[Financial reporting and results]

Risk management


Enhanced asset quality in 2014 

  • NPLs decreased by €5,255 million in 2014.
  • Decrease in new NPLs (-40% vs 2013)1.
  • Steady reduction in the NPL ratio to 9.7% (-2 percentage points in 2014), dropping across all business segments. Stripping out the impact of the real estate developer segment, the NPL ratio was 6.4% (down 40 bp for the year).

Relentless commercial drive in managing foreclosed real estate assets

  • Net available-for-sale foreclosed assets amounted to €6,719 million. In addition, real estate assets held for lease stood at €2,771 million, net of provisions. The rental property portfolio occupancy ratio was 87%.
  • In 2014, sales and rentals of foreclosed properties totalled €2,512 million, up 15.3% on the same period of the prior year.

Conservative coverage policies 

  • Loan-loss provisions totalled €11,120 million, with a solid coverage ratio of 55%.
  • The coverage ratio for available-for-sale foreclosed real-estate assets stood at 55%.

(1) In 2013, excludes the impact of applying new classification criteria for refinanced transactions and Banco de Valencia.