Balance Sheet at 31 December 2010 of BBVA

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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 Spanishlanguage version prevails. Financial Instruments LEVEL 3 Valuation techniques Main assumptions Main unobservable inputs 2010 Fair value (Millions of Euros) Calculation of the present value of financial instruments as the current value of future cash flows (discounted at market interest rates), taking into account: Trading portfolio • Estimate of prepayment rates; • Present-value method; and • Issuer credit risk; and • Prepayment rates. Debt securities 505 • Debt securities • “Time default” model for financial instruments in the collateralized debt obligations (CDOs) family • Current market interest rates. • Default correlation. • Credit spread (1) Equity instruments 134 In the case of valuation of asset-backed securities (ABSs), future prepayments are calculated on the conditional prepayment rates that the issuers themselves provide. Available-for-sale financial assets • Equity instruments • Net asset value (NAV) for hedge funds and for equity instruments listed in thin and less active markets The “time-to-default” model uses a Gaussian copula to measure default probability. One of the main variables used is the correlation of defaults extrapolated from several index tranches (ITRAXX and CDX) with the underlying portfolio of our CDOs, using the expected loss as the basis. • Credit spread. (1) Debt securities 228 • NAV supplied by the fund manager. Equity instruments 169 Trading derivatives for interest rate futures and forwards: • Present-value method. • “Libor Market” model. The “Libor Market” model models the complete term structure of the interest rate curve, assuming a multidimensional CEV (constant elasticity of variance) lognormal process for forward interest rates. The CEV lognormal process is used to measure the presence of a volatility shift. • Correlation decay. (2) ASSETS Trading derivatives 160 • Derivatives For variable income and foreign exchange options: • Vol-of-vol (3) • Monte Carlo simulations • Numerical integration • Heston The options are valued through generally accepted valuation models, to which the observed implied volatility is added. • Reversion factor. (4) • Volatility Spot Correlation. (5) LIABILITIES • Credit baskets These models assume a constant diffusion of default intensity. • Defaults correlation. Trading derivatives 25 (1) Credit spread: The spread between the interest rate of a risk-free asset (e.g. Treasury securities) and the interest rate of any other security that is identical in every respect except for quality rating. Spreads are considered as Level 3 inputs when referring to illiquid issues. Based on spreads of similar entities. (2) Correlation decay: The constant rate of decay that allows us to calculate how the correlation evolves between the different pairs of forward rates. (3) Vol-of-Vol: Volatility of implicit volatility. This is a statistical measure of the changes of the spot volatility. (4) Reversion Factor: The speed with which volatility reverts to its mean. (5) Volatility- Spot Correlation: A statistical measure of the linear relationship (correlation) between the spot price of a security and its volatility. 52
The changes in 2009 and 2010 in the balance of Level 3 financial assets and liabilities were as follows: Millions of Euros 2009 Financial Assets Level 3 Changes in the Period Assets Liabilities Assets Liabilities Balance at the beginning 1,239 96 3,047 84 Valuation adjustments recognized in the income statement (124) (13) (122) 6 statement (18) - (7) - Acquisitions, disposals and liquidations (133) (58) (304) (1) Net transfers to level 3 233 - (1,375) 7 Exchange differences - - - - Balance at the end 1,197 25 1,239 96 2010 In 2010 the balance Level 3 financial assets did not register any significant changes. The net transfers in Level 3 correspond to debt instruments of credit institutions whose inputs used in the valuation are no longer observable. This increase is offset by sales, settlements and valuations of equity instruments. The financial assets transferred between the different levels of valuation during 2010 were at the following amounts in the accompanying balance sheets as of December 31, 2010: From: Millions of Euros Level I Level 2 Level 3 Transfer between levels To: Level 2 Level 3 Level 1 Level 3 Level 1 Level 2 ASSETS Financial assets held for trading 27 - 4 118 - 55 Available-for-sale financial assets 263 4 3 205 - 53 Hedging derivatives - - - - - - LIABILITIES- Financial liabilities held for trading - - - - - - Hedging derivatives - - - - - - As of December 31, 2010, the potential effect on the valuation of Level 3 financial instruments of a change in the main models if other reasonable models, more or less favorable, were used, taking the highest or lowest value of the range deemed probable, would mean increasing or reducing the net gains and losses by the following amounts: Millions of Euros Potential Impact on Income Statement Potential Impact on Total Equity Financial Assets Level 3 Sensitivity Analysis Most Favorable Hypotheses Least Favorable Hypotheses Most Favorable Hypotheses Least Favorable Hypotheses ASSETS Financial assets held for trading 43 (90) - - Available-for-sale financial assets - - 10 (114) Hedging derivatives - - - - LIABILITIES- Financial liabilities held for trading 3 (3) - - Total 46 (93) 10 (114) Financial instruments at cost In the Bank there are equity instruments, derivatives with equity instruments as the underlying and certain discretionary profit sharing arrangements that were recognized at cost in its balance sheet as their fair value could not be reliably determined. As of December 31, 2010 and 2009, the balance of these financial instruments amounted to €105 and €97 million, respectively. These instruments are currently in the available-for-sale portfolio. The fair value of these instruments could not be reliably estimated because it corresponds to shares in companies not quoted on organized exchanges, and any valuation technique that could be used would contain significant unobservable inputs. 53
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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
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Equity-instrument-based employee re
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43. IMPAIRMENT LOSSES ON FINANCIAL
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48. ACCOUNTANT FEES AND SERVICES Th
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50. REMUNERATION OF THE BANK’S DI
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The number of “theoretical shares
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APPENDICES 112
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BANCO BILBAO VIZCAYA ARGENTARIA, S.
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APPENDIX II. Additional information
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Additional Information on Consolida
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APPENDIX III. Additional informatio
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APPENDIX V. Changes and notificatio
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APPENDIX V. Changes and notificatio
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APPENDIX VI. Fully consolidated sub
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APPENDIX VIII: Information on data
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B) DEBIT OPERATIONS Millions of Eur
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Appendix X. Balance sheets as of De
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APPENDIX XII. List of Agents 3U EMP
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ARCOS GONZALEZ, FELIX ARTEKARITZA A
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BARRIONUEVO VACA, JOSE LUIS BLANCO
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COLL PEREZ-GRIFO, ANA MARTA COOP. O
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EUROCONSULTING ECONOMISTAS, S.L. FE
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GESTION DE INVERSIONES Y PROMOCIONE
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INVERSIONES BARCARES 55, S.L. JAURE
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MARTINEZ FERNANDEZ, HECTOR MAYORDOM
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ORRIOLS GESE, JORDI PASOCORRECTO, S
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ROJAS ALBENDIN, S.L. RUIZ-ESTELLER
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SUBCONTAB, S.L. TORRICO Y SALMERON,
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APPENDIX XIII. Balance Sheet of Ban
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APPENDIX XIV. Years in which the di
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Deposits from customers Redeemable
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Mortgage-backed bonds Non-current a
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inflation, this is forcing the auth
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6. COMMON STOCK AND TREASURY STOCK
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The grievances and complaints handl
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Development of virtual banking In 2
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Development and coordination of Inn
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12. OTHER INFORMATION AND SUBSEQUEN
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Termination of Directorship Directo
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ANNUAL CORPORATE GOVERNANCE REPORT
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A.3. Complete the following tables
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24/MAY/2010 9/JUN/2010 24/JUN/2010
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Description of the legal restrictio
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B.1.3.Fill in the following tables
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Name of director (person or company
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B.1.8. List, where applicable, any
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c) Total remuneration by type of di
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Article 50 b of the BBVA bylaws est
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4. Propose the senior management re
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Should the board decide against the
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. Matters on which a tie-breaking v
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NO Identify, if applicable, the per
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Amount of non-audit work / Aggregat
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B.2. Committees of the Board of Dir
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Article 32. Composition The Appoint
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The Remuneration committee shall me
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egulators from Spain and abroad may
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established in the specific regulat
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Name of committee Brief description
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Bank or companies of its Group hold
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This organisational set-up is suppl
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MARKET RISK: This risk arises as a
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Liquidity risk. Liquidity risk is t
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Risk materialised in the financial
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During the first half of the year,
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On second summons, twenty-five perc
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the General Meeting as established
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Resolution Three adopted by 95.29%.
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a) The transformation of listed com
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See section: B.1.3 Complies 12. Amo
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See sections: B.1.28 and B.1.30 Com
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34. Directors who give up their pla
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4.- Propose the remuneration policy
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a) To monitor the preparation and t
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G OTHER INFORMATION OF INTEREST If
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(3) Roman Knörr Borrás, who stood
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The provisions registered as of Dec
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Balance Sheet at 31 December 2010 of BBVA

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