June 11, 2008 07:11 ET

Main highlights from BBVA´s presentation on the 2nd phase of Citic Group and BBVA agreement

MADRID, SPAIN--(Marketwire - June 11, 2008) -

Today BBVA´s CFO Manuel Gonzalez Cid explained the second phase on its agreement with China Citic Bank , webcast available on BBVA´s IR website

BBVA to increase its stake in CNCB and CIFH to approximately 10% and 30 % respectively. Completion of the transactions is expected by 4Q08.

Total required funds of approximately EUR 800 million, of which approximately EUR 600 million are related to the capital investment, and EUR 200 million will be used to support current and future financial needs of CIFH.

CNCB, becomes a strategic investment in a core business. Subsequently, it will be consolidated by the equity method.

Financial Impacts to BBVA

Impact on EPS 2009e + 1.21% 2010e + 1.73%

Impact on ROI 2009e + 17.9% 2010e + 22.1%

BBVA will fund the transaction with available resources no additional capital required.

Total impact on Tier I ratio of -31 b.p. including both phase II and switching phase I to equity method.

BBVA will maintain its call option to acquire an additional 5% stake in CNCB for two years from the completion of the agreement

Contact : BBVA Investor Relations + 34 91 374 62 01

This information is provided by HUGIN

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