Balance Sheet at 31 December 2010 of BBVA

Transformation of branch processes
With strong contribution to branch transformation, a number of initiatives have been developed: First
Contact Sale –improvement of the binding offer ratio during the first contact with the customers–, for the
main products contracted by individual customers, Framework Contract, which develops multi-product
clauses to simplify as far as possible subsequent contracts with the same customer through any channel,
product catalog purging, or the development of a structural model for measuring “hidden” servicing
(MAR), which enables the activity carried out at the branch to be analyzed by function and categorize it
homogeneously throughout the Group in order to increase in 2011 at least by 10% the time allocated to
selling and reduce by 30% the time that managers devote to other types of activity.
In addition, work has been carried out to reduce branch reporting, thus making their daily activity easier
and improving the conditions for better commercial dedication.
Moreover, other initiatives have been launched aimed at improving and simplifying the Group’s way of
operating:
• Simplification of the budget and procurement process for improving budget-related dialog with
the Business Units, reducing current granularity and simplifying authorization circuits.
• Standardization of criteria and procedures for the outsourcing of activities, as well as the
contribution of Best Outsourcing Practices to the Group.
• Other initiatives related to effective and efficient presentations, mail streamlining, meeting
optimization, etc.
Technology and operations
In 2010, technology and operations at BBVA evolved according to the Strategic Plan 2007-2010 and
progressed in line with the increased efficiency envisaged in its various areas:
• Technology and Operation: significant progress has been made in service industrialization, reaching
virtualization ratios at the branches of 45:1, i.e., the applications of 45 office positions are being run
on each virtual server, resulting in considerable management and maintenance saving and in
reductions in response times in the event of breakdowns. This measure has been complemented
with the deployment of the “Todomovil” project, which offers branches the possibility of
communicating in an ubiquitous manner, thus separating the activity from the physical work position.
The “Mainframe Downsizing” project has also been implemented, which will enable back-office
systems to evolve towards new technologies in the coming years.
• Design and Development: continuing with the development of the BBVA Platform, progress has
been made in many commercial functionalities which improve the manager’s agenda management
and cross-selling of products and services. Major progress has also been made in the development
of the new on-line banking, which has been described by Forrester as a benchmark in proper use of
the so-called Web 2.0. Finally, the design of the future WB&AM technological platform has begun,
which will increase its functionalities in a disruptive manner in the coming years.
• Operations and Production: the new Operations Model based on service industrialization through the
OpPlus centers and new technologies has been consolidated, generating €14 million in saving this
year, a figure which is expected to increase as the model is deployed in all geographies. An
expansion plan has been put in place to make the most of the model’s potential.
The new Strategic Plan 2011-2015 has been designed, which proposes new internal goals to make a new
quantitative and qualitative leap in the area’s results that will enable a new frontier of excellence to be
reached:
• Strengthening its role as the Group’s main driving force for transformation through large technology
projects (new technology projects to respond to the expansion plans of the Business Areas, USA
Platform, WB&AM platform…) which constitute the BBVA of the 21 st century.
• Transforming its production and delivery model to be able to solve the equation of having to do
“much more” with “more quality, more flexibility and more efficiency”.
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