Balance Sheet at 31 December 2010 of BBVA

inflation, this is forcing the authorities to take further adjustment measures, including a recent rise in interest
rates and increased reserve ratios. Given the determination of the authorities to contain growth and inflation
in order to prevent overheating of the economy, we continue to expect moderate growth, which nevertheless
will reach 10% in 2010. Likewise, new monetary adjustment measures are expected to be taken in 2011 to
check loan growth and control hikes in real estate prices. In this regard, the authorities have publicly
announced their intention to switch to a “prudent” monetary policy.
In terms of exchange rates, there has been a general appreciation of all the currencies that affect the
Group's financial statements, except in the case of the Venezuelan bolivar and the average exchange rate of
the Argentinean peso. During the quarter, the negative differentiation of the euro in the currency markets has
led to widespread appreciation of the most relevant currencies for the Group’s results. In all, the effect of the
exchange rates on both the year-on-year comparison of the Bank’s income statements and on the quarteron-quarter
performance is positive.
2. BALANCE SHEET AND BUSINESS
As of December 31, 2010, the Bank's balance sheet totaled €392,111 million (€391,845 million in 2009). In
2010, the Loans and receivables heading reached a total of €264,278 million, i.e. a 3.1% decrease on the
previous year. As of December 31, 2010, the Customer deposits heading reached €194,079 million, a 7.5%
increase on 2009.
3. INCOME STATEMENT
In 2010, the Bank's pre-tax profit was €3,413 million (€3,448 million in 2009). Net profit was €2,904 million
(€2,981 million in 2009).
The “Administration costs" heading increased from €3.337 million in 2009 to €3,409 million in 2010, mainly
due to the increase in rental costs.
In 2010 gross income was €9,552 million, versus €9,846 million in 2009.
In 2010 the net interest income stood at €5,041 million, versus €6,090 million in 2009.
4. RISK MANAGEMENT AT BBVA
BBVA's risk management system is described in Note 5 “Risk exposure” of the accompanying financial
statements.
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