Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Debt Investor Presentation (February 2022)
52 slides from Banco Bilbao Vizcaya Argentaria's debt investor presentation, February 2022
Slide 1: Fixed Income Investors Presentation 4Q21
Creating Opportunities Fixed Income Investors Presentation 4021
Slide 2: Disclaimer
4Q21Fixed Income 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 o
Slide 3: BBVA Investment case
Creating Opportunities Ol BBVA Investment case
Slide 4: About BBVA
4Q21Fixed Income About BBVA & llr BBVA’s GLOBAL PRESENCE FINANCIAL HIGHLIGHTS DECEMBER 2021 DECEMBER 2021 Net attributable profit 2021! CET1FL ee 9,069 Me 12.75% \ ry OUR PURPOSE Total assets tf . ‘ To bring the age 662,885 me s of opportunity , Loans and advances to Deposits from to everyone custom
Slide 5: To bring the age of opportunity to everyone
4Q21 Fixed Income 5 To bring the age of opportunity to everyone STRA = Improving our clients’ Helping our clients transition financial health towards a sustainable future On Driving operational & Reaching more excellence clients The best and most eneacediteant a Data and Technology
Slide 6: Leading franchises in very attractive markets
4Q21Fixed Income 6_ 1) Leading franchises in very attractive markets BBVA | STRONG POSITION | LEADING PROFITABILITY Market share! (%) Ranking! ROE (%) vs. industry’ (bps) msSpain 13.5% #3 11.7% +330 bps Ba Mexico 23.7% #1 244% +1,280 bps fq CTurkey 17.1% #2 19.0% +360 bps = Colombia 10.3% #4 17.1% +
Slide 7: Uniquely positioned to capture value from digitalization
2) Uniquely positioned to capture value from digitalization SERVICING SALES DIGITAL TRANSACTIONS 1 DIGITAL SALES 2 (% OVER TOTAL) (%, UNITS AND VALUE3) 85% 73% 75% UNITS if © 56% VALUE 25% e e 16% 2018 2021 2016 2021 CUSTOMER ACQUISITION NEW CUSTOMER ACQUISITION (MILLION, % ACQUISITION THROUGH DIGIT
Slide 8: Trend setters in Sustainability
4Q21Fixed Income 8 2) Trend setters in Sustainability SUSTAINABLE FINANCING A CLEAR COMMITMENT IN PORTFOLI (€BILLION) ALIGNMENT TOWARDS NET ZERO 20 2030 decarbonization goals setin €35.4.n 200€Bn selected COzintensive industries! CHANNELED ° \@ IN 2021 y Reduction in 2030 CLIMATE CHANGE &(0)9% INCLU
Slide 9: Proven track record of solid financial returns
3) Proven track record of solid financial returns STRONG PRE-PROVISION PROFIT AND BEST-IN-CLASS EFFICIENCY PRE-PROVISION PROFIT / RWA BBVA 2016-2021, % PEERS 2016-9M21 ANNUALIZED, % BBVA 3.8% 3.0% |, |__| | | 2.7% 2.2% EUROPEAN PEER GROUP AVERAGE! 2016 2017 2018 2019 2020 2021 VOLATILITY - STANDARD
Slide 10: Well diversified business model
4) Well diversified business model DIVERSIFICATION UNDER A DECENTRALIZED MODEL TOTAL ASSETS ! DEC-21 6% Rest of Business South America 8%. Turkey aff Mexico A GROSS INCOME! 4% Rest of Business South America sf oY Spain Turkey A) Mexico NS (1) Figures exclude the Corporate Center 60% Spain MPE: self-
Slide 11: NPL Ratio, Coverage ratio, Cost of Risk
NPL Ratio Coverage ratio Cost of Risk
Slide 12: Disciplined capital allocation
4Q21Fixed Income 12 5) Disciplined capital allocation CAPITAL ALLOCATION TOWARDS MARKETS WITH SCALE AND PROFITABLE FRANCHISES VALUE CREATION TBV / SHARE + DIVIDENDS A (€ / SHARE) a +1 0.1% wi 6.66 a 6.55 wee 0.14) = my 0-14) ; = ww 6.05 : 2 FOCUS ON MARKETS WITH 3 [=4 SCALE AND PROFITABILITY eal 6.5
Slide 13: Shareholders distribution increase
Shareholders distribution increase THE HIGHEST CASH DPS IN THE PAST 10 YEARS DIVIDEND PER SHARE (DPS) (€ CENTS/ SHARE) £3] cents 68 cents in Oct.21 €23 cents in Apr.22! 44% pay-out? 4Q21Fixed Income 13. ONE OF THE HIGHEST SHARE BUYBACK PROGRAMS IN EUROPE 63,500 milion ><] 500 million first tranche,
Slide 14: Strong ESG Credentials
6) Strong ESG Credentials SUSTAINABLE FINANCING Sustainable Finance Origination: Increased target to «200 bn 2018-2025 2018-2021: <86 bn channeled 80% x 20% Climate |me* Inclusive action growth Sustainable Bond Issuances- BBVA S.A. % €2bn BE Social por 300 Green Founding members Net Zero Alliance De
Slide 15: On track to achieve our ambitious long-term goals
4Q21Fixed Income 15. On track to achieve our ambitious long-term goals COST-TO-INCOME ROTE TBV/ SHARE + DIVIDENDS (%) (%) (%) 14.0 2020-202 2021-2024 CAG “420 2 0 . GOAL —_ ° 12. | . 10.1% 9.0% 2021 2024 GOAL 2021 2024 GOAL NEW TARGET CUSTOMERS SUSTAINABLE FINANCE (MILLION) (€ BILLION) 2021 2022-202
Slide 16: 2021 Results
Creating Opportunities O2 2021 Results
Slide 17: The highest recurrent results in the past 10 years
4Q21Fixed Income 17, The highest recurrent results in the past 10 years NET ATTRIBUTABLE PROFIT! (CURRENT €M) Variation in constant € LOAN GROWTH GAINING TOTAL LOAN GROWTH (DEC 2021)! MOMENTUM +18.7% +6.3% VS. DEC 2020 +3.9% vs. SEP 2021 STRONG CORE REVENUES: yi) FEE INCOME Nil FEE INCOME NII ACCELE
Slide 18: 2021 Profit and Loss
4Q21Fixed Income 18 2021 Profit and Loss Change 2021/2020 BBVA Group (€M) 2021 % constant % Net Interest Income 14,686 6.1 0.6 Net Fees and Commissions 4,765 19.8 15.6 Net Trading Income 1,910 30.5 23.5 Other Income & Expenses -295 ns. ns. Gross Income 21,066 9.7 45 Operating Expenses -9,530 8.5 49
Slide 19: Loan growth gaining momentum
Loan growth gaining momentum LOAN BOOK GROWTH! (CONSTANT €; YOY CHANGE; %) ya BBVA GROUP mm 6.3% eo nh _— e ° 14% 1.9% Mar,21 Jun,21 Sep.21 Dec,21 TURKEY2 © 35.1% va 28.1% 23 ya ° e Mar,21 Jun,21 Sep.21 Dec,21 TH sPAIN “1.4% Mar,21 Jun,21 Sep.21 Dec,21 wl COLOMBIA 0.8% 17% e——"® Mar,21 Jun,21 Sep.21
Slide 20: Spain
4Q21Fixed Income 20 Gz Spain PROFIT & LOSS ¢m) ACTIVITY (DEc-21) YoY A(%) A(%) €Bn276.0 +2.8% 4Q21 vs4Q20 vs3Q21 12M21 vs 12M20 YoY Net Interest Income 867 14 -0.6 3.502 18 €Bn168.3 +1.7% Net Fees and Commissions 507, 38192189215 Net Trading Income 38 ons. 745343974 Demand Bisze 47.4% Other Income &
Slide 21: Mexico
B-1 Mexico PROFIT & LOSS m Constant) A Constant (%) A Current A Constant AQ21 vs4020 ve3021 12M21 ver vers Net Interest Income 1,540 9.3 3.6 5,336 78 54 Net Fees and Commissions 310 17-08 1,211 14.1 11.6 Net Trading Income 13° «18.9 «29.9 366 13.3 15.3 Other Income & Expenses 63 2264 62.4 190 50.3 4
Slide 22: Turkey
a Turkey PROFIT & LOSS m Constant) A Constant (%) ACurrent A Constant 4Q21 vs4Q20 vs 3Q21 12M21 vs 12M20 (%)'s 12M20 (%) Net Interest Income 845 599 440 2,370 148 M2 Nel Fees and Commissions 155 437° «10.7564 10.6 44.4 Net Irading Income 193 676 233.2 413 81g 1374 Other income & Expenses Toons ons.
Slide 23: South America
a South America NET ATTRIBUTABLE PROFIT (em Constant) AConstant(%) ACurrent__A Constant 4Q21 vs4Q20 vs 3021 12M21 vs 12M20(%) vs 12M20 (%) Colombia 69 14.0 25.5 228 38.5 45.4 Peru 43 411 72.8 122 11.4 28.0 Argentina 23 ns. ns. 63 79.4 ns. Other! 20 01 248 77 5.8 2.4 South America 156 17.1 26.9 491 1
Slide 24: Capital, Liquidity & Balance Sheet management
Creating Opportunities O3 Capital, Liquidity & Balance Sheet management
Slide 25: Strong capital position, well above requirements
Strong capital position, well above requirements CET1 FULLY-LOADED (%, BPS) 14.48% 13.18% -130 bps | Sep.2021 €3.5Bn Sep. 2021 Share Post SBB Buyback! +44 bps a | -26 bps Results Dividend 12.75% -49 bps a ° “12 bps 11.5-12.0% TARGET RANGE 8.60% CET1SREP REQUIREMENT. RWAs Others* Dec.2021 Accrual & |
Slide 26: A high quality and resilient capital
A high quality and resilient capital HIGH RWAS DENSITY, WITH A LIMITED USE OF INTERNAL MODELS! RWA / TOTAL ASSETS LEVERAGE RATIO FL BBVA DEC-21/ PEERS SEP.21 BBVA DEC-21/ PEERS SEP.21 46% 6.7% 5.3% 28% BBVA PEERS AVG BBVA PEERS AVG European Peer group: BARC, BNPP, CASA, CS, CMZ, DB, HSBC, ISP, LBG,
Slide 27: CET1 Requirement, Total Requirement, Phased-in ratios
2.38% 0.01% 1.78% 0.75% 2.50% 0.84% 4.50% CET1 Requirement Total Requirement Phased-in ratios Dec.21
Slide 28: Hedging policy to limit P&L and CET1 ratio volatility
Hedging policy to limit P&L and CET1 ratio volatility TO CURRENCY DEPRECIATION CAPITAL — poticy GOAL BBVA hedgesc.70% Reduce consolidated of the excess capital CET1 ratio volatility (what is not naturally as aresult of FX hedged by the ratio) movements P&L POLICY GOAL BBVA hedges on average Reduce N
Slide 29: CET1 Requirement, Total Requirement, Phased-in ratios Dec.21
0.01% 2.50% 0.84% 4.50% CET1 Requirement Total Requirement Phased-in ratios Dec.21
Slide 30: Sound MREL position
4Q21Fixed Income 30 Sound MREL position C.90% OF MREL ELIGIBLE WITH SUBORDINATION > OR = TO SNP POSITION AS OF DEC.21 %RWA! MREL REQUIREMENT SUBORDINATION REQUIREMENT 28.34% 24.78% 24.65% 13.50% j e Requirement Eligible instruments Requirement Eligible instruments q iS Note: Preliminary Data (1)Posi
Slide 31: Liquidity ratios well above 100% minimum
4Q21Fixed Income 31 Liquidity ratios well above 100% minimum Ample quality collateral BBVA GROUP LIQUIDITY BALANCE SHEET! BBVA GROUP LIQUIDITY AND FUNDING METRICS DEC-21 DEC-21 Eurozone? = Mexico Turkey pouth LTD 92% 87% 80%3 95% 59% 64% LCR 190% 245% 211% >100% NSFR 126% 149% 162% >100% mm 6% 7% LC
Slide 32: Limited wholesale funding maturities in all geographies
4Q21Fixed Income 32 Limited wholesale funding maturities in all geographies DEBT OUTSTANDING BY PRODUCT MEDIUM & LONG-TERM WHOLESALE DEC-21, €BN FUNDING MATURITIES DEC-21, €BN Others! 5 122 9 enior 10.0 5 Preferred 8.4 fo WM EURO 49 7.3 = 15 16% € 42.8bn see = Bea Subordinated 9 16% Gd mexico 17 25
Slide 33: Solid liquidity position in Turkey
4Q21 Fixed Income 33 Solid liquidity position in Turkey SOLID LIQUIDITY POSITION: Total LTD ratio is at 79.8%, decreasing by -12,71p.pin4Q21 mainly driven by FC LtD improvement. Foreign currency performing loans decreased by USD 0.7 Bn (on a quarterly basis) toc. USD 10.9 Bnin 4Q21. FC LIQUIDITY BUF
Slide 34: In this context, funding needs remain limited
4Q21Fixed Income 34 In this context, funding needs remain limited BBVA, S.A. REDEEMABLE INSTRUMENTS IN 2019/21 WERE CALLED AT FIRST RESET DATE BBVA, S.A. 2022 2022 Strategy! €BN Executed (subject to market conditions) aul We do not foresee any sizeable transaction given our solid position; we could
Slide 35: BBVA S.A. Ratings
4Q21Fixed Income 35 BBVA S.A. Ratings’ BBVA LONG TERM BBVA RATINGS BY TYPE SENIOR UNSECURED RATINGS OF INSTRUMENT Moody’s S&P Fitch DBRS Investment | Aaa AAA arade | ati | ENE | mac , Stable outlook Moody's Grin 2019) S&P Negative outlook Baal BB SNP BBE SNP BBB (H) saa | 888 888 Fitch Stable outloo
Slide 36: ALCO portfolio
4Q21Fixed Income 36 ALCO portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value (HTC) HTC&S) 44.7 47.7 45.6 Dec-21 (€BN) (€BN) (duration) South America wm 38 we 4.0 = 40.7 South America 0.2 3.8 1.0 years Mexico a 9.0 | 9.8 a 10.1 Mexico 2.2 79 3.1 years Turkey ae M70 om o5.7 ——> T
Slide 37: NII sensitivity to interest rates movements
NII sensitivity to interest rates movements 4Q21Fixed Income 37 ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST RATE MOVEMENTS (%) NII sensitivity to +100 bps 25% 20% 15% 10% 5% 0% & i By Euro Mexico 0% -5% -10% -15% -20% -25% NII sensitivity to -l00bps = —_— & Dy Euro Mexico Note
Slide 38: Takeaways
Takeaways BBVA is uniquely positioned for profitable growth Leading franchises in very attractive markets. Trend-setters in digital and sustainability. Proven track record of solid financial results. Disciplined capital allocation. Progress in the execution of our strategy Highest recurrent results
Slide 39: Annex
BBVA Creating Opportunities Annex a BBVA Group 4Q21 Profit & Loss a Outstanding loan deferrals 4“ Government backed loans a Stages breakdown by business area 4 Capital Base: BBVA Group & BBVA, S.A. « Group RWA breakdown a Available Distributable Items a Debt Issuances 2019 - 2022 « Called notes — 20
Slide 40: BBVA Group 4Q21 Profit and Loss
BBVA Group 4Q21 4021 Fixed Income A Profit and Loss Change Change 4Q21/4Q20 4Q21/3Q21 BBVA Group (€M) 4Q21 % constant % % constant % Net Interest Income 3,978 16.5 14.4 10.5 6.0 Net Fees and Commissions 1,247 22.2 19.7 7.0 3.7 Net Trading Income 438 152.0 150.5 7.8 13.1 Other Income & Expenses -187
Slide 41: Outstanding loan deferrals
Outstanding loan deferrals TOTAL DEFERRALS o/w Expired deferrals by stages as GRANTED expired As of Dec'21 €BN % of total loans % Stage 1 Total Group 21.9 6.3% 99% 3.8% By segment Mortgages 10.3 11.0% 99% 6.7% Consumer & credit cards 4.8 45% 100% 2.7% SMEs & corporates 6.8 4.6% 99% 2.7% By country @
Slide 42: Government backed loans
4Q21 Fixed Income 42 Government backed loans € bn; DEC’21 GROUP SPAIN (2) MEXICO TURKEY (3) ARGENTINA COLOMBIA PERU Loans Weight Loans Weight Loans Weight Leans Weight Loans Weight Loans Weight Lcans Weight Households 14. 0.9% 12 1.2% 00 0.0% 00 00% 01 2.6% 0.0 0.5% 01 24% Corporates & SMEs 14.7 10.
Slide 43: Stages breakdown by business area
Stages breakdown by business area CREDIT RISK BREAKDOWN BY BUSINESS AREA (DEC-21,€M) BBVA GROUP Stage 1 Stage 2 Stage 3 TURKEY Stage 1 Stage 2 Stage 3 COLOMBIA Stage 1 Stage 2 Stage 3 Gross Exposure 321,249 39,319 15,443 Gross Exposure 34,565 4,709 2,995 Gross Exposure 11,635 519 697 Accumulated imp
Slide 44: Capital Base: BBVA Group & BBVA, S.A.
Capital Base 4921 Fixed Income 4 BBVA Group & BBVA, S.A. PHASED-IN CAPITAL RATIOS FULLY-LOADED CAPITAL RATIOS DEC.21(%) DEC.21(%) 19.64 19.67 17.24 Mm 259 16.98 mm 2.66 Tier2 MM 240 Moo Tier2 2.37 Moo Additional Tier1 "1.86 Additional Tier 1 al 1.87 CET i 12.98 : 14.14 CET A 12.75 : 14.11 BBVA Group
Slide 45: Group RWA breakdown
Group RWA breakdown TOTAL RWA BREAKDOWN PHASED-IN CVA! FX Risk Trading Act. Risk Operational Risk Credit Risk 85.1% 54% Standardized Models Note 1: Credit Valuation Adjustment. Note: Distribution of RWAs by type of risk and Model based on 3021 Pilar Ill report 46% IRB Models 4Q21Fixed Income 45 a Op
Slide 46: Available Distributable Items (ADIs)
Available Distributable Items (ADIs) BBVA, S.A. - PARENT COMPANY DEC-21, €BN BBVA, S.A. ADIs €45B " c.17x €0.3 Bn ADIs 2021 AT1 net coupons Note: ADIs calculated at a parent company level (BBVA, S.A.) as: Net Income + Voluntary Reserves - Dividend - AT] coupons. BBVA does not include within the ADIs
Slide 47: Debt Issuances 2019 - 2022 YTD
4Q21Fixed Income 47 Debt Issuances 2019 — 2022 YTD PRODUCT ISSUE DATE CALL DATE MATURITY NOMINAL CURRENCY COUPON H BBVAS.A. SNP Jan-22 Jan-28 Jan-29 €1,000M 0.875% sP Dec-21 - Dec-23 €550M 3ME+1% SP Sept-21 ° Sept-23 €1,000M 3ME+1% a SP Mar-21 Mar-26 Mar-27 €1,000M 0.125% esa se aay Tier 2 Juk20 Juk
Slide 48: Called notes 2018 - 2022 YTD
Called notes 2018 — 2022YTD 4Q21 Fixed Income 48 economic call policy OUTSTANDING PRODUCT ISSUEDATE REDEMPTION CURRENCY (M) COUPON BBVA, S.A. ATI Apr-16 Apr-21 € 1,000 8.875% Caixa Terrassa SPP Preferred Ago-05 Jan-21 €75M 10yCMS+0.10% BBVA Intl. Preferred Unipersonal Preferred Jul-O7 Jan-21 £31.2M
Slide 49: Main Subsidiaries Ratings
Main Subsidiaries Ratings' BBVA LONG TERM SENIOR UNSECURED RATINGS Investment grade Non Investment Grade (1) A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, BBVA Mexico AAA/Aaa AA+/Aal AA/Aa2 AA-/Aa3 A+/Al ASAZ A-/AS BBB-/Baa3 BB+/Bal BB/Ba2 BB-/Ba3 B
Slide 50: Sovereign Exposure by geography
Sovereign Exposure by geography! € bn; DEC’21 Amortized Cost debt securities (HTC) Spain 17.5 Italy 3.3 Mexico 31 USA 0.0 Turkey 2.6 All Others 0.6 TOTAL Fair Value debt securities (HTC&S) 87 6.5 29 Sovereign Non-trading Trading financial assets securities | mandatorily at fair value through P&L 1)
Slide 51: Book Value of the main subsidiaries
4Q21Fixed Income 51 Book Value of the main subsidiaries! € bn; DEC’21 Mexico Wl ss 13.6 Turkey Ta Ga 2.8 Colombia SR Argentina = Peru #1 1.0 Chile We 10.3 Venezuela wm | 0.7 (1) Includes the initial investment + BBVA's undistributed results + FX impact + other valuation adjustments. The Goodwill ass
Slide 52: BBVA
BBVA
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