The Group’s summarized consolidated balance sheets as of December 31, 2011 and 2010 are shown below. They reflect stability, prudent risk management, high solidity, low leverage and reduced funding needs:
| ASSETS | Millions of Euros | ||
|---|---|---|---|
| 2011 | 2010 | % Change 2011-2010 |
|
| CASH AND BALANCES WITH CENTRAL BANKS | 30,939 | 19,981 | 54.8 |
| FINANCIAL ASSETS HELD FOR TRADING | 70,602 | 63,283 | 11.6 |
| OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 2,977 | 2,774 | 7.3 |
| AVAILABLE-FOR-SALE FINANCIAL ASSETS | 58,144 | 56,456 | 3.0 |
| LOANS AND RECEIVABLES | 381,076 | 364,707 | 4.5 |
| Loans and advances to credit institutions | 26,107 | 23,637 | 10.4 |
| Loans and advances to customers | 351,900 | 338,857 | 3.8 |
| Debt securities | 3,069 | 2,213 | 38.7 |
| HELD-TO-MATURITY INVESTMENTS | 10,955 | 9,946 | 10.1 |
| FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 146 | 40 | 265.0 |
| HEDGING DERIVATIVES | 4,552 | 3,563 | 27.8 |
| NON-CURRENT ASSETS HELD FOR SALE | 2,090 | 1,529 | 36.7 |
| INVESTMENTS IN ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD | 5,843 | 4,547 | 28.5 |
| INSURANCE CONTRACTS LINKED TO PENSIONS | - | - | - |
| REINSURANCE ASSETS | 26 | 28 | (7.1) |
| TANGIBLE ASSETS | 7,330 | 6,701 | 9.4 |
| INTANGIBLE ASSETS | 8,677 | 8,007 | 8.4 |
| TAX ASSETS | 7,841 | 6,649 | 17.9 |
| OTHER ASSETS | 6,490 | 4,527 | 43.4 |
| TOTAL ASSETS | 597,688 | 552,738 | 8.1 |
As of December 31, 2011, the Group's “Total Assets” stood at €597,688 million, an increase of 8.1% on the €552,738 million as of December 31, 2010. This evolution is the result of several mixed reasons. First, the incorporation of Garanti’s balance sheet and the strength of lending in South America. And second, the negative effect of the depreciation of some currencies in the countries in which the Group operates, basically the Mexican peso, combined with the slowdown of the business in Spain, which continues to be affected by a persistently weak economy as a result of the deleveraging process.
As of December 31, 2011, the “Loans and receivables” balance stood at €381,076 million, an increase of 4.5% on the €364,707 million recorded as of December 31, 2010. This change is basically the result of the “Loans and advances to customers” item, which amounted to €351,900 million as of December 31, 2011, an increase of 3.8% (4.3% at constant exchange rates) on the €338,857 million as of December 31, 2010. As mentioned earlier, this increase is partly due to the incorporation of 25.01% of Garanti in March 2011. In Spain, gross lending to customers fell as a result of the deleveraging process in the country’s economy. Despite this, BBVA gained market share in the mortgage portfolio of individuals and lessened its exposure to the developer sector. In Europe, investment remained stable and focused on highest-added-value customers, basically corporates, while the United States continued to make progress in the change of its portfolio mix, increasing the weight of target portfolios (residential real estate and commercial). Finally, in Latin America, where lending is clearly buoyant, there is a notable increase in practically all the portfolios and categories. Moreover, these rises are of greater quality thanks to the significant proportion of loyal customers.
| LIABILITIES AND EQUITY | Millions of Euros | ||
|---|---|---|---|
| 2011 | 2010 | % Change 2011-2010 |
|
| LIABILITIES |
|
|
|
| FINANCIAL LIABILITIES HELD FOR TRADING | 51,303 | 37,212 | 37.9 |
| OTHER FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 1,825 | 1,607 | 13.6 |
| FINANCIAL LIABILITIES AT AMORTIZED COST | 479,904 | 453,164 | 5.9 |
| Deposits from central banks | 33,147 | 11,010 | 201.1 |
| Deposits from credit institutions | 59,356 | 57,170 | 3.8 |
| Customer deposits | 282,173 | 275,789 | 2.3 |
| Debt certificates | 81,930 | 85,179 | (3.8) |
| Subordinated liabilities | 15,419 | 17,420 | (11.5) |
| Other financial liabilities | 7,879 | 6,596 | 19.5 |
| FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | - | (2) | n.s. |
| HEDGING DERIVATIVES | 2,710 | 1,664 | 62.9 |
| LIABILITIES UNDER INSURANCE CONTRACTS | 7,737 | 8,034 | (3.7) |
| PROVISIONS | 7,561 | 8,322 | (9.1) |
| TAX LIABILITIES | 2,330 | 2,195 | 6.2 |
| OTHER LIABILITIES | 4,260 | 3,067 | 38.9 |
| TOTAL LIABILITIES | 557,630 | 515,263 | 8.2 |
| EQUITY |
|
|
|
| STOCKHOLDERS’ FUNDS | 40,952 | 36,689 | 11.6 |
| VALUATION ADJUSTMENTS | (2,787) | (770) | 261.9 |
| NON-CONTROLLING INTEREST | 1,893 | 1,556 | 21.7 |
| TOTAL EQUITY | 40,058 | 37,475 | 6.9 |
| TOTAL LIABILITIES AND EQUITY | 597,688 | 552,738 | 8.1 |
| Memorandum items: |
|
|
|
| Customer funds on balance sheet | 379,522 | 378,388 | 0.3 |
| Customer deposits | 282,173 | 275,789 | 2.3 |
| Debt certificates | 81,930 | 85,179 | (3.8) |
| Subordinated liabilities | 15,419 | 17,420 | (11.5) |
| Other customer funds | 126,290 | 132,228 | (4.5) |
| Mutual funds | 39,416 | 42,068 | (6.3) |
| Pension funds | 78,637 | 78,776 | (0.2) |
| Customer portfolios | 8,238 | 11,384 | (27.6) |
| TOTAL CUSTOMER FUNDS | 505,812 | 510,616 | (0.9) |
As of December 31, 2011, the “Financial liabilities measured at amortized cost” balance stood at €479,904 million, an increase of 5.9% on the €453,164 million as of December 31, 2010. Specifically, “Customer deposits”, which accounts for 59% of this item, amounted to €282,173 million as of December 31, 2011, an increase of 2.3% on the €275,789 million as of December 31, 2010.
As of December 31, 2011, total customer funds, both those on the balance sheet (customer deposits, debt certificates (including bonds), subordinated liabilities) and off the balance sheet (mutual funds, pension funds and customer portfolios) stood at €505,812 million, 0.9% down on the €510,616 million as of December 31, 2010. This change is negatively affected by the exchange rates, since the funds increased significantly thanks to thriving activity in the majority of the subsidiaries in South America and Mexico, combined with the incorporation of Garanti’s balances.
Within the on-balance sheet funds, customer deposits, which account for 74% of the total figure, increased by 2.3% (+2.9% at constant exchange rates) to €282,173 million as of December 31, 2011, compared with €275,789 million as of December 31, 2010. By categories within the resident sector, there is a notable increase in lower-cost deposits, such as current and savings account, which are up 2.3% year-on-year. Time deposits remained stable, thanks to the high percentage of renewals of deposits sold in 2010. These renewals are made at a significantly lower cost. The lowest-cost funds in the non-resident sector, i.e. current and savings accounts, increased notably.
The off-balance sheet funds decreased by 4.5%, with a volume of €126,290 million as of December 31, 2011, compared with €132,228 million as of 31 December, 2010.
Of the total off-balance sheet funds, 35% are located in Spain and fell year-on-year by 4%. This fall can largely be explained by the reduction in the value of funds under management, mainly mutual funds (down 12.2% year-on-year), and by customer preference for other products such as time deposits and promissory notes. It is worth pointing out that according to the latest data from October 2011, the effect of this fall in BBVA is still much less significant than in the rest of the system, given the more conservative profile of its mutual funds. Pension funds grew by 2.5% year-on-year. BBVA maintains its position as the leading pension fund manager in Spain, with a market share of 18.7% (September 2011 data, the latest available).
In the rest of the world, off-balance sheet funds rose by 0.2% year-on-year at current exchange rates. These funds have also been affected by the fall in the value of assets under management.