Income statement
(Million euros)


January-Sep. 11 ∆% January-Sep. 10
Net interest income 516 108.7 247
Net fees and commissions 287 71.9 167
Net trading income 83 (8.1) 90
Other income/expenses 433 81.8 238
Gross income 1,319 77.6 743
Operating costs (432) 101.5 (215)
Personnel expenses (237) 81.4 (130)
General and administrative expenses (164) 129.4 (71)
Depreciation and amortization (32) 151.0 (13)
Operating income 887 67.9 528
Impairment on financial assets (net) (67) 214.9 (21)
Provisions (net) and other gains (losses) 17 n.s. (12)
Income before tax 837 69.1 495
Income tax (132) 70.0 (77)
Net income 705 68.9 418
Non-controlling interests - n.s. 1
Net attributable profit 705 68.6 418
Balance sheet
(Million euros)


30-09-11 ∆% 30-09-10
Cash and balances with central banks 1,908 n.s. 290
Financial assets 11,110 74.5 6,367
Loans and receivables 38,492 46.9 26,211
Loans and advances to customers 34,188 44.7 23,622
Loans and advances to credit institutions and other 4,304 66.3 2,589
Inter-area positions - n.s. 15,879
Tangible assets 576 61.0 358
Other assets 1,169 190.6 402
Total assets/Liabilities and equity 53,254 7.6 49,507
Deposits from central banks and credit institutions 16,908 (13.7) 19,591
Deposits from customers 22,504 (8.7) 24,657
Debt certificates 864 n.s. -
Subordinated liabilities 2,010 49.4 1,345
Inter-area positions 3,146 n.s. -
Financial liabilities held for trading 319 (25.3) 427
Other liabilities 2,650 151.1 1,055
Economic capital allocated 4,854 99.6 2,432
Significant ratios


30-09-11 30-06-11 30-09-10
Efficiency ratio 32.8 31.2 28.9
NPA ratio 1.5 1.3 0.9
NPA coverage ratio 117 143 139
Risk premium 0.28 0.33 0.12

Eurasia highlights in the third quart

  • Strong business activity in Turkey.
  • High growth of the contribution from Asia.
  • Resilience of global businesses in Europe.
  • Payment of the CNCB share capital increase.

This area covers BBVA’s activity in Europe (excluding Spain) and Asia. In other words, it includes BBVA Portugal, Consumer Finance Italy and Portugal, the retail business of branches in Paris, London and Brussels (in 2010 these were reported in Spain and Portugal), and WB&AM activity (Corporate and Investment Banking, Global Markets and CNCB) within this geographical area. It also covers the Group’s stake in Garanti.

The economic situation in Eurasia is one of great disparity. In Europe, the situation in the third quarter was characterized by uncertainty and a focus on resolving the debt crisis. These doubts have been affecting the financial system of the euro zone and are leading to funding difficulties in the wholesale markets. In Turkey, however, a good rate of business activity has been sustained, though inflation remains relatively high. Finally, the Chinese economy still appears sound, despite the effects of the slowdown caused by the heightened weakness of foreign demand.

The area is of increasing importance both in terms of earnings and the balance sheet, and has increased the Group’s diversification and growth capacity. From January to September 2011, Eurasia generated a net attributable profit of €705m. This figure represents 17.2% of the earnings generated by the Group’s business areas or 22.4%, if the aggregate of Corporate Activities is included.

In the third quarter of 2011 the increased contribution of CNCB was remarkable as it maintained significant growth in its banking business. Its loan-book was up 7.2% in the first half of 2011 compared to the close of 2010; customer deposits grew 8.2% for the same period; and the net attributable profit for the semester was up 40.6% year-on-year. The success of CNCB’s share capital increase done through July and August of 2011, in which BBVA took part in order to maintain its 15% holding, also merits mention. Two factors have influenced the decision to undertake this operation: on the one hand, the need for it, due to the great strength of banking activity; and on the other hand, the wishes of the Chinese supervisor to maintain a highly solvent partner such as BBVA with the same stake as before the operation. The rest of the units, in general, presented stability with respect to previous quarters.

Eurasia. Operating income
(Million euros)
Eurasia. Net attributable profit
(Million euros)

Gross lending to customers amounted to €34,960m as of 30-Sep-2011, a 5.0% increase in the quarter. This was explained by the positive contribution of practically all of the business units. Broken down by segment, loans to global businesses rose, while the balance for local business remained stable.

Customer funds decreased 17.2% in the quarter to €22,069m. This is due primarily to the decrease of balances in Europe.

The most notable aspects of Garanti in the third quarter of 2011 are as follows:

  • Even though the Turkish Central Bank is taking actions to prevent the overheating of the economy, the lending activity maintains solid growth, which is particularly noticeable in personal loans.
  • Favorable performance of the customer spread thanks to the repricing efforts.
  • Positive performance of customer deposits, which progressed better than the sector average. This was due to the successful customer attraction campaigns carried out by the SME and individual customer segments.
  • Asset quality remains excellent, with an NPA ratio much lower than that of the sector.
Garanti. Significant data (30-06-2011) (1)

Financial statements (million euros)
Attributable profit 874
Total assets 65,620
Loans to customer 34,576
Deposits from customers 35,970
Relevant ratios (%)
Efficiency ratio 42.3
NPA ratio 2.2
Other information
Number of employees 19,784
Number of branches 894
Number of ATMs 3,144

(1) BRSA data for the group.

Garanti. Composition of assets and lending portfolio (1) (September 2011)

Garanti. Composition of liabilities (1)
(September 2011)