In the numerator, the net income attributed to the parent company is increased by the amount of the annual coupon of the subordinated convertible bonds.Since the conversion of this bond issue is mandatory on the date of final maturity, in accordance with the IAS 33 criteria, the following adjustments must be applied to both the calculation of the diluted earnings per share as well as the basic earnings per share: On December 30, 2011, the Bank issued mandatory subordinate bonds convertible into ordinary newly issued BBVA shares amounting to в‚¬3,430 million (see Note 23.4).The basic and diluted earnings per share for 20 were recalculated on this basis. This corrective factor is the result of dividing the fair value per share immediately before the exercise of rights by the theoretical ex-rights fair value per share. According to IAS 33, when calculating the basic and diluted earnings per share, all the years prior to the exercise of the rights must be taken into account, and a corrective factor applied to the denominator (the weighted average number of shares outstanding) only in the case of capital increases other than those for conversion of securities into shares. The Bank carried out several share capital increases in 2012, 20 (see Note 27).The following transactions were carried out in 2012, 20 with an impact on the calculation of basic and diluted earnings per share: Diluted earnings per share are calculated by using a method similar to that used to calculate basic earnings per share the weighted average number of shares outstanding, and the net income attributed to the parent company, if appropriate, is adjusted to take into account the potential dilutive effect of certain financial instruments that could generate the issue of new Bank shares (share option commitments with employees, warrants on parent company shares, convertible debt instruments, etc.).Basic earnings per share are determined by dividing the вЂњNet income attributed to Parent CompanyвЂќ by the weighted average number of shares outstanding throughout the year (i.e., excluding the average number of treasury shares held over the year).According to the criteria established by IAS 33:

Earnings per share formula