16. Investments in entities accounted for using the equity method

The breakdown of the balances of “Investments in entities accounted for using the equity method” in the accompanying consolidated balance sheets is as follows:

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	Millions of Euros
Investments in Entities Accounted for Using the Equity Method	2014	2013	2012
Associate entities	417	1,272	6,469
Joint venture entities	4,092	3,470	4,313
Total	4,509	4,742	10,782

16.1 Associates

The following table shows the carrying amount of the most significant of the Group’s investments in associates:

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	Millions of Euros
Associate Entities	2014	2013	2012
China Citic Bank Corp Ltd (CNCB)	-	-	5,372
Citic International Financial Holdings Ltd (CIFH)	-	631	593
Metrovacesa	233	315	317
Occidental Hoteles Management, S.L.	-	98	-
Tubos Reunidos, S.A.	-	53	54
Brunara SICAV, S.A.	52	48	-
Other associates	132	127	133
Total	417	1,272	6,469

Appendix II shows the details of the associates as of December 31, 2014.

The following is a summary of the changes in 2014, 2013 and in 2012 under this heading in the accompanying consolidated balance sheets:

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	Millions of Euros
Associates Entities. Changes in the Year	2014	2013	2012
Balance at the beginning	1,272	6,469	5,567
Acquisitions and capital increases	1	65	10
Disposals and capital reductions	(2)	(4)	(16)
Transfers and changes in the consolidation method	(948)	(5,453)	353
Earnings	26	425	721
Exchange differences	89	(71)	(53)
Others	(21)	(159)	(113)
Balance at the end	417	1,272	6,469

The changes in 2014 are mainly a result of the reclassification of the stake in CIFH to Non current assets (see Note 3).

During the year ended December 31, 2014, the investment on Occidental Hoteles Management, S.L. was reclassified to “Non-current assets available for sale”. Also, BBVA sold 6.89% of its participation in Tubos Reunidos, S.A., decreasing its participation to 14.47%, which meant a loss of significant influence and triggered therefore the reclassification of this investment to “Financial assets available for sale” in an amount of €47 million. The impact in equity and the consolidated income statement is not material.

The changes in 2013 are mainly a result of the sale and reclassification of the remaining stake in CNCB to the heading “Available-for-sale financial assets” as it is mentioned in the Note 3.

16.2 Investments in joint venture entities

The breakdown of the balance under this heading in the accompanying consolidated balance sheets is as follows:

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	Millions of Euros
Joint ventures	2014	2013	2012
Garanti Group (Nota 3)	3,853	3,245	3,991
Rest	239	225	120
Total	4,092	3,470	4,313

Details of the joint ventures accounted for using the equity method as of December 31, 2014 are shown in Appendix II.

The following is a summary of the changes as date of December 31, 2014, 2013 and 2012 under this heading in the accompanying consolidated balance sheets:

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	Millions of Euros
Joint ventures. Changes in the Year	2014	2013	2012
Balance at the beginning	3,470	4,313	3,732
Acquisitions and capital increases	35	70	4
Disposals	(8)	(11)	(1)
Transfers	-	(155)	(7)
Earnings	317	269	318
Exchange differences	146	(818)	134
Others	132	(198)	133
Balance at the end	4,092	3,470	4,313

16.3 Other information about associates and joint ventures

The following table provides relevant information of the balance sheets and income statements of Garanti Group.

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	Millions of Euros
Garanti: Financial Main figures (*)	2014 (*)	2013 (*)	2012 (*)
Total assets	20,955	18,394	18,850
Of which:
Loans and advances to customers	12,810	11,093	10,860
Total liabilities	18,631	16,411	16,520
Of which:
Customer deposits	10,405	9,501	9,790
Net interest margin	514	703	693
Gross income	802	1,080	1,041
Net operating income	325	445	463
Net income attributable to the Garanti Group	255	353	364

(*) Financial statements of Garanti Group under IFRS and without consolidation adjustments, and multiplied by the voting rights controlled by the bank. Figures available at the time of closing.

On November 19, 2014, the Group subscribed a new agreement with Dogus for the acquisition of an additional 14.89% in Garanti (see Note 3). In accordance with the applicable accounting rules the BBVA Group shall value its current stake in Garanti Bank at fair value and shall fully consolidate Garanti Bank in the consolidated financial statements of the BBVA Group as from the date of the actual acquisition of control (see Note 3).

The main adjustments made to the financial statements of Garanti to properly accounted for it under the equity method are related to the purchase price allocation (PPA). None of these adjustments is material.

The following table provides relevant information of the balance sheets and income statements of associates and joint ventures, excluding Garanti, as of December 31, 2014, 2013 and 2012, respectively.

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	Millions of Euros
Associates and Joint ventures	2014 (*)		2013 (*)		2012 (*)
Interest Margin	(28)	(1)	73	26	1,424	14
Gross income	76	82	305	78	1,940	48
Profit from continuing operations	(10)	-	82	(23)	783	(46)
Profit from discontinued operations (net)	-	-	-	-	-	-
Total	(10)	-	77	(23)	596	(46)

(*) Dates of the company’s financial statements updated at the most recent available information. Information applying the corresponding ownership and without the corresponding standardization and consolidation adjustments.

As of December 31 2014 there was no financial support agreement or other contractual commitment to associates and joint ventures entities from the holding or the subsidiaries that are not recognized in the financial statements (see Note 52.2).

As of December 31, 2014 there was no contingent liability in connection with the investments in joint ventures and associates (See Note 52.2).

16.4 Notifications about acquisition of holdings

Appendix III provides notifications on acquisitions and disposals of holdings in associates or joint ventures, in compliance with Article 155 of the Corporations Act and Article 53 of the Securities Market Act 24/1988.

16.5 Impairment

As described in IAS 36, in the case of sign of impairment, the book value of the associate entities and joint venture entities has been compared with their recoverable amount, being the latter calculated as the largest between the value in use and the fair value minus the cost of sale. For the year ended December 31, 2014, there is no recording due to impairment. The valuation of the most relevant investments is reviewed when deemed appropriate by independent experts.