24
RISK AND ECONOMIC CAPITAL MANAGEMENT 3Q09
Risk management
mainly residential mortgages and credit lines for
corporations and institutions.
Non-performing assets of €12,500m. These have
also grown more slowly this quarter: 6.2%, as
compared with 11.7% last quarter and 23.0% in the
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
Net additions to NPA
(Million euros)
2,262
3,001
2,559
3Q 4Q 1Q 2Q
3Q
2008
2009
Recoveries over entries to NPA
(Percentage)
32.4
27.9 29.6
3Q 4Q 1Q 2Q
3Q
2008
2009
2,067
44.4
1,962
45.1
3Q09
first quarter of 2009. This is due to an improvement
in the gross entries into NPAs, which went down
3.9% over the quarter, and also to the active
recoveries policy. The ratio of recoveries to entries in
NPAs was 45.1%, as compared with 44.4% and
32.4% in the two preceding quarters.
2Q09
An NPA ratio of 3.4%, one of the lowest amongst all
its European peers. In Spain and Portugal, this ratio
was 4.0%, below the average for the system
according to the latest data published to August
2009. Bancomer, in Mexico, reported an NPA ratio
of 4.0%, its quarterly growth slowing down
significantly (up 11 basis points as compared with a
rise of 35 in 2Q09 against 1Q09). In the United
States the NPA ratio was 3.9%, compared with the
NPA ratio
(Percentage)
1.7
September
2008
1Q09
11,774 10,543 8,568 6,544 4,720
3,573 3,717 3,787 4,265 3,137
(1,611) (1,650) (1,228) (1,264) (875)
1,962 2,067 2,559 3,001 2,262
(1,088) (819) (686) (787) (529)
(148) (17) 102 (190) 91
12,500 11,774 10,543 8,568 6,544
12,189 11,509 10,262 8,437 6,483
311 265 281 131 61
2.3
2.8
December March
June September
2008 2009 2009
2009
4Q08
3.2
3Q08
3.4
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