January-December 2012

Exposure to the real estate sector in Spain

BBVA’s exposure to the real estate sector in Spain is ring-fenced and fell by €481m over the quarter. The most relevant aspect, as in previous quarters, continues to be the increase in provisions to cover the additional impairment in the value of assets associated with the real estate industry owing to the country’s worsening macroeconomic situation. Following the effort made in loan-loss provisions, at the close of 2012 the Group complies with the requirements imposed by Royal Decree-Laws 02/2012 and 18/2012.

As a result of the above, there has been an increase in the real estate coverage ratio by 6 percentage points over the quarter to 43%.

Coverage of real estate exposure in Spain

(Million of euros as of 31-Dic-12)

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Risk amount Provision % Coverage over risk
NPL + Substandard 8,906 3,854 43
NPL 6,814 3,123 46
Substandard 2,092 731 35
Foreclosed real estate and other assets 12,059 6,186 51
From real estate developers 8,894 4,893 55
From Dwellings 2,512 1,020 41
Other 653 273 42
Subtotal 20,965 10,040 48
Performing 6,452 1,788 28
With collateral 5,839

Finished properties 3,573

Construction in progress 854

Land 1,412

Without collateral and other 613

Real estate exposure 27,417 11,828 43

Real estate exposure and coverage in Spain

(Million euros)