January-September 2013


Economic capital

Economic risk capital (ERC) consumption at the close of the third quarter amounted to €32,901m, a 5.1% decline over the quarter.

As is to be expected from BBVA’s profile, the largest allocation to ERC (54.9%) relates to credit risk on portfolios originated in the Group’s branch network from its own customer base. A 5.2% decline was reported in the quarter, concentrated mainly in Spain.

Equity risk, in other words the portfolio of holdings in industrial and financial companies, the stake in CNCB, and consumption of economic capital from goodwill, has increased its proportion in relation to total risks to 20.6%, despite its decline (down 1.8%) over the quarter.

Structural balance-sheet risk, originated from the management of structural interest-rate risk and exchange-rate risk, accounts for 7.3% of ERC, and has declined 13.8% over the same period.

Operational risk decreased by 1.7%, with a relative weight of 6.5%, while fixed-asset risk declined by 6.1% and accounts for 6.9% of total ERC consumption.

Lastly, market risk, which is of less importance given the nature of the business and BBVA’s policy of minimal proprietary trading, maintained its relative weight at 2.8%.