and solidly generate a high operating profit with
growth in the last twelve months beyond the
two-digit range.
PROVISIONS AND OTHERS
The excellent operating profit achieved allows to
maintain criteria of prudence and carry out
additional provisions to reduce the use of generic
provisions and improve coverage.
Impairment losses on financial assets totaled
€1,078m between January and March 2010, 34% of
the operating income achieved by the Group in the
same period, and maintains levels below those
recorded for the fourth quarter of 2009, €1,254m
excluding one-offs of €533m in the United States.
Thus, the Group’s risk premium is stabilized at
1.24% and coverage was improved from 57% as of
31-Dec-2010 to 59%.
Provisions reached €170m, as compared to the
€104m recorded in the first quarter of 2009, and
include €93m for early retirements and other
contributions to pension funds.
Lastly, other gains (losses) subtract €72m mainly due
to the provision for real estate assets in order to
maintain coverage above 30%.
NET ATTRIBUTABLE PROFIT
Therefore, the positive progress of revenues,
favorable performance of expenses and a proper level
of loan-loss provisioning and provisions have resulted
in a pre-tax profit of €1,862m as of 31-Mar-2010, as
compared with €1,834m in the same period of 2009.
After deducting the corporate tax and minority
interests, net attributable profit for the Group in the
first quarter of 2010 reached €1,240m. Its slower
rate of increase as compared to the pre-tax profit is
due to the tax rate as a result of the upward revision,
by 2 percentage points, occurring in Mexican tax
legislation.
All BBVA’s business areas have positively contributed
to the Group’s performance: Spain and Portugal
contribute €587m, Mexico €347m, South America
€233m, United States €54m and WB&AM €284m.
Earnings per share (EPS) stands at €0.32, as
compared to the €0.34 in the first quarter of 2009.
The increase of the Group’s shareholders’ funds led
to a rise in the book value per share, up 7.5%
| 1Q10 |
13
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