INTERVIEW-CEO Says BBVA Has No U.S. Subprime Exposure

WASHINGTON (Reuters) - Spanish bank BBVA (BBVA.MC) has no exposure to the types of toxic instruments such as subprime mortgages or SIVs that has cost rivals billions, Chief Executive Francisco Gonzalez told Reuters on Wednesday.

"We are not involved, neither in the subprime crisis, or SIVs or conduits. It has nothing to do with our activities in the U.S or anywhere else in the world," Gonzalez told Reuters in an interview.

Investors have pressed banks to provide more transparency in recent months to their possible exposure to the volatile instruments such as SIVs, which are structured investment vehicles, and U.S. subprime mortgages, which have seen soaring default rates.

Gonzalez said BBVA had no plans for any more U.S. banking takeovers, nor did the group plan to become more aggressive on the European front after the takeover of Dutch banking group ABN AMRO AAH.AS.

Some analysts have speculated that BBVA would be thrust onto the European merger stage -- either as predator or prey --after Spanish rival Santander (SAN.MC) took part in the hostile takeover of ABN AMRO this year.

"Size is one part of it but the most important part is to have the right model," Gonzalez said on the sidelines of a event in Washington meant to profile BBVA's growing U.S. footprint ahead of a G7 meeting of finance ministers and central bankers.

Earlier on Wednesday, BBVA said it expected its U.S. business to provide 10 percent of group profits within one year.

Turning to home, Gonzalez said the group was well-positioned for any downturn in the Spanish real estate market, which has enjoyed several years of rapid growth but has seen price declines of late.

"Our portfolio is first class. We don't have any exposure to second residences and those things. And in terms of our exposure to the Spanish mortgage market, it's very very sane. It's not similar to the states," he said.

(Reporting by Thomas Atkins and John Poirier)