Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q1 2018 Earnings Presentation
35 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, May 1, 2018
Slide 1: BBVA Group First Quarter 2018
BBVA Group First Quarter 2018
Slide 2: Disclaimer
2 Disclaimer This document is only provided for information purposes and does not constitute, nor should it be interpreted as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by any of the aforementioned companies. Any decision to buy or invest in securi
Slide 3: Index
3 Index 01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights
Slide 4: 01. About BBVA
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 01. About BBVA BBVA’s global presence History of BBVA Main figures BBVA share Organizational chart Our team Presence in social media Social commitment Awards and recognitions
Slide 5: BBVA's global presence
5 BBVA’s global presence 01 About BBVA 02 Vision and aspiration 03 BBVA North America USA transformation Mexico journey 04 Results’ highlights Europe Belgium South America Cyprus Argentina France Asia - Pacific Bolivia Finland China Brazil Germany Hong Kong Chile Holland Japan Colombia Italy Singapo
Slide 6: More than 150 years of history
6 More than 150 years of history 01 About BBVA BBVA is the result of the merger of two major Spanish banking institutions 02 Vision and aspiration 03 BBVA transformation 1988 1998 1999 journey 04 Results’ highlights Banco de Bilbao Corporación Banco Bilbao Vizcaya BBVA’s global presence Bancaria de
Slide 7: More than 150 years of history
7 More than 150 years of history 01 About BBVA BBVA had significant growth since 1995 02 Vision and 1995 Banco Continental (Peru) 2006 Texas Regional Bancshares (USA) 2014 Simple (USA) aspiration Probursa (México) Forum Servicios Financieros (Chile) State National Bancshares (USA) 2015 Sale of CIFH’
Slide 8: Main figures 1Q18
8 Main figures 1Q18 01 About BBVA 02 Vision and Earnings (€m) aspiration 03 BBVA 6,096 3,117 1,340 transformation Gross income Operating income Net attributable profit journey 04 Results’ highlights Balance sheet (€m) 685,441 51,823 381,683 360,213 Total assets Total equity Loans and advances Deposi
Slide 9: BBVA share
9 BBVA share 01 About BBVA Listed on the main international BBVA’s capital ownership is 02 Vision and stock markets well diversified aspiration Shareholder breakdown Banks Non-resident 1.7% 03 BBVA Institutions transformation LONDON 56.0% 6.5% journey NEW MADRID Employees YORK 2.6% MEXICO 04 Results
Slide 10: Organizational chart
10 Organizational chart 01 About BBVA GROUP EXECUTIVE CHAIRMAN Francisco González 02 Vision and CEO Carlos Torres Vila aspiration 03 BBVA EXECUTION & PERFORMANCE NEW CORE COMPETENCIES RISK & FINANCE STRATEGY & CONTROL transformation Global Economics Regulation Corporate & Investment Banking Customer
Slide 11: Our team
11 Our team 01 About BBVA Our team is the cornerstone of our transformation, helping BBVA deliver the 02 Vision and best customer experience anywhere. We are creating a culture, environment aspiration and ways of working where the customer is at the center of everything we do 03 BBVA transformation
Slide 12: Presence in social media
12 Presence in social media 01 About BBVA BBVA’s commitment is to be where the people are, to listen and understand their needs and dreams. This is the reason that makes BBVA a cutting-edge entity in 02 Vision and aspiration social media 03 BBVA Number of followers transformation LinkedIn journey Go
Slide 13: At BBVA we create a positive impact in people's life and on society
13 At BBVA we create a positive impact in people’s life 01 About BBVA and on society 02 Vision and aspiration 03 BBVA transformation Wealth Growth and Welfare Sustainable Development Direct Contribution journey Generation Contribution Contribution to Society 04 Results’ highlights 131,856 115,021€m
Slide 14: Awards and recognitions
14 Awards and recognitions 01 About BBVA Once more, BBVA’s differentiated management has been recognized 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights #1 in 2017 Online Banking Functionality Benchmark in Europe BBVA’s global presence History of BBVA Main figures BBVA
Slide 15: 02. Vision and aspiration
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 02. Vision and aspiration Vision of the financial industry Our aspiration
Slide 16: Reshape of the financial industry
16 Reshape of the financial industry 01 About BBVA 02 Vision and Regulatory pressure and New players are Transforming technologies aspiration the impact in profitability entering the value chain and use of data 03 BBVA transformation journey Banks ROE Evolution1 (%) Big Data Cloud 04 Results’ highli
Slide 17: Shifting customers and needs
17 Shifting customers and needs 01 About BBVA 02 Vision and aspiration Shifting customers and needs 03 BBVA Banking anytime, anywhere transformation journey 04 Results’ highlights Used to digital experiences Expect proactive and personalized help in their finance management Interaction with multiple
Slide 18: Our aspiration
18 Our aspiration 01 About BBVA 02 Vision and aspiration Through an easy and Helping our customers to make convenient experience: DIY the best financial decisions 03 BBVA through digital channels or offering relevant advice transformation human interaction journey 04 Results’ highlights Strengthenin
Slide 19: 03. BBVA transformation journey
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 03. BBVA transformation journey Strategic path Progress in our transformation Our values
Slide 20: Defined strategic path
20 Defined strategic path 01 About BBVA 02 Vision and Our Purpose Six Strategic Priorities aspiration 03 BBVA To bring the age New standard in customer transformation experience journey of opportunity Digital sales 04 Results’ highlights to everyone New business models Optimize capital allocation Un
Slide 21: Outstanding trend of digital sales in all markets
21 Outstanding trend of digital sales in all markets (% of total sales YtD, # of transactions) 01 About BBVA 02 Vision and aspiration GROUP SPAIN USA (*) 03 BBVA 36.7 41.8 transformation 19.8 journey 24.1 16.1 21.5 04 Results’ highlights Mar-17 Mar-18 Mar-17 Mar-18 Mar-17 Mar-18 MEXICO TURKEY SOUTH
Slide 22: Digital sales driven by DIY and customer experience
22 Digital sales driven by DIY and customer experience 01 About BBVA 02 Vision and DIY availability Enhanced usability Digital sales aspiration contribution Digital Pension Plan Turkey (Jan– Mar) 92% 03 BBVA transformation 83% X 10 journey From To 04 Results’ highlights 1Q17 1Q18 Paper based process
Slide 23: Digital sales boost total sales and improve efficiency
23 Digital sales boost total sales and improve 01 About BBVA efficiency 02 Vision and aspiration Total sales increase Migration to more efficient channels 03 BBVA Express Personal Loan New Production Click&Pay Lines of Credit Small Business transformation USA Spain journey (Monthly average productio
Slide 24: Growth in digital and mobile customers
24 Growth in digital and mobile customers 01 About BBVA 02 Vision and Digital Customers aspiration (Mn, % penetration) +25% 03 BBVA transformation 24.0 journey 19.1 04 Results’ highlights Mar-17 Mar-18 PENETRATION 38% 45% Goal: 50% tipping point of digital Mobile Customers customers in 2018 (Mn, % p
Slide 25: Digital customers are more loyal and engaged
25 Digital customers are more loyal and engaged 01 About BBVA 02 Vision and Attrition rate (Last 12M) Significant mobile interactions aspiration increase Spain Group* Spain USA (# Customers monthly interactions) 03 BBVA transformation -57% -43% -23% journey x2 1x 04 Results’ highlights App every 2da
Slide 26: New business models
26 New business models 01 About BBVA 02 Vision and Acquisitions Internal Ventures aspiration 03 BBVA 39% stake transformation journey 04 Results’ highlights Minority stake Leveraging Investments the FinTech ecosystem to develop our value proposition Strategic path Progress in our transformation BBVA
Slide 27: Our Values
27 Our Values 01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights Customer comes first We think big We are one team We are empathetic We are ambitious I am committed We have integrity We break the mold I trust others We meet their needs We amaze our customers
Slide 28: Cultural change
28 Cultural change 01 About BBVA Zero tolerance against low 02 Vision and quality aspiration New ways of working: 03 BBVA Agile, collaborative tools, transformation journey Communities of Practice 04 Results’ highlights New headquarters Collaborative culture, entrepreneurship Leaner structures We ar
Slide 29: 04. Results' highlights
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 04. Results’ highlights Highlights Business areas 1Q18
Slide 30: 1Q18 Highlights
30 1Q18 Highlights 01 About BBVA NET ATTRIBUTABLE PROFIT Strong core revenue growth 02 Vision and +11.8% vs 1Q17 Efficiency improvement 1,340 €m aspiration Sound risk indicators 03 BBVA +22.3% constant € Strong capital position transformation journey GROSS INCOME OPERATING INCOME 04 Results’ highlig
Slide 31: Profit & Loss
31 Profit & Loss 01 About BBVA Change 1Q18/1Q17 02 Vision and aspiration BBVA Group (€m) 1Q18 % % constant Net Interest Income 4,288 -0.8 9.3 03 BBVA transformation Net Fees and Commissions 1,236 1.1 9.8 journey Net Trading Income 410 -40.6 -38.5 Other Income & Expenses 162 11.2 19.1 04 Results’ hig
Slide 32: Business areas: Spain, Non Core Real Estate, USA
32 Business areas 01 About BBVA SPAIN Banking activity 02 Vision and NET ATTRIBUTABLE PROFIT (1Q18) NPL RATIO1 Activity: Loan growth in high profitable segments 5.4% vs. 6.0% 1Q17 and a successful price management 437 €m aspiration Core revenue growth (+1.1% yoy) COVERAGE RATIO Costs continue to go
Slide 33: Business areas: Mexico, Turkey, South America
33 Business areas 01 About BBVA MEXICO constant € 02 Vision and NET ATTRIBUTABLE PROFIT (1Q18) NPL RATIO NII growth at high single digit yoy, in line with 2.1% vs. 2.3% 1Q17 expectations 571 €m aspiration Positive jaws maintained and efficiency COVERAGE RATIO improvement 03 BBVA transformation +12.5
Slide 34: CIB – 1Q18 Results
34 CIB – 1Q18 Results 01 About BBVA Business activity Client’s revenue Results 02 Vision and aspiration (constant €, % YtD) (constant €, % YoY) (constant €, % YoY) GROSS INCOME 03 BBVA transformation LENDING 670 €m -4.0% 773 €m -6.2% journey 55 €bn -1.1% OPERATING INCOME Wholesale 04 Results’ highli
Slide 35: BBVA Group First Quarter 2018
BBVA Group First Quarter 2018
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) — Q1 2018 Earnings Presentation on 6ix