BBVA in 2012

Contents2 Executive summaryLetter from the Chairman ................................................................................................................................................................................................................................................................................................................ 4BBVA values and principles ......................................................................................................................................................................................................................................................................................................... 8BBVA brand ....................................................................................................................................................................................................................................................................................................................................................................... 10Corporate Governance System ......................................................................................................................................................................................................................................................................................... 14Corporate responsibility ....................................................................................................................................................................................................................................................................................................................... 16Primary stakeholders ................................................................................................................................................................................................................................................................................................................................. 19Share and shareholder structure .................................................................................................................................................................................................................................................................. 20The team ................................................................................................................................................................................................................................................................................................................................................................ 25The client ............................................................................................................................................................................................................................................................................................................................................................... 29La sociedad ..................................................................................................................................................................................................................................................................................................................................................... 34Environment and BBVA positioning ........................................................................................................................................................................................................................................................................ 35Performance in 2012 .................................................................................................................................................................................................................................................................................................................................... 4962 Group financial informationEarnings .................................................................................................................................................................................................................................................................................................................................................................................... 65Balance sheet and business activity ....................................................................................................................................................................................................................................................................... 78Capital base ...................................................................................................................................................................................................................................................................................................................................................................... 8588 Risk managementGlobal Risk Management: BBVA Group’s risk management function ....................................................................................................................................... 90Integration of risks and overall risk profile ................................................................................................................................................................................................................................................. 91Credit risk ............................................................................................................................................................................................................................................................................................................................................................................... 93Structural risks ............................................................................................................................................................................................................................................................................................................................................................ 111Risk in market units ........................................................................................................................................................................................................................................................................................................................................ 116Operational risk ........................................................................................................................................................................................................................................................................................................................................................ 121Risk management in non-banking activities ........................................................................................................................................................................................................................................ 126Management of ESG risks .............................................................................................................................................................................................................................................................................................................. 128130 Business areasSpain .................................................................................................................................................................................................................................................................................................................................................................................................. 135Eurasia ........................................................................................................................................................................................................................................................................................................................................................................................... 149Mexico ........................................................................................................................................................................................................................................................................................................................................................................................... 159South America ........................................................................................................................................................................................................................................................................................................................................................... 171The United States ................................................................................................................................................................................................................................................................................................................................................ 186Corporate Activities ........................................................................................................................................................................................................................................................................................................................................ 196Other information: Corporate & Investment Banking .................................................................................................................................................................................................... 201214 Supplementary information