Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q2 2013 Earnings Presentation
32 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Aug 1, 2013
Slide 1: Second quarter results 2013
Angel Cano, BBVA's President & Chief Operating Officer Madrid, July 31st 2013 Second quarter results 2013
Slide 2: Disclaimer
Disclaimer This document is only provided for information purposes and does not constitute, nor must 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 securities
Slide 3: Risk Highlights
Risk Highlights Resilient revenue & solid earnings Financing structure improves Performance affected by Spanish conditions Strong capital Solvency Liquidity Earnings Risk Strong fundamentals
Slide 4: Strong fundamentals: key indicators
Risk Solvency Liquidity Earnings Highlights Risk Strong fundamentals NPA ratio 5.5% Liquidity gap reduced €15bn (€ balance sheet, first half) Gross income €10,964m (first half) Core Capital - BIS 2.5 11.3% Coverage ratio 68%
Slide 5: Earnings: revenue strength despite environment
Net interest income Quarter on quarter €m Earnings: revenue strength despite environment ... +1.6% Low interest rate environment in developed economies
Slide 6: Gross income growth and recurring revenue
... reflected by gross income +2.8 % Gross income Quarter on quarter €m Recurring revenue is growing +0.4% Net interest income + fee income Quarter on quarter €m
Slide 7: Diversified model drives gross income
... thanks to a diversified model Note: excludes Holding. Year-on-year variation in constant € Spain Rest of Europe USA Mexico South America Turkey Asia USA Developed 42% YoY chg. Weight -4.7% Emerging 58% YoY chg. Weight +9.8% Breakdown of gross income 1H13 % Emerging markets are driving growth
Slide 8: Cost management adapted to each region
Cost management adapted to each region ... Costs contained Investment in infrastructure YoY change 1H13 vs 1H12 (%) Vibrant economies Investment in growth Developed Emerging YoY change 1H13 vs 1H12 (%) Costs 1H13 vs 1H12 +8.0% Note: excludes Holding.
Slide 9: Operating income remains strong in the quarter
... and operating income remains strong in the quarter Operating income Quarter on quarter €m -1.2 % Spain Rest of Europe Mexico South America Turkey Asia USA Breakdown of operating income 1H13 Superior positioning Note: excludes Holding.
Slide 10: Risk: performance affected by Spanish conditions
NPA ratio Risk: performance affected by Spanish conditions ... NPA and coverage ratios % Coverage ratio Accum. cost of risk 1.5% 1.5% 1.8% 1.9% 2.2% 3.8% excluding Real estate Real estate business €3bn Unnim absorbed NPAs €bn Provisioning* Quarter on quarter €m * Includes loan loss and property impa
Slide 11: Good results affected by non-recurring items
... in summary: good results affected by non- recurring items €m Solid growth of recurring revenue
Slide 12: Capital: solid capital position
Core capital ratio (BIS 2.5) % Capital: solid capital position Compliance with regulatory requirements * Other: mainly the AT1 issue, RWAs and FX effects BIS III fully loaded (Dec.13e) And ... 9% 4.8% Ratio leverage (Jun.13) BIS III fully loaded Equity / Tot.assets 7.8%
Slide 13: So once again...
So once again ... Strong revenue Solid results Strong structure Net attributable profit €2.9bn Capital 5.5% 3.8% excl. real estate business 68% Liquidity Risk NPA ratio Coverage ratio 11.3% BIS 2.5 €11bn Diversified revenue 58% Emerging 9% BIS III fully loaded (Dec.13e) Total issues +€6bn liquidity
Slide 14: Business Areas
’ BBVA Business Areas
Slide 15: Banking activity in Spain
Banking activity in Spain: improvements not yet reflected in business activity Lending -0.5 % +11.6% Customer funds Business activity in Spain YoY change in average balances Net interest income Quarter on quarter €m Operating income Quarter on quarter €m -9.7% Market share up 190bp thanks to greater
Slide 16: Spain: expected commercial impairment remains
Spain: expected commercial impairment remains NPA and coverage ratios (%) Loan-loss provisions* and risk premium Quarter on quarter (€m, %) NPA ratio - banking NPA ratio - real estate business Overall Spanish coverage * Includes loan-loss and property impairment
Slide 17: Banking activity in Spain: income statement
€m Unnim absorbed Impact of "floor" ruling Market share gains 2Q13 highlights Banking activity in Spain: income statement
Slide 18: Real estate business: exposure
-16.3% Real estate business: exposure 18.0 15.6 15.1 Note: transparency on like-for-like basis: the figures include Unnim but exclude the investment in Metrovacesa * Other foreclosed assets includes foreclosed assets that do not stem from financing family home buying Net exposure to real estate busi
Slide 19: Real estate business: income statement
Real estate business: income statement Strong level of sales 2Q13 highlights €m Reduced exposure to developers Retail foreclosures in line with non-performing mortgages
Slide 20: EurAsia: a dynamic area
EurAsia: a dynamic area Note: in accordance with IFRS, Garanti is accounted for by the equity method but, for the purpose of this presentation, Garanti's figures are reported based on management figures according to IFRS-8 Garanti Leading franchise Engine of growth Buoyant business +10.8% 23.7% Oper
Slide 21: EurAsia: income statement
EurAsia: income statement €m
Slide 22: Mexico: growth is maintained
Mexico: growth is maintained Lending +6.9% +6.8% Customer funds Business activity YoY change, in average balances, in constant euros Net interest income Quarter on quarter Constant €m Operating income Quarter on quarter Constant €m +6.5% +8.0% +8.2% Gross income Quarter on quarter Constant €m Solid
Slide 23: Mexico: risk indicators remain stable
Mexico: risk indicators remain stable NPA ratio Coverage ratio NPA and coverage ratios % Loan-loss provisions and cost of risk Quarter on quarter (Constant €m, %)
Slide 24: Mexico: income statement
Mexico: income statement Constant €m Improvement in deposit mix Defence of leadership Self-financing transformation 2Q13 highlights Note: pension business is included under the Holding.
Slide 25: South America: growth backed by business dynamism
South America: growth backed by business dynamism Lending +16.9% +26.3% Customer funds Business activity YoY change, in average balances, in constant euros Net interest income Quarter on quarter Constant €m Operating income Quarter on quarter Constant €m +28.7% +14.1% +9.2 % Gross income Quarter on
Slide 26: South America: risk indicators remain sound
NPA ratio Coverage ratio NPA and coverage ratios % South America: risk indicators remain sound Loan-loss provisions and cost of risk Quarter on quarter (Constant €m, %)
Slide 27: South America: income statement
South America: income statement Buoyant growth maintained Investment in infrastructure Portfolios optimized 2Q13 highlights Note: pension business is included under the Holding. Constant €m
Slide 28: USA: business continues to grow
USA: business continues to grow Lending +7.7% +11.5% Customer funds +0.3% Net interest income Quarter on quarter Constant €m Operating income Quarter on quarter Constant €m Gross income Quarter on quarter Constant €m Compass business activity YoY change, in average balances, in constant euros Intere
Slide 29: USA: high quality of risk indicators
NPA ratio Coverage ratio NPA and coverage ratios % USA: high quality of risk indicators Loan-loss provisions and cost of risk Quarter on quarter (Constant €m, %)
Slide 30: USA: income statement
USA: income statement Good business activity 2Q13 highlights Risk and cost management Sensitive to interest rates Constant €m
Slide 31: Summary: BBVA maintains solid fundamentals in the first half
Summary: BBVA maintains solid fundamentals in the first half Strong revenue Solid results Strong structure Net attributable profit €2.9bn Capital 5.5% 3.8% excl. Real estate business 68% Liquidity Risk NPA ratio Coverage ratio 11.3% BIS 2.5 €11bn Diversified revenue 58% Emerging 9% BIS III fully loa
Slide 32: Second quarter results 2013
Angel Cano, BBVA's President & Chief Operating Officer Madrid, July 31st 2013 Second quarter results 2013 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized
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