29. Reserves
The breakdown of the balance for the main headings in the accompanying consolidated balance sheets is as follows:
| Reserves. Breakdown by concepts | Notes | Millions of Euros | ||
|---|---|---|---|---|
| 2011 | 2010 | 2009 | ||
| Legal reserve | 29.1 | 440 | 367 | 367 |
| Restricted reserve for retired capital | 29.2 | 495 | 546 | 560 |
| Reserves for balance revaluations |
|
28 | 32 | 48 |
| Voluntary reserves |
|
5,854 | 4,169 | 2,918 |
| Total reserves holding company (*) |
|
6,817 | 5,114 | 3,893 |
| Consolidation reserves attributed to the Bank and dependents consolidated companies. |
|
11,123 | 9,246 | 8,181 |
| Total Reserves |
|
17,940 | 14,360 | 12,074 |
29.1 Legal reserve
The legal reserve can be used to increase the common stock provided that the remaining reserve balance does not fall below 10% of the increased capital. While it does not exceed 20% of the common stock, it can only be allocated to offset losses exclusively in the case that there are not sufficient available reserves available.
Under the amended Corporations Act, 10% of any profit made each year must be transferred to the legal reserve until the balance of this reserve reaches 20% of the share capital. This limit of 20% of legal reserve will be reached by the Bank once the proposal for the allocation of the 2011 earnings is approved (see Note 4).
29.2 Restricted reserves
As of December 31, 2011, 2010 and 2009, the Bank’s restricted reserves are as follows:
| Restricted Reserves | Millions of Euros | ||
|---|---|---|---|
| 2011 | 2010 | 2009 | |
| Restricted reserve for retired capital | 88 | 88 | 88 |
| Restricted reserve for Parent Company shares and loans for those shares | 405 | 456 | 470 |
| Restricted reserve for redenomination of capital in euros | 2 | 2 | 2 |
| Total | 495 | 546 | 560 |
The restricted reserve for retired capital originated in the reduction of the nominal par value of the BBVA shares made in April 2000.
The most significant heading corresponds to restricted reserves related to the amount of shares issued by the Bank in its possession at each date as well as by the amount of customer loans outstanding at those dates that were granted for the purchase of, or are secured by, the Bank’s shares.
Finally, pursuant to Law 46/1998 on the introduction of the euro, a restricted reserve is recognized as a result of the rounding effect of the redenomination of the Bank’s common stock in euros.
Furthermore, in the individual financial statements for subsidiaries as of December 31, 2011, 2010 and 2009, restricted reserves for a total of €2,940, €2,612 and €2,140 million, respectively, were taken into consideration.
29.3 Reserves (losses) by entity
The breakdown, by company or corporate group, under the heading “Reserves” in the accompanying consolidated balance sheets is as follows:
For the purpose of allocating the reserves and accumulated losses to the consolidated companies and to the holding, the transfers of reserves arising from the dividends paid and transactions between these companies are taken into account in the period in which they took place.
| Reserves Assigned to the Consolidation Process | Millions of Euros | ||
|---|---|---|---|
| 2011 | 2010 | 2009 | |
| Accumulated reserves (losses) |
|
|
|
| Holding Company(*) | 7,711 | 4,760 | 1,676 |
| Grupo BBVA Bancomer | 5,070 | 4,306 | 4,022 |
| BBVA Seguros, S.A. | 1,422 | 1,275 | 1,052 |
| BBVA Luxinvest, S.A. | 1,231 | 1,231 | 1,239 |
| Grupo BBVA Banco Provincial | 711 | 593 | 413 |
| Corporacion General Financiera, S.A. | 677 | 1,356 | 1,334 |
| Grupo Chile | 670 | 540 | 419 |
| Compañía de Cartera e Inversiones, S.A. | 540 | 141 | 123 |
| Cidessa Uno, S.L. | 432 | 1,016 | 746 |
| Anida Grupo Inmobiliario, S.L. | 369 | 377 | 401 |
| BBVA Suiza, S.A. | 269 | 249 | 233 |
| Grupo BBVA Continental | 217 | 183 | 127 |
| BBVA Panamá, S.A. | 178 | 147 | 118 |
| BBVA Ireland Public Limited Company | 173 | 144 | 103 |
| Bilbao Vizcaya Holding, S.A. | 157 | 150 | 166 |
| Grupo BBVA Puerto Rico | 10 | 5 | 72 |
| Finanzia, Banco de Crédito, S.A. (**) | - | (49) | 146 |
| Grupo Colombia | (38) | (173) | (243) |
| Compañía Chilena de Inversiones, S.L. | (84) | (87) | (135) |
| Grupo BBVA Banco Francés | (92) | (113) | (139) |
| Participaciones Arenal, S.L. | (181) | (181) | (181) |
| Grupo BBVA Portugal | (188) | (207) | (207) |
| BBVA Propiedad S.A, (formerly BBVA Propiedad, F.I.I.) | (194) | (116) | (12) |
| Anida Operaciones Singulares, S.L. | (816) | (424) | (22) |
| Grupo BBVA USA Bancshares | (852) | (960) | 71 |
| Rest | 188 | 143 | 245 |
| Subtotal | 17,580 | 14,305 | 11,766 |
| Reserves (losses) of entities accounted for using the equity method: | |||
| Grupo CITIC | 431 | 93 | 31 |
| Tubos Reunidos, S.A. | 51 | 52 | 51 |
| Servired Sociedad Española de Medios de Pago, S.A | 4 | 12 | 24 |
| Corporación IBV Participaciones Empresariales, S.A. | 1 | 4 | 249 |
| Hestenar, S.L. | (15) | (15) | (2) |
| Occidental Hoteles Management, S.L. | (72) | (44) | (13) |
| Rest | (40) | (47) | (31) |
| Subtotal | 360 | 55 | 309 |
| Total Reserves | 17,940 | 14,361 | 12,075 |