BBVA in 2012

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– Innovate with teams dedicated exclusively to constructing the retail banking of thefuture, and provide global business solutions closely linked to technology.In short, the retail banking business responds to BBVA’s vision of a customer-centric organizationthat promotes multi-channel products and services and innovates to offer value solutions anddifferentiated experiences to its customers. The global management and cross-cutting nature ofthe retail businesses can be seen in initiatives such as:• A “Cross-border Synergies project” in CBB, which has established a network of coordinatorsin 20 countries and provides immediate cross-referencing for customers with internationalexpansion needs and a flexible account opening process across the Group’s various banks.More than 600 companies have benefited from this service so far.• A “Personal Banking project”, based on a differentiated value proposition adapted to the massaffluentcustomer segment, which provides preferential service to the segment’s customers.It has already been launched in Spain, Mexico and Colombia in 2012. It will be launched inUruguay and Paraguay in the first quarter of 2013 and extended to other geographical areasthroughout this year and the start of 2014.224. A model of profit subject to principles founded on the absolute principles of integrity,prudence and transparency, whose primary objective is to create value for its shareholders.BBVA firmly believes that putting principles first in the Group’s governance management is acompetitive advantage in itself. One of the values that has become of greatest importance atthe present time is being a reliable bank, in other words, a bank that customers, shareholders,employees and citizens can trust. Not only because it meets the targets it sets itself, but alsobecause of the way it does so: by respecting regulations, principles and people.In a crisis situation like today’s, in which the reputation of the sector has been more negativelyimpacted than ever, acting and communicating are essential. BBVA has implementednumerous plans and initiatives to this end, including the “Community Impact” project, whichaims to improve understanding of BBVA’s impact on the community. To do so it has searchedfor simple and comprehensible indicators of initiatives in traditional financial activity, such asnet jobs generated, the number of people who live in housing financed by the Bank, microentrepreneursfunded through BBVA Microfinance Foundation microcredits, etc. Theseindicators have been presented by the Group’s President and COO at the 2012 AGM and duringthe presentation of first quarter 2012 results. Moreover, the project only works with indicatorsverified by BBVA’s external financial auditors. The goal is to be increasingly transparent onrelevant subjects and to make progress in recovering the trust lost by some of the stakeholdersin the financial sector.46 Executive summary
23 24In conclusion, this banking model is based on the four pillars explained above and translatesinto two competitive advantages: recurrent earnings and structural strength.1. Recurrence, because BBVA continues to demonstrate a strong capacity to generaterecurrent earnings year after year; earnings that have also allowed it to absorb high levelsof loan-loss provisions in 2012 in Spain.BBVA’s bankingmodel translatesinto twocompetitiveadvantages:recurrent earningsand structuralstrength2. Structural strength, because the Group maintains a balanced and well-capitalized balancesheet with risks that are well-known and under control, and with an adequate fundingstructure relying on its broad customer base. BBVA is in a comfortable liquidity position aswell as its capacity to generate capital organically is among the soundest in its peer group.As a result, it has continued to comply with the capital recommendations issued by theEuropean Banking Authority (EBA). And it has done so as one of the few banks in the worldthat has continued to pay dividends during these crisis years.Environment and BBVA positioning47
Page 2 and 3: BBVA Group Highlights
Page 4 and 5: “ In 2012 the Group generateda ne
Page 6: 2
Page 9 and 10: Letter from the Chairman 5
Page 11 and 12: All this is the result of a strateg
Page 13 and 14: 1 As the main expression of t
Page 15 and 16: Our communication in 2012 has conti
Page 17 and 18: Brand management in 2012 was highly
Page 19 and 20: BBVA Board CommitteesIn order to be
Page 21 and 22: • Across-the-board operational co
Page 23 and 24: Primary stakeholdersIntroduction: t
Page 25 and 26: BBVA earnings figures presented in
Page 28 and 29: High liquidity ofBBVA shareBBVA is
Page 30 and 31: Management modelA model of peoplema
Page 32 and 33: To sum up, the combination of the a
Page 35 and 36: South AmericaIn 2012, a common syst
Page 37 and 38: Number of claims filed at the Banki
Page 39 and 40: Environmentand BBVA positioningThe
Page 41 and 42: the measures taken to correct imbal
Page 44 and 45: The easing of financial tensions in
Page 46 and 47: Positioning of BBVA GroupBBVA conti
Page 48 and 49: 20 2. A business model based on th
Page 52 and 53: 25 In short, this banking model
Page 54 and 55: 2. …reflected ingross income…28
Page 56 and 57: Risk under controlBBVA NPAs versusp
Page 58 and 59: Business areasSpainStrong franchise
Page 60 and 61: EurasiaAn area ofgrowth andpositive
Page 62 and 63: South AmericaBusiness activity(Year
Page 64 and 65: In short, abusinesstransformationre
Page 67 and 68: Group financialinformation65 Earnin
Page 69 and 70: EarningsIn 2012, BBVA Group reporte
Page 71 and 72: Consolidated income statement: quar
Page 73 and 74: • Resilience in Spain, in a conte
Page 75 and 76: allocations to the deposit guarante
Page 77 and 78: 8 • Maintain its leadership p
Page 79 and 80: 13 Provisions and othersCumulativ
Page 81 and 82: Lastly, earnings per share (EPS) fr
Page 83 and 84: In short, a year in which there has
Page 85 and 86: 20 Lastly, non-performing loans ha
Page 87 and 88: Off-balance-sheet customer funds st
Page 89 and 90: Capital baseThe main highlight in 2
Page 91 and 92: 26 RatingsIn 2012, BBVA’s ratin
Page 93 and 94: Risk management90 Global Risk Manag
Page 95 and 96: Integration of risks andoverall ris
Page 97 and 98: Credit riskCredit risk quantificati
Page 99 and 100: Behavioral scoring is used to revie
Page 101 and 102:
The economic cycle in PDThe current
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13LGD for Autos Finanzia, BBVA Spai
Page 105 and 106:
The portfolio model and concentrati
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The exposure breakdown by rating of
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22 Real-estate exposure and coverag
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ConcentrationExcluding sovereign ri
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27 BBVA Group. Net NPA entries(Mill
Page 115 and 116:
Structural risksStructural interest
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Interest rate risk measurement is s
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Structural risk in the equity portf
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BBVA continues working to improve a
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Credit risk in market activitiesThe
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Operational riskOperational risk is
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Operational risk management in the
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Reputational riskThis is another ty
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The economic capital of the Pension
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Categories of financing and advice
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Business areas135 Spain149 Eurasia1
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Furthermore, as usual in the case o
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SpainIncome statement(Million euros
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• On July 20, the Government requ
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3 Spain. Efficiency ratio versus pe
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These lines axes of action will con
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10 Spain. Operating income(Million
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- Creation of a SICAV module on the
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As of 31-Dec-2012, BBVA Seguros has
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EurasiaIncome statement(Million eur
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Management prioritiesIn 2012, the E
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17 Eurasia. Efficiency(Million euro
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• The above, together with the hi
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Highlights• The Bank has been rec
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MexicoIncome statement(Million euro
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area has been positive year-on-year
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30 Mexico. Consumer finance plus cr
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The increase of operating expenses
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As a result of the above, the net a
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government employees and tax collec
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South AmericaIncome statement(Milli
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advancing together with economic ac
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43 South America. Net attributable
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Grupo BBVA. Business share ranking
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Colombia Peru Venezuela2012 ∆%
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The macroeconomic and competitive e
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VenezuelaIn 2012, the growth of the
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By companies, Seguros Argentina, fo
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Significant ratios(Percentage)The U
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opportunities in key markets throug
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51 The United States. NPA and cover
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The area was able to successfully m
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HighlightsThe most relevant awards
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Definition of the aggregateCorporat
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held by retail investors. The conve
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Additional information:Corporate &
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greater efficiency, cost control an
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The trend in operating expenses sho
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Main Corporate Finance transactions
Page 213 and 214:
Corporate LendingCorporate Lending
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In Latin America, the funding of Li
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In Mexico, Global Markets maintains
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Supplementaryinformation216 Consoli
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IFRS (Bank of Spain’s Circular 4/
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JapanTokyoFukoku Seimei Bldg. 12 th
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BBVA in 2012

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