Expected losses

Expected losses in the non-doubtful loan book expressed in attributed terms and adjusted to the economic cycle average, stood at €2,400 million euros at the close of December 2009, an increase of 8.2% compared with the same date in 2008.

The main portfolios of the BBVA Group experience use of expected loss and economic capital, as shown in the accompanying table.

The use of attributable expected losses by areas of business as of December 31, 2009, was as follows:

• Spain and Portugal, with an exposure which accounts for 48.0% of the total, had an expected loss to exposure ratio of 0.40%.
• WB&AM accounted for 23.7% of exposure, with a ratio of expected loss to exposure of 0.10%.
• Mexico had a weight of 12.6% and a ratio of 1.03%.
• The United States had a weight of 9.2% and a ratio of 0.65%.
• South America had a weight of 6.5% and an expected loss ratio of 1.05%.

Risk statistics for the BBVA Group’s main portfolios not in default

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	Exposure²	Expected loss		Economic capital
Portfolios¹	Million euros	Million euros	%	Million euros	%
Retail mortgage
Spain	75,188	124	0.17	1,192	1.59
Mexico	6,885	138	2.01	381	5.53
Others	7,122	35	0.49	198	2.79
Total	89,195	297	0.33	1,772	1.99
Other retail portfolios
Spain	17,529	234	1.34	875	4.99
Mexico	9,519	328	3.44	602	6.32
Others	9,696	280	2.88	597	6.16
Total	36,744	842	2.29	2,074	5.64
Companies and institutions
Spain	154,833	423	0.27	4,643	3.00
Mexico	15,166	160	1.06	544	3.58
Others	84,471	323	0.38	1,932	2.29
Total	254,470	906	0.36	7,119	2.80

¹ Excludes securitized loans. ² Includes off-balance-sheet positions to which the corresponding conversion factors are applied.

Attributable expected losses (balances not in default) by business area

(Percentage over exposure. 31-12-09)