Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — BBVA — FY2016 Earnings Presentation
48 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Feb 1, 2017
Slide 1: 2016 Results
2016 Results February, 1st 2017 Carlos Torres Vila Chief Executive Officer
Slide 2: Disclaimer
2016 Results February 1st 2017 / 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 de
Slide 3: Good Results Despite Challenging Environment
2016 Results February 1st 2017 / 3 Good Results Despite Challenging Environment Net Attributable Profit Net Attributable Profit Quarterly evolution (€m) 12M16 vs. 12M15 (€m) Ex-mortgage Ex corporate floor clauses Ex-mortgage provisions floor clauses operations provisions 3,857 3,879 1,123 1,082 Corp
Slide 4: 12M16 Good Set of Results
2016 Results February 1st 2017 / 4 12M16 Good Set of Results TOTAL GROUP WITH GARANTI LIKE-FOR-LIKE BASIS 01 NII positive performance NII (€m constant): +7% vs. 12M15 Efficiency: 51.9% 02 Positive jaws due to cost control efforts -51 b.p. vs. 12M15 (€m constant) CoR: 0.84%; -22 b.p. vs 2015 03 Sound
Slide 5: 12M16 Summary
2016 Results February 1st 2017 / 5 Total Group with Garanti 12M16 Summary Like-for-like Basis Change Change 12M16/12M15 12M16/12M15 BBVA Group (€m) 12M16 % % constant % % constant Net Interest Income 17,059 3.9 14.9 -3.6 7.0 Net Fees and Commissions 4,718 0.3 8.5 -5.6 2.5 Net Trading Income 2,132 6.
Slide 6: Shareholder remuneration policy
2016 Results February 1st 2017 / 6 Shareholder remuneration policy • Going forward 100% of the dividend to be paid in cash • Last scrip dividend would be paid in April 2017 (13 cents. / share), subject to proposal to and approval from the corporate bodies • Pay – out in cash: between 35% - 40% of th
Slide 7: 4Q16 Consolidates Trend from Previous Quarter
2016 Results February 1st 2017 / 7 4Q16 Consolidates Trend from Previous Quarter Net interest Positive jaws Solid asset Strong income growth quality capital ratios Net interest income Gross income vs. Op. Expenses Cost of risk Core Capital CRD IV (€m constant) 12M16 vs. 9M16 (%), €m constant (Quarte
Slide 8: 4Q16 Summary
2016 Results February 1st 2017 / 8 4Q16 Summary Change 4Q16/4Q15 BBVA Group (€m) 4Q16 % % constant Net Interest Income 4,385 -0.7 7.4 Net Fees and Commissions 1,161 -8.1 -1.4 Net Trading Income 379 -15.9 -2.5 Other Income & Expenses 297 n.s. n.s. Gross Income 6,222 1.2 9.7 Operating Expenses -3,243
Slide 9: Earnings - Gross Income
2016 Results February 1st 2017 / 9 Earnings - Gross Income Net Interest Income +7.0% Net Fees and Commissions +2.5% 12M16 vs. 12M15* (€m constant) 12M16 vs. 12M15* (€m constant) +7.4% 4,168 4,077 4,191 4,312 4,479 -1.4% +3.9 % 1,195 1,145 1,185 1,210 1,179 Growth rate -2.6 % Lower market improvement
Slide 10: Earnings - Operating Expenses
2016 Results February 1st 2017 / 10 Earnings - Operating Expenses Group Operating Jaws Efficiency Ratio YTD (%); (€m constant) 66.2% 12.2% 52.4% 51.9% 9.3% 8.9% 7.2% 7.7% Gross Income Operating Expenses -51b.p 7.7% 7.0% 6.6% 4.4% 1.8% Positive jaws Efficiency 12M15 3M16 6M16 9M16 12M16 12M15 12M16 A
Slide 11: Earnings - Operating Income
2016 Results February 1st 2017 / 11 Earnings - Operating Income 4Q16 vs. 4Q15 4Q16 vs. 4Q15 (€m constant) (€m constant) +15.5 % 8.9% SPAIN* +17.2% 12M16 vs. 12M15* 3,260 VISA disposal 225 2,991 3,048 USA +11.9% 2,638 2,563 TURKEY +6.2% +1.9 % MEXICO +22.8% SOUTH AMERICA -3.2% (*) Spain includes bank
Slide 12: Risk - Sound Asset Quality
2016 Results February 1st 2017 / 12 Risk - Sound Asset Quality Financial Assets & RE Impairments(1) NPLs (€m constant) (€bn) - 8.1 % - 2.4 € bn 1,150 1,081 1,089 1,077 993 26.0 25.5 24.8 24.3 -7.8 % 23.6 - 0.7 € bn 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16 Cost of risk & RE Assets(1)(2) NPL
Slide 13: Capital - Strong Capital Ratios
2016 Results February 1st 2017 / 13 Capital - Strong Capital Ratios CET1 fully-loaded – BBVA Group High quality capital Evolution (%, bps) (%) +58 bps RWAs/ Total Assets 10.72% 11.00% 10.90% 10.32% 10.53% -10bps 53% #1 31% Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 QoQ Evolution (%, bps) CET1 phased-in: 12.
Slide 14: Growing our Digital Customer Base
2016 Results February 1st 2017 / 14 Growing our Digital Customer Base Digital Customers– BBVA Group Mobile Customers – BBVA Group (Million, % penetration) (Million, % penetration) +20% +38% 18.4 17.4 12.4 15.4 11.2 9.0 Dec-15 Sep-16 Dec-16 Dec-15 Sep-16 Dec-16 Penetration 33% Penetration 19% 36% 38%
Slide 15: Driving Digital Sales Across All Franchises
2016 Results February 1st 2017 / 15 Driving Digital Sales Across All Franchises Digital Sales (% of total sales YtD, # of transactions) SPAIN MEXICO* SOUTH AMERICA 17.1 15.2 11.9 8.4 9.0 6.2 Dec-15 Dec-16 Dec-15 Dec-16 Dec-15 Dec-16 USA TURKEY 19.9 26.1 9.3 23.4 Dec-15 Dec-16 Dec-15 Dec-16 (*) Figur
Slide 16: Net Promoter Score (NPS)
2016 Results February 1st 2017 / 16 Net Promoter Score (NPS) BBVA (Dec-16) Rnk #1 Spain Channel Ranking(1) NPS(2) Change vs. 2015 #1 Mobile App 1º 63% +20 pp #1 Online Bank 1º 43% +2 pp #1 1º ATMs 39% +10 pp #1 Branches 1º 32% +14 pp #1 #1 Peer Group: Spain: Santander,CaixaBank, Bankia, Sabadell, Po
Slide 17: Digital Onboarding
2016 Results February 1st 2017 / 17 Digital Onboarding Spain
Slide 18: Digital Auto Credit
2016 Results February 1st 2017 / 18 Digital Auto Credit Mexico
Slide 19: Seamless Technology for Enterprise Platform (STEP)
2016 Results February 1st 2017 / 19 Seamless Technology for Enterprise Platform (STEP) Turkey
Slide 20: 4Q16 Customer Experience Improvement
2016 Results February 1st 2017 / 20 4Q16 Customer Experience Improvement Customer Experience Relationship Model Products & Functionalities GarantiOne – Digital Mobile App Adaptation Gifting (Turkey) (Argentina and Chile) Digital onboarding (Spain) Digital Auto Credit Personal Financial and Mortgages
Slide 21: Successful Deployment of our Strategy
2016 Results February 1st 2017 / 21 Successful Deployment of our Strategy 1 New standard in customer experience 2 Digital sales 3 New business models Deliver new products and Digital and mobile customer base and digital sales growth New revenue streams functionalities improving CX 4 Optimal capital
Slide 22: Business Areas
2016 Results February 1st 2017 / 22 Business Areas
Slide 23: Spain Banking Activity - Highlights
2016 Results February 1st 2017 / 23 Spain Banking Activity - Highlights P&L Activity (dec-16) Change Change Change Spain Banking Activity 4Q16/4Q15 4Q16/3Q16 2016/2015 (€m) 4Q16 % % 2016 % € bn YoY € bn YoY 169.2 -2.9% 227.4 +2.6% Net Interest Income 971 -3.0 0.3 3,883 -2.9 Others 5.2 -30.3% Net Fee
Slide 24: Spain Banking Activity - Key Ratios
2016 Results February 1st 2017 / 24 Spain Banking Activity - Key Ratios Customer Spread Risk Indicators Evolution of Expenses (%) Coverage ratio Yield on loans 9.8 2.27 2.16 59% 58% 9.3 2.12 2.12 2.08 53% 8.8 Customer Spreads 8.3 3Q16 4Q16 1.76 1.77 1.75 1.83 1.80 NPL ratio 7.8 vs 2Q16 vs 3Q16 7.3 6
Slide 25: Spain Real Estate Activity - Highlights
2016 Results February 1st 2017 / 25 Spain Real Estate Activity - Highlights Net attributable profit Net exposure (€m) (€bn) -16.8% 2015 2016 -496 12.4 -459 Other foreclosed assets 0.7 Foreclosed assets from 10.3 2.3 residential mortgages 0.9 +23.2% -22.5% Foreclosed assets from RE 1.7 developers 3.6
Slide 26: Total Spain - Results
2016 Results February 1st 2017 / 26 Total Spain - Results Change Change Change 4Q16/4Q15 4Q16/3Q16 2016/2015 Total Spain (€m) 4Q16 % % 2016 % Net Interest Income 988 -5.3 1.7 3,943 -3.2 Net Fees and Commissions 360 -6.8 -3.6 1,506 -6.3 Net Trading Income 172 -14.3 -22.4 784 -22.9 Other Income & Expe
Slide 27: USA - Highlights
2016 Results February 1st 2017 / 27 USA - Highlights P&L Activity (dec-16) (constant €) Change Change Change € bn YoY € bn YoY USA 4Q16/4Q15 4Q16/3Q16 2016/2015 62.1 -1.7% 63.2 +1.7% (constant €m) 4Q16 % % 2016 % Net Interest Income 519 11.8 6.5 1,953 7.6 Public Sector 4.6 +0.1% Net Fees and Commiss
Slide 28: USA - Key Ratios
2016 Results February 1st 2017 / 28 USA - Key Ratios Customer Spread* Risk Indicators Efficiency 10.0 (%) (constant €, %) 9.0 Coverage ratio 8.0 Yield on loans 151% 3.64 3.68 68.7 68.6 68.1 68.1 68.1 7.0 3.49 3.60 3.61 103% 6.0 90% 94% 3.25 3.30 87% 4.2 5.0 3.10 3.19 3.21 Customer Spreads NPL ratio
Slide 29: Turkey - Highlights
2016 Results February 1st 2017 / 29 Turkey - Highlights P&L Activity (dec-16) (constant €) Change Change Change Turkey 4Q16/4Q15 4Q16/3Q16 2016/2015 € bn YoY € bn YoY (constant €m) 4Q16 % % 2016 % 56.0 +17.2% 46.4 +15.1% Net Interest Income 938 15.5 4.2 3,404 10.6 Mutual & 3.8 +21.0% Pension Funds N
Slide 30: Turkey - Key Ratios
2016 Results February 1st 2017 / 30 Turkey - Key Ratios Customer Spread Risk Indicators Efficiency 40.0 (%) (constant €, %) 35.0 Coverage ratio Yield on loans 9.90 10.02 10.28 30.0 9.21 9.56 129% 125% 124% 45.9 43.3 25.0 Customer Spreads 38.7 39.1 40.8 5.26 5.59 5.72 18.2 20.0 4.73 4.66 NPL ratio 13
Slide 31: Mexico - Highlights
2016 Results February 1st 2017 / 31 Mexico - Highlights P&L Activity (dec-16) Change Change Change Mexico 4Q16/4Q15 4Q16/3Q16 2016/2015 € bn YoY € bn YoY (constant €m) 4Q16 % % 2016 % 45.9 +13.3% 61.1 +8.4% Net Interest Income 1.340 11,1 3,9 5.126 11,6 Others 2.8 -12.9% Net Fees and Commissions 309
Slide 32: Mexico - Key Ratios
2016 Results February 1st 2017 / 32 Mexico - Key Ratios Customer Spread Risk Indicators Efficiency (%) (constant €, %) Coverage ratio Yield on loans Cost to income ratio (1) 122% 127% 11.71 11.78 11.66 11.79 12.16 120% 56.4% 35.4% 10.71 10.79 10.64 10.66 10.94 NPL ratio Customer Spreads 2.6% 2.5% 2.
Slide 33: South America - Highlights
2016 Results February 1st 2017 / 33 South America - Highlights P&L Activity (dec-16) (constant €) Change Change Change South America 4Q16/4Q15 4Q16/3Q16 2016/2015 € bn YoY € bn YoY (constant €m) 4Q16 % % 2016 % 49.3 +7.3% 60.2 +14.2% Net Interest Income 761 10.2 4.0 2,930 11.4 Net Fees and Commissio
Slide 34: South America - Key Ratios
2016 Results February 1st 2017 / 34 South America - Key Ratios Customer Spread Risk Indicators Efficiency 45.0 (%) (constant €, %) Coverage ratio 40.0 15.2 Inflation 35.0 Yield on loans 123% 9.97 10.46 10.28 10.14 9.70 110% 46.5 46.6 46.7 30.0 103% 43.9 46.0 25.0 Customer Spreads NPL ratio 6.52 6.35
Slide 35: 2017 Outlook
2016 Results February 1st 2017 / 35 2017 Outlook Resilience despite macro uncertainties Spain: Expenses and provisions reduction as the main P&L drivers USA: Solid NII growth (rising interest rates and focus on profitable growth) Mexico and Turkey: Despite challenges, the franchises will deliver sol
Slide 36: Annex
2016 Results February 1st 2017 / 36 Annex
Slide 37: Gross Income - Breakdown
2016 Results February 1st 2017 / 37 Gross Income - Breakdown Gross Income 12M16 Spain 6,439 €m Rest of Eurasia 491 €m 26% 2% USA 11% 2,706 €m South America 4,054 €m 16% 17% Turkey 27% 4,257 €m Mexico 6,766 €m Note: Figures exclude Corporate Center
Slide 38: Group - Earnings
2016 Results February 1st 2017 / 38 Group - Earnings Net attributable profit (€m) BUSINESSES +121 €m 1,109 3,475 196 9 0 -174 -99 173 76 -60 2,642 106 -502 12M15 €m Garanti FX Corp. Banking RE USA Turkey Rest of Mexico South Corporate 12M16 €m like-for- Effect Operations activity activity Eurasia Am
Slide 39: Real Estate Activity in Spain - Results
2016 Results February 1st 2017 / 39 Real Estate Activity in Spain - Results Change Change Change 4Q16/4Q15 4Q16/3Q16 2016/2015 Spain Real Estate Activity (€m) 4Q16 % % 2016 % Net Interest Income 16 -60.8 n.s. 60 -16.2 Net Fees and Commissions 1 n.s. -63.4 6 n.s. Net Trading Income -2 n.s. n.s. -3 n.
Slide 40: Real Estate Activity in Spain - Risk
2016 Results February 1st 2017 / 40 Real Estate Activity in Spain - Risk Coverage ratio 63% 63% 61% 59% 59% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 NPL ratio 57.1% 56.3% 56.1% 50.8% 50.5% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Slide 41: Rest of Eurasia - Results
2016 Results February 1st 2017 / 41 Rest of Eurasia - Results Change Change Change 4Q16/4Q15 4Q16/3Q16 2016/2015 Rest of Eurasia (€m) 4Q16 % % 2016 % Net Interest Income 42 -20.2 14.0 166 -9.7 Net Fees and Commissions 60 26.7 41.1 194 13.8 Net Trading Income 17 -12.9 82.0 87 -30.3 Other Income & Exp
Slide 42: Corporate Centre - Results
2016 Results February 1st 2017 / 42 Corporate Centre - Results Change Change Change 4Q16/4Q15 4Q16/3Q16 2016/2015 Corporate Centre (€m) 4Q16 % % 2016 % Net Interest Income -110 9.4 4.5 -461 8.7 Net Fees and Commissions -35 85.0 18.3 -133 32.3 Net Trading Income 111 n.s. -29.0 356 n.s. Other Income &
Slide 43: Capital Ratio YoY Evolution
2016 Results February 1st 2017 / 43 Capital Ratio YoY Evolution CET1 fully-loaded – BBVA Group YoY Evolution (%, bps) +58 bps 89 bps 1 bps 10.90% 10.32% - 32 bps % CET1 FL Net Earnings Dividends Others % CET1 FL (Dec.15) (Dec.16)
Slide 44: Capital Base
2016 Results February 1st 2017 / 44 Capital Base Evolution of phased-in capital ratios Evolution of fully-loaded capital ratios (%) (%) 15.0 16.0 15.6 15.1 14.4 14.7 3,0 2,3 3.0 Tier 2 2,9 Tier 2 2.8 2.2 0,7 0,7 Additional Tier 1 1.5 1.6 Additional Tier 1 1.3 CET1 12,1 12,3 12,2 10.3 11.0 10.9 CET1
Slide 45: Risk-Weighted Assets by Business Area
2016 Results February 1st 2017 / 45 Risk-Weighted Assets by Business Area Phased-in RWA Breakdown by business area and main countries (€m) 15-Dec 16-Dec Banking activity in Spain 121,889 113,048 Real-estate activity in Spain 14,606 10,988 United States 60,092 65,445 Turkey 73,207 70,337 Mexico 50,33
Slide 46: ALCO Porfolio
2016 Results February 1st 2017 / 46 ALCO Porfolio ALCO Portfolio breakdown by region (€ bn) € 65.3 bn € 61.5 bn South America 3.1 2.9 South America Mexico 5.8 5.9 Mexico USA 10.5 USA 11.4 Turkey 10.9 Turkey 10.5 Euro (1) 35.0 Euro (1) 30.8 Sep-16 Dec-16 (1) Figure excludes SAREB bonds (€5.5bn as of
Slide 47: Customer Spreads
2016 Results February 1st 2017 / 47 Customer Spreads Average (€) 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16 Spain 1.76% 1.77% 1.75% 1.83% 1.80% Chile 4.05% 3.46% 3.90% 3.61% 3.54% Yield on Loans 2.27% 2.16% 2.12% 2.12% 2.08% Yield on Loans 7.10% 6.64% 7.19% 6.60% 6.37% Cost of Deposits -0.51%
Slide 48: 2016 Results
2016 Results February, 1st 2017 Carlos Torres Vila Chief Executive Officer