12
GROUP INFORMATION 2Q09
Earnings
by BBVA’s criteria of maximum prudence for their
calculation. Nonetheless, its important to highlight
that another of the pillars of strength of the Group is
that operating income generated could offset
provisions more than three times the amount
accumulated in the last two quarters.
Net provisions in the first half came to €153m. This
is far smaller than the €612m provided in the same
period last year, which included €470m for one-off
early retirements.
Lastly, other gains (losses) in the first half resulted in
a deduction of €192m. This was mainly due to the
application of maximum prudence criteria when
determining the valuation for assets that were
foreclosed, acquired or coming from the real estate
fund, based on current market valuations. In the same
period last year this item contributed gains of €727m
on the sale of a stake in Bradesco.
Net attributable profit
As a result of the above, cumulative income before
tax for the year to 30-Jun-09 came to €4,003m,
compared to €4,490 at 30-Jun-08. Income tax comes
to €961m and thus net income is €3,042m. Of this
amount minority interests account for €243m and the
net profit attributable to the Group in the first half of
2009 is €2,799m, a decrease of 10.0% compared to
€3,108m in the same period last year (a decrease of
7.6% at constant exchange rates).
One-off operations in the first half of last year added
€180m after tax. Excluding such items, net
attributable profit in the first half this year is only
4.4% less than a year earlier (or 1.7% less without
the exchange rate effect).
All business areas contributed to the Group’s net
attributable profit in the first half. Spain & Portugal
contributed €1,270m, WB&AM €539m, Mexico
€724m, the United States €85m and South America
contributed €463m.
Earning per share (EPS) came to €0.76 for the first
half. This is slightly less than the €0.79 obtained in
the same period last year (excluding one-off
operations) and the decline of 4.1% is similar to that
of net attributable profit because the Group has not
increased share capital in the last year.
Earnings per share (1)
(Euros)
0.74 0.79 0.76
1H
2007 1H
2008 1H
2009
(1) Excluding results of one-off operations.
Lastly, BBVA has attained excellent profitability:
return on equity (ROE) stands at 21.5% and return
on total average assets (ROA) comes to 1.12%. These
figures put BBVA once more in the vanguard of large
European banking groups in terms of profitability.
ROE (1)
(Percentage)
25.3
1H
2008
(1) Excluding results of one-off operations.
ROA (1)
(Percentage)
1.25
1H
2008
(1) Excluding results of one-off operations.
23.2 21.5
2008 1H
2009
1.12 1.12
2008 1H
2009
–4.1%
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