Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — BBVA — Q1 2019 Earnings Presentation
45 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Apr 29, 2019
Slide 1: 1Q19 Results
1Q19 Results April 29th, 2019
Slide 2: Disclaimer
1Q19 Results 2 April 29th 2019 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 decisi
Slide 3: Strong value creation and resilient capital position
1Q19 Results 3 April 29th 2019 Strong value creation and resilient capital position Net Attributable Profit TBV/Share + Dividends CET1 fully-loaded (€m) (€/sh.) (%) +11% vs Mar18 1,787 +4% Absorbing -11 bps of IFRS16 impact 633 1,290 1,245 BBVA 6.10 Chile sale 1,164 0.16 11.34% 11.35% 1,001 5.86 Div
Slide 4: 1Q19 Highlights
1Q19 Results 4 April 29th 2019 1Q19 Highlights 01 Core revenue growth NII + FEES (€ constant) +8.0% vs. 1Q18 02 Outstanding operating OPERATING INCOME EFFICIENCY income and efficiency +10.2% vs. 1Q18 (€ constant) 48.1% -118 bps vs. 12M18 (€ constant) 03 Sound risk indicators NPL RATIO COVERAGE RATIO
Slide 5: 1Q19 Profit & Loss
1Q19 Results 5 April 29th 2019 1Q19 Profit & Loss Change 1Q19/1Q18 BBVA Group (€m) 1Q19 % % constant Net Interest Income 4,420 5.8 9.5 Net Fees and Commissions 1,214 -0.6 2.6 Net Trading Income 426 8.7 13.5 Other Income & Expenses 8 -90.8 -89.6 Gross Income 6,069 3.3 7.0 Operating Expenses -2,922 0.
Slide 6: Core Revenue Growth
1Q19 Results 6 April 29th 2019 Core Revenue Growth Net Interest Income Net Fees and Commissions (€m constant) (€m constant) +9.5% +2.6% Good 1,214 Resilient 4,728 1,183 1,226 1,218 1,235 4,488 4,420 performance fee 4,036 4,165 in most generation CPI Linkers geographies 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18
Slide 7: Outstanding Operating Income and Efficiency
1Q19 Results 7 April 29th 2019 Outstanding Operating Income and Efficiency Group Operating Jaws Group Operating Income Efficiency Ratio (YoY (%); (€ constant)) (YoY (%); (€m constant)) (%; € constant) 65.4% INFLATION +10.2% 6.1% Average 12m 3,147 50.1% 8.0% 2,855 49.3% 3.7% -118 bps 48.1% Core Opera
Slide 8: Sound risk indicators
1Q19 Results 8 April 29th 2019 Sound risk indicators Financial Assets Impairments NPLs (€m constant) (€bn) +31.4% - 1.8 € bn 1,351 1,032 1,023 779 Impacted by 19.1 19.3 762 IFRS9 macro adjustment 17.7 17.1 17.3 1Q18 2Q18 3Q18 4Q18 1Q19 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Cost of risk NPL & Coverage r
Slide 9: Resilient capital position
1Q19 Results 9 April 29th 2019 Resilient capital position CET1 fully-loaded - BBVA Group YtD Evolution (%, bps) +1 bps +12 bps 33 bps 11.34% 11.23% 11.35% -6 bps -11 bps -15 bps Dec-18 IFRS16 Dec.18 Net Dividends & AT1 Others* Mar-19 impact proforma Earnings coupons (*) Others includes RWAs evolutio
Slide 10: Focus on shareholder value
1Q19 Results 10 April 29th 2019 Focus on shareholder value TBV per Share & Dividends Leading profitability metrics (€ per Share) (%) +11% ROTE 11.9% 7.7% +4% 6.20 5.80 5.96 0.26 Dividends 5.60 5.65 0.10 0.10 BBVA European 5.94 Peer Group Average 5.86 5.70 ROE 9.9% 6.4% Mar-18 Jun-18 Sep-18 Dec-18 Ma
Slide 11: The impact of transformation
1Q19 Results 11 April 29th 2019 The impact of transformation GROWTH ENGAGEMENT AND Digital driving growth TRANSACTIONALITY Being in the cash flow of our clients HIGHER ENGAGEMENT AND ACTIVE CLIENTS GROWTH CROSS SELL (# OF CLIENTS, BBVA GROUP) (# MULTIPRODUCT CUSTOMERS, 3 MONTHS AFTER ONBOARDING, PER
Slide 12: Growing in digital and mobile customers, leading to an outstanding trend in digital sales
1Q19 Results 12 April 29th 2019 Growing in digital and mobile customers, leading to an outstanding trend in digital sales Digital Sales Digital Customers Mobile Customers (% of total sales YtD, (Mn, % growth) (Mn, % growth) # of transactions and PRV*) +47% +25% +28% +17% 24.4 57 UNITS 28.4 48 24.2 1
Slide 13: Differentiating through digital
1Q19 Results 13 April 29th 2019 Differentiating through digital Availability of products Solutions provided by our App through App SALES SERVICE ADVICE BBVA 83% Peer 1 65% Peer 2 64% Peer 3 62% Peer 4 60% Peer 5 50% Peer 6 49% Peer 7 35% Peer 8 34% Source: Management Solutions report – Mobile Bankin
Slide 14: Business Areas
Business Areas Creating Opportunities
Slide 15: Spain
1Q19 Results 15 April 29th 2019 Spain YtD YtD Activity (Mar-19) +0.2% +0.0% Profit & Loss Δ (%) Δ (%) (€m) 1Q19 vs 1Q18 vs 4Q18 YoY YoY €bn Net Interest Income 882 -4.9 -4.5 €bn +1.8% 245.5 +4.3% 166.8 Net Fees and Commissions 414 0.3 0.6 Net Trading Income 108 -35.2 -47.3 Other Income & Expenses 94
Slide 16: USA
1Q19 Results 16 April 29th 2019 USA YtD YtD Activity (Mar-19) -0.9% +0.1% Profit & Loss Δ Constant Δ Current Δ Constant (constant €) (€m) 1Q19 vs 1Q18 (%) vs 1Q18 (%) vs 4Q18 (%) YoY YoY Net Interest Income 615 8.4 17.4 0.0 €bn €bn 61.4 YoY 65.2 Net Fees and Commissions 151 -5.7 2.1 1.9 +6.6% +1.5%
Slide 17: Mexico
1Q19 Results 17 April 29th 2019 Mexico YtD YtD Activity (Mar-19) +0.1% +0.9% Profit & Loss Δ Constant Δ Current Δ Constant (constant €) (€m) 1Q19 vs 1Q18 (%) vs 1Q18 (%) vs 4Q18 (%) YoY YoY €bn €bn Net Interest Income 1,500 7.8 13.9 -0.8 53.0 +8.6% 72.1 +6.5% Net Fees and Commissions 300 1.2 6.9 -4.
Slide 18: Turkey
1Q19 Results 18 April 29th 2019 Turkey Activity (Mar-19) Profit & Loss Δ Constant Δ Current Δ Constant (constant €, Bank only) (€m) 1Q19 vs 1Q18 (%) vs 1Q18 (%) vs 4Q18 (%) YoY1 YoY1 Net Interest Income 695 20.2 -7.7 -26.2 YtD Net Fees and Commissions 194 25.8 -3.4 10.2 -0.6% FC -8.2% YtD Net Tradin
Slide 19: South America
1Q19 Results 19 April 29th 2019 South America YtD YtD (1) Activity (Mar-19) +1.3% +3.9% Net Attributable Profit Δ Constant (1) Δ Current Δ Constant (1) (constant €) (€m) 1Q19 vs 1Q18 (%) vs 1Q18 (%) vs 4Q18 (%) €bn YoY2 YoY2 €bn Colombia 58 -5.0 -6.4 21.2 35.4 -0.5% +7.5% 49.8 +12.2% Peru 43 15.1 21
Slide 20: Final remarks
1Q19 Results 20 April 29th 2019 Final remarks 01 Double digit operating income growth driven by core revenues and continued efficiency improvement 02 Resilient capital position, absorbing the full impact of IFRS16 03 Strong value creation and leading double-digit profitability 04 Transformation posi
Slide 21: Annex
1Q19 Results 21 April 29th 2019 Annex 01 Customer spread by 06 ALCO portfolio & LCRs country 07 Garanti: wholesale 02 Gross Income breakdown funding 03 Net Attributable Profit evolution 08 RWA by business area 04 P&L accounts by business 09 Book Value of the main unit subsidiaries 05 Argentina: hype
Slide 22: Customer spread by country
01 Customer spread by country
Slide 23: Customer spreads: Quarterly evolution
1Q19 Results 23 April 29th 2019 Customer spreads: Quarterly evolution Average 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Spain 1.94% 1.94% 1.93% 1.95% 1.96% Turkey TL 4.94% 5.18% 4.02% 1.12% 2.50% Yield on Loans 2.01% 2.01% 2.01% 2.03% 2.04% Yield on Loans 14.55% 15.14% 17.19% 18.98% 19.02% C
Slide 24: Gross Income breakdown
BBVA Creating Opportunitie: Q2 Gross Income breakdown
Slide 25: Gross Income breakdown
1Q19 Results 25 April 29th 2019 Gross Income breakdown 3M19 Spain 1,497 €m Rest of Eurasia 103 €m 24% 2% USA 13% 804 €m South America 16% 985 €m 14% Turkey 884 €m 31% Mexico 1,902 €m Note: Figures exclude Corporate Center.
Slide 26: Net Attributable Profit evolution
03 Net Attributable Profit evolution
Slide 27: Group – Net Attributable Profit
1Q19 Results 27 April 29th 2019 Group – Net Attributable Profit (€m) BUSINESSES -71 €m 1,290 1,164 90 -29 28 -23 -59 -4 -84 -12 -32 3M18 BBVA Chile FX Spain USA Mexico Turkey Rest of South Corp. Center 3M19 Effect Eurasia America YoY (%) -14.7 -39.8 4.7 -7.7 -66.9 86.5 (constant €)
Slide 28: P&L accounts by business unit
04 P&L accounts by business unit Rest of Eurasia Corporate Center Colombia Peru
Slide 29: Rest of Eurasia - Profit & Loss
1Q19 Results 29 April 29th 2019 Rest of Eurasia - Profit & Loss Change (%) Rest of Eurasia (€m) 1Q19 vs 1Q18 vs 4Q18 Net Interest Income 39 -8.0 -20.2 Net Fees and Commissions 36 -7.6 48.7 Net Trading Income 27 -39.0 10.8 Other Income & Expenses 2 141.5 n.s. Gross Income 103 -17.8 6.9 Operating Expe
Slide 30: Corporate Center - Profit & Loss
1Q19 Results 30 April 29th 2019 Corporate Center - Profit & Loss Change (%) Corporate Center (€m) 1Q19 vs 1Q18 vs 4Q18 Net Interest Income -71 4.9 11.5 Net Fees and Commissions -15 104.9 75.8 Net Trading Income -7 -70.2 -88.0 Other Income & Expenses -14 n.s. -154.0 Gross Income -107 5.1 2.2 Operatin
Slide 31: Colombia - Profit & Loss
1Q19 Results 31 April 29th 2019 Colombia - Profit & Loss Change (%) Colombia (constant €m) 1Q19 vs 1Q18 vs 4Q18 Net Interest Income 212 2.7 1.5 Net Fees and Commissions 22 -3.8 -20.8 Net Trading Income 20 45.7 11.4 Other Income & Expenses 8 28.9 68.1 Gross Income 263 5.1 1.0 Operating Expenses -93 0
Slide 32: Peru - Profit & Loss
1Q19 Results 32 April 29th 2019 Peru - Profit & Loss Change (%) Peru (constant €m) 1Q19 vs 1Q18 vs 4Q18 Net Interest Income 219 15.0 -2.1 Net Fees and Commissions 54 5.8 -12.2 Net Trading Income 39 6.4 5.5 Other Income & Expenses -6 106.6 -42.7 Gross Income 306 11.1 -1.7 Operating Expenses -112 8.0
Slide 33: Argentina: hyperinflation adjustment
05 Argentina: hyperinflation adjustment
Slide 34: Argentina hyperinflation adjustment
1Q19 Results 34 April 29th 2019 Argentina hyperinflation adjustment Profit & Loss 1Q19 Hyperinflation 1Q19 (€m) (reported) adjustment Ex. Hyperinflation Net Interest Income 219 7 212 Net Fees and Commissions 32 1 31 Net Trading Income 137 3 133 Other Income & Expenses -109 -82 -26 Gross Income 279 -
Slide 35: ALCO portfolio and Liquidity Coverage Ratios
06 ALCO portfolio and Liquidity Coverage Ratios (LCRs)
Slide 36: ALCO portfolio & Liquidity Coverage Ratios (LCRs)
1Q19 Results 36 April 29th 2019 ALCO portfolio & Liquidity Coverage Ratios (LCRs) ALCO Portfolio breakdown by region (€ bn) 53.9 49.7 52.4 South America South America 2.4 South America 2.9 3.5 Mexico Mexico 4.6 4.7 Mexico 6.4 Turkey Turkey 8.3 Turkey 8.2 9.3 USA 10.6 USA 11.7 USA 11.9 Euro1 25.9 Eur
Slide 37: Garanti: wholesale funding
07 Garanti: wholesale funding
Slide 38: Turkey – Liquidity & Funding Sources
1Q19 Results 38 April 29th 2019 Turkey – Liquidity & Funding Sources Solid liquidity position: • Improved LTD ratio to 99%, decreasing by 1 p.p. in 1Q19, mainly driven by the continued improvement in the Foreign Currency LTD by c.5 p.p. to 61% • Stable Foreign currency loans in 1Q19 • Liquidity rati
Slide 39: Risk-Weighted Assets by business area
08 Risk-Weighted Assets by business area
Slide 40: Risk-Weighted Assets by business area
1Q19 Results 40 April 29th 2019 Risk-Weighted Assets by business area Fully-Loaded RWA Breakdown by business area and main countries (€m) Mar-18 Dec-18 Mar-19 Spain 109,746 104,125 107,935 USA 57,266 64,175 64,969 Turkey 60,904 56,486 58,526 Mexico 47,715 53,177 54,794 South America 55,732 42,724 44
Slide 41: Book Value of the main subsidiaries
09 Book Value of the main subsidiaries
Slide 42: Book Value of the main subsidiaries
1Q19 Results 42 April 29th 2019 Book Value of the main subsidiaries1,2 € Bn Mar19 Mexico 10.2 USA 7.6 Turkey 4.0 Colombia 1.3 Peru 1.0 Argentina 0.8 Chile 0.3 Venezuela 0.1 (1) Includes the initial investment + undistributed results + FX impact + other valuation adjustments. The Goodwill associate t
Slide 43: Digital sales breakdown
BBVA Creating Opportunitie: 10 Digital sales breakdown
Slide 44: Digital sales: outstanding trend across the board
1Q19 Results 44 April 29th 2019 Digital sales: outstanding trend across the board (% of total sales YtD, # of transactions and PRV**) GROUP SPAIN USA* 56.8 UNITS 48.0 47.7 UNITS 27.4 42.6 UNITS 28.0 PRV 20.7 PRV 42.6 24.1 41.3 PRV 31.9 33.1 16.1 24.2 17.2 12.3 18.0 16.9 Mar-17 Mar-18 Mar-19 Mar-17 M
Slide 45: BBVA
BBVA