50% each. Therefore the effect on the capital base is
neutral.
During 2009 the core ratio increased 180 basis
points: 70 basis points were provided by the issue of
convertible bonds in the third quarter and 140 basis
points by organic generation. This reflects the BBVA
Group’s ability to generate capital in adverse
economic circumstances. Lastly, China Citic Bank
subtract 30 basis points.
The Tier I ratio stands at 9.4%, also unchanged
during the fourth quarter (7.9% at 31-Dec-08). In
October BBVA successfully concluded an offer to
exchange preference securities placed in the
institutional market. As a result of this exchange
BBVA issued two preference securities of €645m and
GBP251m. Both carry an early redemption option at
five years. Consequently preference securities now
Ratings
Moody’s
Fitch
Standard & Poor’s
represent 18.8% of total capital (Tier I) and this is
one percentage point less than the previous quarter.
At the end of the quarter other eligible capital
(Tier II), which mainly consists of subordinated debt,
eligible latent capital gains and surplus generic
provisions, came to €12,186m. This is 4.2% of
risk-weighted assets (4.1% at 30-Sep-09 and 4.3% at
31-Dec-08).
The aggregate of Tier I and Tier II at 31-Dec-09
brings the BIS ratio to 13.6%, an increase of 0.2
percentage points compared to 30-Sep-09 and 1.4
percentage points higher compared to 12.2% at
31-Dec-08. This increase basically reflects the
improvement in core capital.
Ratings
BBVA remains one of the financial entities with
superior ratings.
Long term Short term
Financial strength Outlook
Aa2 P-1 B- Negative
AA- F-1+ A/B Positive
AA A-1+ - Negative
4Q09 GROUP INFORMATION
Capital base
21
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