January-December 2013


Economic capital

Attributable economic risk capital (ERC) consumption as of 31-Dec-2013 amounted to €30,034m, an 8.7% decline on the figure for September 2013.

As is to be expected from BBVA’s profile, the largest allocation to ERC (57.1%) relates to credit risk on portfolios originated in the Group’s branch network from its own customer base. A 5.1% decline was reported in the quarter, concentrated mainly in 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 reduced its proportion in relation to total risks to 18.4% as a result of the sale of 5.1% of the stake in CNCB.

Structural balance-sheet risk, originated from the management of both structural interest-rate risk and exchange-rate risk, accounts for 6.6% of ERC, and has declined 17.8% over the last quarter, also affected by the sale of the aforementioned stake in CNCB.

Operational risk remained stable, with a relative weight of 7.1%, while fixed-asset risk decreased by 5.2% and also accounts for 7.1% 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 over the quarter to 2.6%.