BBVA in 2012

6Spain. Time stock cost compared with the system(Percentage)2.90%2.80%BBVASystem2.70%2.60%2.50%2.40%2.30%Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12• Third, the strict cost control policy, which is critical for recurrence of operating income.7 Spain. Efficiency(Million euros)Efficiency ratio(Percentage)800070006000500040003000707263286783Grossincome7,0726,3286,78440.544.041.550403020001000Operatingcosts200-100010-2000-3000-2861-2787-28182,861 2,787 2,8182010 2011 2012 2010 2011 20120• Fourth, although the impairment in asset quality has continued in the system, BBVA hasmanaged to set itself apart from the competition, as shown in chart 4, thanks to a risk policybased on permanent efforts in anticipation and control.Looking ahead to the future, and continuing with its differentiation strategy from the competition,BBVA’s actions in Spain will be carried out on three fronts:• First, the commercial strategy will be focused on increasing the customer base, using fundgathering and transactional banking as key levers.• Second, other activities which can generate extra revenue in an environment of falling lendingvolumes will be boosted, especially sale of insurance products.• Third, BBVA’s leading position in the system will allow it to continue investing: in quality, todevelop a service centered on improving the customer’s experience, and in technology tocontinue to transform its distribution model and integrate physical and virtual banking, on theone hand, and to increase the automation and digitizing of processes in order to enhance theirefficiency and reliability, on the other hand.140 Business areas