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
The NPA ratio was 3.5% for the units of BBVA doing
business in Spain. This rate is below that of the
finance system as a whole, according to the latest data
published to May 2009. During the quarter, the
purchase of assets from distressed customers was lower
than in the previous quarter: €178m, as compared
against €490m from the first quarter of 2009.
Bancomer, in Mexico, also reported lower NPA
ratios than its main competitors (according to latest
available data). The area’s NPA ratio reached 3.9%
at the end of June 2009, from 3.6% in March. The
ratio in the United States area increased to 4.5%
(3.9% at March 2009). Finally, in South America,
the NPA ratio stood at 2.6%, at very similar levels
to the 2.3% reported three months earlier.
Coverage provisions for customer risk were
€8,023m at 30th June 2009. This figure was
practically flat to the €8 billion from the end of
NPA coverage ratio
(Percentage)
167
June
2008
127
92 76
68
September December March
June
2008 2008 2009
2009
2Q09
1Q09
2Q09 RISK AND ECONOMIC CAPITAL MANAGEMENT
Risk management
March 2009. Of these, generic and country-risk
provisions plus substandard (€4,546m) accounted
for 56.7% of the total and continued to significantly
outsize expected loss.
The Group’s coverage ratio stood at 68% on 30th
June 2009. By business areas, Spain & Portugal’s
ratio was 55%, while in Wholesale Banking & Asset
Management it was 133%; in Mexico 137%; in USA
49%, and in South America 129%.
Non-performing assets were comfortably cushioned
by tangible guarantees. If the value of the collateral
associated with the non-performing assets
(€11,316m) is taken into account, the coverage
would stand at 164%. The value of the collateral
represents 186% of the balance of secured non-
performing assets. Furthermore, coverage funds
represent 141% of the balance of unsecured non-
performing assets.
Coverage including provisions and
collaterals (Million euros)
11,316
Value of
collaterals
Secured Non secured
+186%
4Q08
10,543 8,568 6,544 4,720 3,878
3,717 3,787 4,265 3,137 2,215
(1,650) (1,228) (1,264) (875) (813)
2,067 2,559 3,001 2,262 1,402
(819) (686) (787) (529) (535)
(17) 102 (190) 91 (25)
11,774 10,543 8,568 6,544 4,720
11,509 10,262 8,437 6,483 4,665
265 281 131 61 55
6,076
NPAs
3Q08
8,023
Provisions
+141%
2Q08
5,698
NPAs
23
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