1. May 2006 13th XBRL International Conference XBRL and its uses in a financial institution such as BBVA

2. - 2 - May 2006 13th XBRL International Conference Contents 1.Introduction 2.Scope of XBRL Implementation I.Financial Institutions II.BBVA 3.Summing Up

3. - 3 - May 2006 13th XBRL International Conference OBJECTIVES 1. Introduction 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. The main objectives to be achieved in this session are:

4. - 4 - May 2006 13th XBRL International Conference 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). 1. Introduction

5. - 5 - May 2006 13th XBRL International Conference BBVA – INTERNATIONAL CONTEXT Japan China (Pekin, Shangai, Hong Kong) Iran 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 1. Introduction

6. - 6 - May 2006 13th XBRL International Conference 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 Changes in Legislation Change of Information Management Model 1. Introduction

7. - 7 - May 2006 13th XBRL International Conference NEW CORPORATE REPORTING REQUIREMENTS Transparency Accuracy Homogeneity Increased availability Efficiency Itemization Comparison among competitors Support for decision-making 1. Introduction The information requested by the “stakeholders” involves new reporting requirements:

8. - 8 - May 2006 13th XBRL International Conference 1. Introduction GREAT NUMBER OF INFORMATION SENT Global Scope (International) International Stock Market Local Scope (National/International) Regulatory Organizations National Stock Market Self- Goverment Communities External Audit Regulatory OrganizationsAssociations- Other External Agents StatisticalFinancialCreditOthers City Councils Consulates

9. - 9 - May 2006 13th XBRL International Conference Segmentation Conditions Statistical data Accounting At any Organization level Daily Extended accounting scheme Management mechanism (transfer rates, synergies.) Asset Risk and Expected Return Customers Reporting Contract/Operations Operating Level Daily, monthly Movements, positions, attributes, future flows… Operating Level Financial Capital Expected Losses Exposure MAIN REPORTING COMPONENTS 1. Introduction

10. - 10 - May 2006 13th XBRL International Conference CONTENT OF INFORMATION OUTPUTS The kind of information periodically delivered to Regulators can be classified in: INFORMATIVE BANKING OPERATION Balance P&L Relevant facts Signed Annual Report Companies House Reports CIRBE ASNEF LEGAL STATISTICAL TAX INE Regional Communities Non Residents Operations - PNR Normalized files External audit IVA, IRPF e IS Tax models. MANAGEMENT 1. Introduction

11. - 11 - May 2006 13th XBRL International Conference DEFICIENCIES IN CORPORATE REPORTING The main corporate reporting inefficiencies noticed in financial entities, due to the new information management environment: Information Retrieval. Working, Analysis. Publication. Information Validation. 1 Item – N Requests – N Sources Validation of heavy processes N Presentation Formats Same information in N presentation formats to N Organizations. 1. Introduction

12. - 12 - May 2006 13th XBRL International Conference XBRL CONTRIBUTION IN VIEW OF NEW REQUIREMENTS Due to the new management and information reporting environment: Integrity Reduction of publication cycles Quality Standardization 1. Introduction Optimal Working

13. - 13 - May 2006 13th XBRL International Conference 1.Introduction 2.Scope of XBRL Implementation I.Financial Institutions II.BBVA 3.Summing Up Contents

14. - 14 - May 2006 13th XBRL International Conference XBRL AND FINANCIAL ENTITIES Financial Entity Clients Financial Organizations Local / International Regulators Software and Technology Vendors Information Administrators InvestorsVendors Financial / Market Analysts 2. Scope of XBRL Applications – Financial Entities

15. - 15 - May 2006 13th XBRL International Conference VARIETY OF FINANCIAL INFORMATION INTERCHANGE PROCESSES Administrative Information Retrieval Processes Retrieval of Market Information International Client Management Competitors, Industry, Capital Markets and Subsidiary Analysis Processes Control Processes and Internal Audit Risk Management and Analysis Information publication Reporting to Official Organizations 2. Scope of XBRL Applications – Financial Entities

16. - 16 - May 2006 13th XBRL International Conference 1.Introduction 2.Scope of XBRL Implementation I.Financial Institutions II.BBVA 3.Summing Up Contents

17. - 17 - May 2006 13th XBRL International Conference XBRL INITIATIVES LAUNCHED IN BBVA Retrieval of Market Information SIIF Project – Bank of Spain CNMV Project - IPP COREP (*) Financial information delivery to SEC (*) Release in BBVA Web (*) Competitor AnalysisCapital Market AnalysisIndustry Analysis Risk Analysis and Management (*) In Process 2. Scope of XBRL Applications - BBVA

18. - 18 - May 2006 13th XBRL International Conference COREP - XBRL Contract Guarantees Ratings, Scorings Operational Risk Clients’ Condition Sources Calculation Engine Internal Advanced Standard Consolidated Information Internal Working XBRL XBRL Framework XBRL Repository COREPTaxonomy Internal BasicBBVA Standard Consolidation 2. Scope of XBRL Applications - BBVA

19. - 19 - May 2006 13th XBRL International Conference 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. Suppliers XBRL Internal/External Initiatives Regulators User Departments Systems Technology External Agents BBVA Areas - SIIF Project - CNMV Project - Capital Laundering - COREP - Others XBRL Project Office Negotiator between agents Taxonomy ExpertsData Dictionary Reporting BBVAXBRL – BBVA Knowledge

20. - 20 - May 2006 13th XBRL International Conference 1.Introduction 2.Scope of XBRL Implementation I.Financial Institutions II.BBVA 3.Summing Up Contents

21. - 21 - May 2006 13th XBRL International Conference 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. Keys for Success t 3. Summing Up Current Situation

22. - 22 - May 2006 13th XBRL International Conference 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. 3. Summing Up

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