Balance Sheet at 31 December 2010 of BBVA

Translation of financial statements originally issued in Spanish and prepared in accordance with generally accounting principles Spain
(See Note 1 and 54). In the event of a discrepancy, the Spanish-language version prevails.
iii) Completed homes (rest).
Includes completed homes that, on the date referred to by the financial statements, have the
corresponding current first-occupancy permit issued by the corresponding administrative authority, but
that do not qualify for consideration under section i) above. The value of the rights received as collateral
shall be 60% of the cost of the completed home and the appraisal value of its current state, whichever is
lower.
The cost will be the purchase price declared by the borrower in the public deed.
In the case of finance for real estate construction, the cost will include the amount declared on the
purchase deed for the land, together with any necessary expenses actually paid for its development,
excluding commercial and financial expenses, plus the sum of the costs of construction as accredited by
partial construction work certificates issued by experts with appropriate professional qualifications,
including that corresponding to the end of the work. In the case of groups of homes that form part of
developments partially sold to third parties, the cost shall be that which can be rationally attributed to the
homes making up the collateral.
iv) Land, lots and other real estate assets.
The value of the rights received as collateral shall be 50% of the cost of the lot or real-estate asset
affected and the appraisal value of its current state, whichever is lower. For these purposes, the cost is
made up of the purchase price declared by in the public deed, plus the necessary expenses that have
actually been incurred by the borrower for the consideration of the land or lot in question as consolidated
urban land, as well as those stipulated in section iii) above.
Transactions secured by other collateral (not real estate)
Transactions that have as collateral any of the pledges indicated below shall be hedged by applying the
following criteria:
i) Partial cash guarantees
Transactions that have partial cash guarantees shall be hedged by applying the hedging percentages
stipulated as general criteria to the difference between the amount for which they are registered in the
asset and the current value of the deposits.
ii)
Partial pledges
Transactions that have partial pledges on shares in monetary financial institutions or securities
representing debt issued by government or credit institutions rated in the “negligible risk” class, or other
financial instruments traded on asset markets, shall be hedged by applying the hedging percentages
stipulated as a general rule to the difference between the amount for which they are registered in the
asset and 90% of the fair value of these financial instruments.
2. Not individually impaired assets
Those debt instruments, whoever the obligor and whatever the guarantee or collateral, that are not
considered individually impaired are collectively assessed, including the assets in a group with similar credit
risk characteristics, including sector of activity of the debtor or the type of guarantee.
The allowance percentages of hedge are as follows:
Allowance Percentages for Non-Impaired transaction collectively assesses
Type of Risk
Allowance Percentage Range
Negligible risk 0%
Low risk 0.06% - 0.75%
Medium-low risk 0.15% - 1.88%
Medium risk 0.18% - 2.25%
Medium-high risk 0.20% - 2.50%
High risk 0.25% - 3.13%
3. Country Risk Allowance or Provision
Country risk is the risk associated with customers resident in a specific country due to circumstances other
than normal commercial risk. Country risk comprises sovereign risk, transfer risk and other risks arising from
international financial activity. On the basis of the country’s economic performance, political situation,
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