There are two significant elements in the income statement for the area: first, the impact of loan-loss provisions in the developer book and the decline in the value of foreclosed real-estate assets; and second, the effect of the sale of properties.
Other factors also influencing the situation, although to a lesser extent, are: 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 the year-on-year increase in operating expenses, due to greater staff numbers assigned to the area to carry out separate and specialized management of this business and deal with increased activity.
In 2013, BBVA’s real-estate activity in Spain registered a loss of €1,254m, notably less than the loss of €4,044m the previous year, when there was an increase in impairment losses on financial assets and other negative results from the deterioration in assets related to this industry.
