Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q1 2021 Earnings Presentation
61 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Apr 30, 2021
Slide 1: 1Q21 Results
1Q21 Results April 30th, 2021
Slide 2: Disclaimer
1Q21 Results 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 inv
Slide 3: Positive results evolution and capital generation
1Q21 Results 3 Positive results evolution and capital generation NET ATTRIBUTABLE PROFIT CET1 FULLY LOADED (€M CURRENT) (%) 13.55% +15 bps Mar-21 1,182 1,210 PRO-FORMA 1,141 AFTER US SALE AND TARGETED 10% SHARE 1,015 BUYBACK4 11.88% 11.73% 11.52% 636 11.22% 10.84% 292 1 2 1Q19 1Q20 2Q20 3Q20 4Q20 1Q
Slide 4: Delivering on our clear commitment to shareholder value creation
1Q21 Results 4 Delivering on our clear commitment to shareholder value creation TANGIBLE BOOK VALUE/ SHARE PROFITABILITY METRICS (€/ SHARE) (%) ROE 6.15 10.0 6.9 6.05 6.1 4.1 2.4 5.87 5.84 5.78 ROTE 11.0 6.9 7.8 4.6 2.8 1 2 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 (1) Ex
Slide 5: 1Q21 Top messages
1Q21 Results 5 1Q21 Top messages 1 Positive core revenue evolution, NII + FEE INCOME (€ constant) despite the challenging environment +0.5% vs.1Q20 2 OPERATING EXPENSES (€ constant) Efficiency Ratio (%) Strong cost control and leading efficiency +1.8% vs. 1Q20 45% in 1Q21 4.7% average 12M footprint
Slide 6: 1Q21 Profit & Loss
1Q21 Results 6 1Q21 Profit & Loss Change Change 1Q21/1Q20 1Q21/4Q20 BBVA Group (€m) 1Q21 % constant % current % constant Net Interest Income 3,451 -2.3 -14.2 -4.4 Net Fees and Commissions 1,133 10.0 0.8 6.7 Net Trading Income 581 16.1 6.8 205.9 Other Income & Expenses -11 n.s. n.s. n.s. Gross Income
Slide 7: Solid revenue growth in the quarter
1Q21 Results 7 Solid revenue growth in the quarter NET INTEREST INCOME NET FEES AND COMMISSIONS (€M CONSTANT) (€M CONSTANT) - 2.3% 3,614 3,609 + 10.0% Excellent 3,531 3,450 NII impacted by 3,451 evolution across interest rate the board environment, 1,133 1,030 1,027 1,062 mainly in Turkey 918 1Q20 2
Slide 8: Economic growth strengthening in 2021
1Q21 Results 8 Economic growth strengthening in 2021 REAL GDP GROWTH (YOY GROWTH; %) BBVA FOOTPRINT1 SPAIN MEXICO 5.4 5.5 7.0 4.7 4.4 2.8 -6.6 -8.5 -10.8 2020 2021e 2022e 2020 2021e 2022e 2020 2021e 2022e TURKEY COLOMBIA PERU 10.0 5.5 4.8 4.8 5.0 4.5 1.8 -6.8 -11.1 2020 2021e 2022e 2020 2021e 2022e
Slide 9: Retail new loan production volumes are picking up
1Q21 Results 9 Retail new loan production volumes are picking up BBVA RETAIL NEW LOAN PRODUCTION MORTGAGES CONSUMER LOANS (BASE 100 = FEB.2020) BBVA GROUP SPAIN MEXICO 180% 180% 180% 160% 160% 160% 140% 140% 140% 120% 120% 120% 100% 100% 100% 80% 80% 80% 60% 60% 60% 40% 40% 40% 20% 20% 20% 0% 0% 0%
Slide 10: Stabilizing interest rates offer improving prospects for customer spreads
1Q21 Results 10 Stabilizing interest rates offer improving prospects for customer spreads REFERENCE INTEREST RATES BBVA CUSTOMER SPREADS (%) (%) SPAIN Most of the Euribor repricing has already happened EURIBOR 12M 0.0 1.85 1.83 -0.2 Average 1Q20 1.80 1.78 -0.3 1.76 1.75 -0.5 -0.6 MEXICO Cost of fund
Slide 11: Solid risk indicators
1Q21 Results 11 Solid risk indicators FINANCIAL ASSETS IMPAIRMENTS NPLs (€M CONSTANT) (€BN) 1,939 +2.1% 1,403 15.3 15.6 15.0 15.5 15.6 788 922 923 1Q20 2Q20 3Q20 4Q20 1Q21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 COST OF RISK NPL & COVERAGE RATIOS (%, YTD) (%) 2.54% 83% 83% 85% 82% 81% COVERAGE 2.07% 1.68
Slide 12: Strong capital generation
1Q21 Results 12 Strong capital generation CET1 FULLY-LOADED LEVERAGE RATIO FL (QUARTERLY EVOLUTION %, BPS) (MAR-21 BBVA, DEC-20 EUROPEAN PEERS) +15bps HIGH 34 bps QUALITY 2 bps 6.5% 11.88 % CAPITAL 11.73% -17 bps -4 bps 5.5% 1 2 3 Dec-20 Results Dividend RWAs Others Mar-21 Accrual & (in constant €)
Slide 13: Ample strategic optionality focused on value creation
1Q21 Results 13 Ample strategic optionality focused on value creation We will deploy our capital CET1 FULLY-LOADED (PRO-FORMA, %) 155 bps excess capital In our markets through profitable growth over the upper end of our target and costs’ reduction range3 14.58% 13.55% Increasing shareholders distrib
Slide 14: Levering digital capabilities to better serve our customers
1Q21 Results 14 Levering digital capabilities to better serve our customers CUSTOMER TRANSACTIONS GROUP DIGITAL SALES (MILLION TRANSACTIONS1; 1Q19-1Q21 CHANGE,%) (YTD UNITS, PERCENTAGE) DIGITAL CHANNELS BRANCHES 515 +121% BBVA GROUP 69% 320 65% 233 60% 104 95 78 -25% 51% SPAIN 46 +109% 29 22 10 8 5
Slide 15: Customer growth through digital channels
1Q21 Results 15 Customer growth through digital channels All-time record in digital customer acquisition NEW CUSTOMERS DIGITAL ACQUISITION1 Customer acquisition through (CUSTOMERS ACQUIRED THROUGH DIGITAL CHANNELS, THOUSANDS AND % OF TOTAL) cutting-edge solutions Aqua cards issued in 35% 500,000 les
Slide 16: Helping our clients transition towards a more sustainable future
1Q21 Results 16 Helping our clients transition towards a more sustainable future: a massive business opportunity OVERDELIVERING ON BBVA’s 2025 PLEDGE €100 BN € 8 Bn 2025 COMMITMENT Mobilized in 1Q21 Commitment to €59 BN Net Zero emissions by 2050 2018 1Q21 2020 2025 # 1 EUROPEAN BANK # 2 WORLD BANK
Slide 17: Business Areas
Creando Oportunidades Business Areas
Slide 18: Spain
1Q21 Results 18 Spain Profit & Loss Δ (%) ACTIVITY (MAR-21) YoY (€m) 1Q21 vs 1Q20 vs 4Q20 €Bn Net Interest Income 867 -1.3 -1.5 260.5 +6.4% Net Fees and Commissions 507 8.1 12.0 YoY Net Trading Income 201 231.9 n.s. €Bn Other Income & Expenses 71 -31.6 n.s. 163.5 -1.4% Gross Income 1,646 8.9 40.2 Op
Slide 19: Mexico
1Q21 Results 19 Mexico Profit & Loss Δ Constant Δ Current Δ Constant ACTIVITY (MAR-21) (€m constant) 1Q21 vs 1Q20 (%) vs 1Q20 (%) vs 4Q20 (%) (€ CONSTANT) YoY Net Interest Income 1,366 -1.8 -11.6 -0.8 Net Fees and Commissions 282 5.8 -4.7 -5.4 YoY €Bn Net Trading Income 69 -1.9 -11.7 -25.3 79.6 +6.2
Slide 20: Turkey
1Q21 Results 20 Turkey Δ Constant Δ Current Δ Constant ACTIVITY (MAR-21) Profit & Loss (€m constant) 1Q21 vs 1Q20 (%) vs 1Q20 (%) vs 4Q20 (%) (€ CONSTANT; BANK ONLY) Net Interest Income 530 -14.6 -35.4 -14.9 Net Fees and Commissions 154 23.7 -6.5 21.4 YoY1 YoY1 Net Trading Income 126 148.5 87.9 324.
Slide 21: South America
1Q21 Results 21 South America Net Attributable 0 Δ Constant 1 Δ Current Δ Constant 1 ACTIVITY (MAR-21) (€ CONSTANT) Profit (M€ constantes) 1Q21 vs 1Q20 (%) vs 1Q20 (%) vs 4Q20 (%) YoY Colombia 48 546.7 488.8 -22.9 YoY €Bn Peru 28 10.5 -6.0 -12.4 49.4 +16.5% €Bn Argentina 6 n.s. -29.0 n.s. 2 32.6 +9.
Slide 22: 1Q2021 in review
1Q21 Results 22 1Q2021 in review Positive results and capital generation in the quarter Delivering on our clear commitment to shareholder value creation Ample strategic optionality focused on value creation Levering digital capabilities to better serve our customers and acquire new clients Helping o
Slide 23: Annex
Annex Net Attributable Profit ALCO Portfolio, NII Sensitivity 01 08 evolution and LCRs & NSFRs 02 Gross Income breakdown 09 CET1 Sensitivity to market impacts 03 P&L Accounts by business unit 10 RWAs by business area 04 Customer Spread by country 11 Book Value of the main subsidiaries 05 Stages brea
Slide 24: Net Attributable Profit evolution
01 Net Attributable Profit evolution
Slide 25: Net Attributable Profit evolution
1Q21 Results 25 Net Attributable Profit evolution €MN BUSINESSES +827€m 173 1,210 56 9 94 157 512 292 83 1Q20 FX Spain Mexico Turkey South America Rest of business Corp. Center 1Q21 Effect YoY (%) NM 46.9 96.0 117.7 13.6 (constant €) Note: excluding BBVA USA goodwill impairment (2,084 €M in 1Q20).
Slide 26: Gross Income breakdown
Q2 Gross Income breakdown Creating Opportunities
Slide 27: Gross Income breakdown
1Q21 Results 27 Gross Income breakdown 1Q21 Spain 1,646€m Rest of business 32% 218 €m 4% South America 714 €m 14% 16% Turkey 834 €m 34% Mexico 1,761 €m Note: Figures exclude Corporate Center.
Slide 28: P&L Accounts by business unit
03 P&L Accounts by business unit Rest of business Corporate Center Argentina Colombia Peru
Slide 29: Rest of Business – Profit & Loss
1Q21 Results 29 Rest of Business – Profit & Loss Profit & Loss Δ (%) (€m) 1Q21 vs 1Q20 vs 4Q20 Net Interest Income 72 11.6 2.4 Net Fees and Commissions 73 -13.2 5.8 Net Trading Income 65 29.5 68.8 Other Income & Expenses 8 -30.2 -24.5 Gross Income 218 3.6 15.5 Operating Expenses -115 -7.9 -8.5 Opera
Slide 30: Corporate Center – Profit & Loss
1Q21 Results 30 Corporate Center – Profit & Loss Profit & Loss Δ (%) (€m) 1Q21 vs 1Q20 vs 4Q20 Net Interest Income -44 -6.8 -9.7 Net Fees and Commissions -3 -66.2 -76.7 Net Trading Income 46 -77.7 n.s. Other Income & Expenses -18 -29.4 n.s. Gross Income -18 n.s. -80.9 Operating Expenses -212 0.6 -2.
Slide 31: Argentina hyperinflation adjustment
1Q21 Results 31 Argentina hyperinflation adjustment Profit & Loss 1Q21 Hyperinflation 1Q21 (€m) (reported) adjustment Ex. Hyperinflation Net Interest Income 202 7 195 Net Fees and Commissions 31 1 30 Net Trading Income 26 1 25 Other Income & Expenses -121 -93 -28 Gross Income 138 -85 222 Operating E
Slide 32: Colombia – Profit & Loss
1Q21 Results 32 Colombia – Profit & Loss Profit & Loss Δ (%) (€m constant ) 1Q21 vs 1Q20 vs 4Q20 Net Interest Income 201 5.3 1.7 Net Fees and Commissions 21 33.9 9.7 Net Trading Income 7 67.7 -55.8 Other Income & Expenses -4 248.3 110.1 Gross Income 225 7.3 -2.7 Operating Expenses -81 -2.5 -3.9 Oper
Slide 33: Peru – Profit & Loss
1Q21 Results 33 Peru – Profit & Loss Profit & Loss Δ (%) (€m constant ) 1Q21 vs 1Q20 vs 4Q20 Net Interest Income 182 -2.4 -1.1 Net Fees and Commissions 55 21.2 -1.5 Net Trading Income 34 7.3 -18.9 Other Income & Expenses -9 57.4 -8.5 Gross Income 262 1.7 -3.6 Operating Expenses -101 -1.1 -2.2 Operat
Slide 34: Customer spread by country
04 Customer spread by country
Slide 35: Customer spreads: quarterly evolution
1Q21 Results 35 Customer spreads: quarterly evolution AVERAGE 4 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Spain 1.95% 1.92% 1.89% 1.82% 1.77% Turkey TL 7.46% 7.30% 6.05% 3.90% 2.55% Yield on Loans 1.98% 1.93% 1.89% 1.83% 1.77% Yield on Loans 14.58% 13.22% 12.17% 12.88% 14.30% Cost of Deposit
Slide 36: Stages breakdown by business areas
05 Stages breakdown by business areas
Slide 37: Stages breakdown by business area
1Q21 Results 37 Stages breakdown by business area CREDIT RISK BREAKDOWN BY BUSINESS AREA (MAR-21, € MN) Gross Accumulated Gross Accumulated Gross Accumulated BBVA GROUP SPAIN MEXICO Exposure impairments Exposure impairments Exposure impairments Stage 1 313,416 2,151 Stage 1 167,715 802 Stage 1 49,93
Slide 38: EAD to most vulnerable sectors in the current environment
06 EAD to most vulnerable sectors in the current environment
Slide 39: Exposure at default to most vulnerable sectors in the current environment
1Q21 Results 39 Exposure at default to most vulnerable sectors in the current environment BREAKDOWN BY SECTORS (MAR-21) bn € Leisure 1 9,22 Commercial Real Estate 7,02 Developer Real Estate 5,70 Retailers non food 4,83 Air transportation 0,94 Total EAD to the most vulnerable sectors 27,70 as a % of
Slide 40: Outstanding loan deferrals & loans backed by State guarantees
07 Outstanding loan deferrals & loans backed by State guarantees
Slide 41: Prudent deferrals' classification and proactive provisioning
1Q21 Results 41 Prudent deferrals’ classification and proactive provisioning Expired deferrals by stages TOTAL DEFERRALS GRANTED o/w expired As of Mar'21 as a % of total loans €BN % of total loans % Stage 1 Stage 2 Stage 3 Total Group (ex-USA) 27.3 8.0% 80% 4.9% 2.4% 0.7% By segment Mortgages 11.2 1
Slide 42: Outstanding loan deferrals
1Q21 Results 42 Outstanding loan deferrals OUTSTANDING DEFERRALS (MAR-21) €bn % of loans Total Group (ex-USA) 5.45 1.60% Spain 4.1 2.0% Mexico 0.0 0.0% Turkey 0.9 2.3% Peru 0.3 1.6% Colombia 0.2 1.6% Argentina 0.0 0.0% Note: data breakdown under EBA criteria.
Slide 43: Deferrals payment evolution better than expected
1Q21 Results 43 Deferrals payment evolution better than expected TOTAL LOAN DEFERRALS EXPIRED LOAN DEFERRALS 2ND DEFERRALS BREAKDOWN GRANTED PAYMENT BEHAVIOR (MAR. 31, 2021; %) (2020-1Q21; %) (2020-1Q21; %) More than half are related to mortgages 1% Charge-offs 8.0% 11% Additional solutions OF TOTAL
Slide 44: Government backed loans
1Q21 Results 44 Government backed loans (data in €bn) (2) (3) (4) GROUP (ex USA) 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 0.9% 1.0 1.1% 0.0 0.0% 0.0 0.0% 0.1 4.4% 0.0 0.3% 0.2 3.1% Co
Slide 45: ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
08 ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
Slide 46: ALCO portfolio
1Q21 Results 46 ALCO portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) 1 Amort Cost Fair Value 41.8 44.7 47.7 (HTC) (HTC&S) 4.0 March 2021 (€BN) (€BN) (duration) South America 3.2 3.8 South America 0.1 3.9 1.4 years 6.6 10.1 Mexico 9.0 Mexico 2.5 7.6 3.6 years 7.8 7.2 6.7 Turkey Turkey 3.6 3.1 3.5
Slide 47: NII sensitivity to interest rates movements
1Q21 Results 47 NII sensitivity to interest rates movements ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST RATE MOVEMENTS (%) NII SENSITIVITY TO +100 BPS NII SENSITIVITY TO -100BPS 20% 0% 15% -5% 10% -10% 5% -15% 0% -20% Euro Mexico Euro Mexico Note: NII sensitivities calculated
Slide 48: Liquidity and funding ratios
1Q21 Results 48 Liquidity and funding ratios BBVA GROUP AND SUBSIDIARIES LCR & NSFR (MAR-21) BBVA GROUP 1 Euro Mexico Turkey S. America LCR 151% (193%2) 186% 206% 162% All countries >100% NSFR 127% 119% 139% 148% All countries >100% (1) Includes USA (regulatory). (2) LCR of 151% does not consider th
Slide 49: CET1 sensitivity to market impacts
09 CET1 sensitivity to market impacts
Slide 50: CET1 Sensitivity to Market impacts
1Q21 Results 50 CET1 Sensitivity to Market impacts1 TO A 10% DECLINE IN THE PRICE OF TELEFONICA SHARE PRICE (MAR-21) TO A 10% CURRENCY DEPRECIATION - 2.5bps (MAR-21) MXN -5bps TRY -2bps TO +100 BPS MOVEMENT IN THE USD +9bps SPANISH SOVEREIGN BOND (MAR-21) - 16bps (1) CET1 sensitivity considering the
Slide 51: RWAs by business area
10 RWAs by business area Creating Opportunities
Slide 52: Risk-Weighted Assets by business areas
1Q21 Results 52 Risk-Weighted Assets by business areas Fully-Loaded RWAs Breakdown by business area (€m) Mar-21 Dec-20 Mar-20 Spain 107,872 104,388 110,929 Turkey 53,252 53,021 59,163 Mexico 61,981 60,825 53,540 South America 38,948 39,804 44,876 Argentina 5,727 5,685 6,910 Chile 1,577 1,575 1,749 C
Slide 53: Book Value of the main subsidiaries
11 Book Value of the main subsidiaries
Slide 54: Book Value of the main subsidiaries
1Q21 Results 54 Book Value of the main subsidiaries1,2 € BN, MAR-21 Mexico 11.6 Turkey 3.5 Colombia 1.3 Perú 1.0 Argentina 0.9 Chile 0.3 Venezuela 0.1 (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuation adjustments. The Goodwill associate to each subsidia
Slide 55: TBV per share evolution
12 TBV per share evolution Creating Opportunities
Slide 56: Shareholders' return: TBV per share evolution
1Q21 Results 56 Shareholders’ return: TBV per share evolution TBV PER SHARE (€ PER SHARE) +6.5% 6.05 6.15 5.78 5.87 5.84 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
Slide 57: Garanti BBVA: wholesale funding
13 Garanti BBVA: wholesale funding
Slide 58: Turkey – Liquidity & funding sources
1Q21 Results 58 Turkey – Liquidity & funding sources Solid liquidity position: • Total LTD ratio is at 95.8%, increasing by +2.3 p.p in 1Q21 driven by an increase in TRY LtD • Foreign currency loans decreased by USD 0.7 Bn to c. USD 11.9 Bn in 1Q21 • Liquidity ratios above requirements: Liquidity Co
Slide 59: Digital sales breakdown
14 Digital sales breakdown Creating Opportunities
Slide 60: Outstanding trend in digital sales
1Q21 Results 60 Outstanding trend in digital sales (% OF TOTAL SALES YTD, # OF TRANSACTIONS AND PRV1) UNITS PRV GROUP SPAIN MEXICO 65.2 69.5 59.9 67.2 59.7 58.1 60.5 55.9 47.4 UNITS 59.8 52.4 46.6 48.2 48.2 48.2 PRV 40.5 39.5 43.0 Mar-19 Mar-20 Mar-21 Mar-19 Mar-20 Mar-21 Mar-19 Mar-20 Mar-21 TURKEY
Slide 61: BBVA
BBVA
Banco Bilbao Vizcaya Argentaria — Q1 2021 Earnings Presentation on 6ix