Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — FY2021 Earnings Presentation
65 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Feb 3, 2022
Slide 1: 2021 Results
2021 Results February 3, 2022
Slide 2: Disclaimer
2021 Results 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 inv
Slide 3: 2021 achievements
2021 Results 3 2021 achievements SIGNIFICANT PROGRESS IN THE CUSTOMERS ACQUIRED DIGITAL SALES1 SUSTAINABLE FINANCING EXECUTION OF OUR STRATEGY 8.7million 73.3% € 35.4 billion THE HIGHEST RECURRENT RESULTS NET ATTRIBUTABLE PROFIT 2 OPERATING INCOME IN THE PAST 10 YEARS € 5.1 billion + 10.8% growth vs
Slide 4: All-time record customer acquisition
2021 Results 4 All-time record customer acquisition NEW CUSTOMER ACQUISITION1 (MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) 8.7 7.2 6.9 DIGITAL 5.1 ACQUISITION 40% +47% 4.6 TOTAL 3.4 2021 vs 2020 MILLION DIGITAL 4% 2016 2017 2018 2019 2020 2021 (1) Gross customer acquisition through own channels
Slide 5: Leading digital transformation and investing in innovation as key for growth
2021 Results 5 Leading digital transformation and investing in innovation as key for growth DIGITAL LEADERSHIP INVESTING IN INNOVATION MOBILE CUSTOMERS1 DIGITAL ADVICE SELECTIVE DIGITAL BANK INVESTMENTS (MILLION CUSTOMERS) BBVA ITALY 39.7 SPAIN (UK) 12.2 NPS (FINANCIAL + 9.3p.p. HEALTH TOOLS USERS V
Slide 6: Pioneering Sustainability
2021 Results 6 Pioneering Sustainability SUSTAINABLE FINANCING A CLEAR COMMITMENT IN PORTFOLIO (€BILLION) ALIGNMENT TOWARDS NET ZERO 2050 2025 PLEDGE 2030 decarbonization goals set in € 35.4 Bn 200 €Bn selected CO2 intensive industries1 CHANNELED IN 2021 Reduction in 2030 Power -52% kg CO2e/MWh Tota
Slide 7: The highest recurrent results in the past 10 years
2021 Results 7 The highest recurrent results in the past 10 years NET ATTRIBUTABLE PROFIT1 (CURRENT €M) +18.7% 5,069 4,270 €4,653M INCLUDING NON-RECURRENT 2,729 IMPACTS1 1,400 1,341 1,032 713 4Q19 4Q20 3Q21 4Q21 2019 2020 2021 1 EPS (€) 0.14 0.09 0.20 0.19 0.58 0.35 0.71 (1) Net attributable profit
Slide 8: Delivering on our clear commitment to shareholder value creation
2021 Results 8 Delivering on our clear commitment to shareholder value creation TBV / SHARE + DIVIDENDS PROFITABILITY METRICS2 (€ / SHARE) (%) TBV / share Dividends distributed in 2021 +10.1% ROTE 11.7 12.0 6.66 6.55 1 0.14 1 6.5 0.14 6.05 6.41 6.52 11.1 11.4 ROE 6.1 Dec-20 Sep-21 Dec-21 2020 9M21 2
Slide 9: 2021 Top financial messages
2021 Results 9 2021 Top financial messages Variation in constant € 1 LOAN GROWTH GAINING TOTAL LOAN GROWTH (DEC 2021)1 +6.3% VS. DEC 2020 +3.9% vs. SEP 2021 MOMENTUM 2 STRONG CORE REVENUES: NII NII + FEE INCOME NII FEE INCOME +9.1% VS. 2020 ACCELERATING AND OUTSTANDING FEE INCOME GROWTH +6.1% +19.8%
Slide 10: 2021 Profit and Loss
2021 Results 10 2021 Profit and Loss Change 2021/2020 BBVA Group (€M) 2021 % constant % Net Interest Income 14,686 6.1 0.6 Net Fees and Commissions 4,765 19.8 15.6 Net Trading Income 1,910 30.5 23.5 Other Income & Expenses -295 n.s. n.s. Gross Income 21,066 9.7 4.5 Operating Expenses -9,530 8.5 4.9
Slide 11: 4Q21 Profit and Loss
2021 Results 11 4Q21 Profit and Loss Change Change 4Q21/4Q20 4Q21/3Q21 BBVA Group (€M) 4Q21 % constant % % constant % Net Interest Income 3,978 16.5 14.4 10.5 6.0 Net Fees and Commissions 1,247 22.2 19.7 7.0 3.7 Net Trading Income 438 152.0 150.5 17.8 13.1 Other Income & Expenses -187 n.s. n.s. n.s.
Slide 12: Loan growth gaining momentum
2021 Results 12 Loan growth gaining momentum LOAN BOOK GROWTH1 (CONSTANT €; YOY CHANGE; %) BBVA GROUP SPAIN MEXICO 6.3% 6.5% 1.4% 1.1% 1.7% 0.1% -0.7% -3.7% -1.4% -1.4% -1.9% -6.5% Mar,21 Jun,21 Sep.21 Dec,21 Mar,21 Jun,21 Sep.21 Dec,21 Mar,21 Jun,21 Sep.21 Dec,21 TURKEY2 COLOMBIA PERU3 35.1% 29.7%
Slide 13: Strong revenue growth
2021 Results 13 Strong revenue growth NET INTEREST INCOME NET FEES AND COMMISSIONS (CONSTANT €) (CONSTANT €) +16.5% +10.5% NII growth +22.2% Outstanding 4,100 accelerating in the evolution across year driven by +7.0 % the board. The 3,710 3,519 3,502 activity recovery, highest quarterly 1,181 1,194
Slide 14: Leading efficiency and Operating Income growing at double-digit
2021 Results 14 Leading efficiency and Operating Income growing at double-digit POSITIVE JAWS EFFICIENCY RATIO OPERATING INCOME (2021 YOY, %; CONSTANT €) (%; CONSTANT €) (2021 YOY, %; CONSTANT €) +10.8% FOOTPRINT INFLATION1 11,536 #1 RANKING EUROPEAN 7.8% 49.4 PEER GROUP2 12M AVERAGE 9.7% 10,412 8.5
Slide 15: Risk indicators evolution better than expected
2021 Results 15 Risk indicators evolution better than expected FINANCIAL ASSETS IMPAIRMENTS NPL (€M CONSTANT) (€BN) 888 909 848 15.6 15.7 15.5 14.9 15.4 659 619 4Q20 1Q21 2Q21 3Q21 4Q21 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 COST OF RISK NPL & COVERAGE RATIOS (%, YTD) (%) COVERAGE 82% 81% 80% 1.55% 77%
Slide 16: Significant increase of shareholders' distribution
2021 Results 16 Significant increase of shareholders’ distribution THE HIGHEST CASH DPS IN THE ONE OF THE HIGHEST SHARE BUYBACK PAST 10 YEARS PROGRAMS IN EUROPE DIVIDEND PER SHARE (DPS) (€ CENTS/ SHARE) € 3,500 million €31 cents €8 cents in Oct.21 €1,500 million first tranche, €23 cents in Apr.221 6
Slide 17: Strong capital position and ample capital buffer
2021 Results 17 Strong capital position and ample capital buffer CET1 FULLY-LOADED (%, BPS) 14.48% +44 bps 13.18% -26 bps 12.75% -130 bps -49 bps … -12 bps 11.5-12.0% TARGET RANGE 8.60% CET1 SREP REQUIREMENT 4 Sep.2021 €3.5 Bn Sep. 2021 Results Dividend RWAs Others Dec.2021 3 Share Post SBB Accrual
Slide 18: On track to achieve our ambitious long-term goals
2021 Results 18 On track to achieve our ambitious long-term goals COST-TO-INCOME ROTE TBV/ SHARE + DIVIDENDS (%) (%) (%) 14.0 2020-2021 2021-2024 CAGR 45.2 42.0 GOAL 12.0 10.1% 9.0% 2021 2024 GOAL 2021 2024 GOAL NEW TARGET CUSTOMERS SUSTAINABLE FINANCE (MILLION) (€ BILLION) PLEDGE CHANNELED 200 2021
Slide 19: Business Areas
Business Areas
Slide 20: Spain
2021 Results 20 Spain PROFIT & LOSS (€m) ACTIVITY (DEC-21) YoY Δ (% ) Δ (% ) €Bn 276.0 +2.8% 4Q21 vs 4Q20 vs 3Q21 12M21 vs 12M20 YoY Net Interest Income 867 -1.4 -0.6 3,502 -1.8 €Bn 168.3 +1.7% Net Fees and Commissions 597 31.9 11.8 2,189 21.5 Net Trading Income 38 n.s. 74.5 343 97.4 Demand Deposits
Slide 21: Mexico
2021 Results 21 Mexico PROFIT & LOSS (€m Constant) ACTIVITY (DEC-21) (€ constant) YoY YoY Δ Constant (% ) Δ Current Δ Constant €Bn 89.2 +11.5% vs 12M20 vs 12M20 4Q21 vs 4Q20 vs 3Q21 12M21 (%) (%) €Bn 56.0 +6.5% Net Interest Income 1,540 9.3 3.6 5,836 7.8 5.4 Net Fees and Commissions 310 1.7 -0.8 1,2
Slide 22: Turkey
2021 Results 22 Turkey PROFIT & LOSS (€m Constant) ACTIVITY (DEC-21) (€ Constant; Bank Only) Δ Constant (% ) Δ Current Δ Constant YoY1 YoY1 4Q21 vs 4Q20 vs 3Q21 12M21 vs 12M20 (%)vs 12M20 (%) FC +5.1% Net Interest Income 845 59.9 44.0 2,370 -14.8 11.2 FC Time 8.3 -10.0% Net Fees and Commissions 155
Slide 23: South America
2021 Results 23 South America NET ATTRIBUTABLE PROFIT (€M Constant) ACTIVITY (DEC-21) YoY (€ Constant) €Bn 51.1 +5.7% 0 Δ Constant(% ) 0 Δ Current Δ Constant YoY 4Q21 vs 4Q20 vs 3Q21 12M21 vs 12M20 (%) vs 12M20 (%) €Bn 34.6 +10.3% Colombia 13.8 +8.0% Colombia 69 14.0 25.5 228 38.5 45.4 Peru 43 41.1
Slide 24: Takeaways and 2022 outlook
2021 Takeaways and 2022 outlook
Slide 25: 2021 takeaways
2021 takeaways SIGNIFICANT PROGRESS IN THE EXECUTION OF OUR STRATEGY: INNOVATION, SUSTAINABILITY AND GROWTH THE HIGHEST RECURRENT RESULTS IN THE PAST 10 YEARS ACCELERATING PROFITABLE GROWTH AND VALUE CREATION FOR OUR STAKEHOLDERS SIGNIFICANTLY INCREASING SHAREHOLDERS’ DISTRIBUTIONS On track to achie
Slide 26: 2022 Outlook
2022 Outlook Core revenues expected to grow around double-digit, maintaining our strategic focus towards the most profitable segments Costs to grow below inflation with efficiency improving across the board Cost of Risk around 100 bps Sizeable distributions to our shareholders: €3.5 Bn share buyback
Slide 27: Annex
Annex Net Attributable Profit 01 08 CET1 Sensitivity to market impacts evolution 02 Gross Income breakdown 09 CET1 YTD evolution & RWAs by business Area 03 P&L Accounts by business unit 10 Book Value of the main subsidiaries 04 Customer spread by country 11 TBV per share & dividends evolution 05 Sta
Slide 28: Net Attributable Profit evolution
01 Net Attributable Profit evolution
Slide 29: Net Attributable Profit evolution
2021 Results 29 Net Attributable Profit evolution €M +2,126€M 5,069 350 308 92 30 767 929 2,729 -136 12M20 FX Spain Mexico Turkey South America Rest of Corp. Center 12M21 Effect business Note: Figures excluding the results from the US business sold to PNC in 2020 and 2021, the net cost related to th
Slide 30: Gross Income breakdown
Q2 Gross Income breakdown Creating Opportunities
Slide 31: Gross Income breakdown
2021 Results 31 Gross Income breakdown 12M21 Spain 5,925€M Rest of business 741 €M 28% 4% South America Turkey 3,162 €M 15% 16% 3,422 €M 36% Mexico 7,603 €M Note: Figures exclude Corporate Center.
Slide 32: P&L Accounts by business unit
03 P&L Accounts by business unit Rest of Business Corporate Center Argentina (hyperinflation adjustment) Colombia Peru
Slide 33: Rest of Business Profit & Loss
2021 Results 33 Rest of Business Profit & Loss €M Δ (% ) Δ (% ) 4Q21 vs 3Q21 vs 4Q20 12M21 vs 12M20 Net Interest Income 72 3.2 1.5 281 -3.3 Net Fees and Commissions 59 10.3 -13.9 248 -25.4 Net Trading Income 41 -14.2 5.9 197 15.0 Other Income & Expenses 2 n.s. -84.1 16 -65.4 Gross Income 173 3.2 -8.
Slide 34: Corporate Center Profit & Loss
2021 Results 34 Corporate Center Profit & Loss €M Δ (% ) Δ (% ) 4Q21 vs 3Q21 vs 4Q20 12M21 vs 12M20 Net Interest Income -35 -24.3 -27.9 -163 -0.4 Net Fees and Commissions -7 3.1 -47.4 -36 -45.5 Net Trading Income -2 n.s. -96.5 266 84.2 Other Income & Expenses 51 359.3 36.8 146 553.6 Gross Income 7 -
Slide 35: Argentina hyperinflation adjustment
2021 Results 35 Argentina hyperinflation adjustment PROFIT & LOSS €M 12M21 Hyperinflation 12M21 (reported) adjustment Ex. Hyperinflation Net Interest Income 1,052 146 905 Net Fees and Commissions 203 24 178 Net Trading Income 92 17 75 Other Income & Expenses -528 -395 -133 Gross Income 818 -208 1,02
Slide 36: Colombia Profit & Loss
2021 Results 36 Colombia Profit & Loss €M CONSTANT Δ (%) Δ (%) 4Q21 vs 3Q21 vs 4Q20 12M21 vs 12M20 Net Interest Income 195 2.2 2.1 769 3.5 Net Fees and Commissions 20 -1.5 5.1 83 23.7 Net Trading Income 23 22.7 44.7 70 0.5 Other Income & Expenses -8 -17.6 295.9 -32 176.7 Gross Income 230 4.5 2.7 891
Slide 37: Peru Profit & Loss
2021 Results 37 Peru Profit & Loss €M CONSTANT Δ (%) Δ (%) 4Q21 vs 3Q21 vs 4Q20 12M21 vs 12M20 Net Interest Income 209 4.5 17.9 761 8.2 Net Fees and Commissions 58 -4.3 8.8 231 21.8 Net Trading Income 29 19.7 -27.3 141 2.0 Other Income & Expenses -8 -12.9 -13.5 -35 29.8 Gross Income 288 4.5 10.1 1,0
Slide 38: Customer Spread by country
04 Customer Spread by country
Slide 39: Customer spreads: quarterly evolution
2021 Results 39 Customer spreads: quarterly evolution AVERAGE 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 Spain 1.82% 1.77% 1.76% 1.75% 1.73% Turkey TL 3.90% 2.55% 2.88% 3.43% 4.89% Yield on Loans 1.83% 1.77% 1.75% 1.74% 1.73% Yield on Loans 12.88% 14.30% 15.56% 16.26% 16.48% Cost of Deposits
Slide 40: Customer spreads: YoY evolution
2021 Results 40 Customer spreads: YoY evolution AVERAGE 12M20 12M21 12M20 12M21 Spain 1.90% 1.75% Turkey TL 6.09% 3.50% Yield on Loans 1.91% 1.75% Yield on Loans 13.14% 15.72% Cost of Deposits -0.01% 0.00% Cost of Deposits -7.06% -12.22% Mexico MXN 10.89% 11.10% Turkey FC1 4.93% 4.66% Yield on Loans
Slide 41: Stages breakdown by business areas
05 Stages breakdown by business areas
Slide 42: Stages breakdown by business area
2021 Results 42 Stages breakdown by business area CREDIT RISK BREAKDOWN BY BUSINESS AREA (DEC-21, €M) BBVA Gross Accumulated Gross Accumulated Gross Accumulated SPAIN MEXICO GROUP Exposure impairments Exposure impairments Exposure impairments Stage 1 321,249 2,030 Stage 1 169,804 725 Stage 1 54,243
Slide 43: Outstanding loan deferrals & loans backed by State guarantees
06 Outstanding loan deferrals & loans backed by State guarantees
Slide 44: Prudent deferrals' classification and proactive provisioning
2021 Results 44 Prudent deferrals’ classification and proactive provisioning TOTAL DEFERRALS o/w Expired deferrals by stages as GRANTED expired a % of total loans €BN % of total loans % Stage 1 Stage 2 Stage 3 As of Dec'21 Total Group 21.9 6.3% 99% 3.8% 1.8% 0.7% By segment Mortgages 10.3 11.0% 99%
Slide 45: Outstanding loan deferrals
2021 Results 45 Outstanding loan deferrals OUTSTANDING DEFERRALS (DEC-21) SPAIN €0.1bn 0.1% MEXICO €0.0bn 0.0% Total Group €0.0bn 0.0% €0.2 bn TURKEY 0.1 % of loans PERU €0.0bn 0.1% COLOMBIA €0.0bn 0.2% ARGENTINA €0.0bn 0.0% Data according to EBA criteria, excluding loans that have been cancelled.
Slide 46: Government backed loans
2021 Results 46 Government backed loans € bn; DEC’21 (2) (3) GROUP SPAIN (2) MEXICO TURKEY (3) ARGENTINA COLOMBIA PERU Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Households 1.4 0.9% 1.2 1.2% 0.0 0.0% 0.0 0.0% 0.1 2.6% 0.0 0.5% 0.1 2.4% (1) Corporates &
Slide 47: ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
07 ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
Slide 48: ALCO portfolio
2021 Results 48 ALCO portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value (HTC) (HTC&S) 44.7 47.7 45.6 Dec-21 (€BN) (€BN) (duration) South America 4.0 South America 0.2 3.8 1.0 years 3.8 4.0 Mexico 9.8 10.1 Mexico 2.2 7.9 3.1 years 9.0 Turkey 7.0 5.7 Turkey 2.8 2.9 4.1 years 7.2
Slide 49: NII sensitivity to interest rates movements
2021 Results 49 NII sensitivity to interest rates movements ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST RATE MOVEMENTS (%) NII sensitivity to +100 bps NII sensitivity to -100bps 25% 0% 20% -5% 15% -10% 10% -15% 5% -20% 0% -25% Euro Mexico Euro Mexico Note: NII sensitivities ca
Slide 50: Liquidity and funding ratios
2021 Results 50 Liquidity and funding ratios BBVA GROUP AND SUBSIDIARIES LCR & NSFR (DEC-21) LCR NSFR Total Group 165% (213%)1 135% Euro 190% 126% Mexico 245% 149% Turkey 211% 162% S. America All countries >100% >100% (1) LCR of 165% does not consider the excess liquidity of the subsidiaries outside
Slide 51: CET1 Sensitivity to market impacts
08 CET1 Sensitivity to market impacts
Slide 52: CET1 Sensitivity to Market impacts
2021 Results 52 CET1 Sensitivity to Market impacts1 TO A 10% CURRENCY DEPRECIATION TO A 10% DECLINE IN TELEFONICA’S (DEC-21) SHARE PRICE (DEC-21) MXN -7 bps -3 bps TRY -1 bps TO +100 BPS MOVEMENT IN THE SPANISH SOVEREIGN BOND (DEC-21) USD +18 bps -13 bps (1) CET1 sensitivity considering the FL capit
Slide 53: CET1 YTD evolution & RWAs by business area
09 CET1 YTD evolution & RWAs by business area
Slide 54: Capital YTD Evolution
2021 Results 54 Capital YTD Evolution CET1 FULLY-LOADED – BBVA GROUP YTD EVOLUTION (%, BPS) +253bps 12.75% +150 bps 11.73% 11.70% -24 bps -68 bps -125 bps -35 bps -33 bps -16bps (1) (2) Dec-20 Results Dividend RWAs activity Regulatory Others Dec-21 BBVA Restructuring €3.5 Bn Dec-21 Accrual & (consta
Slide 55: Risk-Weighted Assets by business area
2021 Results 55 Risk-Weighted Assets by business area Fully-Loaded RWAs Breakdown by business area (€m) Dec-20 Sep-21 Dec-21 Spain 104,388 108,775 113,825 Turkey 53,021 55,233 49,718 Mexico 60,825 61,240 64,573 South America 39,804 40,870 43,334 Argentina 5,685 6,181 6,775 Chile 1,575 1,603 1,636 Co
Slide 56: Book Value of the main subsidiaries
10 Book Value of the main subsidiaries
Slide 57: Book Value of the main subsidiaries
2021 Results 57 Book Value of the main subsidiaries(1,2) € BN; DEC’21 Mexico 13.6 Turkey 2.8 Colombia 1.4 Argentina 1.1 Peru 1.0 Chile 0.3 Venezuela 0.1 (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuation adjustments. The Goodwill associate to each subsid
Slide 58: TBV per share & dividends evolution
11 TBV per share & dividends evolution
Slide 59: Shareholders' return: TBV per share & dividends evolution
2021 Results 59 Shareholders’ return: TBV per share & dividends evolution TBV PER SHARE & DIVIDENDS (€ PER SHARE) TBV Dividends +10.1% 6.55 6.66 6.40 1 0.14 1 0.14 1 6.15 0.06 6.05 6.41 6.52 6.34 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 (1) April 2021 dividend per share (0.06 €) and October 2021 dividend
Slide 60: Garanti BBVA: wholesale funding
12 Garanti BBVA: wholesale funding
Slide 61: Turkey – Liquidity & funding sources
2021 Results 61 Turkey – Liquidity & funding sources SOLID LIQUIDITY POSITION: LIMITED EXTERNAL WHOLESALE Total LTD ratio is at Foreign currency Liquidity ratios above FUNDING NEEDS: 79.8%, decreasing performing loans requirements: Liquidity 6.9 Bn by -12,71 p.p in 4Q21 decreased by USD 0.7 Bn Cover
Slide 62: Digital metrics
13 Digital metrics Digital & mobile customers Digital sales
Slide 63: Outstanding trends in digital and mobile clients
2021 Results 63 Outstanding trends in digital and mobile clients DIGITAL CUSTOMERS MOBILE CUSTOMERS (MILLION CUSTOMERS, %) (MILLION CUSTOMERS, %) +37% +42% 41.8 39.7 33.4 35.8 27.9 30.6 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 CUSTOMER PENETRATION RATE CUSTOMER PENETRATION RATE 57.6% 63.8% 69.4% 52
Slide 64: Leveraging digital capabilities to grow sales through digital channels
2021 Results 64 Leveraging digital capabilities to grow sales trough digital channels (% OF TOTAL SALES YTD, # OF TRANSACTIONS AND PRV1) GROUP SPAIN MEXICO 67.5 73.3 68.9 63.6 69.9 UNITS 61.6 55.6 56.9 52.8 63.0 PRV 56.1 50.8 52.2 47.4 43.5 44.3 42.5 40.3 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 De
Slide 65: BBVA
BBVA
Banco Bilbao Vizcaya Argentaria — FY2021 Earnings Presentation on 6ix