Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q3 2014 Earnings Presentation
43 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Oct 29, 2014
Slide 1: Third quarter results 2014
Angel Cano, BBVA^s President & Chief Operating Officer Madrid, October 29th 2014 Pendiente actualizar Third 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: Comprehensive assessment
Peer Group includes: BARCL, BNPP, CASA, CMZ, DB, ISP, HSBC, LBG, RBS, SAN, SG and UCI. Leverage ratio and Excess NPL Coverage excludes UK banks (not subject to AQR) Comprehensive assessment
Slide 4: Top line growth, strong fundamentals, risks
Top line growth Strong fundamentals Risks Earnings Solvency Liquidity Digital transformation Solid position in every market Key long term strategic lever Improvement in risk indicators Capital strength as competitive advantage
Slide 5: Strong fundamentals: earnings, risk, solvency, liquidity
Strong fundamentals Risks Earnings Solvency Liquidity Solid position in every market Net interest income +7.8% (3Q14 vs 3Q13) NPA ratio 4.3% Coverage ratio 64% Note: risk figures exclude real estate activities (-30 bp YoY) (+5 pp YoY) Core capital CRD IV 11.7% (Phased-in) (+12 bp vs 2Q14) Digital tr
Slide 6: Digital transformation
Digital transformation 1 2 3 4 5
Slide 7: Digital transformation: spotlight
Digital transformation: spotlight
Slide 8: Earnings: Solid net interest income supporting revenue strength
Earnings: Solid net interest income supporting revenue strength +7.8% +15.7% constant €m Excluding FX effect 3Q14 Highlights Net interest + fee income at record levels ? Dividends +0.7% Gross income 3Q14 vs 3Q13 9M14 vs 9M13 -3.0%
Slide 9: Cost control and positive jaws
(CHART) (CHART) (CHART) c Excluding FX effect Cost control and positive jaws ... Gross income vs costs YoY (%) Cost control Investment for growth High inflation economies 3Q14 vs 3Q13 -0.2% Costs 9M14 vs 9M13 -3.6% Emerging Developed Note: Developed include Holding
Slide 10: Resilient operating income
... maintaining a resilient operating income +10.9% Constant €m Excluding FX effect +1.8% Operating income 3Q14 vs 3Q13 9M14 vs 9M13 -2.3%
Slide 11: Loan-loss and real estate provisions trend stable
(CHART) Loan-loss and real estate provisions trend stable Loan-loss + real estate provisions €m Cost of risk normalization under way Cost of risk YTD Group excluding real estate activities (%)
Slide 12: In conclusion: positive trends maintained
In conclusion: positive trends maintained €m Note: The P&L is presented this way to show the performance of recurring business. The reconciliation with the income statement is shown on page 47 of the financial information filed today with the CNMV.
Slide 13: Risk: indicators continue to improve
Risk: indicators continue to improve Note: risk figures exclude real estate activities. NPA ratio for real estate activity in Spain: 55,3%, 61% coverage and NPAs €8.1bn NPA ratio (%) Coverage ratio (%) NPAs Risk Indicators €bn Refinanced loans 26.2 25.4 25.0 24.4 26.5 Incl. Real Estate
Slide 14: Capital and liquidity
Capital and liquidity (Phased-in) 11.7% (+12 bp vs 2Q14) (Fully-loaded) 10.1% (+5 bp vs 2Q14) Strong and resilient regulatory ratios Core Capital CRD IV (Fully-loaded) 5.7% Leverage Ratio Note: ratio leverage: provisional data
Slide 15: Business Areas
Business Areas
Slide 16: Developed
Developed
Slide 17: Banking activity in Spain: business activity and results
(CHART) Business activity (YoY chg in average balances) (CHART) Results (€m) (CHART) NII + fees Gross income Operating income Banking activity in Spain Lending -5.6% +11.1% Customer funds +0.1% -8.0% -14.9% +10.8% +1.0% +5.9%
Slide 18: Spain risk: positive trends continue
NPA ratio Entries (€ m) NPAs (€ bn) Risk: positive trends continue Refinance loans Cost of risk (Quarterly, %) Banking activity in Spain (CHART) Gross entries Net entries Loan disposals and entries in large corporate portfolio explain quarterly evolution Risk indicators (%) Coverage ratio
Slide 19: Income Statement: Banking activity in Spain
Income Statement (€m) Banking activity in Spain Deposit cost reduction Cost cutting efforts (-6.2% YoY) to optimize the operating structure Cost of risk continues to normalize
Slide 20: Real estate activity in Spain
(CHART) (CHART) Net attributable profit (€m) Net exposure* (€ bn) Sales Volume (Units) +10.2% -8.9% Real estate activity in Spain *Net exposure according to Bank of Spain's "RE transparency scope" (Circular 5-2011) Note: Sales volume includes the sales of units owned by developers (CHART) -29.1%
Slide 21: USA: business activity and results
Lending* +13.0% +12.7% Customer Funds * Business activity (Average balance, YoY, in constant €) (CHART) (CHART) (CHART) USA -0.6% -2.2% -10.7% * USA ex NY Business Activity Results (Constant €m) NII + fees Gross income Operating income +2.0% +1.5% -9.9%
Slide 22: USA risk
Risk NPA and coverage ratios (%) Loan-loss provisions and cost of risk (Constant €m, %) (CHART) NPA ratio Coverage ratio USA
Slide 23: Income Statement: USA
Income Statement (Constant €m) USA Strong activity focusing on new business Sound asset quality $1Bn senior debt issued in the quarter
Slide 24: Emerging
Emerging
Slide 25: EurAsia and Turkey
EurAsia Turkey 687 Gross income +10.7% 399 Operating income +9.8% 235 Net attributable profit +19.8% 653 NII + fees +11.4% Constant €m YoY ... and in 9M14 Disciplined lending growth In 3Q14 ... Geopolitical risk remains Sound asset quality NIM & Fees continue to grow
Slide 26: Income Statement: EurAsia
Income Statement (Constant €m) Note: in accordance with IFRS Garanti is accounted for using the equity method for the purpose of uniform presentation based on the proportional consolidation method. EurAsia Sequential trend affected by CNCB dividend (€139 Mn) in Q2 Lower loan loss provisions Lower de
Slide 27: Mexico: business activity and results
Mexico (CHART) (CHART) (CHART) +1.2% +0.5% -0.7% Lending +9.1% +13.9% Customer Funds Business activity (Average balance, YoY, in constant €) Results (Constant €m) NII + fees Gross income Operating income +10.0% +11.6% +12.9%
Slide 28: Mexico risk
Risk NPA ratio Coverage ratio (CHART) NPA and coverage ratios (%) Loan-loss provisions and cost of risk (Constant €m, %) Mexico
Slide 29: Income Statement: Mexico
Income Statement (Constant €m) Mexico Double digit growth in all lines Outstanding risk performance vs peers Further progress in the distribution transformation process
Slide 30: South America: business activity and results
+23.8% South America (CHART) (CHART) (CHART) +8.1% / +0.6% Lending Customer Funds Business activity (Average balance, YoY, in constant €) Results (Constant €m) NII + fees Gross income Operating income South America ex Venezuela +35.4% +16.7% +22.1% +17.7% +13.1% / +3.6% +20.3% +17.9% / +4.0% +24.5%
Slide 31: South America risk
Risk NPA ratio (CHART) NPA and coverage ratios (%) Loan-loss provisions and cost of risk (Constant €m, %) Coverage ratio South America
Slide 32: Income Statement: South America
Income Statement (Constant €m) South America Business activity growing over 20% YoY Venezuela and Argentina: macro uncertainties remain Strong performance of the Andean Region
Slide 33: Third quarter results 2014
Angel Cano, BBVA^s President & Chief Operating Officer Madrid, October 29th 2014 Pendiente actualizar Third quarter results 2014
Slide 34: Annex
A BBVA Annex
Slide 35: Digital and mobile active customers
Digital Active Customers BBVA Group - Million Mobile Active Customers BBVA Group - Million (CHART) (CHART) CAGR +21% CAGR +146% Figures excluding Garanti Bank Digital and Mobile active customers
Slide 36: Group: net attributable profit
Group: net attributable profit Net attributable profit €m Business +1,351 M€ 1) Excludes €2,068 Mn (including -€ 17 Mn of FX) related to results from corporate operations (ie. sale of pension business in Latin America). (1)
Slide 37: Capital: Core capital phased-in evolution
Capital: Core capital phased-in evolution 3Q14 Core capital CRD IV Phased-in Group BBVA (%) +12 bp
Slide 38: Capital: Core capital fully loaded evolution
Capital: Core capital fully loaded evolution 3Q14 Core capital CRD IV Fully-loaded Group BBVA (%) +5 bp
Slide 39: Risk: NPA and coverage ratio, real estate Spain
NPA ratio Coverage ratio Real Estate activity in Spain Risk: NPA and coverage ratio
Slide 40: Income statement: Real Estate Activity in Spain
BBVA | Income statement RE Real Estate Activity in Spain Net interest Income 28 Gross Income 90 Operating income 210 Loan-toss provisions 218 Provisions (net) and other gains (losses) -441 Other 12 Income Before Tax 881 598 Net Attributable Profit
Slide 41: Income statement Venezuela
Income statement Venezuela (Constant m€) * includes items such as the adjustment for hyperinflation in Venezuela
Slide 42: Customer Spreads
Customer Spreads Note: customer spreads: difference between lending yield and cost of deposits from customers * USA ex NY Business Activity
Slide 43: Third quarter results 2014
Angel Cano, BBVA^s President & Chief Operating Officer Madrid, October 29th 2014 Pendiente actualizar Third 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, th
Banco Bilbao Vizcaya Argentaria — Q3 2014 Earnings Presentation on 6ix