been made tougher, thus increasing fourth-quarter
allocations to provisions.
On 31st December 2009, the volume of total risks
with customers (including contingent liabilities)
stood at €364,776m, having increased 0.3% against
the €363,812m recorded to 30-Sep-2009 based on
the appreciation of the currencies against the euro in
this quarter. Higher-risk lending (eg, consumer and
credit-card lending) as a percentage of the total has
continued to drop as the percentage of residential
mortgages and corporate and institutional lending
has increased.
Doubtful risks stood at €15,602m, showing a 24.8%
increase over the level reported at 30-Sep-2009.
Recoveries have continued to rise (€2,035m recovered
in the quarter, up 26.3% quarter-on-quarter), whilst
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
4Q09
4Q09 RISK AND ECONOMIC CAPITAL MANAGEMENT
Risk management
the increase in new additions to NPA’s, above all in
Spain & Portugal and the United States, reflected the
policy of anticipating events and applying maximum
prudence mentioned above. Factoring out the impact
of these one-off actions, BBVA has seen a continuing
downward trend in the net additions to NPA’s
throughout the year. Preventive real estate assets
bought went down, totalling €4m in the quarter.
The NPA ratio rose to 4.3%. This was higher than
the third-quarter figure due to the aforementioned
increase in doubtful assets. In Spain & Portugal the
ratio was 5.1% (4.3% excluding the mentioned
reclassification). Mexico recorded a ratio of 4.3%,
whilst South America did not record any significant
changes (2.7% in the fourth quarter, 2.8% in the
third). In the United States, the ratio was 5.2%,
compared against 3.9% the previous quarter.
3Q09
2Q09
12,500 11,774 10,543 8,568 6,544
6,187 3,573 3,717 3,787 4,265
(2,035) (1,611) (1,650) (1,228) (1,264)
4,152 1,962 2,067 2,559 3,001
(1,144) (1,088) (819) (686) (787)
94 (148) (17) 102 (190)
15,602 12,500 11,774 10,543 8,568
15,197 12,189 11,509 10,262 8,437
405 311 265 281 131
1Q09
4Q08
25
To view a Ceros magazine you need to have JavaScript enabled in your browser and have the flash player 8 or higher installed. To install the latest flash player, click the icon above, install the flash plugin and then click here to refresh this page.