Attributable economic risk capital (ERC)1 consumption as of 31-Mar-2014 amounted to €29,835m, a decline of 5.9% on the figure for December 2013.
As is to be expected from BBVA’s profile, the largest allocation to ERC (52.5%) relates to credit risk on portfolios originated in the Group’s branch network from its own customer base. A 9.6% decline was reported in the quarter, concentrated mainly in South America and Spain.
Equity risk, in other words the portfolio of holdings in industrial and financial companies, the stake in the CNCB group and consumption of economic capital from goodwill, has maintained its proportion stable in relation to total risks, at 17.9%.
Structural balance-sheet risk, originated from the management of both structural interest-rate risk and exchange-rate risk, accounts for 5.8% of ERC, and has declined 7.9% over the last quarter.
Operational risk reduced its relative weight to 6.7%, while fixed-asset risk increased its share to 12.8% of total ERC consumption.
Lastly, market risk, which is of less importance given the nature of the business and BBVA’s policy of minimal proprietary trading, reduced its relative weight to 3.0%.
(1) The changes presented here are with respect to a calculation of the December 2013 close (€31,703m) that uses comparable figures, including the annual effects of the updates in methodology and credit risk carried out at the end of the year (Mexico, South America and United States) and the revision of the other risk models, rather than the official closing figure published for 2013 (€29,524m).