BBVA in 2012

Behavioral scoring is used to review contracts that have already been formalized by incorporatinginformation on customer behavior and on the contract itself. Unlike reactive scoring, it is ananalysis, i.e. once the contract has been granted. It is used to review credit card limits, monitor risk,etc., and takes into account variables directly linked to the transaction and the customer that areavailable internally: the behavior of a particular product in the past (delays in payments, default,etc.) and the customer’s general behavior with the Entity (average balance on accounts, directdebit bills, etc.).Proactive scoring tools take into account the same variables as behavioral scorings, but they havea different purpose, as they provide an overall ranking of the customer, rather than of a specifictransaction. This customer perspective is supplemented by adjustments that depend on the typeof product. The availability of proactive scorings has enabled the Group to monitor customers’credit risk more precisely, to improve risk screening processes and to manage the portfolio moreactively by offering credit facilities adapted to each customer’s risk profile.Chart 7 presents the probability of default curves of the proactive scoring tool for BBVA Spainmortgages in the domestic “positive experience” segment with low loyalty, and excludingrefinancing, according to the score. The “positive experience” segment covers customers withgood payment behavior over the previous 24 months and with loyalty to the Bank. Chart 8 depictsthe behavioral scoring for BBVA Bancomer credit cards.7Proactive scoring tool calibration for mortgages of individuals in BBVA Spain(Default rates for the domestic "positive experience" segment with low loyalty, excluding refinancing, based on scoring)2,5%2,0%Default rates1,5%1,0%0,5%0,0%1 2 3 45 6 7Score groups8Credit card behavioral scoring tool calibration, BBVA Bancomer(Default rates by score)Default rates45%40%35%30%25%20%15%10%5%0%1 2 3 4 5 6 78 9 10 11 12 13 14 15 16 17 18 19 20 21Score groupsCredit risk95