Earnings

The BBVA Group’s income statement for the third quarter of 2012 continues to show a high level of recurring revenue, which has enabled it to absorb the impairment on assets related to the real estate sector in Spain. In addition, the incorporation of Unnim has generated badwill of €320m.

The Group’s quarterly profit stands at €146m, which brings the cumulative figure through September 30, 2012 to €1,656m. Excluding the charge for the aforementioned impairment of assets related to the real estate sector in Spain and Unnim’s badwill, the adjusted net attributable profit amounts to €971m over the quarter, with a cumulative figure through September of €3,345m.

Tables

Consolidated income statement: quarterly evolution

(Million euros)

	2012			2011
	3Q	2Q	1Q	4Q	3Q	2Q	1Q
Net interest income	3,880	3,744	3,597	3,485	3,286	3,215	3,175
Net fees and commissions	1,259	1,215	1,216	1,136	1,143	1,167	1,114
Net trading income	337	462	367	416	(25)	336	752
Dividend income	35	311	27	230	50	259	23
Income by the equity method	172	178	193	207	150	123	121
Other operating income and expenses	13	51	47	42	22	62	79
Gross income	5,697	5,960	5,447	5,515	4,627	5,162	5,263
Operating Costs	(2,831)	(2,688)	(2,585)	(2,652)	(2,461)	(2,479)	(2,359)
Personnel expenses	(1,483)	(1,429)	(1,379)	(1,404)	(1,325)	(1,306)	(1,276)
General and administrative expenses	(1,086)	(1,021)	(974)	(1,021)	(920)	(964)	(887)
Depreciation and amortization	(262)	(238)	(232)	(227)	(216)	(208)	(196)
Operating income	2,866	3,272	2,862	2,863	2,166	2,683	2,904
Impairment on financial assets (net)	(2,038)	(2,182)	(1,085)	(1,337)	(904)	(962)	(1,023)
Provisions (net)	(197)	(99)	(131)	(182)	(94)	(83)	(150)
Other gains (losses)	(561)	(311)	(222)	(1,718)	(166)	(154)	(71)
Income before tax	69	680	1,423	(375)	1,002	1,484	1,659
Income tax	236	(21)	(250)	368	(95)	(189)	(369)
Net income	305	659	1,173	(7)	907	1,295	1,290
Non-controlling interests	(159)	(154)	(168)	(132)	(103)	(106)	(141)
Net attributable profit	146	505	1,005	(139)	804	1,189	1,150
Adjusted⁽¹⁾	(825)	742	122	1,166	173	82	80
Net attributable profit (adjusted) ⁽¹⁾	971	1,247	1,127	1,026	978	1,271	1,229
Basic earnings per share (euros)	0.03	0.10	0.19	-0.03	0.16	0.24	0.24
Basic earnings per share adjusted (euros) ⁽¹⁾	0.18	0.23	0.22	0.21	0.20	0.26	0.25

(1) In 2011, during the fourth quarter, US goodwill imparment charge. In 2011 and 2012, impairment charge related to the deterioration of the real estate sector in Spain. And in the third quarter of 2012, impact of Unnim badwill.

Consolidated income statement

(Million euros)

	January-Sep.12	Δ %	Δ% at constant exchange rate	January-Sep. 11
Net interest income	11,220	16.0	12.3	9,676
Net fees and commissions	3,690	7.8	4.5	3,424
Net trading income	1,167	9.8	5.9	1,063
Dividend income	373	12.2	11.6	332
Income by the equity method	543	37.9	37.8	394
Other operating income and expenses	112	(31.6)	(14.1)	163
Gross income	17,103	13.6	10.5	15,052
Operating Costs	(8,103)	11.0	7.9	(7,299)
Personnel expenses	(4,290)	9.8	6.8	(3,907)
General and administrative expenses	(3,081)	11.2	8.0	(2,771)
Depreciation and amortization	(732)	17.9	13.8	(620)
Operating income	9,000	16.1	13.0	7,753
Impairment on financial assets (net)	(5,305)	83.6	80.0	(2,890)
Provisions (net)	(427)	30.4	28.1	(328)
Other gains (losses)	(1,095)	180.0	179.9	(391)
Income before tax	2,173	(47.6)	(49.4)	4,145
Income tax	(36)	(94.5)	(94.8)	(652)
Net income	2,137	(38.8)	(40.8)	3,492
Non-controlling interests	(481)	37.6	25.4	(349)
Net attributable profit	1,656	(47.3)	(48.7)	3,143
Adjusted ⁽¹⁾	(1,688)	-	-	(335)
Net attributable profit (adjusted)⁽¹⁾	3,345	(3.8)	(6.1)	3,478
Basic earnings per share (euros)	0.32			0.64
Basic earnings per share adjusted (euros) ⁽¹⁾	0.63			0.71

Diagrams

Net attributable profit ⁽¹⁾

(Million euros)

(1) Adjusted.(2) At constant exchange rates: –6.1%.

January - September 2012

Earnings

Tables

Diagrams