5. Earnings per share

In accordance with the criteria established by IAS 33:

• Basic earnings per share are determined by dividing the “Profit attributable to Parent Company” by the weighted average number of shares outstanding throughout the year (i.e., excluding the average number of treasury shares held over the year).
• Diluted earnings per share are calculated by using a method similar to that used to calculate basic earnings per share; the weighted average number of shares outstanding, and the profit attributable to the parent company, if appropriate, is adjusted to take into account the potential dilutive effect of certain financial instruments that could generate the issue of new Bank shares (share option commitments with employees, warrants on parent company shares, convertible debt instruments, etc.).

The following transactions were carried out in 2013with an impact on the calculation of basic and diluted earnings per share:

• The Bank issued additional share capital in 2013 (see Note 27). In accordance with IAS 33, when calculating the basic and diluted earnings per share, all years prior to the exercise of the rights must be taken into account, and a corrective factor applied to the denominator (the weighted average number of shares outstanding) only in the case of capital increases other than those for the conversion of securities into shares. This corrective factor is the result of dividing the fair value per share immediately before the exercise of rights by the theoretical ex-rights fair value per share. The basic and diluted earnings per share for 2012 and 2011 were recalculated on this basis.
• In 2013, the Bank agreed issued contingently convertible perpetual securities into ordinary shares of BBVA, without pre-emption rights, for a total amount of USD1.5 billion. Since the conversion of these perpetual securities will occur only if certain conditions are met, these shares are considered outstanding for purposes of basic earnings per share calculations only after all applicable conditions have been met. Until that point, they will be considered only for purposes of diluted earnings per share calculations.

The calculation of earnings per share is as follows:

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Basic and Diluted Earnings per Share	2013	2012 (*)	2011 (*)
Numerator for basic and diluted earnings per share (millions of euros)
Profit attributable to parent company	2,228	1,676	3,004
Adjustment: Mandatory convertible bonds interest expenses (1)	-	95	38
Profit adjusted (millions of euros) (A)	2,228	1,771	3,042
Profit from discontinued operations (net of non-controlling interest) (B)	1,819	319	197
Denominator for basic earnings per share (number of shares outstanding)
Weighted average number of shares outstanding (2)	5,597	5,148	4,635
Weighted average number of shares outstanding x corrective factor (3)	5,597	5,307	4,959
Adjustment: Average number of estimated shares to be converted	-	315	134
Adjusted number of shares - Basic earning per share (C)	5,597	5,622	5,093
Adjustment: Average number of estimated shares to be converted due to contingently convertible perpetual securities	95	-	-
Adjusted number of shares - diluted earning per share (D)	5,692	5,622	5,093
Basic earnings per share from continued operations (Euros per share)A-B/C	0.07	0.27	0.58
Diluted earnings per share from continued operations (Euros per share)A-B/D	0.07	0.27	0.58
Basic earnings per share from discontinued operations (Euros per share)B/C	0.33	0.06	0.04
Diluted earnings per share from discontinued operations (Euros per share)B/D	0.32	0.06	0.04

(1) Financial costs of convertible bonds that have been converted in June 2013. (2) Weighted average number of shares outstanding (millions of euros), excluded weighted average of treasury shares during the period. (3) Corrective factor, due to the capital increase with pre-emptive subscription right, applied for the previous years. (*) Data recalculated due to the mentioned corrective factor.

As of December 31, 2013, 2012 and 2011, except for the aforementioned convertible bonds, there were no other financial instruments or share option commitments with employees that could potentially affect the calculation of the diluted earnings per share for the years presented.