Banco Bilbao Vizcaya Argentaria, S.A. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — BBVA — Q3 2011 Earnings Presentation
42 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Oct 26, 2011
Slide 1: Third quarter results 2011
Third quarter results 2011 Ángel Cano, BBVA's President & COO October 26th 2011
Slide 2: Disclaimer
BBVA 3QN1 Results / October 26th 2011 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 d
Slide 3: A quarter in which volatility and uncertainty have further increased
A quarter in which volatility and uncertainty have further increased 1600 240 Eurostoxx 50 1400 220 1200 200 1000 180 800 160 600 140 400 120 200 100 0 80 Jan‐10 Mar‐10 May‐10 Jul‐10 Sep‐10 Nov‐10 Jan‐11 Mar‐11 May‐11 Jul‐11 Sep‐11
Slide 4: In the present environment attention centres on three aspects
In the present environment attention centres on three aspects … Capital adequacy 2 Funding 3 Ability to generate earnings
Slide 5: BBVA highlights: Capital adequacy
BBVA highlights Capital adequacy A) Substantial ability to generate capital organically B) Lower leverage than our peers Capital C) A track record of prudent and anticipatory management Stability despite deteriorating context of sector's Risks asset quality
Slide 6: A) Substantial ability to generate capital organically
A) Substantial ability to generate capital organically +15bp in the quarter • Organic generation with simultaneous increase in RWAs (+€53bn during the crisis) • Highly resilient operating income that could absorb sharp increases in provisions
Slide 7: B) Lower leverage than our peers
B) Lower leverage than our peers ’
Slide 8: C) A track record of prudent and anticipatory management
C) A track record of prudent and anticipatory management 2008 2009 2010 2011
Slide 9: Risk: stable NPAs despite deteriorating context of sector's asset quality
Risk: stable NPAs despite deteriorating context of sector's asset quality ...
Slide 10: ... whilst our main risk indicators are also stable
... whilst our main risk indicators are also stable Coverage ratio 62 62 61 61 60
Slide 11: BBVA highlights: Funding
BBVA highlights Funding Solid position to face 2012: The highest ratio of deposits / assets in the peer group with reduced liquidity gap Low wholesale redemptions compared to peer group
Slide 12: Solid Group funding position
Solid Group funding position . . .
Slide 13: ... and performance and outlook for the euro balance sheet are good
... and performance and outlook for the euro balance sheet are good Positive trends in 2011 Good outlook for 2012 2011 funding needs already covered Reduction in liquidity gap: -€20bn (Sep.11 vs May.10)
Slide 14: BBVA highlights: Ability to generate earnings
BBVA highlights Ability to generate earnings • Resilience and quality of net interest income • Net trading income affected by market volatility • Loan loss provisioning in line with recent quarters and stability in risk indicators
Slide 15: Positive performance of recurrent revenue
Positive performance of recurrent revenue 775 595 564 479 25 NTI + div. Resilience and quality of net Net trading income affected by interest income market volatility
Slide 16: Resilience and quality of net interest income
Resilience and quality of net interest income Emerging mkts Developed mkts
Slide 17: Net trading income affected by market volatility
Net trading income affected by market volatility Business focused on customers in a context of declining activity Significant falls in asset prices Æ impact on mark to market portfolios Absence of NTI in a context of weakening markets Negative impact mainly affects euro balance sheet and is less mar
Slide 18: Costs in line with previous quarters
Costs in line with previous quarters +5.1% excl. Garanti Contained in developed economies and matching the growth cycle in emerging ones
Slide 19: Provisioning in line with recent quarters
Provisioning in line with recent quarters Decline is the result of lower provisioning in the USA and unchanged in Spain
Slide 20: Resilience and solid fundamentals in difficult times
Resilience and solid fundamentals in difficult times Accum. Growth 9M11 / 9M10 BBVA Group 9M11 Abs. % M A M A M A R E R E ROE: 11.3% RORWA: 1.5%
Slide 21: Geographic areas: highlights
Geographic areas: highlights Spain EurAsia Mexico South America ’ United States Wholesale banking
Slide 22: Spain: stabilisation of net interest income
Spain: stabilisation of net interest income With market share gains in lending and deposits Excl. market
Slide 23: Spain: risk indicators under control
Spain: risk indicators under control Coverage ratio 47 44 43 43 42 Cum. Spec. risk premium Risks stable while system keeps deteriorating
Slide 24: Spain: income statement
Spain: income statement Accum. Growth 9M11 / 9M10 Spain 9M11 Abs. % M A M A M A R E R E
Slide 25: EurAsia: growing contribution to the group
EurAsia: growing contribution to the group Dynamism in Asia and Turkey and resilience in wholesale banking in Europe, in line with previous quarters
Slide 26: EurAsia: income statement
EurAsia: income statement Accum. Growth 9M11 / 9M10 EurAsia 9M11 Abs. % M A M A M A R E R E
Slide 27: Mexico: growth in all main items
Mexico: growth in all main items +8.9%* +9.6%
Slide 28: Mexico: income growing at good pace
Mexico: income growing at good pace The highest ratio of net interest income to ATAs in its peer group
Slide 29: Mexico: improvement in provisioning
Mexico: improvement in provisioning
Slide 30: Mexico: income statement
Mexico: income statement Accum. Growth 9M11 / 9M10 Mexico 9M11 Abs. % M A M A M A R E R E
Slide 31: South America: revenues are growing faster
South America: revenues are growing faster Record net interest income in quarter
Slide 32: South America: best risk indicators in the BBVA Group
South America: best risk indicators in the BBVA Group Coverage ratio 139 134 138 140 130 Cum. Risk premium
Slide 33: South America: income statement
South America: income statement Accum. Growth 9M11 / 9M10 South America 9M11 Abs. % M A M A M A R E R E
Slide 34: United States: selective growth of business
United States: selective growth of business Lending Customer funds +7% -37% +6% -21% YoY change. Average balances YoY change. Average balances Market share gains in lending Lower cost of deposits –
Slide 35: United States: improvement in customer spread
United States: improvement in customer spread
Slide 36: United States: risk levels continue to improve
United States: risk levels continue to improve Coverage ratio 67 69 61 64 59 Cum. risk premium Gross additions: -40% Recoveries / additions: 93%
Slide 37: United States: income statement
United States: income statement Accum. Growth 9M11 / 9M10 USA 9M11 Abs. % M A M A M A R E R E Attributable net profit excluding New York: +39.4%
Slide 38: Wholesale banking: recurrence and diversification of revenue
Wholesale banking: recurrence and diversification of revenue 5% 8% 16% 22% 11%
Slide 39: Wholesale banking: C&IB and GM
Wholesale banking: C&IB and GM Corporate & Global Markets Investment Banking Y0Y change 24 37 76 63 Strengthening the customer Dynamic revenue franchise
Slide 40: Wholesale banking: income statement
Wholesale banking: income statement Accum. Growth 9M11 / 9M10 Wholesale Banking 9M11 Abs. %
Slide 41: 3Q11 highlights
3Q11 highlights A) Capital: • • Capital adequacy • B) Risks: • Funding • • Ability to generate • earnings •
Slide 42: Third quarter results 2011
Third quarter results 2011 Ángel Cano, BBVA's President & COO October 26th 2011