22
1Q09
The deterioration of economic activity continued
during the first quarter of 2009. This had a marked
impact on the asset-quality indicators for the
loan-books, maintaining the tendency initiated in
2008. Nonetheless, prudent risk-management policies
and the fact that practically all the BBVA Group’s
loan-books were generated by its own networks have
enabled the Group to conserve sound asset-quality
parameters.
Risk and economic capital management
On 31st March 2009, total risks with customers
(including contingent liabilities) stood at €374,962m.
This was 1.0% down on the €378,624m in
December 2008 and in line with the dip in lending
volumes during this period. Meanwhile,
non-performing assets rose to €10,543m from
€8,568m at year-end 2008. This 23.1% rise reflects
slower growth in the upward trend of NPA balances
during the quarter, as net entries went down 14.7%
and recoveries increased. The amount recovered
accounted for 32.4% of entries, whereas this ratio
had been 29.6% in the final quarter of 2008.
The Group’s non-performing asset ratio thus reached
2.8% at 31st March 2009, as against the 2.3%
Credit risk management
(Million euros)
TOTAL RISK EXPOSURE (1)
Non-performing assets
Total risks
Provisions
•Specific
•Generic and country-risk
NPL ratio (%)
NPL coverage ratio (%)
MEMORANDUM ITEM:
Foreclosed assets
Foreclosed asset provisions
Coverage (%)
(1) Including contingent liabilities.
Risk management
NPA ratio
(Million euros)
1.1
March
2008
1.3
reported on 31st December 2008. But this figure is
still one of the lowest NPA ratios of any of the
European banks in its peer group.
In Spain, the NPA ratios for the financial industry as
a whole continued to worsen. In lending to the
private sector, BBVA increased the distance to the
average of the rest of the system. Its 3.3% ratio was
below the 4.2% reported for all financial institutions
and the 3.4% for all banks, according to the latest
data published to February 2009. The purchase of
1.7
June September December March
2008 2008 2008
2009
assets from distressed customers has come down to
31-03-09
Δ%
10,543 171.8 3,878 8,568
374,962 4.6 358,433 378,624
8,000 3.1 7,757 7,841
3,667 93.3 1,897 3,282
4,334 (26.1) 5,860 4,558
2.8 1.1 2.3
76 200 92
461 58.1 292 391
108 55.0 70 98
23.4 23.9 25.1
2.3
31-03-08 31-12-08
2.8
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