BBVA in 2012

Letter from the Chairman“ BBVA’s principles of integrity, transparency and prudenceset us apart and are a source of value for the societieswhere we operate”Dear Shareholder:2012 was marked once again by diverging forces behind the global economy’s growth. The emergingmarkets where BBVA operates posted strong growth, 6.5% overall, while the U.S. economy expanded2.2% and GDP in Europe declined by 0.5%.2012 has been an extremely difficult year due to the crisis in Europe and, particularly, in Spain.However, major progress has been made.In Europe, those who one year ago predicted the end of the euro have been proven wrong. Theyunderestimated the political will and the huge economic capacity of the European Union. Now weneed to continue moving toward a greater economic and monetary union, and this can only beachieved through further integration.In Spain, the intense adjustment and reform process undertaken is beginning to bear fruit. A turn forthe better can be seen in the perception of our economy, which represents a window of opportunity.If Spain takes advantage of this opportunity, there could soon be an upward revision of oureconomy’s growth prospects.But there is still a long way to go. Unemployment is Spain’s main drama. There are businesses andsectors that are already creating jobs, although not in a sufficient number to absorb the employmentthat is still being destroyed in the construction, financial and public administration sectors.We must all join forces to reverse this situation. This is precisely what we are doing at BBVA, creatingnet employment in Spain during the 2010-2012 period and promoting programs as important as “Yosoy Empleo” (I’m Employment), a comprehensive plan to promote the creation of 10,000 new jobsin small and medium-sized enterprises and with the self-employed, which includes training initiativesand an employment intermediation service.Major progress has also been made in the Spanish financial sector in 2012. The banks that createdthe problem in the first place have already been taken into government administration. Now, oncethey have been recapitalized, they need to be privatized as soon as possible.Bad practices by some institutions have caused considerable damage to the sector’s image. Butthis crisis has also shown that not all banks are the same, and that BBVA’s principles of integrity,transparency and prudence set us apart and are a source of value for the societies where we operate.Throughout the crisis, BBVA has cost the State zero euros, and we have continued to grow, payingtaxes and dividends, creating jobs and investing in social projects.4 Executive summary