Balance Sheet at 31 December 2010 of BBVA

5. THE GROUP'S CAPITAL BASE
Millions of Euros
The Group capital base 2010 2009
Stockholders' funds 36,689 29,362
Adjustments (8,592) (8,171)
Mandatory convertible bonds 2,000 2,000
CORE CAPITAL 30,097 23,191
Preferred securities 5,164 5,129
Adjustments (2,239) (1,066)
CAPITAL (TIER I) 33,023 27,254
Subordinated debt and other 12,140 13,251
Deductions (2,239) (1,065)
OTHER ELIGIBLE CAPITAL (TIER II) 9,901 12,186
CAPITAL BASE (TIER I + TIER II) (a) 42,924 39,440
Minimum capital requirement (BIS II Regulations) 25,066 23,282
CAPITAL SURPLUS 17,858 16,158
RISK WEIGHTED ASSETS (b) 313,327 291,024
BIS RATIO (a)/(b) 13.7% 13.6%
CORE CAPITAL 9.6% 8.0%
TIER I 10.5% 9.4%
TIER II 3.2% 4.2%
The BBVA Group’s capital base, calculated according to rules defined in accordance with the Basel II
capital accord, is €42,924 million as of 31 December 2010, 8.8% more than at December 31, 2009, mainly
due to the share capital increase in 2010, and the profits generated but not distributed.
Risk-weighted assets (APR) increased by 7.7% in the period to €313,327 million as of December 31, 2010,
due mainly to the appreciation of currencies on the Group’s non-euro positions. Excess of capital
resources over the 8.0% of risk-weighted assets required by the regulation stood at €17,858 million.
Core capital as of December 31, 2010 stood at €30,087 million, more than €6,906 million higher than the
figure as of December 31, 2009, due primarily to the effect of the capital increase and the withheld
attributable profit. This core capital represents 9.6% of risk-weighted assets, compared with 8.0% as of
December 31, 2009. It is important to note that If the expected effect of the incorporation of Garanti is
included, with €2,107 million for goodwill and €11,780 million for increased RWA, this core ratio would be
8.6%.
Adding preference shares to core capital, Tier I as of December 31, 2010 stood at €33,023 million, 10.5% of
the risk-weighted assets. This is an increase of 117 basis points on the figure as of December 31, 2009.
Preference shares amount to 15.6% of the total core capital (Tier I).
Other eligible capital (Tier II) mainly consists of subordinated debt, latent capital gains and excess generic
provisions up to the limit set forth in regulations. As of December 31, 2010, Tier II stood at €9,901 million,
i.e., 3.2% of risk-weighted assets. The reduction in this ratio on the figure for December 2009 is basically
due to the amortization of subordinated debt instruments over the year and the increase in deductions for
holdings in financial institutions due to the purchase of the additional stake in CNCB.
By aggregating Tier I and Tier II, as of December 31, 2010, the BIS total capital ratio was 13.7%, 15 basis points above
the figure of 13.6% as of December 31, 2009.
4