Balance Sheet at 31 December 2010 of BBVA

- Customer credit: Most transactions include a personal guarantee from the counterparty. However,
additional collateral is required to assure lending transactions with customers. This can be
mortgage guarantees, money guarantees, pledges of securities or other property-based collateral.
Other kinds of credit enhancement can be carried out, such as: credit derivatives, guarantees.
- Securities representing debt: The collateral or credit enhancement obtained directly from the
issuer or counterparty are inherent in the structure of the instrument.
Portfolio of investments held to maturity: The collateral or credit enhancement obtained directly
from the issuer or counterparty are inherent in the structure of the instrument.
Hedging derivatives: Credit risk is minimised by contractual clearing agreements, in which derivative
assets and liabilities with the same counterparty are netted out for settlement. There may also be
other kinds of security, depending on the solvency of the counterparty and the nature of the
transaction. Financial guarantees, other contingent liabilities and available for third parties: These have
the personal guarantee of the counterparty and, in some cases, additional guarantees from another
financial institution which a credit derivative has been established.
At 31st December 2010, the average amount pending collection on mortgage loans was 53.1% of the
value of the collateral on the loans.
Unimpaired matured financial assets
The balance of financial assets that have mature but are not considered impaired, at 31st
December 2010, including any amount due at that date, was €1,670m. Of these, 64.8% had over-run
the first maturity date by less than one month, while 18.6% had over-run the first maturity date by
between one and two months and 16.6% had over-run first maturity date by between two and three
months.
Doubtful or impaired assets and impairment losses.
The balance of impaired financial assets at 31st December 2010 was €15,472m. Of this sum,
€15,936m come from the loan book and €140m from debt securities. At 31st December 2010, the
amount of impaired contingent liabilities was €324m.
The estimated value of the assets securing doubtful risks with collateral at 31st December 2010 was
greater than the amount outstanding on such risks.
Changes have been booked during 2010 for the financial assets and contingent liabilities that have
impaired. A total of €13,207m have been added; €9,138m have been recovered; €4,307m have been
charged down and €247m have been booked as exchange rate and other differences.
The Group's non-performing asset ratio on ´Customer credit´ and ´Contingent Liabilities' at 31st
December 2010 was 4.1%, ie, two percentage point increase against the previous year.
Renegotiated financial assets
At 31st December 2010, the amount of renegotiated financial assets, which could have
been impaired had their terms and conditions not been negotiated, did not vary
significantly against the previous year.
MARKET RISK
Market risk in 2010
The BBVA Group's market risk has risen slightly in 2010 compared against earlier years.
The average exposure in 2010 (calculated as VaR without curve flattening) was €32.9m.
WARNING: The English version is only a translation of the original in Spanish for information purposes. In case of a discrepancy,
the Spanish original prevails.