BBVA’s Impact on Society: Social Impact Program

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Based on our systems to listen to stakeholders and our strategic vision, the Group has set up a new strategic program called Social Impact. This assesses BBVA’s social and economic impact on the development of the societies in which it operates through its social programs and, especially, its main financial activities.

Until now, this report included data on Economic Value Added (EVA) broken down by stakeholder and Economic Value Generated, Distributed and Retained calculated in accordance with the GRI protocol for the EC1 indicator. The results of these indicators this year were:

Economic Value Added (EVA) ^(1). Breakdown by stakeholder group

(Million euros)

		2011	2010	2009
Shareholders	Dividends	1,124	1,079	1,574
Employees	Personnel costs	5,311	4,814	4,651
Customers and capital suppliers	Interest and similar charges ⁽²⁾	11,028	7,814	9,893
Suppliers	Other general administrative expenses ⁽³⁾	3,793	3,359	2,976
Society	Corporate income tax	285	1,427	1,141
	Resources allocated by the BBVA Group	34	34	36
	Resources allocated by BBVA’s foundations	40	42	44
Total	Economic Value Added (EVA)	21,615	18,569	20,314

(1) Calculated according to the GRI SPI model.
(2) Interest and similar charges from financial activity. Does not include fees.
(3) Approximation adjusted to payments made to third parties under the heading of purchases and services rendered. Scope: BBVA Group and its Foundations.

In 2011, the social impact project allowed a preview of some more innovating indicators to give a better measurement of BBVA’s social impact. The program’s objective is based around the principle of transparency in order to show what BBVA is really about and thereby gain social legitimacy in the eyes of all of its stakeholders.

BBVA's social impact (2011)

People who live in BBVA-financed houses (Million people) ⁽¹⁾	4.7
Customers in Spain with new financing conditions tailored to their needs ⁽²⁾	105,000
Entrepreneurs in Latin America financed with microcredits from the BBVA Microfinance Foundation ⁽³⁾	948,500
People with term deposits who on average have received €863 in interest (Million people) ⁽⁴⁾	2.7
People with funds managed by the Group's pension managers in Latin America (Million people) ⁽⁵⁾	13.3
Small shareholders who have received an average dividend of €490 ⁽⁶⁾	935,406
Jobs created in 2011 ⁽⁷⁾	3,200
Total taxes paid and collected by BBVA (Million euros) ⁽⁸⁾	8,011.5
Amount paid to 6,654 suppliers in 2011 (million euros) ⁽⁹⁾	5,498
Attributable profit after taxes donated to community involvement programs (%)	2.5
Children granted scholarships under education programs in Latin America	61,436
People trained under financial literacy program	814,483

(1) An average ratio of people per financed house has been calculated as the total population in a country divided by the number of houses registered in that country. (2) Number of refinancing transactions undertaken in Spain since 2008. (3) The average approximate microloan amount is 1,000 euros and 60% of those financed are female. (4) Calculated based on the total amount paid as interest on term deposits in 2011 divided by the number of customers with term deposit contracts. (5) More than 60,000 million euro managed. (6) Small shareholder refers to one with less than 18,000 shares. (7) Net employment created by the Group, of which 58% are under 30 years old. (8) Payments for corporate tax, own VAT and third party VAT, local taxes and fees, income tax withholdings and other third party taxes, employer and employee Social Security payments, and payments made during 2011 due to tax litigation. (9) Suppliers who bill the BBVA Group over 100,000 euros 66% of purchases are made locally. Scope: BBVA Group and its Foundations.

Along these lines, BBVA also wants to prove its unwavering commitment to transparency and business ethics everywhere it operates. In 2011, BBVA adopted the Code of Good Tax Practices in Spain, a government initiative to increase cooperation and transparency between companies and the Spanish Tax Revenue Agency. As well as applying ethical and transparent work practices in every country it operates, BBVA also makes a significant contribution toward public revenue through its own tax payments, third party tax collection due to its economic activity and third party tax collection in its role as collaborating entity with the tax authorities.

The following is a breakdown of information on BBVA’s tax contribution in each of the countries in which it operates for FY 2011:

BBVA Group's tax contribution with information on own taxes paid ⁽¹⁾

(Million euros)

Country	2011
Country	Own Taxes	Third Party Taxes	Total Contribution
Spain and Portugal	1,005.13	1,482.98	2,488.11
Spain	984.29	1,436.06	2,420.34
Portugal	20.84	46.93	67.77
Mexico	1,272.98	1,494.39	2,767.38
United States	100.10	154.73	254.83
South America	773.83	1,614.66	2,388.49
Argentina	213.40	1,223.46	1,436.86
Chile	63.49	46.98	110.47
Colombia	118.72	183.93	302.66
Paraguay	13.46	5.73	19.19
Peru	226.90	72.37	299.26
Venezuela	137.85	82.18	220.04
Rest of the Group	86.18	26.55	112.74
Germany	13.22	3.91	17.13
Belgium	4.01	1.68	5.69
France	11.90	1.56	13.46
Hong Kong	6.47		6.47
Italy	26.54	4.09	30.64
Japan	0.83	0.49	1.31
Puerto Rico	7.47	5.33	12.81
United Kingdom	14.51	9.50	24.01
Singapore	1.22		1.22
Total	3,238.22	4,773.32	8,011.55

(1) Payments for corporate tax, own VAT and third party VAT, local taxes and fees, income tax withholdings and other third party taxes, employer and employee Social Security payments, and payments made during 2011 due to tax litigation. Scope: BBVA Group