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

17.1. ASSOCIATES
The following table shows the carrying amount of the most significant of the Group’s investments in
associates in the accompanying consolidated balance sheets:
Millions of Euros
Investments in Associates
June December
2010 2009
Grupo CITIC 4,087 2,296
Occidental Hoteles Management, S.L. 102 84
Tubos Reunidos, S.A. 52 52
BBVA Elcano Empresarial II, S.C.R.R.S., S.A. 38 49
BBVA Elcano Empresarial, S.C.R.R.S., S.A. 38 49
ServiRed, S.A. 15 20
Resto asociadas 70 64
Total 4,402 2,614
The investment in the CITIC Group includes the investment in Citic International Financial Holdings Limited
(“CIFH”) and China National Citic Bank (“CNCB”).
Appendix IV shows associate entities as of June 30, 2010.
The breakdown of the balance and gross changes in the six-month periods ended June 30, 2010 and the
January 1, 2010 under this heading of the consolidated balance sheets are as follows:
Millions of Euros
Associates Entities. Changes in the period.
Breakdown of Goodwill
June
2010
December
2009
Balance at beginning 2,614 894
Acquisitions and capital increases (*) 1,198 53
Disposals (9) (2)
Transfers and others (**) 599 1,669
Balance at end 4,402 2,614
Of which:
Goodwill 1,670 844
CITIC Group 1,666 841
Rest 4 3
(*) The change of 2010 corresponds basically to the acquisition of 4.93% of CNCB formalized in April 2010
(**) Correspond, in 2009, mainly to the reclassification from the heading "Available-for-sale financial assets " of CNCB investment
and in 2010 due to the exchange rate development.
Agreement with the CITIC Group
The BBVA Group holds several agreements with the banking branch of the largest industrial group in China,
CITIC Group (CITIC) to develop a strategic alliance in the Chinese market. BBVA’s investment in CNCB is
considered strategic for the Group, as it is the platform for developing its business in continental China and is
also key for the development of CITIC’s international business. BBVA has the status of “sole strategic
investor” in CNCB. In 2009, BBVA’s share in CNCB was reclassified from "Available for sale financial assets"
of the accompanying consolidated balance sheets (Note 12) to the heading "Investments in entities
accounted for using the equity method - Associates" since the Group gained significant influence in the
holding.
Furthermore, on April 1, 2010, after obtaining the corresponding authorizations, the purchase of an additional
4.93% of CNCB’s capital was finalized for €1,197 million.
As of June 30, 2010, BBVA had a 29.68% holding in CIFH and 15% in CNCB.
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