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.
Maximum credit risk exposure
The Bank’s maximum credit exposure as of December 31, 2010, 2009 and 2008 (without including valuation
adjustments nor recognizing the availability of collateral or other credit enhancements to guarantee
compliance) is broken down by financial instrument and counterparties in the table below:
Millions of Euros
Maximum Credit Risk Exposure Notes 2010 2009
Financial assets held for trading 8 13,016 22,833
Debt securities 13,016 22,833
Other financial assets designated at fair value through profit or
loss 9 - -
Debt securities - -
Available-for-sale financial assets 10 23,430 30,314
Debt securities 23,430 30,314
Loans and receivables 11 269,224 260,720
Loans and advances to credit institutions 28,847 27,825
Loans and advances to customers 239,002 232,881
Government 24,204 21,239
Agriculture 1,766 1,888
Industry 29,575 30,623
Real estate and construction 39,566 41,021
Trade and finance 27,935 22,869
Loans to individuals 89,118 87,712
Finance leases 4,723 5,589
Other 22,115 21,940
Debt securities 1,375 14
Held-to-maturity investments 12 9,947 5,438
Derivatives (trading and hedging) 8-13 39,103 38,259
Total balance 354,720 357,564
Financial guarantees 29 57,764 58,174
Drawable by third parties 29 55,330 57,427
Other contingent exposures 29 3,555 7,001
Total off-balance 116,649 122,602
Total maximum credit exposure 471,369 480,166
For financial assets recognized in the accompanying balance sheets, credit risk exposure is equal to the
carrying amount, except for trading and hedging derivatives. The maximum exposure to credit risk on
financial guarantees issued is the maximum for which BBVA is liable if these guarantees are called in.
Regarding the renegotiated financial assets as of December 31, 2010, BBVA did not perform any
renegotiations that resulted in the need to reclassify doubtful risks as outstanding risks. The amount of
financial assets that would be irregular had their conditions not been renegotiated is not significant with
respect to the Bank's total loan portfolio as of December 31, 2010.
For trading and hedging derivatives, this information reflects the maximum credit risk exposure better than
the amount shown on the balance sheet because it does not only include the market value on the date of the
transactions (the carrying amount only shows this figure); it also estimates the potential risk of these
transactions on their due date.
Mitigation of credit risk, collateral and other credit enhancements, including risk hedging and
mitigation policies
In most cases, maximum exposure to credit risk is reduced by collateral, credit enhancements and other
actions that mitigate the Bank's exposure.
The Bank applies a credit risk protection and mitigation policy deriving from the banking approach focused
on relationship banking. On this basis, the provision of guarantees is a necessary but not sufficient
instrument when taking risks; therefore for the Bank to assume risks, it needs to verify the payment or
resource generation capacity to ensure the amortization of the risk incurred.
37