Balance Sheet at 31 December 2010 of BBVA

More documents

Recommendations

Info

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 addition to measuring the sensitivity to 100-basis-point changes in market interest rates, the Bank performs probability calculations that determine the economic capital and risk margin for structural interest rate risk in the BBVA’s banking activity (excluding the Treasury area), based on interest rate curve simulation models. The Bank regularly performs stress tests and sensitivity analysis to complement its assessment of its interest rate risk profile. All these risk measurements are subsequently analyzed and monitored, and levels of risk assumed and the degree of compliance with the limits authorized by the Executive Committee are reported to the various managing bodies of the Bank. As part of the measurement process, the Bank established the assumptions regarding the movement and behavior of certain items, such as those relating to products with no explicit or contractual maturity. These assumptions are based on studies that estimate the relationship between the interest rates on these products and market rates and enable specific balances to be classified into trend-based balances maturing at long term and seasonal or volatile balances with short-term residual maturity. c) Structural currency risk Structural foreign exchange risk is basically caused by exposure to variations in foreign exchange rates that arise in the Bank’s foreign subsidiaries and the provision of funds to foreign branches financed in a different currency to that of the investment. The ALCO is responsible for arranging hedging transactions to limit the capital impact of fluctuations in exchange rates, based on their projected trend, and to guarantee the equivalent euro value of the foreign currency earnings expected to be obtained from these investments. Structural currency risk management is based on the measurements performed by the Risk Area. These measurements use a foreign exchange rate scenario simulation model which quantifies possible changes in value for a given confidence interval and a pre-established time horizon. The Executive Committee authorizes the system of limits and alerts for these risk measurements, which include a limit on the economic capital or unexpected loss arising from the foreign exchange risk of the foreign-currency investments. d) Structural equity risk The Bank’s exposure to structural equity risk comes largely from its holdings in industrial and financial companies with medium- to long-term investment horizons, reduced by the short net positions held in derivative instruments on the same underlying assets, in order to limit portfolio sensitivity to potential price cuts. The Risk Area measures and effectively monitors structural risk in the equity portfolio. To do so, it estimates the sensitivity figures and the capital necessary to cover possible unexpected losses due to the variations in the value of the equity portfolio at a confidence level that corresponds to the institution’s target rating, and taking account of the liquidity of the positions and the statistical performance of the assets under consideration. These figures are supplemented by periodic stress comparisons, back-testing and scenario analyses. 5.3 LIQUIDITY RISK The aim of liquidity risk management, tracking and control is to ensure, in the short-term, that the payment commitments can be duly met without having to resort to borrowing funds under burdensome terms, or damaging the image and reputation of the institution. In the medium term the aim is to ensure that the financing structure is ideal and that it moves in the right direction, in the context of the economic situation, the markets and regulatory changes. Liquidity management and structural finance in the BBVA Group are based on the principle of the financial autonomy of its subsidiaries. This management approach helps prevent or limit liquidity risk by reducing the vulnerability of the BBVA Group during high-risk periods. Once the decentralization is considered by geographical areas/subsidiaries, the management and monitoring of liquidity risk is carried out comprehensively in each of the Group’s units with both a short and long-term Approach. The short-term liquidity approach has a time horizon of up to 366 days. It is focused on the management of payments and collections from Treasury and Markets and includes the operations specific to the areas and the Bank's possible liquidity requirements. The second medium-term or medium-financing approach is focused on financial management of all the balance sheet, with a time horizon of one year or more. 46
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. The comprehensive management of liquidity is carried out by the Assets and Liabilities Committee (ALCO) in each Management Unit. The Financial Management unit, as part of the Financial Division, analyzes the implications of the Bank’s various projects in terms of finance and liquidity and its compatibility with the target financing structure and the situation of the financial markets. The Financial Management unit executes proposals agreed by the ALCO in accordance with the agreed budgets and manages liquidity risk using a broad scheme of limits, sub-limits and alerts approved by the Permanent Delegate Committee. The Risk Area uses these limits to carry out its mediation and control work independently and provides the manager with the support tools and metrics needed for decision-making. Each of the local risk areas, which are independent from the local manager, complies with the corporative principles of liquidity risk control that are established by the Global Market Risk (GRM) unit, which is the global structural risks unit for the whole Group. At the level of each entity, the managing areas request and propose a scheme of quantitative and qualitative limits and alerts that affect liquidity risk in the short and medium term. Once agreed with GRM, controls and limits are proposed to the Board of Directors through its delegate bodies, for approval at least once a year. The proposals submitted by GRM are adapted to the situation of the market according to the risk tolerance level aimed for by the Group. The implementation of a new Liquidity and Finance Manual, which was approved in the last quarter of the year, has meant the extension of schemes limiting the internal financing of business units, the financial structure and financing concentration, as well as establishing alerts in qualitative liquidity indicators. GRM carries out regular measurements of risk incurred and the monitoring of consumption of limits. It develops tools and adapts valuation models, carries out regular stress tests and reports to ALCO and the Group’s Management Committee on a monthly basis about liquidity levels. It also reports more often to the management areas themselves and to the GRM Management Committee. The frequency of communication and the amount of information under the current Contingency Plan is decided by the Liquidity Committee on the proposal of the Technical Liquidity Group (TLG). The TLG carries out the initial analysis of the Bank's short or long-term liquidity situation. The TLG is made up of specialized staff from the Short-Term Cash Desk, Financial Management and the Global Market Risk Unit (UCRAM-Structural Risk). If the alert levels suggest a deterioration of the relative situation, the TLG reports the matter to the Liquidity Committee, which is composed of the managers of the related areas. If required, the Liquidity Committee is responsible for calling the Financing Committee, which is made up of the President and COO, the Director of the Financial Area, the Director of the Risk Area, the Director of Global Business and the Director of Business of the country in question. One of the most significant aspects regarding monitoring and management of liquidity risk in 2010 has been the management and development of the sovereign risk crisis. In this sense, the role of the central banks has been decisive in calming markets during the Eurozone debt crisis and the ECB has been proactive in guaranteeing the liquidity conditions of the interbank markets. The BBVA Group has not needed to use the extraordinary measures established by the Spanish and European authorities to mitigate tension in bank financing. On the regulatory side, the Basel Committee on Banking Supervision (Bank for International Settlements) has proposed a new liquidity regulatory scheme based on two ratios: the Liquidity Coverage Ratio (LCR), to enter into force in 2015; and the Net Stable Funding Ratio (NSFR), which will be implemented in 2018. The Group participated in the corresponding impact study (QIS) and has included the new regulatory challenges in its new general framework for action in the field of Liquidity and Finance. 47
Page 1: For the year ended December 31, 201
Page 4 and 5: Translation of financial statements
Page 56 and 57: The table below outlines the financ
Page 58 and 59: The breakdown, by transaction type
Page 60 and 61: 2009 Unrealized Gains Millions of E
Page 62 and 63: 11. LOANS AND RECEIVABLES 11.1. BRE
Page 64 and 65: Additionally, this heading of the a
Page 66 and 67: As of December 31, 2010 and 2009 th
Page 68 and 69: As of December 31, 2010 and 2009, t
Page 70 and 71: 15. INVESTMENTS 15.1. INVESTMENTS I
Page 72 and 73: The changes in 2010 and 2009 in the
Page 74 and 75: 16. TANGIBLE ASSETS As of December
Page 76 and 77: directives and regulations and by T
Page 78 and 79: In addition to the income tax recog
Page 80 and 81: 20.2. DEPOSITS FROM CREDIT INSTITUT
Page 82 and 83: The changes in 2010 and 2009 in the
Page 84 and 85: This heading of the balance sheet i
Page 86 and 87: 22. PENSION AND OTHER COMMITMENTS T
Page 88 and 89: The defined benefit commitments as
Page 90 and 91: • Other commitments with employee
Page 92 and 93: 22.2.3. Summary of effects on profi
Page 94 and 95: 24. SHARE PREMIUM The amounts under
Page 96 and 97: The percentages of treasury stock h
Page 98 and 99:
29. FINANCIAL GUARANTEES AND DRAWAB
Page 100 and 101:
The amounts recognized in equity in
Page 102 and 103:
38. NET GAINS (LOSSES) ON FINANCIAL
Page 104 and 105:
Equity-instrument-based employee re
Page 106 and 107:
43. IMPAIRMENT LOSSES ON FINANCIAL
Page 108 and 109:
48. ACCOUNTANT FEES AND SERVICES Th
Page 110 and 111:
50. REMUNERATION OF THE BANK’S DI
Page 112 and 113:
The number of “theoretical shares
Page 114 and 115:
APPENDICES 112
Page 116 and 117:
BANCO BILBAO VIZCAYA ARGENTARIA, S.
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
APPENDIX II. Additional information
Page 126 and 127:
Additional Information on Consolida
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
APPENDIX III. Additional informatio
Page 134 and 135:
APPENDIX V. Changes and notificatio
Page 136 and 137:
APPENDIX V. Changes and notificatio
Page 138 and 139:
APPENDIX VI. Fully consolidated sub
Page 140 and 141:
APPENDIX VIII: Information on data
Page 142 and 143:
B) DEBIT OPERATIONS Millions of Eur
Page 144 and 145:
Appendix X. Balance sheets as of De
Page 146 and 147:
APPENDIX XII. List of Agents 3U EMP
Page 148 and 149:
ARCOS GONZALEZ, FELIX ARTEKARITZA A
Page 150 and 151:
BARRIONUEVO VACA, JOSE LUIS BLANCO
Page 152 and 153:
COLL PEREZ-GRIFO, ANA MARTA COOP. O
Page 154 and 155:
EUROCONSULTING ECONOMISTAS, S.L. FE
Page 156 and 157:
GESTION DE INVERSIONES Y PROMOCIONE
Page 158 and 159:
INVERSIONES BARCARES 55, S.L. JAURE
Page 160 and 161:
MARTINEZ FERNANDEZ, HECTOR MAYORDOM
Page 162 and 163:
ORRIOLS GESE, JORDI PASOCORRECTO, S
Page 164 and 165:
ROJAS ALBENDIN, S.L. RUIZ-ESTELLER
Page 166 and 167:
SUBCONTAB, S.L. TORRICO Y SALMERON,
Page 168 and 169:
APPENDIX XIII. Balance Sheet of Ban
Page 170 and 171:
APPENDIX XIV. Years in which the di
Page 172 and 173:
Deposits from customers Redeemable
Page 174 and 175:
Mortgage-backed bonds Non-current a
Page 176 and 177:
Page 178 and 179:
inflation, this is forcing the auth
Page 180 and 181:
6. COMMON STOCK AND TREASURY STOCK
Page 182 and 183:
The grievances and complaints handl
Page 184 and 185:
Development of virtual banking In 2
Page 186 and 187:
Development and coordination of Inn
Page 188 and 189:
12. OTHER INFORMATION AND SUBSEQUEN
Page 190 and 191:
Termination of Directorship Directo
Page 192 and 193:
ANNUAL CORPORATE GOVERNANCE REPORT
Page 194 and 195:
A.3. Complete the following tables
Page 196 and 197:
24/MAY/2010 9/JUN/2010 24/JUN/2010
Page 198 and 199:
Description of the legal restrictio
Page 200 and 201:
B.1.3.Fill in the following tables
Page 202 and 203:
Name of director (person or company
Page 204 and 205:
B.1.8. List, where applicable, any
Page 206 and 207:
c) Total remuneration by type of di
Page 208 and 209:
Article 50 b of the BBVA bylaws est
Page 210 and 211:
4. Propose the senior management re
Page 212 and 213:
Should the board decide against the
Page 214 and 215:
. Matters on which a tie-breaking v
Page 216 and 217:
NO Identify, if applicable, the per
Page 218 and 219:
Amount of non-audit work / Aggregat
Page 220 and 221:
B.2. Committees of the Board of Dir
Page 222 and 223:
Article 32. Composition The Appoint
Page 224 and 225:
The Remuneration committee shall me
Page 226 and 227:
egulators from Spain and abroad may
Page 228 and 229:
established in the specific regulat
Page 230 and 231:
Name of committee Brief description
Page 232 and 233:
Bank or companies of its Group hold
Page 234 and 235:
This organisational set-up is suppl
Page 236 and 237:
MARKET RISK: This risk arises as a
Page 238 and 239:
Liquidity risk. Liquidity risk is t
Page 240 and 241:
Risk materialised in the financial
Page 242 and 243:
During the first half of the year,
Page 244 and 245:
On second summons, twenty-five perc
Page 246 and 247:
the General Meeting as established
Page 248 and 249:
Resolution Three adopted by 95.29%.
Page 250 and 251:
a) The transformation of listed com
Page 252 and 253:
See section: B.1.3 Complies 12. Amo
Page 254 and 255:
See sections: B.1.28 and B.1.30 Com
Page 256 and 257:
34. Directors who give up their pla
Page 258 and 259:
4.- Propose the remuneration policy
Page 260 and 261:
a) To monitor the preparation and t
Page 262 and 263:
G OTHER INFORMATION OF INTEREST If
Page 264 and 265:
(3) Roman Knörr Borrás, who stood
Page 266 and 267:
The provisions registered as of Dec
show all

Balance Sheet at 31 December 2010 of BBVA

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?