50
BUSINESS AREAS 1Q09
Corporate Activities
Holdings in Industrial and Financial
Companies
This unit manages its portfolio of shares in companies
operating in the telecommunications, media, electricity,
oil, gas and finance sectors. Like Financial Planning, this
unit forms part of the Group’s Finance Department.
BBVA operates this portfolio with strict requirements
regarding its risk-control procedures, economic-capital
consumption and return on investment, diversifying
investments over different sectors. It also applies
dynamic management techniques to holdings through
monetisation and coverage strategies. During the first
three months of 2009, it has made investments for
€76m and divestments for €101m.
At 31-Mar-09, the industrial and financial holdings
portfolio was marked to market at €3,813m and
although the main stock-exchange indices in Europe
and the United States closed the quarter with
significant drops.
Real-Estate Management
Given the current economic scenario and the outlook
for the next few months, BBVA set up a Real-Estate
Management unit to apply specialist management to
real-estate assets from foreclosures, assets assigned in
lieu of payment, purchases of distressed assets and the
BBVA Propiedad real-estate fund. The earnings
generated by this new unit are not significant, as it is
conceived as a long-term project.
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