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

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Changes in the Group The most significant changes in subsidiaries during the six months ended June 30, 2010 and 2009 are as follows: In the six months period ended June 30, 2010 • Purchase of Credit Uruguay Banco In May 2010, the Group announced that it has reached an agreement to acquire, through its subsidiary BBVA Uruguay, the Credit Uruguay Banco, from a French financial group for an approximate total of 100 million US dollars. This acquisition has not yet been formalized, as it was still pending the corresponding authorizations at the time these accompanying interim consolidated financial statements were prepared. In 2009 • Purchase of assets and liabilities of Guaranty Bank On August 21, 2009, through its subsidiary BBVA Compass, the Group acquired certain Guaranty Bank assets and liabilities from FDIC through a public auction for qualified investors. BBVA Compass acquired assets, mostly loans, for approximately $11,441 million (approximately €8,016 million) and assumed liabilities, mostly customer deposits, for $12,854 million (approximately €9,006 million). These acquired assets and liabilities represented 1.5% and 1.8% of the Group's total assets and liabilities, respectively, on the acquisition date. In addition, the purchase included a loss-sharing agreement with the U.S. supervisory body FDIC under which the latter undertook to assume 80% of the losses of the loans purchased by the BBVA Group up to the first $2,285 million, and up to 95% of the losses if they exceeded this amount. This commitment has a maximum term of 5 or 10 years, based on the portfolios. 4. DIVIDENDS PAID BY THE BANK The dividends paid per share during the six months ended June 30, 2010 and 2009, respectively, were as follows: Dividends Paid % Over Nominal June 2010 Euros per Share Amount (Millions of Euros) % Over Nominal June 2009 Euros per Share Amount (Millions of Euros) Ordinary shares 31% 0.150 562 34% 0.167 626 Rest of shares - - - - - - Total dividends paid 31% 0.150 562 34% 0.167 626 Dividends with charge to income 31% 0.150 562 34% 0.167 626 Dividends with charge to reserve or share premium - - - - - - Dividends in kind - - - - - - On April 12, 2010, the complementary dividend for the year 2009 was paid for a gross amount of €0.150 per share (€0.1215 net per share). The Board of Directors of Banco Bilbao Vizcaya Argentaria, S.A. at a meeting held on June 30, 2010, resolved to distribute the first dividend against the profit of 2010, amounting to a total of €0.090 gross (€0.0729 net) per share. The aggregate amount of the interim dividends declared as of June 30, 2010 that was paid as of July 10, 2010, net of the amount collected by the Group companies, was €332 million and was recognized under the heading “Stockholders’ funds - Dividends and remuneration” in the consolidated balance sheet (Note 23). 42
The provisional financial statement prepared as of May 31, 2010 by Banco Bilbao Vizcaya Argentaria, S.A. in accordance with legal requirements evidencing the existence of sufficient liquidity for the distribution of the amounts to the interim dividend was as follows: Available Amount for Interim Dividend Payments May 31, 2010 Profit at each of the dates indicated, after the provision for income tax 1,432 Less - - Estimated provision for Legal Reserve - Interim dividends paid - Maximum amount distributable 1,432 Amount of proposed interim dividend 337 The AGM held on March 13, 2009 approved an additional shareholder remuneration to complement the 2008 cash dividend in the form of an in-kind distribution of a portion of the share premium reserve, €317 million, by giving Banco Bilbao Vizcaya Argentaria, S.A. stockholders shares in the common stock from the treasury stock. 5. EARNINGS PER SHARE The calculation for earning per share for the six months ended June 30, 2010 and 2009 was as follows: Basic and Diluted Earnings per Share June June 2010 2009 Net income attributed to parent company 2,527 2,799 Adjustment: Mandatory convertible bonds interest expenses 35 - Net income adjusted (Base de cálculo beneficio básico y diluido por a 2,562 2,799 Denominator for earnings per share - Weighted average number of shares outstanding (*) 3,697 3,703 Average number of estimated shares to be converted 212 - Adjusted number of shares (Denominator for basic earnings per share) 3,909 3,703 Basic earnings per share (Euros per share) 0.66 0.76 Diluted earnings per share (Euros per share) 0.66 0.76 (*) 'Weighted average number of shares outstanding (millions of euros), excluded weighted average of treasury shares during the period Basic earnings per share are determined by dividing the “Net income attributed to parent company” from the accompanying consolidated income statements by the weighted average number of shares outstanding during the period. Diluted earnings per share are determined using a method similar to that used to calculate basic earnings per share; however, the weighted average number of shares outstanding is adjusted to take into account the potential dilutive effect of certain financial instruments that could generate the issue of new Bank shares (share option commitments with employees, warrants on parent company shares, convertible debt instruments) or for discontinued operations. Therefore, in 2009, the Bank issued convertible bonds amounting to €2,000 million, which did not significantly affect the calculation of diluted earnings (see Note 23.4). Since the conversion is obligatory on the date of their final maturity, in accordance with the IAS 33 criteria, the adjustments must be applied to both the calculation of the diluted earnings per share as well as the basic earnings per share. These adjustments require that, in both the basic earnings and the diluted earnings per share: - In the numerator, the Net income attributed to Parent Company is increased by the amount of the coupon that it would stop paying, generating the so-call “Net income adjusted” from the table above. 43
Page 1: BANCO BILBAO VIZCAYA ARGENTARIA, S.
Page 4 and 5: 27. COMMON STOCK...................
Page 6 and 7: Translation of consolidated financi
Page 8 and 9: Millions of Euros LIABILITIES AND E
Page 10 and 11: Millions of Euros June June Notes 2
Page 16 and 17: BANCO BILBAO VIZCAYA ARGENTARIA, S.
Page 18 and 19: The BBVA Group ICFR Model is summar
Page 20 and 21: 2.2. ACCOUNTING POLICIES AND VALUAT
Page 22 and 23: - Other financial instruments The f
Page 24 and 25: In the case of unsecured transactio
Page 26 and 27: 2.2.2. TRANSFERS AND DERECOGNITION
Page 28 and 29: The fair value of non-current asset
Page 30 and 31: 2.2.7. BUSINESS COMBINATIONS The re
Page 32 and 33: insurees, as the case may be, based
Page 34 and 35: • The discount rate used is deter
Page 36 and 37: 2.2.16. FOREIGN CURRENCY TRANSACTIO
Page 38 and 39: 2.2.22. CONSOLIDATED STATEMENTS OF
Page 40 and 41: IFRIC 17 - Distributions of non-cas
Page 42 and 43: The Group’s activity is mainly lo
Page 46 and 47: - In the denominator, the average n
Page 48 and 49: The breakdown of the consolidated n
Page 50 and 51: Management & Asset Allocation, Risk
Page 52 and 53: Maximum exposure to credit risk The
Page 54 and 55: debtors includes mortgages, cash gu
Page 56 and 57: Policies and procedures for prevent
Page 58 and 59: December 2009 Less than 6 Months Pa
Page 60 and 61: 7.2 MARKET RISK a) Market Risk Mark
Page 62 and 63: Below are the average interest rate
Page 64 and 65: 7.4. RISK CONCENTRATIONS Below is p
Page 66 and 67: Determining the fair value of finan
Page 68 and 69: Financial Instruments LEVEL 2 Valua
Page 70 and 71: The changes in the six months ended
Page 72 and 73: 10.2. DEBT SECURITIES The breakdown
Page 74 and 75: 11. OTHER FINANCIAL ASSETS DESIGNAT
Page 76 and 77: 12.3. EQUITY INSTRUMENTS The breakd
Page 78 and 79: 13.2. LOANS AND ADVANCES TO CREDIT
Page 80 and 81: Millions of Euros December 2009 Amo
Page 82 and 83: December 2009 Currency Risk Interes
Page 84 and 85: 17.1. ASSOCIATES The following tabl
Page 86 and 87: 17.3. INFORMATION ABOUT ASSOCIATES
Page 88 and 89: The main activity of the Group is c
Page 90 and 91: 21.3 RECONCILIATION The reconciliat
Page 92 and 93: 23. FINANCIAL LIABILITIES AT AMORTI
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Millions of Euros December 2009 Dem
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The item “Subordinated Liabilitie
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The breakdown of the commitments pe
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June 30, 2010 and December 31, 2009
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Post-employments Benefits in Spain
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Post-Employment Actuarial Hypothesi
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during which to increase the common
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Reserves Assigned to the Consolidat
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Millions of Euros Valuation Adjustm
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on equity (ROE) by each business; a
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39. INTEREST, INCOME AND SIMILAR EX
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39.3. AVERAGE RETURN ON INVESTMENTS
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41. SHARE OF PROFIT OR LOSS OF ENTI
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45. OTHER OPERATING INCOME AND EXPE
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linked to the movement of the Total
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48. PROVISIONS (NET) The net allowa
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The table below breaks down the mai
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The amount disposed of the loans gr
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BBVA executive team. It is to end o
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Commission (CNMV) announced the lif
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APPENDIX I. FINANCIAL STATEMENTS OF
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Millions of Euros LIABILITIES AND E
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Millions of Euros (Continued) June
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APPENDIX II. Additional information
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APPENDIX III. Additional informatio
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APPENDIX V. Changes and notificatio
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APPENDIX VI. Fully consolidated sub
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APPENDIX VIII. Breakdown of the mos
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Outsanding as of June 30, 2010 of S
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APPENDIX IX. Consolidated balance s
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Diluted earnings per share Early re
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Other financial assets/liabilities
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BANCO BILBAO VIZCAYA ARGENTARIA, S.
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The explanations of the changes in
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4. SUMMARIZED INTERIM CONSOLIDATED
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Spain and Portugal Millions of Euro
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Mexico Millions of Euros Mexico Jun
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South America Millions of Euros Sou
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The United States Millions of Euros
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Wholesale Banking and Asset Managem
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The changes in the principal headin
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Aggregating Tier I and Tier II, as
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BANCO BILBAO VIZCAYA ARGENTARIA, S.A. AND ... - BBVA

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