Quantitative information on activities in the real-estate market in Spain
The following quantitative information on real-estate activities in Spain has been prepared using the reporting models required by Bank of Spain Circular 5/2011, of November 30.
As of December 31, 2015, 2014 and 2013, exposure to the construction sector and real-estate activities in Spain stood at €18,744, €19,077 and €22,760 million, respectively. Of that amount, risk from loans to construction and real-estate development activities accounted for €9,681, €10,986 and €13,505 million, respectively, representing 6.0%, 7.6% and 8.8% of loans and advances to customers of the balance of business in Spain (excluding the government and other government agencies) and 1.3%, 1.7% and 2.3% of the total assets of the Consolidated Group. The changes are influenced by the integration of Catalunya Banc.
Lending for real estate development of the loans as of December 31, 2015, 2014 and 2013 is shown below:
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Millions of Euros | ||
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| December 2015 Financing allocated to construction and real estate development and its coverage |
Gross amount | Drawn over the guarantee value | Provision coverage |
| Loans recorded by the Group’s credit institutions (Business in Spain) | 9,681 | 4,132 | 3,801 |
| Of which: Impaired assets | 6,231 | 3,087 | 3,600 |
| Of which: Potential problem assets | 783 | 301 | 201 |
| Memorandum item: |
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| Write-offs | 1,741 |
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Millions of Euros | ||
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| December 2014 Financing allocated to construction and real estate development and its coverage |
Gross amount | Drawn over the guarantee value | Provision coverage |
| Loans recorded by the Group’s credit institutions (Business in Spain) | 10,986 | 4,832 | 4,572 |
| Of which: Impaired assets | 7,418 | 3,686 | 4,225 |
| Of which: Potential problem assets | 981 | 374 | 347 |
| Memorandum item: |
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| Write-offs | 1,075 |
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Millions of Euros | ||
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| December 2013 Financing allocated to construction and real estate development and its coverage |
Gross amount | Drawn over the guarantee value | Provision coverage |
| Loans recorded by the Group’s credit institutions (Business in Spain) | 13,505 | 5,723 | 5,237 |
| Of which: Impaired assets | 8,838 | 4,152 | 4,735 |
| Of which: Potential problem assets | 1,445 | 501 | 502 |
| Memorandum item: |
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| Write-offs | 692 |
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| Memorandum item: Consolidated Group Data (carrying amount) |
2015 | 2014 | 2013 |
| Total loans and advances to customers, excluding the Public Sector (Business in Spain) | 161,416 | 144,528 | 152,836 |
| Total consolidated assets (total business) | 750,078 | 631,942 | 582,697 |
| Impairment losses determined collectively (total business) | 4,222 | 2,767 | 2,698 |
The following is a description of the real estate credit risk based on the types of associated guarantees:
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Millions of Euros | ||
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| Credit: Gross amount (Business in Spain) | 2015 | 2014 | 2013 |
| Without secured loan | 1,157 | 1,007 | 1,303 |
| With secured loan | 8,524 | 9,979 | 12,202 |
| Terminated buildings | 4,941 | 5,776 | 7,270 |
| Homes | 4,112 | 4,976 | 6,468 |
| Other | 829 | 800 | 802 |
| Buildings under construction | 688 | 883 | 1,238 |
| Homes | 660 | 861 | 1,202 |
| Other | 28 | 22 | 36 |
| Land | 2,895 | 3,320 | 3,694 |
| Urbanized land | 1,541 | 1,881 | 2,120 |
| Rest of land | 1,354 | 1,439 | 1,574 |
| Total | 9,681 | 10,986 | 13,505 |
As of December 31, 2015, 2014 and 2013, 51%, 61% and 63% of loans to developers were guaranteed with buildings (83.2%, 87.6%, and 90.1% are homes), and only 29.9%, 30.2% and 27.4% by land, of which 53.2%, 56.7% and 57.4% is urbanized, respectively.
The information on the retail mortgage portfolio risk (housing mortgage) as of December 31, 2015, 2014 and 2013 is as follows:
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Millions of Euros | ||
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| Housing-acquisition Loans to Households (Business in Spain) |
2015 | 2014 | 2013 |
| With secured loan (gross amount) | 89,670 | 78,913 | 82,680 |
| of which: Impaired loans | 4,845 | 4,401 | 5,088 |
| Total | 89,670 | 78,913 | 82,680 |
The loan to value (LTV) ratio of the above portfolio is as follows:
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Total risk over the amount of the last valuation available (Loan To Value-LTV) | |||||
| December 2015 LTV Breakdown of secured loans to households for the purchase of a home (Business in Spain) |
Less than or equal to 40% | Over 40% but less than or equal to 60% | Over 60% but less than or equal to 80% | Over 80% but less than or equal to 100% | Over 100% | Total |
| Gross amount | 18,294 | 27,032 | 30,952 | 7,489 | 5,903 | 89,670 |
| of which: Impaired loans | 202 | 392 | 771 | 991 | 2,489 | 4,845 |
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Total risk over the amount of the last valuation available (Loan To Value-LTV) | |||||
| December 2014 LTV Breakdown of secured loans to households for the purchase of a home (Business in Spain) |
Less than or equal to 40% | Over 40% but less than or equal to 60% | Over 60% but less than or equal to 80% | Over 80% but less than or equal to 100% | Over 100% | Total |
| Gross amount | 14,593 | 22,424 | 29,060 | 7,548 | 5,288 | 78,913 |
| of which: Impaired loans | 199 | 276 | 533 | 843 | 2,550 | 4,401 |
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Total risk over the amount of the last valuation available (Loan To Value-LTV) | |||||
| December 2013 LTV Breakdown of secured loans to households for the purchase of a home (Business in Spain) |
Less than or equal to 40% | Over 40% but less than or equal to 60% | Over 60% but less than or equal to 80% | Over 80% but less than or equal to 100% | Over 100% | Total |
| Importe bruto | 14,481 | 22,558 | 31,767 | 8,975 | 4,899 | 82,680 |
| Del que: Dudosos | 262 | 339 | 618 | 1,011 | 2,858 | 5,088 |
Outstanding home mortgage loans as of December 31, 2015, 2014 and 2013 had an average LTV of 46%, 47% and 50%, respectively.
As of December 31, 2015, and the Group also had a balance of €1,480 million in non-mortgage loans for the purchase of housing (of which €24 million, respectively, were NPA).
The breakdown of foreclosed, acquired, purchased or exchanged assets from debt from loans relating to business in Spain, as well as the holdings and financing to non-consolidated entities holding such assets is as follows:
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2015 | |||
| Information about Assets Received in Payment of Debts (Business in Spain) | Gross Value |
Provisions | Of wich: Valuation adjustments on impaired assets, at the time of foreclosure | Carrying Amount |
| Real estate assets from loans to the construction and real estate development sectors in Spain. | 8,938 | 5,364 | 2,838 | 3,574 |
| Terminated buildings | 2,981 | 1,498 | 737 | 1,483 |
| Homes | 1,606 | 767 | 388 | 839 |
| Other | 1,375 | 731 | 349 | 644 |
| Buildings under construction | 745 | 422 | 204 | 323 |
| Homes | 714 | 400 | 191 | 314 |
| Other | 31 | 22 | 13 | 9 |
| Land | 5,212 | 3,444 | 1,897 | 1,768 |
| Urbanized land | 3,632 | 2,404 | 1,366 | 1,228 |
| Rest of land | 1,580 | 1,040 | 531 | 540 |
| Real estate assets from mortgage financing for households for the purchase of a home | 4,937 | 2,687 | 1,143 | 2,250 |
| Rest of foreclosed real estate assets | 1,368 | 678 | 148 | 690 |
| Equity instruments, investments and financing to non-consolidated companies holding said assets | 895 | 532 | 433 | 363 |
| Total | 16,138 | 9,261 | 4,562 | 6,877 |
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2014 | |||
| Information about Assets Received in Payment of Debts (Business in Spain) | Gross Value |
Provisions | Of wich: Valuation adjustments on impaired assets, at the time of foreclosure | Carrying Amount |
| Real estate assets from loans to the construction and real estate development sectors in Spain. | 8,629 | 4,901 | 2,575 | 3,728 |
| Terminated buildings | 2,751 | 1,248 | 611 | 1,503 |
| Homes | 1,705 | 780 | 382 | 925 |
| Other | 1,046 | 468 | 229 | 578 |
| Buildings under construction | 830 | 448 | 194 | 382 |
| Homes | 806 | 433 | 191 | 373 |
| Other | 24 | 15 | 3 | 9 |
| Land | 5,048 | 3,205 | 1,770 | 1,843 |
| Urbanized land | 3,357 | 2,142 | 1,236 | 1,215 |
| Rest of land | 1,691 | 1,063 | 533 | 628 |
| Real estate assets from mortgage financing for households for the purchase of a home | 3,250 | 1,452 | 489 | 1,798 |
| Rest of foreclosed real estate assets | 1,137 | 532 | 105 | 605 |
| Equity instruments, investments and financing to non-consolidated companies holding said assets | 737 | 492 | 393 | 245 |
| Total | 13,753 | 7,377 | 3,562 | 6,376 |
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Millions of Euros | ||
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2013 | ||
| Information about assets received in payment of debts (Business in Spain) |
Gross Value |
Provisions | Carrying Amount |
| Real estate assets from loans to the construction and real estate development sectors in Spain. | 9,173 | 5,088 | 4,085 |
| Finished buildings | 3,038 | 1,379 | 1,659 |
| Homes | 2,059 | 925 | 1,134 |
| Other | 979 | 454 | 525 |
| Buildings under construction | 845 | 439 | 406 |
| Homes | 819 | 423 | 396 |
| Other | 26 | 16 | 10 |
| Land | 5,290 | 3,270 | 2,020 |
| Urbanized land | 3,517 | 2,198 | 1,319 |
| Rest of land | 1,773 | 1,072 | 701 |
| Real estate assets from mortgage financing for households for the purchase of a home | 2,874 | 1,164 | 1,710 |
| Rest of foreclosed real estate assets | 918 | 411 | 507 |
| Equity instruments, investments and financing to non-consolidated companies holding said assets | 730 | 408 | 322 |
| Total | 13,695 | 7,071 | 6,624 |
As of December 31, 2015, 2014 and 2013, the gross book value of the Group’s real-estate assets from corporate financing of real-estate construction and development was €8,938, €8,629 and €8,894 million, respectively, with an average coverage ratio of 60.0%, 56.8% and 55.4% respectively.
The gross book value of real-estate assets from mortgage lending to households for home purchase as of December 31, 2015, 2014 and 2013, amounted to €4,937, €3,250 and €2,874 million, respectively, with an average coverage ratio of 54.4%, 44.7% and 40.5% respectively.
As of December 31, 2015, 2014 and 2013, the gross book value of the BBVA Group’s total real-estate assets (business in Spain), including other real-estate assets received as debt payment, was €15,243, €13,016 and €12,965 million, respectively. The coverage ratio was 57.3%, 52.9%, and 51.4% respectively.