BBVA in 2012
BBVA in 2012
BBVA in 2012
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Capital baseThe ma<strong>in</strong> highlight <strong>in</strong> <strong>2012</strong> with respect to the capital base was compliance with the EBA capitalrecommendations without hav<strong>in</strong>g to sell any strategic assets, with no public aid and without anychange <strong>in</strong> the current dividend policy.In December <strong>2012</strong>, core capital ratio reached 10.8% under Basel II. It means 45 basis po<strong>in</strong>ts up on thefigures at the close of 2011.Other notable aspects with respect to the capital base are as follows:• <strong>BBVA</strong> comfortably passed the theoretical stress test carried out by Oliver Wyman, once aga<strong>in</strong>underl<strong>in</strong><strong>in</strong>g its capacity to generate capital, even <strong>in</strong> very adverse economic scenarios.• The generation of operat<strong>in</strong>g <strong>in</strong>come has enabled the Bank to absorb loan-loss provisions aimed ataddress<strong>in</strong>g the impairment of assets related to the Spanish real-estate sector.• Risk-weighted assets (RWA) have decl<strong>in</strong>ed as a result of the sale of the bus<strong>in</strong>ess <strong>in</strong> Puerto Rico,lower activity <strong>in</strong> Spa<strong>in</strong> and the reduction <strong>in</strong> portfolios with CIB customers. These effects have notbeen offset by the <strong>in</strong>corporation of Unnim or the growth of bus<strong>in</strong>ess <strong>in</strong> Lat<strong>in</strong> America.• The impact of the <strong>in</strong>clusion of Unnim has been practically neutral <strong>in</strong> terms of core capital. Thenegative effect of 10 basis po<strong>in</strong>ts has been offset by the exchange of hybrid capital <strong>in</strong>struments <strong>in</strong>the hands of Unnim customers offered <strong>in</strong> October.• Tier II capital has decreased, due to the repurchase of subord<strong>in</strong>ated debt carried out by the Group.Capital base (BIS II Regulation)(Million euros)31-12-12 31-12-11 31-12-10Core capital 35,451 34,161 30,097Capital (Tier I) 35,451 34,161 33,023Other eligible capital (Tier II) 7,386 8,609 9,901Capital base 42,836 42,770 42,924Risk-weighted assets 329,033 330,771 313,327BIS ratio (%) 13.0 12.9 13.7Core capital (%) 10.8 10.3 9.6Tier I (%) 10.8 10.3 10.5Tier II (%) 2.2 2.6 3.2At the close of <strong>2012</strong>, the Group’s capital base was at practically the same level as at the close of 2011, at€42,836m. The ma<strong>in</strong> factor to take <strong>in</strong>to account is the aforementioned repurchase of subord<strong>in</strong>ated debt<strong>in</strong> the fourth quarter of <strong>2012</strong>, which affects Tier II.RWA totaled €329,033m, a year-on-year decl<strong>in</strong>e of 0.5%. The deleverag<strong>in</strong>g process <strong>in</strong> Spa<strong>in</strong>, reducedactivity with wholesale customers and the sale of the Puerto Rico subsidiary have countered thepositive effects on this head<strong>in</strong>g, such as the strength of the bank<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> emerg<strong>in</strong>g countries andthe <strong>in</strong>corporation of Unnim.Capital base85