29. Reserves
The breakdown of the balance under this heading in the accompanying consolidated balance sheets is as follows:
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| Reserves. Breakdown by concepts | Notes | Millions of Euros | ||
|---|---|---|---|---|
| 2012 | 2011 | 2010 | ||
| Legal reserve | 29.1 | 481 | 440 | 367 |
| Restricted reserve for retired capital | 29.2 | 387 | 495 | 546 |
| Reserves for balance revaluations |
|
27 | 28 | 32 |
| Voluntary reserves |
|
6,154 | 5,854 | 4,169 |
| Total reserves holding company (*) |
|
7,049 | 6,817 | 5,114 |
| Consolidation reserves attributed to the Bank and dependents consolidated companies. |
|
12,623 | 11,123 | 9,246 |
| Total Reserves |
|
19,672 | 17,940 | 14,360 |
29.1 Legal reserve
Under the amended Corporations Act, 10% of any profit made each year must be transferred to the legal reserve. These provisions must be made until the legal reserve reaches 20% of the share capital. This limit is reached by BBVA as of December 31, 2012, once the proposal for the allocation of the 2012 earnings is approved (see Note 4).
The legal reserve can be used to increase the common stock provided that the remaining reserve balance does not fall below 10% of the increased capital. While it does not exceed 20% of the common stock, it can only be allocated to offset losses exclusively in the case that there are not sufficient reserves available.
29.2 Restricted reserves
As of December 31, 2012, 2011 and 2010, the Bank’s restricted reserves are as follows:
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| Restricted Reserves | Millions of Euros | ||
|---|---|---|---|
| 2012 | 2011 | 2010 | |
| Restricted reserve for retired capital | 88 | 88 | 88 |
| Restricted reserve for Parent Company shares and loans for those shares | 297 | 405 | 456 |
| Restricted reserve for redenomination of capital in euros | 2 | 2 | 2 |
| Total | 387 | 495 | 546 |
The restricted reserve for retired capital originated in the reduction of the nominal par value of the BBVA shares made in April 2000.
The most significant heading corresponds to restricted reserves related to the amount of shares issued by the Bank in its possession at each date, as well as the amount of customer loans outstanding at those dates that were granted for the purchase of, or are secured by, the Bank’s shares.
Finally, pursuant to Law 46/1998 on the introduction of the euro, a restricted reserve is recognized as a result of the rounding effect of the redenomination of the Bank’s common stock in euros.
Furthermore, in the individual financial statements for subsidiaries as of December 31, 2012, 2011 and 2010, restricted reserves for a total of €2,427 million, €2,940 million and €2,612 million, respectively, are taken into consideration.
29.3 Reserves (losses) by entity
The breakdown, by company or corporate group, under the heading “Reserves” in the accompanying consolidated balance sheets is as follows:
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| Reserves Assigned to the Consolidation Process | Millions of Euros | ||
|---|---|---|---|
| 2012 | 2011 | 2010 | |
| Accumulated reserves (losses) |
|
|
|
| Holding Company(*) | 10,110 | 7,711 | 4,760 |
| Grupo BBVA Bancomer | 5,589 | 5,070 | 4,306 |
| BBVA Seguros, S.A. | 1,447 | 1,422 | 1,275 |
| BBVA Luxinvest, S.A. | 1,118 | 677 | 1,356 |
| Grupo BBVA Banco Provincial | 906 | 711 | 593 |
| Corporacion General Financiera, S.A. | 873 | 670 | 540 |
| Grupo BBVA Chile | 438 | 540 | 141 |
| Anida Grupo Inmobiliario, S.L. | 375 | 369 | 377 |
| Cidessa Uno, S.L. | 294 | 269 | 249 |
| BBVA Suiza, S.A. | 256 | 217 | 183 |
| Compañía de Cartera e Inversiones, S.A. | 230 | 1,231 | 1,231 |
| Grupo BBVA Continental | 177 | 178 | 147 |
| BBVA Panamá, S.A. | 127 | (1) | - |
| Bilbao Vizcaya Holding, S.A. | 79 | (38) | (173) |
| Banco Industrial de Bilbao, S.A. | 65 | (92) | (113) |
| Grupo Garanti Turkiye Bankasi | 51 | 157 | 150 |
| Grupo BBVA Colombia | 35 | 122 | 96 |
| Grupo BBVA Banco Francés | 30 | 432 | 1,016 |
| Grupo BBVA Puerto Rico | (22) | 173 | 144 |
| BBVA Ireland Public Limited Company | (164) | (84) | (87) |
| Compañía Chilena de Inversiones, S.L. | (177) | (188) | (207) |
| Grupo BBVA Portugal | (180) | (181) | (181) |
| Participaciones Arenal, S.L. | (233) | (194) | (116) |
| BBVA Propiedad S.A. | (850) | (816) | (424) |
| Anida Operaciones Singulares, S.L. | (1,652) | (852) | (960) |
| Rest | (74) | 77 | 2 |
| Subtotal | 18,848 | 17,580 | 14,305 |
| Reserves (losses) of entities accounted for using the equity method: |
|
|
|
| Grupo CITIC | 859 | 431 | 93 |
| Tubos Reunidos, S.A. | 50 | 51 | 52 |
| Occidental Hoteles Management, S.L. | (91) | (72) | (44) |
| Rest | 6 | (50) | (46) |
| Subtotal | 824 | 360 | 55 |
| Total Reserves | 19,672 | 17,940 | 14,361 |
For the purpose of allocating the reserves and accumulated losses to the consolidated companies and to the parent company, the transfers of reserves arising from the dividends paid and transactions between these companies are taken into account in the period in which they took place.