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17. Investments in entities accounted for using the equity method

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

Investments in Entities Accounted for Using the Equity Method
Millions of Euros
2011 2010 2009
Associate entities 5,567 4,247 2,614
Jointly controlled entities 276 300 308
Total 5,843 4,547 2,922

17.1 Associates

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

Investments in Entities Accounted for Using the Equity Method Millions of Euros
2011 2010 2009
Grupo CITIC (*) 5,387 4,022 2,296
Tubos Reunidos, S.A. (**) 51 51 52
BBVA Elcano Empresarial II, S.C.R.R.S., S.A. 23 37 49
BBVA Elcano Empresarial, S.C.R.R.S., S.A. 23 37 49
Occidental Hoteles Management, S.L. (***) - - 84
Rest of associate 83 100 84
Total 5,567 4,247 2,614
(*) The goodwil amounted to €1,696 million as of December 31 2011 (**) Company that quoted in Madrid's stock exchange market. (***) Since November 2010 the company had been accounted from associated to jointly controlled entities.

Appendix IV shows the details of the associates as of December 31, 2011.

The following is a summary of the gross changes in 2011, 2010 and 2009 under this heading in the accompanying consolidated balance sheets:

Associates Enriries. Changes in the Year Breakdown of Goodwill Millions of Euros
2011 2010 2009
Balance at the beginning 4,247 2,614 894
Acquisitions and capital increases (*) 425 1,210 53
Disposals (20) (9) (2)
Transfers and others (**) 915 432 1,669
Balance at the end 5,567 4,247 2,614
Of which:


Goodwill 1,700 1,574 844
CITIC Group 1,696 1,570 841
Rest 4 4 3
(*) The change of 2011 correspond basically to the capital increase on CNCB at which the Group attended to maintain their percentage of participation, with a payment of €425 million. The change of 2010 correspond basically to the acquisition of 4.93% of CNCB formalized in April 2010. (**) The changes of 2011 and 2010 correspond principally to the good and recurrent results in CNCB together with the positive evolution of the exchange rates. The change of 2009 correspond to the reclassification from the heading "Available-for-sale financial assets” of CNCB.
Agreement with the CITIC Group -

The BBVA Group’s investment in the CITIC Group includes the investment in Citic International Financial Holdings Limited (“CIFH”) and China National Citic Bank (“CNCB”). As of December 31, 2011, BBVA had a 29.68% holding in CIFH and 15% in CNCB.

As of December 31, 2011, the BBVA Group maintained several agreements with the CITIC Group that were strategic for both: for BBVA, as financial activity could be developed in continental China through this alliance and, for CNCB, as it allows CITIC to develop its international business. The BBVA Group has the status of “sole strategic investor” in CNCB.

17.2 Investments in jointly-controlled entities

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

Jointly Controlled Entities Millions of Euros
2011 2010 2009
Corporación IBV Participaciones Empresariales S.A. 78 71 157
Occidental Hoteles Management, S.L. 68 88 -
Fideicomiso F/403853-5 BBVA Bancomer SºS ZIBAT 20 22 20
I+D Mexico, S.A. 16 22 15
Fideicomiso Hares BBVA Bancomer F/47997-2 (*) - - 15
Fideicomiso F/70413 Mirasierra 12 14 12
Fideicomiso F/402770-2 Alamar 10 11 10
Fideicomiso F/403112-6 Dos lagos 10 11 9
Altitude Software SGPS, S.A. 10 10 9
Las Pedrazas Golf, S.L. 7 10 -
Rest 45 41 61
Total 276 300 308
Of which  

Goodwill 9 9 5
(*) Since august 2010 the company had been accounted from jointly controlled entities to fully consolidated subsidiary.

If the jointly-controlled entities accounted for using equity method had been accounted for by the proportionate method, the effect on the Group's main consolidated figures as of December 31, 2011, 2010 and 2009 would have been as follows:

Jointly Controlled Entities. Effect on the Group's main figures Millions of Euros
2011 2010 2009
Assets 1,025 1,062 863
Liabilities 703 313 469
Net operating income 28 15 (12)

Details of the jointly-controlled entities consolidated using the equity method as of December 31, 2011 are shown in Appendix IV.

17.3 Associates and jointly-controlled entities accounted for by the equity method

The following table provides relevant information of the balance sheet and income statement of associates and jointly-controlled entities accounted for using the equity method as of December 31, 2011, 2010 and 2009, respectively (see Appendix IV).

Associates and Jointly Controlles Entities Millions of Euros
2011 (*) 2010 (*) 2009 (*)
Financial Main figures Associates Jointly Controlled Entities Associates Jointly Controlled Entities Associates Jointly Controlled Entities
Current Assets 28,789 249 19,979 279 10,611 347
Non-current Assets 18,598 694 17,911 780 8,463 514
Current Liabilities 39,326 152 32,314 179 10,356 108
Non-current Liabilities 8,061 790 5,576 879 8,719 754
Net sales 1,121 158 855 168 605 84
Operating Income 575 28 450 15 244 (12)
Net Income 424 (5) 339 1 166 (14)
(*) 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.

17.4 Notifications about acquisition of holdings

Appendix V provides notifications on acquisitions and disposals of holdings in associates or jointly-controlled entities, in compliance with Article 155 of the Corporations Act and Article 53 of the Securities Market Act 24/1988.

17.5 Impairment

No impairment losses on the goodwill of jointly-controlled entities and associated were recognized in 2011 or 2010.

In 2009, €3 million in impairment losses on the goodwill of jointly-controlled entities were recognized, of which most are related to Econta Gestión Integral, S.L.

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