50
BUSINESS AREAS 2Q09
Corporate Activities
parameters. These strategies are managed both with
hedging derivatives (caps, floors, swaps, FRA’s, etc) and
with balance-sheet instruments (mainly top-rated
government bonds). As June 2009 ended, the Group had
asset portfolios denominated in euros, US dollars and
Mexican pesos.
Holdings in Industrial and Financial
Companies
This unit manages its portfolio of shares in companies
operating in the telecommunications, media, electricity,
oil, gas and finance sectors. Like Financial Planning, this
unit forms part of the Group’s Finance Department.
BBVA operates this portfolio with strict requirements
regarding its risk-control procedures, economic-capital
consumption and return on investment, diversifying
investments over different sectors. It also applies dynamic
management techniques to holdings through
monetisation and coverage strategies. During the first
three months of 2009, it has made investments for €81m
and divestments for €245m.
At 30-Jun-09, the industrial and financial holdings
portfolio was marked to market at €3,948m with latent
capital gains of €1,018m.
Real-Estate Management
Given the current economic scenario and the outlook for
the next few months, BBVA set up a Real-Estate
Management unit to apply specialist management to
real-estate assets from foreclosures, assets assigned in lieu
of payment, purchases of distressed assets and the BBVA
Propiedad real-estate fund. The earnings generated by
this new unit are not significant, as it is conceived as a
long-term project.
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