As discussed at the beginning of the chapter, the highlights of the area’s quarterly earnings are the less negative impact of loan-loss provisions for developer loans, the decreased deterioration in the value of foreclosed real-estate assets and a nearly insignificant effect of the sale of properties.
The income statement also includes: the consolidation by the equity method of the stake in Metrovacesa, which is registered under the “Other income/expenses” heading; the positive results from portfolio sales of stakes in associated companies; income from rentals; and operating expenses, that fall year-on-year.
In the first quarter of 2014, BBVA’s real-estate business in Spain registered a loss of €231m, notably less than the €343m loss posted the previous year, due basically to the lesser need for loan-loss provisions and lower deterioration in real-estate assets as compared to previous quarters.
