Variations in non-performing assets
(Million euros)
BEGINNING BALANCE
Entries
Outflows
Net variation
Write-offs
Exchange rate differences and other
PERIOD-END BALANCE
MEMORANDUM ITEM:
•Non-performing loans
•Non-performing contingent liabilities
€490m in the first quarter of 2009 (from €629m in
the second semester of 2008).
In Mexico, latest available data also show Bancomer
outperforming its peers. At the end of March 2009,
the area’s NPA ratio was 3.6%, as against 3.2% in
December 2008. United States saw its ratio rise to
3.9% against the 3.4% it reported at year-end 2008.
Finally, South America‘s ratio did not show any
significant change, standing at 2.3% at the end of the
first quarter (2.1% three months earlier).
Coverage reserves for customer risks rose to
€8,000m at 31st March 2009, from €7,841m at the
end of December 2008 and €7,757m at 31-Mar-08.
Of these, generic and country-risk provisions
(€4,334m) accounted for 54.2% of the total and
continue to be significantly higher than expected loss.
NPA coverage ratio
(Million euros)
200
167
127
March
June September December March
2008 2008 2008 2008
2009
92
76
1Q09
1Q09 RISK AND ECONOMIC CAPITAL MANAGEMENT
Risk management
The Group’s coverage ratio stood at 76% on 31st
March 2009. By business areas, Spain & Portugal’s
ratio was 60%; Wholesale Banking & Asset
Management 170%; Mexico 150%; USA 53%, and
South America 139%.
Market risk
BBVA’s market risk remains moderate considering the
total of its risks and is originated mainly through the
business activity with customers. During the first
quarter of 2009, BBVA Group’s average market-risk
exposure has been €27.4m (referenced to VaR
without exponential flattening). This is a slight
increase on the average from the previous quarter.
However, in the last weeks of March, it has shown a
tendency to return down to the risk levels reported at
Trends in market risk (1)
(VaR, million euros)
40
30
20
10
0
4Q08
3Q08
8,568 6,544 4,720 3,878 3,408
3,787 4,265 3,137 2,215 1,591
(1,228) (1,264) (875) (813) (716)
2,559 3,001 2,262 1,402 875
(686) (787) (529) (535) (347)
102 (190) 91 (25) (58)
10,543 8,568 6,544 4,720 3,878
10,262 8,437 6,483 4,665 3,837
281 131 61 55 41
31-3-08 30-6-08 30-9-08 31-12-08
31-3-09
(1) On 29-2-08 the Bank of Spain approved the Algorithmic internal model for the European and Mexican trading
portfolios. The methodology applied for the VaR metric in these businesses is the historical simulation.
2Q08
1Q08
23
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