BANCO BILBAO VIZCAYA ARGENTARIA, S.A. AND ... - BBVA

BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
AND COMPANIES COMPOSING THE BANCO BILBAO VIZCAYA ARGENTARIA GROUP
EXPLANATORY NOTES FOR THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS CORRESPONDING TO
THE SIX-MONTH PERIOD ENDED JUNE 30, 2010
1. INTRODUCTION, BASIS FOR PRESENTATION OF THE INTERIM CONSOLIDATED FINANCIAL
STATEMENTS AND OTHER INFORMATION
1.1 INTRODUCTION
Banco Bilbao Vizcaya Argentaria, S.A. (hereinafter, the Bank or BBVA) is a private-law entity, subject to the
rules and regulations governing banking institutions operating in Spain. The Bank conducts its business
through branches and offices located throughout Spain and abroad.
The Bylaws and other public information about the Bank are available for consultation at its registered
address (Plaza San Nicolás, 4 Bilbao) and on its official website: www.bbva.com.
In addition to the transactions it carries out directly, the Bank heads a group of subsidiaries, jointly-controlled
and associated entities which perform a wide range of activities and which together with the Bank constitute
the Banco Bilbao Vizcaya Argentaria Group (hereinafter, “the Group” or “BBVA Group”). In addition to its
own individual financial statements, the Bank is therefore obliged to prepare the Group’s consolidated
financial statements.
As of June 30, 2010, the Group was made up of 328 companies accounted for under the full consolidation
method and 7 under the proportionate consolidation method. A further 70 companies are accounted for using
the equity method (see Notes 3 and 17 and Appendices II to VII of these interim consolidated financial
statements).
The Group’s consolidated financial statements as of December 31, 2009 were approved by the shareholders
at the Bank’s Annual General Meeting on March 12, 2010.
1.2. BASIS FOR THE PRESENTATION OF THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The Group’s accompanying interim consolidated financial statements are presented in accordance with the
International Financial Reporting Standards endorsed by the European Union (hereinafter, IFRS-EU)
applicable at June 30, 2010, and additionally considering the Bank of Spain Circular 4/2004, of December
22, 2004 (and as amended thereafter). This Bank of Spain Circular is the regulation that implements and
adapts the IFRS-EU for Spanish banks.
The BBVA Group’s interim consolidated financial statements were prepared by the Bank’s directors (at the
Board Meeting held on July 27, 2010) by applying the principles of consolidation, accounting policies and
valuation criteria described in Note 2, so that they present fairly the Group’s consolidated equity and financial
position as of June 30, 2010, together with the consolidated results of its operations, the changes in the
consolidated equity, consolidated recognized income and expenses and consolidated cash flows in the
Group in the six-month period ended June 30, 2010. These interim consolidated financial statements and
their explanatory notes were prepared on the basis of the accounting records kept by the Bank and by each
of the other companies in the Group and include the adjustments and reclassifications required to harmonize
the accounting policies and valuation criteria used by the Group (see Note 2.2).
All accounting policies and valuation criteria with a significant effect in the interim consolidated financial
statements were applied in their preparation.
The amounts reflected in the accompanying consolidated financial statements are presented in millions of
euros, except as stated otherwise due to the need for a smaller unit. Therefore, there may be occasions
when a balance does not appear in the financial statements because it is in units of euros. In addition, the
percentage changes are calculated using thousands of euros. The accounting balances have been rounded
to present the amounts in millions of euros. As a result, the amounts appearing in some tables may not be
the arithmetical sum of the preceding figures.
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