Contents

2. Contents • Introduction • Scope of XBRL Implementation • Financial Institutions • BBVA • Summing Up

3. 1. Introduction OBJECTIVES • The main objectives to be achieved in this session are: • Introduction of BBVA. • New international framework of corporate reporting. • XBRL creating value in the new framework. • New opportunities to apply XBRL in Financial Organizations. • Keys for success in the development of XBRL initiatives.

4. 1. Introduction BBVA – GENERAL INFORMATION • First Bank in efficiency in the Eurozone. • Efficiency Ratio : 45.9% (1Q 2006). • ROE: 34.1% (1Q 2006). • 7,410 Offices. • 94,681 Employees. • 34 million euros invested in Training. • Number of Clients: 38.4 million • 70% Client Satisfaction. • Developing the XBRL Project (BBVA joins the Spanish XBRL Association: September 2004).

5. 1. Introduction BBVA – INTERNATIONAL CONTEXT • Spain • Portugal • Andorra • France • England • Belgium • Switzerland • Germany • Italy • Russia • USA (New York, Miami) • Mexico • Cuba • Puerto Rico • Panama • Venezuela • Colombia • Peru • Chile • Argentina • Uruguay • Paraguay • Brazil • Japan • China (Pekin, Shangai, Hong Kong) • Iran

6. Changes in Legislation Change of Information Management Model 1. Introduction EVOLUTION OF DEMAND FOR INFORMATION • Stakeholders’ demand for more information has been evident in the last few years and has been caused mainly by: Outstanding Global Events

7. Transparency • Accuracy • Homogeneity • Increased availability • Efficiency • Itemization • Comparison among competitors • Support for decision-making 1. Introduction NEW CORPORATE REPORTING REQUIREMENTS • The information requested by the “stakeholders” involves new reporting requirements:

8. International Stock Market National Stock Market 1. Introduction GREAT NUMBER OF INFORMATION SENT Global Scope (International) Regulatory Organizations Associations- Other External Agents Local Scope (National/International) Regulatory Organizations Associations- Other External Agents Financial Credit Statistical Others Self-Goverment Communities External Audit City Councils Consulates

9. Contract/Operations Accounting • Operating Level • Daily, monthly • Movements, positions, attributes, future flows… • At any Organization level • Daily • Extended accounting scheme • Management mechanism (transfer rates, synergies.) 1. Introduction MAIN REPORTING COMPONENTS Reporting Asset Risk and Expected Return Customers • Operating Level • Financial Capital • Expected Losses • Exposure • Segmentation • Conditions • Statistical data

10. 1. Introduction CONTENT OF INFORMATION OUTPUTS • The kind of information periodically delivered to Regulators can be classified in: INFORMATIVE STATISTICAL • Balance • P&L • Relevant facts • INE • Regional Communities • Non Residents Operations - PNR LEGAL MANAGEMENT • Signed Annual Report • Companies House Reports • Normalized files • External audit BANKING OPERATION TAX • IVA, IRPF e IS Tax models. • CIRBE • ASNEF

11. 1. Introduction DEFICIENCIES IN CORPORATE REPORTING • The main corporate reporting inefficiencies noticed in financial entities, due to the new information management environment: Information Retrieval. 1 Item – N Requests – N Sources Information Validation. Validation of heavy processes Working, Analysis. N Presentation Formats Publication. Same information in N presentation formats to N Organizations.

12. 1. Introduction XBRL CONTRIBUTION IN VIEW OF NEW REQUIREMENTS • Due to the new management and information reporting environment: Integrity Quality Optimal Working Reduction of publication cycles Standardization

13. Contents • Introduction • Scope of XBRL Implementation • Financial Institutions • BBVA • Summing Up

14. Financial / Market Analysts Clients Financial Organizations Investors Vendors Financial Entity Local / International Regulators Information Administrators Software and Technology Vendors 2. Scope of XBRL Applications – Financial Entities XBRL AND FINANCIAL ENTITIES

15. 2. Scope of XBRL Applications – Financial Entities VARIETY OF FINANCIAL INFORMATION INTERCHANGE PROCESSES Reporting to Official Organizations Administrative Information Retrieval Processes International Client Management Retrieval of Market Information Risk Management and Analysis Information publication Competitors, Industry, Capital Markets and Subsidiary Analysis Processes Control Processes and Internal Audit

16. Contents • Introduction • Scope of XBRL Implementation • Financial Institutions • BBVA • Summing Up

17. 2. Scope of XBRL Applications - BBVA XBRL INITIATIVES LAUNCHED IN BBVA SIIF Project – Bank of Spain CNMV Project - IPP Retrieval of Market Information COREP (*) Financial information delivery to SEC (*) Risk Analysis and Management Release in BBVA Web (*) Competitor Analysis Capital Market Analysis Industry Analysis (*) In Process

18. BBVA Internal Basic Standard XBRL COREP Taxonomy Internal Advanced XBRL Framework XBRL Repository Internal Working 2. Scope of XBRL Applications - BBVA COREP - XBRL Calculation Engine Sources Consolidation Contract Guarantees Clients’ Condition Consolidated Information Ratings, Scorings Operational Risk Standard

19. XBRL Project Office Negotiator between agents 2. Scope of XBRL Applications - BBVA BBVA ORGANIZATION • A XBRL Project Office has been created in order to manage and promote internal and external XBRL initiatives to develop in BBVA. External Agents BBVA Areas Regulators Technology Suppliers Systems Taxonomy Experts Data Dictionary User Departments Reporting BBVA XBRL – BBVA Knowledge XBRL Internal/External Initiatives • SIIF Project • CNMV Project • Capital Laundering • COREP • Others

20. Contents • Introduction • Scope of XBRL Implementation • Financial Institutions • BBVA • Summing Up

21. 3. Summing Up XBRL INITIATIVES – KEYS OF SUCCESS • To achieve success, XBRL initiatives require a mix of the following factors: • Publication of more information in XBRL. • Development of new XBRL tool functionalities in order to manage XBRL information. • Joint performance between Public Administration and the Private Sector. • More specifically, in the scope of financial organizations, the joint performance of all the participants in the financial system would become necessary to launch new XBRL initiatives. Current Situation t Keys for Success

22. 3. Summing Up CONCLUSIONS • XBRL is creating value in financial organizations, firstly focused on external reporting and, afterwards, on the internal one. • Nowadays, there are few organizations working in XBRL projects. The main initiatives are the result of Regulators demands. • The commitment of market agents is required for the success and consolidation of XBRL.