Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Corporate Update (June 2022)
16 slides from Banco Bilbao Vizcaya Argentaria's corporate update, Jun 28, 2022
Slide 1: Implementation of IAS 29 to BBVA Turkey Financial Statements
June 28th, 2022 Implementation of IAS 29 to BBVA Turkey Financial Statements
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: Background Information on Hyperinflation Accounting
3 Background Information on Hyperinflation Accounting CONTEXT In a hyperinflationary economy, the currency loses purchasing power. Hyperinflationary accounting aims to show the Financial Statements in real terms, allowing for a proper comparison with previous periods. WHEN TO APPLY IT? According to
Slide 4: Hyperinflation Accounting main implications
4 Net Monetary Position (NMP) value loss due to the inflation in the period is registered in the P&L (“Other operating income and expenses” heading) with positive adjustment in “Other Comprehensive Income” (OCI). Negative on P&L. Neutral on Equity and Capital. CPI linkers accrual based on current pe
Slide 5: BBVA Turkey hyperinflation accounting impacts as of Mar'22 (pro-forma)
5 As of March 31st, 2022: • Net Monetary Position: ~ 4.7 Bn€ • CPI linkers portfolio: ~ 3.6 Bn€ (*) The NMP loss is not tax deductible. BBVA Turkey: Book Value (€ Mn) Negative impact on P&L from the Net Monetary Position loss (neutral on capital), partially offset by CPI linkers revenue BBVA Turkey
Slide 6: BBVA Group hyperinflation accounting impacts as of Mar'22 (pro-forma)
6 Positive impact on Capital from Assets revaluation and other indirect impacts (such as a lower dividend accrual at a 50% pay-out 1) +19 bps BBVA Group: CET1 FL (%) BBVA Group hyperinflation accounting impacts as of Mar’22 (pro-forma): Positive on Capital, Negative on P&L BBVA Group: Net Attributab
Slide 7: BBVA Group's financial goals for 2024 remain unchanged
7 BBVA Group’s financial goals for 2024 remain unchanged COST-TO-INCOME (%) ROTE (%, annualized) TBV/ share + dividends (YoY, %) 40.7 15.9 12.6 Pre Hyperinflation Accounting in Turkey
Slide 8: Key Takeaways
8 Key Takeaways BBVA Group will apply hyperinflationary accounting in Turkey in 2Q22 with effects from Jan 1st, 2022 according to IAS 29 accounting standard. Hyperinflation accounting is a reexpression of the financial statements aiming to show them in real terms. Main impacts for BBVA Group pro-for
Slide 9: Annex I - Detailed P&L impacts of IAS 29
Annex I—Detailed P&L impacts of IAS 29
Slide 10: BBVA Group - Pro-forma P&L 1Q22
10 1Q22 pre HA HA impact 1Q22 post HA Net interest income 4,158 -209 3,949 Net Fees and Commissions 1,241 1 1,242 Net Trading Income 580 0 580 Other Income & Expenses -39 -316 -355 Gross Income 5,939 -524 5,416 Operating Expenses -2,415 -9 -2,424 Operating Income 3,525 -533 2,992 Impairment on Finan
Slide 11: BBVA Turkey - Pro-forma P&L 1Q22
11 1Q22 pre HA HA impact 1Q22 post HA Net interest income 706 -209 497 Net Fees and Commissions 132 1 133 Net Trading Income 175 0 175 Other Income & Expenses 15 -316 -301 Gross Income 1,027 -524 503 Operating Expenses -230 -9 -239 Operating Income 797 -533 264 Impairment on Financial Assets -97 1 -
Slide 12: Annex II - Quarterly Financial Statements: 1Q22 IAS 29 pro-forma
Annex II—Quarterly Financial Statements: 1Q22 IAS 29 pro-forma
Slide 13: BBVA Group. Consolidated balance sheet
13 BBVA Group. Consolidated balance sheet Balance sheets (Million euros) 31·03·21 30·06·21 30-09-21 31-12·21 31-03-22 Cash, cash balances at central banks and other demand deposits 54,950 61,687 63,232 67,799 70,937 Financial assets held for trading 98,275 102,647 106,505 123.493 112,131 Non-trading
Slide 14: BBVA Group. Consolidated Income statement
14 BBVA Group. Consolidated Income statement Income statement (Million euros) Net interest income Net fees and commissions Net trading income Dividend income Share of profit/loss of invest. in subsidaries, joint ventures and associates Other products and expenses Gross income Operating expenses Admi
Slide 15: Turkey Income statement
15 .. Turkey Income statement (Million euros) 2021 2022 2022 1Q 2Q 3Q 4Q 1Q 1Q pro-forma HA Net interest income 530 507 615 719 706 497 Net fees and commissions 154 143 146 122 132 133 Net trading income 126 54 59 175 175 175 Other operating income and expenses 24 34 23 -7 15 -301 Gross income 834 7
Slide 16: Signature
June 28th, 2022 Implementation of IAS 29 to BBVA Turkey Financial Statements SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Bilbao Vizcaya Argent
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