35 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, September 2017
Slide 1: BBVA Group Second Quarter 2017
BBVA Group Second Quarter 2017
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: Index
3 Index 01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights
Slide 4: 01. About BBVA
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 01. About BBVA BBVA’s global presence History of BBVA Main figures BBVA share Organizational chart Our team Presence in social media Social commitment Awards and recognitions
Slide 5: BBVA's global presence
5 BBVA’s global presence 01 About BBVA 02 Vision and aspiration 03 BBVA North America USA transformation Mexico journey 04 Results’ highlights Europe Germany Belgium South America Cyprus Argentina Spain Asia - Pacific Bolivia Finland China Brazil France Hong Kong Chile Holland Japan Colombia Italy S
Slide 6: More than 150 years of history
6 More than 150 years of history 01 About BBVA BBVA is the result of the merger of two major Spanish banking institutions 02 Vision and aspiration 03 BBVA transformation 1988 1998 1999 journey 04 Results’ highlights BBVA’s global presence Banco de Corporación Banco Bilbao Bilbao Bancaria de España V
Slide 7: More than 150 years of history
7 More than 150 years of history 01 About BBVA BBVA had significant growth since 1995 02 Vision and aspiration 1995 Banco Continental (Peru) 2005 Granahorrar (Colombia) 2013 Sale of (Panama) Probursa (México) Hipotecaria Nacional (Mexico) Sale of pension business in (Latam) 03 BBVA Sale of CNCB’s 5.
Slide 8: Main figures 1H17
8 Main figures 1H17 01 About BBVA 02 Vision and Earnings (€m) aspiration 03 BBVA 12,718 6,407 2,306 transformation Gross income Operating income Net attributable profit journey 04 Results’ highlights Balance sheet (€m) 702,429 54,727 424,405 394,626 Total assets Total equity Loans and advances Depos
Slide 9: BBVA share
9 BBVA share 01 About BBVA Listed on the main international BBVA’s capital ownership is 02 Vision and stock markets well diversified aspiration Shareholder breakdown Banks Non-resident 1.1% 03 BBVA Institutions transformation LONDON 56.4% 6.4% Employees journey NEW MADRID YORK 2.6% MEXICO 04 Results
Slide 10: Organizational chart
10 Organizational chart 01 About BBVA GROUP EXECUTIVE CHAIRMAN Francisco González 02 Vision and CEO Carlos Torres Vila aspiration 03 BBVA EXECUTION & PERFORMANCE NEW CORE COMPETENCIES RISK & FINANCE STRATEGY & CONTROL transformation Global Economics Regulation Corporate & Investment Banking Customer
Slide 11: Our team
11 Our team 01 About BBVA We are creating a culture, environment and ways of working where the 02 Vision and customer is at the center of everything we do aspiration 03 BBVA The best team A first class workforce transformation Our team is the cornerstone of our Our most valuable asset is a first cla
Slide 12: Presence in social media
12 Presence in social media 01 About BBVA BBVA’s commitment is to be where the people are, to listen and understand their needs and dreams. This is the reason that makes BBVA a cutting-edge entity in 02 Vision and aspiration social media 03 BBVA transformation Number of BBVA’s social media profiles
Slide 13: Social commitment
13 Social commitment 01 About BBVA 02 Vision and aspiration 03 BBVA Social transformation Financial Literacy Entrepreneurship Knowledge journey 04 Results’ highlights BBVA’s global presence Fronteras del History of BBVA Conocimiento Award Main figures BBVA share Organizational chart Our team Presenc
Slide 14: BBVA Social Impact in 2016
14 BBVA Social Impact in 2016 01 About BBVA 02 Vision and Wealth Generation Growth and Welfare Sustainable Development aspiration Contribution Contribution 03 BBVA 4,240 70 MILLION 40% transformation suppliers customers in 35 countries, of employees work in journey who invoiced 7,751 €m 12.4 digital
Slide 15: Awards and recognitions
15 Awards and recognitions 01 About BBVA Once more, BBVA’s differentiated management has been recognized 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights BBVA’s global presence History of BBVA Main figures BBVA share Organizational chart #1 mobile banking Our team Europ
Slide 16: 02. Vision and aspiration
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 02. Vision and aspiration Vision of the financial industry Our aspiration
Slide 17: Reshape of the financial industry
17 Reshape of the financial industry 01 About BBVA 02 Vision and Regulatory pressure and New players are Transforming technologies aspiration the impact in profitability entering the value chain and use of data 03 BBVA transformation journey Banks ROE Evolution1 (%) Big Data Cloud 04 Results’ highli
Slide 18: Shifting customers and needs
18 Shifting customers and needs 01 About BBVA 02 Vision and aspiration Shifting customers and needs 03 BBVA Banking anytime, anywhere transformation journey 04 Results’ highlights Used to digital experiences Expect proactive and personalized help in their finance management Interaction with multiple
Slide 19: Our aspiration
19 Our aspiration 01 About BBVA 02 Vision and aspiration Through an easy and Helping our customers to make convenient experience: DIY the best financial decisions 03 BBVA through digital channels or offering relevant advice transformation human interaction journey 04 Results’ highlights Strengthenin
Slide 20: 03. BBVA's Transformation Journey
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 03. BBVA´s Transformation Journey Our purpose and strategic priorities Our values Progress in our transformation
Slide 21: Defined strategic path
21 Defined strategic path 01 About BBVA 02 Vision and Our Purpose Six Strategic Priorities aspiration 03 BBVA To bring the age New standard in customer transformation experience journey of opportunity Drive digital sales 04 Results’ highlights to everyone New business models Optimize capital allocat
Slide 22: Our Values
22 Our Values 01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights Customer comes first We think big We are one team We are empathetic We are ambitious I am committed We have integrity We break the mold I trust others Our purpose and strategic priorities We me
Slide 23: Progress in our Transformation
23 Progress in our Transformation 01 About BBVA Products & Functionalities Relationship Model 02 Vision and aspiration EstarSeguros (Spain) Open Market Digital Loans MIA- Mobile Interactive 03 BBVA (USA) Assistant (Turkey) transformation BBVA Plan- Financial Goals journey Garanti Mobile Keyboard Exp
Slide 24: Digital Sales
24 Digital Sales 01 About BBVA Digital Sales (% of total sales YtD, # of transactions) 02 Vision and aspiration SPAIN MEXICO USA S. AMERICA TURKEY 03 BBVA 31.0 transformation 22.2 25.2 journey 17.1 24.7 16.0 19.4 15.4 22.5 50% tipping 11.9 point in digital 04 Results’ highlights Dec. Jun. Dec. Jun.
Slide 25: New business models
25 New business models 01 About BBVA 02 Vision and Acquisitions Investments (venture capital*) aspiration 03 BBVA 29.5% stake transformation journey Leveraging the 04 Results’ highlights Fintech ecosystem to develop our Open Platform Enable new developments combining BBVA’s APIs, client’s value prop
Slide 26: Leveraging technology
26 Leveraging technology 01 About BBVA In 2007 we began our transformation process 02 Vision and aspiration We have been working on our And now we are adapting to 03 BBVA platforms the new paradigms of transformation development journey Placing Front-Office / Channels Platform 04 Results’ highlights
Slide 27: Cultural change
27 Cultural change 01 About BBVA 02 Vision and aspiration Zero tolerance against low quality 03 BBVA transformation journey New ways of working: Agile, collaborative tools We are 04 Results’ highlights transforming the New headquarters organization internally by fostering a new Collaborative culture
Slide 28: At BBVA, we are accelerating our transformation
28 01 About BBVA 02 Vision and aspiration 03 BBVA At BBVA, we are transformation journey accelerating our 04 Results’ highlights transformation process to become the best bank for our customers Our purpose and strategic priorities Our values Progress in our transformation
Slide 29: 04. Results' highlights
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 04. Results’ highlights Highlights Business areas 2Q17
Slide 30: Highlights
30 Highlights 01 About BBVA NET ATTRIBUTABLE PROFIT 1H17 Growth in core revenues 02 Vision and +25.9% vs 1H16 Costs control 2,306 €m +30.8 aspiration Low cost of risk % constant € Solid capital generation 03 BBVA transformation journey GROSS INCOME OPERATING INCOME 1H17 1H17 04 Results’ highlights +
Slide 31: Profit & Loss
31 Profit & Loss 01 About BBVA Change 02 Vision and 1H17/1H16 aspiration BBVA Group (€m) 1H17 % % constant 03 BBVA Net Interest Income 8,803 5.2 9.6 transformation Net Fees and Commissions 2,456 4.5 8.0 journey Net Trading Income 1,069 -9.1 -2.4 04 Results’ highlights Other Income & Expenses 390 13.
Slide 32: Business areas: Spain, Non Core Real Estate, USA
32 Business areas 01 About BBVA SPAIN Banking activity 02 Vision and NET ATTRIBUTABLE PROFIT NPL RATIO NII excluding CIB remains stable in 1H. Lower 5.7% vs. 6.0% 2Q16 contribution from CIB due to Global Markets and 670 €m aspiration securities portfolio sales COVERAGE RATIO Good trend in fees and i
Slide 33: Business areas: Mexico, Turkey, South America
33 Business areas 01 About BBVA MEXICO constant € 02 Vision and NET ATTRIBUTABLE PROFIT NPL RATIO Sustained growth in all P&L lines 2.3% vs. 2.5% 2Q16 1,080 €m aspiration Excellent top line growth thanks to core revenues Positive operating jaws maintained, best in class 03 BBVA COVERAGE RATIO effici
Slide 34: CIB – 1H17 results
34 CIB – 1H17 results 01 About BBVA Business activity Client’s revenue Results 02 Vision and aspiration (constant €, % YTD) (constant €, % YoY) (constant €, % YoY) GROSS MARGIN 03 BBVA transformation LENDING (Gross) 1,283 €m +5.0% 1,461 €m +13.1% journey 53 €bn -2.4% NET MARGIN Wholesale 04 Results’
Slide 35: BBVA Group Second Quarter 2017
BBVA Group Second Quarter 2017