18
2Q09
At 30th June 2009 the Group’s eligible capital base,
calculated according to Basel II rules, rose 3.9%
over the first quarter to €35,064m, bringing the BIS
ratio to 12.2%. The improvement was mainly due to
organic generation of the Group’s profit.
Risk-weighted assets (RWA) rose 7.5% year-on-year
to €288,526m. However compared to the end of the
first quarter they fell 1.4% owing to the decline in
economic activity, to a progressive change in the
lending mix that favours lower-risk products and
partly to the depreciation of the US dollar since
March 2009. The minimum capital requirement (8%
of RWA) therefore comes to €23,082m and the
capital base surplus is €11,982m. In other words,
the Group’s capital base is 51.9% higher than the
required minimum.
At the end of June core capital stood at €19,816m
after rising 6.5% during the quarter thanks to the
Group’s excellent earnings. Because core capital grew
Capital base (BIS II Regulation)
(Million euros)
Shareholders' funds
Adjustments
CORE CAPITAL
Preference shares
Adjustments
CAPITAL (TIER I)
Subordinated debt and other
Deductions
OTHER ELIGIBLE CAPITAL (TIER II)
CAPITAL BASE
Minimum capital requirement (BIS II Regulation)
CAPITAL SURPLUS
RISK-WEIGHTED ASSETS
BIS RATIO (%)
CORE CAPITAL (%)
TIER I (%)
TIER II (%)
Capital base
30-06-09
during the quarter and RWA decreased, the core
capital ratio improved significantly to 6.9%.
Therefore BBVA has almost reached –in the first
half– the level of capital forecasted by the end of
2009. Furthermore the ratio would come to 7.1% if
BBVA aligned its calculation with the criteria used
by its European peer group for this purpose. In fact,
these criteria will be adopted by the Group to
Core capital
(Million euros)
16,777 17,552
June
2008
31-03-09
18,604
December
March
June
2008 2009
2009
31-12-08
29,383 27,742 26,586 26,575 25,850
(9,567) (9,138) (9,034) (8,754) (9,072)
19,816 18,604 17,552 17,821 16,777
5,433 5,421 5,395 4,465 4,420
(1,525) (1,532) (583) (514) (484)
23,724 22,493 22,364 21,772 20,713
12,880 12,802 12,914 12,985 13,355
(1,539) (1,543) (590) (520) (490)
11,340 11,259 12,324 12,465 12,865
35,064 33,752 34,687 34,236 33,578
23,082 23,410 22,666 22,330 21,469
11,982 10,342 12,022 11,907 12,109
288,526 292,626 283,320 279,122 268,357
12.2 11.5 12.2 12.3 12.5
6.9 6.4 6.2 6.4 6.3
8.2 7.7 7.9 7.8 7.7
3.9 3.8 4.3 4.5 4.8
30-09-08
19,816
30-06-08
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