14
GROUP INFORMATION 4Q09
Earnings
For the entire year charges to provisions came to
€458m after including €551m for early retirements. In
2008 they came to €1,431m of which early retirements
of a non-recurrent nature accounted for €860m.
The last item, other gains (losses), contains losses of
€641m in 2009 that reflect three factors. There was a
capital gain of €830m on the sale and leaseback of
buildings in Spain and a loss of €998m on the
impairment of goodwill in the United States. And there
was a loss of €475m following adjustments in the
value of various foreclosed or acquired assets in Spain.
In 2008 this item reported €775m of gains, including
€727m from the sale of an interest in Bradesco.
Net attributable profit
Income before tax for the year came to €5,736m, a
drop of 17.2% compared to €6,926m in 2008. After
deducting corporate tax of €1,141m and €385m for
minority interests, net profit attributable to the
Group in 2009 comes to €4,210m (€5,260m
excluding one-off items of €1,050m).
By business area, the contributions to the Group’s
net attributable profit are as follows: Spain &
Portugal provided €2,373m, WB&AM €1,011m,
Mexico €1,359m, the United States –€21m
(excluding one-offs) and South America €871m.
Basic earnings per share (EPS) were €1.12 for the
year (€1.35 in 2008). Excluding one-off operations
this figure is largely the same as 2008 (€1.40 and
€1.46, respectively) and it is a relatively stable
amount with respect to the period before the crisis.
Nonetheless most banks have seen drastic declines in
their EPS during this period.
BBVA’s high profitability ratios in 2009 were
commendable. ROE excluding one-offs was 20.0%
(16.0% with one-offs), ROA was 1.0% (0.8% with
one-offs) and RORWA came to 1.9% (1.6% with
one-offs). Thus BBVA remains one of the most
profitable banks in the financial system.
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