Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Debt Investor Presentation (May 2022)
49 slides from Banco Bilbao Vizcaya Argentaria's debt investor presentation, May 2022
Slide 1: Fixed Income Investors Presentation 1Q22
Creating Opportunities Fixed Income Investors Presentation 1Q22
Slide 2: Disclaimer
1Q22 Fixed 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
Slide 3: BBVA Investment case
Creating Opportunities Ol BBVA Investment case
Slide 4: About BBVA
About BBVA & BBVA's GLOBAL PRESENCE MARCH 2022 "AE Can - Countries Branches Employees Customer >25 6,071 111,402 82.9M {= DIGITAL CAPABILITIES MARCH 2022 CUSTOMERS DIGITAL SALES © Digital Mobile . customers customers Units PRV! 436M 415M 77% 60% (1) Product Relative Value as a proxy of lifetime econ
Slide 5: To bring the age of opportunity to everyone
1922 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
1Q22 Fixed Income 6 1) Leading franchises in very attractive markets BBVA | STRONG POSITION LEADING PROFITABILITY Market share! (%) Ranking! ROE (%) vs. industry? (bps) = Spain 13.3% #3 17.1% +870 bps Ba Mexico 23.7% #1 23.3% +1300 bps fq CTurkey 17.6% #2 375% +239 bps = Colombia 10.7% #4 24.2% +109
Slide 7: Uniquely positioned to capture value from digitalization
1Q22 Fixed Income 7_ 2) Uniquely positioned to capture value from digitalization CUSTOMER SERVICING SALES ACQUISITION ADVICE DIGITAL TRANSACTIONS! DIGITAL SALES 2 NEW CUSTOMER ACQUISITION (% OVER TOTAL) (%, UNITS AND VALUE3) (MILLION, % ACQUISITION THROUGH DIGITAL CHANNELS 4) 73% 8.7 MILLION UNITS 8
Slide 8: Trend setters in Sustainability
1Q22 Fixed Income 8 2) Trend setters in Sustainability SUSTAINABLE FINANCING A CLEAR COMMITMENT IN PORTFOLIO (€BILLION) ALIGNMENT TOWARDS NET ZERO 2050 2030 decarbonization goals set in selected COz intensive industries! 2025 PLEDGE 200°" Reduction in 2030 G) Power = -52% kgco,e/MWh ~ Total channele
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 2016-2021, % BBVA 3.8% 3.0% |, en ei eel 2.6% 2.2% EUROPEAN PEER GROUP AVERAGE! 2016 2017 2018 2019 2020 2021 EFFICIENCY RATIO BBVA 2016-3M22,% PEERS 2016-2021, % EUR
Slide 10: Well diversified business model
4) Well diversified business model DIVERSIFICATION UNDER A DECENTRALIZED MODEL TOTAL ASSETS ! MAR-22 7% Rest of Business South America % Turkey a Mexico A GROSS INCOME! 3M22 58% Spain Seokest of Business South America a Turkey C) 28% Spain Mexico NS (1) Figures exclude the Corporate Center MPE: self
Slide 11: NPL Ratio, Coverage ratio, Cost of Risk
NPL Ratio Coverage ratio Cost of Risk
Slide 12: Disciplined capital allocation
1Q22 Fixed Income 12 5) Disciplined capital allocation CAPITAL ALLOCATION TOWARDS MARKETS WITH SCALE AND PROFITABLE FRANCHISES VALUE CREATION TBV / SHARE + DIVIDENDS (€ / SHARE) n | +12.6% 6.93 0.14 ee 6.15 2 FOCUS ON MARKETS WITH 8 b=4 SCALE AND PROFITABILITY 652 6.56 & -_ - & SUCCESSFUL DIVESTMENT
Slide 13: Strong ESG Credentials
6) Strong ESG Credentials SUSTAINABLE FINANCING Sustainable Finance Origination Increased target to «200 bn 2018-2025 2018-1022: 97 bn channeled BBVA S.A -Sustainable Bond Issuances por £300 Green % €2bn BE Social Founding members Net Zero Alliance Defined Portfolio Alignment Strategy in the most in
Slide 14: On track to achieve our ambitious long-term goals
1Q22 Fixed Income 14 On track to achieve our ambitious long-term goals COST-TO-INCOME @ ROE @ _—TBV/SHARE+ DIVIDENDS @ (%) (%, ANNUALIZED) (YOY %) % 15.9 ao 126 42.0 120 0 0 10) = 2021-24 CAGR: 90 40.7 e Po ° 2021 1Q22 -. 2024 2021 1Q22 = 2024 2021 1Q22 - 2024 NEW TARGET CUSTOMERS! @ SUSTAINABLE FIN
Slide 15: 1Q22 Results
Creating Opportunities O2 1022 Results
Slide 16: The highest recurrent quarterly results ever
The highest recurrent quarterly results ever RECURRENT NET ATTRIBUTABLE ROFIT! (CURRENT €M) 60.) 2 1,651 1,294 1400 1,341 1,033 | | | 1021 2021 3021 4021 1922 (1) Net attributable profit excluding non-recurring impacts (discontinued operations in 1921 and 2Q21 and net cost related to the restructuri
Slide 17: BBVA Group income statement 1Q22
Change Change 1Q22/1Q21 1Q22/4Q21 BBVA Group (€M) 1Q22 % constant % % constant % Net Interest Income 4,158 26.3 20.5 6.9 4.5 Net Fees and Commissions 1,241 14.1 9.5 -0.3 -0.5 Net Trading Income 580 8.7 -0.3 46.3 32.3 Other Income & Expenses -39 n.s. n.s. n.s. n.s. Gross Income 5,939 21.3 15.2 11.0 8
Slide 18: Loan growth acceleration in all countries and segments
1Q22 Fixed Income 18 Loan growth acceleration in all countries and segments LOAN BOOK GROWTH! (CONSTANT €; YOY CHANGE; %) BBVA GROUP 10.6% eo A eo 135 Za e—* -2.0% 715% Mar.21. Jun.21 Sep.21 Dec.21 Mar.22 TURKEY2 40.8% e Mar.21 Jun.21. Sep.21 Dec.21. Mar.22 Tf SPAIN 3.4% 17% —* 1.1% aoe e 0.8% -1.4%
Slide 19: Significant contribution of all business areas
1Q22 Fixed Income 19 Significant contribution of all business areas RECURRENT NET ATTRIBUTABLE PROFIT! (BUSINESS AREAS CONTRIBUTION TO 1Q GROWTH; CURRENT €M) 58 1,651 288 58 3 -15 23) 1,033 1021 Spain Mexico Turkey South Rest of Corporate 1Q22 America business Center (1) Net attributable profit excl
Slide 20: Spain lending and customer funds
€Bn 169.1 €Bn 296.8 Mortgages 69.4 Demand Deposits 189.5 Consumer + Credit Cards 15.3 Very small businesses 15.7 Other Commercial 20.9 Time 16.4 Deposits Corporates + CIB 24.3 13.4 Off-BS 90.8 Public sector Others 10.2 Funds Lending1 Cust. Funds1 66.4 1.77 1.73 61.7 61.4 1.71 1.77 1.73 1.71 4.38 4.2
Slide 21: Mexico lending and customer funds
€Bn 103.4 €Bn 60.9 Mortgages 12.7 Demand 58.8 Consumer 8.8 Deposits Credit Cards 5.4 SMEs 3.8 Time 10.2 Deposits Other Commercial 24.8 Off-BS 34.4 Funds Public sector 5.3 Lending1 Cust. Funds1 128.9 106.2 115.3 10.99 11.22 11.44 2.96 3.17 2.96 9.97 10.16 10.25 1.02 1.05 1.19 3.55 2.67 2.84 1Q21 4Q21
Slide 22: Turkey lending and deposits
FC 7.3 Time FC 10.1 13.8 TL Demand Commercial 9.2 TL Time 10.3 Retail 9.6 Demand 3.7 Lending2 Deposits2 78.0 4.99 74.7 74.8 4.65 4.63 7.09 6.88 6.70 4.89 5.22 2.55 1.34 1.33 1.00 1Q21 4Q21 1Q22 1Q21 4Q21 1Q22
Slide 23: South America lending and customer funds
€Bn 55.9 €Bn 37.9 Colombia 16.0 Colombia 14.1 Peru 16.5 Peru 16.8 Argentina 8.5 Argentina 3.4 Other 14.9 Other 3.7 Lending1 Cust. Funds1 6.51 2.29 6.12 6.13 1.85 1.62 5.05 5.41 5.33 1.68 1.59 0.73 15.48 14.67 14.75 2.23 2.20 2.04 1Q21 4Q21 1Q22 1Q21 4Q21 1Q22
Slide 24: Capital, Liquidity & Balance Sheet management
Creating Opportunities O3 Capital, Liquidity & Balance Sheet management
Slide 25: Strong capital position
Strong capital position CET1 FULLY-LOADED (%, BPS) +52 bps a 12.80% 10, 12.75% 29bps -_ -17 bps -lbps Dec.2021 Results Dividend RWAs. Others! Mar.2022 Accrual & (constant €) before M&A AT1 Coupons impact (1) Include market related impacts and minority interests, among others. -10 bps Neon (Brazil) 1
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 MAR-22/ PEERS DEC.21 BBVA MAR-22 / PEERS DEC.21 47% 6.7% 54% 28% BBVA PEERS AVG BBVA PEERS AVG European Peer group: BARC, BNPP, CASA, CS, CMZ, DB, HSBC, ISP, LBG,
Slide 27: CET1 requirement and phased-in ratios
2.38% 0.01% 1.78% 0.75% 2.50% 0.84% 4.50% CET1 Requirement Total Requirement Phased-in ratios Mar.22
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: Capital requirements and phased-in ratios
0.01% 2.50% 0.84% 4.50% CET1 Requirement Total Requirement Phased-in ratios Mar.22
Slide 30: Sound MREL position
1Q22 Fixed Income 30 Sound MREL position C.90% OF MREL ELIGIBLE WITH SUBORDINATION > OR = TO SNP POSITION AS OF MAR.22 % RWA! MREL REQUIREMENT + CBR SUBORDINATION REQUIREMENT + CBR M-MDA Buffer 289 bps (€5.3bn) Subordination Buffer 731 bps (€13.4bn) 27.61% ania 24.72% CBR: 3.26% 24.07% 16.76% MREL C
Slide 31: Liquidity ratios well above 100% minimum
Liquidity ratios well above 100% minimum Ample quality collateral BBVA GROUP LIQUIDITY BALANCE SHEET! MAR-22 59% 64% = Deposits = ECB = M&L/T Funding » Go = Net Loans to Customers = Fixed Assets & Others 5% sy, o . = Financial Assets o 9% BEquity & Others 80% + ® S/T Funding 18% 2% Assets Liabilitie
Slide 32: Limited wholesale funding maturities in all geographies
1Q22 Fixed Income 32 Limited wholesale funding maturities in all geographies DEBT OUTSTANDING BY PRODUCT MEDIUM & LONG-TERM WHOLESALE MAR-22, €BN FUNDING MATURITIES Others! MAR-22, €BN 33 9 pa : referred BA EURO 76 8.6 49 74 15 : 17% € 41.8bn _ > = Gs @ Subordinated 9 16% Bs} MExico 17 25 € 64bn = 0
Slide 33: Solid liquidity position in Turkey
1022 Fixed Income 33 Solid liquidity position in Turkey af SOLID LIQUIDITY POSITION: Total LTD ratio: Foreign currency 82.1%, increasing by —_ performing loans -5.1% +2.4p.p in 1Q22 YoY toc. USD 11.3 Bn in mainly driven by FC 1Q22. LtD increase. FC LIQUIDITY BUFFERS @ Short Term Swaps @ Unencumbered
Slide 34: Updated funding plan 2022
1Q22 Fixed Income 34 We have updated our funding plan 2022 in a context of higher activity BBVA, S.A. 2022 2022 Strategy! €BN Executed (subject to market conditions) ATI Potential issuance of AT12 and Tier2 to optimize the P2R Tiering. Tier 2 SNP €1bn € 3bn SP-SNP driven by lower eligibility for MRE
Slide 35: Credit ratings: S&P outlook improved to stable
1022 Fixed Income 35 In Mar’22 S&P improved BBVA's outlook to stable, DBRS affirmed BBVA‘s rating at A (High) stable outlook BBVA S.A. RATINGS! BBVA RATINGS BY TYPE BBVA LONG TERM OF INSTRUMENT SENIOR UNSECURED RATINGS Moody's S&P Fitch DBRS Investment Moody's Stable outlook grade (Jun. 19", 2019),
Slide 36: Active management of ALCO portfolio
1022 Fixed Income 36 Active management of ALCO portfolio to lock-in the balance sensitivity to higher rates ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value (HTC) HTC&S) 477 45.6 52.0 Mar-22 (€BN) (€BN) duration) South America mm 4.0 me 40 7 SO South America 0.2 58 O.7 years Mexico 10
Slide 37: NII sensitivity to interest rates movements
1922 Fixed Income 37 NII sensitivity to interest rates movements REFERENCE INTEREST RATES BBVA NII SENSITIVITY (%) (TO +100 BPS INTEREST RATES INCREASE) TH EURIBOR 12M 15-20 oo EURO BALANCE SHEET ‘Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 04/25/22 Wl THE 28D BL MEXICO Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 04/
Slide 38: Takeaways
1Q22 Fixed Income 38 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. Strong fundamentals High quality and resilient
Slide 39: Annex
BBVA Creating Opportunities Annex @ Government Covid-related backed loans a Stages breakdown by business area « Capital Base: BBVA Group & BBVA, S.A. a Group RWA breakdown a Available Distributable Items 4 Debt Issuances 2019 — 2022 « Called notes — 2018 — 2022 « Main Subsidiaries Ratings a Sovereig
Slide 40: Government Covid-related backed loans
1022 Fixed Income 40 Government Covid-related backed loans € bn; MAR’22 GROUP SPAIN (2) MEXICO TURKEY (3) ARGENTINA COLOMBIA PERU Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Households 14 0.9% 12 12% 0.0 0.0% 0.0 0.0% 0.0 24% 0.0 0.5% 01 21% Corporates
Slide 41: Stages breakdown by business area
Stages breakdown by business area CREDIT RISK BREAKDOWN BY BUSINESS AREA (MAR-22, €M) TURKEY Stage 1 Stage 2 Stage 3 COLOMBIA Stage 1 Stage 2 Stage 3 Gross Exposure 341,187 38,525 15,612 Gross Exposure 38,193 4,592 3,072 Gross Exposure 13,371 1,577 725 Accumulated impairments 2,163 2,212 7477 Accumu
Slide 42: Capital Base BBVA Group & BBVA, S.A.
1Q22 Fixed Income 42 Capital Base BBVA Group & BBVA, S.A. PHASED-IN CAPITAL RATIOS FULLY-LOADED CAPITAL RATIOS MAR.22 (%) MAR.22 (%) 19.03 19.12 16.82 WM 2.38 16.71 Wm 2.52 Tier2 MM 216 MM 288 Tier2 2.16 Mi o8s Additional Tier 1 Additional Tier1 7.34 mr 1384 CET A 12.81 [.. CET A 12.70 f... BBVA Gro
Slide 43: Group RWA breakdown
Group RWA breakdown TOTAL RWA BREAKDOWN PHASED-IN CVA! FX Risk 0.8% 0.7% 4.1% Trading Act. Risk Operational Risk 10.3% Credit Risk 84.1% 52% Standardized Models Note 1: Credit Valuation Adjustment. Note: Distribution of RWAs by type of risk and Model based 02021 Pilar Ill report 48% IRB Models 1Q22
Slide 44: Debt Issuances 2019 – 2022 YTD
1922 Fixed Income 44 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% ea se aay Tier 2 Juk20 Juk
Slide 45: Called notes 2018 – 2022 YTD
1022 Fixed Income 45 Called notes 2018 — 2022YTD economic call policy OUTSTANDING PRODUCT ISSUEDATE REDEMPTION CURRENCY (M) COUPON BBVA, S.A. AT May-17 May-22* €500 5.875% BBVA, S.A. ATI Apr-16 Apr-21 € 1,000 8.875% Caixa Terrassa SPP Preferred Ago-05 Jan-21 €75 10yCMS+0.10% BBVA Intl. Preferred Uni
Slide 46: Main Subsidiaries Ratings
Main Subsidiaries Ratings' BBVA LONG TERM SENIOR UNSECURED RATINGS Investment grade Non Investment Grade BBVA Mexico AAA/Aaa AA+/Aal AA/Aa2 AA-/Aa3 A+/Al ASAZ A-/AS BBB-/Baa3 BB+/Bal BB/Ba2 BB-/Ba3 B+/B1 B/B2 B-/B3 ccc cc .) Garanti BBVA AAA/Aaa AA+/Aal AA/Aa2 AA-/Aad A+/Al A/A2 A-/AZ BBB+/Baal BBB/
Slide 47: Sovereign Exposure by geography
Sovereign Exposure by geography! € bn; MAR’22 Amortized Cost debt securities (HTC) Spain 17.6 Italy 3.3 Mexico 3.3 USA 0.0 Turkey 3.6 All Others Fair Value debt securities (HTC&S) 10.8 6.5 9.2 3.0 S/ Sovereign Non-trading Trading financial assets securities mandatorily at fair value through P&L 46 0
Slide 48: Book Value of the main subsidiaries
1022 Fixed Income 48 Book Value of the main subsidiaries(:2) € BN; MAR’22 Mexico By a 14.9 Turkey = 3.1 Colombia & W115 Argentina = Peru ay 811 Chile wy 1O4 Venezuela gq | 0.17 (1) Includes the initial investment + BBVA's undistributed results + FX impact + other valuation adjustments. The Goodwill
Slide 49: BBVA
BBVA
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) — Debt Investor Presentation (May 2022) on 6ix