26 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Nov 1, 2018
Slide 1: 3Q18 Corporate Presentation
Slide 2: Disclaimer
BBVA 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 sec
Slide 3: Our Purpose
OUR PURPOSE BBVA To bring the age of opportunity to everyone , BBVA’S GLOBAL PRESENCE FINANCIAL HIGHLIGHTS SEPTEMBER 2018 SEPTEMBER 2018 Total assets ie aes aoe, agra sos Ae 668,985 383,111 365,687 ¥ a 7 + q ix ° “ < \ MP @ Net attributable profit NPL ratio Coverage ratio f XD i. OA all 1,674 41% 73
Slide 4: BBVA Purpose
\- a | a ‘ 1 mon ‘ed BBVA Purpose Cw a
Slide 5: BBVA Purpose: Six Strategic Priorities
BBVA PURPOSE We are BBVA. We create opportunities OUR PURPOSE SIX STRATEGIC PRIORITIES . : New standard in customer To bring the age "experience of opportunity @ Digital sales to everyone BS New business models ee Optimize capital allocation BBVA ©% Unrivaled efficiency _ a A first class workforce C
Slide 6: New value proposition
BBVA PURPOSE New value proposition Based on our customers’ real needs Oo. .0 g a i= e Helping our customers Providing the best Through an easy and to make the best financial solutions convenient experience decisions offering relevant that generate trust for our DIY through digital advice customers,
Slide 7: Our Values
BBVA PURPOSE Our Values Customer comes first We think big We are one team G We are empathetic Weare ambitious @ |amcommitted Q We have integrity © We break the mold 43 | trust others @ We meet their needs ® Weamaze our customers | 8 | lam BBVA
Slide 8: Slide 8
Slide 9: Sound Results in the Quarter
QUARTERLY UPDATE Sound Results in the Quarter Net Attributable Profit ——— +633Em a Strong core revenue growth QUARTERLY EVOLUTION (ém) — pecs a Delivery in efficiency 1,674 a Accelerating our , 1340 1,309 transformation 1143, 1.199 impairment a Sound risk indicators 1,123 a Solid capital position, a
Slide 10: 9M18 Profit & Loss
JARTERLY UPDATE 9M18 Profit & Loss Change 9M18/9M17 BBVA Group Net Interest Income 12,899 -2.3 10.2 Net Fees and Cornmissions 3,653 “1.4 9.4 Net Trading Income 907 -35.9 -31.2 Other Income & Expenses 136 -76.7 -73.7 Gross Income 17,596 6.9 43 Operating Expenses -8,721 7.1 27 Operating Income 8,875 -
Slide 11: Delivery in efficiency
QUARTERLY UPDATE Delivery in efficiency Group Operating Jaws Efficiency Ratio (YoY (%); (€ constant)) (€ constant) 10.1% -? 16,553 53.0% Revenues’ | . 8,460 -- 0.3%--> 8,490 -- 2.7%->° 2) eae Expenses OMI16 OMI7 OomM18 12M16 12M17 9M18 (*)Core Revenues: Net Interest Income + Net Fees and Commission:
Slide 12: Outstanding trend in digital sales across the board
QUARTERLY UPDATE Outstanding trend in digital sales across the board Group Digital sales by product (% of total sales ytd, PRV") (% of total sales YtD, # of transactions and PRV*) 43.0% Consumer loans 37.9% WW SMEs loans 305 DB uwrs} 30.0% [] Demand deposits 247 20.6% & Insurance 15.3 30.7 Pe 16.6%
Slide 13: Positive performance in digital sales in all markets
QUARTERLY UPDATE Positive performance in digital sales in all markets (% of total sales YtD, # of transactions and PRV*) Spain USA Mexico Turkey South America 52.2 37 24.6 AN 34.6 mw 19.4 29.6 6 b= 23,2 Wa vy wi 34.4 j 27.4 15.7 6.2 10.5 nN 11.0 : 72 10. 19.0 6. 24 ol 3.0 17.2 Sep-16 Sep-17 Sep-18 S
Slide 14: Growth in digital and mobile customers
QUARTERLY UPDATE Growth in digital and mobile customers Digital Customers (Mn, % penetration) Mobile Customers (Mn, % penetration) 26.0 43% > 217 +23% 322m > 21 —> rae, 15.8 172 12 Sep-16 Sep-17 Sep-18 Sep-16 Sep-17 Sep-18 35% 42% 49% 23% 31% 41% PENETRATION PENETRATION Leading in our footprint BBVA
Slide 15: Best in class in Mobile Banking App
QUARTERLY UPDATE Best in class in Mobile Banking App The Forrester Banking Wave GLOBAL BANKING APP RANKING 2018 FORRESTER BBVA \ BANKING \ BBVA
Slide 16: Global solutions allow for a faster time to market and productivity improvements
QUARTERLY UPDATE Global solutions allow for a faster time to market and productivity improvements Global delivery of solutions GLOBAL MOBILE APP 2 8 50% -30% -40% FTEs Development cost Time-to-Market
Slide 17: New business models
QUARTERLY UPDATE New business models Leveraging the FinTech ecosystem to develop our value proposition ACQUISITIONS/ VENTURE INVESTMENTS CREATION dent © simpte oO Bazlo enizenr HOLVI mune @ covauLt S solaris eee Room tuyye U Upturn Minority sske sovesicke BBVA | cea Ptorn @penpay Sion BBVA & anthemi
Slide 18: Creating Opportunities: Business Areas
reating Opportunities Business Areas
Slide 19: Well diversified footprint with high growth prospects
QUARTERLY UPDATE - Busi Well diversified footprint with high growth prospects Breakdown by Business Area Higher Growth Prospects 9 TOTAL ASSETS (Sep.18) GDP growth (YoY, %) Rest of Eurasia Corporate Center S. Americ Be & 5.0% 1.9 VW 76% v Turkey Spain! | T 9.9% €669 bn 50.0% aN 2018e 2019e ia e ‘BBV
Slide 20: Business Areas
QUARTERLY UPDATE - Business Areas & Spain BANKING ACTIVITY NET ATTRIBUTABLE PROFIT (9M18) | 167 € MN _ +10.5% vs. om NPLRATIO! 5.0% vs. 5.8% 3Q17 COVERAGE RATIO 56% vs. 52% 3Q17 «@ Loans: Continued growth in most profitable retail segments. a@ Core revenue growth (+1.3% yoy in 9M18): sound growth in
Slide 21: Business Areas
QUARTERLY UPDATE - Business Areas (*) Mexico €constants NET ATTRIBUTABLE PROFIT (9M18) 1,851 € IM +22.5% vs. om7 NPLRATIO. 2.0% vs. 2.3% 3Q17 COVERAGE RATIO 149% vs. 126% 3Q17 a Loans: mortgages and consumer loans, the main growth drivers in 3Q. a NII growing above activity. a Widening operating jaw
Slide 22: CIB — 9M18 Results
QUARTERLY UPDATE - Busin CIB — 9M18 Results Business activity Client's revenue Results (constant €, % YtD) (constant €, % YoY) (constant €, % YoY) 56 €bn +460 2,031€m +2% 2,203 €m +04% OPERATING INCOME Wholesale banking 6 CUSTOMER FUNDS Q2og ecuntcat Gweincse) 1 A4 €m -0.2% 0 % of revenues given by
Slide 23: Annex
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Slide 24: BBVA had significant growth since 1995
ANNEX BBVA had significant growth since 1995 More than 160 years of history e 1995 Banco Continental (Peru) Probursa (México) 1996 Banco Ganadero (Colombia) Bancos Cremi and Oriente (Mexico) Banco Francés (Argentina) 1997 Banco Provincial (Venezuela) B.C. Argentino (Argentina) 1998 Poncebank (Puerto
Slide 25: Organizational chart
ANNEX Organizational chart EXECUTION & PERFORMANCE Corporate & Investment Banking ie JuanAsua Country Monitoring! wed. Jorge Sdenz-Azcuinaga Spain Cristina de Parias Mexico Sw Eduardo Osuna USA a“ Onur Geng Turkey = Fuat Erbil CEO mite Carlos Torres Vila NEW CORE COMPETENCIES Client Solutions? Derek
Slide 26: Slide 26