRAs) | — | — | — | — | — | — | — | |||||||||||||||||||||
Swaps | — | 1,278 | 24 | 12 | 582 | — | 1,896 | |||||||||||||||||||||
Options | (2 | ) | 57 | (175 | ) | 15 | — | — | (105 | ) | ||||||||||||||||||
Other sectors | 297 | 1,605 | 990 | 50 | (90 | ) | — | 2,852 | ||||||||||||||||||||
Forward transactions | 378 | — | — | — | — | — | 378 | |||||||||||||||||||||
Future rate agreements (FRAs) | — | — | — | — | — | — | — | |||||||||||||||||||||
Swaps | 10 | 1,482 | 49 | 62 | (90 | ) | — | 1,513 | ||||||||||||||||||||
Options | (91 | ) | 119 | 962 | (12 | ) | — | — | 978 | |||||||||||||||||||
Other products | — | 4 | (21 | ) | — | — | — | (17 | ) | |||||||||||||||||||
Total | (1,491 | ) | 1,288 | 446 | 92 | 296 | — | 638 | ||||||||||||||||||||
of which: Asset Trading Derivatives | 10,940 | 22,574 | 5,081 | 174 | 2,174 | 2 | 40,945 | |||||||||||||||||||||
of which: Liability Trading Derivatives | (12,431 | ) | (21,281 | ) | (4,636 | ) | (81 | ) | (1,878 | ) | (2 | ) | (40,309 | ) | ||||||||||||||
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Interest | Equity | |||||||||||||||||||||||||||
Currency | Rate | Price | Commodities | Credit | Other | |||||||||||||||||||||||
2007 | Risk | Risk | Risk | Risk | Risk | Risks | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Organised markets | (1 | ) | 1 | 214 | 1 | — | — | 215 | ||||||||||||||||||||
Financial futures | — | — | 2 | — | — | — | 2 | |||||||||||||||||||||
Options | (1 | ) | — | 212 | 1 | — | — | 212 | ||||||||||||||||||||
Other products | — | 1 | — | — | — | — | 1 | |||||||||||||||||||||
OTC markets | (1,762 | ) | 764 | (2,063 | ) | 2 | 50 | 18 | (2,997 | ) | ||||||||||||||||||
Credit institutions | (1,672 | ) | (417 | ) | (1,140 | ) | 2 | 115 | 15 | (3,103 | ) | |||||||||||||||||
Forward transactions | (1,379 | ) | — | — | — | — | — | (1,379 | ) | |||||||||||||||||||
Future rate agreements (FRAs) | — | 70 | — | — | — | — | 70 | |||||||||||||||||||||
Swaps | (343 | ) | (328 | ) | (287 | ) | 2 | — | — | (956 | ) | |||||||||||||||||
Options | 50 | (149 | ) | (853 | ) | — | — | 9 | (943 | ) | ||||||||||||||||||
Other products | — | (10 | ) | — | — | 115 | — | 105 | ||||||||||||||||||||
Other financial Institutions | (160 | ) | 1,716 | (840 | ) | — | 91 | — | 807 | |||||||||||||||||||
Forward transactions | (161 | ) | — | (2 | ) | — | — | — | (163 | ) | ||||||||||||||||||
Future rate agreements (FRAs) | — | — | — | — | — | — | — | |||||||||||||||||||||
Swaps | — | 1,695 | 22 | — | — | — | 1,717 | |||||||||||||||||||||
Options | 1 | 21 | (860 | ) | — | — | — | (838 | ) | |||||||||||||||||||
Other products | — | — | — | — | 91 | — | 91 | |||||||||||||||||||||
Other sectors | 70 | (535 | ) | (83 | ) | — | (156 | ) | 3 | (701 | ) | |||||||||||||||||
Forward transactions | 27 | — | (1 | ) | — | — | — | 26 | ||||||||||||||||||||
Future rate agreements (FRAs) | — | — | — | — | — | — | — | |||||||||||||||||||||
Swaps | (1 | ) | (646 | ) | (251 | ) | — | — | — | (898 | ) | |||||||||||||||||
Options | 44 | 111 | 169 | — | — | 3 | 327 | |||||||||||||||||||||
Other products | — | — | — | — | (156 | ) | — | (156 | ) | |||||||||||||||||||
Total | (1,763 | ) | 765 | (1,849 | ) | 3 | 50 | 18 | (2,782 | ) | ||||||||||||||||||
of which: Asset Trading Derivatives | 2,038 | 9,866 | 2,497 | 21 | 307 | 35 | 14,764 | |||||||||||||||||||||
of which: Liability Trading Derivatives | (3,800 | ) | (9,101 | ) | (4,345 | ) | (18 | ) | (258 | ) | (23 | ) | (17,540 | ) | ||||||||||||||
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Interest | Equity | |||||||||||||||||||||||||||
Currency | Rate | Price | Commodities | Credit | Other | |||||||||||||||||||||||
2006 | Risk | Risk | Risk | Risk | Risk | Risks | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Organised markets | (747 | ) | — | 270 | 2 | — | 1 | (474 | ) | |||||||||||||||||||
Financial futures | 13 | — | 1 | — | — | — | 14 | |||||||||||||||||||||
Options | (760 | ) | — | 269 | 2 | — | 1 | (488 | ) | |||||||||||||||||||
Other products | — | — | — | — | — | — | — | |||||||||||||||||||||
OTC markets | (240 | ) | 587 | (1,654 | ) | 5 | (4 | ) | (22 | ) | (1,328 | ) | ||||||||||||||||
Credit institutions | (267 | ) | (297 | ) | (637 | ) | 1 | (9 | ) | (22 | ) | (1,231 | ) | |||||||||||||||
Forward transactions | 8 | — | — | 1 | — | — | 9 | |||||||||||||||||||||
Future rate agreements (FRAs) | — | 44 | — | — | — | — | 44 | |||||||||||||||||||||
Swaps | (269 | ) | (177 | ) | (24 | ) | — | — | — | (470 | ) | |||||||||||||||||
Options | (6 | ) | (164 | ) | (613 | ) | — | (9 | ) | (22 | ) | (814 | ) | |||||||||||||||
Other products | — | — | — | — | — | — | — | |||||||||||||||||||||
Other financial Institutions | (5 | ) | 953 | (570 | ) | — | 3 | — | 381 | |||||||||||||||||||
Forward transactions | (3 | ) | — | — | — | — | — | (3 | ) | |||||||||||||||||||
Future rate agreements (FRAs) | — | — | — | — | — | — | — | |||||||||||||||||||||
Swaps | — | 1,045 | 7 | — | — | — | 1,052 | |||||||||||||||||||||
Options | (2 | ) | (92 | ) | (577 | ) | — | 3 | — | (668 | ) | |||||||||||||||||
Other products | — | — | — | — | — | — | — | |||||||||||||||||||||
Other sectors | 32 | (69 | ) | (447 | ) | 4 | 2 | — | (478 | ) | ||||||||||||||||||
Forward transactions | 2 | — | — | — | — | — | 2 | |||||||||||||||||||||
Future rate agreements (FRAs) | — | — | — | — | — | — | — | |||||||||||||||||||||
Swaps | — | (346 | ) | (396 | ) | 4 | — | — | (738 | ) | ||||||||||||||||||
Options | 30 | 277 | (51 | ) | — | 2 | — | 258 | ||||||||||||||||||||
Other products | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | (987 | ) | 587 | (1,384 | ) | 7 | (4 | ) | (21 | ) | (1,802 | ) | ||||||||||||||||
of which: Asset Trading Derivatives | 469 | 8,518 | 2,262 | 35 | 81 | 51 | 11,416 | |||||||||||||||||||||
of which: Liability Trading Derivatives | (1,456 | ) | (7,931 | ) | (3,646 | ) | (28 | ) | (85 | ) | (72 | ) | (13,218 | ) | ||||||||||||||
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11. | OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Assets | ||||||||||||
Debt securities | 516 | 421 | 56 | |||||||||
Unit-Linked products | 516 | 421 | 56 | |||||||||
Equity instruments | 1,238 | 746 | 921 | |||||||||
Unit-Linked products | 921 | 329 | 472 | |||||||||
Other securities | 317 | 417 | 449 | |||||||||
Total | 1,754 | 1,167 | 977 | |||||||||
Liabilities | ||||||||||||
Other financial liabilities | 1,033 | 449 | 582 | |||||||||
Unit-Linked products | 1,033 | 449 | 582 | |||||||||
Total | 1,033 | 449 | 582 | |||||||||
12. | AVAILABLE-FOR-SALE FINANCIAL ASSETS |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Debt securities | 39,831 | 37,336 | 32,218 | |||||||||
Other equity instruments | 7,949 | 11,096 | 10,037 | |||||||||
Total | 47,780 | 48,432 | 42,255 | |||||||||
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Unrealized | Unrealized | Fair | ||||||||||
2008 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Domestic | 229 | (62 | ) | 11,910 | ||||||||
Spanish Government and other Spanish Government securities | 138 | — | 6,371 | |||||||||
Other debt securities | 91 | (62 | ) | 5,539 | ||||||||
International — | 586 | (774 | ) | 27,920 | ||||||||
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 securities | 140 | (285 | ) | 9,602 | ||||||||
Other Countries | 431 | (488 | ) | 17,478 | ||||||||
Securities of other foreign Governments | 261 | (232 | ) | 9,653 | ||||||||
Other debt securities | 170 | (256 | ) | 7,825 | ||||||||
Total net | 815 | (836 | ) | 39,830 | ||||||||
Unrealized | Unrealized | Fair | ||||||||||
2007 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Domestic | 150 | (77 | ) | 10,161 | ||||||||
Spanish Government and other Spanish Government securities | 79 | (31 | ) | 5,274 | ||||||||
Other debt securities | 71 | (46 | ) | 4,887 | ||||||||
International — | 737 | (287 | ) | 27,175 | ||||||||
United States - | 50 | (45 | ) | 9,056 | ||||||||
Government securities | 6 | (2 | ) | 579 | ||||||||
US Treasury and other US Government agencies | 1 | — | 61 | |||||||||
States and political subdivisions | 5 | (2 | ) | 518 | ||||||||
Other securities | 44 | (43 | ) | 8,477 | ||||||||
Other Countries | 687 | (242 | ) | 18,119 | ||||||||
Securities of other foreign Governments | 562 | (128 | ) | 11,278 | ||||||||
Other debt securities | 125 | (114 | ) | 6,841 | ||||||||
Total net | 887 | (364 | ) | 37,336 | ||||||||
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Unrealized | Unrealized | Fair | ||||||||||
2006 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Domestic | 291 | (18 | ) | 9,494 | ||||||||
Spanish Government and other Spanish Government securities | 279 | (16 | ) | 6,859 | ||||||||
Other debt securities | 12 | (2 | ) | 2,635 | ||||||||
International — | 852 | (130 | ) | 22,724 | ||||||||
United States - | 13 | (21 | ) | 5,506 | ||||||||
Government securities | 3 | (2 | ) | 653 | ||||||||
US Treasury and other US Government agencies | 3 | (2 | ) | 343 | ||||||||
States and political subdivisions | — | — | 310 | |||||||||
Other securities | 10 | (19 | ) | 4,853 | ||||||||
Other Countries | 839 | (109 | ) | 17,218 | ||||||||
Securities of other foreign Governments | 588 | (60 | ) | 10,386 | ||||||||
Other debt securities | 251 | (49 | ) | 6,832 | ||||||||
Total net | 1,143 | (148 | ) | 32,218 | ||||||||
Unrealized | Unrealized | Fair | ||||||||||
2008 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Other equity instruments listed | 1,190 | (236 | ) | 7,082 | ||||||||
Shares of Spanish companies | 1,189 | (95 | ) | 4,639 | ||||||||
Credit institutions | — | (9 | ) | 22 | ||||||||
Other entities | 1,189 | (86 | ) | 4,617 | ||||||||
Shares of foreign companies listed | 1 | (141 | ) | 2,443 | ||||||||
United States | — | (11 | ) | 28 | ||||||||
Other countries | 1 | (130 | ) | 2,416 | ||||||||
Other equity instruments unlisted | 7 | (1 | ) | 867 | ||||||||
Shares of Spanish companies | — | (1 | ) | 36 | ||||||||
Credit institutions | — | — | 1 | |||||||||
Other entities | — | (1 | ) | 35 | ||||||||
Shares of foreign companies unlisted | 7 | — | 831 | |||||||||
United States | — | — | 626 | |||||||||
Other countries | 7 | — | 205 | |||||||||
TOTAL | 1,197 | (237 | ) | 7,949 | ||||||||
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Unrealized | Unrealized | Fair | ||||||||||
2007 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Other equity instruments listed | 4,449 | (24 | ) | 10,797 | ||||||||
Shares of Spanish companies | 3,322 | — | 7,032 | |||||||||
Credit institutions | 4 | — | 35 | |||||||||
Other entities | 3,318 | — | 6,997 | |||||||||
Shares of foreign companies listed | 1,127 | (24 | ) | 3,765 | ||||||||
United States | — | (1 | ) | 419 | ||||||||
Other countries | 1,127 | (23 | ) | 3,346 | ||||||||
Other equity instruments unlisted | 52 | (5 | ) | 299 | ||||||||
Shares of Spanish companies | 64 | (5 | ) | 132 | ||||||||
Credit institutions | — | — | 2 | |||||||||
Other entities | 64 | (5 | ) | 130 | ||||||||
Shares of foreign companies unlisted | (12 | ) | — | 167 | ||||||||
United States | — | — | 70 | |||||||||
Other countries | (12 | ) | — | 97 | ||||||||
TOTAL | 4,501 | (29 | ) | 11,096 | ||||||||
Unrealized | Unrealized | Fair | ||||||||||
2006 | Gains | Losses | Value | |||||||||
Millions of euros | ||||||||||||
Other equity instruments listed | 3,628 | (15 | ) | 9,867 | ||||||||
Shares of Spanish companies | 2,817 | — | 7,342 | |||||||||
Shares of foreign companies listed | 811 | (15 | ) | 2,525 | ||||||||
United States | 1 | — | 28 | |||||||||
Other countries | 810 | (15 | ) | 2,497 | ||||||||
Other equity instruments unlisted | — | — | 170 | |||||||||
Shares of Spanish companies | — | — | 39 | |||||||||
Shares of foreign companies unlisted | — | — | 131 | |||||||||
United States | — | �� | 26 | |||||||||
Other countries | — | — | 105 | |||||||||
TOTAL | 3,628 | (15 | ) | 10,037 | ||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Acumulated gains/losses | 931 | 3,546 | 3,323 |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 3,546 | 3,323 | 3,002 | |||||||||
Measurement gains and losses | (2,065 | ) | 1,857 | 1,264 | ||||||||
Income tax | 1,172 | (97 | ) | 178 | ||||||||
Amounts transfers to income(*) | (1,722 | ) | (1,537 | ) | (1,121 | ) | ||||||
Balance at end of year | 931 | 3,546 | 3,323 | |||||||||
Of which: | ||||||||||||
Equity instruments | 1,047 | 3,215 | 2,620 | |||||||||
Debt securities | (116 | ) | 331 | 703 | ||||||||
(*) | Registered in the heading “Gains and losses on financial instruments (net)” of the consolidated income statement (Note 42) |
13. | LOANS AND RECEIVABLES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Loans and advances to credit institutions | 33,856 | 24,527 | 21,264 | |||||||||
Loans and advances to customers | 335,260 | 313,178 | 258,317 | |||||||||
Debt securities | 378 | 60 | 77 | |||||||||
Total | 369,494 | 337,765 | 279,658 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Reciprocal accounts | 390 | 138 | 131 | |||||||||
Deposits with agreed maturity | 8,005 | 9,388 | 9,469 | |||||||||
Demand deposits | 6,433 | 834 | 439 | |||||||||
Other accounts | 9,250 | 4,610 | 5,675 | |||||||||
Reverse repurchase agreements | 9,601 | 9,422 | 5,490 | |||||||||
Total gross | 33,679 | 24,392 | 21,204 | |||||||||
Valuation adjustments | 177 | 135 | 60 | |||||||||
Impairment losses | (74 | ) | (10 | ) | (6 | ) | ||||||
Accrued interest and fees | 223 | 107 | 63 | |||||||||
Hedging derivatives and others | 28 | 38 | 3 | |||||||||
Total | 33,856 | 24,527 | 21,264 | |||||||||
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Financial paper | 587 | 387 | 9 | |||||||||
Commercial credit | 29,215 | 36,108 | 22,453 | |||||||||
Secured loans | 145,522 | 135,557 | 116,737 | |||||||||
Credit accounts | 21,593 | 23,835 | 21,700 | |||||||||
Other loans | 111,597 | 94,695 | 78,990 | |||||||||
Reverse repurchase agreements | 1,658 | 2,000 | 1,526 | |||||||||
Receivable on demand and other | 13,372 | 14,582 | 12,182 | |||||||||
Finance leases | 9,341 | 9,149 | 8,053 | |||||||||
Impaired assets | 8,437 | 3,358 | 2,492 | |||||||||
Total gross | 341,322 | 319,671 | 264,142 | |||||||||
Valuation adjustments | (6,062 | ) | (6,493 | ) | (5,825 | ) | ||||||
Impairment losses | (7,431 | ) | (7,138 | ) | (6,420 | ) | ||||||
Accrued interests and fees | 719 | 549 | 341 | |||||||||
Hedging derivatives and others | 650 | 96 | 254 | |||||||||
Total | 335,260 | 313,178 | 258,317 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Movable property | 6,114 | 5,982 | 4,700 | |||||||||
Inmovable property | 3,271 | 3,166 | 3,353 | |||||||||
Fixed rate | 33 | % | 28 | % | 10 | % | ||||||
Variable rate | 67 | % | 72 | % | 90 | % |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Securitised mortgage assets | 34,012 | 17,214 | 2,320 | |||||||||
Other securitised assets | 10,341 | 11,007 | 6,736 | |||||||||
Commercial and industrial loans | 2,634 | 3,097 | 1,975 | |||||||||
Leasing | 2,238 | 2,361 | — | |||||||||
Loans to individuals | 5,124 | 5,154 | 4,741 | |||||||||
Other | 345 | 395 | 20 | |||||||||
Total | 44,353 | 28,221 | 9,056 | |||||||||
Of which: | ||||||||||||
Liabilities associated to assets retained on the balance sheet(*) | 14,948 | 19,249 | 8,807 | |||||||||
(*) | These liabilities are recognized under “Financial liabilities at amortized cost — Debt certificates” in the accompanying consolidated balance sheets. (Note 22.4). |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Securitised mortgage assets | 132 | 173 | 209 | |||||||||
Other securitised assets | 413 | 585 | 849 | |||||||||
Total | 545 | 758 | 1,058 | |||||||||
14. | HELD-TO-MATURITY INVESTMENTS |
Amortised | Unrealized | Unrealized | Fair | |||||||||||||
2008 | Cost | Gains | Losses | Value | ||||||||||||
Millions of euros | ||||||||||||||||
Domestic | 2,392 | 7 | (60 | ) | 2,339 | |||||||||||
Spanish Governments and other Spanish | ||||||||||||||||
Governments securities | 1,412 | 7 | (7 | ) | 1,412 | |||||||||||
Other debt securities | 980 | — | (53 | ) | 927 | |||||||||||
International | 2,890 | 25 | (33 | ) | 2,882 | |||||||||||
Securities of other foreign Governments | 2,432 | 22 | (17 | ) | 2,437 | |||||||||||
Other debt securities | 458 | 3 | (16 | ) | 445 | |||||||||||
Total | 5,282 | 32 | (93 | ) | 5,221 | |||||||||||
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Amortised | Unrealized | Unrealized | Fair | |||||||||||||
2007 | Cost | Gains | Losses | Value | ||||||||||||
Millions of euros | ||||||||||||||||
Domestic | 2,402 | — | (131 | ) | 2,271 | |||||||||||
Spanish Governments and other Spanish | ||||||||||||||||
Governments securities | 1,417 | — | (68 | ) | 1,349 | |||||||||||
Other debt securities | 985 | — | (63 | ) | 922 | |||||||||||
International | 3,182 | — | (119 | ) | 3,063 | |||||||||||
Total | 5,584 | — | (250 | ) | 5,334 | |||||||||||
Amortised | Unrealized | Unrealized | Fair | |||||||||||||
2006 | Cost | Gains | Losses | Value | ||||||||||||
Millions of euros | ||||||||||||||||
Domestic | 2,404 | 2 | (69 | ) | 2,337 | |||||||||||
Spanish Governments and other Spanish | ||||||||||||||||
Governments securities | 1,417 | 1 | (40 | ) | 1,378 | |||||||||||
Other debt securities | 987 | 1 | (29 | ) | 959 | |||||||||||
International | 3,502 | 5 | (86 | ) | 3,421 | |||||||||||
Total | 5,906 | 7 | (155 | ) | 5,758 | |||||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 5,589 | 5,911 | 3,964 | |||||||||
Acquisitions | — | — | 2,211 | |||||||||
Redemptions | (284 | ) | (300 | ) | (274 | ) | ||||||
Other | (20 | ) | (22 | ) | 10 | |||||||
Balance at end of year | 5,285 | 5,589 | 5,911 | |||||||||
15. | HEDGING DERIVATIVES (RECEIVABLE AND PAYABLE) |
• | Available for sale fixed rate debt securities: this risk is hedged using interest-rate derivatives (fixed- variable swaps). | |
• | Long term fixed rate 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 rate loans: this risk is hedged using interest-rate derivatives (fixed- variable swaps). |
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Interest | ||||||||||||
Exchange | Rate | |||||||||||
2008 | Risk | Risk | Total | |||||||||
Millions of euros | ||||||||||||
Non organised markets | ||||||||||||
Credit institutions | 204 | 2,290 | 2,494 | |||||||||
Fair value hedge | — | 1,972 | 1,972 | |||||||||
Cash flow hedge | 104 | 338 | 443 | |||||||||
Net investment in a foreign operation hedge | 99 | (20 | ) | 79 | ||||||||
Other financial institutions | — | 100 | 100 | |||||||||
Fair value hedge | — | 68 | 68 | |||||||||
Cash flow hedge | — | 32 | 32 | |||||||||
Other sectors | 11 | 1 | 13 | |||||||||
Fair value hedge | — | 1 | 1 | |||||||||
Cash flow hedge | 11 | — | 11 | |||||||||
Total | 215 | 2,391 | 2,606 | |||||||||
of which: Asset Hedging Derivatives | 227 | 3,606 | 3,833 | |||||||||
of which: Liability hedging Derivatives | (11 | ) | (1,215 | ) | (1,226 | ) | ||||||
Interest | Equity | |||||||||||||||
Exchange | Rate | Price | ||||||||||||||
2007 | Risk | Risk | Risk | Total | ||||||||||||
Millions of euros | ||||||||||||||||
Organised Markets | ||||||||||||||||
Fair value hedge | (1 | ) | — | — | (1 | ) | ||||||||||
Non organised markets | ||||||||||||||||
Credit institutions | 18 | (719 | ) | (72 | ) | (773 | ) | |||||||||
Fair value hedge | — | (693 | ) | (72 | ) | (765 | ) | |||||||||
Cash flow hedge | — | (26 | ) | — | (26 | ) | ||||||||||
Net investment in a foreign operation hedge | 18 | — | — | 18 | ||||||||||||
Other financial institutions | 8 | 144 | (135 | ) | 17 | |||||||||||
Fair value hedge | — | 100 | (135 | ) | (35 | ) | ||||||||||
Cash flow hedge | — | 44 | — | 44 | ||||||||||||
Net investment in a foreign operation hedge | 8 | — | — | 8 | ||||||||||||
Total | 25 | (575 | ) | (207 | ) | (757 | ) | |||||||||
of which: Asset Hedging Derivatives | 35 | 1,015 | — | 1,050 | ||||||||||||
of which: Liability hedging Derivatives | (10 | ) | (1,590 | ) | (207 | ) | (1,807 | ) | ||||||||
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Interest | Equity | |||||||||||
Rate | Price | |||||||||||
2006 | Risk | Risk | Total | |||||||||
Millions of euros | ||||||||||||
Non organised markets Credit institutions | (382 | ) | (116 | ) | (498 | ) | ||||||
Fair value hedge | (404 | ) | (116 | ) | (520 | ) | ||||||
Cash flow hedge | 22 | — | 22 | |||||||||
Other financial institutions | 178 | (3 | ) | 175 | ||||||||
Fair value hedge | 126 | (3 | ) | 123 | ||||||||
Cash flow hedge | 52 | — | 52 | |||||||||
Other sectors | 9 | (3 | ) | 6 | ||||||||
Fair value hedge | 9 | (3 | ) | 6 | ||||||||
Total | (195 | ) | (122 | ) | (317 | ) | ||||||
of which: Asset Hedging Derivatives | 1,915 | 48 | 1,963 | |||||||||
of which: Liability hedging Derivatives | (2,110 | ) | (170 | ) | (2,280 | ) | ||||||
More Than | ||||||||||||||||
3 Months | ||||||||||||||||
3 Months | but Less | From 1 to | More Than | |||||||||||||
or Less | Than 1 Year | 5 Years | 5 Years | |||||||||||||
Millions of Euros | ||||||||||||||||
Cash inflows from assets | 174 | 399 | 330 | 148 | ||||||||||||
Cash outflows from liabilities | 75 | 217 | 313 | 205 |
16. | NON-CURRENT ASSETS HELD FOR SALE AND LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Revalued cost — | ||||||||||||
Balance at beginning of year | 306 | 268 | 401 | |||||||||
Additions | 515 | 487 | 279 | |||||||||
Retirements | (374 | ) | (744 | ) | (370 | ) | ||||||
Acquisition of subsidiaries in the year | — | 15 | 17 | |||||||||
Transfers | 57 | 265 | 13 | |||||||||
Exchange difference and other | 2 | 15 | (72 | ) | ||||||||
Balance at end of year | 506 | 306 | 268 | |||||||||
Impairment — | ||||||||||||
Balance at beginning of year | 66 | 82 | 170 | |||||||||
Additions | 38 | 38 | 61 | |||||||||
Retirements | (22 | ) | (43 | ) | (105 | ) | ||||||
Transfers | 25 | 8 | 6 | |||||||||
Exchange difference and other | (45 | ) | (19 | ) | (50 | ) | ||||||
Balance at end of year | 62 | 66 | 82 | |||||||||
Balance total at end of year | 444 | 240 | 186 | |||||||||
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17. | INVESTMENTS IN ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD |
Investments in Associates | 2008 | 2007 | 2006 | |||||||||
Millions of euros | ||||||||||||
Citic International Financial Holdings Limited CIFH | 541 | 432 | — | |||||||||
Occidental Hoteles Management, S.L.(*) | 128 | 131 | — | |||||||||
Tubos Reunidos, S.A. | 54 | 85 | 69 | |||||||||
BBVA Elcano Empresarial II, S.C.R., S.A. | 39 | 57 | 31 | |||||||||
BBVA Elcano Empresarial, S.C.R., S.A. | 39 | 57 | 31 | |||||||||
Rest of companies | 93 | 84 | 75 | |||||||||
Total | 894 | 846 | 206 | |||||||||
(*) | Former Metropolitan Participaciones, S.L. |
2008 | 2007 | 2006 | ||||||||||
Millons of euros | ||||||||||||
Balance at beginning of year | 846 | 206 | 946 | |||||||||
Acquisitions: | 655 | 626 | 28 | |||||||||
Of which: | ||||||||||||
Citic International Financial Holdings Limited (CIFH) | 655 | 432 | — | |||||||||
Occidental Hoteles Management, S.L. | — | 131 | — | |||||||||
Disposals | (782 | ) | — | (802 | ) | |||||||
Of which: | ||||||||||||
Tubos Reunidos, S.A.(*) | (41 | ) | — | — | ||||||||
Transfers and others | (739 | ) | — | — | ||||||||
Of which: | 175 | 14 | 34 | |||||||||
Balance at end of year | 894 | 846 | 206 | |||||||||
Of which: | ||||||||||||
Goodwill | 217 | 119 | 4 | |||||||||
CIFH | 214 | 115 | — | |||||||||
Other | 3 | 4 | 4 |
(*) | Corresponds to the sale of the 0.853% of the capital stock in January 2008 (see appendix VI). |
2008 | 2007 | |||||||||||||||
Book | Fair | Book | Fair | |||||||||||||
Company | Value | Value | Value | Value | ||||||||||||
Millions of euros | ||||||||||||||||
Tubos Reunidos, S.A. | 54 | 85 | 85 | 241 | ||||||||||||
Citic International Financial Holdings Limited(*) | — | — | 432 | 355 |
(*) | Delisted from the Hong Kong stock exchange in November 2008. |
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Jointly Controlled Entities | 2008 | 2007 | 2006 | |||||||||
Millions of euros | ||||||||||||
Corporación IBV Participaciones Empresariales S.A. | 385 | 574 | 565 | |||||||||
Fideicomiso F/403853-5 BBVA Bancomer SoS ZIBAT | 20 | — | — | |||||||||
Las Pedrazas Golf, S.L. | 16 | — | — | |||||||||
Dintransa Rentrucks, S.A. | 15 | — | — | |||||||||
Rest | 137 | 122 | 118 | |||||||||
Total | 573 | 696 | 683 | |||||||||
Of which | ||||||||||||
Goodwill | ||||||||||||
Grupo Profesional Planeación y Proyectos S.A. de C.V. | 4 | 4 | 5 | |||||||||
Dintransa Rentrucks, S.A. | 8 | — | — | |||||||||
Rest | 4 | 2 | — | |||||||||
16 | 6 | 5 | ||||||||||
Increase | 2008 | 2007 | 2006 | |||||||||
Millions of euros | ||||||||||||
Group’s Asset | 910 | 1,009 | 1,017 | |||||||||
Net interest income | 139 | 122 | 88 | |||||||||
Gross Income | 17 | 40 | 297 |
17.3. | INFORMATION ABOUT ASSOCIATES AND JOINTLY CONTROLLED ENTITIES BY THE PROPORTIONATE CONSOLIDATION METHOD |
2008 | 2007 | 2006 | ||||||||||||||||||||||
Jointly | Jointly | Jointly | ||||||||||||||||||||||
Controlled | Controlled | Controlled | ||||||||||||||||||||||
Items (*) | Associates | Entities | Associates | Entities | Associates | Entities | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Current Assets | 745 | 559 | 423 | 680 | 125 | 655 | ||||||||||||||||||
Non-current Assets | 4,162 | 349 | 2,116 | 329 | 109 | 324 | ||||||||||||||||||
Current Liabilities | 230 | 136 | 385 | 199 | 47 | 191 | ||||||||||||||||||
Non-current Liabilities | 4,677 | 772 | 2,154 | 810 | 187 | 788 | ||||||||||||||||||
Net sales | 210 | 102 | 181 | 109 | 131 | 145 | ||||||||||||||||||
Operating Income | 99 | 17 | 64 | 40 | 21 | 297 | ||||||||||||||||||
Net Income | 93 | 286 | 29 | 221 | 13 | 269 | ||||||||||||||||||
(*) | Non audited information |
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18. | REINSURANCE ASSETS |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Reinsurance asset | 29 | 43 | 32 |
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19. | TANGIBLE ASSETS |
Assets | ||||||||||||||||||||||||||||
Property, Plants and Equipment | Total | Leased Out | ||||||||||||||||||||||||||
Furniture, | Tangible | Under an | ||||||||||||||||||||||||||
Land and | Work in | Fixtures | Asset of | Investment | Operating | |||||||||||||||||||||||
2008 | Buildings | progress | and Vehicles | Own Use | Properties | Lease | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Revalued cost — | ||||||||||||||||||||||||||||
Balance at 1 January 2008 | 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 31 December 2008 | 3,030 | 422 | 4,866 | 8,318 | 1,786 | 996 | 11,100 | |||||||||||||||||||||
Accumulated depreciation — Balance at 1 January 2008 | (725 | ) | — | (3,402 | ) | (4,127 | ) | (14 | ) | (245 | ) | (4,386 | ) | |||||||||||||||
Additions | (77 | ) | — | (356 | ) | (433 | ) | (1 | ) | (18 | ) | (452 | ) | |||||||||||||||
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 | — | — | 165 | |||||||||||||||||||||
Balance at 31 December 2008 | (729 | ) | — | (3,128 | ) | (3,857 | ) | (45 | ) | (259 | ) | (4,161 | ) | |||||||||||||||
Impairment — Balance at 1 January 2008 | (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 31 December 2008 | (16 | ) | — | (3 | ) | (19 | ) | (8 | ) | (5 | ) | (32 | ) | |||||||||||||||
Net tangible assets — Balance at 1 January 2008 | 2,669 | 151 | 1,617 | 4,437 | 82 | 719 | 5,238 | |||||||||||||||||||||
Balance at 31 December 2008 | 2,285 | 422 | 1,735 | 4,442 | 1,734 | 732 | 6,908 | |||||||||||||||||||||
(*) | The balance under “Investment properties” has increased mainly due to the incorporation of the assets of Fondo Inmobiliario BBVA Propiedad (see Appendix II) which is fully consolidated following the acquisition by the Group in 2008 of a 95.65% stake. |
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Assets | ||||||||||||||||||||||||||||
Property, Plants and Equipment | Total | Leased | ||||||||||||||||||||||||||
Furniture, | Tangible | Out Under | ||||||||||||||||||||||||||
Land and | Work in | Fixtures and | Assets of | Investment | an Operating | |||||||||||||||||||||||
2007 | Buildings | Progress | Vehicles | Own Use | Properties | Lease | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Revalued cost — | ||||||||||||||||||||||||||||
Balance at 1 January 2007 | 3,088 | 24 | 4,974 | 8,086 | 76 | 881 | 9,043 | |||||||||||||||||||||
Additions | 501 | 138 | 577 | 1,216 | 38 | 213 | 1,467 | |||||||||||||||||||||
Retirements | (116 | ) | (29 | ) | (165 | ) | (310 | ) | (2 | ) | (16 | ) | (328 | ) | ||||||||||||||
Acquisition of subsidiaries in the year | 388 | 32 | 65 | 485 | — | 57 | 542 | |||||||||||||||||||||
Disposal of entities in the year | — | — | (19 | ) | (19 | ) | (16 | ) | (160 | ) | (195 | ) | ||||||||||||||||
Transfers | (272 | ) | (8 | ) | (174 | ) | (454 | ) | 1 | — | (453 | ) | ||||||||||||||||
Exchange difference and other | (174 | ) | (6 | ) | (234 | ) | (414 | ) | (1 | ) | (9 | ) | (424 | ) | ||||||||||||||
Balance at 31 December 2007 | 3,415 | 151 | 5,024 | 8,590 | 96 | 966 | 9,652 | |||||||||||||||||||||
Accumulated depreciation — | ||||||||||||||||||||||||||||
Balance at 1 January 2007 | (798 | ) | — | (3,445 | ) | (4,243 | ) | (14 | ) | (231 | ) | (4,488 | ) | |||||||||||||||
Additions | (54 | ) | — | (340 | ) | (394 | ) | (3 | ) | (79 | ) | (476 | ) | |||||||||||||||
Retirements | 6 | — | 114 | 120 | — | 77 | 197 | |||||||||||||||||||||
Acquisition of subsidiaries in the year | (8 | ) | — | (4 | ) | (12 | ) | — | (21 | ) | (33 | ) | ||||||||||||||||
Disposal of entities in the year | — | — | 24 | 24 | — | — | 24 | |||||||||||||||||||||
Transfers | 65 | — | 81 | 146 | — | — | 146 | |||||||||||||||||||||
Exchange difference and other | 64 | — | 168 | 232 | 4 | 9 | 245 | |||||||||||||||||||||
Balance at 31 December 2007 | (725 | ) | — | (3,402 | ) | (4,127 | ) | (13 | ) | (245 | ) | (4,385 | ) | |||||||||||||||
Impairment — | ||||||||||||||||||||||||||||
Balance at 1 January 2007 | (27 | ) | — | — | (27 | ) | (1 | ) | — | (28 | ) | |||||||||||||||||
Additions | (6 | ) | — | (5 | ) | (11 | ) | — | — | (11 | ) | |||||||||||||||||
Retirements | 3 | 4 | — | 7 | — | — | 7 | |||||||||||||||||||||
Acquisition of subsidiaries in the year | — | — | — | — | — | (2 | ) | (2 | ) | |||||||||||||||||||
Exchange difference and other | 9 | (4 | ) | — | 5 | — | — | 5 | ||||||||||||||||||||
Balance at 31 December 2007 | (21 | ) | — | (5 | ) | (26 | ) | (1 | ) | (2 | ) | (29 | ) | |||||||||||||||
Net tangible assets - Balance at 1 January 2007 | 2,263 | 24 | 1,529 | 3,816 | 61 | 650 | 4,527 | |||||||||||||||||||||
Balance at 31 December 2007 | 2,669 | 151 | 1,617 | 4,437 | 82 | 719 | 5,238 | |||||||||||||||||||||
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Assets | ||||||||||||||||||||||||||||
Property, Plants and Equipment | Total | Leased | ||||||||||||||||||||||||||
Furniture, | Tangible | Out Under | ||||||||||||||||||||||||||
Land and | Work In | Fixtures and | Assets Of | Investment | an Operating | |||||||||||||||||||||||
2006 | Buildings | Progress | Vehicles | Own Use | Properties | Lease | Total | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Revalued cost — | ||||||||||||||||||||||||||||
Balance at 1 January 2006 | 3,153 | 19 | 4,976 | 8,148 | 93 | 630 | 8,871 | |||||||||||||||||||||
Additions | 58 | 32 | 436 | 526 | — | 304 | 830 | |||||||||||||||||||||
Retirements | (14 | ) | (15 | ) | (195 | ) | (224 | ) | (5 | ) | (187 | ) | (416 | ) | ||||||||||||||
Acquisition of subsidiaries in the year | 127 | 2 | 32 | 161 | — | 150 | 311 | |||||||||||||||||||||
Disposal of entities in the year | (47 | ) | — | (37 | ) | (84 | ) | — | — | (84 | ) | |||||||||||||||||
Transfers | (18 | ) | (7 | ) | 5 | (20 | ) | (1 | ) | — | (21 | ) | ||||||||||||||||
Exchange difference and other | (171 | ) | (7 | ) | (243 | ) | (421 | ) | (11 | ) | (16 | ) | (448 | ) | ||||||||||||||
Balance at 31 December 2006 | 3,088 | 24 | 4,974 | 8,086 | 76 | 881 | 9,043 | |||||||||||||||||||||
Accumulated depreciation — | ||||||||||||||||||||||||||||
Balance at 1 January 2006 | (796 | ) | — | (3,483 | ) | (4,279 | ) | (15 | ) | (164 | ) | (4,458 | ) | |||||||||||||||
Additions | (68 | ) | — | (266 | ) | (334 | ) | (1 | ) | (48 | ) | (383 | ) | |||||||||||||||
Retirements | 13 | — | 160 | 173 | 1 | 13 | 187 | |||||||||||||||||||||
Acquisition of subsidiaries in the year | — | — | (9 | ) | (9 | ) | — | (48 | ) | (57 | ) | |||||||||||||||||
Disposal of entities in the year | 3 | — | 35 | 38 | — | — | 38 | |||||||||||||||||||||
Transfers | 7 | — | 1 | 8 | — | — | 8 | |||||||||||||||||||||
Exchange difference and other | 43 | — | 117 | 160 | 1 | 16 | 177 | |||||||||||||||||||||
Balance at 31 December 2006 | (798 | ) | — | (3,445 | ) | (4,243 | ) | (14 | ) | (231 | ) | (4,488 | ) | |||||||||||||||
Impairment — | ||||||||||||||||||||||||||||
Balance at 1 January 2006 | (28 | ) | — | — | (28 | ) | (1 | ) | — | (29 | ) | |||||||||||||||||
Additions | (4 | ) | — | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||||
Retirements | 8 | — | — | 8 | — | — | 8 | |||||||||||||||||||||
Acquisition of subsidiaries in the year | — | — | — | — | — | — | — | |||||||||||||||||||||
Exchange difference and other | (3 | ) | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||||
Balance at 31 December 2006 | (27 | ) | — | — | (27 | ) | (1 | ) | — | (28 | ) | |||||||||||||||||
Net tangible assets - | ||||||||||||||||||||||||||||
Balance at 1 January 2006 | 2,329 | 19 | 1,493 | 3,841 | 77 | 466 | 4,384 | |||||||||||||||||||||
Balance at 31 December 2006 | 2,263 | 24 | 1,529 | 3,816 | 61 | 650 | 4,527 | |||||||||||||||||||||
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Number of Branches | ||||||||||||
Area | 2008 | 2007 | 2006 | |||||||||
Spain | 3,375 | 3,595 | 3,635 | |||||||||
United States | 4,267 | 4,291 | 3,742 | |||||||||
Rest of the world | 145 | 142 | 122 | |||||||||
Total | 7,787 | 8,028 | 7,499 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Foreign subsidiaries | 2,276 | 2,271 | 2,670 | |||||||||
BBVA, S.A. and Spanish subsidiaries | 4,633 | 2,967 | 1,857 | |||||||||
Total | 6,909 | 5,238 | 4,527 | |||||||||
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20. | INTANGIBLE ASSETS |
Balance at | ||||||||||||||||
beginning of | Exchange | Balance at | ||||||||||||||
2008 | year | Differences | Other (*) | end of Year | ||||||||||||
Millions of euros | ||||||||||||||||
BBVA USA Bancshares, Inc. | 6,265 | 366 | 12 | 6,643 | ||||||||||||
Grupo Financiero Bancomer, S.A. de C.V. | 485 | (79 | ) | — | 406 | |||||||||||
Hipotecaria Nacional S.A. C.V. | 213 | (35 | ) | — | 178 | |||||||||||
BBVA Colombia, S.A. | 204 | (11 | ) | — | 193 | |||||||||||
BBVA Inversiones Chile, S.A. | 87 | (16 | ) | — | 71 | |||||||||||
Maggiore Fleet, S.p.A. | 34 | — | — | 34 | ||||||||||||
BBVA Chile, S.A. | 34 | (6 | ) | — | 28 | |||||||||||
BBVA Puerto Rico, S. A | 31 | 2 | — | 33 | ||||||||||||
FORUM Servicios Financieros,S.A. | 28 | (3 | ) | — | 25 | |||||||||||
AFP Provida, S.A. | 21 | (3 | ) | — | 18 | |||||||||||
BBVA Portugal,S.A. | 16 | — | — | 16 | ||||||||||||
Finanzia, Banco de Crédito, S.A. | 5 | — | — | 5 | ||||||||||||
BBVA Finanzia S.p.A. | 4 | — | — | 4 | ||||||||||||
BBVA Bancomer USA | 4 | — | — | 4 | ||||||||||||
FORUM Distribuidora, S.A. | 2 | (1 | ) | — | 1 | |||||||||||
BBVA Renting S.p.A. | 3 | — | (3 | ) | — | |||||||||||
FULLY CONSOLIDATED COMPANIES | 7,436 | 214 | 9 | 7,659 | ||||||||||||
(*) | The goodwills of the four banks merged in 2008 are included (see Note 3) |
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Balance at | ||||||||||||||||||||
beginning of | Exchange | Balance at | ||||||||||||||||||
2007 | year | Additions | Other | Differences | end of year | |||||||||||||||
Millions of euros | ||||||||||||||||||||
BBVA USA Bancshares, Inc. | 1,679 | 5,171 | (558 | ) | (27 | ) | 6,266 | |||||||||||||
of which: | ||||||||||||||||||||
Laredo National Bank | 422 | — | (43 | ) | — | 379 | ||||||||||||||
Texas Regional Bank | 1,257 | — | (129 | ) | (27 | ) | 1,101 | |||||||||||||
State National Bank | — | 270 | (33 | ) | — | 237 | ||||||||||||||
Compass Bank | — | 4,901 | (353 | ) | — | 4,549 | ||||||||||||||
Grupo Financiero Bancomer, S.A. de C.V. | 544 | — | (59 | ) | — | 485 | ||||||||||||||
Hipotecaria Nacional S.A. C.V. | 239 | — | (26 | ) | — | 213 | ||||||||||||||
BBVA Colombia, S.A. | 213 | — | (1 | ) | (8 | ) | 204 | |||||||||||||
BBVA Pensiones Chile, S.A. | 90 | — | (3 | ) | — | 87 | ||||||||||||||
Maggiore Fleet, S.p.A. | 36 | — | — | (2 | ) | 34 | ||||||||||||||
BBVA Chile, S.A. | 35 | — | (1 | ) | — | 34 | ||||||||||||||
BBVA Puerto Rico, S.A. | 35 | — | (4 | ) | — | 31 | ||||||||||||||
FORUM Servicios Financieros,S.A. | 49 | — | (1 | ) | (20 | ) | 28 | |||||||||||||
AFP Provida, S.A. | 22 | — | (1 | ) | — | 21 | ||||||||||||||
BBVA Portugal,S.A. | 16 | — | — | — | 16 | |||||||||||||||
Finanzia, Banco de Crédito, S.A. | 5 | — | — | — | 5 | |||||||||||||||
BBVA Finanzia S.p.A. | 4 | — | — | — | 4 | |||||||||||||||
BBVA Bancomer USA | 4 | — | — | — | 4 | |||||||||||||||
BBVA Renting S.p.A. | — | 1 | — | 2 | 3 | |||||||||||||||
FORUM Distribuidora, S.A. | 2 | — | — | — | 2 | |||||||||||||||
FULLY CONSOLIDATED COMPANIES | 2,973 | 5,172 | (654 | ) | (55 | ) | 7,436 | |||||||||||||
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Balance at | ||||||||||||||||||||||||||||
Beginning of | Exchange | Balance at | ||||||||||||||||||||||||||
2006 | Year | Additions | Other | Retirements | Differences | Impairment | End of Year | |||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||
Texas Regional Bancshares, Inc. | — | 1,294 | — | (37 | ) | — | — | 1,257 | ||||||||||||||||||||
Grupo Financiero BBVA Bancomer, S.A. de C.V. | 617 | — | — | (73 | ) | — | — | 544 | ||||||||||||||||||||
Grupo Laredo | 474 | — | — | (49 | ) | — | (3 | ) | 422 | |||||||||||||||||||
Hipotecaria Nacional, S.A. de C.V. | 259 | — | — | (30 | ) | — | 10 | 239 | ||||||||||||||||||||
Grupo BBVA Colombia | 267 | — | — | (19 | ) | — | (35 | ) | 213 | |||||||||||||||||||
BBVA Pensiones Chile, S.A. | 104 | — | — | (14 | ) | — | — | 90 | ||||||||||||||||||||
Forum Servicios Financieros, S.A. | — | 51 | — | (2 | ) | — | — | 49 | ||||||||||||||||||||
Maggiore Fleet, S.p.A. | — | 36 | — | — | — | — | 36 | |||||||||||||||||||||
BBVA Chile, S.A. | 41 | — | — | (6 | ) | — | — | 35 | ||||||||||||||||||||
BBVA Puerto Rico, S.A. | 39 | — | — | (4 | ) | — | — | 35 | ||||||||||||||||||||
AFP Provida | 26 | — | — | (4 | ) | — | — | 22 | ||||||||||||||||||||
BBVA Portugal, S.A. | 16 | — | — | — | — | — | 16 | |||||||||||||||||||||
Finanzia, Banco de Crédito, S.A. | 5 | — | — | — | — | — | 5 | |||||||||||||||||||||
BBVA Bancomer USA(*) | 5 | — | — | (1 | ) | — | — | 4 | ||||||||||||||||||||
BBVA Finanzia, S.p.A. | — | 4 | — | — | — | — | 4 | |||||||||||||||||||||
Forum Distribuidora, S.A. | — | 2 | — | — | — | — | 2 | |||||||||||||||||||||
Invesco Management No1 | — | 6 | — | — | (6 | ) | — | — | ||||||||||||||||||||
Other companies | 5 | 3 | (9 | ) | — | — | 1 | — | ||||||||||||||||||||
FULLY CONSOLIDATED COMPANIES | 1,858 | 1,396 | (9 | ) | (239 | ) | (6 | ) | (27 | ) | 2,973 | |||||||||||||||||
(*) | Former Valley Bank |
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Acquisition Cost of Compass Bancshares, Inc. | Book Value | Fair Value | ||||||
Millions of euros | ||||||||
Compass Bancshares, Inc. value at the date of acquisition | — | — | ||||||
Cash | 426 | 426 | ||||||
Loans and receivables | 18,610 | 18,221 | ||||||
Financial assets | 5,692 | 5,631 | ||||||
Tangible assets | 443 | 514 | ||||||
Intangible assets obtained from previous business combinations | 560 | 2 | ||||||
Intangible assets identify at the date of the business combination(*) | — | 545 | ||||||
Other assets | 390 | 391 | ||||||
Financial liabilities | (23,521 | ) | (23,518 | ) | ||||
Other liabilities | (378 | ) | (402 | ) | ||||
Recognised contingent liabilities | — | — | ||||||
Deferred tax | — | (18 | ) | |||||
Total Stockholders’ equity | 2,222 | 1,792 | ||||||
Goodwill | 4,901 | |||||||
(*) | The balance of intangible assets identified at the acquisition date corresponds mainly to fair value gains allocated to core deposits in the amount of €466 million. |
Acquisition Cost of State National Bancshares, Inc. | Book Value | Fair Value | ||||||
Millions of euros | ||||||||
State National Bancshares, Inc. value at the date of acquisition | — | — | ||||||
Cash | 82 | 82 | ||||||
Loans and receivables | 899 | 884 | ||||||
Financial assets | 207 | 204 | ||||||
Tangible assets | 45 | 47 | ||||||
Intangible assets obtained from previous business combinatios | 88 | — | ||||||
Intangible assets identify at the date of the business combination | — | 28 | ||||||
Other assets | 8 | 7 | ||||||
Financial liabilities | (1,145 | ) | (1,146 | ) | ||||
Other liabilities | (5 | ) | (7 | ) | ||||
Recognised contingent liabilities | — | — | ||||||
Deferred tax | — | 9 | ||||||
Total Stockholders’ equity | 179 | 108 | ||||||
Goodwill | 270 | |||||||
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Average | ||||||||||||||||
Useful | ||||||||||||||||
Life | ||||||||||||||||
2008 | 2007 | 2006 | (years) | |||||||||||||
Millions of euros | ||||||||||||||||
Computer software acquisition expense | 258 | 42 | 56 | 5 | ||||||||||||
Other deferred charges | 113 | 202 | 116 | 5 | ||||||||||||
Other intangible assets | 408 | 571 | 132 | 5 | ||||||||||||
Impairment | (1 | ) | (7 | ) | (8 | ) | ||||||||||
Total | 780 | 808 | 296 | |||||||||||||
2008 | 2007 | 2006 | ||||||||||
Millons de euros | ||||||||||||
Balance at beginning of year | 808 | 296 | 212 | |||||||||
Additions | 242 | 134 | 171 | |||||||||
Year amortization | (256 | ) | (151 | ) | (89 | ) | ||||||
Exchange differences and other | 13 | 530 | 2 | |||||||||
Impairment | (27 | ) | (1 | ) | — | |||||||
Balance at end of year | 780 | 808 | 296 | |||||||||
21. | REST OF ASSETS AND LIABILITIES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Assets — | ||||||||||||
Inventories(*) | 1,066 | 457 | 470 | |||||||||
Transactions in transit | 33 | 203 | 106 | |||||||||
Accrued interest | 383 | 604 | 674 | |||||||||
Prepaid expenses | 206 | 359 | 279 | |||||||||
Other prepayments and accrued income | 177 | 245 | 395 | |||||||||
Other | 1,296 | 1,033 | 1,104 | |||||||||
Total | 2,778 | 2,297 | 2,354 | |||||||||
Liabilities — | ||||||||||||
Transactions in transit | 53 | 54 | 140 | |||||||||
Accrued interest | 1,918 | 1,820 | 1,510 | |||||||||
Unmatured accrued expenses | 1,321 | 1,381 | 1,169 | |||||||||
Other accrued expenses and deferred income | 597 | 439 | 341 | |||||||||
Other | 586 | 498 | 579 | |||||||||
Total | 2,557 | 2,372 | 2,229 | |||||||||
(*) | The balance of the heading Inventories in the consolidated financial statements relates basically to the following companies: Anida Desarrollos Inmobiliarios, S.A., Inensur Brunete, S.L., Monasterio Desarrollo, |
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S.L., Desarrollo Urbanístico Chamartín, S.A., Marina Llar, S.L., Montealiaga, S.A, Anida Desarrollo Singulares, S.L. and Anida Operaciones Singulares, S.L. |
22. | FINANCIAL LIABILITIES MEASURED AT AMORTISED COST |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Deposits from central banks | 16,844 | 27,326 | 15,238 | |||||||||
Deposits from credit institutions | 49,961 | 60,772 | 42,567 | |||||||||
Deposits from customers | 255,236 | 219,610 | 186,749 | |||||||||
Debt certificates (including bonds) | 104,157 | 102,247 | 86,482 | |||||||||
Subordinated liabilities | 16,987 | 15,662 | 13,597 | |||||||||
Other financial liabilities(*) | 7,420 | 6,239 | 6,772 | |||||||||
Total | 450,605 | 431,856 | 351,405 | |||||||||
(*) | As of December 31, 2008, 2007 and 2006, “Other financial liabilities” included €626 million, €570 million and €469 million, respectively, in connection with the third interim dividend declared each year (Note 4). |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Bank of Spain | 4,036 | 19,454 | 7,265 | |||||||||
Credit account drawdowns | 37 | 8,209 | 4,010 | |||||||||
Other State debt and Treasury bills under repurchase agreement | 2,904 | — | — | |||||||||
Other assets under repurchase agreement | 1,095 | 11,245 | 3,255 | |||||||||
Other central banks | 12,726 | 7,802 | 7,926 | |||||||||
Total gross | 16,762 | 27,256 | 15,191 | |||||||||
Accrued interest until expiration | 82 | 70 | 47 | |||||||||
Total | 16,844 | 27,326 | 15,238 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Assigned | 16,049 | 10,320 | 8,136 | |||||||||
Drawn down | 125 | 8,053 | 4,535 | |||||||||
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Reciprocal accounts | 90 | 3,059 | 78 | |||||||||
Deposits with agreed maturity | 35,785 | 33,576 | 27,016 | |||||||||
Demand deposits | 1,228 | 1,410 | 1,782 | |||||||||
Other accounts | 547 | 362 | 393 | |||||||||
Repurchase agreements | 11,923 | 21,988 | 13,017 | |||||||||
Subtotal | 49,573 | 60,395 | 42,286 | |||||||||
Accrued interest until expiration | 388 | 377 | 281 | |||||||||
Total | 49,961 | 60,772 | 42,567 | |||||||||
Deposits with | Funds Received | |||||||||||||||
Demand | Agree | Under Financial | ||||||||||||||
2008 | Deposits | Maturity | Asset Transfers | Total | ||||||||||||
Millions of euros | ||||||||||||||||
Spain | 676 | 4,413 | 1,131 | 6,220 | ||||||||||||
Rest of Europe | 82 | 17,542 | 2,669 | 20,293 | ||||||||||||
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 | ||||||||||||
Deposits with | Funds Received | |||||||||||||||
Demand | Agree | Under Financial | ||||||||||||||
2007 | Deposits | Maturity | Asset Transfers | Total | ||||||||||||
Millions of euros | ||||||||||||||||
Spain | 790 | 5,247 | 3,239 | 9,276 | ||||||||||||
Rest of Europe | 231 | 13,126 | 3,943 | 17,300 | ||||||||||||
United States | 3,077 | 6,853 | 881 | 10,811 | ||||||||||||
Latin America | 331 | 3,962 | 13,925 | 18,218 | ||||||||||||
Rest of the world | 40 | 4,750 | — | 4,790 | ||||||||||||
Total | 4,469 | 33,938 | 21,988 | 60,395 | ||||||||||||
Deposits with | Funds Received | |||||||||||||||
Demand | Agree | Under Financial | ||||||||||||||
2006 | Deposits | Maturity | Asset Transfers | Total | ||||||||||||
Millions of euros | ||||||||||||||||
Spain | 807 | 5,001 | 1,683 | 7,491 | ||||||||||||
Rest of Europe | 642 | 12,640 | 4,621 | 17,903 | ||||||||||||
United States | 110 | 2,653 | 797 | 3,560 | ||||||||||||
Latin America | 239 | 3,166 | 5,916 | 9,321 | ||||||||||||
Rest of the world | 61 | 3,950 | — | 4,011 | ||||||||||||
Total | 1,859 | 27,410 | 13,017 | 42,286 | ||||||||||||
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
General Government | 18,837 | 16,372 | 14,171 | |||||||||
Spanish | 6,320 | 6,844 | 7,109 | |||||||||
Foreign | 12,496 | 9,512 | 7,038 | |||||||||
Accrued interest | 21 | 16 | 24 | |||||||||
Other resident sectors - | 98,630 | 90,863 | 88,811 | |||||||||
Current accounts | 20,725 | 22,798 | 25,346 | |||||||||
Savings accounts | 23,863 | 21,389 | 22,460 | |||||||||
Fixed-term deposits | 43,829 | 36,911 | 30,894 | |||||||||
Reverse repos | 9,339 | 8,785 | 9,081 | |||||||||
Other accounts | 62 | 141 | 318 | |||||||||
Accrued interest | 812 | 839 | 712 | |||||||||
Non-resident sectors | 137,769 | 112,375 | 83,767 | |||||||||
Current accounts | 28,160 | 25,453 | 19,043 | |||||||||
Savings accounts | 22,840 | 19,057 | 13,636 | |||||||||
Fixed-term deposits | 79,094 | 58,492 | 40,906 | |||||||||
Repurchase agreements | 6,890 | 8,545 | 9,555 | |||||||||
Other accounts | 104 | 166 | 67 | |||||||||
Accrued interest | 681 | 662 | 560 | |||||||||
Total | 255,236 | 219,610 | 186,749 | |||||||||
Of which: | ||||||||||||
Deposits from customers without valuation adjustment | 254,075 | 218,509 | 185,900 | |||||||||
Accrued interest | 1,161 | 1,101 | 849 | |||||||||
In euros | 121,895 | 107,371 | 102,731 | |||||||||
In foreign currency | 133,341 | 112,239 | 84,018 |
Deposits with | ||||||||||||||||||||
Demand | Saving | Agreed | ||||||||||||||||||
2008 | Deposits | Deposits | Maturity | Repos | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Spain | 26,209 | 23,892 | 45,299 | 9,746 | 105,146 | |||||||||||||||
Rest of Europe | 3,214 | 360 | 22,733 | 34 | 26,341 | |||||||||||||||
United States | 8,289 | 10,899 | 36,997 | — | 56,185 | |||||||||||||||
Latin America | 20,219 | 9,911 | 20,195 | 6,868 | 57,193 | |||||||||||||||
Rest of the world | 1,576 | 2,488 | 4,796 | — | 8,860 | |||||||||||||||
Total | 59,507 | 47,550 | 130,020 | 16,648 | 253,725 | |||||||||||||||
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Deposits with | ||||||||||||||||||||
Demand | Saving | Agreed | ||||||||||||||||||
2007 | Deposits | Deposits | Maturity | Repos | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Spain | 28,339 | 21,467 | 36,242 | 9,199 | 95,247 | |||||||||||||||
Rest of Europe | 3,055 | 315 | 12,555 | 10 | 15,935 | |||||||||||||||
United States | 6,996 | 7,877 | 22,964 | 148 | 37,985 | |||||||||||||||
Latin America | 18,677 | 9,445 | 21,854 | 8,392 | 58,368 | |||||||||||||||
Rest of the world | 1,656 | 2,842 | 4,439 | — | 8,937 | |||||||||||||||
Total | 58,723 | 41,946 | 98,054 | 17,749 | 216,472 | |||||||||||||||
Deposits with | ||||||||||||||||||||
Demand | Saving | Agreed | ||||||||||||||||||
2006 | Deposits | Deposits | Maturity | Repos | Total | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Spain | 30,906 | 22,525 | 31,325 | 10,303 | 95,059 | |||||||||||||||
Rest of Europe | 2,746 | 1,049 | 7,244 | 448 | 11,487 | |||||||||||||||
United States | 1,420 | 2,019 | 10,529 | 57 | 14,025 | |||||||||||||||
Latin America | 17,817 | 11,466 | 22,461 | 9,064 | 60,808 | |||||||||||||||
Rest of the world | 795 | 403 | 2,876 | — | 4,074 | |||||||||||||||
Total | 53,684 | 37,462 | 74,435 | 19,872 | 185,453 | |||||||||||||||
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Promissory notes and bills | ||||||||||||
In euros | 9,593 | 4,902 | 6,671 | |||||||||
In other currencies | 10,392 | 857 | 885 | |||||||||
Subtotal | 19,985 | 5,759 | 7,556 | |||||||||
Bonds and debentures issued | ||||||||||||
In euros — | ||||||||||||
Non-convertible bonds and debentures at floating interest rates | 11,577 | 18,955 | 18,346 | |||||||||
Non-convertible bonds and debentures | 4,736 | 6,154 | 6,438 | |||||||||
Covered bonds | 38,481 | 38,680 | 35,808 | |||||||||
Bonds from securitization realized by the Group (Note 13) | 13,783 | 19,229 | 8,764 | |||||||||
Valuation adjustments(*) | 2,668 | 252 | 734 | |||||||||
In foreign currencies — | ||||||||||||
Non-convertible bonds and debentures at floating interest rates | 8,980 | 10,707 | 7,866 | |||||||||
Non-convertible bonds and debentures | 1,601 | 1,322 | 626 | |||||||||
Covered bonds | 1,005 | 1,049 | 221 | |||||||||
Other securities associate to financial activities | 15 | — | — | |||||||||
Bonds from securitization realized by the Group (Note 13) | 1,165 | 20 | 43 | |||||||||
Valuation adjustments(*) | 161 | 120 | 80 | |||||||||
Subtotal | 84,172 | 96,488 | 78,926 | |||||||||
Total | 104,157 | 102,247 | 86,482 | |||||||||
(*) | Hedge transactions and issue expenses |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Subordinated debt | 10,785 | 10,834 | 9,385 | |||||||||
Preference shares | 5,464 | 4,561 | 4,025 | |||||||||
Total gross | 16,249 | 15,395 | 13,410 | |||||||||
Valuation adjustments | 738 | 267 | 187 | |||||||||
Total | 16,987 | 15,662 | 13,597 | |||||||||
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2008 | ||||||||||||||||||||
Balance at | Exchange | Balance at | ||||||||||||||||||
Beginning | Repurchase | Differences | the End | |||||||||||||||||
Issuances of the Entity | of Year | Issuances | or Refund | and Others | of Year | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Debt certificates issued in the European Union | 109,173 | 107,848 | (85,671 | ) | (20,193 | ) | 111,158 | |||||||||||||
With information brochure | 109,140 | 107,848 | (85,671 | ) | (20,193 | ) | 111,125 | |||||||||||||
Without information brochure | 33 | — | — | — | 33 | |||||||||||||||
Other debt certificates issued outside European Union | 8,737 | 42,494 | (40,844 | ) | (401 | ) | 9,986 | |||||||||||||
Total | 117,910 | 150,342 | (126,515 | ) | (20,594 | ) | 121,144 | |||||||||||||
2007 | ||||||||||||||||||||
Balance at | Exchange | Balance at | ||||||||||||||||||
Beginning | Repurchase | Differences and | the End | |||||||||||||||||
Issuances of the Entity | of Year | Issuances | or Refund | Others | of Year | |||||||||||||||
Millions of euros | ||||||||||||||||||||
Debt certificates issued in the European Union | 95,107 | 64,972 | (40,801 | ) | (9,641 | ) | 109,637 | |||||||||||||
With information brochure | 95,077 | 64,967 | (40,801 | ) | (9,639 | ) | 109,604 | |||||||||||||
Without information brochure | 30 | 5 | — | (2 | ) | 33 | ||||||||||||||
Other debt certificates issued outside European Union | 5,471 | 3,589 | (1,213 | ) | 425 | 8,272 | ||||||||||||||
Total | 100,578 | 68,561 | (42,014 | ) | (9,216 | ) | 117,909 | |||||||||||||
2008 | 2007 | 2006 | ||||||||||||||||||||||
Foreign | Foreign | Foreign | ||||||||||||||||||||||
Euros | Currency | Euros | Currency | Euros | Currency | |||||||||||||||||||
Fixed rate | 3.86 | % | 4.79 | % | 3.87 | % | 5.12 | % | 3.83 | % | 5.34 | % | ||||||||||||
Floating rate | 4.41 | % | 4.97 | % | 4.68 | % | 5.97 | % | 3.67 | % | 5.25 | % |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
BBVA Internacional, Ltd.(1) | 500 | 500 | 1,000 | |||||||||
BBVA Capital Finance, S.A.U. | 2,975 | 1,975 | 1,975 | |||||||||
Banco Provincial, S.A | 70 | 66 | — | |||||||||
BBVA International Preferred, S.A.U.(2) | 1,901 | 2,003 | 1,050 | |||||||||
Phoenix Loan Holdings, Inc. | 18 | 17 | — | |||||||||
Total | 5,464 | 4,561 | 4,025 | |||||||||
(1) | Listed on the Spanish AIAF market. | |
(2) | Listed in London Stock Exchange and New York Stock Exchange. |
2008 | 2007 | 2006 | ||||||||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||||
issued | issued | issued | ||||||||||||||||||||||
Currency | (Millions) | Currency | (Millions) | Currency | (Millions) | |||||||||||||||||||
BBVA International, Ltd. | ||||||||||||||||||||||||
December 2002 | EUR | 500 | EUR | 500 | EUR | 500 | ||||||||||||||||||
BBVA Capital Finance, S.A.U. | ||||||||||||||||||||||||
December 2003 | EUR | 350 | EUR | 350 | EUR | 350 | ||||||||||||||||||
July 2004 | EUR | 500 | EUR | 500 | EUR | 500 | ||||||||||||||||||
December 2004 | EUR | 1,125 | EUR | 1,125 | EUR | 1,125 | ||||||||||||||||||
December 2008 | EUR | 1,000 | — | — | — | — | ||||||||||||||||||
BBVA International Preferred, S.A.U. | ||||||||||||||||||||||||
September 2005 | EUR | 550 | EUR | 550 | EUR | 500 | ||||||||||||||||||
September 2006 | EUR | 500 | EUR | 500 | EUR | 500 | ||||||||||||||||||
April 2007 | USD | 600 | USD | 600 | — | — | ||||||||||||||||||
July 2007 | GBP | 400 | GBP | 400 | — | — | ||||||||||||||||||
Banco Provincial, S.A. — Banco Universal | ||||||||||||||||||||||||
October 2007 | BS | 150,000 | BS | 150,000 | — | — | ||||||||||||||||||
November 2007 | BS | 58,266 | BS | 58,000 | — | — | ||||||||||||||||||
Phoenix Loan Holdings Inc. | ||||||||||||||||||||||||
November 2007 | USD | 21 | USD | 28 | — | — |
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23. | LIABILITIES UNDER INSURANCE CONTRACTS |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Technical provisions for: | ||||||||||||
Mathematical reserves | 5,503 | 5,847 | 5,465 | |||||||||
Provision for unpaid claims reported | 640 | 580 | 655 | |||||||||
Other insurance technical provisions | 428 | 440 | 788 | |||||||||
Total | 6,571 | 6,867 | 6,908 | |||||||||
24. | PROVISIONS |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Provisions for pensions and similar obligations (Note 25) | 6,359 | 5,967 | 6,358 | |||||||||
Provisions for taxes and other legal contingents | 263 | 225 | 232 | |||||||||
Provisions for contingent exposures and commitments (Note 7) | 421 | 546 | 502 | |||||||||
Other provisions | 1,635 | 1,604 | 1,557 | |||||||||
Total | 8,678 | 8,342 | 8,649 | |||||||||
Provisions for Pensions and Similar Obligation | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of the year | 5,967 | 6,358 | 6,240 | |||||||||
Add — | ||||||||||||
Year provision with a charge to income for the year | 1,309 | 417 | 1,410 | |||||||||
Of which: | ||||||||||||
Interest expenses and similar charges | 252 | 242 | 254 | |||||||||
Personnel expenses | 55 | 71 | 74 | |||||||||
Provision expenses | 1,002 | 104 | 1,081 | |||||||||
Charges in reserves(*) | 74 | — | — | |||||||||
Transfers and other changes | (1 | ) | (4 | ) | — | |||||||
Less — | ||||||||||||
Payments | (963 | ) | (843 | ) | (1,208 | ) | ||||||
Amount use and other variations | (27 | ) | 39 | (84 | ) | |||||||
Balance at end of the year | 6,359 | 5,967 | 6,358 | |||||||||
(*) | Correspond to actuarial losses (gains) arising on certain defined benefit post-employment commitments recognised in “Reserves” within the Group’s consolidated equity (see Note 2.2.3.). |
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Commitments and Contingent Risks Provisions | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of the year | 546 | 502 | 452 | |||||||||
Add — | ||||||||||||
Year provision with a charge to income for the year | 97 | 93 | 74 | |||||||||
Transfers and other Changes | — | — | 5 | |||||||||
Less — | ||||||||||||
Available funds | (216 | ) | (46 | ) | (17 | ) | ||||||
Amount use and other variations | (6 | ) | (3 | ) | (12 | ) | ||||||
Balance at end of the year | 421 | 546 | 502 | |||||||||
Provisions for Taxes and Other Provisions | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of the year | 1,829 | 1,789 | 2,009 | |||||||||
Add — | ||||||||||||
Year provision with a charge to income for the year | 705 | 275 | 353 | |||||||||
Adquisition of subsidiaries | — | 56 | 4 | |||||||||
Transfers and other Changes | 254 | 14 | 101 | |||||||||
Less — | ||||||||||||
Available funds | (245 | ) | (140 | ) | (51 | ) | ||||||
Amount use and other variations | (645 | ) | (165 | ) | (608 | ) | ||||||
Disposal of subsidiaries | — | — | (19 | ) | ||||||||
Balance at end of the year | 1,898 | 1,829 | 1,789 | |||||||||
25. | COMMITMENTS WITH PERSONNEL |
25.1. | COMMITMENTS WITH PERSONNEL FOR POST-EMPLOYMENT DEFINED CONTRIBUTION PLANS |
25.2 | COMMITMENTS FOR POST-EMPLOYMENT DEFINED BENEFIT PLANS AND OTHER LONG-TERM POST-EMPLOYMENT BENEFITS |
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2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Millions of euros | ||||||||||||||||||||
Post-employment welfare benefits | 7,985 | 7,816 | 8,173 | 7,639 | 7,404 | |||||||||||||||
Assets and Insurance contracts coverages | 1,626 | 1,883 | 1,816 | 1,399 | 555 | |||||||||||||||
Net assets | — | (34 | ) | — | — | — | ||||||||||||||
Net liabilities | 6,359 | 5,967 | 6,357 | 6,240 | 6,849 |
Commitments in Spain | Commitments Abroad | Total | ||||||||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||
Post-employment benefits | ||||||||||||||||||||||||||||||||||||
Post-employment benefits | 3,060 | 3,115 | 3,386 | 903 | 1,097 | 956 | 3,963 | 4,212 | 4,342 | |||||||||||||||||||||||||||
Early retirement | 3,437 | 2,950 | 3,186 | — | — | — | 3,437 | 2,950 | 3,186 | |||||||||||||||||||||||||||
Post-employment welfare benefits | 221 | 234 | 223 | 364 | 420 | 422 | 585 | 654 | 645 | |||||||||||||||||||||||||||
Total | 6,718 | 6,299 | 6,795 | 1,267 | 1,517 | 1,378 | 7,985 | 7,816 | 8,173 | |||||||||||||||||||||||||||
Insurance contracts coverages | ||||||||||||||||||||||||||||||||||||
Post-employment benefits | 436 | 467 | 569 | — | — | — | 436 | 467 | 569 | |||||||||||||||||||||||||||
436 | 467 | 569 | — | — | — | 436 | 467 | 569 | ||||||||||||||||||||||||||||
Other plan assets | ||||||||||||||||||||||||||||||||||||
Post-employment benefits | — | — | — | 889 | 1,062 | 879 | 889 | 1,062 | 879 | |||||||||||||||||||||||||||
Post-employment welfare benefits | — | — | — | 301 | 354 | 368 | 301 | 354 | 368 | |||||||||||||||||||||||||||
— | — | — | 1,190 | 1,416 | 1,247 | 1,190 | 1,416 | 1,247 | ||||||||||||||||||||||||||||
Net commitments of plan assets | 6,282 | 5,832 | 6,226 | 77 | 101 | 131 | 6,359 | 5,933 | 6,357 | |||||||||||||||||||||||||||
of which: | ||||||||||||||||||||||||||||||||||||
Net assets | — | — | — | — | (34 | ) | — | — | (34 | ) | — | |||||||||||||||||||||||||
Net liabilities(*) | 6,282 | 5,832 | 6,226 | 77 | 135 | 131 | 6,359 | 5,967 | 6,357 |
(*) | Recognized under the heading “Provisions — Provisions for pensions and similar obligations” of the accompanying consolidated balance sheets. |
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2008 | 2007 | 2006 | ||||
Mortality tables | PERM/F 2000P. | PERM/F 2000P. | PERM/F 2000P. | |||
Discount rate (cumulative annual) | 4.5%/AA corporate | 4.5%/AA corporate | 4%/AA corporate | |||
bond yield curve | bond yield curve | bond yield curve | ||||
Consumer price index (cumulative annual) | 2% | 2% | 1.5% | |||
Salary growth rate (cumulative annual) | At least 3% | At least 3% | At least 2.5% | |||
(depending on | (depending on | (depending on | ||||
employee) | employee) | employee) | ||||
Retirement ages | First date at which the employees are entitled to retire or contractually agreed at the individual level in the case of early retirements |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Commitments to retired employees | 2,852 | 2,733 | 3,186 | |||||||||
Vested contingencies in respect of current employees | 208 | 382 | 200 | |||||||||
Net Commitments(*) | 3,060 | 3,115 | 3,386 | |||||||||
(*) | Recorded in the heading “Funds for Pensions and Similar Obligations” |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 2,648 | 2,817 | 2,816 | |||||||||
Interest cost | 116 | 109 | 110 | |||||||||
Current service cost | 14 | 18 | 23 | |||||||||
Payments made | (167 | ) | (163 | ) | (159 | ) | ||||||
Other changes | 8 | 1 | 11 | |||||||||
Actuarial losses (gains) | 5 | (134 | ) | 16 | ||||||||
Balance at end of year | 2,624 | 2,648 | 2,817 | |||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014-2018 | |||||||||||||||||||
Pension commitments | 173 | 178 | 178 | 177 | 176 | 850 |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of the year | 2,950 | 3,186 | 2,583 | |||||||||
Interest cost | 117 | 112 | 92 | |||||||||
Current services cost | 1,004 | 294 | 1,019 | |||||||||
Payments made | (618 | ) | (587 | ) | (505 | ) | ||||||
Other changes | (14 | ) | — | (3 | ) | |||||||
Actuarial losses (gains) | (2 | ) | (55 | ) | — | |||||||
Balance at end of the year | 3,437 | 2,950 | 3,186 | |||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014-2018 | |||||||||||||||||||
Early Retirements | 606 | 539 | 498 | 458 | 415 | 1,293 |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Post-employment welfare benefit commitments to retired employees | 181 | 192 | 169 | |||||||||
Vested post-employment welfare benefit contingencies in respect of current employees | 40 | 42 | 54 | |||||||||
Net Commitments(*) | 221 | 234 | 223 | |||||||||
(*) | Recorded in the heading “Funds for Pensions and Similar Obligations” |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 234 | 223 | 211 | |||||||||
Interest cost | 11 | 9 | 9 | |||||||||
Current service cost | 2 | 2 | 2 | |||||||||
Payments made | (43 | ) | (12 | ) | (13 | ) | ||||||
Prior service cost or changes in the plan | — | 8 | — | |||||||||
Other changes | 16 | 3 | 6 | |||||||||
Actuarial losses (gains) | 1 | 1 | 8 | |||||||||
Balance at end of year | 221 | 234 | 223 | |||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014-2018 | |||||||||||||||||||
Post-employment welfare benefits | 20 | 19 | 18 | 17 | 17 | 81 |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Interest expense and similar charges | ||||||||||||
Interest cost of pension funds | 244 | 230 | 210 | |||||||||
Personnel expenses | ||||||||||||
Transfer to pensions plans | 14 | 18 | 27 | |||||||||
Social attentions | 2 | 2 | 2 | |||||||||
Provision expense (net) | ||||||||||||
Transfer to fund for pension and similar obligations | ||||||||||||
Pension funds | 8 | (180 | ) | 23 | ||||||||
Early retirements | 1,004 | 294 | 1,019 | |||||||||
Total | 1,272 | 364 | 1,281 | |||||||||
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Plan | Net | |||||||||||
Commitments | Assets | Commitments | ||||||||||
Millions of euros | ||||||||||||
Post-employment benefits | ||||||||||||
Pension commitments | ||||||||||||
Mexico | 387 | 436 | (49 | ) | ||||||||
Portugal | 283 | 283 | — | |||||||||
United States | 167 | 133 | 34 | |||||||||
Rest | 66 | 37 | 29 | |||||||||
903 | 889 | 14 | ||||||||||
Post-employment welfare benefits | ||||||||||||
Mexico | 360 | 301 | 59 | |||||||||
Portugal | — | — | — | |||||||||
United States | — | — | — | |||||||||
Rest | 4 | — | 4 | |||||||||
364 | 301 | 63 | ||||||||||
Total commitments | 1,267 | 1,190 | 77 | |||||||||
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2008 | 2007 | 2006 | ||||||||||
Mortality tables | EMSSA 97 | EMSSA 97 | EMSSA 97 | |||||||||
Discount rate (cumulative annual) | 10.3 | % | 8.8 | % | 9.0 | % | ||||||
Consumer price index (cumulative annual) | 3.8 | % | 3.6 | % | 3.5 | % | ||||||
Medical cost trend rates | 6.8 | % | 5.8 | % | 5.5 | % | ||||||
Expected rate of return on plan assets | 9.8 | % | 8.8 | % | 9.0 | % |
2008 | ||||||||||||
Plan | Net | |||||||||||
Commitments | Assets | Commitments | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 584 | 572 | 12 | |||||||||
Finance expenses | 49 | — | 49 | |||||||||
Finance income | — | 48 | (48 | ) | ||||||||
Current service cost | 15 | — | 15 | |||||||||
Prior service cost of changes in the plan | — | — | — | |||||||||
Acquisitions or divestments made | — | — | — | |||||||||
Effect of reductions or settlement | (66 | ) | — | (66 | ) | |||||||
Payments | (31 | ) | (31 | ) | — | |||||||
Exhange difference | (88 | ) | (95 | ) | 7 | |||||||
Actuarial losses (gains) | (47 | ) | (37 | ) | (10 | ) | ||||||
Contributions | — | 8 | (8 | ) | ||||||||
Other movements | (29 | ) | (29 | ) | — | |||||||
Balance at end of year | 387 | 436 | (49 | ) | ||||||||
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2009 | 2010 | 2011 | 2012 | 2013 | 2014-2018 | |||||||||||||||||||
Pensions | 30 | 30 | 30 | 31 | 31 | 174 |
2008 | 2007 | |||||||
Millions of euros | ||||||||
Interest expense and similar charges | 1 | 1 | ||||||
Personnel expenses | 15 | 17 | ||||||
Provisions expense (net) | (66 | ) | (3 | ) | ||||
Total | (50 | ) | 15 | |||||
2008 | ||||||||||||
Plan | Net | |||||||||||
Commitments | Assets | Commitments | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 416 | 354 | 62 | |||||||||
Finance expenses | 35 | — | 35 | |||||||||
Finance income | — | 30 | (30 | ) | ||||||||
Current service cost | 14 | — | 14 | |||||||||
Prior service cost of changes in the plan | — | — | — | |||||||||
Acquisitions or divestments made | — | — | — | |||||||||
Effect of reductions or settlement | (17 | ) | — | (17 | ) | |||||||
Payments | (19 | ) | (19 | ) | — | |||||||
Exhange difference | (71 | ) | (64 | ) | (7 | ) | ||||||
Actuarial losses (gains) | 2 | (23 | ) | 25 | ||||||||
Contributions | — | 23 | (23 | ) | ||||||||
Other movements | — | — | — | |||||||||
Balance at end of year | 360 | 301 | 59 | |||||||||
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2008 | 2007 | |||||||
Millions of euros | ||||||||
Interest expense and similar charges | 5 | 5 | ||||||
Personnel expenses | 14 | 16 | ||||||
Provisions expense (net) | (17 | ) | 13 | |||||
Total | 2 | 34 | ||||||
1% Increase | 1% Decrease | |||||||
Millions of euros | ||||||||
Increase/Decrease in current services cost and interest cost | 11 | (9 | ) | |||||
Increase/Decrease in commitments | 72 | (57 | ) |
2008 | 2007 | 2006 | ||||||||||
Mortality tables | TV88/90 | TV88/90 | TV88/90 | |||||||||
Discount rate (cumulative annual) | 5.9 | % | 5.3 | % | 4.8 | % | ||||||
Consumer price index (cumulative annual) | 2.0 | % | 2.0 | % | 2.0 | % | ||||||
Salary growth rate (cumulative annual) | 3.0 | % | 3.0 | % | 3.0 | % | ||||||
Expected rate of return on plan assets | 4.6 | % | 4.6 | % | 4.5 | % |
% | ||||||||
2008 | 2007 | |||||||
Equity securities | 8.7 | 13.0 | ||||||
Debt securities | 85.3 | 83.5 | ||||||
Property, Land and Buildings | 0.5 | 0.3 | ||||||
Cash | 3.6 | 0.8 | ||||||
Other investments | 1.9 | 2.4 |
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2008 | ||||||||||||
Plan | Net | |||||||||||
Commitments | Assets | Commitments | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 295 | 292 | 3 | |||||||||
Finance expenses | 15 | — | 15 | |||||||||
Finance income | — | 13 | (13 | ) | ||||||||
Current service cost | 4 | — | 4 | |||||||||
Prior service cost of changes in the plan | — | — | — | |||||||||
Acquisitions or divestments made | — | — | — | |||||||||
Effect of reductions or settlement | — | — | — | |||||||||
Payments | (15 | ) | (15 | ) | — | |||||||
Exhange difference | — | — | — | |||||||||
Actuarial losses (gains) | (16 | ) | (17 | ) | 1 | |||||||
Contributions | — | 10 | (10 | ) | ||||||||
Other movements | — | — | — | |||||||||
Balance at end of year | 283 | 283 | — | |||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014-2018 | |||||||||||||||||||
Pensions | 15 | 15 | 16 | 16 | 16 | 80 |
2008 | 2007 | |||||||
Millions of euros | ||||||||
Interest expense and similar charges | 2 | 2 | ||||||
Personnel expenses | 4 | 5 | ||||||
Provisions expense (net) | — | 11 | ||||||
Total | 6 | 18 | ||||||
2008 | 2007 | |||||||
Moratility tables | RP 2000 Projected | RP 2000 Projected | ||||||
Discount rate (cumulative annual) | 6.9 | % | 6.6 | % | ||||
Consumer price index (cumulative annual) | 2.5 | % | 2.5 | % | ||||
Salary growth rate (cumulative annual) | 4.0 | % | 4.0 | % | ||||
Expected rate of return on plan assets | 7.5 | % | 7.5 | % | ||||
Medical care growth rate | n/a | n/a |
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% | ||||||||
2008 | 2007 | |||||||
Equity securities | 52.7 | 59.2 | ||||||
Debt securities | 46 | 39.9 | ||||||
Cash | 1.3 | — |
2008 | ||||||||||||
Plan | Net | |||||||||||
Commitments | Assets | Commitments | ||||||||||
Millions of euros | ||||||||||||
Balance at beginning of year | 159 | 166 | (7 | ) | ||||||||
Finance expenses | 10 | — | 10 | |||||||||
Finance income | — | 12 | (12 | ) | ||||||||
Current service cost | 5 | — | 5 | |||||||||
Prior service cost of changes in the plan | 1 | — | 1 | |||||||||
Acquisitions or divestments made | — | — | — | |||||||||
Effect of reductions or settlement | (3 | ) | — | (3 | ) | |||||||
Payments | (7 | ) | (7 | ) | — | |||||||
Exhange difference | 10 | 10 | — | |||||||||
Actuarial losses (gains) | (8 | ) | (52 | ) | 44 | |||||||
Contributions | — | 4 | (4 | ) | ||||||||
Other movements | — | — | — | |||||||||
Balance at end of year | 167 | 133 | 34 | |||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014-2018 | |||||||||||||||||||
Pensions | 7 | 7 | 8 | 8 | 9 | 61 |
2008 | 2007 | |||||||
Millions of euros | ||||||||
Interest expense and similar charges | (2 | ) | — | |||||
Personnel expenses | 5 | 2 | ||||||
Provisions expense (net) | (2 | ) | (6 | ) | ||||
Total | 1 | (4 | ) | |||||
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2008 | 2007 | |||||||
Millions of euros | ||||||||
Interest expense and similar charges | 2 | 3 | ||||||
Personnel expenses | 1 | 3 | ||||||
Provisions expense (net) | — | 5 | ||||||
Total | 3 | 11 | ||||||
26. | MINORITY INTERESTS |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
BBVA Colombia Group | 26 | 23 | 18 | |||||||||
BBVA Chile Group | 129 | 116 | 95 | |||||||||
BBVA Banco Continental Group | 278 | 246 | 235 | |||||||||
BBVA Banco Provincial Group | 413 | 267 | 224 | |||||||||
Provida Group | 65 | 79 | 66 | |||||||||
BBVA Banco Francés Group | 88 | 87 | 52 | |||||||||
Other companies | 50 | 62 | 78 | |||||||||
Total | 1,049 | 880 | 768 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
BBVA Colombia Group | 5 | 5 | 3 | |||||||||
BBVA Chile Group | 28 | 15 | 3 | |||||||||
BBVA Banco Continental Group | 97 | 76 | 67 | |||||||||
BBVA Banco Provincial Group | 175 | 106 | 69 | |||||||||
Provida Group | 3 | 28 | 25 | |||||||||
BBVA Banco Francés Group | 44 | 36 | 43 | |||||||||
Other companies | 14 | 23 | 25 | |||||||||
Total | 366 | 289 | 235 | |||||||||
27. | CAPITAL STOCK |
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28. | SHARE PREMIUM |
29. | RESERVES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Legal reserve | 367 | 348 | 332 | |||||||||
Restricted reserve for retired capital | 88 | 88 | 88 | |||||||||
Restricted reserve for Parent Company shares | 604 | 912 | 815 | |||||||||
Restricted reserve for redenomination of capital in euros | 2 | 2 | 2 | |||||||||
Revaluation Royal Decree-Law 7/1996 | 82 | 85 | 176 | |||||||||
Voluntary reserves | 1,927 | 822 | 672 | |||||||||
Consolidation reserves attributed to the Bank and dependents consolidated companies | 6,340 | 3,803 | 1,544 | |||||||||
Total | 9,410 | 6,060 | 3,629 | |||||||||
29.1. | LEGAL RESERVE: |
29.2. | RESTRICTED RESERVES: |
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29.3. | REVALUATION ROYAL DECREE-LAW 7/1996 (ASSET REVALUATIONS AND REGULARISATIONS): |
2008 | ||||
Millions of euros | ||||
Legal revaluations and regularisations of tangible assets: | ||||
Cost | 187 | |||
Less: | ||||
Single revaluation tax (3)% | (6 | ) | ||
Balance as of December 31, 1999 | 181 | |||
Adjustment as a result of review by the tax authorities in 2000 | (5 | ) | ||
Transfer to voluntary reserves | (94 | ) | ||
Total | 82 | |||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Fully and proportionately consolidated companies | ||||||||||||
BBVA Bancomer Group | 3,489 | 2,782 | 2,187 | |||||||||
Provida Group | 333 | 264 | 214 | |||||||||
BBVA Banco Provincial Group | 198 | 84 | 35 | |||||||||
BBVA Continental Group | 95 | 79 | 58 | |||||||||
BBVA Puerto Rico Group | 44 | 43 | 38 | |||||||||
BBVA USA Bancshares Group | (84 | ) | 23 | 2 | ||||||||
BBVA Chile Group | (85 | ) | (109 | ) | (102 | ) | ||||||
BBVA Portugal Group | (220 | ) | (236 | ) | (207 | ) | ||||||
BBVA Colombia Group | (264 | ) | (313 | ) | (341 | ) | ||||||
BBVA Banco Francés Group | (305 | ) | (441 | ) | (602 | ) | ||||||
BBVA Luxinvest, S.A. | 1,232 | 1,295 | 999 | |||||||||
Corporacion General Financiera, S.A. | 979 | 965 | 701 | |||||||||
BBVA Seguros, S.A. | 862 | 681 | 485 | |||||||||
Anida Grupo Inmobiliario, S.L | 380 | 296 | 218 | |||||||||
Cidessa Uno, S.L | 298 | 197 | 73 | |||||||||
BBVA Suiza, S.A. | 222 | 197 | 171 | |||||||||
Bilbao Vizcaya Holding, S.A. | 150 | 104 | 54 |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Finanzia, Banco de Crédito, S.A. | 144 | 139 | 115 | |||||||||
Compañía de Cartera e Inversiones, S.A. | 121 | (10 | ) | 84 | ||||||||
Banco Industrial de Bilbao, S.A. | 114 | 95 | 95 | |||||||||
BBVA Panama, S.A. | 108 | 85 | 79 | |||||||||
Banco de Crédito Local, S.A. | (243 | ) | (243 | ) | (249 | ) | ||||||
BBVA International Investment Corporation | (418 | ) | (424 | ) | (424 | ) | ||||||
Other | 135 | (5 | ) | (89 | ) | |||||||
Subtotal | 7,285 | 5,548 | 3,594 | |||||||||
For using the equity method: | 609 | 451 | 360 | |||||||||
Corp. IBV Participaciones Empresariales, S.A. | 437 | 428 | 326 | |||||||||
Citic Intern.Final.Holding | 151 | (5 | ) | — | ||||||||
Tubos Reunidos, S.A. | 53 | 66 | 56 | |||||||||
Other | (32 | ) | (38 | ) | (22 | ) | ||||||
Total | 7,894 | 5,999 | 3,954 | |||||||||
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30. | TREASURY SHARES |
2008 | 2007 | 2006 | ||||||||||||||||||||||
Number of | Millions of | Number of | Millions of | Number of | Millions of | |||||||||||||||||||
Shares | Euros | Shares | Euros | Shares | Euros | |||||||||||||||||||
Balance at beginning of year | 15,836,692 | 389 | 8,306,205 | 147 | 7,609,267 | 96 | ||||||||||||||||||
+ Purchases | 1,118,942,855 | 14,096 | 921,700,213 | 16,156 | 338,017,080 | 5,677 | ||||||||||||||||||
- Sales | (1,073,239,664 | ) | (13,685 | ) | (914,169,726 | ) | (16,041 | ) | (337,319,748 | ) | (5,639 | ) | ||||||||||||
+/- Other | — | (60 | ) | — | (1 | ) | (394 | ) | (1 | ) | ||||||||||||||
+/- Derivatives over BBVA shares | — | (20 | ) | — | 128 | — | 14 | |||||||||||||||||
Balance at end of year | 61,539,883 | 720 | 15,836,692 | 389 | 8,306,205 | 147 | ||||||||||||||||||
Of which: | ||||||||||||||||||||||||
Held by the BBVA S.A. | 4,091,197 | 143 | 291,850 | 129 | 2,462,171 | 40 | ||||||||||||||||||
Held by Corporación General Financiera | 57,436,183 | 577 | 15,525,688 | 260 | 5,827,394 | 107 | ||||||||||||||||||
Held by other entities of the Group | 12,503 | — | 19,154 | — | 16,640 | — | ||||||||||||||||||
Average purchase price | 12.60 | 17.53 | 16.80 | |||||||||||||||||||||
Average selling price | 12.52 | 17.51 | 16.77 | |||||||||||||||||||||
Net gain or losses on transactions (Stockholders’funds-Reserves) | (172 | ) | (26 | ) | 17 |
2008 | 2007 | 2006 | ||||||||||||||||||||||
Min | Max | Min | Max | Min | Max | |||||||||||||||||||
% treasury shares | 0.318 | % | 3.935 | % | 0.136 | % | 1.919 | % | 0.020 | % | 0.858 | % | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Number of shares in pledge | 98,228,254 | 96,613,490 | 74,453,876 | |||||||||
Nominal value | 0.49 | 0.49 | 0.49 | |||||||||
% of share capital | 2.62 | % | 2.58 | % | 2.10 | % |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Number of shares property of third parties | 104,534,298 | 105,857,665 | 99,849,614 | |||||||||
Nominal value | 0.49 | 0.49 | 0.49 | |||||||||
% of share capital | 2.8 | % | 2.8 | % | 2.8 | % |
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31. | CAPITAL RATIO |
2008 (*) | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Basic equity | 22,107 | 19,115 | 18,313 | |||||||||
Capital | 1,837 | 1,837 | 1,740 | |||||||||
Parent company reserves | 20,768 | 18,389 | 13,527 | |||||||||
Minority interests | 928 | 760 | 514 | |||||||||
Other equity instruments | 5,391 | 4,491 | 4,025 | |||||||||
Deductions (Goodwill and others) | (9,998 | ) | (9,654 | ) | (4,180 | ) | ||||||
Attributed net income (less dividends) | 3,181 | 3,292 | 2,687 | |||||||||
Additional equity | 12,387 | 13,147 | 12,344 | |||||||||
Other deductions | (957 | ) | (1,786 | ) | (1,223 | ) | ||||||
Additional Capital due to mixed Group (**) | 1,129 | 1,160 | 980 | |||||||||
Total Stockholders’ equity | 34,666 | 31,636 | 30,414 | |||||||||
Minimum equity required | 23,653 | 25,496 | 21,047 |
(*) | Provisionals data | |
(**) | Mainly Insurance entities of the Group. |
32. | TAX MATTERS |
A) | Consolidated tax group |
B) | Years open for review by the tax authorities |
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C) | Reconciliation |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Corporation tax(*) | 2,078 | 2,761 | 2,461 | |||||||||
Decreases due to permanent differences: | ||||||||||||
Tax credits and tax relief at consolidated Companies | (441 | ) | (439 | ) | (353 | ) | ||||||
Other items net | (249 | ) | (229 | ) | (151 | ) | ||||||
Net increases (decreases) due to temporary differences | 580 | (262 | ) | (38 | ) | |||||||
Charge for income tax and other taxes | 1,968 | 1,831 | 1,919 | |||||||||
Deferred tax assets and liabilities recorded (utilised) | (580 | ) | 262 | 38 | ||||||||
Income tax and other taxes accrued in the year | 1,388 | 2,093 | 1,957 | |||||||||
Adjustments to prior years’ income tax and other taxes | 153 | (14 | ) | 102 | ||||||||
Income tax and other taxes | 1,541 | 2,079 | 2,059 | |||||||||
(*) | Tax rate 30% in 2008, 32.5% in 2007 and 35% in 2006. |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Consolidated Tax Group | 2,492 | 4,422 | 3,376 | |||||||||
Other Spanish entities | 40 | 4 | 102 | |||||||||
Foreign entities | 4,394 | 4,069 | 3,552 | |||||||||
6,926 | 8,495 | 7,030 | ||||||||||
Income tax | 1,541 | 2,079 | 2,059 | |||||||||
Effective tax rate | 22.25 | % | 24.48 | % | 29.29 | % | ||||||
D) | tax recognized in equity |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Charges to equity net | ||||||||||||
Debt securities | (19 | ) | (36 | ) | (291 | ) | ||||||
Equity instruments | (168 | ) | (1,373 | ) | (1,105 | ) | ||||||
Credits to equity net | ||||||||||||
Other | 2 | 22 | 41 | |||||||||
Total | (185 | ) | (1,387 | ) | (1,355 | ) | ||||||
E) | Deferred taxes |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Deferred tax assets: | 6,484 | 5,207 | 5,340 | |||||||||
Of which: | ||||||||||||
Pensions commitments | 1,654 | 1,519 | 1,640 | |||||||||
Portfolio | 335 | 587 | 672 | |||||||||
Loan loss provisions | 1,436 | 1,400 | 1,464 | |||||||||
Tax losses and other | 1,631 | 805 | 927 | |||||||||
Deferred tax liabilities | 2,266 | 2,817 | 2,369 | |||||||||
Of which: | ||||||||||||
Free depreciation and other | (1,282 | ) | (2,235 | ) | (1,769 | ) | ||||||
33. | FINANCIAL GUARANTEES AND DRAWABLE BY THIRD PARTIES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Contingent exposures — | ||||||||||||
Collateral, bank guarantees and indemnities | 27,649 | 27,997 | 24,708 | |||||||||
Rediscounts, endorsements and acceptances | 81 | 58 | 44 | |||||||||
Other | 8,222 | 8,804 | 5,235 | |||||||||
35,952 | 36,859 | 29,987 | ||||||||||
Contingent commitments — | ||||||||||||
Drawable by third parties: | 92,663 | 101,444 | 98,226 | |||||||||
Credit institutions | 2,021 | 2,619 | 4,356 | |||||||||
General government sector | 4,221 | 4,419 | 3,122 | |||||||||
Other resident sectors | 37,529 | 42,448 | 43,730 | |||||||||
Non-resident sector | 48,892 | 51,958 | 47,018 | |||||||||
Other commitments | 6,234 | 5,496 | 4,995 | |||||||||
Total | 98,897 | 106,940 | 103,221 | |||||||||
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34. | ASSETS ASSIGNED TO OTHER OWN AND THIRD-PARTY OBLIGATIONS |
35. | OTHER CONTINGENT ASSETS |
36. | PURCHASE AND SALE COMMITMENTS |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Financial instruments sales with repurchase commitments | 32,569 | 50,982 | 36,139 | |||||||||
Financial instruments purchase with resale commitments | 11,259 | 11,423 | 7,018 |
Up to 1 | ||||||||||||||||||||
Year | 1 to 3 Years | 3 to 5 Years | Over 5 Years | Total | ||||||||||||||||
Millions of euros | ||||||||||||||||||||
Financial leases | — | — | — | — | — | |||||||||||||||
Operational leases | 336 | 51 | 36 | 105 | 528 | |||||||||||||||
Purchase commitments | 33 | 4 | — | — | 37 | |||||||||||||||
Technology and systems projects | 10 | — | — | — | 10 | |||||||||||||||
Other projects | 23 | 4 | — | — | 27 | |||||||||||||||
Total | 369 | 55 | 36 | 105 | 565 | |||||||||||||||
37. | TRANSACTIONS FOR THE ACCOUNT OF THIRD PARTIES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Financial instruments entrusted by third parties | 510,019 | 567,263 | 524,151 | |||||||||
Conditional bills and other securities received for collection | 5,208 | 20,824 | 3,640 | |||||||||
Securities received in credit | 71 | 632 | 70 |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
The off balanced sheet customer funds | 114,840 | 165,314 | 157,550 | |||||||||
- Commercialised by the Group | ||||||||||||
- Investment companies and mutual funds | 37,076 | 63,487 | 62,246 | |||||||||
- Pension funds | 42,701 | 59,143 | 55,505 | |||||||||
- Saving insurance contracts | 10,398 | 10,437 | 13,104 | |||||||||
- Customer portfolios managed on a discretionary basis | 24,582 | 31,936 | 26,465 | |||||||||
Of which: | ||||||||||||
Portfolios managed on a discretionary | 12,176 | 18,904 | 13,995 | |||||||||
- Commercialised by the Group managed by third parties outside the Group | ||||||||||||
- Investment companies and mutual funds | 59 | 156 | 115 | |||||||||
- Pension funds | 24 | 128 | 97 | |||||||||
- Saving insurance contracts | — | 27 | 18 |
38. | INTEREST INCOME AND EXPENSE AND SIMILAR ITEMS |
38.1. | INTEREST AND SIMILAR INCOME |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Central Banks | 479 | 458 | 444 | |||||||||
Loans and advances to credit institutions | 1,323 | 1,664 | 958 | |||||||||
Loans and advances to customers | 23,580 | 19,208 | 13,599 | |||||||||
General government | 736 | 668 | 539 | |||||||||
Resident sector | 11,177 | 9,281 | 6,394 | |||||||||
Non resident sector | 11,667 | 9,259 | 6,666 | |||||||||
Debt securities | 3,706 | 3,472 | 3,197 | |||||||||
Trading | 2,241 | 2,028 | 1,363 | |||||||||
Investment | 1,465 | 1,444 | 1,834 | |||||||||
Rectification of income as a result of hedging transactions | 175 | 177 | 684 | |||||||||
Insurance activity income | 812 | 821 | 774 | |||||||||
Other gains (losses) | 329 | 376 | 386 | |||||||||
Total | 30,404 | 26,176 | 20,042 | |||||||||
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Domestic | 15,391 | 13,709 | 9,801 | |||||||||
Foreign | 15,014 | 12,467 | 10,242 | |||||||||
European Union | 1,974 | 1,652 | 1,262 | |||||||||
OECD | 8,671 | 7,336 | 6,200 | |||||||||
Rest of countries | 4,369 | 3,479 | 2,780 | |||||||||
Total | 30,404 | 26,176 | 20,042 | |||||||||
38.2. | INTEREST EXPENSE AND SIMILAR CHARGES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Bank of Spain and other central banks | 384 | 365 | 300 | |||||||||
Deposits from credit institutions | 3,115 | 3,119 | 2,343 | |||||||||
Deposits from customers | 9,057 | 7,840 | 5,038 | |||||||||
Debt certificates | 3,631 | 3,658 | 2,821 | |||||||||
Subordinated liabilities | 1,121 | 868 | 567 | |||||||||
Rectification of expenses as a result of hedging transactions | 421 | (327 | ) | (231 | ) | |||||||
Cost attributable to pension funds (Note 24) | 254 | 241 | 255 | |||||||||
Insurance | 571 | 616 | 633 | |||||||||
Other charges | 164 | 168 | 178 | |||||||||
Total | 18,718 | 16,548 | 11,904 | |||||||||
38.3. | AVERAGES RETURN ON INVESTMENTS AND AVERAGE BORROWING COST |
2008 | 2007 | |||||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||||
Assets | Balances | Expenses | Rates (%) | Balances | Expenses | Rates (%) | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Cash and balances with central banks | 14,396 | 479 | 3.32 | 16,038 | 458 | 2.86 | ||||||||||||||||||
Securities portfolio and derivatives | 118,356 | 4,659 | 3.94 | 107,236 | 4,386 | 4.09 | ||||||||||||||||||
Loans and advances to credit institutions | 31,229 | 1,367 | 4.38 | 39,509 | 1,777 | 4.50 | ||||||||||||||||||
Euros | 21,724 | 933 | 4.30 | 29,522 | 1,138 | 5.39 | ||||||||||||||||||
Foreign currency | 9,505 | 434 | 4.57 | 9,987 | 639 | 6.39 | ||||||||||||||||||
Loans and advances to customers | 321,498 | 23,720 | 7.38 | 275,647 | 19,290 | 7.00 | ||||||||||||||||||
Euros | 218,634 | 13,072 | 5.98 | 201,045 | 10,747 | 5.22 | ||||||||||||||||||
Foreign currency | 102,864 | 10,648 | 10.35 | 74,602 | 8,543 | 11.45 | ||||||||||||||||||
Other finance income | — | 179 | — | — | 265 | — | ||||||||||||||||||
Other assets | 32,377 | — | — | 22,770 | — | — | ||||||||||||||||||
ASSETS/FINANCE INCOME | 517,856 | 30,404 | 5.87 | 461,200 | 26,176 | 5.68 | ||||||||||||||||||
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2008 | 2007 | |||||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||||
Liabilities | Balances | Expenses | Rates (%) | Balances | Expenses | Rates (%) | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Deposits from central banks and credit institutions | 77,159 | 3,809 | 4.94 | 65,822 | 3,469 | 5.27 | ||||||||||||||||||
Euros | 32,790 | 1,604 | 4.89 | 27,388 | 1,261 | 4.60 | ||||||||||||||||||
Foreign currency | 44,369 | 2,205 | 4.97 | 38,434 | 2,209 | 5.75 | ||||||||||||||||||
Customer deposits | 237,387 | 8,390 | 3.53 | 205,740 | 7,013 | 3.41 | ||||||||||||||||||
Euros | 115,166 | 3,765 | 3.27 | 109,605 | 3,133 | 2.83 | ||||||||||||||||||
Foreign currency | 122,221 | 4,625 | 3.78 | 96,135 | 3,880 | 4.04 | ||||||||||||||||||
Marketable securities and subordinated liabilities | 119,249 | 6,100 | 5.12 | 116,247 | 5,658 | 4.87 | ||||||||||||||||||
Euros | 96,764 | 5,055 | 5.22 | 99,612 | 4,675 | 4.67 | ||||||||||||||||||
Foreign currency | 22,485 | 1,045 | 4.65 | 16,635 | 983 | 5.91 | ||||||||||||||||||
Other finance expenses | — | 418 | — | — | 408 | — | ||||||||||||||||||
Other liabilities | 56,867 | — | — | 48,776 | — | — | ||||||||||||||||||
Equity | 27,194 | — | — | 24,615 | — | — | ||||||||||||||||||
LIABILITIES + EQUITY/ FINANCE EXPENSE | 517,856 | 18,717 | 3.61 | 461,200 | 16,548 | 3.59 | ||||||||||||||||||
Volume Price-Effect 2008/2007 | ||||||||||||
Volume Effect(1) | Price Effect(2) | Total Effect | ||||||||||
Millions of euros | ||||||||||||
Cash and balances with central banks | (46 | ) | 66 | 21 | ||||||||
Securities portfolio and derivatives | 468 | (195 | ) | 273 | ||||||||
Loans and advances to credit institutions | (368 | ) | (41 | ) | (409 | ) | ||||||
Euros | 37 | (242 | ) | (205 | ) | |||||||
Foreign currency | (29 | ) | (175 | ) | (204 | ) | ||||||
Loans and advances to customers | 3,270 | 1,159 | 4,430 | |||||||||
Euros | 698 | 1,627 | 2,325 | |||||||||
Foreign currency | 3,269 | (1,164 | ) | 2,105 | ||||||||
Other financial income | — | (86 | ) | (86 | ) | |||||||
FINANCE INCOME | 3,297 | 932 | 4,229 | |||||||||
Deposits from central banks and credit institutions | 609 | (269 | ) | 340 | ||||||||
Euros | 253 | 91 | 344 | |||||||||
Foreign currency | 348 | (351 | ) | (3 | ) | |||||||
Customer deposits | 1,101 | 277 | 1,377 | |||||||||
Euros | 167 | 493 | 660 | |||||||||
Foreign currency | 1,066 | (321 | ) | 745 | ||||||||
Marketable securities and subordinated liabilities | 162 | 281 | 443 | |||||||||
Euros | (142 | ) | 522 | 380 | ||||||||
Foreign currency | 349 | (287 | ) | 62 | ||||||||
Other finance expense | — | 10 | 10 | |||||||||
FINANCE EXPENSE | 2,084 | 86 | 2,170 | |||||||||
NET INTEREST INCOME | 1,213 | 846 | 2,059 | |||||||||
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(1) | The volume effect is calculated by multiplying the interest rate for the first year by the difference between the average balances for the two periods. | |
(2) | The price effect is calculated by multiplying the average balance for the second year by the difference between the interest rates for the two periods. |
39. | DIVIDEND INCOME |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Dividends from other shares and other equity instrument | ||||||||||||
Financial assets held for trading | 110 | 121 | 121 | |||||||||
Other financial assets designated at fair value through profit or loss | — | — | — | |||||||||
Available-for-sale financial assets | 337 | 227 | 259 | |||||||||
Total | 447 | 348 | 380 | |||||||||
40. | SHARE OF PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Corporación IBV Participaciones Empresariales, S.A. | 233 | 209 | 251 | |||||||||
Servired Española de Medios de Pago, S.A. | 26 | — | — | |||||||||
Tubos Reunidos, S.A. | 20 | 20 | 14 | |||||||||
CITIC International Financial Holding Limited CIFH | 18 | 7 | — | |||||||||
Rest | (4 | ) | 5 | 43 | ||||||||
Total | 293 | 241 | 308 | |||||||||
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41. | FEE AND COMMISSION INCOME |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Commitment fees | 62 | 55 | 56 | |||||||||
Contingent liabilities | 243 | 229 | 204 | |||||||||
Documentary credits | 45 | 38 | 33 | |||||||||
Bank and other guarantees | 198 | 191 | 171 | |||||||||
Arising from exchange of foreign currencies and banknotes | 24 | 24 | 20 | |||||||||
Collection and payment services | 2,655 | 2,567 | 2,274 | |||||||||
Securities services | 1,895 | 2,089 | 2,017 | |||||||||
Counselling on and management of one-off transactions | 9 | 16 | 14 | |||||||||
Financial and similar counselling services | 24 | 23 | 18 | |||||||||
Factoring transactions | 28 | 25 | 19 | |||||||||
Non-banking financial products sales | 96 | 87 | 80 | |||||||||
Other fees and commissions | 503 | 488 | 431 | |||||||||
Total | 5,539 | 5,603 | 5,133 | |||||||||
42. | FEE AND COMMISSION EXPENSES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Brokerage fees on lending and deposit transactions | 8 | 7 | 11 | |||||||||
Fees and commissions assigned to third parties | 728 | 612 | 561 | |||||||||
Other fees and commissions | 275 | 424 | 372 | |||||||||
Total | 1,012 | 1,043 | 943 | |||||||||
43. | NET GAINS (LOSSES) ON FINANCIAL ASSETS AND LIABILITIES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Financial assets held for trading | 265 | 709 | 829 | |||||||||
Other financial assets designated at fair value through profit or loss | (17 | ) | 43 | 62 | ||||||||
Other financial instruments not at fair value through profit or loss | 1,080 | 793 | 370 | |||||||||
Available-for-sale financial assets | 996 | 709 | 612 | |||||||||
Loans and receivables | 13 | 63 | 77 | |||||||||
Other | 71 | 21 | (319 | ) | ||||||||
Total | 1,328 | 1,545 | 1,261 | |||||||||
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Debt instruments | (143 | ) | (6 | ) | 174 | |||||||
Equity instruments | (1,986 | ) | 1,026 | 2,106 | ||||||||
Loans and advances to customers | 106 | 88 | 113 | |||||||||
Derivatives | 3,305 | 409 | (1,169 | ) | ||||||||
Deposits from customers | 13 | — | — | |||||||||
Other | 33 | 28 | 37 | |||||||||
Total | 1,328 | 1,545 | 1,261 | |||||||||
44. | OTHER OPERATING INCOME AND EXPENSES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Income on insurance and reinsurance contracts | 2,512 | 2,605 | 2,736 | |||||||||
Financial income from non-financial services | 485 | 655 | 460 | |||||||||
Of which: | ||||||||||||
Real estate agencies | 40 | 279 | 189 | |||||||||
Rest of operating income | 562 | 329 | 217 | |||||||||
Total | 3,559 | 3,589 | 3,413 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Expenses on insurance and reinsurance contracts | 1,896 | 2,052 | 2,209 | |||||||||
Change in inventories | 403 | 467 | 329 | |||||||||
Rest of operating expenses | 794 | 532 | 385 | |||||||||
Of which: | ||||||||||||
Fondo de garantía de depositos | 251 | 225 | 215 | |||||||||
Total | 3,093 | 3,051 | 2,923 | |||||||||
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45. | ADMINISTRATION COSTS |
45.1 | PERSONNEL EXPENSES |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Wages and salaries | 3,593 | 3,297 | 3,012 | |||||||||
Social security costs | 566 | 546 | 504 | |||||||||
Transfers to internal pension provisions (Note 25) | 56 | 56 | 74 | |||||||||
Contributions to external pension funds (Note 25 and Note 2.2.3) | 71 | 58 | 53 | |||||||||
Other personnel expenses | 430 | 378 | 346 | |||||||||
Total | 4,716 | 4,335 | 3,989 | |||||||||
Average Number of Employees | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Spanish banks | ||||||||||||
Executives | 1,053 | 1,102 | 1,104 | |||||||||
Other line personnel | 21,268 | 21,672 | 21,818 | |||||||||
Clerical staff | 6,152 | 6,849 | 7,141 | |||||||||
Abroad branches | 720 | 745 | 676 | |||||||||
29,193 | 30,368 | 30,739 | ||||||||||
Companies abroad | ||||||||||||
Mexico | 27,369 | 26,568 | 25,157 | |||||||||
Venezuela | 6,154 | 5,793 | 5,555 | |||||||||
Argentina | 4,242 | 3,955 | 3,604 | |||||||||
Colombia | 4,382 | 4,639 | 5,155 | |||||||||
Peru | 3,836 | 3,349 | 2,705 | |||||||||
United States | 12,029 | 6,767 | 1,685 | |||||||||
Other | 4,918 | 4,780 | 4,490 | |||||||||
62,930 | 55,851 | 48,351 | ||||||||||
Pension fund managers | 8,470 | 8,969 | 8,297 | |||||||||
Other non-banking companies | 11,343 | 9,327 | 8,351 | |||||||||
Total | 111,936 | 104,515 | 95,738 | |||||||||
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2008 | 2007 | |||||||||||||||
Average Number | Average Number | |||||||||||||||
Men | Women | Men | Women | |||||||||||||
Executives | 1,629 | 316 | 1,667 | 318 | ||||||||||||
Other line personnel | 23,392 | 19,927 | 24,506 | 16,337 | ||||||||||||
Clerical staff | 29,335 | 37,337 | 28,993 | 32,694 | ||||||||||||
Total | 54,356 | 57,580 | 55,166 | 49,349 | ||||||||||||
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Technology and systems | 598 | 539 | 495 | |||||||||
Communications | 260 | 236 | 218 | |||||||||
Advertising | 273 | 248 | 207 | |||||||||
Property, fixtures and materials | 617 | 520 | 451 | |||||||||
Of which: | ||||||||||||
Rents expenses(*) | 268 | 205 | 173 | |||||||||
Taxes other than income tax | 295 | 258 | 203 | |||||||||
Other expenses | 997 | 1,117 | 768 | |||||||||
Total | 3,040 | 2,918 | 2,342 | |||||||||
(*) | The consolidated companies do not expect to terminate the lease contracts early. |
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46. | PROVISIONS (NET) |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Provisions to Pension Commitments and similar obligations | 985 | 135 | 1,068 | |||||||||
Spain | 1,008 | 84 | 1,040 | |||||||||
Mexico | (57 | ) | 19 | (10 | ) | |||||||
Portugal | — | 7 | 35 | |||||||||
USA | 9 | (3 | ) | — | ||||||||
Rest of the countries | 25 | 28 | 3 | |||||||||
Provisions to risks and contingent commitments | (119 | ) | 48 | 57 | ||||||||
Provisions to tax and other provisions | 564 | 52 | 213 | |||||||||
Total | 1,431 | 235 | 1,338 | |||||||||
47. | IMPAIRMENT ON FINANCIAL ASSETS (NET) |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Other financial instruments not at fair value through profit or loss | ||||||||||||
Available-for-sale financial assets | 145 | 1 | (20 | ) | ||||||||
Debt securities | 144 | 1 | (21 | ) | ||||||||
Other equity instruments | 2 | — | 1 | |||||||||
Loans and receivalbles | (1 | ) | — | — | ||||||||
Held-to-maturity investments | 2,797 | 1,902 | 1,477 | |||||||||
Of which: | ||||||||||||
Recovery of writen-off assets | 192 | 226 | 184 | |||||||||
Total | 2,941 | 1,903 | 1,457 | |||||||||
48. | IMPAIRMENT ON OTHER ASSETS (NET) |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Goodwill | — | — | 13 | |||||||||
Other intangible assets | 1 | 1 | — | |||||||||
Tangible assets | 13 | 12 | (5 | ) | ||||||||
Inventories | 26 | — | — | |||||||||
Rest | 5 | — | 4 | |||||||||
Total | 45 | 13 | 12 | |||||||||
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49. | GAINS (LOSSES) IN WRITTEN OFF ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Gains | ||||||||||||
Disposal of tangible assets | 27 | 2 | 936 | |||||||||
Disposal of intangible assets and other | 75 | 39 | 35 | |||||||||
Losses: | ||||||||||||
Disposal of tangible assets | (14 | ) | (7 | ) | — | |||||||
Disposal of intangible assets and other | (16 | ) | (21 | ) | (15 | ) | ||||||
Total | 72 | 13 | 956 | |||||||||
50. | GAINS AND LOSSES IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Gains for real estate | 21 | 344 | 18 | |||||||||
Of which: | ||||||||||||
Sales of buildings Madrid -SPAIN-(1) | — | 279 | — | |||||||||
Sales of buildings Mexico D.F. -MEXICO-(2) | 64 | — | — | |||||||||
Gains for sale of available-for-sale assets | 727 | 847 | 523 | |||||||||
Of which: | ||||||||||||
Bradesco | 727 | — | — | |||||||||
Iberdrola | — | 847 | — | |||||||||
Repsol | — | — | 523 | |||||||||
Total | 748 | 1,191 | 541 | |||||||||
(1) | Sale of BBVA’s buildings located on Castellana 81, Alcalá, 16 and Hortaleza-Vía de los Poblados (all of them in Madrid). The sale of this buildings amounted to €579 million. | |
(2) | Sale of BBVA Bancomer’s building in the city of Mexico (Note 16). |
51. | CONSOLIDATED STATEMENT OF CASH FLOWS |
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2008 | ||||||||
Cash Flows of Investment Activities | ||||||||
Investments (−) | Desinvestments (+) | |||||||
Tangible assets | 1,199 | 168 | ||||||
Intangible assets | 402 | 31 | ||||||
Investments | 672 | 9 | ||||||
Subsidiaries and other business units | 1,559 | 13 | ||||||
Non-current assets and liabilities associated held for sale | 515 | 374 | ||||||
Held-to-maturity investments | — | 283 | ||||||
Other settlements related with investement activities | 270 | 874 |
2007 | ||||||||
Cash Flows of Investment Activities | ||||||||
Investments (−) | Desinvestments (+) | |||||||
Tangible assets | 1,836 | 328 | ||||||
Intangible assets | 134 | 146 | ||||||
Investments | 690 | 227 | ||||||
Subsidiaries and other business units | 7,082 | 11 | ||||||
Compass Bancshares, Inc. (Note 3)(*) | 6,693 | — | ||||||
State Nacional Bancshares, Inc. (Note 3) | 378 | — | ||||||
Other | 12 | — | ||||||
Non-current assets and liabilities associated held for sale | 487 | 744 | ||||||
Held-to-maturity investments | — | 321 | ||||||
Other settlements related with investement activities | 719 | 1,184 | ||||||
(*) | An investment of €6,672 million (of which €3,385 million was paid in cash and the rest in shares issued pursuant to a rights issue) plus €21 million in transaction expenses directly attributable to the acquisition. |
52. | ACCOUNTANTS FEES AND SERVICES |
Millions of euros | ||||
Audits of the companies audited by firms belonging to the Deloitte worldwide organisation | 12.2 | |||
Fees for audits conducted by other firms | — | |||
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 organisation | 5.3 |
Millions of euros | ||||
Firms belonging to the Deloitte worldwide organisation | 1.5 | |||
Other firms | 7.0 |
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53. | RELATED PARTY TRANSACTIONS |
53.1 | SIGNIFICANT TRANSACTIONS WITH SHAREHOLDERS |
53.2 | TRANSACTIONS WITH BBVA GROUP |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Assets: | ||||||||||||
Due from credit institutions | 27 | 32 | — | |||||||||
Total net lending | 507 | 610 | 374 | |||||||||
Liabilities: | ||||||||||||
Due to credit institutions | 1 | — | — | |||||||||
Deposits | 23 | 55 | 83 | |||||||||
Debt certificates | 344 | 440 | 463 | |||||||||
Memorandum accounts: | ||||||||||||
Contingent risks | 37 | 129 | 23 | |||||||||
Commitments contingents | 415 | 443 | 457 | |||||||||
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Statement of income: | ||||||||||||
Financial Revenues | 36 | 33 | 12 | |||||||||
Financial Expenses | 22 | 18 | 13 |
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53.3 | TRANSACTIONS WITH KEY ENTITY PERSONNEL |
53.4 | TRANSACTIONS WITH OTHER RELATED PARTIES |
54. | REMUNERATION OF THE BANK’S DIRECTORS AND SENIOR MANAGEMENT |
Appointments and | ||||||||||||||||||||||||
Board | Standing Committee | Audit | Risk | Compensation | Total | |||||||||||||||||||
Thousand of euros | ||||||||||||||||||||||||
Tomás Alfaro Drake | 129 | �� | — | 71 | — | — | 200 | |||||||||||||||||
Juan Carlos Álvarez Mezquíriz | 129 | 167 | — | — | 42 | 338 | ||||||||||||||||||
Rafael Bermejo Blanco | 129 | — | 179 | 107 | — | 415 | ||||||||||||||||||
Richard C. Breeden | 350 | — | — | — | — | 350 | ||||||||||||||||||
Ramón Bustamante y de La Mora | 129 | — | 71 | 107 | — | 307 | ||||||||||||||||||
José Antonio Fernández Rivero(*) | 129 | — | — | 214 | — | 343 | ||||||||||||||||||
Ignacio Ferrero Jordi | 129 | 167 | — | — | 42 | 338 | ||||||||||||||||||
Román Knörr Borrás | 129 | 167 | — | — | — | 296 | ||||||||||||||||||
Carlos Loring Martínez de Irujo | 129 | — | 71 | — | 107 | 307 | ||||||||||||||||||
Enrique Medina Fernández | 129 | 167 | — | 107 | — | 403 | ||||||||||||||||||
Susana Rodríguez Vidarte | 129 | — | 71 | — | 42 | 242 | ||||||||||||||||||
Total | 1,640 | 668 | 463 | 535 | 233 | 3,539 | ||||||||||||||||||
(*) | Mr José Antonio Fernández Rivero, apart from the amounts detailed above, also received a total of €652 thousand during the six months ended 2008 in early retirement payments as a former member of the BBVA management. |
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Fixed | Variable | |||||||||||
Remunerations | Remunerations (*) | Total (**) | ||||||||||
Thousand of euros | ||||||||||||
Chairman & CEO | 1,928 | 3,802 | 5,729 | |||||||||
President & CEO | 1,425 | 3,183 | 4,609 | |||||||||
Company Secretary | 665 | 886 | 1,552 | |||||||||
Total | 4,019 | 7,871 | 11,890 | |||||||||
(*) | Figures relating to variable remuneration for 2007 paid in 2008. | |
(**) | In addition, the executive directors received remuneration in kind during 2008 totalling €38 thousand, of which €9 thousand relates to Chairman & CEO, €16 thousand relates to President & COO and €13 thousand to Company Secretary. |
(*) | This paragraph includes information on the members of the Management committee as of December 31, 2008, excluding the executive directors. |
Thousand of euros | ||||
Chairman & CEO | 72,547 | |||
President & COO | 52,495 | |||
Company Secretary | 8,710 | |||
Total | 133,752 | |||
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No Assigned | Number of | |||||||||||
Theoretical Shares | Multiplier Ratio | Shares | ||||||||||
Chairman & CEO | 320,000 | 1.42 | 454,400 | |||||||||
President & COO | 270,000 | 1.42 | 383,400 | |||||||||
Company Secretary | 100,000 | 1.42 | 142,000 | |||||||||
Other members of Board of Directors | 1,124,166 | 1.42 | 1,596,316 | |||||||||
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Accumulated | ||||||||
Theoretical | Theoretical | |||||||
Directors | Shares | Shares | ||||||
Tomás Alfaro Drake | 2,655 | 4,062 | ||||||
Juan Carlos Álvarez Mezquíriz | 4,477 | 23,968 | ||||||
Rafael Bermejo Blanco | 4,306 | 4,306 | ||||||
Ramón Bustamante y de la Mora | 4,064 | 23,987 | ||||||
José Antonio Fernández Rivero | 4,533 | 14,452 | ||||||
Ignacio Ferrero Jordi | 4,477 | 24,540 | ||||||
Román Knörr Borrás | 3,912 | 19,503 | ||||||
Carlos Loring Martínez de Irujo | 4,067 | 11,751 | ||||||
Enrique Medina Fernández | 5,322 | 33,357 | ||||||
Susana Rodríguez Vidarte | 3,085 | 13,596 | ||||||
Total | 40,898 | 173,522 | ||||||
55. | DETAIL OF THE DIRECTORS’ HOLDINGS IN COMPANIES WITH SIMILAR BUSINESS ACTIVITIES |
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Investments | ||||||||||
Type of | ||||||||||
Ownership | ||||||||||
Surname (s) and First Name | Company | Number of Shares | Interest | |||||||
Alfaro Drake, Tomás | — | — | — | |||||||
Alvarez Mezquiriz, Juan Carlos | — | — | — | |||||||
Bermejo Blanco, Rafael | Banco Santander | 7,400 | Direct | |||||||
Banco Popular Español | 14,180 | Direct | ||||||||
Breeden, Richard C. | — | — | — | |||||||
Bustamante y de la Mora, Ramón | — | — | — | |||||||
Fernández Rivero, José Antonio | — | — | — | |||||||
Ferrero Jordi, Ignacio | Banco Santander | 12,245 | Indirect | |||||||
Banco Popular Español | 2,490 | Indirect | ||||||||
Goirigolzarri Tellaeche, José Ignacio | — | |||||||||
González Rodríguez, Francisco | RBC Dexia Investor Services España, S.A. | 76,040 | Indirect | |||||||
Knörr Borrás, Román | — | — | — | |||||||
Loring Martínez de Irujo, Carlos | — | — | — | |||||||
Maldonado Ramos, José | — | — | — | |||||||
Medina Fernández, Enrique | — | — | — | |||||||
Rodríguez Vidarte, Susana | — | — | — |
56. | OTHER INFORMATION |
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57. | SUBSEQUENT EVENTS |
58. | 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 and Stockholders’ Equity reconciliation between EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 and U.S. GAAP | A | ||||||
• | Consolidated Financial Statements | B | ||||||
• | Additional information required by U.S. GAAP | C |
A) | NET INCOME AND STOCKHOLDERS’ EQUITY RECONCILIATION BETWEEN EU-IFRS REQUIRED TO BE APPLIED UNDER THE BANK OF SPAIN’S CIRCULAR 4/2004 AND U.S. GAAP. |
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Increase (Decrease) Year Ended December 31, | ||||||||||||||
Item # | 2008 | 2007 | 2006 | |||||||||||
(Millions of euros, except per share data) | ||||||||||||||
NET INCOME | ||||||||||||||
Profit for the year under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 5,385 | 6,415 | 4,971 | |||||||||||
Income attributed to the minority interest under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 (*) | (365 | ) | (289 | ) | (235 | ) | ||||||||
Net Income attributed to parent company under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 5,020 | 6,126 | 4,736 | |||||||||||
Adjustments to conform to U.S. GAAP: | ||||||||||||||
Business combination with Argentaria | 1 | (36 | ) | (31 | ) | (22 | ) | |||||||
Valuation of assets | 2 | (32 | ) | 110 | (1 | ) | ||||||||
Valuation of financial instruments | 3 | — | (9 | ) | 74 | |||||||||
Accounting of goodwill | 4 | (2 | ) | (118 | ) | (346 | ) | |||||||
Impact of SFAS 133 | 6 | (128 | ) | 29 | 17 | |||||||||
Loans adjustments | 7 | (1,152 | ) | (924 | ) | 445 | ||||||||
Tax effect of U.S. GAAP adjustments and deferred taxation under SFAS 109 | 8 | 402 | 226 | 69 | ||||||||||
Net income in accordance with U.S. GAAP | 4,070 | 5,409 | 4,972 | |||||||||||
Other comprehensive income, (loss) net of tax: | ||||||||||||||
Foreign currency translation adjustments | (1,001 | ) | (1,873 | ) | (708 | ) | ||||||||
Unrealized gains on securities: | ||||||||||||||
Unrealized holding gains (losses) arising during period, net of tax | (2,657 | ) | 487 | 110 | ||||||||||
Derivative instruments and hedging activities | 175 | 285 | 107 | |||||||||||
Comprehensive income (losses) in accordance with U.S. GAAP | 9 | 587 | 4,308 | 4,481 | ||||||||||
Net income per share (Euros)(see Note 58.10) | 1.10 | 1.50 | 1.46 |
(*) | Under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 total stockholders’ equity and net income includes the equity and net income corresponding to the stockholders of both the Parent and the minority interests. Under U.S. GAAP, total stockholders’ equity and net income is made up only of the equity portion attributed to equity holders of the Parent. Therefore, for reporting purposes, the minority interest portion is excluded of total stockholders’ equity and net income. |
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Increase (Decrease) Year | ||||||||||||||
Ended December 31, | ||||||||||||||
Item # | 2008 | 2007 | 2006 | |||||||||||
(Millions of euros) | ||||||||||||||
TOTAL STOCKHOLDERS’ EQUITY | ||||||||||||||
Total Stockholders’ equity under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 26,705 | 27,943 | 22,318 | |||||||||||
Minority interest under IFRS (*) | (1,049 | ) | (880 | ) | (768 | ) | ||||||||
Total stockholders’ equity without minority interest under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 25,656 | 27,063 | 21,550 | |||||||||||
Adjustments to conform to U.S. GAAP: | ||||||||||||||
Business combination with Argentaria | 1 | 5,469 | 5,505 | 5,537 | ||||||||||
Valuation of assets | 2 | (74 | ) | (41 | ) | (152 | ) | |||||||
Valuation of financial instruments | 3 | 36 | 57 | 110 | ||||||||||
Accounting of goodwill | 4 | 2,573 | 2,877 | 2,842 | ||||||||||
Translation of financial statements in high-inflation countries | 5 | (192 | ) | (221 | ) | (239 | ) | |||||||
Impact of SFAS 133 | 6 | 35 | 160 | 116 | ||||||||||
Loans adjustments | 7 | 36 | 1,188 | 2,115 | ||||||||||
Tax effect of U.S. GAAP adjustments and deferred taxation under SFAS 109 | 8 | (795 | ) | (1,203 | ) | (1,418 | ) | |||||||
Total stockholders’ equity in accordance with U.S. GAAP | 32,744 | 35,384 | 30,461 |
(*) | Under EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 total stockholders’ equity and net income includes the equity and net income corresponding to the stockholders of both the parent and the minority interests. Under U.S. GAAP, total stockholders’ equity and net income is made up only of the equity portion attributed to equity holders of the Parent. Therefore, for reporting purposes, the minority interest portion is excluded of total stockholders’ equity and net income. |
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 — |
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3. | Valuation of financial instruments — |
4. | Accounting of goodwill — |
Total Stockholders’ Equity | Net Income | |||||||||||||||||||||||
2008 | 2007 | 2006 | 2008 | 2007 | 2006 | |||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
Goodwill charged to reserves in 1998 and 1999 | 65 | 65 | 65 | — | — | — | ||||||||||||||||||
Different period of amortization of goodwill reversed | 99 | 99 | 99 | — | — | — | ||||||||||||||||||
Amortization under Spanish GAAP not reversed under U.S. GAAP | (154 | ) | (154 | ) | (154 | ) | — | — | — | |||||||||||||||
Reversal of amortization | 970 | 970 | 970 | — | — | — | ||||||||||||||||||
Reversal of Step Acquisition | 2,310 | 2,648 | 2,930 | — | — | — | ||||||||||||||||||
Step Acquisition of BBVA Bancomer | (1,170 | ) | (1,200 | ) | (1,105 | ) | 1 | (100 | ) | (344 | ) | |||||||||||||
Acquisition of Compass | 405 | 405 | — | — | — | — | ||||||||||||||||||
Others | 48 | 43 | 37 | (3 | ) | (18 | ) | (2 | ) | |||||||||||||||
Adjustment 4 in reconciliation to U.S. GAAP | 2,573 | 2,877 | 2,842 | (2 | ) | (118 | ) | (346 | ) | |||||||||||||||
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Millions of euros | ||||
Net worth acquired | 1,207 | |||
Investment securities | (32 | ) | ||
Net loans and leases | 622 | |||
Premises 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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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Spain and Portugal | 4,286 | 4,353 | 4,081 | |||||||||
Global Businesses | 1,489 | 1,410 | 1,681 | |||||||||
Pensions in South America | 208 | 251 | 270 | |||||||||
México | 2,265 | 2,713 | 3,040 | |||||||||
Chile | 86 | 104 | 126 | |||||||||
United States and Puerto Rico | 7,098 | 6,698 | 1,724 | |||||||||
Colombia | 193 | 204 | 213 |
5. | Translation of financial statements in high-inflation countries — |
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6. | Impact of SFAS 133 |
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7. | Loans adjustments |
• | Assets classified as impaired for customers in which the amount of their operations is less than € 1 million. | |
• | Asset portfolio not currently impaired but which presents an inherent loss. |
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8. | Tax effect of U.S. GAAP adjustments and deferred taxation under SFAS No. 109 — |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Income tax provision under IFRS | 1,541 | 2,079 | 2,059 | |||||||||
Tax effect of U.S. GAAP adjustments and deferred taxation under SFAS 109 | (416 | ) | (283 | ) | (238 | ) | ||||||
Of which: Adjustments of deferred tax liability/assets for enacted changes in tax laws of U.S. adjustments | — | — | (326 | ) | ||||||||
Income tax provision under U.S. GAAP | 1,125 | 1,796 | 1,822 |
2008 | 2007 | 2006 | ||||||||||||||||||||||
Deferred Tax | Deferred Tax | Deferred Tax | Deferred Tax | Deferred Tax | Deferred 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 | 5,055 | (1,282 | ) | 4,310 | (2,235 | ) | 4,703 | (1,747 | ) | |||||||||||||||
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 | (719 | ) | — | (1,070 | ) | — | (1,355 | ) | — | |||||||||||||||
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 | ) | — | (3 | ) | — | (14 | ) | — | |||||||||||||||
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 | 48 | (106 | ) | 92 | (175 | ) | 101 | (238 | ) | |||||||||||||||
As reported under SFAS 109 (gross) | 4,384 | (1,388 | ) | 3,329 | (2,410 | ) | 3,435 | (1,985 | ) | |||||||||||||||
Valuation reserve | 11 | — | (22 | ) | — | (45 | ) | — | ||||||||||||||||
As reported under SFAS 109 (net) | 4,395 | (1,388 | ) | 3,307 | (2,410 | ) | 3,390 | (1,985 | ) |
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December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
(Millions of euros) | ||||||||||||
Deferred Tax assets | ||||||||||||
Loan loss reserves | 1,425 | 1,042 | 830 | |||||||||
Unrealized losses on securities pension liability | 1,654 | 1,522 | 1,645 | |||||||||
Fixed assets | 44 | 47 | 86 | |||||||||
Net operating loss carryforward | 38 | 121 | 330 | |||||||||
Investments and derivatives | 333 | — | 36 | |||||||||
Goodwill | (150 | ) | (118 | ) | (74 | ) | ||||||
Other | 1,039 | 715 | 582 | |||||||||
Total deferred tax assets | 4,384 | 3,329 | 3,435 | |||||||||
Valuation reserve | 11 | (22 | ) | (45 | ) | |||||||
Net tax asset | 4,395 | 3,307 | 3,390 | |||||||||
Deferred tax liabilities | ||||||||||||
Unrealized gains on securities pension liability | (1 | ) | — | (1 | ) | |||||||
Unrealized gains on investments | (220 | ) | (1,471 | ) | (1,450 | ) | ||||||
Gains on sales of investments | (115 | ) | (107 | ) | (135 | ) | ||||||
Fixed assets | (11 | ) | (38 | ) | (99 | ) | ||||||
Goodwill | (67 | ) | (84 | ) | (148 | ) | ||||||
Other | (974 | ) | (710 | ) | (152 | ) | ||||||
Total deferred tax liabilities | (1,387 | ) | (2,410 | ) | (1,985 | ) | ||||||
Valuation reserve | — | — | — | |||||||||
Net tax liabilities | (1,387 | ) | (2,410 | ) | (1,985 | ) |
As of December 31, | As of December 31, | As of December 31, | ||||||||||
2008 | 2007 | 2006 | ||||||||||
% percentages | ||||||||||||
Corporate income tax at the standard rate | 30.00 | 32.50 | 35.00 | |||||||||
Decrease arising from permanent differences | (9.96 | ) | (7.86 | ) | (7.16 | ) | ||||||
Adjustments to the provision for prior years’ corporate income tax and other taxes | 2.21 | (0.15 | ) | 1.45 | ||||||||
Income tax provision under theEU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | 22.25 | 24.49 | 29.29 | |||||||||
Tax effect of U.S. GAAP adjustments and deferred taxation under SFAS 109 | (0.59 | ) | 0.44 | (2.48 | ) | |||||||
Income tax provision under U.S. GAAP | 21.65 | 24.93 | 26.81 |
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9. | Other Comprehensive Income |
Foreign | ||||||||||||||||
Currency | Unrealized | Gains on | Other | |||||||||||||
Translation | Gains on | Derivative | Comprehensive | |||||||||||||
Adjustments | Securities | Instruments | Income | |||||||||||||
Millions of euros | ||||||||||||||||
Balance as of December 31, 2006 | (3,292 | ) | 3,240 | 17 | (35 | ) | ||||||||||
Changes in 2007 | (1,873 | ) | 487 | 285 | (1,101 | ) | ||||||||||
Balance as of December 31, 2007 | (5,165 | ) | 3,727 | 302 | (1,137 | ) | ||||||||||
Changes in 2008 | (1,001 | ) | (2,657 | ) | 175 | (3,483 | ) | |||||||||
Balance as of December 31, 2008 | (6,166 | ) | 1,070 | 477 | (4,619 | ) |
2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||
Before | Tax | Tax | Before | Tax | ||||||||||||||||||||||||||||||||
Tax | Expense or | Net of Tax | Before Tax | Expense or | Net of Tax | Tax | Expense or | Net of Tax | ||||||||||||||||||||||||||||
Amount | Benefit | Amount | Amount | Benefit | Amount | Amount | Benefit | Amount | ||||||||||||||||||||||||||||
Millions of Euros | ||||||||||||||||||||||||||||||||||||
Foreign currency translations adjustment | (1,001 | ) | — | (1,001 | ) | (1,873 | ) | — | (1,873 | ) | (709 | ) | — | (709 | ) | |||||||||||||||||||||
Unrealized gains on securities: | ||||||||||||||||||||||||||||||||||||
Unrealized holding gains arising during the period | (3,454 | ) | 797 | (2,657 | ) | 633 | (146 | ) | 487 | 425 | (314 | ) | 111 | |||||||||||||||||||||||
Derivatives Instruments and Hedging Activities | 228 | (53 | ) | 175 | 370 | (85 | ) | 285 | 139 | (32 | ) | 107 | ||||||||||||||||||||||||
Other comprehensive income | (4,227 | ) | 744 | (3,483 | ) | (871 | ) | (231 | ) | (1,102 | ) | (145 | ) | (346 | ) | (491 | ) | |||||||||||||||||||
10. | Earnings per share |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros, except per share data | ||||||||||||
Numerator for basic earnings per share: | ||||||||||||
Income available to common stockholders(EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004) | 5,020 | 6,126 | 4,736 | |||||||||
Income available to common stockholders (U.S. GAAP): | 4,070 | 5,409 | 4,972 | |||||||||
Numerator for diluted earnings per share: | ||||||||||||
Income available to common stockholders(EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004) | 5,020 | 6,126 | 4,736 | |||||||||
Income available to common stockholders (U.S. GAAP): | 4,070 | 5,409 | 4,972 | |||||||||
Denominator for basic earnings per share | 3,706,000,000 | 3,593,940,198 | 3,405,418,793 | |||||||||
Denominator for diluted earnings per share | 3,706,000,000 | 3,593,940,198 | 3,405,418,793 | |||||||||
EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2004 | ||||||||||||
Basic earnings per share (Euros) | 1.35 | 1.70 | 1.39 | |||||||||
Diluted earnings per share (Euros) | 1.35 | 1.70 | 1.39 | |||||||||
U.S. GAAP | ||||||||||||
Basic earnings per share (Euros) | 1.10 | 1.50 | 1.46 | |||||||||
Diluted earnings per share (Euros) | 1.10 | 1.50 | 1.46 |
11. | FIN 46-R |
• | 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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12. | Statement of Financial Accounting Standards No. 157: “Fair Value Measurement” |
13. | Other Accounting Standards |
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14. | New Accounting Standards |
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B) | CONSOLIDATED FINANCIAL STATEMENTS |
1. | Differences relating to the financial statements presentation — |
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2. | Consolidated Financial Statements underRegulation S-X — |
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CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2008, 2007 AND 2006
(Currency — Millions of Euros)
2008 | 2007 | 2006 | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | 11,862 | 4,982 | 4,779 | |||||||||
Interest-bearing deposits in other banks | 31,831 | 33,727 | 19,294 | |||||||||
Securities purchased under agreements to resell | 6,480 | 6,870 | 7,117 | |||||||||
Trading securities | 75,063 | 63,496 | 52,812 | |||||||||
Investments securities | 53,416 | 53,694 | 48,236 | |||||||||
Net Loans and leases: | ||||||||||||
Loans and leases, net of unearned income | 340,958 | 316,743 | 261,862 | |||||||||
Less: Allowance for loan losses | (7,384 | ) | (5,931 | ) | (4,288 | ) | ||||||
Hedging derivatives | 3,929 | 1,097 | 2,011 | |||||||||
Premises and equipment, net | 6,462 | 4,764 | 3,906 | |||||||||
Investments in affiliated companies | 1,467 | 1,535 | 889 | |||||||||
Intangible assets | 780 | 811 | 466 | |||||||||
Goodwill in consolidation | 15,634 | 15,741 | 11,142 | |||||||||
Accrual accounts | 383 | 604 | 674 | |||||||||
Others assets | 8,693 | 12,436 | 12,071 | |||||||||
Total assets | 549,574 | 510,569 | 420,971 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities | ||||||||||||
Demand deposits | 92,854 | 66,381 | 68,632 | |||||||||
Savings deposits | 46,732 | 40,523 | 36,161 | |||||||||
Time deposits | 166,322 | 133,311 | 101,634 | |||||||||
Due to Bank of Spain | 37 | 8,210 | 4,689 | |||||||||
Trading account liabilities | 43,009 | 19,273 | 14,923 | |||||||||
Hedging derivatives | 1,226 | 1,807 | 2,280 | |||||||||
Short-term borrowings | 61,832 | 56,993 | 52,450 | |||||||||
Long-term debt | 76,302 | 118,128 | 78,848 | |||||||||
Taxes payable | 2,372 | 2,992 | 2,608 | |||||||||
Accounts payable | 7,420 | 6,239 | 6,772 | |||||||||
Accrual accounts | 1,918 | 1,820 | 1,510 | |||||||||
Pension allowance | 6,359 | 5,967 | 6,358 | |||||||||
Other Provisions | 2,319 | 2,374 | 2,291 | |||||||||
Others liabilities | 7,241 | 10,476 | 10,791 | |||||||||
Total liabilities | 515,944 | 474,494 | 389,947 | |||||||||
Minority interest | 886 | 692 | 563 | |||||||||
Stockholders’ equity | ||||||||||||
Capital stock | 1,836 | 1,836 | 1,740 | |||||||||
Additional paid-in capital | 12,770 | 12,770 | 9,580 | |||||||||
Dividends | (1,820 | ) | (1,661 | ) | (1,363 | ) | ||||||
Other capital instruments | (720 | ) | (389 | ) | (147 | ) | ||||||
Retained earnings | 20,679 | 22,828 | 20,651 | |||||||||
Total stockholders’ equity | 32,744 | 35,384 | 30,461 | |||||||||
Total liabilities and stockholders’ equity | 549,574 | 510,569 | 420,971 |
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CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED
DECEMBER 31, 2008, 2007 AND 2006
(Currency — Millions of Euros)
2008 | 2007 | 2006 | ||||||||||
Interest Income | ||||||||||||
Interest and fees on loans and leases | 24,140 | 19,191 | 13,744 | |||||||||
Interest on deposits in other banks | 1,722 | 1,684 | 1,110 | |||||||||
Interest on securities purchased under agreements to resell | 517 | 649 | 383 | |||||||||
Interest on investment securities | 4,479 | 4,176 | 4,353 | |||||||||
Total interest income | 30,859 | 25,700 | 19,590 | |||||||||
Interest Expense | ||||||||||||
Interest on deposits | (12,982 | ) | (8,464 | ) | (5,975 | ) | ||||||
Interest on Bank of Spain&Deposit Guarantee Fund | (368 | ) | (359 | ) | �� | (300 | ) | |||||
Interest on short-term borrowings | (2,168 | ) | (2,078 | ) | (2,180 | ) | ||||||
Interest on long term debt | (3,199 | ) | (5,015 | ) | (2,757 | ) | ||||||
Total interest expense | (18,717 | ) | (15,917 | ) | (11,212 | ) | ||||||
Net Interest Income | 12,141 | 9,783 | 8,378 | |||||||||
Provision for loan losses | (3,956 | ) | (2,832 | ) | (1,031 | ) | ||||||
Net Interest Income after provision for loan losses | 8,186 | 6,951 | 7,347 | |||||||||
Non-interest income | ||||||||||||
Contingent liabilities (collected) | 243 | 229 | 204 | |||||||||
Collection and payments services (collected) | 2,656 | 2,567 | 2,274 | |||||||||
Securities services (collected) | 1,895 | 2,089 | 2,017 | |||||||||
Other transactions (collected) | 746 | 707 | 624 | |||||||||
Ceded to other entities and correspondents (paid) | (662 | ) | (570 | ) | (537 | ) | ||||||
Other transactions (paid) | (326 | ) | (299 | ) | (247 | ) | ||||||
Gains (losses) from: | ||||||||||||
Affiliated companies’ securities | 306 | 252 | 1,293 | |||||||||
Investment securities | 1,579 | 1,751 | 2,729 | |||||||||
Foreign exchange, derivatives and other, net | 382 | 974 | (902 | ) | ||||||||
Other gains (losses) | 3,656 | 2,237 | 1,625 | |||||||||
Total non-interest income | 10,474 | 9,937 | 9,080 | |||||||||
Non-interest expense | ||||||||||||
Salaries and employee benefits | (4,716 | ) | (4,335 | ) | (3,989 | ) | ||||||
Occupancy expense of premise, depreciation and maintenance, net | (1,348 | ) | (986 | ) | (924 | ) | ||||||
General and administrative expenses | (2,423 | ) | (2,198 | ) | (1,891 | ) | ||||||
Impairment of goodwill | — | — | (12 | ) | ||||||||
Net provision for specific allowances | (1,431 | ) | (210 | ) | (1,338 | ) | ||||||
Other expenses | (3,181 | ) | (1,665 | ) | (1,239 | ) | ||||||
Minority shareholder’s interest | (365 | ) | (289 | ) | (240 | ) | ||||||
Total non-interest expense | (13,465 | ) | (9,683 | ) | (9,633 | ) | ||||||
Income Before Income Taxes | 5,194 | 7,205 | 6,794 | |||||||||
Income tax expense | (1,124 | ) | (1,796 | ) | (1,822 | ) | ||||||
Net income | 4,070 | 5,409 | 4,972 | |||||||||
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3. | Consolidated Statements of Changes in Stockholders equity — |
2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Balance at the beginning of the year | 35,384 | 30,461 | 25,375 | |||||||||
Net income for the year | 4,070 | 5,409 | 4,972 | |||||||||
Dividends paid | (1,878 | ) | (2,535 | ) | (1,995 | ) | ||||||
Capital increase | — | 3,288 | 3,000 | |||||||||
Other comprehensive income | (3,488 | ) | (1,101 | ) | (491 | ) | ||||||
Foreign Currency Translation Adjustment | (1,007 | ) | (1,873 | ) | (708 | ) | ||||||
Unrealized Gains on Securities | (2,657 | ) | 487 | 110 | ||||||||
Derivatives Instruments and Hedging Activities (SFAS 133) | 176 | 285 | 107 | |||||||||
Other variations | (1,344 | ) | (138 | ) | (400 | ) | ||||||
Balance at the end of the year | 32,744 | 35,384 | 30,461 | |||||||||
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C) | MAIN DISCLOSURES REQUIRED BY U.S. ACCOUNTING REGULATIONS FOR BANKS AND ADDITIONAL DISCLOSURES REQUIRED UNDER U.S. GAAP |
1. | Investment Securities — |
2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||||||||||||||||||||
DEBT SECURITIES — | ||||||||||||||||||||||||||||||||||||||||||||||||
AVAILABLE FOR SALE PORTFOLIO | ||||||||||||||||||||||||||||||||||||||||||||||||
Domestic- | 11,743 | 11,910 | 229 | (62 | ) | 10,088 | 10,161 | 150 | (77 | ) | 9,221 | 9,494 | 291 | (18 | ) | |||||||||||||||||||||||||||||||||
Spanish Government | 6,233 | 6,371 | 138 | — | 5,226 | 5,274 | 79 | (31 | ) | 6,596 | 6,859 | 279 | (16 | ) | ||||||||||||||||||||||||||||||||||
Other debt securities | 5,510 | 5,539 | 91 | (62 | ) | 4,862 | 4,887 | 71 | (46 | ) | 2,625 | 2,635 | 12 | (2 | ) | |||||||||||||||||||||||||||||||||
International- | 28,108 | 27,920 | 586 | (774 | ) | 26,725 | 27,175 | 737 | (287 | ) | 22,002 | 22,724 | 852 | (130 | ) | |||||||||||||||||||||||||||||||||
United States - | 10,573 | 10,442 | 155 | (286 | ) | 9,051 | 9,056 | 50 | (45 | ) | 5,514 | 5,506 | 13 | (21 | ) | |||||||||||||||||||||||||||||||||
U.S. Treasury and other U.S. Government agencies | 444 | 444 | — | — | 60 | 61 | 1 | — | 342 | 343 | 3 | (2 | ) | |||||||||||||||||||||||||||||||||||
States and political subdivisions | 382 | 396 | 15 | (1 | ) | 515 | 518 | 5 | (2 | ) | 310 | 310 | — | — | ||||||||||||||||||||||||||||||||||
Other debt securities | 9,747 | 9,602 | 140 | (285 | ) | 8,476 | 8,477 | 44 | (43 | ) | 4,862 | 4,853 | 10 | (19 | ) | |||||||||||||||||||||||||||||||||
Other countries - | 17,535 | 17,478 | 431 | (488 | ) | 17,674 | 18,119 | 687 | (242 | ) | 16,488 | 17,218 | 839 | (109 | ) | |||||||||||||||||||||||||||||||||
Securities of other foreign Governments | 9,624 | 9,653 | 261 | (232 | ) | 10,844 | 11,278 | 562 | (128 | ) | 9,858 | 10,386 | 588 | (60 | ) | |||||||||||||||||||||||||||||||||
Other debt securities | 7,911 | 7,825 | 170 | (256 | ) | 6,830 | 6,841 | 125 | (114 | ) | 6,630 | 6,832 | 251 | (49 | ) | |||||||||||||||||||||||||||||||||
TOTAL AVAILABLE FOR SALE PORTFOLIO | 39,851 | 39,830 | 815 | (836 | ) | 36,813 | 37,336 | 887 | (364 | ) | 31,223 | 32,218 | 1,143 | (148 | ) | |||||||||||||||||||||||||||||||||
HELD TO MATURITY PORTFOLIO | ||||||||||||||||||||||||||||||||||||||||||||||||
Domestic- | 2,392 | 2,339 | 7 | (60 | ) | 2,402 | 2,271 | — | (131 | ) | 2,404 | 2,337 | 2 | (69 | ) | |||||||||||||||||||||||||||||||||
Spanish Government | 1,412 | 1,412 | 7 | (7 | ) | 1,417 | 1,349 | — | (68 | ) | 1,417 | 1,378 | 1 | (40 | ) | |||||||||||||||||||||||||||||||||
Other debt securities | 980 | 927 | — | (53 | ) | 985 | 922 | — | (63 | ) | 987 | 959 | 1 | (29 | ) | |||||||||||||||||||||||||||||||||
International- | 2,890 | 2,882 | 25 | (33 | ) | 3,182 | 3,063 | — | (119 | ) | 3,502 | 3,421 | 5 | (86 | ) | |||||||||||||||||||||||||||||||||
TOTAL HELD TO MATURITY PORTFOLIO | 5,282 | 5,221 | 32 | (93 | ) | 5,584 | 5,334 | — | (250 | ) | 5,906 | 5,758 | 7 | (155 | ) | |||||||||||||||||||||||||||||||||
TOTAL DEBT SECURITIES | 45,133 | 45,051 | 847 | (929 | ) | 42,397 | 42,670 | 887 | (614 | ) | 37,129 | 37,976 | 1,150 | (303 | ) | |||||||||||||||||||||||||||||||||
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2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Unrealized | Unrealized | Amortized | Fair | Unrealized | Unrealized | Amortized | Fair | Unrealized | Unrealized | |||||||||||||||||||||||||||||||||||||
Cost | Value(1) | Gains | Losses | Cost | Value(1) | Gains | Losses | Cost | Value(1) | Gains | Losses | |||||||||||||||||||||||||||||||||||||
(Millions of euros) | ||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY SECURITIES — | ||||||||||||||||||||||||||||||||||||||||||||||||
AVAILABLE FOR SALE PORTFOLIO | ||||||||||||||||||||||||||||||||||||||||||||||||
Domestic- | 3,582 | 4,675 | 1,189 | (96 | ) | 3,783 | 7,164 | 3,386 | (5 | ) | 4,564 | 7,381 | 2,817 | — | ||||||||||||||||||||||||||||||||||
Equity listed | 3,545 | 4,639 | 1,189 | (95 | ) | 3,710 | 7,032 | 3,322 | — | 4,525 | 7,342 | 2,817 | — | |||||||||||||||||||||||||||||||||||
Equity Unlisted | 37 | 36 | — | (1 | ) | 73 | 132 | 64 | (5 | ) | 39 | 39 | — | — | ||||||||||||||||||||||||||||||||||
International- | 3,408 | 3,275 | 8 | (141 | ) | 2,841 | 3,932 | 1,115 | (24 | ) | 1,860 | 2,656 | 811 | (15 | ) | |||||||||||||||||||||||||||||||||
United States- | 665 | 654 | — | (11 | ) | 490 | 489 | — | (1 | ) | 53 | 54 | 1 | — | ||||||||||||||||||||||||||||||||||
Equity listed | 39 | 28 | — | (11 | ) | 420 | 419 | — | (1 | ) | 27 | 28 | 1 | — | ||||||||||||||||||||||||||||||||||
Equity Unlisted | 626 | 626 | — | — | 70 | 70 | — | — | 26 | 26 | — | — | ||||||||||||||||||||||||||||||||||||
Other countries- | 2,743 | 2,621 | 8 | (130 | ) | 2,351 | 3,443 | 1,115 | (23 | ) | 1,807 | 2,602 | 810 | (15 | ) | |||||||||||||||||||||||||||||||||
Equity listed | 2,545 | 2,416 | 1 | (130 | ) | 2,242 | 3,346 | 1,127 | (23 | ) | 1,702 | 2,497 | 810 | (15 | ) | |||||||||||||||||||||||||||||||||
Equity Unlisted | 198 | 205 | 7 | — | 109 | 97 | (12 | ) | — | 105 | 105 | — | — | |||||||||||||||||||||||||||||||||||
TOTAL AVAILABLE FOR SALE PORTFOLIO | 6,990 | 7,950 | 1,197 | (237 | ) | 6,624 | 11,096 | 4,501 | (29 | ) | 6,424 | 10,037 | 3,628 | (15 | ) | |||||||||||||||||||||||||||||||||
TOTAL EQUITY SECURITIES | 6,990 | 7,950 | 1,197 | (237 | ) | 6,624 | 11,096 | 4,501 | (29 | ) | 6,424 | 10,037 | 3,628 | (15 | ) | |||||||||||||||||||||||||||||||||
TOTAL INVESTMENT SECURITIES | 52,123 | 53,001 | 2,044 | (1,166 | ) | 49,021 | 53,766 | 5,388 | (643 | ) | 43,553 | 48,026 | 4,778 | (318 | ) | |||||||||||||||||||||||||||||||||
(1) | The Fair Values are determined based on year-end quoted market process for listed securities and on management’s estimate for unlisted securities. |
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2008 | 2007 | 2006 | ||||||||||
Millions of euros | ||||||||||||
Equity securities | (26 | ) | (25 | ) | (50 | ) | ||||||
Debt securities | (176 | ) | (34 | ) | (36 | ) | ||||||
(1) Total impairments other-than-temporary (charged to income under both GAAP) | (202 | ) | (59 | ) | (86 | ) | ||||||
Equity securities | (237 | ) | (29 | ) | (15 | ) | ||||||
Debt securities | (929 | ) | (614 | ) | (303 | ) | ||||||
(2) Total temporary unrealized losses | (1,166 | ) | (643 | ) | (318 | ) | ||||||
(1)+(2) Total losses | (1,368 | ) | (702 | ) | (404 | ) | ||||||
• | They have mainly arisen in a period shorter than one year; | |
• | The decline is attributable solely to adverse interest rate movements; | |
• | The principal and interest payments have been made as scheduled, and there is no evidence that the debtor will not continue to do so; | |
• | The future principal payments will be sufficient to recover the current amortized cost of the security; | |
• | We have the intent to hold the security until maturity or at least until the fair value of the security recovers to a level that exceeds the security’s amortized cost. |
December 31, 2008 | ||||||||||||||||||||
Book Value | ||||||||||||||||||||
Due in | Due After | Due After | ||||||||||||||||||
One Year | One Year to | Five Years to | Due After | |||||||||||||||||
or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
(Millions of euros) | ||||||||||||||||||||
AVAILABLE-FOR-SALE PORTFOLIO(*) | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 342 | 606 | 2,520 | 2,903 | 6,371 | |||||||||||||||
Other debt securities | 1,037 | 3,112 | 192 | 1,198 | 5,539 | |||||||||||||||
Total Domestic | 1,379 | 3,718 | 2,712 | 4,101 | 11,910 | |||||||||||||||
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December 31, 2008 | ||||||||||||||||||||
Book Value | ||||||||||||||||||||
Due in | Due After | Due After | ||||||||||||||||||
One Year | One Year to | Five Years to | Due After | |||||||||||||||||
or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
(Millions of euros) | ||||||||||||||||||||
International | ||||||||||||||||||||
United States | 1,277 | 3,431 | 3,026 | 2,708 | 10,442 | |||||||||||||||
U.S. Treasury and other U.S. government agencies | 61 | 156 | 18 | 209 | 444 | |||||||||||||||
States and political subdivisions | 60 | 121 | 141 | 74 | 396 | |||||||||||||||
Other U.S. securities | 1,156 | 3,154 | 2,867 | 2,425 | 9,602 | |||||||||||||||
Other countries | 3,208 | 5,847 | 4,292 | 4,131 | 17,478 | |||||||||||||||
Securities of other foreign governments | 813 | 3,784 | 3,113 | 1,943 | 9,653 | |||||||||||||||
Other debt securities of other countries | 2,395 | 2,063 | 1,179 | 2,188 | 7,825 | |||||||||||||||
Total International | 4,485 | 9,278 | 7,318 | 6,839 | 27,920 | |||||||||||||||
TOTAL AVAILABLE-FOR-SALE | 5,864 | 12,996 | 10,030 | 10,940 | 39,830 | |||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 168 | 121 | 1,068 | 54 | 1,410 | |||||||||||||||
Other debt securities | 26 | 259 | 566 | 130 | 980 | |||||||||||||||
Total Domestic | 195 | 380 | 1,634 | 184 | 2,390 | |||||||||||||||
Total International | 67 | 944 | 1,652 | 227 | 2,890 | |||||||||||||||
TOTAL HELD-TO-MATURITY | 261 | 1,324 | 3,286 | 413 | 5,282 | |||||||||||||||
TOTAL DEBT SECURITIES | 6,125 | 14,318 | 13,316 | 11,353 | 45,112 | |||||||||||||||
December 31, 2008 | ||||||||||||||||||||
Market Value | ||||||||||||||||||||
Due in | Due After | Due After | ||||||||||||||||||
One Year | One Year to | Five Years to | Due After | |||||||||||||||||
or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
(Millions of euros) | ||||||||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 168 | 121 | 1,068 | 54 | 1,412 | |||||||||||||||
Other debt securities | 25 | 245 | 534 | 123 | 927 | |||||||||||||||
Total Domestic | 193 | 366 | 1,602 | 178 | 2,339 | |||||||||||||||
Total International | 66 | 938 | 1,650 | 228 | 2,882 | |||||||||||||||
TOTAL HELD-TO-MATURITY | 259 | 1,304 | 3,252 | 406 | 5,221 | |||||||||||||||
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December 31, 2007 | ||||||||||||||||||||
Book Value | ||||||||||||||||||||
Due in | Due After | Due After | ||||||||||||||||||
One Year | One Year to | Five Years to | Due After | |||||||||||||||||
or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
(Millions of euros) | ||||||||||||||||||||
AVAILABLE-FOR-SALE PORTFOLIO(*) | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 437 | 796 | 1,062 | 2,980 | 5,274 | |||||||||||||||
Other debt securities | 453 | 2,935 | 326 | 1,173 | 4,887 | |||||||||||||||
Total Domestic | 890 | 3,731 | 1,388 | 4,153 | 10,161 | |||||||||||||||
International | ||||||||||||||||||||
United States | 1,006 | 3,818 | 2,169 | 2,062 | 9,055 | |||||||||||||||
U.S. Treasury and other U.S. government agencies | 14 | 43 | 3 | — | 61 | |||||||||||||||
States and political subdivisions | 54 | 114 | 181 | 169 | 518 | |||||||||||||||
Other U.S. securities | 938 | 3,661 | 1,985 | 1,893 | 8,477 | |||||||||||||||
Other countries | 1,792 | 4,812 | 5,532 | 5,983 | 18,119 | |||||||||||||||
Securities of other foreign governments | 498 | 2,408 | 4,199 | 4,173 | 11,278 | |||||||||||||||
Other debt securities of other countries | 1,294 | 2,404 | 1,333 | 1,810 | 6,841 | |||||||||||||||
Total International | 2,798 | 8,630 | 7,701 | 8,045 | 27,175 | |||||||||||||||
TOTAL AVAILABLE-FOR-SALE | 3,688 | 12,361 | 9,089 | 12,198 | 37,336 | |||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 5 | 292 | 1,066 | 54 | 1,417 | |||||||||||||||
Other debt securities | 4 | 193 | 661 | 127 | 985 | |||||||||||||||
Total Domestic | 9 | 485 | 1,727 | 181 | 2,402 | |||||||||||||||
Total International | 282 | 936 | 1,738 | 227 | 3,182 | |||||||||||||||
TOTAL HELD-TO-MATURITY | 291 | 1,421 | 3,465 | 408 | 5,584 | |||||||||||||||
TOTAL DEBT SECURITIES | 3,979 | 13,782 | 12,554 | 12,606 | 42,921 | |||||||||||||||
December 31, 2007 | ||||||||||||||||||||
Market Value | ||||||||||||||||||||
Due in | Due After | Due After | ||||||||||||||||||
One Year | One Year to | Five Years to | Due After | |||||||||||||||||
or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
(Millions of euros) | ||||||||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 5 | 278 | 1,015 | 52 | 1,349 | |||||||||||||||
Other debt securities | 3 | 180 | 619 | 119 | 922 | |||||||||||||||
Total Domestic | 8 | 458 | 1,634 | 171 | 2,271 | |||||||||||||||
Total International | 271 | 901 | 1,673 | 218 | 3,063 | |||||||||||||||
TOTAL HELD-TO-MATURITY | 279 | 1,359 | 3,307 | 389 | 5,334 | |||||||||||||||
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December 31, 2006 | ||||||||||||||||||||
Book Value | ||||||||||||||||||||
Due in | Due After | Due After | ||||||||||||||||||
One Year | One Year to | Five Years to | Due After | |||||||||||||||||
or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
(Millions of euros) | ||||||||||||||||||||
AVAILABLE-FOR-SALE PORTFOLIO(*) | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | 312 | 1,524 | 1,684 | 3,339 | 6,858 | |||||||||||||||
Other debt securities | 525 | 709 | 540 | 873 | 2,647 | |||||||||||||||
Total Domestic | 837 | 2,233 | 2,224 | 4,212 | 9,505 | |||||||||||||||
International | ||||||||||||||||||||
United States | 716 | 1,356 | 673 | 2,760 | 5,506 | |||||||||||||||
U.S. Treasury and other U.S. government agencies | 31 | 8 | 305 | — | 344 | |||||||||||||||
States and political subdivisions | 21 | 52 | 32 | 204 | 309 | |||||||||||||||
Other U.S. securities | 664 | 1,296 | 336 | 2,556 | 4,853 | |||||||||||||||
Other countries | 1,349 | 5,024 | 5,273 | 5,572 | 17,218 | |||||||||||||||
Securities of other foreign governments | 662 | 2,998 | 3,648 | 3,077 | 10,385 | |||||||||||||||
Other debt securities of other countries | 687 | 2,026 | 1,625 | 2,495 | 6,833 | |||||||||||||||
Total International | 2,065 | 6,380 | 5,946 | 8,332 | 22,724 | |||||||||||||||
TOTAL AVAILABLE-FOR-SALE | 2,902 | 8,613 | 8,170 | 12,544 | 32,229 | |||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | — | 261 | 1,100 | 55 | 1,417 | |||||||||||||||
Other debt securities | — | 129 | 707 | 152 | 987 | |||||||||||||||
Total Domestic | — | 390 | 1,807 | 207 | 2,404 | |||||||||||||||
Total International | 307 | 1,147 | 1,760 | 287 | 3,502 | |||||||||||||||
TOTAL HELD-TO-MATURITY | 307 | 1,537 | 3,567 | 494 | 5,906 | |||||||||||||||
TOTAL DEBT SECURITIES | 3,209 | 10,150 | 11,737 | 13,038 | 38,135 | |||||||||||||||
December 31, 2006 | ||||||||||||||||||||
Market Value | ||||||||||||||||||||
Due in | Due After | Due After | ||||||||||||||||||
One Year | One Year to | Five Years to | Due After | |||||||||||||||||
or Less | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||
(Millions of euros) | ||||||||||||||||||||
HELD-TO-MATURITY PORTFOLIO | ||||||||||||||||||||
Domestic | ||||||||||||||||||||
Spanish government | — | 260 | 1,065 | 52 | 1,378 | |||||||||||||||
Other debt securities | — | 126 | 691 | 142 | 958 | |||||||||||||||
Total Domestic | — | 386 | 1,756 | 194 | 2,336 | |||||||||||||||
�� | ||||||||||||||||||||
Total International | 306 | 1,129 | 1,713 | 273 | 3,421 | |||||||||||||||
TOTAL HELD-TO-MATURITY | 306 | 1,515 | 3,469 | 467 | 5,757 | |||||||||||||||
(*) | As we describe in Note 2.2.1 the book value and market value are the same for “Trading portfolio” and “Available for sale portfolio” |
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• | 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. If it is available a valuation of the company, it is used as a better measure of fair value under both GAAP. |
2. | Loans and Accounting by Creditors for Impairment of a Loan — |
2008 | ||||
Millions of euros | ||||
Impaired loans requiring no reserve | 125 | |||
Impaired loans requiring valuation allowance | 8,312 | |||
Total impaired loans | 8,437 | |||
Valuation allowance on impaired loans | 2,299 | |||
2008 | ||||
Millions of euros | ||||
Interest revenue that would have been recorded if accruing | 1,042 | |||
Net interest revenue recorded | 150 |
3. | Investments in and Indebtedness of and to Affiliates — |
4. | Deposits — |
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5. | Short-Term Borrowings — |
As of December 31, | ||||||||||||||||||||||||
2008 | 2007 | 2006 | ||||||||||||||||||||||
Amount | Average Rate | Amount | Average Rate | Amount | Average Rate | |||||||||||||||||||
(In millions of euro, except %) | ||||||||||||||||||||||||
Securities sold under agreements to repurchase (principally Spanish Treasury bills): | ||||||||||||||||||||||||
As of December 31 | 28,206 | 4.66 | % | 39,902 | 5.20 | % | 37,098 | 4.27 | % | |||||||||||||||
Average during year | 34,729 | 5.62 | % | 42,461 | 5.13 | % | 38,721 | 3.61 | % | |||||||||||||||
Maximum quarter-end balance | 34,202 | — | 44,155 | — | 46,449 | — | ||||||||||||||||||
Bank promissory notes: | ||||||||||||||||||||||||
As of December 31 | 20,061 | 3.70 | % | 5,810 | 3.69 | % | 7,596 | 3.75 | % | |||||||||||||||
Average during year | 15,661 | 4.57 | % | 6,975 | 3.96 | % | 8,212 | 3.16 | % | |||||||||||||||
Maximum quarter-end balance | 20,061 | — | 7,133 | — | 9,036 | — | ||||||||||||||||||
Bonds and Subordinated debt: | ||||||||||||||||||||||||
As of December 31 | 13,565 | 4.66 | % | 11,281 | 4.49 | % | 7,756 | 4.01 | % | |||||||||||||||
Average during year | 12,447 | 5.18 | % | 12,147 | 5.21 | % | 8,076 | 3.74 | % | |||||||||||||||
Maximum quarter-end balance | 15,822 | — | 15,761 | — | 10,872 | — | ||||||||||||||||||
Total short-term borrowings as of December 31 | 61,832 | 4.35 | % | 56,993 | 4.91 | % | 52,450 | 4.16 | % |
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 |
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8. | Pension liabilities — |
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10. | Segment Information — |
11. | Business combination in 2008 — |
12. | FIN 48 — |
In millions of euros | ||||
Total unrecognized tax benefits as of December 31, 2007 | 1,006 | |||
Net amount of increases for current year’s tax positions | 11 | |||
Gross amount of increases for prior years’ tax positions | 124 | |||
Gross amount of decreases for prior years’ tax positions | (4 | ) | ||
Foreign exchange and acquisitions | (1 | ) | ||
Total unrecognized tax benefits as of December 31, 2008 | 1,136 |
In millions of euros | ||||
Total unrecognized tax benefits as of January 1, 2007 | 882 | |||
Net amount of increases for current year’s tax positions | 1 | |||
Gross amount of increases for prior years’ tax positions | 129 | |||
Gross amount of decreases for prior years’ tax positions | (17 | ) | ||
Foreign exchange and acquisitions | 11 | |||
Total unrecognized tax benefits as of December 31, 2007 | 1,006 |
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Jurisdiction | Tax year | |||
Spain | 2004-2008 | |||
United States | 2005-2008 | |||
Puerto Rico | 2003-2008 | |||
Peru | 2005-2008 | |||
Colombia | 2003-2008 | |||
Argentina | 2003-2008 | |||
Venezuela | 2003-2008 | |||
Mexico | 2006-2008 |
13. | Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered |
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2008 | 2007 | |||||||
Millions of euros | ||||||||
ASSETS | ||||||||
CASH AND BALANCES WITH CENTRAL BANKS | 2,687 | 12,216 | ||||||
FINANCIAL ASSETS HELD FOR TRADING | 59,987 | 41,180 | ||||||
Loans and advances to credit institutions | — | — | ||||||
Money market operations through counterparties | — | — | ||||||
Debt securities | 14,953 | 17,006 | ||||||
Other equity instruments | 5,605 | 9,037 | ||||||
Trading derivatives | 39,429 | 15,137 | ||||||
Memorandum item: Loaned and advanced as collateral | 5,012 | 5,919 | ||||||
OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | — | — | ||||||
Loans and advances to credit institutions | — | — | ||||||
Money market operations through counterparties | — | — | ||||||
Debt securities | — | — | ||||||
Other equity instruments | — | — | ||||||
Memorandum item: Loaned and advanced as collateral | — | — | ||||||
AVAILABLE-FOR-SALE FINANCIAL ASSETS | 18,726 | 18,709 | ||||||
Debt securities | 11,873 | 9,142 | ||||||
Other equity instruments | 6,853 | 9,567 | ||||||
Memorandum item: Loaned and advanced as collateral | 7,694 | 2,573 | ||||||
LOANS AND RECEIVABLES | 272,114 | 246,322 | ||||||
Loans and advances to credit institutions | 45,274 | 35,199 | ||||||
Loans and advances to customers | 226,836 | 211,123 | ||||||
Debt securities | 4 | — | ||||||
Memorandum item: Loaned and advanced as collateral | 4,683 | 4,240 | ||||||
HELD-TO-MATURITY INVESTMENTS | 5,282 | 5,584 | ||||||
Memorandum item: Loaned and advanced as collateral | 729 | 2,085 | ||||||
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | — | — | ||||||
HEDGING DERIVATIVES | 3,047 | 779 | ||||||
NON-CURRENT ASSETS HELD FOR SALE | 149 | 49 | ||||||
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2008 | 2007 | |||||||
Millions of euros | ||||||||
INVESTMENTS IN ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 21,668 | 21,668 | ||||||
Associates | 452 | 505 | ||||||
Jointly controlled entities | 4 | 4 | ||||||
Group entities | 21,212 | 21,159 | ||||||
INSURANCE CONTRACTS LINKED TO PENSIONS | 1,996 | 2,004 | ||||||
TANGIBLE ASSETS | 1,895 | 1,870 | ||||||
Property, plants and equipment | 1,884 | 1,859 | ||||||
For own use | 1,884 | 1,859 | ||||||
Other assets leased out under an operating lease | — | — | ||||||
Investment properties | 11 | 11 | ||||||
Memorandum item: Loaned and advanced as collateral | — | — | ||||||
INTANGIBLE ASSETS | 166 | 90 | ||||||
Goodwill | — | — | ||||||
Other intangible assets | 166 | 90 | ||||||
TAX ASSETS | 3,568 | 3,227 | ||||||
Current | 320 | 150 | ||||||
Deferred | 3,248 | 3,077 | ||||||
OTHER ASSETS | 735 | 768 | ||||||
TOTAL ASSETS | 392,020 | 354,466 | ||||||
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2008 | 2007 | |||||||
Millions of euros | ||||||||
LIABILITIES AND EQUITY | ||||||||
FINANCIAL LIABILITIES HELD FOR TRADING | 40,538 | 18,724 | ||||||
Deposits from central banks | — | — | ||||||
Deposits from credit institutions | — | — | ||||||
Deposits from customers | — | — | ||||||
Debt certificates | — | — | ||||||
Trading derivatives | 37,885 | 17,562 | ||||||
Short positions | 2,653 | 1,162 | ||||||
Other financial liabilities | — | — | ||||||
OTHER FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | — | — | ||||||
Deposits from central banks | — | — | ||||||
Deposits from credit institutions | — | — | ||||||
Deposits from customers | — | — | ||||||
Debt certificates | — | — | ||||||
Subordinated liabilities | — | — | ||||||
Other financial liabilities | — | — | ||||||
FINANCIAL LIABILITIES AT AMORTISED COST | 322,197 | 303,051 | ||||||
Deposits from central banks | 13,697 | 22,984 | ||||||
Deposits from credit institutions | 43,972 | 46,852 | ||||||
Deposits from customers | 188,311 | 172,253 | ||||||
Debt certificates | 58,837 | 44,248 | ||||||
Subordinated liabilities | 13,332 | 12,593 | ||||||
Other financial liabilities | 4,048 | 4,121 | ||||||
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | — | — | ||||||
HEDGING DERIVATIVES | 824 | 1,766 - | ||||||
LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | — | — | ||||||
PROVISIONS | 7,071 | 6,637 | ||||||
Provisions for pensions and similar obligations | 5,651 | 5,184 | ||||||
Provisions for taxes | — | — | ||||||
Provisions for contingent exposures and commitments | 387 | 525 | ||||||
Other provisions | 1,033 | 928 | ||||||
TAX LIABILITIES | 633 | 1,715 | ||||||
Current | — | — | ||||||
Deferred | 633 | 1,715 | ||||||
OTHER LIABILITIES | 1,044 | 968 | ||||||
TOTAL LIABILITIES | 372,307 | 332,861 | ||||||
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2008 | 2007 | |||||||
Millions of euros | ||||||||
STOCKHOLDER’S EQUITY | 18,562 | 18,717 | ||||||
Capital | 1,837 | 1,837 | ||||||
Issued | 1,837 | 1,837 | ||||||
Less: Unpaid and uncalled (-) | — | — | ||||||
Share premium | 12,770 | 12,770 | ||||||
Reserves | 3,070 | 2,257 | ||||||
Other equity instruments | 71 | 49 | ||||||
Equity component of compound financial instruments | — | — | ||||||
Other | 71 | 49 | ||||||
Less: Treasury shares | (143 | ) | (129 | ) | ||||
Income | 2,835 | 3,612 | ||||||
Less: Dividends and remuneration | (1,878 | ) | (1,679 | ) | ||||
VALUATION ADJUSTMENTS | 1,151 | 2,888 | ||||||
Available-for-sale financial assets | 937 | 2,950 | ||||||
Cash flow hedges | 141 | (80 | ) | |||||
Hedges of net investments in foreign operations | — | — | ||||||
Exchange differences | 73 | 18 | ||||||
Non-current liabilities held-for-sale | — | — | ||||||
Other valuation adjustments | — | — | ||||||
TOTAL STOCKHOLDERS’ EQUITY | 19,713 | 21,605 | ||||||
TOTAL LIABILITIES AND EQUITY | 392,020 | 354,466 | ||||||
2008 | 2007 | |||||||
Millions of euros | ||||||||
CONTINGENT EXPOSURES | 64,729 | 73,903 | ||||||
CONTINGENT COMMITMENTS | 69,671 | 76,246 | ||||||
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2008 | 2007 | |||||||
Millions of euros | ||||||||
INTEREST AND SIMILAR INCOME | 15,854 | 13,785 | ||||||
�� | ||||||||
INTEREST EXPENSE AND SIMILAR CHARGES | (12,178 | ) | (10,933 | ) | ||||
NET INTEREST INCOME | 3,676 | 2,852 | ||||||
DIVIDEND INCOME | 2,318 | 1,810 | ||||||
FEE AND COMMISSION INCOME | 2,034 | 2,174 | ||||||
FEE AND COMMISSION EXPENSES | (359 | ) | (381 | ) | ||||
NET GAINS (LOSSES) ON FINANCIAL ASSETS AND LIABILITIES | 632 | 872 | ||||||
Held for trading | (2 | ) | 465 | |||||
Other financial instruments designated at fair value through profit or loss | — | — | ||||||
Other financial instruments not designated at fair value through profit or loss | 634 | 407 | ||||||
Other | — | — | ||||||
NET EXCHANGE DIFFERENCES | (20 | ) | 266 | |||||
OTHER OPERATING INCOME | 83 | 95 | ||||||
OTHER OPERATING EXPENSES | (100 | ) | (101 | ) | ||||
GROSS INCOME | 8,264 | 7,587 | ||||||
ADMINISTRATION COSTS | (3,324 | ) | (3,420 | ) | ||||
Personnel expenses | (2,258 | ) | (2,238 | ) | ||||
General and administrative expenses | (1,066 | ) | (1,182 | ) | ||||
DEPRECIATION AND AMORTIZATION | (219 | ) | (209 | ) | ||||
PROVISIONS (NET) | (1,327 | ) | (299 | ) | ||||
IMPAIRMENT (NET) | (996 | ) | (598 | ) | ||||
Loans and receivables | (900 | ) | (602 | ) | ||||
Other financial instruments not designated at fair value through profit or loss | (96 | ) | 4 | |||||
NET OPERATING INCOME | 2,398 | 3,061 | ||||||
IMPAIRMENT ON OTHER ASSETS (NET) | (8 | ) | (18 | ) | ||||
Goodwill and other intangible asset | — | — | ||||||
Other assets | (8 | ) | (18 | ) | ||||
GAINS (LOSSES) IN WRITTEN OF ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE | — | 39 | ||||||
NEGATIVE GOODWILL | — | — | ||||||
GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS | 736 | 1,165 | ||||||
INCOME BEFORE TAX | 3,126 | 4,247 | ||||||
TAX EXPENSE (INCOME) | (291 | ) | (635 | ) | ||||
INCOME FROM CONTINUED OPERATIONS | 2,835 | 3,612 | ||||||
INCOME FROM DISCONTINUED OPERATIONS (NET) | — | — | ||||||
INCOME FOR THE YEAR | 2,835 | 3,612 | ||||||
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Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
Other | Less: | Less: | Total | Total | ||||||||||||||||||||||||||||||||||||
Share | Share | Equity | Treasury | Profit for | Dividend and | Stockholders’ | Valuation | Stockholders’ | ||||||||||||||||||||||||||||||||
Capital | Premium | Reserves | Instruments | Shares | the Year | Remunerations | Equity | Adjustments | Equity | |||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2008 | 1,837 | 12,770 | 2,257 | 49 | 129 | 3,612 | 1,679 | 18,717 | 2,888 | 21,605 | ||||||||||||||||||||||||||||||
Effects of changes in accounting policies | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Effect of correction of errors | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Adjusted initial balance | 1,837 | 12,770 | 2,257 | 49 | 129 | 3,612 | 1,679 | 18,717 | 2,888 | 21,605 | ||||||||||||||||||||||||||||||
Total income/expense recognized | — | — | — | — | — | 2,835 | — | 2,835 | (1,737 | ) | 1,098 | |||||||||||||||||||||||||||||
Other changes in equity | — | — | 813 | 22 | 14 | (3,612 | ) | 199 | (2,990 | ) | — | (2,990 | ) | |||||||||||||||||||||||||||
Increased of capital | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Capital reduction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | 22 | — | — | — | 22 | — | 22 | ||||||||||||||||||||||||||||||
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Dividend distribution | — | — | — | — | — | 1,038 | (1,878 | ) | 2,916 | — | 2,916 | |||||||||||||||||||||||||||||
Transactions including treasury shares and other equity instruments (net) | — | — | (74 | ) | — | 14 | — | — | (88 | ) | — | (88 | ) | |||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 895 | — | — | (2,574 | ) | (1,679 | ) | — | — | — | ||||||||||||||||||||||||||||
Increase/Reduction in business combinations | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Rest of increase/reductions in total equity | — | — | (8 | ) | — | — | — | — | (8 | ) | — | (8 | ) | |||||||||||||||||||||||||||
Balance as of December 31, 2008 | 1,837 | 12,770 | 3,070 | 71 | 143 | 2,835 | 1,878 | 18,562 | 1,151 | 19,713 | ||||||||||||||||||||||||||||||
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Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
Other | Less: | Less: | Total | Total | ||||||||||||||||||||||||||||||||||||
Share | Share | Equity | Treasury | Profit for | Dividend and | Stockholders’ | Valuation | Stockholders’ | ||||||||||||||||||||||||||||||||
Capital | Premium | Reserves | Instruments | Shares | the Year | Remunerations | Equity | Adjustments | Equity | |||||||||||||||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2007 | 1,740 | 9,579 | 2,085 | 26 | 40 | 2,440 | 1,364 | 14,466 | 2,264 | 16,730 | ||||||||||||||||||||||||||||||
Effects of changes in accounting policies | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Effect of correction of errors | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Adjusted initial balance | 1,740 | 9,579 | 2,085 | 26 | 40 | 2,440 | 1,364 | 14,466 | 2,264 | 16,730 | ||||||||||||||||||||||||||||||
Total income/expense recognized | — | — | — | — | — | 3,612 | — | 3,612 | 624 | 4,236 | ||||||||||||||||||||||||||||||
Other changes in equity | 97 | 3,191 | 172 | 23 | 89 | (2,440 | ) | 315 | 639 | — | 639 | |||||||||||||||||||||||||||||
Increased of capital | 97 | 3,191 | (24 | ) | — | — | — | — | 3,264 | — | 3,264 | |||||||||||||||||||||||||||||
Capital reduction | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Conversion of financial liabilities into capital | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Increase of other equity instruments | — | — | — | 23 | — | — | — | 23 | — | 23 | ||||||||||||||||||||||||||||||
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Reclassification of other equity instruments to financial instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Dividend distribution | — | — | — | — | — | 856 | (1,679 | ) | 2,535 | — | 2,535 | |||||||||||||||||||||||||||||
Transactions including treasury shares and other equity instruments (net) | — | — | (24 | ) | — | 89 | — | — | (113 | ) | — | (113 | ) | |||||||||||||||||||||||||||
Transfers between total equity entries | — | — | 220 | — | — | (1,584 | ) | (1,364 | ) | — | — | — | ||||||||||||||||||||||||||||
Increase/Reduction in business combinations | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Payments with equity instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Rest of increase/reductions in total equity | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance as of December 31, 2007 | 1,837 | 12,770 | 2,257 | 49 | 129 | 3,612 | 1,679 | 18,717 | 2,888 | 21,605 |
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FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007 — (Continued)
Changes in Total Equity | 2008 | 2007 | ||||||
Millions of euros | ||||||||
INCOME FOR THE YEAR | 2,835 | 3,612 | ||||||
OTHER RECOGNIZED INCOME (EXPENSES) | (1,737 | ) | 624 | |||||
Available-for-sale financial assets | (2,838 | ) | 1,178 | |||||
Revaluation gains/losses | (1,727 | ) | 1,892 | |||||
Amounts transferred to income statement | (1,111 | ) | (714 | ) | ||||
Reclassifications | — | — | ||||||
Cash flow hedges | 310 | 14 | ||||||
Revaluation gains/losses | 298 | 1 | ||||||
Amounts transferred to income statement | 12 | 13 | ||||||
Amounts transferred to the initial carrying amount of the hedged items | — | — | ||||||
Reclassifications | — | — | ||||||
Hedges of net investment in foreign operations | — | — | ||||||
Revaluation gains/losses | — | — | ||||||
Amounts transferred to income statement | — | — | ||||||
Reclassifications | — | — | ||||||
Exchange differences | 86 | 33 | ||||||
Revaluation gains/losses | 104 | 26 | ||||||
Amounts transferred to income statement | (18 | ) | 7 | |||||
Reclassifications | — | — | ||||||
Non-current assets held for sale | — | — | ||||||
Revaluation gains/losses | — | — | ||||||
Amounts transferred to income statement | — | — | ||||||
Reclassifications | — | — | ||||||
Actuarial gains and losses in post-employment plans | — | — | ||||||
Rest of recognized income and expenses | — | — | ||||||
Income tax | 705 | (601 | ) | |||||
TOTAL INCOME AND EXPENSES FOR THE YEAR | 1,098 | 4,236 | ||||||
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2008 | 2007 | |||||||
Millions of euros | ||||||||
CASH FLOW FROM OPERATING ACTIVITIES(1) | (7,399 | ) | 14,838 | |||||
Profit for the year | 2,835 | 3,612 | ||||||
Adjustments to obtain the cash flow from operating activities: | (2,232 | ) | 318 | |||||
Depreciation and amortization | 219 | 209 | ||||||
Other adjustments | (2,451 | ) | 109 | |||||
Net increase/decrease in operating assets | 46,475 | 37,923 | ||||||
Financial assets held for trading | 18,807 | 5,325 | ||||||
Other financial assets designated at fair value through profit or loss | — | — | ||||||
Available-for-sale financial assets | (754 | ) | 816 | |||||
Loans and receivables | 25,792 | 33,492 | ||||||
Other operating assets | 2,630 | (1,710 | ) | |||||
Net increase/decrease in operating liabilities | 38,182 | 48,196 | ||||||
Financial liabilities | 21,814 | 5,066 | ||||||
Other financial liabilities designated at fair value through profit or loss | — | — | ||||||
Financial liabilities measured at amortised cost | 18,351 | 44,378 | ||||||
Other operating liabilities | (1,983 | ) | (1,248 | ) | ||||
Collection/Payments for income tax | 291 | 635 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES(2) | (217 | ) | (6,799 | ) | ||||
Investment | 1,491 | 8,973 | ||||||
Tangible assets | 282 | 266 | ||||||
Intangible assets | 112 | 51 | ||||||
Investments in entities accounted for using the equity method | 696 | 7,890 | ||||||
Subsidiaries and other business units | — | — | ||||||
Non-current assets held for sale and associated liabilities | 131 | 47 | ||||||
Held-to-maturity investments | — | — | ||||||
Other payments related to investing activities | 270 | 719 | ||||||
Divestments | 1,274 | 2,174 | ||||||
Tangible assets | 14 | 10 | ||||||
Intangible assets | — | — | ||||||
Investments in entities accounted for using the equity method | 7 | 43 | ||||||
Subsidiaries and other business units | — | — | ||||||
Non- current assets held for sale and associated liabilities | 949 | 1,821 | ||||||
Held-to-maturity investments | 284 | 300 | ||||||
Other collections related to investing activities | 20 | — | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES(3) | (1,912 | ) | 908 | |||||
Investment | 11,360 | 16,755 | ||||||
Dividends | 2,860 | 2,434 | ||||||
Subordinated liabilities | 600 | 2,320 | ||||||
Amortization of own equity instruments | — | — | ||||||
Acquisition of own equity instruments | 7,900 | 12,001 | ||||||
Other items relating to financing activities | — | — | ||||||
Divestments | 9,448 | 17,663 | ||||||
Subordinated liabilities | 1,295 | 2,442 | ||||||
Issuance of own equity instruments | — | 3,263 | ||||||
Disposal of own equity instruments | 7,747 | 11,888 | ||||||
Other items relating to financing activities | 406 | 70 | ||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH OR CASH EQUIVALENTS(4) | (1 | ) | 5 | |||||
NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS (1+2+3+4) | (9,529 | ) | 8,952 | |||||
CASH OR CASH EQUIVALENTS AT BEGINNING OF YEAR | 12,216 | 3,264 | ||||||
CASH OR CASH EQUIVALENTS AT END OF YEAR | 2,687 | 12,216 | ||||||
Cash | 668 | 630 | ||||||
Balance of cash equivalent in central banks | 2,019 | 11,586 | ||||||
Other financial assets | — | — | ||||||
Less:bank overdraft refundable on demand | — | — | ||||||
TOTAL CASH OR CASH EQUIVALENTS AT END OF YEAR | 2,687 | 12,216 | ||||||
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ADDITIONAL INFORMATION ON CONSOLIDATED SUBSIDIARIES
COMPOSING THE BANCO BILBAO VIZCAYA ARGENTARIA GROUP
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | For the | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of euros (*) | ||||||||||||||||||||||||||||||||||||
AAI HOLDINGS, INC | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
ADMINISTRAD. DE FONDOS PARA EL RETIRO-BANCOMER,S.A DE C.V. | MEXICO | PENSIONS | 17.50 | 82.50 | 100.00 | 302,164 | 151,825 | 28,044 | 84,131 | 39,650 | ||||||||||||||||||||||||||
ADMINISTRADORA DE FONDOS DE PENSIONES PROVIDA(AFP PROVIDA) | CHILE | PENSIONS | 12.70 | 51.62 | 64.32 | 191,473 | 340,987 | 76,787 | 279,565 | (15,365 | ) | |||||||||||||||||||||||||
AFP GENESIS ADMINISTRADORA DE FONDOS, S.A. | ECUADOR | PENSIONS | 0.00 | 100.00 | 100.00 | 3,249 | 5,747 | 2,532 | 1,031 | 2,184 | ||||||||||||||||||||||||||
AFP HORIZONTE, S.A. | PERU | PENSIONS | 24.85 | 75.15 | 100.00 | 33,616 | 56,826 | 19,912 | 34,530 | 2,384 | ||||||||||||||||||||||||||
AFP PREVISION BBV-ADM.DE FONDOS DE PENSIONES S.A. | BOLIVIA | PENSIONS | 75.00 | 5.00 | 80.00 | 2,063 | 12,687 | 6,121 | 3,786 | 2,780 | ||||||||||||||||||||||||||
ALMACENES GENERALES DE DEPOSITO, S.A.E. DE | SPAIN | PORTFOLIO | 83.90 | 16.10 | 100.00 | 12,649 | 113,131 | 2,997 | 103,795 | 6,339 | ||||||||||||||||||||||||||
ALTITUDE INVESTMENTS LIMITED | UNITED KINGDOM | FINANCIAL SERV. | 51.00 | — | 51.00 | 225 | 992 | 753 | 1,016 | (777 | ) | |||||||||||||||||||||||||
ALTURA MARKETS, SOCIEDAD DE VALORES, S.A. | SPAIN | SECURITIES | 50.00 | — | 50.00 | 5,000 | 1,491,084 | 1,463,685 | 12,041 | 15,358 | ||||||||||||||||||||||||||
ANIDA CARTERA SINGULAR, S.L | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | — | 260 | — | 5,260 | (5,000 | ) | |||||||||||||||||||||||||
ANIDA DESARROLLOS INMOBILIARIOS, S.L | SPAIN | REAL STATE | — | 100.00 | 100.00 | 112,477 | 250,890 | 85,910 | 166,877 | (1,897 | ) | |||||||||||||||||||||||||
ANIDA DESARROLLOS SINGULARES, S.L | SPAIN | REAL ESTATE INSTR. | — | 100.00 | 100.00 | — | 594,494 | 610,811 | 4,964 | (21,281 | ) | |||||||||||||||||||||||||
ANIDA GERMANIA IMMOBILIEN ONE, GMBH | ALEMANIA | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 4,099 | 19,658 | 15,567 | 8,328 | (4,237 | ) | |||||||||||||||||||||||||
ANIDA GRUPO INMOBILIARIO, S.L | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 198,357 | 667,126 | 94,755 | 499,998 | 72,373 | ||||||||||||||||||||||||||
ANIDA INMOBILIARIA, S.A. DE C.V. | MEXICO | PORTFOLIO | — | 100.00 | 100.00 | 91,316 | 72,965 | 72 | 73,424 | (531 | ) | |||||||||||||||||||||||||
ANIDA OPERACIONES SINGULARES, S.L | SPAIN | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 3 | 1,649,249 | 1,650,489 | 3 | (1,243 | ) | |||||||||||||||||||||||||
ANIDA PROYECTOS INMOBILIARIOS, S.A. DE C.V. | MEXICO | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 72,012 | 102,069 | 30,058 | 72,729 | (718 | ) | |||||||||||||||||||||||||
ANIDA SERVICIOS INMOBILIARIOS, S.A. DE C.V. | MEXICO | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 793 | 1,008 | 211 | 537 | 260 | ||||||||||||||||||||||||||
APLICA SOLUCIONES ARGENTINAS, S.A. | ARGENTINA | SERVICES | — | 100.00 | 100.00 | 1,538 | 3,639 | 1,925 | 1,468 | 246 | ||||||||||||||||||||||||||
APLICA SOLUCIONES GLOBALES, S.L | SPAIN | SERVICES | 94.98 | 5.02 | 100.00 | 60 | 66,128 | 67,329 | 288 | (1,489 | ) | |||||||||||||||||||||||||
APLICA TECNOLOGIA AVANZADA, S.A. DE C.V. | MEXICO | SERVICES | 100.00 | — | 100.00 | 4 | 38,817 | 38,101 | 2,966 | (2,250 | ) | |||||||||||||||||||||||||
APOYO MERCANTIL S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 777 | 120,708 | 119,931 | 3,040 | (2,263 | ) | |||||||||||||||||||||||||
ARAGON CAPITAL, S.L | SPAIN | PORTFOLIO | 99.90 | 0.10 | 100.00 | 37,925 | 32,901 | 98 | 31,819 | 984 | ||||||||||||||||||||||||||
ARIZONA FINANCIAL PRODUCTS, INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 661,400 | 666,141 | 4,741 | 642,442 | 18,958 | ||||||||||||||||||||||||||
ARIZONA KACHINA HOLDINGS, INC | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
ATREA HOMES IN SPAIN LTD | UNITED KINGDOM | NO ACTIVITY | — | 100.00 | 100.00 | — | 11 | 351 | (340 | ) | — | |||||||||||||||||||||||||
ATUEL FIDEICOMISOS, S.A. | ARGENTINA | SERVICES | — | 100.00 | 100.00 | 6,269 | 6,288 | 18 | 5,607 | 663 |
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% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | For the | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of Euros (*) | ||||||||||||||||||||||||||||||||||||
AUTOMERCANTIL-COMERCIO E ALUGER DE VEICULOS AUTOM., LDA | PORTUGAL | FINANCIAL SERV. | — | 100.00 | 100.00 | 7,209 | 60,301 | 50,960 | 9,449 | (108 | ) | |||||||||||||||||||||||||
BAHIA SUR RESORT, S.C | SPAIN | NO ACTIVITY | 99.95 | — | 99.95 | 1,436 | 1,438 | 15 | 1,423 | — | ||||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA (PANAMA), S.A. | PANAMA | BANKING | 54.11 | 44.81 | 98.92 | 19,464 | 1,193,426 | 1,036,611 | 128,625 | 28,190 | ||||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA (PORTUGAL), S.A. | PORTUGAL | BANKING | 9.52 | 90.48 | 100.00 | 278,916 | 6,903,307 | 6,662,510 | 223,477 | 17,320 | ||||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA CHILE, S.A. | CHILE | BANKING | 55.97 | 12.21 | 68.18 | 303,531 | 8,587,405 | 8,075,856 | 456,634 | 54,915 | ||||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA PUERTO RICO | PUERTO RICO | BANKING | — | 100.00 | 100.00 | 99,693 | 4,317,976 | 3,952,085 | 342,472 | 23,419 | ||||||||||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA URUGUAY, S.A. | URUGUAY | BANKING | 100.00 | — | 100.00 | 17,049 | 489,055 | 450,065 | 30,031 | 8,959 | ||||||||||||||||||||||||||
BANCO CONTINENTAL, S.A. | PERU | BANKING | — | 92.08 | 92.08 | 470,732 | 7,698,528 | 7,187,325 | 342,406 | 168,797 | ||||||||||||||||||||||||||
BANCO DE CREDITO LOCAL, S.A. | SPAIN | BANKING | 100.00 | — | 100.00 | 509,594 | 11,311,890 | 11,166,097 | 58,905 | 86,888 | ||||||||||||||||||||||||||
BANCO DE PROMOCION DE NEGOCIOS, S.A. | SPAIN | BANKING | — | 99.82 | 99.82 | 15,151 | 33,869 | 392 | 32,410 | 1,067 | ||||||||||||||||||||||||||
BANCO DEPOSITARIO BBVA, S.A. | SPAIN | BANKING | — | 100.00 | 100.00 | 1,595 | 898,558 | 805,258 | 48,510 | 44,790 | ||||||||||||||||||||||||||
BANCO INDUSTRIAL DE BILBAO, S.A. | SPAIN | BANKING | — | 99.93 | 99.93 | 97,220 | 291,669 | 15,740 | 219,664 | 56,265 | ||||||||||||||||||||||||||
BANCO OCCIDENTAL, S.A. | SPAIN | BANKING | 49.43 | 50.57 | 100.00 | 15,812 | 17,423 | 365 | 16,431 | 627 | ||||||||||||||||||||||||||
BANCO PROVINCIAL OVERSEAS N.V. | NETHERLANDS ANTILLES | BANKING | — | 100.00 | 100.00 | 26,801 | 426,998 | 400,530 | 19,006 | 7,462 | ||||||||||||||||||||||||||
BANCO PROVINCIAL S.A. — BANCO UNIVERSAL | VENEZUELA | BANKING | 1.85 | 53.75 | 55.60 | 153,859 | 9,495,115 | 8,582,684 | 564,493 | 347,938 | ||||||||||||||||||||||||||
BANCOMER FINANCIAL SERVICES INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 1,903 | 663 | (1,240 | ) | 1,914 | (11 | ) | ||||||||||||||||||||||||
BANCOMER FOREIGN EXCHANGE INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 4,201 | 5,772 | 1,571 | 2,940 | 1,261 | ||||||||||||||||||||||||||
BANCOMER PAYMENT SERVICES INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 38 | 28 | (10 | ) | 41 | (3 | ) | ||||||||||||||||||||||||
BANCOMER TRANSFER SERVICES, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 17,228 | 68,836 | 51,607 | 8,236 | 8,993 | ||||||||||||||||||||||||||
BANKERS INVESTMENT SERVICES, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 637 | 679 | 42 | 630 | 7 | ||||||||||||||||||||||||||
BBV AMERICA, S.L. | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 479,328 | 889,260 | — | 695,890 | 193,370 | ||||||||||||||||||||||||||
BBV SECURITIES HOLDINGS, S.A. | SPAIN | PORTFOLIO | 99.86 | 0.14 | 100.00 | 13,327 | 47,941 | 29,648 | 16,159 | 2,134 | ||||||||||||||||||||||||||
BBVA & PARTNERS ALTERNATIVE INVESTMENT A.V., S.A. | SPAIN | SECURITIES | 70.00 | — | 70.00 | 1,331 | 12,592 | 6,753 | 4,165 | 1,674 | ||||||||||||||||||||||||||
BBVA ADMINISTRADORA GENERAL DE FONDOS S.A. | CHILE | FINANCIAL SERV. | — | 100.00 | 100.00 | 18,388 | 19,309 | 919 | 16,714 | 1,676 | ||||||||||||||||||||||||||
BBVA ASESORIAS FINANCIERAS, S.A. | CHILE | FINANCIAL SERV. | — | 98.60 | 98.60 | 13,973 | 14,531 | 359 | 13,335 | 837 | ||||||||||||||||||||||||||
BBVA ASSET MANAGEMENT, S.A., SGIIC | SPAIN | FINANCIAL SERV. | 17.00 | 83.00 | 100.00 | 11,436 | 209,515 | 122,872 | 21,589 | 65,054 | ||||||||||||||||||||||||||
BBVA BANCO DE FINANCIACION S.A. | SPAIN | BANKING | — | 100.00 | 100.00 | 64,200 | 5,765,224 | 5,692,947 | 70,808 | 1,469 | ||||||||||||||||||||||||||
BBVA BANCO FRANCES, S.A. | ARGENTINA | BANKING | 45.65 | 30.35 | 76.00 | 40,139 | 4,486,157 | 4,064,180 | 353,683 | 68,294 | ||||||||||||||||||||||||||
BBVA BANCOMER ASSET MANAGEMENT INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
BBVA BANCOMER FINANCIAL HOLDINGS, INC | UNITED STATES | PORTFOLIO | — | 100.00 | 100.00 | 40,350 | 37,567 | (2,746 | ) | 39,394 | 919 | |||||||||||||||||||||||||
BBVA BANCOMER GESTION, S.A. DE C.V. | MEXICO | FINANCIAL SERV. | — | 99.99 | 99.99 | 22,245 | 37,892 | 15,643 | 6,910 | 15,339 | ||||||||||||||||||||||||||
BBVA BANCOMER HOLDINGS CORPORATION | UNITED STATES | PORTFOLIO | — | 100.00 | 100.00 | 9,835 | 9,835 | — | 7,490 | 2,345 |
II-2
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% of Voting Rights | ||||||||||||||||||||||||||||||||||||
controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | For the | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of Euros (*) | ||||||||||||||||||||||||||||||||||||
BBVA BANCOMER OPERADORA, S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 108,236 | 280,141 | 171,905 | (9,550 | ) | 117,786 | |||||||||||||||||||||||||
BBVA BANCOMER SERVICIOS ADMINISTRATIVOS, S.A. DE C.V. | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 954 | 6,155 | 5,201 | 514 | 440 | ||||||||||||||||||||||||||
BBVA BANCOMER SERVICIOS, S.A. | MEXICO | BANKING | — | 100.00 | 100.00 | 453,310 | 475,676 | 22,366 | 350,078 | 103,232 | ||||||||||||||||||||||||||
BBVA BANCOMER USA | UNITED STATES | BANKING | — | 100.00 | 100.00 | 7,103 | 93,620 | 86,518 | 15,855 | (8,753 | ) | |||||||||||||||||||||||||
BBVA BANCOMER, S.A. DE C.V. | MEXICO | BANKING | — | 100.00 | 100.00 | 4,181,301 | 59,174,003 | 54,982,771 | 3,068,463 | 1,122,769 | ||||||||||||||||||||||||||
BBVA BRASIL BANCO DE INVESTIMENTO, S.A. | BRASIL | BANKING | 100.00 | — | 100.00 | 16,166 | 30,830 | 4,872 | 23,971 | 1,987 | ||||||||||||||||||||||||||
BBVA BROKER, CORREDURIA DE SEGUROS Y REASEGUROS, S.A. | SPAIN | FINANCIAL SERV. | 99.94 | 0.06 | 100.00 | 297 | 23,116 | 2,768 | 15,005 | 5,343 | ||||||||||||||||||||||||||
BBVA CAPITAL FINANCE, S.A. | SPAIN | FINANCIAL SERV. | 100.00 | — | 100.00 | 60 | 3,001,677 | 3,001,455 | 198 | 24 | ||||||||||||||||||||||||||
BBVA CAPITAL FUNDING, LTD. | CAYMAN ISLANDS | FINANCIAL SERV. | 100.00 | — | 100.00 | — | 1,174,864 | 1,173,183 | 1,713 | (32 | ) | |||||||||||||||||||||||||
BBVA CARTERA DE INVERSIONES,SICAV,S.A. | SPAIN | VARIABLE CAPITAL | 100.00 | — | 100.00 | 118,445 | 111,651 | 108 | 113,870 | (2,327 | ) | |||||||||||||||||||||||||
BBVA COLOMBIA, S.A. | COLOMBIA | BANKING | 76.20 | 19.23 | 95.43 | 263,965 | 6,505,196 | 5,937,078 | 442,448 | 125,670 | ||||||||||||||||||||||||||
BBVA COMERCIALIZADORA LTDA | CHILE | FINANCIAL SERV. | — | 100.00 | 100.00 | (282 | ) | 195 | 476 | 54 | (335 | ) | ||||||||||||||||||||||||
BBVA CONSOLIDAR SEGUROS, S.A. | ARGENTINA | INSURANCES | 87.78 | 12.22 | 100.00 | 6,514 | 39,656 | 23,060 | 11,168 | 5,428 | ||||||||||||||||||||||||||
BBVA CONSULTORIA, S.A. | SPAIN | SERVICES | — | 100.00 | 100.00 | 2,227 | 2,186 | 38 | 3,479 | (1,331 | ) | |||||||||||||||||||||||||
BBVA CORREDORA TECNICA DE SEGUROS BHIF LTDA | CHILE | FINANCIAL SERV. | — | 100.00 | 100.00 | 21,994 | 23,626 | 1,630 | 17,459 | 4,537 | ||||||||||||||||||||||||||
BBVA CORREDORES DE BOLSA, S.A. | CHILE | SECURITIES | — | 100.00 | 100.00 | 22,740 | 160,243 | 137,505 | 20,782 | 1,956 | ||||||||||||||||||||||||||
BBVA DINERO EXPRESS, S.A.U | SPAIN | FINANCIAL SERV. | 100.00 | — | 100.00 | 2,186 | 9,658 | 5,505 | 3,444 | 709 | ||||||||||||||||||||||||||
BBVAE-COMMERCE, S.A. | SPAIN | SERVICES | 100.00 | — | 100.00 | 30,879 | 35,235 | — | 33,281 | 1,954 | ||||||||||||||||||||||||||
BBVA FACTORING E.F.C., S.A. | SPAIN | FINANCIAL SERV. | — | 100.00 | 100.00 | 126,447 | 6,786,041 | 6,523,179 | 228,768 | 34,094 | ||||||||||||||||||||||||||
BBVA FACTORING LIMITADA | CHILE | FINANCIAL SERV. | — | 100.00 | 100.00 | 2,807 | 17,326 | 14,520 | 3,216 | (410 | ) | |||||||||||||||||||||||||
BBVA FIDUCIARIA , S.A. | COLOMBIA | FINANCIAL SERV. | — | 99.99 | 99.99 | 9,956 | 11,305 | 1,346 | 7,150 | 2,809 | ||||||||||||||||||||||||||
BBVA FINANCE (UK), LTD. | UNITED KINGDOM | FINANCIAL SERV. | — | 100.00 | 100.00 | 3,324 | 23,168 | 13,145 | 9,703 | 320 | ||||||||||||||||||||||||||
BBVA FINANCE SPA. | ITALY | FINANCIAL SERV. | 100.00 | — | 100.00 | 4,648 | 5,460 | 447 | 4,963 | 50 | ||||||||||||||||||||||||||
BBVA FINANCIAMIENTO AUTOMOTRIZ, S.A. | CHILE | PORTFOLIO | — | 100.00 | 100.00 | 85,607 | 85,696 | 89 | 75,949 | 9,658 | ||||||||||||||||||||||||||
BBVA FINANZIA, S.P.A | ITALY | FINANCIAL SERV. | 50.00 | 50.00 | 100.00 | 36,465 | 447,794 | 434,679 | 26,269 | (13,154 | ) | |||||||||||||||||||||||||
BBVA FUNDOS, S.G. DE FUNDOS DE PENSOES, S.A. | PORTUGAL | FINANCIAL SERV. | — | 100.00 | 100.00 | 998 | 5,525 | 570 | 3,319 | 1,636 | ||||||||||||||||||||||||||
BBVA GEST, S.G. DE FUNDOS DE INVESTIMENTO MOBILIARIO, S.A. | PORTUGAL | FINANCIAL SERV. | — | 100.00 | 100.00 | 998 | 6,842 | 523 | 4,965 | 1,354 | ||||||||||||||||||||||||||
BBVA GLOBAL FINANCE LTD. | CAYMAN ISLANDS | FINANCIAL SERV. | 100.00 | 0.00 | 100.00 | — | 586,894 | 583,286 | 3,437 | 171 | ||||||||||||||||||||||||||
BBVA GLOBAL MARKETS RESEARCH, S.A. | SPAIN | FINANCIAL SERV. | 99.99 | 0.01 | 100.00 | 501 | 4,728 | 3,196 | 1,479 | 53 | ||||||||||||||||||||||||||
BBVA HORIZONTE PENSIONES Y CESANTIAS, S.A. | COLOMBIA | PENSIONS | 78.52 | 21.43 | 99.95 | 36,879 | 72,698 | 18,157 | 45,713 | 8,828 | ||||||||||||||||||||||||||
BBVA INMOBILIARIA E INVERSIONES S.A. | CHILE | REAL ESTATE INSTR. | — | 68.11 | 68.11 | 3,893 | 21,428 | 15,713 | 6,581 | (866 | ) |
II-3
Table of Contents
ADDITIONAL INFORMATION ON CONSOLIDATED SUBSIDIARIES
COMPOSING THE BANCO BILBAO VIZCAYA ARGENTARIA GROUP — (Continued)
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | For The | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of euros (*) | ||||||||||||||||||||||||||||||||||||
BBVA INSERVEX, S.A. | SPAIN | SERVICES | 100.00 | — | 100.00 | 1,205 | 2,447 | 262 | 1,442 | 743 | ||||||||||||||||||||||||||
BBVA INSTITUIÇAO FINANCEI.CREDITO, S.A. | PORTUGAL | FINANCIAL SERV. | — | 100.00 | 100.00 | 43,626 | 396,129 | 359,727 | 34,556 | 1,846 | ||||||||||||||||||||||||||
BBVA INTERNATIONAL INVESTMENT CORPORATION | PUERTO RICO | FINANCIAL SERV. | 100.00 | — | 100.00 | 2,769,952 | 2,143,991 | 29 | 1,525,791 | 618,171 | ||||||||||||||||||||||||||
BBVA INTERNATIONAL LIMITED | CAYMAN ISLANDS | FINANCIAL SERV. | 100.00 | — | 100.00 | 1 | 509,587 | 507,027 | 2,699 | (139 | ) | |||||||||||||||||||||||||
BBVA INTERNATIONAL PREFERRED, S.A.U | SPAIN | FINANCIAL SERV. | 100.00 | — | 100.00 | 60 | 1,929,850 | 1,929,623 | 124 | 103 | ||||||||||||||||||||||||||
BBVA INVERSIONES CHILE, S.A. | CHILE | FINANCIAL SERV. | 36.65 | 63.35 | 100.00 | 306,854 | 374,617 | 8,633 | 375,143 | (9,159 | ) | |||||||||||||||||||||||||
BBVA INVESTMENTS, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 10,921 | 12,191 | 1,270 | 8,315 | 2,606 | ||||||||||||||||||||||||||
BBVA IRELAND PUBLIC LIMITED COMPANY | IRELAND | FINANCIAL SERV. | 100.00 | — | 100.00 | 180,381 | 2,302,336 | 1,980,247 | 300,774 | 21,315 | ||||||||||||||||||||||||||
BBVA LEASIMO — SOCIEDADE DE LOCAÇAO FINANCEIRA, S.A. | PORTUGAL | FINANCIAL SERV. | — | 100.00 | 100.00 | 11,576 | 42,560 | 32,227 | 10,222 | 111 | ||||||||||||||||||||||||||
BBVA LEASING S.A. COMPAÑÍA DE FINANCIAMIENTO COMERCIAL | COLOMBIA | FINANCIAL SERV. | — | 100.00 | 100.00 | 16,295 | 52,254 | 35,942 | 15,971 | 341 | ||||||||||||||||||||||||||
BBVA LUXINVEST, S.A. | LUXEMBOURG | PORTFOLIO | 36.00 | 64.00 | 100.00 | 255,843 | 1,529,677 | 86,200 | 1,408,176 | 35,301 | ||||||||||||||||||||||||||
BBVA MEDIACION OPERADOR DE BANCA-SEGUROS VINCULADO, S.A. | SPAIN | FINANCIAL SERV. | — | 100.00 | 100.00 | 60 | 89,356 | 77,387 | 6,061 | 5,908 | ||||||||||||||||||||||||||
BBVA NOMINEES LIMITED | UNITED KINGDOM | SERVICES | 100.00 | — | 100.00 | — | 1 | — | 1 | — | ||||||||||||||||||||||||||
BBVA PARAGUAY, S.A. | PARAGUAY | BANKING | 99.99 | — | 99.99 | 22,598 | 625,831 | 569,516 | 31,422 | 24,893 | ||||||||||||||||||||||||||
BBVA PARTICIPACIONES INTERNACIONAL, S.L. | SPAIN | PORTFOLIO | 92.69 | 7.31 | 100.00 | 273,365 | 345,195 | 2,768 | 332,119 | 10,308 | ||||||||||||||||||||||||||
BBVA PATRIMONIOS GESTORA SGIIC, S.A. | SPAIN | FINANCIAL SERV. | 99.98 | 0.02 | 100.00 | 3,907 | 51,584 | 4,157 | 40,143 | 7,284 | ||||||||||||||||||||||||||
BBVA PENSIONES, SA, ENTIDAD GESTORA DE FONDOS DE PENSIONES | SPAIN | PENSIONS | 100.00 | — | 100.00 | 12,922 | 74,573 | 34,419 | 25,938 | 14,216 | ||||||||||||||||||||||||||
BBVA PLANIFICACION PATRIMONIAL, S.L | SPAIN | FINANCIAL SERV. | 80.00 | 20.00 | 100.00 | 1 | 514 | 10 | 485 | 19 | ||||||||||||||||||||||||||
BBVA PRIVANZA (JERSEY), LTD. | CHANNEL ISLANDS | NO ACTIVITY OTHER INVESTMENTS | — | 100.00 | 100.00 | 20,610 | 21,759 | 10 | 17,638 | 4,111 | ||||||||||||||||||||||||||
BBVA PROPIEDAD F.I.I | SPAIN | COMPANIES, | — | 95.65 | 95.65 | 1,522,714 | 1,655,365 | 75,248 | 1,573,328 | 6,789 | ||||||||||||||||||||||||||
BBVA PUERTO RICO HOLDING CORPORATION | PUERTO RICO | PORTFOLIO | 100.00 | — | 100.00 | 255,804 | 100,177 | 8 | 100,217 | (48 | ) | |||||||||||||||||||||||||
BBVA RE LIMITED | IRELAND | INSURANCES | — | 100.00 | 100.00 | 656 | 48,632 | 30,913 | 13,215 | 4,504 | ||||||||||||||||||||||||||
BBVA RENTING, S.A. | SPAIN | FINANCIAL SERV. | — | 100.00 | 100.00 | 20,976 | 789,704 | 695,902 | 90,792 | 3,010 | ||||||||||||||||||||||||||
BBVA RENTING, SPA | ITALY | SERVICES | — | 100.00 | 100.00 | 1,925 | 36,750 | 35,569 | 1,797 | (616 | ) | |||||||||||||||||||||||||
BBVA SECURITIES INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 30,267 | 26,039 | 4,574 | 20,913 | 552 | ||||||||||||||||||||||||||
BBVA SECURITIES OF PUERTO RICO, INC. | PUERTO RICO | FINANCIAL SERV. | 100.00 | — | 100.00 | 4,726 | 5,831 | 503 | 4,820 | 508 | ||||||||||||||||||||||||||
BBVA SEGUROS COLOMBIA , S.A. | COLOMBIA | INSURANCES | 94.00 | 6.00 | 100.00 | 9,259 | 32,225 | 19,671 | 10,447 | 2,107 |
II-4
Table of Contents
ADDITIONAL INFORMATION ON CONSOLIDATED SUBSIDIARIES
COMPOSING THE BANCO BILBAO VIZCAYA ARGENTARIA GROUP — (Continued)
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | For The | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of euros (*) | ||||||||||||||||||||||||||||||||||||
BBVA SEGUROS DE VIDA COLOMBIA, S.A. | COLOMBIA | INSURANCES | 94.00 | 6.00 | 100.00 | 13,242 | 183,692 | 153,770 | 25,787 | 4,135 | ||||||||||||||||||||||||||
BBVA SEGUROS DE VIDA, S.A. | CHILE | INSURANCES | — | 100.00 | 100.00 | 24,840 | 308,595 | 283,754 | 24,977 | (136 | ) | |||||||||||||||||||||||||
BBVA SEGUROS INC. | PUERTO RICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 180 | 3,384 | 661 | 1,851 | 872 | ||||||||||||||||||||||||||
BBVA SEGUROS, S.A., DE SEGUROS Y REASEGUROS | SPAIN | INSURANCES | 94.30 | 5.64 | 99.94 | 414,525 | 11,474,162 | 10,523,770 | 692,709 | 257,683 | ||||||||||||||||||||||||||
BBVA SENIOR FINANCE, S.A.U. | SPAIN | FINANCIAL SERV. | 100.00 | — | 100.00 | 60 | 11,704,747 | 11,704,466 | 378 | (97 | ) | |||||||||||||||||||||||||
BBVA SERVICIOS, S.A. | SPAIN | SERVICES | — | 100.00 | 100.00 | 354 | 19,174 | 5,497 | 5,440 | 8,237 | ||||||||||||||||||||||||||
BBVA SOCIEDAD DE LEASING INMOBILIARIO, S.A. | CHILE | FINANCIAL SERV. | — | 97.49 | 97.49 | 9,063 | 36,224 | 26,926 | 8,786 | 512 | ||||||||||||||||||||||||||
BBVA SUBORDINATED CAPITAL S.A.U. | SPAIN | FINANCIAL SERV. | 100.00 | — | 100.00 | 130 | 3,930,607 | 3,930,373 | 324 | (90 | ) | |||||||||||||||||||||||||
BBVA SUIZA, S.A. (BBVA SWITZERLAND) | SUIZA | BANKING | 39.72 | 60.28 | 100.00 | 55,795 | 951,366 | 645,983 | 295,139 | 10,244 | ||||||||||||||||||||||||||
BBVA TRADE, S.A. | SPAIN | SERVICES | — | 100.00 | 100.00 | 6,379 | 19,177 | 11,054 | 4,882 | 3,241 | ||||||||||||||||||||||||||
BBVA U.S.SENIOR S.A.U | SPAIN | FINANCIAL SERV. | 100.00 | — | 100.00 | 132 | 5,061,163 | 5,060,986 | 182 | (5 | ) | |||||||||||||||||||||||||
BBVA USA BANCSHARES, INC | UNITED STATES | PORTFOLIO | 100.00 | — | 100.00 | 9,417,869 | 9,076,103 | 8,472 | 9,326,607 | (258,976 | ) | |||||||||||||||||||||||||
BBVA VALORES COLOMBIA, S.A. COMISIONISTA DE BOLSA | COLOMBIA | SECURITIES | — | 100.00 | 100.00 | 3,405 | 3,991 | 582 | 2,570 | 839 | ||||||||||||||||||||||||||
BBVA(SUIZA) S.A. OFICINA DE REPRESENTACION | URUGUAY | BANKING | — | 100.00 | 100.00 | 11 | 2,264 | 2,253 | 11 | — | ||||||||||||||||||||||||||
BCL INTERNATIONAL FINANCE, LTD. | CAYMAN ISLANDS | FINANCIAL SERV. | — | 100.00 | 100.00 | — | 112,943 | 112,939 | 15 | (11 | ) | |||||||||||||||||||||||||
BEXCARTERA, SICAV S.A. | SPAIN | NO ACTIVITY | — | 80.78 | 80.78 | 9,352 | 13,526 | 72 | 13,454 | — | ||||||||||||||||||||||||||
BIBJ MANAGEMENT, LTD. | CHANNEL ISLANDS | NO ACTIVITY | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
BIBJ NOMINEES, LTD. | CHANNEL ISLANDS | NO ACTIVITY | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
BILBAO VIZCAYA AMERICA B.V | PAISES BAJOS | PORTFOLIO | — | 100.00 | 100.00 | 756,000 | 483,360 | 189 | 402,089 | 81,082 | ||||||||||||||||||||||||||
BILBAO VIZCAYA HOLDING, S.A. | SPAIN | PORTFOLIO | 89.00 | 11.00 | 100.00 | 34,771 | 201,339 | 6,681 | 187,190 | 7,468 | ||||||||||||||||||||||||||
BLUE INDICO INVESTMENTS, S.L | SPAIN | PORTFOLIO | 99.99 | 0.01 | 100.00 | 18,221 | 51,060 | 1 | 49,865 | 1,194 | ||||||||||||||||||||||||||
BROOKLINE INVESTMENTS,S.L | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 33,969 | 32,395 | 524 | 31,897 | (26 | ) | |||||||||||||||||||||||||
C B TRANSPORT ,INC | UNITED STATES | SERVICES | — | 100.00 | 100.00 | 14,450 | 17,862 | 3,411 | 16,231 | (1,780 | ) | |||||||||||||||||||||||||
CANAL COMPANY, LTD. | CHANNEL ISLANDS | NO ACTIVITY | — | 100.00 | 100.00 | 26 | 793 | 7 | 763 | 23 | ||||||||||||||||||||||||||
CAPITAL INVESTMENT COUNSEL, INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 19,439 | 20,937 | 1,498 | 18,533 | 906 | ||||||||||||||||||||||||||
CARTERA E INVERSIONES S.A., CIA DE | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 60,541 | 217,651 | 48,160 | 68,236 | 101,255 | ||||||||||||||||||||||||||
CASA DE BOLSA BBVA BANCOMER, S.A. DE C.V. | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 54,497 | 67,976 | 13,476 | 16,195 | 38,305 | ||||||||||||||||||||||||||
CASA DE CAMBIO MULTIDIVISAS, S.A DE C.V. | MEXICO | NO ACTIVITY | — | 100.00 | 100.00 | 145 | 145 | — | 143 | 2 | ||||||||||||||||||||||||||
CENTRAL BANK OF THE SOUTH | UNITED STATES | BANKING | — | 100.00 | 100.00 | 1,176 | 3,709 | 2,534 | 1,144 | 31 |
II-5
Table of Contents
ADDITIONAL INFORMATION ON CONSOLIDATED SUBSIDIARIES
COMPOSING THE BANCO BILBAO VIZCAYA ARGENTARIA GROUP — (Continued)
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | For The | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of euros (*) | ||||||||||||||||||||||||||||||||||||
CIA. GLOBAL DE MANDATOS Y REPRESENTACIONES, S.A. | URUGUAY | NO ACTIVITY | — | 100.00 | 100.00 | 108 | 180 | 2 | 178 | — | ||||||||||||||||||||||||||
CIDESSA DOS, S.L. | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | 11,602 | 11,925 | 127 | 11,613 | 185 | ||||||||||||||||||||||||||
CIDESSA UNO, S.L. | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | 4,754 | 690,939 | 109 | 248,054 | 442,776 | ||||||||||||||||||||||||||
CIERVANA, S.L. | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 53,164 | 68,947 | 2,442 | 55,428 | 11,077 | ||||||||||||||||||||||||||
COMPASS AUTO RECEIVABLES CORPORATION | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 3,002 | 3,003 | 1 | 3,005 | (3 | ) | |||||||||||||||||||||||||
COMERCIALIZADORA CORPORATIVA SAC | PERU | FINANCIAL SERV. | — | 99.99 | 99.99 | 120 | 272 | 151 | 114 | 7 | ||||||||||||||||||||||||||
COMERCIALIZADORA DE SERVICIOS FINANCIEROS, S.A. | COLOMBIA | SERVICES | — | 99.98 | 99.98 | 96 | 206 | 111 | 97 | (2 | ) | |||||||||||||||||||||||||
COMPASS ARIZONA ACQUISITION, CORP. | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
COMPASS ASSET ACCEPTANCE COMPANY, LLC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 341,239 | 341,569 | 329 | 326,948 | 14,292 | ||||||||||||||||||||||||||
COMPASS BANCSHARES, INC. | UNITED STATES | PORTFOLIO | — | 100.00 | 100.00 | 9,058,349 | 9,358,516 | 300,166 | 9,314,819 | (256,469 | ) | |||||||||||||||||||||||||
COMPASS BANK | UNITED STATES | BANKING | — | 100.00 | 100.00 | 9,101,163 | 46,842,954 | 37,741,791 | 9,348,126 | (246,963 | ) | |||||||||||||||||||||||||
COMPASS BROKERAGE, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 22,919 | 24,358 | 1,438 | 18,734 | 4,186 | ||||||||||||||||||||||||||
COMPASS CAPITAL MARKETS, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 5,138,466 | 5,138,466 | — | 5,003,740 | 134,726 | ||||||||||||||||||||||||||
COMPASS CONSULTING & BENEFITS, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 12,121 | 12,705 | 583 | 11,562 | 560 | ||||||||||||||||||||||||||
COMPASS CUSTODIAL SERVICES, INC. | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
COMPASS FIDUCIARY SERVICES, LTD., INC. | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 9 | 9 | 1 | 9 | (1 | ) | |||||||||||||||||||||||||
COMPASS FINANCIAL CORPORATION | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 6,512 | 51,683 | 45,170 | 7,099 | (586 | ) | |||||||||||||||||||||||||
COMPASS GP,INC | UNITED STATES | PORTFOLIO | — | 100.00 | 100.00 | 32,458 | 41,091 | 8,633 | 31,855 | 603 | ||||||||||||||||||||||||||
COMPASS INSURANCE AGENCY, INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 118,981 | 132,232 | 13,249 | 110,076 | 8,907 | ||||||||||||||||||||||||||
COMPASS INVESTMENTS, INC | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
COMPASS LIMITED PARTNER, INC | UNITED STATES | PORTFOLIO | — | 100.00 | 100.00 | 4,444,607 | 4,444,607 | 1 | 4,329,440 | 115,166 | ||||||||||||||||||||||||||
COMPASS LOAN HOLDINGS TRS, INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 55,768 | 58,210 | 2,442 | 55,259 | 509 | ||||||||||||||||||||||||||
COMPASS MORTAGE CORPORATION | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 1,830,203 | 1,831,372 | 1,169 | 1,782,160 | 48,043 | ||||||||||||||||||||||||||
COMPASS MORTGAGE FINANCING, INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 25 | 25 | — | 25 | — | ||||||||||||||||||||||||||
COMPASS MULTISTATE SERVICES CORPORATION | UNITED STATES | SERVICES | — | 100.00 | 100.00 | 2,695 | 2,761 | 66 | 2,695 | — | ||||||||||||||||||||||||||
COMPASS SECURITIES, INC | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
COMPASS SOUTHWEST, LP | UNITED STATES | BANKING | — | 100.00 | 100.00 | 3,629,145 | 3,630,558 | 1,413 | 3,529,350 | 99,795 | ||||||||||||||||||||||||||
COMPASS TEXAS ACQUISITION CORPORATION | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1,627 | 1,643 | 17 | 1,626 | — | ||||||||||||||||||||||||||
COMPASS TEXAS MORTGAGE FINANCING, INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 25 | 25 | — | 25 | — | ||||||||||||||||||||||||||
COMPASS TRUST II | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | — | 1 | — | 1 | — | ||||||||||||||||||||||||||
COMPASS UNDERWRITERS, INC | UNITED STATES | INSURANCES | — | 100.00 | 100.00 | 147 | 147 | 1 | 141 | 5 | ||||||||||||||||||||||||||
COMPASS WEALTH MANAGERS COMPANY | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — |
II-6
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | For The | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of euros (*) | ||||||||||||||||||||||||||||||||||||
COMPAÑIA CHILENA DE INVERSIONES, S.L | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 232,976 | 173,294 | 2,295 | 171,112 | (113 | ) | |||||||||||||||||||||||||
COMUNIDAD FINANCIERA ÍNDICO, S.L | SPAIN | SERVICES | — | 100.00 | 100.00 | 349 | 495 | 128 | 350 | 17 | ||||||||||||||||||||||||||
CONSOLIDAR A.F.J.P., S.A. | ARGENTINA | PENSIONS | 46.11 | 53.89 | 100.00 | 52,900 | 58,868 | 9,629 | 56,570 | (7,331 | ) | |||||||||||||||||||||||||
CONSOLIDAR ASEGURADORA DE RIESGOS DEL TRABAJO, S.A. | ARGENTINA | INSURANCES | 87.50 | 12.50 | 100.00 | 32,598 | 166,487 | 131,121 | 26,102 | 9,264 | ||||||||||||||||||||||||||
CONSOLIDAR CIA. DE SEGUROS DE RETIRO, S.A. | ARGENTINA | INSURANCES | 33.33 | 66.67 | 100.00 | 14,224 | 538,662 | 517,328 | 17,838 | 3,496 | ||||||||||||||||||||||||||
CONSOLIDAR CIA. DE SEGUROS DE VIDA, S.A. | ARGENTINA | INSURANCES | 34.04 | 65.96 | 100.00 | 27,225 | 47,184 | 4,010 | 40,378 | 2,796 | ||||||||||||||||||||||||||
CONSOLIDAR COMERCIALIZADORA, S.A. | ARGENTINA | FINANCIAL SERV. | — | 100.00 | 100.00 | 553 | 3,817 | 3,265 | 935 | (383 | ) | |||||||||||||||||||||||||
CONTINENTAL BOLSA, SDAD. AGENTE DE BOLSA S.A. | PERU | SECURITIES | — | 100.00 | 100.00 | 3,860 | 6,395 | 2,535 | 2,688 | 1,172 | ||||||||||||||||||||||||||
CONTINENTAL DPR FINANCE COMPANY | CAYMAN ISLANDS | FINANCIAL SERV. | — | 100.00 | 100.00 | — | 182,651 | 182,651 | — | — | ||||||||||||||||||||||||||
CONTINENTAL S.A. SOCIEDAD ADMINISTRADORA DE FONDOS | PERU | FINANCIAL SERV. | — | 100.00 | 100.00 | 5,021 | 6,303 | 1,284 | 4,469 | 550 | ||||||||||||||||||||||||||
CONTINENTAL SOCIEDAD TITULIZADORA, S.A. | PERU | FINANCIAL SERV. | — | 100.00 | 100.00 | 414 | 453 | 37 | 392 | 24 | ||||||||||||||||||||||||||
CONTRATACION DE PERSONAL, S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 1,280 | 8,150 | 6,871 | 346 | 933 | ||||||||||||||||||||||||||
CORPORACION DE ALIMENTACION Y BEBIDAS, S.A. | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | 138,508 | 164,531 | 2,409 | 157,487 | 4,635 | ||||||||||||||||||||||||||
CORPORACION GENERAL FINANCIERA, S.A. | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 452,431 | 1,432,107 | 11,784 | 1,400,480 | 19,843 | ||||||||||||||||||||||||||
CORPORACION INDUSTRIAL Y DE SERVICIOS, S.L | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | 1,251 | 5,573 | 577 | 4,870 | 126 | ||||||||||||||||||||||||||
DESARROLLADORA Y VENDEDORA DE CASAS, S.A. DE C.V. | MEXICO | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 17 | 17 | — | 22 | (5 | ) | |||||||||||||||||||||||||
DESARROLLO URBANISTICO DE CHAMARTIN, S.A. | SPAIN | REAL STATE | — | 72.50 | 72.50 | 29,330 | 59,259 | 17,074 | 42,167 | 18 | ||||||||||||||||||||||||||
DESITEL TECNOLOGIA Y SISTEMAS, S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 1,299 | 1,345 | 45 | 1,147 | 153 | ||||||||||||||||||||||||||
DEUSTO, S.A. DE INVERSION MOBILIARIA | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | 11,492 | 17,074 | 1,544 | 15,176 | 354 | ||||||||||||||||||||||||||
DINERO EXPRESS SERVICIOS GLOBALES, S.A. | SPAIN | FINANCIAL SERV. | 100.00 | — | 100.00 | 10,421 | 3,807 | 19,850 | 6,238 | (22,281 | ) | |||||||||||||||||||||||||
EL ENCINAR METROPOLITANO, S.A. | SPAIN | REAL STATE | — | 98.92 | 98.92 | 5,641 | 9,057 | 3,495 | 5,266 | 296 | ||||||||||||||||||||||||||
EL OASIS DE LAS RAMBLAS, S.L | SPAIN | REAL STATE | — | 70.00 | 70.00 | 167 | 493 | 340 | 135 | 18 | ||||||||||||||||||||||||||
ELANCHOVE, S.A. | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 1,500 | 3,878 | 1,541 | 2,413 | (76 | ) | |||||||||||||||||||||||||
EMPRESA INSTANT CREDIT, C.A | VENEZUELA | NO ACTIVITY | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
ESPANHOLA COMERCIAL E SERVIÇOS, LTDA | BRASIL | FINANCIAL SERV. | 100.00 | — | 100.00 | — | 1,585 | 267 | 6,031 | (4,713 | ) | |||||||||||||||||||||||||
ESTACION DE AUTOBUSES CHAMARTIN, S.A. | SPAIN | SERVICES | — | 51.00 | 51.00 | 31 | 30 | — | 31 | (1 | ) | |||||||||||||||||||||||||
EUROPEA DE TITULIZACION, S.A., SDAD.GEST.DE FDOS.DE TITUL | SPAIN | FINANCIAL SERV. | 85.99 | — | 85.99 | 1,815 | 11,599 | 1,337 | 6,162 | 4,100 | ||||||||||||||||||||||||||
EXPLOTACIONES AGROPECUARIAS VALDELAYEGUA, S.A. | SPAIN | REAL STATE | — | 100.00 | 100.00 | 9,121 | 9,128 | 8 | 9,361 | (241 | ) | |||||||||||||||||||||||||
FIDEIC. No.711, EN BANCO INVEX, S.A. INSTITUCION DE BANCA MÚLTIPLE, INVEX GRUPO FINANCIERO, FIDUCIARIO | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | — | 124,766 | 122,022 | (2,700 | ) | 5,444 | |||||||||||||||||||||||||
FIDEICOMISO29764-8 SOCIO LIQUIDADOR POSICION DE TERCEROS | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 28,422 | 28,970 | 549 | 25,746 | 2,675 |
II-7
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | For The | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of euros (*) | ||||||||||||||||||||||||||||||||||||
FIDEICOMISO 474031 MANEJO DE GARANTIAS | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 2 | 2 | — | 2 | — | ||||||||||||||||||||||||||
FIDEICOMISO BBVA BANCOMER SERVICIOS No F/47433-8, S.A. | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 32,442 | 51,540 | 19,099 | 23,289 | 9,152 | ||||||||||||||||||||||||||
FIDEICOMISO INVEX 228 | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
FIDEICOMISO INVEX 367 | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
FIDEICOMISO INVEX 393 | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
FIDEICOMISO INVEX 411 | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
FIDEICOMISO No.402900-5 ADMINISTRACION DE INMUEBLES | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 2,631 | 2,580 | — | 2,580 | — | ||||||||||||||||||||||||||
FIDEICOMISO No.752 EN BANCO INVEX, S.A.,INSTITUCION DE BANCA MULTIPLE, INVEX GRUPO FINANCIERO, FIDUCIARIO | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | — | 55,999 | 55,067 | (170 | ) | 1,102 | |||||||||||||||||||||||||
FIDEICOMISO No.781en BANCO INVEX, S.A.,INSTITUCION DE BANCA MULTIPLE, INVEX GRUPO FINANCIERO, FIDUCIARIO (FIDEIC. 3ra EMISION) | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | — | 287,718 | 296,867 | 1,653 | (10,802 | ) | |||||||||||||||||||||||||
FIDEICOMISO No.847 EN BANCO INVEX, S.A.,INSTITUCION DE BANCA MULTIPLE, INVEX GRUPO FINANCIERO, FIDUCIARIO (FIDEIC. 4a EMISION) | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 25.00 | 301,319 | 305,535 | 790 | (5,006 | ) | |||||||||||||||||||||||||
FIDEICOMISO SOCIO LIQUIDADOR DE OP.FINANC.DERIVADAS | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 16,692 | 17,476 | 784 | 15,833 | 859 | ||||||||||||||||||||||||||
FINANCEIRA DO COMERCIO EXTERIOR S.A.R | PORTUGAL | NO ACTIVITY | 100.00 | — | 100.00 | 51 | 37 | — | 44 | (7 | ) | |||||||||||||||||||||||||
FINANCIERA AYUDAMOS S.A. DE C.V., SOFOMER | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 4,616 | 4,960 | 345 | 5,092 | (477 | ) | |||||||||||||||||||||||||
FINANCIERA ESPAÑOLA, S.A. | SPAIN | PORTFOLIO | 85.85 | 14.15 | 100.00 | 4,522 | 6,812 | 1 | 6,654 | 157 | ||||||||||||||||||||||||||
FINANZIA AUTORENTING, S.A. | SPAIN | SERVICES | — | 100.00 | 100.00 | 33,561 | 651,086 | 642,804 | 21,454 | (13,172 | ) | |||||||||||||||||||||||||
FINANZIA, BANCO DE CREDITO, S.A. | SPAIN | BANKING | — | 100.00 | 100.00 | 56,203 | 7,403,407 | 7,245,109 | 162,626 | (4,328 | ) | |||||||||||||||||||||||||
FIRS TIER CORPORATION | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
FRANCES ADMINISTRADORA DE INVERSIONES, S.A. | ARGENTINA | FINANCIAL SERV. | — | 100.00 | 100.00 | 5,912 | 9,521 | 3,610 | 5,220 | 691 | ||||||||||||||||||||||||||
FRANCES VALORES SOCIEDAD DE BOLSA, S.A. | ARGENTINA | FINANCIAL SERV. | — | 100.00 | 100.00 | 2,133 | 2,652 | 519 | 1,550 | 583 | ||||||||||||||||||||||||||
FUTURO FAMILIAR, S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 191 | 483 | 293 | 124 | 66 | ||||||||||||||||||||||||||
FW CAPITAL I | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
GENTE BBVA, S.A. | CHILE | FINANCIAL SERV. | — | 100.00 | 100.00 | (243 | ) | 5,790 | 6,034 | 55 | (299 | ) | ||||||||||||||||||||||||
GESTION DE PREVISION Y PENSIONES, S.A. | SPAIN | PENSIONS | 60.00 | — | 60.00 | 8,830 | 26,532 | 2,123 | 20,873 | 3,536 | ||||||||||||||||||||||||||
GESTION Y ADMINISTRACION DE RECIBOS, S.A. | SPAIN | SERVICES | — | 100.00 | 100.00 | 150 | 2,763 | 876 | 1,182 | 705 | ||||||||||||||||||||||||||
GOBERNALIA GLOBAL NET, S.A. | SPAIN | SERVICES | — | 100.00 | 100.00 | 947 | 2,491 | 1,188 | 1,396 | (93 | ) | |||||||||||||||||||||||||
GRAN JORGE JUAN, S.A. | SPAIN | REAL STATE | 100.00 | — | 100.00 | 110,115 | 494,296 | 411,493 | 101,894 | (19,091 | ) | |||||||||||||||||||||||||
GRANFIDUCIARIA | COLOMBIA | FINANCIAL SERV. | — | 90.00 | 90.00 | — | 245 | 108 | 158 | (21 | ) |
II-8
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% of voting rights | ||||||||||||||||||||||||||||||||||||
controlled by the bank | Investee data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | for the | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | period ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of Euros (*) | ||||||||||||||||||||||||||||||||||||
GRELAR GALICIA, S.A. | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | 4,500 | 4,687 | — | 4,500 | 187 | ||||||||||||||||||||||||||
GRUPO FINANCIERO BBVA BANCOMER, S.A. DE C.V. | MEXICO | FINANCIAL SERV. | 48.97 | 51.00 | 99.97 | 6,050,885 | 5,603,415 | 820 | 4,013,560 | 1,589,035 | ||||||||||||||||||||||||||
HIPOTECARIA NACIONAL MEXICANA INCORPORATED | UNITED STATES | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 206 | 315 | 110 | 105 | 100 | ||||||||||||||||||||||||||
HIPOTECARIA NACIONAL, S.A. DE C.V. | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 202,262 | 219,458 | 17,195 | 139,766 | 62,497 | ||||||||||||||||||||||||||
HOLDING CONTINENTAL, S.A. | PERU | PORTFOLIO | 50.00 | — | 50.00 | 123,678 | 504,399 | 83 | 347,754 | 156,562 | ||||||||||||||||||||||||||
HOLDING DE PARTICIPACIONES INDUSTRIALES 2000, S.A. | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | 3,618 | 4,470 | — | 4,321 | 149 | ||||||||||||||||||||||||||
HOMEOWNERS LOAN CORPORATION | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 7,684 | 8,987 | 1,302 | 5,974 | 1,711 | ||||||||||||||||||||||||||
HUMAN RESOURCES PROVIDER | UNITED STATES | SERVICES | — | 100.00 | 100.00 | 1,131,354 | 1,131,402 | 48 | 1,093,050 | 38,304 | ||||||||||||||||||||||||||
HUMAN RESOURCES SUPPORT, INC | UNITED STATES | SERVICES | — | 100.00 | 100.00 | 1,130,007 | 1,133,128 | 3,121 | 1,091,845 | 38,162 | ||||||||||||||||||||||||||
HYDROX HOLDINGS, INC. | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
IBERDROLA SERVICIOS FINANCIEROS, E.F.C, S.A. | SPAIN | FINANCIAL SERV. | — | 84.00 | 84.00 | 7,290 | 9,641 | 74 | 9,334 | 233 | ||||||||||||||||||||||||||
IBERNEGOCIO DE TRADE, S.L. | SPAIN | SERVICES | — | 100.00 | 100.00 | 1,586 | 1,737 | 150 | 16,662 | (15,075 | ) | |||||||||||||||||||||||||
INENSUR BRUNETE, S.L. | SPAIN | REAL STATE | — | 100.00 | 100.00 | 48,715 | 105,290 | 82,553 | 23,504 | (767 | ) | |||||||||||||||||||||||||
INGENIERIA EMPRESARIAL MULTIBA, S.A. DE C.V. | MEXICO | SERVICES | — | 99.99 | 99.99 | — | — | — | — | — | ||||||||||||||||||||||||||
INMOBILIARIA ASUDI, S.A. | SPAIN | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 2,886 | 3,239 | — | 3,092 | 147 | ||||||||||||||||||||||||||
INMOBILIARIA BILBAO, S.A. | SPAIN | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 3,657 | 3,812 | 1 | 3,658 | 153 | ||||||||||||||||||||||||||
INMUEBLES Y RECUPERACIONES CONTINENTAL, S.A. | PERU | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 3,586 | 7,252 | 3,668 | 219 | 3,365 | ||||||||||||||||||||||||||
INVERAHORRO, S.L. | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 474 | 520 | 3 | 502 | 15 | ||||||||||||||||||||||||||
INVERSIONES ALDAMA, C.A. | VENEZUELA | NO ACTIVITY | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
INVERSIONES BANPRO INTERNATIONAL INC. N.V. | NETHERLANDS ANTILLES | PORTFOLIO | 48.00 | — | 48.00 | 11,390 | 29,312 | 1,050 | 20,747 | 7,515 | ||||||||||||||||||||||||||
INVERSIONES BAPROBA, C.A. | VENEZUELA | FINANCIAL SERV. | 100.00 | — | 100.00 | 1,307 | 1,159 | 230 | 706 | 223 | ||||||||||||||||||||||||||
INVERSIONES P.H.R.4, C.A. | VENEZUELA | NO ACTIVITY | — | 60.46 | 60.46 | — | 50 | — | 50 | — | ||||||||||||||||||||||||||
INVERSIONES T, C.A. | VENEZUELA | NO ACTIVITY | — | 100.00 | 100.00 | — | — | — | — | — | ||||||||||||||||||||||||||
INVERSORA OTAR, S.A. | ARGENTINA | PORTFOLIO | — | 99.96 | 99.96 | 2,156 | 40,876 | 25 | 37,083 | 3,768 | ||||||||||||||||||||||||||
INVESCO MANAGEMENT No 1, S.A. | LUXEMBOURG | FINANCIAL SERV. | — | 100.00 | 100.00 | 10,016 | 10,480 | 494 | 10,945 | (959 | ) | |||||||||||||||||||||||||
INVESCO MANAGEMENT No 2, S.A. | LUXEMBOURG | FINANCIAL SERV. | — | 100.00 | 100.00 | — | 11,334 | 19,021 | (6,108 | ) | (1,579 | ) | ||||||||||||||||||||||||
JARDINES DE SARRIENA, S.L. | SPAIN | REAL STATE | — | 85.00 | 85.00 | 255 | 503 | 165 | 369 | (31 | ) |
II-9
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% of voting rights | ||||||||||||||||||||||||||||||||||||
controlled by the bank | Investee data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | for the | |||||||||||||||||||||||||||||||||
carrying | as of | as of | Equity | period ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of Euros (*) | ||||||||||||||||||||||||||||||||||||
LIQUIDITY ADVISORS, L.P | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 851,032 | 853,671 | 2,639 | 834,089 | 16,943 | ||||||||||||||||||||||||||
MAGGIORE FLEET, S.P.A. | ITALY | SERVICES | — | 100.00 | 100.00 | 67,785 | 202,340 | 166,006 | 34,869 | 1,465 | ||||||||||||||||||||||||||
MARINA LLAR, S.L. | SPAIN | REAL STATE | — | 100.00 | 100.00 | 19,071 | 58,547 | 39,476 | 19,796 | (725 | ) | |||||||||||||||||||||||||
MARQUES DE CUBAS 21, S.L. | SPAIN | REAL STATE | 100.00 | — | 100.00 | 2,869 | 7,551 | 5,727 | 2,105 | (281 | ) | |||||||||||||||||||||||||
MEDITERRANIA DE PROMOCIONS I GESTIONS INMOBILIARIES, S.A. | SPAIN | NO ACTIVITY | — | 100.00 | 100.00 | 779 | 1,391 | 193 | 776 | 422 | ||||||||||||||||||||||||||
MEGABANK FINANCIAL CORPORATION | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
MERCURY TRUST LIMITED | CAYMAN ISLANDS | FINANCIAL SERV. | — | 100.00 | 100.00 | 3,786 | 3,820 | 38 | 3,857 | (75 | ) | |||||||||||||||||||||||||
MILANO GESTIONI, SRL. | ITALY | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 46 | 4,184 | 3,816 | 350 | 18 | ||||||||||||||||||||||||||
MIRADOR DE LA CARRASCOSA, S.L. | SPAIN | REAL STATE | — | 55.90 | 55.90 | 9,724 | 34,572 | 17,518 | 17,062 | (8 | ) | |||||||||||||||||||||||||
MISAPRE, S.A. DE C.V. | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 9,793 | 17,890 | 8,463 | 6,912 | 2,515 | ||||||||||||||||||||||||||
MONESTERIO DESARROLLOS, S.L. | SPAIN | REAL STATE | — | 100.00 | 100.00 | 20,000 | 56,323 | 36,506 | 19,820 | (3 | ) | |||||||||||||||||||||||||
MONTEALIAGA,S.A. | SPAIN | REAL STATE | — | 100.00 | 100.00 | 21,154 | 101,228 | 74,417 | 20,056 | 6,755 | ||||||||||||||||||||||||||
MULTIASISTENCIA OPERADORA S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 32 | 614 | 582 | 25 | 7 | ||||||||||||||||||||||||||
MULTIASISTENCIA SERVICIOS S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 17 | 1,059 | 1,042 | 57 | (40 | ) | |||||||||||||||||||||||||
MULTIASISTENCIA, S.A. DE C.V. | MEXICO | �� | SERVICES | — | 100.00 | 100.00 | 8,298 | 17,808 | 8,473 | 6,651 | 2,684 | |||||||||||||||||||||||||
MULTIVAL, S.A. | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | 67 | 234 | 136 | 104 | (6 | ) | |||||||||||||||||||||||||
OCCIVAL, S.A. | SPAIN | NO ACTIVITY | 100.00 | — | 100.00 | 8,211 | 9,950 | 132 | 9,495 | 323 | ||||||||||||||||||||||||||
OPCION VOLCAN, S.A. | MEXICO | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 49,153 | 53,520 | 4,366 | 45,741 | 3,413 | ||||||||||||||||||||||||||
OPPLUS OPERACIONES Y SERVICIOS, S.A. | SPAIN | SERVICES | 100.00 | — | 100.00 | 1,067 | 13,264 | 10,926 | 975 | 1,363 | ||||||||||||||||||||||||||
OPPLUS S.A.C | PERU | SERVICES | — | 100.00 | 100.00 | 196 | 1,191 | 1,014 | 152 | 25 | ||||||||||||||||||||||||||
PALADIN BROKERAGE SOLUTIONS, INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 8,454 | 8,769 | 316 | 8,375 | 78 | ||||||||||||||||||||||||||
PARTICIPACIONES ARENAL, S.L. | SPAIN | NO ACTIVITY | — | 100.00 | 100.00 | 6,458 | 7,922 | 1,238 | 6,456 | 228 | ||||||||||||||||||||||||||
PENSIONES BANCOMER, S.A. DE C.V. | MEXICO | INSURANCES | — | 100.00 | 100.00 | 98,732 | 1,395,384 | 1,296,646 | 74,490 | 24,248 | ||||||||||||||||||||||||||
PERI 5.1 SOCIEDAD LIMITADA | SPAIN | REAL STATE | — | 54.99 | 54.99 | 1 | — | — | — | — | ||||||||||||||||||||||||||
PHOENIX LOAN HOLDINGS, INC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 571,034 | 589,469 | 18,435 | 541,310 | 29,724 | ||||||||||||||||||||||||||
PI HOLDINGS NO. 1, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 12,558 | 13,732 | 1,175 | 10,549 | 2,008 | ||||||||||||||||||||||||||
PI HOLDINGS NO. 3, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 53 | 53 | — | 53 | — | ||||||||||||||||||||||||||
PI HOLDINGS NO. 4, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
PORT ARTHUR ABSTRACT & TITLE COMPANY | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 2,143 | 2,466 | 323 | 2,265 | (122 | ) | |||||||||||||||||||||||||
PREMEXSA, S.A. DE C.V. | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 375 | 679 | 348 | 313 | 18 | ||||||||||||||||||||||||||
PRESTACIONES ADMINISTRATIVAS LIMITADA — PROEX LIMITADA | CHILE | FINANCIAL SERV. | — | 100.00 | 100.00 | 80 | 635 | 626 | 3 | 6 |
II-10
Table of Contents
% of voting rights | ||||||||||||||||||||||||||||||||||||
controlled by the bank | Investee data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | for the | |||||||||||||||||||||||||||||||||
carrying | as of | as of | Equity | period ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of Euros (*) | ||||||||||||||||||||||||||||||||||||
PREVENTIS, S.A. | MEXICO | INSURANCES | — | 90.27 | 90.27 | 3,639 | 11,753 | 7,780 | 4,959 | (986 | ) | |||||||||||||||||||||||||
PRO-SALUD, C.A. | VENEZUELA | SERVICES | — | 58.86 | 58.86 | — | — | — | — | — | ||||||||||||||||||||||||||
PROMOCION EMPRESARIAL XX, S.A. | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 1,522 | 12,728 | 10,797 | 2,101 | (170 | ) | |||||||||||||||||||||||||
PROMOTORA DE RECURSOS AGRARIOS, S.A. | SPAIN | SERVICES | 100.00 | — | 100.00 | 139 | 125 | — | 127 | (2 | ) | |||||||||||||||||||||||||
PROMOTORA RESIDENCIAL GRAN EUROPA, S.L. | SPAIN | REAL STATE | — | 58.50 | 58.50 | 254 | 441 | 7 | 432 | 2 | ||||||||||||||||||||||||||
PROVIDA INTERNACIONAL, S.A. | CHILE | PENSIONS | — | 100.00 | 100.00 | 29,453 | 29,520 | 67 | 28,695 | 758 | ||||||||||||||||||||||||||
PROVINCIAL DE VALORES CASA DE BOLSA, C.A | VENEZUELA | FINANCIAL SERV. | — | 90.00 | 90.00 | 2,561 | 10,550 | 7,009 | 3,725 | (184 | ) | |||||||||||||||||||||||||
PROVINCIAL SDAD.ADMIN.DE ENTIDADES DE INV.COLECTIVA, C.A. | VENEZUELA | FINANCIAL SERV. | — | 100.00 | 100.00 | 2,336 | 2,321 | 131 | 1,716 | 474 | ||||||||||||||||||||||||||
PROVIVIENDA, ENTIDAD RECAUDADORA Y ADMIN.DE APORTES, S.A. | BOLIVIA | PENSIONS | — | 100.00 | 100.00 | 490 | 2,284 | 1,755 | 452 | 77 | ||||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS (IRELAND) LIMITED | IRELAND | FINANCIAL SERV. | — | 100.00 | 100.00 | 125 | 125 | — | 125 | — | ||||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS (UK) LLP | UNITED KINGDOM | FINANCIAL SERV. | — | 51.00 | 51.00 | — | 1,397 | 1,265 | 15 | 117 | ||||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS (USA) LLC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | — | 24,803 | 28,670 | (6,999 | ) | 3,132 | |||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS HOLDINGS (USA) II INC. | UNITED STATES | PORTFOLIO | — | 100.00 | 100.00 | — | 4 | 4 | — | — | ||||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS HOLDINGS (USA) INC. | UNITED STATES | PORTFOLIO | — | 100.00 | 100.00 | 344 | 390 | 390 | — | — | ||||||||||||||||||||||||||
PROXIMA ALFA INVESTMENTS, SGIIC S.A. | SPAIN | FINANCIAL SERV. | 100.00 | — | 100.00 | 16,785 | 15,848 | 4,431 | 14,942 | (3,525 | ) | |||||||||||||||||||||||||
PROXIMA ALFA MANAGING MEMBER LLC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 2 | 1 | 4 | — | (3 | ) | |||||||||||||||||||||||||
PROXIMA ALFA SERVICES LTD. | UNITED KINGDOM | FINANCIAL SERV. | — | 100.00 | 100.00 | 2,292 | 1,852 | 185 | 1,657 | 10 | ||||||||||||||||||||||||||
PROYECTO MUNDO AGUILON, S.L. | SPAIN | REAL STATE | — | 100.00 | 100.00 | 9,317 | 24,194 | 1,412 | 23,276 | (494 | ) | |||||||||||||||||||||||||
PROYECTOS EMPRESARIALES CAPITAL RIESGO I,S.C.R.SIMP., S.A. | SPAIN | VENTURE CAPITAL | 100.00 | — | 100.00 | 155,700 | 145,411 | 886 | 137,351 | 7,174 | ||||||||||||||||||||||||||
PROYECTOS INDUSTRIALES CONJUNTOS, S.A. DE | SPAIN | PORTFOLIO | — | 100.00 | 100.00 | 3,148 | 8,327 | 5,030 | 3,432 | (135 | ) | |||||||||||||||||||||||||
RESIDENCIAL CUMBRES DE SANTA FE, S.A. DE C.V. | MEXICO | REAL STATE | — | 100.00 | 100.00 | 8,858 | 10,538 | 2,065 | 8,809 | (336 | ) | |||||||||||||||||||||||||
RIVER OAKS BANK BUILDING, INC. | UNITED STATES | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 14,977 | 15,924 | 947 | 14,551 | 426 | ||||||||||||||||||||||||||
RIVER OAKS TRUST CORPORATION | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
RIVERWAY HOLDINGS CAPITAL TRUST I | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 223 | 7,454 | 7,231 | 202 | 21 | ||||||||||||||||||||||||||
S.GESTORA FONDO PUBL.REGUL.MERCADO HIPOTECARIO, S.A. | SPAIN | FINANCIAL SERV. | 77.20 | — | 77.20 | 138 | 213 | 67 | 148 | (2 | ) | |||||||||||||||||||||||||
SCALDIS FINANCE, S.A. | BELGICA | PORTFOLIO | — | 100.00 | 100.00 | 3,416 | 3,661 | 141 | 3,513 | 7 | ||||||||||||||||||||||||||
SEGUROS BANCOMER, S.A. DE C.V. | MEXICO | INSURANCES | 24.99 | 75.01 | 100.00 | 301,667 | 1,465,656 | 1,264,620 | 63,865 | 137,171 | ||||||||||||||||||||||||||
SEGUROS PROVINCIAL, C.A | VENEZUELA | INSURANCES | — | 100.00 | 100.00 | 22,347 | 44,857 | 22,502 | 8,957 | 13,398 | ||||||||||||||||||||||||||
SERVICIOS CORPORATIVOS BANCOMER, S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 90 | 3,161 | 3,072 | 23 | 66 |
II-11
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%of Voting Rights | ||||||||||||||||||||||||||||||||||||
controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | for the | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of Euros (*) | ||||||||||||||||||||||||||||||||||||
SERVICIOS CORPORATIVOS DE SEGUROS, S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 438 | 3,814 | 3,374 | 129 | 311 | ||||||||||||||||||||||||||
SERVICIOS EXTERNOS DE APOYO EMPRESARIAL, S.A DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 2,310 | 4,423 | 2,113 | 1,685 | 625 | ||||||||||||||||||||||||||
SERVICIOS TECNOLOGICOS SINGULARES, S.A. | SPAIN | SERVICES | — | 100.00 | 100.00 | 103 | 10,637 | 10,835 | 103 | (301 | ) | |||||||||||||||||||||||||
SMARTSPREAD LIMITED (UK) | UNITED KINGDOM | SERVICES | — | 63.52 | 63.52 | — | 1 | — | 1 | — | ||||||||||||||||||||||||||
SOCIEDAD DE ESTUDIOS Y ANALISIS FINANC.,S.A. | SPAIN | COMERCIAL | 100.00 | — | 100.00 | 114,518 | 195,905 | 1,438 | 190,950 | 3,517 | ||||||||||||||||||||||||||
SOCIETE INMOBILIERE BBV D’ILBARRIZ | FRANCIA | REAL STATE | — | 100.00 | 100.00 | 1,589 | 1,647 | 45 | 1,590 | 12 | ||||||||||||||||||||||||||
SOUTHEAST TEXAS TITLE COMPANY | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 699 | 938 | 237 | 861 | (160 | ) | |||||||||||||||||||||||||
SPORT CLUB 18, S.A. | SPAIN | PORTFOLIO | 100.00 | — | 100.00 | 21,923 | 37,451 | 15,662 | 22,237 | (448 | ) | |||||||||||||||||||||||||
ST. JOHNS INVESTMENTS MANAGMENT CO. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 3,653 | 3,816 | 163 | 3,565 | 88 | ||||||||||||||||||||||||||
STATE NATIONAL CAPITAL TRUST I | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 338 | 11,117 | 10,778 | 317 | 22 | ||||||||||||||||||||||||||
STATE NATIONAL PROPERTIES LLC | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 13 | 14 | 1 | 16 | (3 | ) | |||||||||||||||||||||||||
STATE NATIONAL STATUTORY TRUST II | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 223 | 7,423 | 7,199 | 211 | 13 | ||||||||||||||||||||||||||
STAVIS MARGOLIS ADVISORY SERVICES, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 20,363 | 21,152 | 791 | 19,393 | 968 | ||||||||||||||||||||||||||
TARUS, INC. | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
TEXAS LOAN SERVICES, LP. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 842,681 | 843,680 | 1,001 | 827,050 | 15,629 | ||||||||||||||||||||||||||
TEXAS REGIONAL STATUTORY TRUST I | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 1,114 | 37,117 | 36,001 | 1,051 | 65 | ||||||||||||||||||||||||||
TEXASBANC CAPITAL TRUST I | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 563 | 18,751 | 18,189 | 530 | 32 | ||||||||||||||||||||||||||
TRANSITORY CO. | PANAMA | REAL ESTATE INSTR. | — | 100.00 | 100.00 | 135 | 2,674 | 2,524 | 155 | (5 | ) | |||||||||||||||||||||||||
TSB PROPERTIES, INC. | UNITED STATES | REAL ESTATE INSTR. | — | 100.00 | 100.00 | (1,419 | ) | 762 | 2,181 | (1,419 | ) | — | ||||||||||||||||||||||||
TUCSON LOAN HOLDINGS, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | 553,469 | 553,549 | 80 | 524,864 | 28,605 | ||||||||||||||||||||||||||
TWOENC, INC. | UNITED STATES | FINANCIAL SERV. | — | 100.00 | 100.00 | (357 | ) | 299 | 655 | (356 | ) | — | ||||||||||||||||||||||||
UNICOM TELECOMUNICACIONES S.DE R.L. DE C.V. | MEXICO | SERVICES | — | 99.98 | 99.98 | 1 | 2 | 2 | (12 | ) | 12 | |||||||||||||||||||||||||
UNIDAD DE AVALUOS MEXICO S.A. DE C.V. | MEXICO | FINANCIAL SERV. | — | 100.00 | 100.00 | 1,163 | 1,593 | 733 | 649 | 211 | ||||||||||||||||||||||||||
UNITARIA GESTION DE PATRIMONIOS INMOBILIARIOS, S.A. | SPAIN | SERVICES | — | 100.00 | 100.00 | 2,410 | 2,634 | 33 | 2,525 | 76 | ||||||||||||||||||||||||||
UNIVERSALIDAD “E5” | COLOMBIA | FINANCIAL SERV. | — | 100.00 | 100.00 | — | 3,645 | 3,644 | 1 | — | ||||||||||||||||||||||||||
UNIVERSALIDAD — BANCO GRANAHORRAR | COLOMBIA | FINANCIAL SERV. | — | 100.00 | 100.00 | — | 5,464 | 5,805 | (2,277 | ) | 1,936 | |||||||||||||||||||||||||
UNO-E BANK, S.A. | SPAIN | BANKING | 67.35 | 32.65 | 100.00 | 174,751 | 1,296,768 | 1,167,220 | 142,336 | (12,788 | ) | |||||||||||||||||||||||||
URBANIZADORA SANT LLORENC, S.A. | SPAIN | NO ACTIVITY | 60.60 | — | 60.60 | — | 108 | — | 108 | — | ||||||||||||||||||||||||||
VALANZA CAPITAL RIESGO S.G.E.C.R. S.A. UNIPERSONAL | SPAIN | VENTURE CAPITAL | 100.00 | — | 100.00 | 1,200 | 8,863 | 1,692 | 3,662 | 3,509 | ||||||||||||||||||||||||||
VALLEY MORTGAGE COMPANY, INC. | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — |
II-12
Table of Contents
% of voting rights | ||||||||||||||||||||||||||||||||||||
controlled by the bank | Investee data | |||||||||||||||||||||||||||||||||||
Profit (Loss) | ||||||||||||||||||||||||||||||||||||
Net | Assets | Liabilities | for the | |||||||||||||||||||||||||||||||||
Carrying | as of | as of | Equity | Period Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of Euros (*) | ||||||||||||||||||||||||||||||||||||
VIRTUAL DOC, S.L. | SPAIN | SERVICES | — | 70.00 | 70.00 | 467 | 618 | 114 | 667 | (163 | ) | |||||||||||||||||||||||||
VISACOM, S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 860 | 860 | 1 | 221 | 638 | ||||||||||||||||||||||||||
WESTERN BANCSHARES OF ALBUQUERQUE, INC. | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — | ||||||||||||||||||||||||||
WESTERN MANAGEMENT CORPORATION | UNITED STATES | NO ACTIVITY | — | 100.00 | 100.00 | 1 | 1 | — | 1 | — |
(*) | Information on foreign companies at exchange rate on12-31-08 |
II-13
Table of Contents
Total Securitized | Securitized | |||||||||||||
Origination Date | Exposures at the | Exposures | ||||||||||||
Securitization | COMPANY | (month/year) | Origination Date | Total | ||||||||||
(Thousand of euros) | ||||||||||||||
BBVA AUTOS I FTA | BBVA, S.A. | 10/2004 | 1,000,000 | 347,929 | ||||||||||
BBVA-3 FTPYME FTA | BBVA, S.A. | 11/2004 | 1,000,000 | 246,486 | ||||||||||
BBVA HIPOTECARIO 3 FTA | BBVA, S.A. | 06/2005 | 1,450,000 | 626,210 | ||||||||||
BBVA-4 PYME FTA | BBVA, S.A. | 09/2005 | 1,250,000 | 338,192 | ||||||||||
BBVA AUTOS 2 FTA | BBVA, S.A. | 12/2005 | 1,000,000 | 680,709 | ||||||||||
GAT FTGENCAT 2005 FTA | BBVA, S.A. | 12/2005 | 700,000 | 92,139 | ||||||||||
BBVA CONSUMO 1 FTA | BBVA, S.A. | 05/2006 | 1,500,000 | 1,116,144 | ||||||||||
BBVA-5 FTPYME FTA | BBVA, S.A. | 10/2006 | 1,900,000 | 949,701 | ||||||||||
BBVA CONSUMO 2 FTA | BBVA, S.A. | 11/2006 | 1,500,000 | 1,366,022 | ||||||||||
BBVA RMBS 1 FTA | BBVA, S.A. | 02/2007 | 2,500,000 | 2,070,860 | ||||||||||
BBVA RMBS 2 FTA | BBVA, S.A. | 03/2007 | 5,000,000 | 4,142,290 | ||||||||||
BBVA LEASING 1 FTA | BBVA, S.A. | 06/2007 | 2,500,000 | 2,311,172 | ||||||||||
BBVA-6 FTPYME FTA | BBVA, S.A. | 06/2007 | 1,500,000 | 958,144 | ||||||||||
BBVA RMBS 3 FTA | BBVA, S.A. | 07/2007 | 3,000,000 | 2,720,745 | ||||||||||
BBVA EMPRESAS 1 FTA | BBVA, S.A. | 11/2007 | 1,450,000 | 981,441 | ||||||||||
BBVA RMBS 4 FTA | BBVA, S.A. | 11/2007 | 4,900,000 | 4,352,863 | ||||||||||
BBVA-7 FTGENCAT FTA | BBVA, S.A. | 02/2008 | 250,000 | 193,353 | ||||||||||
BBVA CONSUMO 3 FTA | BBVA, S.A. | 04/2008 | 975,000 | 314,168 | ||||||||||
BBVA RMBS 5 FTA | BBVA, S.A. | 05/2008 | 5,000,000 | 4,810,142 | ||||||||||
BBVA-8 FTPYME FTA | BBVA, S.A. | 07/2008 | 1,100,000 | 989,947 | ||||||||||
BBVA RMBS 6 FTA | BBVA, S.A. | 11/2008 | 4,995,000 | 4,935,419 | ||||||||||
BBVA RMBS 7 FTA | BBVA, S.A. | 11/2008 | 8,500,000 | 8,367,252 | ||||||||||
PEP80040F110 | BBVA BANCO CONTINENTAL | 12/2007 | 17,964 | 14,305 | ||||||||||
BBVA-FINANZIA AUTOS 1 FTA | FINANZIA BANCO DE CREDITO, S.A. | 04/2007 | 800,000 | 661,284 | ||||||||||
BBVA CONSUMO 3 FTA | FINANZIA BANCO DE CREDITO, S.A. | 04/2008 | 975,000 | 632,517 | ||||||||||
2 PS Interamericana | BBVA CHILE | 09/2004 | 14,506 | 12,925 | ||||||||||
2 PS Interamericana | BBVA SDAD. LEASING HABITACIONAL BHIF | 09/2004 | 9,755 | 8,692 | ||||||||||
11 PS BICE | FORUM SERVICIOS FINANCIEROS (*) | 03/2005 | 25,657 | 19,152 | ||||||||||
11 PS Banchile | FORUM SERVICIOS FINANCIEROS (*) | 09/2005 | 10,743 | 9,904 | ||||||||||
23 PS BICE | FORUM SERVICIOS FINANCIEROS (*) | 02/2006 | 9,784 | 9,397 | ||||||||||
4 PS Itau | FORUM SERVICIOS FINANCIEROS (*) | 09/2006 | 9,802 | 9,558 | ||||||||||
FannieMae- Lender No. 227300000 | COMPASS BANK | 12/2001 | 176,774 | 28,833 | ||||||||||
Home Equity — 2003-HE1 | COMPASS BANK | 05/2003 | 542,092 | 66,187 | ||||||||||
Fannie Mae — Lender No. 227300027 | COMPASS BANK | 12/2003 | 268,215 | 117,794 | ||||||||||
Mortgages — LLC 2004-R1 | COMPASS BANK | 03/2004 | 424,636 | 132,088 | ||||||||||
56,254,927 | 44,633,962 |
(*) | Proportionate consolidation method |
III-1
Table of Contents
ADDITIONAL INFORMATION ON JOINTLY CONTROLLED COMPANIES PROPORTIONATELY
CONSOLIDATED IN THE BANCO BILBAO VIZCAYA ARGENTARIA GROUP
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controlled by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Profit | ||||||||||||||||||||||||||||||||||||
(Loss) | ||||||||||||||||||||||||||||||||||||
for the | ||||||||||||||||||||||||||||||||||||
Net | Period | |||||||||||||||||||||||||||||||||||
Carrying | Assets | Liabilities | Equity | Ended | ||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | 31.12.08 | 31.12.08 | 31.12.08 | 31.12.08 | ||||||||||||||||||||||||||
Thousand of Euros (*) | ||||||||||||||||||||||||||||||||||||
ECASA, S.A. | CHILE | FINANCIAL SERV. | — | 51.00 | 51.00 | 5,469 | 6,794 | 1,326 | (812 | ) | 6,280 | |||||||||||||||||||||||||
FORUM DISTRIBUIDORA, S,A, | CHILE | FINANCIAL SERV. | — | 51.04 | 51.04 | 4,723 | 18,825 | 13,543 | 4,883 | 399 | ||||||||||||||||||||||||||
FORUM SERVICIOS FINANCIEROS, S.A. | CHILE | FINANCIAL SERV. | — | 51.00 | 51.00 | 43,705 | 474,870 | 413,581 | 37,977 | 23,312 | ||||||||||||||||||||||||||
INVERSIONES PLATCO, C.A | VENEZUELA | FINANCIAL SERV. | — | 50.00 | 50.00 | 1,004 | 3,287 | 1,280 | 2,007 | — | ||||||||||||||||||||||||||
PSA FINANCE ARGENTINA COMPAÑIA FINANCIERA, S.A. | ARGENTINA | FINANCIAL SERV. | — | 50.00 | 50.00 | 6,926 | 92,089 | 78,234 | 11,702 | 2,153 |
IV-1
Table of Contents
% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controllend by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||
Carrying | Profit | |||||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | Assets | Liabilities | Equity | (Loss) | ||||||||||||||||||||||||||
Thousand of euros | ||||||||||||||||||||||||||||||||||||
ADQUIRA ESPAÑA, S.A. | SPAIN | SERVICES | — | 40.00 | 40.00 | 3,742 | 24,151 | 15,852 | 6,674 | 1,625 | (2) | |||||||||||||||||||||||||
ALMAGRARIO, S.A. | COLOMBIA | SERVICES | — | 35.38 | 35.38 | 6,222 | 26,494 | 5,200 | 18,126 | 3,168 | (2) | |||||||||||||||||||||||||
AUREA, S.A. (CUBA) | CUBA | REAL ESTATE | — | 49.00 | 49.00 | 4,168 | 8,619 | 626 | 7,867 | 126 | (2) | |||||||||||||||||||||||||
BBVA ELCANO EMPRESARIAL II, S.C.R., S.A. | SPAIN | VENTURE CAPITAL | 45.00 | — | 45.00 | 38,506 | 59,494 | 486 | 71,555 | (12,547 | )(2) | |||||||||||||||||||||||||
BBVA ELCANO EMPRESARIAL, S.C.R., S.A. | SPAIN | VENTURE CAPITAL | 45.00 | — | 45.00 | 38,502 | 59,499 | 486 | 71,557 | (12,544 | )(2) | |||||||||||||||||||||||||
CAMARATE GOLF, S.A.(*) | SPAIN | REAL ESTATE | — | 26.00 | 26.00 | 5,170 | 68,873 | 50,992 | 17,927 | (46 | )(3) | |||||||||||||||||||||||||
CITIC INTERNATIONAL FINANCIAL HOLDINGS LIMITED CIFH | HONG-KONG | FINANCIAL SERV. | 29.68 | — | 29.68 | 541,221 | 11,531,795 | 9,224,863 | 2,133,662 | 173,270(1 | )(2) | |||||||||||||||||||||||||
COMPAÑIA ESPAÑOLA DE FINANCIACION DEL DESARROLLO S.A. | SPAIN | SERVICES | 21.82 | — | 21.82 | 11,502 | 63,052 | 12,600 | 48,248 | 2,204 | (2) | |||||||||||||||||||||||||
COMPAÑIA MEXICANA DE PROCESAMIENTO, S.A. DE C.V. | MEXICO | SERVICES | — | 50.00 | 50.00 | 3,189 | 7,983 | 1,832 | 8,913 | (2,762 | )(3) | |||||||||||||||||||||||||
CORPORACION IBV PARTICIPACIONES EMPRESARIALES, S.A.(*) | SPAIN | PORTFOLIO | — | 50.00 | 50.00 | 385,062 | 1,537,225 | 382,240 | 747,225 | 407,760 | (1)(2) | |||||||||||||||||||||||||
DISTRANSA RENTRUCKS, S.A.(*) | SPAIN | SERVICES | — | 50.00 | 50.00 | 14,994 | 16,305 | 15,069 | 806 | 430 | (2) | |||||||||||||||||||||||||
ECONTA GESTION INTEGRAL, S.L.(*) | SPAIN | SERVICES | — | 60.00 | 60.00 | 2,745 | 4,023 | 491 | 4,613 | (1,081 | )(2) | |||||||||||||||||||||||||
FERROMOVIL 3000, S.L.(*) | SPAIN | SERVICES | — | 20.00 | 20.00 | 5,089 | 632,971 | 603,297 | 29,977 | (303 | )(2) | |||||||||||||||||||||||||
FERROMOVIL 9000, S.L.(*) | SPAIN | SERVICES | — | 20.00 | 20.00 | 3,453 | 366,389 | 347,594 | 18,773 | 22 | (2) | |||||||||||||||||||||||||
FIDEICOMISO F/70191-2 PUEBLA(*) | MEXICO | REAL ESTATE | — | 25.00 | 25.00 | 8,778 | 73,626 | 28,000 | 42,995 | 2,631 | (2) | |||||||||||||||||||||||||
FIDEICOMISO F/403853-5 BBVA BANCOMER SERVICIOS ZIBATA(*) | MEXICO | REAL ESTATE | — | 30.00 | 30.00 | 19,807 | — | — | — | — | (4) | |||||||||||||||||||||||||
FIDEICOMISO HARES BBVA BANCOMER F/47997-2(*) | MEXICO | REAL ESTATE | — | 50.00 | 50.00 | 11,713 | 23,913 | 339 | 21,864 | 1,710 | (2) | |||||||||||||||||||||||||
GRUPO PROFESIONAL PLANEACION Y PROYECTOS, S.A. DE C.V.(*) | MEXICO | SERVICES | — | 44.39 | 44.39 | 7,063 | 26,971 | 17,749 | 8,614 | 608 | (1)(2) | |||||||||||||||||||||||||
HESTENAR, S.L.(*) | SPAIN | REAL ESTATE | — | 43.34 | 43.34 | 6,454 | 27,835 | 21,969 | 5,909 | (43 | )(3) | |||||||||||||||||||||||||
IMOBILIARIA DUQUE D’AVILA, S.A.(*) | PORTUGAL | REAL ESTATE | — | 50.00 | 50.00 | 5,011 | 26,138 | 16,504 | 9,848 | (214 | )(3) |
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% of Voting Rights | ||||||||||||||||||||||||||||||||||||
Controllend by the Bank | Investee Data | |||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||
Carrying | Profit | |||||||||||||||||||||||||||||||||||
Company | Location | Activity | Direct | Indirect | Total | Amount | Assets | Liabilities | Equity | (Loss) | ||||||||||||||||||||||||||
Thousand of euros | ||||||||||||||||||||||||||||||||||||
INMUEBLES MADARIAGA PROMOCIONES, S.L.(*) | SPAIN | REAL ESTATE | 50.00 | — | 50.00 | 3,681 | 18,717 | 4,055 | 6,313 | 8,349(2 | ) | |||||||||||||||||||||||||
JARDINES DEL RUBIN, S.A.(*) | SPAIN | REAL ESTATE | — | 50.00 | 50.00 | 6,569 | 31,265 | 21,642 | 5,900 | 3,723(2 | ) | |||||||||||||||||||||||||
LA ESMERALDA DESARROLLOS, S.L.(*) | SPAIN | REAL ESTATE | — | 25.00 | 25.00 | 4,998 | 56,571 | 36,571 | 20,000 | 0(3 | ) | |||||||||||||||||||||||||
LAS PEDRAZAS GOLF, S.L.(*) | SPAIN | REAL ESTATE | — | 50.00 | 50.00 | 15,808 | 74,949 | 45,204 | 31,837 | (2,092 | )(2) | |||||||||||||||||||||||||
MONTEALMENARA GOLF, S.L.(*) | SPAIN | REAL ESTATE | — | 50.00 | 50.00 | 2,876 | 86,561 | 51,518 | 15,606 | 19,437(3 | ) | |||||||||||||||||||||||||
OCCIDENTAL HOTELES MANAGEMENT, S.L. | SPAIN | SERVICES | — | 38.53 | 38.53 | 127,823 | 917,019 | 543,599 | 387,477 | (14,057 | )(1)(2) | |||||||||||||||||||||||||
PARQUE REFORMA SANTA FE, S.A. DE C.V. | MEXICO | REAL ESTATE | — | 30.00 | 30.00 | 4,408 | 82,225 | 67,377 | 19,612 | (4,764 | )(2) | |||||||||||||||||||||||||
ROMBO COMPAÑIA FINANCIERA, S.A. | ARGENTINA | FINANCIAL SERV. | — | 40.00 | 40.00 | 7,830 | 105,558 | 89,082 | 15,662 | 814(2 | ) | |||||||||||||||||||||||||
SERVICIOS ELECTRONICOS GLOBALES, S.A. DE C.V. | MEXICO | SERVICES | — | 46.14 | 46.14 | 3,924 | 13,610 | 3,938 | 9,626 | 46(2 | ) | |||||||||||||||||||||||||
SERVICIOS ON LINE PARA USUARIOS MULTIPLES, S.A. (SOLIUM)(*) | SPAIN | SERVICES | — | 66.67 | 66.67 | 3,381 | 4,722 | 2,048 | 2,287 | 387 (2 | ) | |||||||||||||||||||||||||
SERVIRED SOCIEDAD ESPAÑOLA DE MEDIOS DE PAGO, S.A. | SPAIN | FINANCIAL SERV. | 20.50 | 0.93 | 21.43 | 36,849 | 54,138 | 4,512 | 49,394 | 232 (2 | ) | |||||||||||||||||||||||||
TELEFONICA FACTORING, S.A. | SPAIN | FINANCIAL SERV. | 30.00 | — | 30.00 | 2,962 | 90,854 | 81,268 | 6,905 | 2,682 (2 | ) | |||||||||||||||||||||||||
TUBOS REUNIDOS, S.A. | SPAIN | INDUSTRIAL | — | 23.40 | 23.40 | 54,296 | 762,413 | 405,924 | 271,388 | 85,101 (1 | ) | |||||||||||||||||||||||||
VITAMEDICA S.A DE C.V.(*) | MEXICO | INSURANCE | — | 50.99 | 50.99 | 2,275 | 9,794 | 4,221 | 5,491 | 82 (2 | ) | |||||||||||||||||||||||||
OTHER COMPANIES | 66,784 | |||||||||||||||||||||||||||||||||||
TOTAL | 1,466,855 | 16,893,752 | 12,107,150 | 4,122,650 | 663,953 |
(1) | Consolidated Data | |
(2) | Financial statements as of December 31, 2007 | |
(3) | Financial statements as of December 31, 2006 | |
(4) | New incorporation | |
(*) | Jointly controlled entities accounted for using the equity method |
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BUSINESS COMBINATIONS AND OTHER ACQUISITIONS OR INCREASE OF INTEREST OWNERSHIP
IN CONSOLIDATED SUBSIDIARIES AND JOINTLY CONTROLLED COMPANIES ACCOUNTED FOR
USIN THE PROPORTIONATE METHOD
Fair value of | ||||||||||||||||||||||||
Price paid in the | Equity | % | ||||||||||||||||||||||
Transaction + | Instruments | Voting Rights | ||||||||||||||||||||||
Expenses Directly | Issued for the | Acquired in | Voting rights | |||||||||||||||||||||
Type of | Attributable to the | Acquisition of the | the Period | Controlled After | Effective Date (or | |||||||||||||||||||
Company | Transaction | Activity | Acquisition | Company | (Net) | the Acquisition | Notification Date) | |||||||||||||||||
(Thounsand of | ||||||||||||||||||||||||
euros) | ||||||||||||||||||||||||
BBVA LEASING S.A. Cia,FINANC, COMERC, (COLOMBIA) | FOUNDING | FINANCIAL SERV. | 7,892 | — | 100.000 | % | 100.000 | % | 1/2/2008 | |||||||||||||||
FINANZIA AUTORENTING* | ACQUISITION | SERVICES | 10,999 | — | 11.681 | % | 100.000 | % | 3/14/2008 | |||||||||||||||
ANIDA CARTERA SINGULAR, S.L. | FOUNDING | PORTFOLIO | 5,300 | — | 100.000 | % | 100.000 | % | 6/6/2008 | |||||||||||||||
ANIDA DESARROLLOS SINGULARES, S.L | FOUNDING | REAL ESTATE | 5,000 | — | 100.000 | % | 100.000 | % | 6/6/2008 | |||||||||||||||
MARINA LLAR, S.A.* | ACQUISITION | REAL ESTATE | 100 | — | 50.000 | % | 100.000 | % | 7/18/2008 | |||||||||||||||
PREVENTIS | ACQUISITION | INSURANCES | 2,486 | — | 15.262 | % | 90.272 | % | 01/03/2008 01/06/2008 01/08/2008 | |||||||||||||||
PROXIMA ALFA INVESTMENTS, SGIIC, S.A* | ACQUISITION | FINANCIAL SERV. | 11,678 | — | 49.000 | % | 100.000 | % | 11/14/2008 | |||||||||||||||
EUROPEA DE TITULIZACION, S.A.,S.G.F.T.* | ACQUISITION | FINANCIAL SERV. | 309 | — | 3.018 | % | 85.988 | % | 14/02/2008 03/06/2008 09/12/2008 | |||||||||||||||
BBVA PROPIEDAD, F.I.I | ACQUISITION | OTHER INVEST.ENTITIES | 1,532,798 | — | 95.654 | % | 95.654 | % | 12/30/2008 |
* | Notifications |
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IN ASSOCIATED AND JOINTLY CONTROLLED COMPANIES ACCOUNTED FOR USING THE EQUITY
METHOD
Fair Value of | % | |||||||||||||||||||||||
Price Paid in the | Equity | Voting Rights | ||||||||||||||||||||||
Transaction + | instruments | Acquired | ||||||||||||||||||||||
Expenses Directly | Issued for the | in the | Voting Rights | |||||||||||||||||||||
Type of | Attributable to the | Acquisition of the | Period | Controlled After | Effective Date (or | |||||||||||||||||||
Company | Transaction | Activity | Acquisition | Company | (Net) | the Acquisition | Notification Date) | |||||||||||||||||
(Thounsand | ||||||||||||||||||||||||
of euros) | ||||||||||||||||||||||||
FIDEICOMISO F/402770-2 ALAMAR | FOUNDING | REAL ESTATE | 11,756 | — | 42.400 | % | 42.400 | % | 12/7/2007 | |||||||||||||||
FIDEICOMISO F/403112-6 DE ADMINISTRACION DOS LAGOS | FOUNDING | REAL ESTATE | 10,865 | — | 46.914 | % | 46.914 | % | 4/23/2008 | |||||||||||||||
SERVICIOS ON LINE PARA USUARIOSMULTIPLES (SOLIUM)* | ACQUISITION | SERVICES | 2,450 | — | 33.333 | % | 66.667 | % | 6/3/2008 | |||||||||||||||
DISTRANSA RENTRUCKS, S.A.* | ACQUISITION | SERVICES | 15,200 | — | 42.922 | % | 42.922 | % | 6/10/2008 | |||||||||||||||
FIDEICOMISO F/403853-5 BBVA BANCOMER SoS ZIBATA | FOUNDING | REAL ESTATE | 22,503 | — | 30.000 | % | 30.000 | % | 11/30/2008 | |||||||||||||||
CITIC INTERNATIONAL FINANCIAL HOLDINGS LIMITED CIFH | ACQUISITION | FINANCIAL SERV. | 654,827 | — | 15.163 | % | 29.679 | % | 11/30/2008 |
* | Notifications |
VI-2
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% | ||||||||||||||||||||||||
Voting Rights | ||||||||||||||||||||||||
Totally | ||||||||||||||||||||||||
Type of | Profit in the | % | Controlled After | Effective Date (or | ||||||||||||||||||||
Company | Transaction | Activity | Transaction | Sold | the Disposal | Notification date) | ||||||||||||||||||
Thounsand euros | ||||||||||||||||||||||||
BBVA CONSOLIDAR SALUD, S.A. | DISPOSAL | INSURANCE | 3,610 | 99.999 | % | 0.000 | % | 10/31/2008 |
ACCOUNTED FOR USING THE EQUITY METHOD
% | ||||||||||||||||||||||||
voting Rights | ||||||||||||||||||||||||
Totally | ||||||||||||||||||||||||
Type of | Profit in The | % | Controlled After | Effective Date (or | ||||||||||||||||||||
Company | Transaction | Activity | Transaction | Sold | the Disposal | Notification Date) | ||||||||||||||||||
TUBOS REUNIDOS* | DISPOSAL | INDUSTRIAL | 8,362 | 0.853 | % | 23.403 | % | 16/01/2008 28/02/2008 | ||||||||||||||||
TRIBUGEST GESTION DE TRIBUTOS, S.A. | DISPOSAL | SERVICES | 1,000 | 39.979 | % | 0.000 | % | 12/23/2008 |
* | Notifications |
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% Voting Rights | Effective Date | |||||||||||||||||
Net Acquired | Totally Controlled | (or Notification | ||||||||||||||||
Company | Type of Transaction | Activity | in the Year | After Acquisition | Date) | |||||||||||||
Thounsand € | ||||||||||||||||||
ACS, ACTIVIDADES DE CONSTRUCCION Y SERVICIOS, S.A.* | Refresh dates | SERVICES | 3.216 | % | 1/11/2008 | |||||||||||||
ACS, ACTIVIDADES DE CONSTRUCCION Y SERVICIOS, S.A.* | Disposal | SERVICES | —0.411 | % | 2.805 | % | 8/13/2008 | |||||||||||
GAMESA CORPORACION TECNOLOGICA, S.A.* | Acquisition | INDUSTRIAL | 4.626 | % | 4.684 | % | 3/11/2008 | |||||||||||
GAMESA CORPORACION TECNOLOGICA, S.A.* | Disposal | INDUSTRIAL | —2.711 | % | 1.973 | % | 14/08/2008 25/08/2008 | |||||||||||
SOL MELIA, S.A.* | Acquisition | SERVICES | 3.116 | % | 3.495 | % | 3/10/2008 |
* | Notifications |
VI-4
Table of Contents
non-Group shareholders
% of Voting Rights | ||||||||||||||
Controlled by the Bank | ||||||||||||||
Company | Activity | Direct | Indirect | Total | ||||||||||
ALTITUDE INVESTMENTS LIMITED | FINANCIAL SERV. | 51.00 | — | 51.00 | ||||||||||
ALTURA MARKETS, SOCIEDAD DE VALORES, S.A. | BROKERING | 50.00 | — | 50.00 | ||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA CHILE, S.A. | BANKING | 55.97 | 12.21 | 68.18 | ||||||||||
BANCO PROVINCIAL S.A. — BANCO UNIVERSAL | BANKING | 1.85 | 53.75 | 55.60 | ||||||||||
BBVA & PARTNERS ALTERNATIVE INVESTMENT A.V., S.A. | BROKERING | 70.00 | — | 70.00 | ||||||||||
BBVA BANCO FRANCES, S.A. | BANKING | 45.65 | 30.35 | 76.00 | ||||||||||
BBVA INMOBILIARIA E INVERSIONES, S.A. | REAL ESTATE | — | 68.11 | 68.11 | ||||||||||
DESARROLLO URBANISTICO DE CHAMARTÍN, S.A. | REAL ESTATE | — | 72.50 | 72.50 | ||||||||||
EL OASIS DE LAS RAMBLAS, S.L | REAL ESTATE | — | 70.00 | 70.00 | ||||||||||
ESTACIÓN DE AUTOBUSES CHAMARTÍN, S.A. | SERVICES | — | 51.00 | 51.00 | ||||||||||
GESTIÓN DE PREVISIÓN Y PENSIONES, S.A. | PENSIONS | 60.00 | — | 60.00 | ||||||||||
HOLDING CONTINENTAL, S.A. | PORTFOLIO | 50.00 | — | 50.00 | ||||||||||
IBERDROLA SERVICIOS FINANCIEROS, E.F.C, S.A. | FINANCIAL SERV. | — | 84.00 | 84.00 | ||||||||||
INVERSIONES BANPRO INTERNATIONAL INC. N.V. | PORTFOLIO | 48.00 | — | 48.00 | ||||||||||
INVERSIONES P.H.R.4, C.A | NO ACTIVITY | — | 60.46 | 60.46 | ||||||||||
JARDINES DE SARRIENA, S.L | REAL ESTATE | — | 85.00 | 85.00 | ||||||||||
MIRADOR DE LA CARRASCOSA, S.L | REAL ESTATE | — | 55.90 | 55.90 | ||||||||||
PERI 5.1 SOCIEDAD LIMITADA | REAL ESTATE | — | 54.99 | 54.99 | ||||||||||
PREVENTIS, S.A. | INSURANCE | — | 90.27 | 90.27 | ||||||||||
PROMOTORA RESIDENCIAL GRAN EUROPA, S.L | REAL ESTATE | — | 58.50 | 58.50 | ||||||||||
PRO-SALUD, C.A | SERVICES | — | 58.86 | 58.86 | ||||||||||
PROVINCIAL DE VALORES CASA DE BOLSA, C.A | FINANCIAL SERV. | — | 90.00 | 90.00 | ||||||||||
SMARTSPREAD LIMITED | SERVICES | — | 63.52 | 63.52 | ||||||||||
VIRTUAL DOC, S.L | SERVICES | — | 70.00 | 70.00 |
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years 2008, 2007 and 2006 elaborated in accordance with the models of Circular
6/2008 of the Bank of Spain with respect to those elaborated in accordance with
Bank of Spain Circular 4/2004.
• | Consolidated balance sheet: in contrast to the consolidated balance sheet forming part of the consolidated financial statements at December 31, 2007, the model balance sheet included in these consolidated financial statements: |
• | Includes within “Tangible assets — Tangible fixed assets” both “Tangible assets — For own use” and “Tangible assets — Other assets leased out under and operating lease”, included in the asset side of the consolidated balance sheet forming part of the Group’s consolidated financial statements for 2007 and 2006. | |
• | Includes under “Loans and advances to credit institutions” and “Loans and advances to customers,” all the amounts previously classified in under “Loans and receivables — Other financial assets” in the asset side of consolidated balance sheet forming part of the Group’s consolidated financial statements for 2007 and 2006. | |
• | Includes “Other assets — Other,” which combines the captions “Prepayments” and “Other assets” presented in the asset side of consolidated balance sheet forming part of the Group’s consolidated financial statements for 2007 and 2006. | |
• | Includes on the liability side of the balance sheet “Other liabilities”, which combines the “Accrued expenses” and “Other liabilities” headings included on the consolidated balance sheet forming part of the annual financial statements at December 31, 2007 and 2006. |
• | Consolidated income statement: in contrast to the model consolidated income statement used in the consolidated financial statements at December 31, 2007 and 2006, the consolidated income statement presented in these consolidated financial statements: |
VIII-1
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VIII-2
Table of Contents
INCOME STATEMENT IN ACCORDANCE WITH BANK OF SPAIN CIRCULAR 4/2004 | 2008 | Reconciliation | 2008 | INCOME STATEMENT IN ACCORDANCE WITH BANK OF SPAIN CIRCULAR 6/2008 | ||||||||||
INTEREST AND SIMILAR INCOME LESS INTEREST EXPENSE AND SIMILAR CHARGES | 11,444 | 242 | ||||||||||||
11,686 | NET INTEREST INCOME | |||||||||||||
INCOME FROM EQUITY INSTRUMENTS | 447 | — | 447 | DIVIDEND INCOME | ||||||||||
NET INTEREST INCOME | 11,891 | |||||||||||||
SHARE OR PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 293 | — | 293 | SHARE OR PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | ||||||||||
NET FEES AND COMMISSIONS | 4,687 | (159 | ) | 4,527 | NET FEES AND COMMISSIONS | |||||||||
INSURANCE ACTIVITY INCOME | 851 | (851 | ) | |||||||||||
GAINS OR LOSSES ON FINANCIAL ASSETS AND LIABILITIES AND EXCHANGE DIFFERENCES (NET) | 2,132 | (574 | ) | 1,558 | INCOME FROM INSURANCE ACTIVITIES (NET) AND EXCHANGE DIFFERENCES (NET) | |||||||||
466 | 466 | OTHER OPERATING INCOME AND EXPENSES (NET) | ||||||||||||
GROSS INCOME | 19,853 | (876 | ) | 18,978 | GROSS INCOME | |||||||||
COST OF SALES (NET) | 82 | (82 | ) | |||||||||||
PERSONNEL EXPENSES AND OTHER ADMINISTRATIVE EXPENSES | (7,756 | ) | — | (7,756 | ) | ADMINISTRATION COSTS | ||||||||
DEPRECIATION AND AMORTIZATION | (699 | ) | — | (699 | ) | DEPRECIATION AND AMORTIZATION | ||||||||
OTHER OPERATING INCOME (NET) | (201 | ) | 201 | |||||||||||
(2,940 | ) | (2,940 | ) | IMPAIRMENT ON FINANCIAL ASSETS (NET) | ||||||||||
(1,431 | ) | (1,431 | ) | PROVISIONS (NET) | ||||||||||
NET OPERATING INCOME | 11,279 | (5,127 | ) | 6,151 | NET OPERATING INCOME | |||||||||
IMPAIRMENT LOSSES (NET) | (3,026 | ) | 2,981 | (45 | ) | IMPAIRMENT LOSSES OF OTHER ASSETS (NET) | ||||||||
PROVISION EXPENSE (NET) | (1,433 | ) | 1,433 | |||||||||||
FINANCIAL INCOME AND EXPENSES FROM NON-FINANCIAL ACTIVITIES | — | — | ||||||||||||
OTHER GAINS AND LOSSES (NET) | 106 | (106 | ) | |||||||||||
72 | 72 | GAINS (LOSSES) IN WRITTEN OFF ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE | ||||||||||||
— | — | NEGATIVE GOODWILL | ||||||||||||
748 | 748 | GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS | ||||||||||||
INCOME BEFORE TAX | 6,926 | — | 6,926 | INCOME BEFORE TAX | ||||||||||
INCOME TAX | (1,541 | ) | — | (1,541 | ) | INCOME TAX | ||||||||
INCOME FROM ORDINARY ACTIVITIES | 5,385 | — | 5,385 | INCOME FROM ORDINARY ACTIVITIES | ||||||||||
INCOME FROM DISCONTINUED OPERATIONS (NET) | — | INCOME FROM DISCONTINUED OPERATIONS (NET) | ||||||||||||
INCOME FOR THE YEAR (+/-) | 5,385 | — | 5,385 | NET INCOME | ||||||||||
INCOME ATTRIBUTED TO MINORITY INTEREST | (366 | ) | — | (366 | ) | PROFIT OR LOSS ATRIBUTABLE TO MINORITY INTEREST | ||||||||
INCOME ATRIBUTED TO THE GROUP | 5,020 | — | 5,020 | NET INCOME ATRIBUTED TO PARENT COMPANY |
VIII-3
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INCOME STATEMENT IN ACCORDANCE WITH BANK OF SPAIN CIRCULAR 4/2004 | 2007 | Reconciliation | 2007 | INCOME STATEMENT IN ACCORDANCE WITH BANK OF SPAIN CIRCULAR 6/2008 | ||||||||||
INTEREST AND SIMILAR INCOME LESS INTEREST EXPENSE AND SIMILAR CHARGES | 9,422 | 206 | ||||||||||||
9,628 | NET INTEREST INCOME | |||||||||||||
INCOME FROM EQUITY INSTRUMENTS | 348 | — | 348 | DIVIDEND INCOME | ||||||||||
NET INTEREST INCOME | 9,769 | 9,976 | ||||||||||||
SHARE OR PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 242 | — | 242 | SHARE OR PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | ||||||||||
NET FEES AND COMMISSIONS | 4,723 | (164 | ) | 4,559 | NET FEES AND COMMISSIONS | |||||||||
INSURANCE ACTIVITY INCOME | 729 | (729 | ) | |||||||||||
GAINS OR LOSSES ON FINANCIAL ASSETS AND | ||||||||||||||
LIABILITIES AND EXCHANGE DIFFERENCES (NET) | 2,670 | (714 | ) | 1,956 | INCOME FROM INSURANCE ACTIVITIES (NET) AND EXCHANGE DIFFERENCES (NET) | |||||||||
538 | 538 | OTHER OPERATING INCOME AND EXPENSES (NET) | ||||||||||||
GROSS INCOME | 18,133 | (862 | ) | 17,271 | GROSS INCOME | |||||||||
COST OF SALES (NET) | 188 | (188 | ) | |||||||||||
PERSONNEL EXPENSES AND OTHER ADMINISTRATIVE EXPENSES | (7,053 | ) | (200 | ) | (7,253 | ) | ADMINISTRATION COSTS | |||||||
DEPRECIATION AND AMORTIZATION | (577 | ) | — | (577 | ) | DEPRECIATION AND AMORTIZATION | ||||||||
OTHER OPERATING INCOME (NET) | (146 | ) | 146 | |||||||||||
9,441 | ||||||||||||||
(1,903 | ) | (1,903 | ) | IMPAIRMENT ON FINANCIAL ASSETS (NET) | ||||||||||
(235 | ) | (235 | ) | PROVISIONS (NET) | ||||||||||
NET OPERATING INCOME | 10,544 | (3,241 | ) | 7,303 | NET OPERATING INCOME | |||||||||
IMPAIRMENT LOSSES (NET) | (1,938 | ) | 1,925 | (13 | ) | IMPAIRMENT LOSSES OF OTHER ASSETS (NET) | ||||||||
PROVISION EXPENSE (NET) | (210 | ) | 210 | |||||||||||
FINANCIAL INCOME AND EXPENSES FROM NON-FINANCIAL ACTIVITIES | 1 | (1 | ) | |||||||||||
OTHER GAINS AND LOSSES (NET) | 97 | (97 | ) | |||||||||||
13 | 13 | GAINS (LOSSES) IN WRITTEN OFF ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE | ||||||||||||
— | — | NEGATIVE GOODWILL | ||||||||||||
1,191 | 1,191 | GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS | ||||||||||||
INCOME BEFORE TAX | 8,495 | — | 8,495 | INCOME BEFORE TAX | ||||||||||
INCOME TAX | (2,080 | ) | — | (2,080 | ) | INCOME TAX | ||||||||
INCOME FROM ORDINARY ACTIVITIES | 6,415 | — | 6,415 | INCOME FROM ORDINARY ACTIVITIES | ||||||||||
INCOME FROM DISCONTINUED OPERATIONS (NET) | — | INCOME FROM DISCONTINUED OPERATIONS (NET) | ||||||||||||
INCOME FOR THE YEAR (+/-) | 6,415 | — | 6,415 | NET INCOME | ||||||||||
INCOME ATTRIBUTED TO MINORITY INTEREST | (289 | ) | — | (289 | ) | PROFIT OR LOSS ATRIBUTABLE TO MINORITY INTEREST | ||||||||
INCOME ATRIBUTED TO THE GROUP | 6,126 | — | 6,126 | NET INCOME ATRIBUTED TO PARENT COMPANY |
VIII-4
Table of Contents
INCOME STATEMENT IN ACCORDANCE WITH BANK OF SPAIN CIRCULAR 4/2004 | 2006 | Reconciliation | 2006 | INCOME STATEMENT IN ACCORDANCE WITH BANK OF SPAIN CIRCULAR 6/2008 | ||||||||||
INTEREST AND SIMILAR INCOME LESS INTEREST EXPENSE AND SIMILAR CHARGES | 7,995 | 143 | 8,138 | |||||||||||
8,138 | NET INTEREST INCOME | |||||||||||||
INCOME FROM EQUITY INSTRUMENTS | 379 | — | 380 | DIVIDEND INCOME | ||||||||||
NET INTEREST INCOME | 8,374 | 8,518 | ||||||||||||
SHARE OR PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 308 | — | 308 | SHARE OR PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | ||||||||||
NET FEES AND COMMISSIONS | 4,335 | (144 | ) | 4,191 | NET FEES AND COMMISSIONS | |||||||||
INSURANCE ACTIVITY INCOME | 650 | (650 | ) | |||||||||||
GAINS OR LOSSES ON FINANCIAL ASSETS AND LIABILITIES AND EXCHANGE DIFFERENCES (NET) | 2,034 | (396 | ) | 1,638 | INCOME FROM INSURANCE ACTIVITIES (NET) AND EXCHANGE DIFFERENCES (NET) | |||||||||
490 | 490 | OTHER OPERATING INCOME AND EXPENSES (NET) | ||||||||||||
GROSS INCOME | 15,701 | (558 | ) | 15,143 | GROSS INCOME | |||||||||
COST OF SALES (NET) | 131 | (131 | ) | |||||||||||
PERSONNEL EXPENSES AND OTHER ADMINISTRATIVE EXPENSES | (6,330 | ) | — | (6,330 | ) | ADMINISTRATION COSTS | ||||||||
DEPRECIATION AND AMORTIZATION | (472 | ) | — | (472 | ) | DEPRECIATION AND AMORTIZATION | ||||||||
OTHER OPERATING INCOME (NET) | (146 | ) | 146 | |||||||||||
8,340 | ||||||||||||||
(1,457 | ) | (1,457 | ) | IMPAIRMENT ON FINANCIAL ASSETS (NET) | ||||||||||
(1,338 | ) | (1,338 | ) | PROVISIONS (NET) | ||||||||||
NET OPERATING INCOME | 8,883 | (3,338 | ) | 5,545 | NET OPERATING INCOME | |||||||||
IMPAIRMENT LOSSES (NET) | (1,504 | ) | 1,492 | (12 | ) | IMPAIRMENT LOSSES OF OTHER ASSETS (NET) | ||||||||
PROVISION EXPENSE (NET) | (1,338 | ) | 1,338 | |||||||||||
FINANCIAL INCOME AND EXPENSES FROM NON-FINANCIAL ACTIVITIES | 2 | (2 | ) | |||||||||||
OTHER GAINS AND LOSSES (NET) | 987 | (987 | ) | |||||||||||
956 | 956 | GAINS (LOSSES) IN WRITTEN OFF ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE | ||||||||||||
— | — | NEGATIVE GOODWILL | ||||||||||||
541 | 541 | GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS | ||||||||||||
INCOME BEFORE TAX | 7,030 | — | 7,030 | INCOME BEFORE TAX | ||||||||||
INCOME TAX | (2,059 | ) | — | (2,059 | ) | INCOME TAX | ||||||||
INCOME FROM ORDINARY ACTIVITIES | 4,971 | — | 4,971 | INCOME FROM ORDINARY ACTIVITIES | ||||||||||
INCOME FROM DISCONTINUED OPERATIONS (NET) | — | INCOME FROM DISCONTINUED OPERATIONS (NET) | ||||||||||||
INCOME FOR THE YEAR (+/-) | 4,971 | — | 4,971 | NET INCOME | ||||||||||
INCOME ATTRIBUTED TO MINORITY INTEREST | (235 | ) | — | (235 | ) | PROFIT OR LOSS ATRIBUTABLE TO MINORITY INTEREST | ||||||||
INCOME ATRIBUTED TO THE GROUP | 4,736 | — | 4,736 | NET INCOME ATRIBUTED TO PARENT COMPANY |
VIII-5
Table of Contents
• | Consolidated statement of recognised income and expense and consolidated statement of total changes in equity. |
VIII-6
Table of Contents
Prevailing | ||||||||||||||||||||||||
Interest Rate | Maturity | |||||||||||||||||||||||
Issuer | Currency | 2008 | 2007 | 2006 | December 08 | Date | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
ISSUES IN EUROS | ||||||||||||||||||||||||
BBVA | ||||||||||||||||||||||||
july-96 | EUR | 27 | 27 | 27 | 9.37 | % | 22-dec-16 | |||||||||||||||||
february-97 | EUR | — | — | 60 | 6.97 | % | 18-dec-07 | |||||||||||||||||
september-97 | EUR | — | — | 36 | 6.65 | % | 17-dec-07 | |||||||||||||||||
december-01 | EUR | — | — | 1,500 | 3.50 | % | 01-jan-17 | |||||||||||||||||
july-03 | EUR | — | 600 | 600 | 4.32 | % | 17-jul-13 | |||||||||||||||||
november-03 | EUR | 750 | 750 | 750 | 4.50 | % | 12-nov-15 | |||||||||||||||||
october-04 | EUR | 992 | 992 | 991 | 4.37 | % | 20-oct-19 | |||||||||||||||||
february-07 | EUR | 297 | 297 | — | 4.50 | % | 16-feb-22 | |||||||||||||||||
may-08 | EUR | 125 | — | — | 6.03 | % | 03-mar-33 | |||||||||||||||||
july-08 | EUR | 100 | — | — | 6.20 | % | 04-jul-23 | |||||||||||||||||
BBVA CAPITAL FUNDING, LTD. | ||||||||||||||||||||||||
march-97 | EUR | — | — | 46 | 2.71 | % | 20-mar-07 | |||||||||||||||||
october-97 | EUR | — | — | 77 | 4.10 | % | 08-oct-07 | |||||||||||||||||
october-97 | EUR | 229 | 229 | 229 | 6.00 | % | 24-dec-09 | |||||||||||||||||
july-99 | EUR | 73 | 73 | 73 | 6.35 | % | 16-oct-15 | |||||||||||||||||
february-00 | EUR | 442 | 497 | 498 | 6.38 | % | 25-feb-10 | |||||||||||||||||
july-01 | EUR | — | — | — | 04-jul-11 | |||||||||||||||||||
october-01 | EUR | 60 | 60 | 60 | 5.73 | % | 10-oct-11 | |||||||||||||||||
october-01 | EUR | 40 | 40 | 40 | 6.08 | % | 10-oct-16 | |||||||||||||||||
october-01 | EUR | 50 | 50 | 50 | 5.92 | % | 15-oct-16 | |||||||||||||||||
november-01 | EUR | 55 | 55 | 55 | 5.49 | % | 02-nov-16 | |||||||||||||||||
december-01 | EUR | 56 | 56 | 56 | 3.83 | % | 20-dec-16 | |||||||||||||||||
BBVA SUBORDINATED CAPITAL, S.A.U | ||||||||||||||||||||||||
may-05 | EUR | 484 | 497 | 497 | 4.38 | % | 23-may-17 | |||||||||||||||||
october-05 | EUR | 150 | 150 | 150 | 5.69 | % | 13-oct-20 | |||||||||||||||||
october-05 | EUR | 250 | 250 | 250 | 5.34 | % | 20-oct-17 | |||||||||||||||||
october-06 | EUR | 1,000 | 1,000 | 1,000 | 5.24 | % | 24-oct-16 | |||||||||||||||||
april-07 | EUR | 750 | 750 | — | 5.51 | % | 03-apr-17 | |||||||||||||||||
april-07 | EUR | 100 | 100 | — | 4.47 | % | 04-apr-22 | |||||||||||||||||
may-08 | EUR | 50 | — | — | 4.75 | % | 19-may-23 | |||||||||||||||||
july-08 | EUR | 20 | — | — | 6.11 | % | 22-jul-18 | |||||||||||||||||
BBVA BANCOMER, S.A. de C.V. | ||||||||||||||||||||||||
may-07 | EUR | 610 | 596 | — | 4.80 | % | 17-may-17 | |||||||||||||||||
ALTURA MARKETS A.V., S.A. | ||||||||||||||||||||||||
november-07 | EUR | 3 | 3 | — | 5.90 | % | 29-nov-17 | |||||||||||||||||
ISSUES IN FOREIGN CURRENCIES | ||||||||||||||||||||||||
BBVA PUERTO RICO, S.A. | ||||||||||||||||||||||||
september-04 | USD | 36 | 34 | 38 | 4.20 | % | 23-sep-14 | |||||||||||||||||
september-06 | USD | 27 | 25 | 28 | 5.76 | % | 29-sep-16 | |||||||||||||||||
september-06 | USD | 22 | 21 | 23 | 2.02 | % | 29-sep-16 | |||||||||||||||||
BBVA GLOBAL FINANCE, LTD. | ||||||||||||||||||||||||
december-95 | USD | 144 | 136 | 152 | 7.00 | % | 01-dec-25 | |||||||||||||||||
december-95 | USD | — | — | — | 09-may-06 | |||||||||||||||||||
BANCO BILBAO VIZCAYA ARGENTARIA, CHILE | CLP | 287 | 283 | 276 | Various | Various |
IX-1
Table of Contents
Prevailing | ||||||||||||||||||||||||
Interest Rate | Maturity | |||||||||||||||||||||||
Issuer | Currency | 2008 | 2007 | 2006 | December 08 | Date | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
BBVA BANCOMER, S.A. de C.V. | ||||||||||||||||||||||||
november-98 | — | — | — | — | 28-sep-06 | |||||||||||||||||||
july-05 | USD | 360 | 340 | 377 | 5.38 | % | 22-jul-15 | |||||||||||||||||
september-06 | MXN | 130 | 156 | 174 | 8.23 | % | 18-sep-14 | |||||||||||||||||
may-07 | USD | 360 | 340 | — | 6.01 | % | 17-may-22 | |||||||||||||||||
july-08 | MXN | 62 | — | — | 9.35 | % | 16-jul-18 | |||||||||||||||||
october-08 | MXN | 156 | — | — | 9.38 | % | 24-sep-18 | |||||||||||||||||
december-08 | MXN | 1 | — | — | 9.74 | % | 26-nov-20 | |||||||||||||||||
december-08 | MXN | 142 | — | — | 9.74 | % | 26-nov-20 | |||||||||||||||||
BBVA CAPITAL FUNDING, LTD. | ||||||||||||||||||||||||
october-95 | JPY | 79 | 60 | 64 | 6.00 | % | 26-oct-15 | |||||||||||||||||
february-96 | USD | — | — | — | — | 14-feb-06 | ||||||||||||||||||
november-96 | USD | — | — | — | — | 27-nov-06 | ||||||||||||||||||
BBVA BANCOMER CAPITAL TRUST, INC. | ||||||||||||||||||||||||
february-01 | USD | — | — | — | — | 16-feb-11 | ||||||||||||||||||
LNB CAPITAL TRUST I | ||||||||||||||||||||||||
november-01 | USD | — | — | — | — | 08-dic-31 | ||||||||||||||||||
LNB STATUTORY TRUST I | ||||||||||||||||||||||||
december-01 | USD | — | — | — | — | 18-dic-31 | ||||||||||||||||||
BBVA SUBORDINATED CAPITAL, S.A.U | ||||||||||||||||||||||||
october-05 | JPY | 159 | 122 | 127 | 2.75 | % | 22-oct-35 | |||||||||||||||||
october-05 | GBP | 315 | 409 | 447 | 6.28 | % | 21-oct-15 | |||||||||||||||||
march-06 | GBP | 315 | 409 | 447 | 5.00 | % | 31-mar-16 | |||||||||||||||||
march-07 | GBP | 262 | 343 | — | 5.75 | % | 11-mar-18 | |||||||||||||||||
RIVERWAY HOLDING CAPITAL TRUST I | ||||||||||||||||||||||||
march-01 | USD | 7 | 7 | 9 | 10.18 | % | 08-jun-31 | |||||||||||||||||
TEXAS REGIONAL STATUTORY TRUST I | ||||||||||||||||||||||||
july-01 | USD | — | — | 4 | 9.30 | % | 25-jul-31 | |||||||||||||||||
february-04 | USD | 36 | 34 | 38 | 7.84 | % | 17-mar-34 | |||||||||||||||||
COMPASS BANCSHARES INC | ||||||||||||||||||||||||
july-01 | USD | — | 2 | — | 10.18 | % | 31-jul-31 | |||||||||||||||||
STATE NATIONAL CAPITAL TRUST I | ||||||||||||||||||||||||
july-03 | USD | 11 | 10 | — | 5.23 | % | 30-sep-33 | |||||||||||||||||
STATE NATIONAL STATUTORY TRUST II | ||||||||||||||||||||||||
march-04 | USD | 7 | 7 | — | 4.66 | % | 17-mar-34 | |||||||||||||||||
TEXASBANC CAPITAL TRUST I | ||||||||||||||||||||||||
july-04 | USD | 18 | 17 | — | 6.43 | % | 23-jul-34 | |||||||||||||||||
COMPASS BANK | ||||||||||||||||||||||||
august-99 | USD | 128 | 124 | — | 8.10 | % | 15-agu-09 | |||||||||||||||||
april-99 | USD | 72 | 69 | — | 6.45 | % | 01-may-09 | |||||||||||||||||
march-05 | USD | 201 | 188 | — | 5.50 | % | 01-apr-20 | |||||||||||||||||
march-06 | USD | 186 | 175 | — | 5.90 | % | 01-apr-26 | |||||||||||||||||
sep-07 | USD | 250 | 236 | — | 6.40 | % | 01-oct-17 | |||||||||||||||||
BBVA COLOMBIA, S.A. | ||||||||||||||||||||||||
august-06 | COP | 128 | 135 | 136 | 13.33 | % | 28-agu-11 | |||||||||||||||||
BBVA PARAGUAY, S.A. | ||||||||||||||||||||||||
Various | PYG | 2 | — | — | Various | Various | ||||||||||||||||||
Various | USD | 6 | — | — | Various | Various |
IX-2
Table of Contents
Prevailing | ||||||||||||||||||||||||
Interest Rate | Maturity | |||||||||||||||||||||||
Issuer | Currency | 2008 | 2007 | 2006 | December 08 | Date | ||||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
BANCO CONTINENTAL, S.A. | ||||||||||||||||||||||||
december-06 | USD | 22 | 20 | — | 4.35 | % | 15-feb-17 | |||||||||||||||||
may-07 | PEN | 9 | 9 | — | 5.85 | % | 07-may-22 | |||||||||||||||||
may-07 | USD | 14 | 14 | — | 6.00 | % | 14-may-27 | |||||||||||||||||
june-07 | PEN | 14 | 12 | — | 3.72 | % | 18-jun-32 | |||||||||||||||||
september-07 | USD | 14 | 14 | — | 3.65 | % | 24-sep-17 | |||||||||||||||||
november-07 | PEN | 12 | 11 | — | 3.56 | % | 19-nov-32 | |||||||||||||||||
february-08 | USD | 14 | — | — | 6.46 | % | 28-feb-28 | |||||||||||||||||
june-08 | USD | 22 | — | — | 5.30 | % | 15-jun-18 | |||||||||||||||||
july-08 | PEN | 11 | — | — | 3.06 | % | 08-jul-23 | |||||||||||||||||
september-08 | PEN | 12 | — | — | 3.09 | % | 09-sep-23 | |||||||||||||||||
november-08 | USD | 14 | — | — | 4.47 | % | 15-feb-19 | |||||||||||||||||
december-08 | PEN | 7 | — | — | 4.19 | % | 15-dec-33 | |||||||||||||||||
TOTAL | 10,785 | 10,834 | 9,385 | |||||||||||||||||||||
IX-3
Table of Contents
Six Months Ended | Six Months Ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
Millions of euros | ||||||||
INTEREST AND SIMILAR INCOME | 15,622 | 14,297 | ||||||
INTEREST EXPENSE AND SIMILAR CHARGES | (9,491 | ) | (9,167 | ) | ||||
REMUNERACION DE CAPITAL REEMBOLSABLE A LA VISTA | 6,131 | 5,130 | ||||||
NET INTEREST INCOME | 206 | 150 | ||||||
DIVIDEND INCOME | 2,762 | 2,883 | ||||||
FEE AND COMMISSION INCOME | (518 | ) | (530 | ) | ||||
FEE AND COMMISSION EXPENSES | 310 | 622 | ||||||
NET GAINS (LOSSES) ON FINANCIAL ASSETS AND LIABILITIES | 89 | 181 | ||||||
NET EXCHANGE DIFFERENCES | 1,628 | 1,787 | ||||||
OTHER OPERATING INCOME | ||||||||
OTHER OPERATING EXPENSES | (1,375 | ) | (1,535 | ) | ||||
GROSS INCOME | 9,352 | 8,826 | ||||||
ADMINISTRATION COSTS | (3,940 | ) | (3,708 | ) | ||||
Personnel expenses | (2,373 | ) | (2,268 | ) | ||||
General and administrative expenses | (1,567 | ) | (1,440 | ) | ||||
DEPRECIATION AND AMORTIZATION | (361 | ) | (330 | ) | ||||
PROVISIONS (NET) | (819 | ) | (55 | ) | ||||
IMPAIRMENT ON FINANCIAL ASSETS(NET) | (1,776 | ) | (1,033 | ) | ||||
NET OPERATING INCOME | 2,455 | 3,700 | ||||||
IMPAIRMENT ON OTHER ASSETS (NET) | (39 | ) | (11 | ) | ||||
GAINS (LOSSES) IN WRITTEN OF ASSETS NOT CLASSIFIED AS NON-CURRENT ASSETS HELD FOR SALE | 51 | 9 | ||||||
NEGATIVE GOODWILL | — | — | ||||||
GAINS (LOSSES) IN NON-CURRENT ASSETS HELD FOR SALE NOT CLASSIFIED AS DISCONTINUED OPERATIONS | (31 | ) | 96 | |||||
INCOME BEFORE TAX | 2,436 | 3,794 | ||||||
TAX EXPENSE (INCOME) | (328 | ) | (902 | ) | ||||
INCOME FROM CONTINUED OPERATIONS | 2,108 | 2,891 | ||||||
INCOME FROM DISCONTINUED OPERATIONS (NET) | — | — | ||||||
NET INCOME | 2,108 | 2,891 | ||||||
X-1
Table of Contents
Exhibit | ||||
Number | Description | |||
1 | .1 | Amended and Restated Bylaws (Estatutos) of the Registrant*. | ||
4 | .1 | Plan of Merger between Banco Bilbao Vizcaya, S.A. and Argentaria, Caja Postal y Banco Hipotecario, S.A.** | ||
4 | .2 | Master Agreement of Strategic Alliance between Telefónica and BBVA, together with an English translation.*** | ||
4 | .3 | Transaction Agreement by and between Banco Bilbao Vizcaya Argentaria, S.A. and Compass Bancshares, Inc. dated as of February 16, 2007.**** | ||
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 |
* | Incorporated by reference to BBVA’s Registration Statement onForm F-3 (FileNo. 333-144784) filed with the Securities and Exchange Commission on July 18, 2008. |
** | Incorporated by reference to BBVA’s Registration Statement onForm F-4 (FileNo. 333-11090) filed with the Securities and Exchange Commission on November 4, 1999. |
*** | Incorporated by reference to BBVA’s 1999 Annual Report onForm 20-F. |
**** | Incorporated by reference to BBVA’s 2006 Annual Report onForm 20-F. |