12
GROUP INFORMATION 3Q09
Earnings
Impairment losses on financial assets (1)
(Million euros)
557 607
Provisions and others
In the third quarter impairment losses on financial
assets include generic loan-loss provisions of €830m
that BBVA decided to set aside to strengthen its balance
sheet. This amount was generated by capital gains on
the sale and lease-back of real estate mentioned earlier.
Excluding this amount, impairment losses in the
quarter came to €911m and the cost of risk was
1.04% at 30-Sep-09. Both figures are in line with
previous quarters. For the year to September,
impairment losses on financial assets come to €3,686m
(€2,856m without the extraordinary provision
described above). Published results for the first half of
2009 show BBVA’s provisions are roughly 30% of
operating income whereas those of its European peers
are substantially higher, averaging 56%.
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
917
+37.2% (2)
2,082 2,856
859
(1) In the third quarter of 2009, the capital gains coming from the sale and lease-back of
properties which have been allotted to generic provisions for NPLs are not included.
(2) At constant exchange rate: +42.7%.
Net provisions in the first nine months came to
€234m. This is €360m less than the €594m provided
in the same period last year, which included €470m for
one-off early retirements.
Finally, other gains (losses) come to €597m for the first
nine months and include €830m of capital gains on the
sale and lease-back of property and provisions for
updating the value of real estate assets. In the same
period last year this item come to €805m, which
included €727m from the sale of BBVA’s interest in
Bradesco.
816
1,029
911
Net attributable profit
Net income in the first nine months came to €5,950m,
compared to €6,298m in the same period last year.
After deducting €1,418m for income tax, net income
comes to €4,532m. And after €353m for minority
interests, the Group’s net attributable profit for the
first nine months of 2009 fell 7.2% from the €4,501m
obtained in the same period of 2008 to €4,179m
(down 3.0% at constant exchange rates).
One-off operations in the first nine months of last year
(capital gains of Bradesco and provision for
early-retirements) added €180m after tax. Excluding
such operations, net attributable profit in the first nine
months of this year is down 3.3% (up 1.3% at
constant exchange rates).
Net attributable profit (1)
(Million euros)
1,442 1,486
1Q 2Q 3Q 4Q
1Q
2Q
3Q
2008
2009
(1) Excluding results of one-off operations.
(2) At constant exchange rate: +1.3%.
1,392
All business areas contributed to the Group’s net
attributable profit in the first nine months: €1,877m in
Spain & Portugal, €770m in Wholesale Banking &
Asset Management, €1,101m in Mexico, €103m in the
United States and €689m in South America.
—3.3% (2)
4,321 4,179
1,094
Earnings per share (EPS) in the year to 30-Sep-09 were
€1.12, which is similar to 2006 (just prior to the crisis).
This figure sets the BBVA Group apart from most other
banks, whose EPS have suffered drastically. Based on data
from the first half of 2009 BBVA is one of the top banks
in terms of its EPS, which is far above its peer average.
1,238
1,561
1,380
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