Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q1 2014 Earnings Presentation
30 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Apr 30, 2014
Slide 1: First quarter results 2014
Angel Cano, BBVA^s President & Chief Operating Officer Madrid, April 30th 2014 First quarter results 2014
Slide 2: Disclaimer
Disclaimer This document is only provided for information purposes and does not constitute, nor must 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 securities
Slide 3: Highlights
Riesgos Highlights Solvency Liquidity Earnings Risk New cycle of earnings growth Improvement in risk indicators Active management of capital Adequate financing structure Strong fundamentals
Slide 4: Strong fundamentals
Riesgos Highlights Solvency Liquidity Earnings Risk Strong fundamentals Net income excluding corporate operations +19% (1Q14 vs. 1Q13) Risk premium -18 bp (1Q14 vs. 1Q13) Gross entries to NPAs -25% Lower finance costs -177 bp (vs 5-year senior debt issue in 1Q13) Core capital ratio CRD IV 10.8% (Pha
Slide 5: Earnings: revenue continues to be resilient
Net interest income + fee income €m -6.4% Gross income €m +6.7% constant € +5.0% constant € -6.8% 45% developed and 55% emerging Earnings: revenue continues to be resilient ... Gross Income* * excludes Holding
Slide 6: Gross income rising faster than costs
... rising faster than costs thanks to superior management ... Gross income vs. costs YoY change, constant € (%) Developed Emerging Control and reduction plans Investment for the future Note: excludes Holding
Slide 7: Operating income: maintaining leadership in profitability
... and this is reflected by operating income ... Maintaining leadership in terms of profitability -8.4% +6.0% constant € Operating income €m Operating income/ATAs BBVA vs peer group; 12M13 (%) Note: peer group includes BARCL, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, RBS, SAN, SG, UBS, UCI
Slide 8: Lower provisions result in strong earnings growth
... and aided by lower provisions, this results in strong earnings growth Loan-loss + real estate provisions €m +76.1% constant € Net income ex corporate operations €m +18.7% Lower provisions Moving towards normal levels Consolidating growth
Slide 9: Risk: indicators are improving
Risk: indicators are improving NPA ratio (%) Coverage ratio (%) Accum. cost of risk 1.6% 1.5% 1.2% 1.4% 1.4% Note: risk figures exclude real estate activities. NPA ratio for real estate activity in Spain: 54.2%, 63% coverage, NPAs €8.7bn and the risk premium is 2.0% Refinancing NPAs €bn Gross entrie
Slide 10: Capital: excellent management
Capital: excellent management Strong capital position 5.8% (Fully-loaded) Additional Tier 1 issue Tier II issue Issuance activity 10.8% (Phased-in) Capital plans were approved in USA 9.9% (Fully-loaded) Core Capital CRD IV Leverage Ratio
Slide 11: Summary: good earnings and on the road to a new growth cycle
Summary: good earnings and on the road to a new growth cycle €m FX impact Provisions: driving short-term growth Recurring earnings Note: Earnings are presented this way to show the development of recurring business. The reconciliation with the earnings statement is shown on page 47 of the financial
Slide 12: Business Areas
Business Areas
Slide 13: Developed
Developed Emerging
Slide 14: Banking activity in Spain: start of recovery
Lending -8.4 % +12.8% Customer funds Business activity in Spain YoY chg in average balances Improvement in customer spread Net interest income + fees €m -9.5% Banking activity in Spain: start of recovery +5.5% Operating income €m Gross income €m +17.0% Costs -7.9% vs. 1Q13
Slide 15: Banking activity in Spain: moving towards normal provisioning
Banking activity in Spain: moving towards normal levels of provisioning NPA ratio Gross entries €bn Refinancing NPAs €bn Risk indicators % Coverage ratio Risk premium %
Slide 16: Banking activity in Spain: income statement
Banking activity in Spain: income statement €m Gradual return to normal conditions
Slide 17: Real estate business in Spain: less exposure
Real estate business in Spain: less exposure Figures at 1Q14 Exposure down 21% from 2011 peak level Sales at prices close to NBV Prices are gradually stabilizing Demand is recovering slowly -127bp in the quarter Net exposure €14.2bn NPA ratio 54.2% Sales volume ~5,000 units -€231m Net Attrib. Profit
Slide 18: USA: surge in new business reflected by income
Lending +14.7% +4.4% Customer funds Compass business activity Average balance, YoY, in constant € Operating income Constant €m USA: surge in new business is reflected by income +6.8% +5.9% +10.4% Net interest income + fees Constant €m Gross income Constant €m
Slide 19: USA: excellent risk indicators
NPA ratio Coverage ratio NPA and coverage ratios (%) USA: excellent risk indicators Loan-loss provisions and risk premium Quarter by quarter (€m constant , %)
Slide 20: USA: income statement
USA: income statement Constant €m Good performance at all levels of the income statement
Slide 21: Emerging
Developed Emerging
Slide 22: Garanti: solid earnings in a complex environment
Garanti: solid earnings in a complex environment Big challenges and opportunities Lending is growing more slowly Pressure on margins Cost of funding increases and customer spread declines Improved macro outlook in the medium term Future potential Best franchise in the country
Slide 23: EurAsia: income statement
EurAsia: income statement Solid contribution despite environment Constant €m Note: in accordance with IFRS Garanti is accounted by the equity method for the purpose of uniform presentation based on the proportional consolidation method. Note: the equity-accounted earnings from CNCB (excluding divide
Slide 24: Mexico: vigorous activity in business and margins
Lending +10.4% +12.2% Customer funds Business activity Average balance, YoY, in constant € Operating income Constant €m Mexico: vigorous activity in business and margins +10.1 % +14.5% +12.2% The leading franchise Net interest income + fees Constant €m Gross income Constant €m
Slide 25: Mexico: stable risk indicators
Mexico: stable risk indicators NPA ratio Coverage ratio NPA and coverage ratios (%) Loan-loss provisions and risk premium Quarter by quarter (€m constant, %)
Slide 26: Mexico: income statement
Mexico: income statement Constant €m Note: results from the pension business in Latin America, including the capital gains from their sale are included under the Holding
Slide 27: South America: buoyant new business and solid growth
South America: buoyant level of new business and solid growth Lending +25.1% +25.3% Customer funds Business activity Average balance, YoY, in constant € Operating income Constant €m +25.2 % +31.9% +27.1% Net interest income + fees Constant €m Gross income Constant €m
Slide 28: South America: good risk indicators
NPA ratio Coverage ratio NPA and coverage ratios % South America: good risk indicators Loan-loss provisions and risk premium Quarter by quarter (€m constant, %)
Slide 29: South America: income statement
South America: income statement Diversifying within the region Constant €m Note: results from the pension business in Latin America and BBVA Panama, including the capital gains from their sale are included under the Holding
Slide 30: First quarter results 2014
Angel Cano, BBVA^s President & Chief Operating Officer Madrid, April 30th 2014 First quarter results 2014 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 Argentaria — Q1 2014 Earnings Presentation on 6ix