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

As a result, the “Gross income” for the six months ended June 30, 2010 was €3,460 million, a 2.0%
decrease from €3,532 million for the six months ended June 30, 2009.
• The balance of “Operating expenses” for the six months ended June 30, 2010 was €1,260 million, a
1.5% decrease compared with the €1,279 million recorded for the six months ended June 30, 2009. In
the last 12 months the area has reduced its staff by nearly 200 in Spain, and the number of offices in
122. It is important to note that the area has already carried out most of its transformation.
As a result of the foregoing, the "Operating income" for the six months ended June 30, 2010 was €2,200
million, a 2.3% decrease from of €2,252 million recorded for the six months ended June 30, 2009.
• The balance of “Impairment losses on financial assets (net)” for the six months ended June 30, 2010
was €501 million, similar to the figure of €504 million for the six months ended June 30, 2009.
• The balance of "Provisions (net)” and “Other gains (losses)” for the six months ended June 30, 2010
was €-6 million, which compares with losses of €22 million recorded for the six months ended June 30,
2009.
As a result, the balance of “Income before tax” for the six months ended June 30, 2010 was €1,694 million,
a 1.9% decrease over the €1,727 million recorded for the six months ended June 30, 2009.
• The balance of Income tax” for the six months ended June 30, 2010 was €508 million, compared with
€515 million for the six months ended June 30, 2009, a year-on-year fall of 1.3%.
As a result, “Net income” for the six months ended June 30, 2010 was €1,186 million, a fall of 2.2% on the
€1,212 million for the six months ended June 30, 2009.
The changes in the principal headings of activity in this area of business were as follows:
• As of June 30, 2010, the “Loan and advances to customers (gross)” balance was €207,082
million, up 0.1% on the €206,909 million as of December 31, 2009, breaking a series of several
quarters of falls. BBVA continues to grow in mortgage lending to the household segment and is
growing selectively in the corporate segment.
• As of June 30, 2010, the NPL ratio in Spain for residential mortgage loans was 3.0%, compared with
2.9% at the close of 2009. As of June 30, 2010, the NPL ratio in Spain for developer's mortgage
loans was 16.9% (17.01% at the close of 2009). However, without taking into account doubtfuls
(customers who at the date of these financial statements were not in doubtfuls or default, but
showed impaired risks) it would have been only 10.1%. Mortgage loans to developers only represent
7.7% of loans in the area of Spain and Portugal, and are 50% guaranteed with completed homes,
21% with work underway and only 29% with land. In addition, the coverage of these loans is much
higher than the value of the debt pending collection.
• As of June 30, 2010, total customer funds, both on-balance and off-balance, including mutual funds,
pension funds and deposits, were €139,055 million, a 4.2% decrease from the €154,154 million
recorded as of December 31, 2009, due primarily to the drop off-balance funds as a result of the
negative performance of the markets, particularly in the second quarter of 2010.
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