Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — FY2022 Earnings Presentation
66 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Feb 1, 2023
Slide 1: 2022 Results
2022 Results February 1, 2023
Slide 2: Disclaimer
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 securiti
Slide 3: 2022: outstanding year of growth
2022 Results 3 2022: outstanding year of growth CUSTOMERS ACQUIRED DIGITAL SALES1 SUSTAINABLE BUSINESS CONTINUED PROGRESS IN THE EXECUTION OF OUR STRATEGY +11 million 78% € 50 billion NET ATTRIBUTABLE PROFIT EPS GROWTH HIGHEST RESULTS EVER (RECURRENT) (RECURRENT) € 6.6 billion + 31% vs. 2021 2 + 48%
Slide 4: Setting a record with more than 11 million new customers
2022 Results 4 Setting a record with more than 11 million new customers NEW CUSTOMERS1 (BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) DIGITAL 55% TOTAL NEW CUSTOMERS CUSTOMER ACQUISITION THROUGH DIGITAL 7% CHANNELS 2017 2018 2019 2020 2021 2022 (1) Gross customer acquisition through o
Slide 5: Growing and delivering extraordinary customer service driven by digital
2022 Results 5 Growing and delivering extraordinary customer service driven by digital DIGITAL ENGAGEMENT HIGHER CLIENT SATISFACTION MOBILE CUSTOMERS (MILLION CUSTOMERS) 47.4 NPS2 LEADERSHIP POSITION IN ALL COUNTRIES +19% 18.0 vs. 2021 #1 #1 2017 2022 #2 #2 #2 #2 #2 DIGITAL SALES (%, UNITS AND VALUE
Slide 6: Strong increase in our sustainable business
2022 Results 6 Strong increase in our sustainable business, exceeding our initial expectations COMMITMENT IN PORTFOLIO ALIGNMENT SUSTAINABLE BUSINESS ANNUAL GROWTH (CLIMATE CHANGE AND INCLUSIVE GROWTH) 2030 decarbonization goals set in selected CO2 intensive industries €136 Bn REDUCTION IN 2030 Chan
Slide 7: Highest annual Net Attributable Profit ever
2022 Results 7 Highest annual Net Attributable Profit ever RECURRENT NET ATTRIBUTABLE PROFIT1 (CURRENT €M) +48% vs. 2021 6,621 +31% EARNINGS PER SHARE vs. 2021 (RECURRENT)2 5,069 4,830 4,642 4,627 3,084 2017 2018 2019 2020 2021 2022 Reported NAP (€M) 3,519 5,324 3,512 1,305 4,653 6,420 (1) Recurrent
Slide 8: Accelerating value creation for our shareholders
2022 Results 8 Accelerating value creation for our shareholders TBV + DIVIDENDS PROFITABILITY METRICS2 (€ / SHARE) (%) TBV / share Dividends paid / share ROTE +19.5% 7.79 0.351 6.52 7.44 ROE Dec-21 Dec-22 2021 2022 (1) April 2022 dividend per share 0.23 € (gross) and October 2022 dividend per share
Slide 9: Exceptional shareholder value creation and profitability vs. competition
2022 Results 9 Exceptional shareholder value creation and profitability metrics, with differential success vs. competition TBV + DIVIDENDS GROWTH ROTE1 EFFICIENCY (per share, 2022 % YOY Var.) (2022, %) (2022, %) +19.5% 15.3% 62.8% 43.2% 7.4% +3.8% European Peer European Peer European Peer Group avera
Slide 10: 2022 key financial messages
2022 Results 10 2022 key financial messages 1 OUTSTANDING CORE REVENUES CORE REVENUES (NII+FEES) TOTAL LOAN GROWTH1 AND ACTIVITY GROWTH +30.7% vs. 2021 +13.3% vs. DEC 2021 2 LEADING AND IMPROVING EFFICIENCY RATIO EFFICIENCY WITH POSITIVE JAWS 43.2% -277 BPS. vs. 2021 3 HIGHEST ANNUAL OPERATING INCOME
Slide 11: 2022 Profit & Loss
2022 Results 11 2022 Profit & Loss Change 2022/2021 BBVA Group (€M) 2022 % constant % Net Interest Income 19,153 35.8 30.4 Net Fees and Commissions 5,353 15.3 12.3 Net Trading Income 1,938 9.4 1.5 Other Income & Expenses -1,555 n.s. n.s. Gross Income 24,890 22.9 18.2 Operating Expenses -10,760 15.5 1
Slide 12: 4Q22 Profit & Loss
2022 Results 12 4Q22 Profit & Loss Change Change 4Q22/4Q21 4Q22/3Q22 BBVA Group (€M) 4Q22 % constant % % constant % Net Interest Income 5,342 49.0 34.3 12.0 1.6 Net Fees and Commissions 1,323 12.0 6.1 2.5 -4.2 Net Trading Income 269 -9.1 -38.6 -38.7 -53.1 Other Income & Expenses -410 n.s. n.s. n.s. n
Slide 13: Record core revenue growth with solid trend through the year
2022 Results 13 Record core revenue growth with solid trend through the year NET INTEREST INCOME1 NET FEES AND COMMISSIONS (CONSTANT €M) (CONSTANT €M) +49% +12% +12.0% +2.5% Outstanding NII Sound fee income growth driven by levered on activity and payments and customer spread transactional improveme
Slide 14: NII growth driven by activity and customer spread improvements
2022 Results 14 NII growth driven by activity and customer spread improvements LOAN GROWTH CUSTOMER SPREAD NET INTEREST INCOME (YOY, CONSTANT €) (%) (YOY, CONSTANT €) SPAIN +26% +17.0% BBVA GROUP +13.3% 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 +5.6% MEXICO +35% +8.5% Dec-21 Dec-22 4Q21 1Q22
Slide 15: Positive jaws and continue leading efficiency
2022 Results 15 Positive jaws and continue leading efficiency POSITIVE JAWS AND COSTS GROWING EFFICIENCY RATIO BELOW INFLATION (COST-TO-INCOME, % CONSTANT €) (2022 YOY, CONSTANT €) RANKING EUROPEAN FOOTPRINT #1 PEER GROUP2 INFLATION1 19.1% 12M AVERAGE +22.9% +15.5% Gross Operating 2021 2022 Income Ex
Slide 16: Asset quality remains solid
2022 Results 16 Asset quality remains solid FINANCIAL ASSETS IMPAIRMENTS NPL (CONSTANT €M) (€BN) 4Q21 1Q22 2Q22 3Q22 4Q22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 COST OF RISK NPL & COVERAGE RATIOS (% YTD) (%) COVERAGE 2019 at 1.04% NPL 12M21 3M22 6M22 9M22 12M22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 NOTE: 2
Slide 17: Significant increase of pay-out
2022 Results 17 Significant increase of pay-out TOTAL PAY-OUT 2022 equivalent to 47% €3.0Bn €50 cents /share 1 2,3 of reported attributable profit4 CASH DIVIDEND2 €43 cts./share +39% vs. 2021 €31 cts./share Apr.23 €12 cts./share Oct.22 NEW SHARE BUY BACK PROGRAM5 € 422 M 1.1% of market cap6 (1) Pendin
Slide 18: Above-target capital position thanks to strong results
2022 Results 18 Above-target capital position thanks to strong results CET1 FULLY-LOADED (%, BPS) +47 bps -20 bps +19 bps 12.80% -25 bps +14 bps 12.61% 12.45% Target Range 11.5%-12.0% Sep-22 Results Dividend RWAs Others1 Dec-22 NPL CET1 accrual & AT1 (constant €) reported backstop2 proforma coupons
Slide 19: On-track to achieve our ambitious long-term goals
2022 Results 19 On-track to achieve our ambitious long-term goals COST-TO-INCOME ROTE1 TBV/SHARE + DIVIDENDS (%) (%) (YOY %) 2021-24 CAGR NEW TARGET CUSTOMERS2 SUSTAINABLE BUSINESS (MILLION CUMULATIVE) (€ BILLION, CUMULATIVE SINCE 2018) (1) Excluding discontinued operations and non-recurring results
Slide 20: Business Areas
2022 Results 20 Business Areas
Slide 21: Spain
2022 Results 21 Spain PROFIT & LOSS (€M) ACTIVITY (DEC-22) Δ (%) Δ (%) €Bn YoY YoY 4Q22 vs. 4Q21 vs. 3Q22 12M22 vs. 12M21 +2.1% €Bn Net Interest Income 1,089 25.6 17.0 3,784 8.1 Net Fees and Commissions 521 -13.0 -0.9 2,156 -1.8 +1.8% Net Trading Income 67 71.9 62.9 396 30.1 Other Income & Expenses
Slide 22: Mexico
2022 Results 22 Mexico PROFIT & LOSS (Constant €M) ACTIVITY (DEC-22) (Constant €) €Bn YoY Δ Constant (%) Δ Current (%) Δ Constant (%) €Bn YoY +8.7% 4Q22 vs. 4Q21 vs. 3Q22 12M22 vs. 12M21 vs. 12M21 +15.5% Net Interest Income 2,355 35.1 8.5 8,378 43.6 26.8 Net Fees and Commissions 427 21.8 2.5 1,621 3
Slide 23: Turkey
2022 Results 23 Turkey PROFIT & LOSS (Constant €M) ACTIVITY (DEC-22) Δ Current (%) Δ Constant (%) (Constant €; Bank Only) €Bn YoY1 FC 4Q22 vs. 3Q22 vs. 3Q22 12M22 -22.8% €Bn YoY1 Net Interest Income 823 -19.4 4.9 2,631 Time Net Fees and Commissions 173 -14.5 11.5 587 -48.6% Net Trading Income 200 -2
Slide 24: South America
2022 Results 24 South America €Bn NET ATTRIBUTABLE PROFIT ACTIVITY (DEC-22) YoY (Constant €M) (Constant €) +14.0% €Bn YoY Δ Constant (%) Δ Current (%) Δ Constant (%) Colombia +13.2% +13.7% 4Q22 vs. 4Q21 vs. 3Q22 12M22 vs. 12M21 vs. 12M21 Colombia 38 -43.4 -34.0 238 6.6 7.6 Colombia +22.6% Peru +2.2%
Slide 25: Takeaways & 2023 Outlook
2022 Takeaways & 2023 Outlook
Slide 26: 2022 takeaways
2022 Results 26 2022 takeaways Significant progress in the execution of our strategy centered on digitalization, innovation and sustainability The highest net attributable profit ever Growing our franchise with industry-leading profitability and efficiency Delivering exceptional value creation for our s
Slide 27: 2023 Outlook
2022 Results 27 2023 Outlook Spain Loans (eop): broadly flat, with positive growth in most profitable segments Group NII: growth at low twenties Fees: slight growth, subject to market volatility Expenses: increase at around mid single digit Core revenues expected to grow at CoR: c.35 bps mid twenties,
Slide 28: Annex
Annex 01 Net Attributable Profit 08 CET1 Sensitivity to market evolution impacts 02 Gross Income breakdown 09 CET1 YTD evolution & RWAs by business area 03 P&L Accounts by business 10 Book Value of the main unit subsidiaries 04 Customer spread by country 11 TBV per share & dividends evolution 05 Stag
Slide 29: Net Attributable Profit evolution
01 Net Attributable Profit evolution
Slide 30: Business Areas Contribution to Group's NAP 4Q22
2022 Results 30 Business Areas Contribution to Group's NAP 4Q22 yoy growth RECURRENT NET ATTRIBUTABLE PROFIT (BUSINESS AREAS CONTRIBUTION TO 4Q22 YOY GROWTH; CURRENT €M) +18% 4Q21 Spain Mexico Turkey South Rest of Corporate 4Q22 America Business Center NAP 4Q22 (€M) 365 1,218 173 121 57 -356 NAP gro
Slide 31: Business Areas Contribution to Group's NAP 12M22
2022 Results 31 Business Areas Contribution to Group's NAP 12M22 yoy growth RECURRENT NET ATTRIBUTABLE PROFIT 1 (BUSINESS AREAS CONTRIBUTION TO YOY 12M22 GROWTH; CURRENT €M) +31% 12M21 Spain Mexico Turkey South Rest of Corporate 12M22 America Business Center NAP 12M22 (€M)1 1,879 4,182 509 734 240 -
Slide 32: Gross Income breakdown
BBVA Creating Opportunities 0? Gross Income breakdo
Slide 33: Gross Income breakdown
2022 Results 33 Gross Income breakdown 12M22 (€M, %) Rest of Business 790 €M Spain South America 3% 6,145€M 4,261 €M 17% 24% Turkey 13% 3,185 €M 43% Mexico 10,839 €M Note: Figures exclude Corporate Center.
Slide 34: P&L Accounts by business unit
03 P&L Accounts by business unit Rest of Business Corporate Center Turkey (hyperinflation adjustment) Argentina (hyperinflation adjustment) Colombia Peru
Slide 35: Rest of Business Profit & Loss
2022 Results 35 Rest of Business Profit & Loss €M Δ (%) Δ (%) 4Q22 vs 4Q21 vs 3Q22 12M22 vs 12M21 Net Interest Income 88 22.6 -0.2 332 17.4 Net Fees and Commissions 57 -1.2 -10.8 243 0.3 Net Trading Income 58 44.3 22.5 208 -11.7 Other Income & Expenses 2 -7.6 34.2 7 -57.7 Gross Income 205 19.4 1.9 79
Slide 36: Corporate Center Profit & Loss
2022 Results 36 Corporate Center Profit & Loss €M Δ (%) 4Q22 12M22 vs 12M21 Net Interest Income -12 -109 -33.0 Net Fees and Commissions -6 -31 -11.9 Net Trading Income -213 -294 n.s. Other Income & Expenses 47 105 -27.7 Gross Income -185 -329 n.s. Operating Expenses -259 -852 4.0 Operating Income -44
Slide 37: Turkey hyperinflation adjustment
2022 Results 37 Turkey hyperinflation adjustment PROFIT & LOSS 1 €M 12M22 Hyperinflation 12M22 (reported) adjustment (2) Ex.Hyperinflation Net Interest Income 2,631 319 2,312 Net Fees and Commissions 587 76 511 Net Trading Income 741 103 638 Other Income & Expenses -774 -2,334 1,561 Gross Income 3,185
Slide 38: Argentina hyperinflation adjustment
2022 Results 38 Argentina hyperinflation adjustment PROFIT & LOSS 1 €M 12M22 Hyperinflation 12M22 (reported) adjustment (2) Ex.Hyperinflation Net Interest Income 1,822 398 1,424 Net Fees and Commissions 247 55 192 Net Trading Income 137 39 98 Other Income & Expenses -995 -819 -176 Gross Income 1,210 -3
Slide 39: Colombia Profit & Loss
2022 Results 39 Colombia Profit & Loss €M CONSTANT Δ (%) Δ (%) 4Q22 vs 4Q21 vs 3Q22 12M22 vs 12M21 Net Interest Income 215 11.2 3.7 846 11.0 Net Fees and Commissions 25 28.1 -2.8 101 23.2 Net Trading Income 26 13.9 -6.0 103 47.9 Other Income & Expenses -14 76.5 59.9 -31 -0.5 Gross Income 252 10.6 0.0
Slide 40: Peru Profit & Loss
2022 Results 40 Peru Profit & Loss €M CONSTANT Δ (%) Δ (%) 4Q22 vs 4Q21 vs 3Q22 12M22 vs 12M21 Net Interest Income 303 27.6 6.2 1,080 24.8 Net Fees and Commissions 67 0.4 -4.6 279 6.1 Net Trading Income 41 24.7 -6.0 162 0.7 Other Income & Expenses -10 18.1 28.8 -36 -9.1 Gross Income 400 22.0 2.4 1,48
Slide 41: Customer Spread by country
04 Customer Spread by country
Slide 42: Customer spreads: quarterly evolution
2022 Results 42 Customer spreads: quarterly evolution AVERAGE 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 Spain 1.73% 1.71% 1.72% 1.85% 2.21% Turkey TL 4.89% 5.22% 6.65% 9.00% 7.19% Yield on Loans 1.73% 1.71% 1.74% 1.93% 2.42% Yield on Loans 16.48% 17.75% 18.60% 20.92% 18.67% Cost of Deposits
Slide 43: Customer spreads: YoY evolution
2022 Results 43 Customer spreads: YoY evolution AVERAGE 12M21 12M22 12M21 12M22 Spain 1.75% 1.87% Turkey TL 3.50% 7.19% Yield on Loans 1.75% 1.95% Yield on Loans 15.72% 19.08% Cost of Deposits 0.00% -0.08% Cost of Deposits -12.22% -11.89% Mexico MXN 11.10% 11.79% Turkey FC1 4.66% 6.21% Yield on Loan
Slide 44: Stages breakdown by business areas
05 Stages breakdown by business areas
Slide 45: Stages breakdown by business areas
2022 Results 45 Stages breakdown by business areas CREDIT RISK BUSINESS BREAKDOWN BY AREA (DEC-22, €M) Gross Accumulated Gross Accumulated Gross Accumulated BBVA GROUP Exposure impairments SPAIN Exposure impairments MEXICO Exposure impairments Stage 1 372,601 2,067 Stage 1 173,174 503 Stage 1 70,409
Slide 46: Covid-related loans backed by State guarantees
06 Covid-related loans backed by State guarantees
Slide 47: Covid-related loans backed by State guarantees
2022 Results 47 Covid-related loans backed by State guarantees € Bn; DEC-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 1.3 0.8% 1.2 1.2% 0.0 0.0% 0.0 0.0% 0.0 0.6% 0.0 0.3% 0.1 1.1% C
Slide 48: ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
07 ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
Slide 49: ALCO Portfolio
2022 Results 49 ALCO Portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ Bn) Amort Cost Fair Value (HTC) (HTC&S) Dec-22 (€Bn) (€Bn) (duration) South America 0.2 6.6 0.8 years Turkey 5.3 3.2 4.3 years Mexico 4.5 7.9 2.6 years Euro 16.8 13.4 4.6 years Spain 12.6 6.0 (1) Italy 3.2 4.2 Rest 1.0 3.2 (1) Figu
Slide 50: NII sensitivity to interest rates movements
2022 Results 50 NII sensitivity to interest rates movements ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST RATE MOVEMENTS (TO +100 BPS INTEREST RATES INCREASE, %) +10 / 15% +3.7% EURO BALANCE MEXICO SHEET Note: NII sensitivities to parallel interest rates movements as of Nov22, u
Slide 51: Liquidity and funding ratios
2022 Results 51 Liquidity and funding ratios BBVA GROUP AND SUBSIDIARIES LCR & NSFR (DEC-22) LCR NSFR Total Group 159% (201%)1 135% Euro 2 186% 125% Mexico 199% 143% Turkey 185% 166% S. America All countries >100% >100% (1) LCR of 159% does not consider the excess liquidity of the subsidiaries outsi
Slide 52: CET1 Sensitivity to market impacts
08 CET1 Sensitivity to market impacts
Slide 53: CET1 Sensitivity to Market Impacts
2022 Results 53 CET1 Sensitivity to Market Impacts TO A 10% CURRENCY DEPRECIATION TO A 10% DECLINE IN TELEFONICA’S (DEC-22) SHARE PRICE (DEC-22) MXN -5bps -2 bps TRY -5bps TO +100 BPS MOVEMENT IN THE SPANISH SOVEREIGN BOND (DEC-22) USD +19bps -12 bps
Slide 54: CET1 YTD evolution & RWAs by business area
09 CET1 YTD evolution & RWAs by business area
Slide 55: Capital YTD evolution
2022 Results 55 Capital YTD evolution CET1 FULLY-LOADED – BBVA GROUP YTD EVOLUTION (%, BPS) (1) (2) (1) Includes, among others, minority interests, market related impacts, regulatory impacts and the credit in OCIs that offsets the debit in P&L due to the hyperinflation accounting. (2) Includes the re
Slide 56: Risk-weighted assets by business area
2022 Results 56 Risk-weighted assets by business area Fully-Loaded RWAs Breakdown by business area (€M) Dec-21 Sep-22 Dec-22 Spain 113,797 108,733 114,474 Mexico 64,573 80,491 71,738 Turkey 49,718 53,435 56,275 South America 43,334 51,484 46,834 Argentina 6,775 7,574 8,089 Chile 1,636 2,164 2,174 Co
Slide 57: Book Value of the main subsidiaries
10 Book Value of the main subsidiaries
Slide 58: Book Value of the main subsidiaries
2022 Results 58 Book Value of the main subsidiaries(1,2) € Bn; DEC-22 Mexico 16.4 Turkey 7.1 Argentina 1.4 Colombia 1.3 Peru 1.3 Chile 0.3 Venezuela 0.1 (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuation adjustments. The Goodwill associated to each subsi
Slide 59: TBV per share & dividends evolution
11 TBV per share & dividends evolution
Slide 60: Shareholders' return: TBV per share & dividends evolution
2022 Results 60 Shareholders’ return: TBV per share & dividends evolution TBV PER SHARE & DIVIDENDS (€ PER SHARE) TBV Dividends +19.5% (1) (1) (1) (1) (after implementation of IAS29 in Turkey) (1) April 2022 dividend per share (0.23€) and October 2022 dividend per share (0.12€)
Slide 61: Garanti BBVA: wholesale funding
12 Garanti BBVA: wholesale funding
Slide 62: Turkey - Liquidity & funding sources
2022 Results 62 Turkey - Liquidity & funding sources SOLID LIQUIDITY POSITION: LIMITED FOREIGN Total LTD ratio is at 82.4%. WHOLESALE FUNDS: Liquidity ratios above requirements: Liquidity Coverage Ratio (EBA) of 185% vs. ≥100% required in 4Q22. USD 5.0 Bn FC LIQUIDITY BUFFERS FOREIGN WHOLESALE FUNDI
Slide 63: Digital metrics
13 Digital metrics Digital & mobile customers Digital sales
Slide 64: Digital metrics: digital & mobile customers
2022 Results 64 Digital metrics: digital & mobile customers DIGITAL CUSTOMERS MOBILE CUSTOMERS (MILLION CUSTOMERS, %) (MILLION CUSTOMERS, %) +37% +41% CUSTOMER PENETRATION RATE CUSTOMER PENETRATION RATE 63.5% 68.9% 72.9% 59.5% 65.7% 70.5% Note: data excludes USA, Paraguay and Chile.
Slide 65: Digital metrics: digital sales
2022 Results 65 Digital metrics: digital sales (% OF TOTAL SALES YTD, # OF TRANSACTIONS AND PRV1) GROUP SPAIN MEXICO UNITS PRV TURKEY COLOMBIA PERU Note: Group excludes USA, Venezuela, Chile, Paraguay. (1) Product Relative Value as a proxy of lifetime economic representation of units sold.
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