The income statement in the area for the first quarter of 2013 mainly shows the expected impact on loan-loss provisions, the increased pace of sales of foreclosed properties and the writing down of the said foreclosed assets to market value.
Other elements that influence the situation are: the consolidation by the equity method of the stake in Metrovacesa, which is registered in the Other income/expenses heading, and the increase in operating expenses, specifically personnel costs, due mainly to greater staff numbers assigned to the area to carry out a separate and specialized management of this business and deal with increased activity.
Overall, BBVA’s real-estate activity in Spain has in the first three months of 2013 registered losses of €346m (losses of €300m in the same period in 2012).