43 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Apr 27, 2017
Slide 1: 1Q17 Results
1Q 2017 Results April 27th 2017 / 1 1Q17 Results April, 27th 2017 Carlos Torres Vila Chief Executive Officer
Slide 2: Disclaimer
1Q 2017 Results April 27th 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 d
Slide 3: Excellent Results in the Quarter
1Q 2017 Results April 27th 2017 / 3 Excellent Results in the Quarter Net Attributable Profit CET1 fully-loaded – BBVA Group Quarterly evolution (€m) Quarterly evolution (%) 1,199 1,123 +48 bps 965 709 11.00% 10.90% 11.01% 678 10.53% 10.72% +11 bps 1Q16 2Q16 3Q16 4Q16 1Q17 Mar.16 Jun.16 Sep.16 Dec.16
Slide 4: 1Q17 Highlights
1Q 2017 Results April 27th 2017 / 4 1Q17 Highlights Core revenues growth Cost control Net interest income and fees Gross income vs. Op. Expenses (€m constant) (YtD, %, €m constant) 5,546 5,077 15.0 +9.2% Gross Income 7.2 6.4 Operating 1.8 Expenses 1Q16 1Q17 12M16 3M17 Sound asset quality Strong Rele
Slide 5: Profit & Loss
1Q 2017 Results April 27th 2017 / 5 Profit & Loss Change 1Q17/1Q16 BBVA Group (€m) 1Q17 % % constant Net Interest Income 4,322 4.1 9.2 Net Fees and Commissions 1,223 5.4 9.4 Net Trading Income 691 93.5 n.s. Other Income & Expenses 146 23.6 -0.1 Gross Income 6,383 10.3 15.0 Operating Expenses -3,137
Slide 6: Earnings - Gross Income
1Q 2017 Results April 27th 2017 / 6 Earnings - Gross Income Net Interest Income Net Fees and Commissions (€m constant) (€m constant) +9.2% +9.4% 3,959 4,059 4,161 4,318 4,322 1,118 1,154 1,181 1,151 1,223 +0.1 % +6.3% Good trend in Significant all areas growth rate 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16
Slide 7: Operating Expenses
1Q 2017 Results April 27th 2017 / 7 Operating Expenses Group Operating Jaws 1Q17 vs. 1Q16 YTD (%); (€m constant) Ex-CNCB: (€m constant) 11.3% Inflation 15.0% 12.1% Developed Gross Income 8.8% 2.3% 7.1% 7.2% SPAIN* -4.0% 6.4% 6.4% Operating Expenses USA -0.9% 2.7% 3.8% 1.4% 1.8% 3M16 6M16 9M16 12M16
Slide 8: Earnings - Operating Income
1Q 2017 Results April 27th 2017 / 8 Earnings - Operating Income 1Q17 vs. 1Q16 1Q17 vs. 1Q16 (€m constant) (€m constant) +31.5 % SPAIN BANKING ACTIVITY +22.6% 3,246 USA +20.8% 3,133 2,878 2,954 2,469 MEXICO +16.9% +9.9 % TURKEY +28.7% SOUTH AMERICA +3.5% 1Q16 2Q16 3Q16 4Q16 1Q17 Growth in all areas
Slide 9: Risk Indicators
1Q 2017 Results April 27th 2017 / 9 Risk Indicators Total Impairments (Financial Assets and RE) NPLs (€m constant) (€bn) -6.1 % - 2.3 € bn 1,067 1,113 1,043 1,002 972 25.5 24.8 -+3.1 % 24.3 23.6 23.2 - 0.4 € bn 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Cost of risk NPL & Coverage ratios YTD
Slide 10: Capital Ratios
1Q 2017 Results April 27th 2017 / 10 Capital Ratios CET1 fully-loaded – BBVA Group High quality capital QoQ Evolution (%, bps) (%) RWAs/ Total Assets +11 bps 54% #1 CET1 31% 30 bps 6 bps phased-in 11.01% 11.64% 10.90% - 12 bps - 13 bps Leverage ratio fully-loaded % CET1 FL Net Earnings Dividends Oth
Slide 11: Transformation Focused on our Customers
1Q 2017 Results April 27th 2017 / 11 Transformation Focused on our Customers Above the Glass Customer Experience Revenue Digital Sales streams Advisory Relationship Model Below the Glass Operations Efficiencies Technology and Platforms Agile Organization
Slide 12: Digital Customers
1Q 2017 Results April 27th 2017 / 12 Digital Customers Digital Customers– BBVA Group Mobile Customers – BBVA Group (Million, % penetration) (Million, % penetration) +20% +41% 18.4 19.3 16.0 12.4 13.5 9.6 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Penetration 34% 38% 39% Penetration 20% 25% 28% Paragu
Slide 13: Digital Sales
1Q 2017 Results April 27th 2017 / 13 Digital Sales (% of total sales YtD, # of transactions) SPAIN MEXICO SOUTH AMERICA 24.0 13.6 22.3 17.1 11.9 15.4 Dec-16 Mar-17 Dec-16 Mar-17 Dec-16 Mar-17 USA TURKEY 21.7 30.1 19.4 25.2 Dec-16 Mar-17 Dec-16 Mar-17 Figures have been restated due to changes in the
Slide 14: Customer Experience Improvements in the Quarter
1Q 2017 Results April 27th 2017 / 14 Customer Experience Improvements in the Quarter Relationship Model Products & Functionalities Fast Track in Branches BBVA Cashup (Spain) One Click Credit Card (Spain) (Argentina) “Mis recibos” App New Public Web (Spain) On/Off Buttom for (USA) Debit Cards (Chile)
Slide 15: Business Areas
1Q 2017 Results April 27th 2017 / 15 01 Business Areas
Slide 16: Spain Banking Activity – Profit & Loss
1Q 2017 Results April 27th 2017 / 16 Spain Banking Activity – Profit & Loss Change Change Spain Banking Activity 1Q17/1Q16 1Q17/4Q16 (€m) 1Q17 % % Net Interest Income 935 -2.4 -3.8 Net Fees and Commissions 382 -1.4 8.6 NII negatively impacted by CIB business Net Trading Income 224 n.s. 28.4 (lower c
Slide 17: Spain Banking Activity – Activity & Spreads
1Q 2017 Results April 27th 2017 / 17 Spain Banking Activity – Activity & Spreads Activity (mar-17) Customer Spread (%) YtD YtD -1.1% -0.5% € bn YoY € bn YoY 167.3 -3.3% 229.7 +0.4% Yield on loans Others 4.1 +1.9% Others 3.5 -69.8% Public Sector 18.1 -12.0% Off-balance 2.17 2.12 2.13 Sheet Funds2 57.
Slide 18: Spain Banking Activity - Key Ratios
1Q 2017 Results April 27th 2017 / 18 Spain Banking Activity - Key Ratios Efficiency Risk Indicators (%) 43.0 Coverage ratio 33.0 59% 57.1 54.5 54.4 55.8 51.0 23.0 53% 53% 16.8 10.5 13. 0 6.1 4.0 NPL ratio 6.4% 3.0 5.8% 5.8% -4.0 -7.0 3M16 6M16 9M16 12M16 3M17 Cost of Risk 0.4% 0.4% Cost-to-income ra
Slide 19: Non Core Real Estate - Highlights
1Q 2017 Results April 27th 2017 / 19 Non Core Real Estate - Highlights Net exposure Net attributable profit (€bn) (€m) -9.0% -3.8% 10.2 1Q16 2Q16 3Q16 4Q16 1Q17 Other RE assets 1.1 9.3 RE owned 0.6 -48.0% assets Foreclosed assets 5.3 5.0 -5.4% -113 -94 -108 -109 RE developer loans 3.8 3.7 -2.9% -280
Slide 20: USA – Profit & Loss
1Q 2017 Results April 27th 2017 / 20 USA – Profit & Loss Change Change USA 1Q17/1Q16 1Q17/4Q16 (constant €m) 1Q17 % % Net Interest Income 535 8.2 -0.6 Net Fees and Commissions 175 15.5 8.8 Net Trading Income 33 -31.2 32.5 Other Income & Expenses -12 n.s. -36.7 Strong start to the year Gross Income 7
Slide 21: USA – Activity & Spreads
1Q 2017 Results April 27th 2017 / 21 USA – Activity & Spreads Activity (mar-17) Customer Spread* (constant €) (%) € bn YoY € bn YoY 60.6 -4.0% 61.9 -3.4% Yield on loans Public Sector 4.8 +2.4% 3.75 3.92 Time 11.8 -24.1% 3.64 3.66 3.70 Deposits Other 3.57 3.23 3.31 3.37 Commercial 31.7 -4.9% 3.26 Dem
Slide 22: USA - Key Ratios
1Q 2017 Results April 27th 2017 / 22 USA - Key Ratios Efficiency Risk Indicators (constant €, %) 10.0 8.0 Coverage ratio 107% 103% 68.6 68.1 68.1 68.1 64.2 94% 6.0 4.3 4.0 2.8 2.5 1.7 NPL ratio 1.4% 1.5% 2.0 1.3% 0. 0 -0.9 -2.0 Cost of Risk 0.6% 3M16 6M16 9M16 12M16 3M17 (YtD) 0.5% 0.4% Cost-to-inco
Slide 23: Mexico – Profit & Loss
1Q 2017 Results April 27th 2017 / 23 Mexico – Profit & Loss Change Change Mexico 1Q17/1Q16 1Q17/4Q16 (constant €m) 1Q17 % % Net Interest Income 1,287 8.4 0.5 Net Fees and Commissions 281 12.0 -5.0 Net Trading Income 73 82.3 -7.9 Other Income & Expenses 69 53.5 -48.5 Improved macro perspective, recov
Slide 24: Mexico – Activity & Spreads
1Q 2017 Results April 27th 2017 / 24 Mexico – Activity & Spreads Activity (mar-17) Customer Spread (constant €) (%) € bn YoY € bn YoY 50.0 +9.8% 67.0 +6.8% Yield on loans Others 2.9 -16.7% 12.62 11.78 11.66 12.16 11.79 Others 0.5 Mutual +8.8% Funds 17.8 +3.6% Public Sector 4.0 +3.1% Time 10.94 11.31
Slide 25: Mexico - Key Ratios
1Q 2017 Results April 27th 2017 / 25 Mexico - Key Ratios 23.0 Efficiency Risk Indicators (constant €, %) 18.0 36.2 36.2 36.2 35.4 33.6 127% 128% 13. 0 8.9 Coverage ratio 119% 9.2 7.9 7.2 8.0 4.2 2.6% 3.0 2.3% 2.3% -2.0 NPL ratio 3M16 6M16 9M16 12M16 3M17 Cost-to-income ratio Cost Evolution YoY Cost
Slide 26: Turkey – Profit & Loss
1Q 2017 Results April 27th 2017 / 26 Turkey – Profit & Loss Change Change Turkey 1Q17/1Q16 1Q17/4Q16 (constant €m) 1Q17 % % Net Interest Income 812 27.0 2.0 Net Fees and Commissions 171 14.6 22.3 Net Trading Income -15 n.s. -60.4 Other Income & Expenses 9 3.6 15.7 Gross Income 976 21.3 7.9 Outstandi
Slide 27: Turkey – Activity & Spreads
1Q 2017 Results April 27th 2017 / 27 Turkey – Activity & Spreads Activity (mar-17) Customer Spread (constant €) (%) € bn YoY € bn YoY 56.1 +19.6% 50.8 +15.4% Yield on loans 9.90 10.02 10.28 10.14 9.56 Mutual & Business 34.2 +21.0% Pension Funds 3.8 +24.6% Customer Spreads Banking 5.51 5.75 5.87 5.87
Slide 28: Turkey - Key Ratios
1Q 2017 Results April 27th 2017 / 28 Turkey - Key Ratios Efficiency Risk Indicators 40. 0 (constant €, %) 35.0 30.0 Coverage ratio 129% 128% 124% 43.3 25.0 38.7 39.1 40.8 39.8 20.0 Inflation 11.3 13.4 2.8% NPL ratio 2.7% 15. 0 11.5 2.6% 7.8 7.9 10.0 6.5 5.0 0. 0 0.9% 0.9% 3M16 6M16 9M16 12M16 3M17 0
Slide 29: South America – Profit & Loss
1Q 2017 Results April 27th 2017 / 29 South America – Profit & Loss Change Change South America 1Q17/1Q16 1Q17/4Q16 (constant €m) 1Q17 % % Net Interest Income 807 8.3 3.4 Net Fees and Commissions 176 20.5 3.5 Net Trading Income 115 -15.3 25.3 Other Income & Expenses 5 21.8 -89.3 Drop in bottom line d
Slide 30: South America – Activity & Spreads
1Q 2017 Results April 27th 2017 / 30 South America – Activity & Spreads Activity (mar-17) Customer Spread (constant €) (%) YoY € bn YoY Argentina € bn 49.3 +6.1% 62.4 +12.0% 15.91 16.43 15.84 15.81 15.59 Peru Others 12.3 +11.2% 7.33 7.37 7.17 7.13 Others 3.4 +0.6% 6.98 Peru 13.8 -1.3% Peru 15.0 +4.8
Slide 31: South America – Key Ratios
1Q 2017 Results April 27th 2017 / 31 South America – Key Ratios Efficiency Risk Indicators (constant €, %) 46.4 46.3 48.1 Coverage ratio 45.8 46.2 30.0 118% 103% 25.0 96% 17.1 16.2 20.0 16.3 Inflation 15.8 13.3 NPL ratio 15. 0 11.0 3.3% 10.0 2.9% 2.6% 5.0 1.5% 0. 0 1.2% 1.1% Cost of Risk 3M16 6M16 9
Slide 32: 1Q17 Key Takeaways
1Q 2017 Results April 27th 2017 / 32 1Q17 Key Takeaways 1. Strong start to the year Growth in core revenues Costs control Low cost of risk Strong capital generation 2. Progressing in our transformation 3. Improved macro outlook
Slide 33: Annex
1Q 2017 Results April 27th 2017 / 33 02 Annex
Slide 34: Gross Income - Breakdown
1Q 2017 Results April 27th 2017 / 34 Gross Income - Breakdown 3M17 Spain 1,655 €m Rest of Eurasia 135 €m 26% 2% USA 12% 732 €m South America 1,104 €m 17% 15% Turkey 976 €m 27% Mexico 1,710 €m Note: Spain includes the areas Banking activity in Spain and Non Core Real Estate. Figures exclude Corporate
Slide 35: Group – Net attributable profit
1Q 2017 Results April 27th 2017 / 35 Group – Net attributable profit (€m) BUSINESSES +360 €m 168 1,199 86 -18 50 23 83 132 4 709 -40 1Q16 €m FX Banking Non core RE USA Turkey Rest of Mexico South Corporate 1Q17 €m Effect activity Eurasia America Center Spain YoY (%) 54.2 -3.8 n.s. 45.7 n.s. 19.2 -8.
Slide 36: Non Core Real Estate - Profit & Loss
1Q 2017 Results April 27th 2017 / 36 Non Core Real Estate - Profit & Loss Change Change 1Q17/1Q16 1Q17/4Q16 Non Core Real Estate (€m) 1Q17 % % Net Interest Income 10 -63.5 -41.6 Net Fees and Commissions 2 86.8 84.3 Net Trading Income 0 -99.4 n.s. Other Income & Expenses -32 n.s. n.s. Gross Income -2
Slide 37: Rest of Eurasia - Profit & Loss
1Q 2017 Results April 27th 2017 / 37 Rest of Eurasia - Profit & Loss Change Change 1Q17/1Q16 1Q17/4Q16 Rest of Eurasia (€m) 1Q17 % % Net Interest Income 46 10.5 6.8 Net Fees and Commissions 41 -3.4 -32.0 Net Trading Income 48 98.3 n.s. Other Income & Expenses 1 -55.4 -79.7 Gross Income 135 23.8 9.3
Slide 38: Corporate Centre - Profit & Loss
1Q 2017 Results April 27th 2017 / 38 Corporate Centre - Profit & Loss Change Change 1Q17/1Q16 1Q17/4Q16 Corporate Center (€m) 1Q17 % % Net Interest Income -110 -18.1 -1.4 Net Fees and Commissions -5 -55.2 -83.0 Net Trading Income 213 n.s. 93.6 Other Income & Expenses -28 -4.0 n.s. Gross Income 71 n.
Slide 39: Capital Base
1Q 2017 Results April 27th 2017 / 39 Capital Base Evolution of phased-in capital ratios Evolution of fully-loaded capital ratios (%) (%) 15.1 15.3 15.0 14.7 Tier 2 2,3 2,4 2.2 Tier 2 2.5 Additional Tier 1 0.7 1,2 1.6 1.5 Additional Tier 1 CET1 12,2 11,6 CET1 10.9 11.0 Dec-16 Mar-17 Dec-16 Mar-17
Slide 40: Risk-Weighted Assets by Business Area
1Q 2017 Results April 27th 2017 / 40 Risk-Weighted Assets by Business Area Phased-in RWA Breakdown by business area and main countries (€m) Dec-16 Mar-17 Banking activity in Spain 113,194 110,739 Non core Real Estate Activity 10,870 10,777 United States 65,492 64,800 Turkey 70,337 70,387 Mexico 47,8
Slide 41: ALCO Portfolio
1Q 2017 Results April 27th 2017 / 41 ALCO Porfolio ALCO Portfolio breakdown by region (€ bn) € 61.5 bn € 58.8 bn South America 2.9 South America 3.3 Mexico 5.9 Mexico 6.1 USA 11.4 USA 11.3 Turkey 10.5 Turkey 10.2 Euro (1) 30.8 Euro (1) 27.9 Dec-16 Mar-17 (1) Figures excludes SAREB bonds (€5.2bn for
Slide 42: Customer Spreads
1Q 2017 Results April 27th 2017 / 42 Customer Spreads Average (€) 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Spain 1.79% 1.76% 1.84% 1.82% 1.83% Chile 3.46% 3.90% 3.61% 3.54% 3.69% Yield on Loans 2.17% 2.12% 2.13% 2.10% 2.03% Yield on Loans 6.64% 7.19% 6.60% 6.37% 6.36% Cost of Deposits -0.38
Slide 43: 1Q17 Results
1Q 2017 Results April 27th 2017 / 43 1Q17 Results April, 27th 2017 Carlos Torres Vila Chief Executive Officer