BBVA in 2012

Overall risk profileAttributable economic risk capital (ERC) consumption reached €36,062m as of December 31,2012, an increase of 29.4% over 2011 figures, using comparable data 1 . The main risk continues tobe credit risk on portfolios originated in the Group branch networks from its own customer base.This accounted for 58.3% of the total with a year-on-year increase of 15.8%, due mainly to theincorporation of Unnim, the increased credit risk on the trading floors of the Assets and LiabilitiesCommittee (ALCO) and the recalibration of parameters carried out in Spain. The ERC for equityreaches a relative weight of 19.4%, up 126.5%, as the calculation of the goodwill generated by stakesin the credit institutions making up the Group has been included in its estimate. Structural interestrateand exchange-rate ERC is up 58.7%, due to the impact of the inclusion of the goodwill on theforeign-exchange risk. The relative weight of ERC from market operations increases after posting a78.4% increase due to the incorporation of the elements of Basel 2.5 (stress VaR and IRC).3BBVA Group’s economic risk capital. Distribution by type of risk(Data in attributable terms 31-12-2012)Others 6%Operational 6%Market 3%Structural 8%Spain 49%Eurasia 9%Mexico 17%Equity 19%South America 12%The United States 10%Credit 58% Corporate Activities 3%In the breakdown by area, Spain registers an ERC increase of 14.7% due to the incorporation ofUnnim, the recalibration of the models included in mid-year, the increased credit risk on the tradingfloors of the ALCO and the increased market risk resulting from the application of Basel 2.5. Eurasiagrows 8.5% over the previous year due to the trend in the credit risk parameters in Turkey andthe increase in the value of the stake in China Citic Bank (CNCB), which increases equity risk. InMexico, ERC is up 13.8%, due mainly, as regards credit risk, to the recalibration of the parametersand lending growth. As for market risk, ERC in Mexico is up due to the application of the Basel 2.5criteria. United States reduces its relative weight in global ERC, which is down 10.2% year-on-yeardue to the improved credit risk profile in the area. ERC in South America grows 12.5%, basically asa result of the general and strong lending growth in all the countries and the appreciation of thecurrencies in the region.4BBVA Group’s economic risk capital. Distribution by business area(Data in attributable terms 31-12-2012)Corporate Activities 22%Spain 34%The United States 8%South America 9%Mexico 14%Eurasia 13%In conclusion, the Group’s recurrent risk-adjusted return (RAR), i.e., that generated from customerbusiness and excluding one-offs, stood at 18.9%, remaining at high levels in all business areas.(1) The growth rates presented are calculated against the close as of the same time in December 2011 (€27,874m), which includesthe annual effects of the updates carried out at the end of the year (Mexico, South America and The United States) in the creditrisk parameters and the revision of other risk models, as compared to the official figure for 2012 (€36,062m).92 Risk management