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The BIS ratio stands at 12.7%, against 12.2% in June 2005 and 12.1% in September 2004. After increasing 5.3% in the quarter, core capital comes to €12.1 billion and represents 5.9% of risk-weighted assets, compared to 5.8% at 30-Jun-05. In the third quarter the bank issued €550m of preference securities to European institutional investors. As a result, Tier I rose to €16.21 billion at 30-Sep-05, which is 7.9% of risk-weighted assets (against 7.7% in the second quarter). The ratio of preference shares to core equity (determined in accordance with BIS rules) is 25.4%. Other eligible capital mainly includes subordinated debt and revaluation reserves. It stands at €9.94 billion and thus Tier II is 4.8%, compared to 4.6% at 30-Jun-05. This increase is due to higher valuation adjustments derived from an increase in the latent capital gains in the portfolio of companies available for sale as well as the issue of 500 million US dollars of “notas de capital” by BBVA Bancomer with some characteristics that in accordance with BIS rules allow for their consideration as Tier II in the capital base of the BBVA group. On 30-Sep-05 the group ended the share buyback programme announced on 29-Mar-05 in association with BNL takeover bid. This programme was limited to 3.5% of capital stock and a purchase price not higher than €14.50 per share. At the end of the programme the group holds no shares associated with the programme. Therefore in accordance CE Regulation 2273/2003 no shares will be amortised in the form described in the programme conditions. Ratings In the third quarter, BBVA’s ratings by the various agencies remained unchanged.
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