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.
- In the denominator, the weighted average number of shares outstanding is increased by the
estimated number of shares after the conversion if done that day.
As a result, as can be seen in the following table, for 2010 and 2009 the amount of the basic earnings per
share and diluted earnings per share coincide, as since the diluting effect of the conversion is mandatory, it
should also be applied to the calculation of the basic earnings per share.
The calculation of earnings per share in 2010 and 2009 is as follows:
Basic and Diluted Earnings per Share 2010 2009
Numerator for basic and diluted earnigs per share (million of euros):
Net income attributed to parent company (*) 4,606 4,210
+ADJUSTMENTt: Mandatory convertible bonds interest expenses 70 18
Net income adjusted (millions of euros) (A) 4,676 4,228
Denominator for basic earnings per share (number of shares outstanding) - -
Weighted average number of shares outstanding (1) 3,762 3,719
Weighted average number of shares outstanding x corrective factor (2) - 3,860
+ADJUSTMENT: Average number of estimated shares to be converted 221 39
Adjusted number of shares (B) 3,983 3,899
Basic earnings per share (Euros per share)A/B 1.17 1.08
Diluted earnings per share (Euros per share)A/B 1.17 1.08
(1) 'Weighted average number of shares outstanding (millions of euros), excluded weighted average of treasury
shares during the period
(2) Corrective factor, due to the capital increase with pre-emptive subscription right, applied for the previous
years.
(*) "Net income attributed to parent company" of the consolidated income statements of the Goup.
As of December 31, 2010 and 2009, except for the aforementioned convertible bonds, there were no other
financial instruments, share option commitments with employees or discontinued transactions that could
potentially affect the calculation of the basic earnings per share for the years presented.
5. RISK EXPOSURE
Dealing in financial instruments can entail the assumption or transfer of one or more classes of risk by
financial institutions. The risks related to financial instruments are:
• Credit risk: Credit risk defined as the risk that one party to a financial instrument will cause a financial
loss for the other party by failing to discharge an obligation.
• Market risks: These are defined as the risks arising from the maintenance of financial instruments
whose value may be affected by changes in market conditions. It includes three types of risk:
- Foreign-exchange risk: this is the risk resulting from variations in foreign exchange rates.
- Interest rate risk: this arises from variations in market interest rates.
- Price risk: This is the risk resulting from variations in market prices, either due to factors
specific to the instrument itself, or alternatively to factors which affect all the instruments
traded on the market.
• Liquidity risk: this is the possibility that a company cannot meet its payment commitments duly
without having to resort to borrowing funds under onerous conditions, or damaging its image and
reputation of the entity.
PRINCIPLES AND POLICIES
The general guiding principles that the Bank follows to define and monitor its risk profile are set out below:
• The risk management function is unique, independent and global.
• The assumed risks must be compatible with the target capital adequacy and must be identified,
measured and assessed. Monitoring and management procedures and sound control and mitigation
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