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

effect mentioned above (at constant exchange rates there would have been a fall of 4.0% due basically
to market volatility).
• The balance of "Other income/expenses” for the six months ended June 30, 2010 was €79 million, a
23.6% increase from the €64 million recorded for the six months ended June 30, 2009, mainly due to
growth in the insurance business.
As a result of the foregoing, “Gross income” for the six months ended June 30, 2010 amounted €2,725
million a 8.7% increase from the €2,506 million recorded for the six months ended June 30, 2009 (a fall of
1.0% at constant exchange rates).
• The balance of "Operating expenses” for the six months ended June 30, 2010 was €930 million, an
increase of 18.1% over the €787 million recorded for the six months ended June 30, 2009 (+7.6% at
constant exchange rates), mainly due to the growth and transformation plan for the next three years.
As a result of the foregoing, the “Operating income” for the six months ended June 30, 2010 was €1,795
million, an increase of 4.4% over the €1,719 million recorded for the six months ended June 30, 2009 (-4.9%
at constant exchange rates).
• The balance of “Impairment losses on financial assets (net)” for the six months ended June 30, 2010
was down by 11.3% to €656 million, compared to the €740 million recorded for the six months ended
June 30, 2009, mainly due to signs of recovery in economic conditions in Mexico.
• The balance of "Provisions (net)” and “Other gains (losses)” for the six months ended June 30, 2010
was a loss of €39 million, compared with a loss of €15 million for the six months ended June 30, 2009,
mainly due to provisions for credit-card fraud.
As a result of the foregoing, the “Income before tax” for the six months ended June 30, 2010 was €1,100
million, an increase of 14.1% over the €964 million recorded for the six months ended June 30, 2009.
• The balance of “Income tax” for the six months ended June 30, 2010 was €300 million, an increase of
26.7% over the €237 million recorded for the six months ended June 30, 2009, mainly due to the
increase in the tax rate in Mexico starting as of January 1, 2010.
As a result, “Net income” for the six months ended June 30, 2010 was €800 million, an increase of 10.0%
over the €727 million recorded for the six months ended June 30, 2009.
“Net income attributed to parent company" for the six months ended June 30, 2010 was €798 million,
also up 10.0% over the €726 million recorded for the six months ended June 30, 2009, mainly due to the
exchange-rate effect already mentioned, as without this effect on the currency the increase would have been
only 0.2%.
The changes in the principal headings of activity in this area of business were as follows:
• As of June 30, 2010, the balance of “Loans and advances to customers (gross)“ amounted to
€35.648 million, 22.9% more than the €28,996 million as of December 31, 2009, mainly due to the
exchange-rate effect mentioned above (at constant exchange rates the increase would have been
2.2%).
• As of June 30, 2010, total customer funds, both on-balance and off-balance , including mutual funds,
pension funds and other funds, amounted to €67,215 million, an increase of 24.2% over the €54,098
million as of December 31, 2009, due primarily to the exchange-rate effect (at a constant exchange
rate the increase would have been 3.3%).
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