Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — BBVA — Q3 2014 Earnings Presentation
43 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Oct 29, 2014
Slide 1: Third quarter results 2014
Results 3Q14 / October 29th 2014 Pendiente actualizar Third quarter results 2014 Angel Cano, BBVA´s President & Chief Operating Officer Madrid, October 29th 2014 1
Slide 2: Disclaimer
Results 3Q14 / October 29th 2014 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 decisi
Slide 3: Comprehensive assessment
Comprehensive assessment 3 Peer Group includes: BARCL, BNPP, CASA, CMZ, DB, ISP, HSBC, LBG, RBS, SAN, SG and UCI. Leverage ratio and Excess NPL Coverage excludes UK banks (not subject to AQR)
Slide 4: Strong fundamentals
Results 3Q14 / October 29th 2014 Strong fundamentals Top line growth Improvement in Earnings Risks risk indicators Solid position in Liquidity Solvency Capital strength every market as competitive advantage Digital Key long term strategic lever transformation 4
Slide 5: Strong fundamentals
Results 3Q14 / October 29th 2014 Strong fundamentals NPA ratio Net interest income 4.3% (-30 bp YoY) +7.8% Earnings Risks Coverage ratio 64% (3Q14 vs 3Q13) (+5 pp YoY) Core capital Solid position in Liquidity Solvency every market CRD IV 11.7% (Phased-in) (+12 bp vs 2Q14) Digital Key long term strat
Slide 6: Digital transformation
Results 3Q14 / October 29th 2014 Digital transformation 1 5 2 4 3 6
Slide 7: Digital transformation: spotlight
Results 3Q14 / October 29th 2014 Digital transformation: spotlight 7
Slide 8: Earnings: Solid net interest income supporting revenue strength
Results 3Q14 / October 29th 2014 Earnings: Solid net interest income supporting revenue strength -3.0% 9M14 vs 9M13 Gross income +0.7% 3Q14 vs 3Q13 Excluding FX effect +7.8% 3Q14 Highlights 4,969 5,115 5,316 5,160 4,786 Net interest + fee income +15.7% 4,742 4,886 constant €m at record levels 4,480
Slide 9: Cost control and positive jaws
Results 3Q14 / October 29th 2014 Cost control and positive jaws … -3.6% 9M14 vs 9M13 Costs -0.2% 3Q14 vs 3Q13 Excluding FX effect Gross income vs costs Cost control YoY (%) 0,2 Developed Costs Gross income -3,5 Costs 9M14 Inflation 6,6 7,7 6,0 c 7,2 5,0 Investment for growth Emerging 4,1 4,1 High in
Slide 10: … maintaining a resilient operating income
Results 3Q14 / October 29th 2014 … maintaining a resilient operating income Operating -2.3% 9M14 vs 9M13 income +1.8% 3Q14 vs 3Q13 Excluding FX effect Constant €m +10.9% 2,477 2,651 2,418 2,180 2,251 3Q13 4Q13 1Q14 2Q14 3Q14 10
Slide 11: Loan-loss and real estate provisions trend stable
Results 3Q14 / October 29th 2014 Loan-loss and real estate provisions trend stable Loan-loss + real estate provisions Cost of risk YTD €m Group excluding real estate activities (%) Loan-loss provisions 2.357 Real Estate assets provisions 373 1.662 227 1.244 1.221 1.245 1.6 1.5 155 152 109 1.2 1.2 1.
Slide 12: In conclusion: positive trends maintained
Results 3Q14 / October 29th 2014 In conclusion: positive trends maintained €m Growth Growth Growth BBVA Group 9M14 9M14/9M13 3Q14/2Q14 3Q14/3Q13 Abs. % % constant % % Net interest Income M 10,868 + 15 0.1 13.1 5.0 7.8 Gross Income N 15,592 - 484 -3.0 6.6 -1.8 0.7 Operating income M 7,546 - 180 -2.3
Slide 13: Risk: indicators continue to improve
Results 3Q14 / October 29th 2014 Risk: indicators continue to improve Risk Indicators NPAs €bn Coverage ratio (%) Refinanced loans 59 59 63 64 58 17.2 17.0 16.8 16.7 16.3 2.5 NPA ratio (%) 4.6 4.6 4.6 4.5 4.3 Sept.13 Dec.13 Mar.14 Jun.14 Sept.14 3Q13 4Q13 1Q14 2Q14 3Q14 Incl. Real Estate 26.5 26.2 2
Slide 14: Capital and liquidity
Results 3Q14 / October 29th 2014 Capital and liquidity Core Capital CRD IV (Phased-in) 11.7% (+12 bp vs 2Q14) Strong and (Fully-loaded) resilient 10.1% regulatory ratios (+5 bp vs 2Q14) Leverage Ratio (Fully-loaded) 5.7% 14 Note: ratio leverage: provisional data
Slide 15: Business Areas
: BBVA BUSINESS: Areas
Slide 16: Developed
Results 3Q14 / October 29th 2014 Developed 16
Slide 17: Banking activity in Spain: Business activity and results
Results 3Q14 / October 29th 2014 Banking activity in Spain Business activity (YoY chg in average balances) Customer Lending -5.6% funds +11.1% Results (€m) NII + fees Gross income Operating income +10.8% +1.0% +5.9% 1.320 1.321 915 1.627 735 778 1.192 1.482 1.497 +0.1% -8.0% -14.9% 3Q13 2Q14 3Q14 3Q
Slide 18: Banking activity in Spain: Risk: positive trends continue
Results 3Q14 / October 29th 2014 Banking activity in Spain Risk: positive trends continue Risk indicators NPAs (%) Coverage ratio (€ bn) Refinance loans 41 41 44 44 41 12.5 12.5 12.5 12.3 11.7 NPA ratio 2.5 6.2 6.4 6.4 6.3 6.2 Sep.13 Dec.13 Mar.14 Jun.14 Sep.14 3Q13 4Q13 1Q14 2Q14 3Q14 Cost of risk
Slide 19: Banking activity in Spain: Income Statement
Results 3Q14 / October 29th 2014 Banking activity in Spain Income Statement (€m) Growth Banking activity in Spain 9M14 9M14/9M13 Abs. % Net interest Income M 2,835 - 85 -2.9 Gross Income N 4,881 + 144 3.0 Operating income M A R 2,743 + 284 11.6 Income Before Tax TE 1,184 + 1,084 n.s. Net Attributabl
Slide 20: Real estate activity in Spain
Results 3Q14 / October 29th 2014 Real estate activity in Spain Net exposure* Sales Volume (€ bn) (Units) +10.2% 16.049 -8.9% 14.565 14,6 14,2 9M13 9M14 13,8 13,3 Net attributable profit (€m) - 844 -29.1% - 598 dec.13 mar.14 jun.14 sep.14 9M13 9M14 *Net exposure according to Bank of Spain's "RE trans
Slide 21: USA: Business activity and results
Results 3Q14 / October 29th 2014 USA Business activity (Average balance, YoY, in constant €) Customer Lending* +13.0% Funds * +12.7% Results (Constant €m) NII + fees Gross income Operating income +2.0% +1.5% -9.9% 526 507 515 476 489 486 158 160 143 -0.6% -2.2% -10.7% 3Q13 2Q14 3Q14 3Q13 2Q14 3Q14 3
Slide 22: USA: Risk
Results 3Q14 / October 29th 2014 USA Risk NPA and coverage Loan-loss provisions and ratios cost of risk (%) (Constant €m, %) Coverage ratio 168 164 0,3 160 0,2 0,2 134 0,1 0,1 120 NPA ratio 28 23 19 1.5 1.2 0.9 0.9 11 12 1.0 3Q13 4Q13 1Q14 2Q14 3Q14 Sep.13 Dec.13 Mar.14 Jun.14 Sep.14 Loan-loss provi
Slide 23: USA: Income Statement
Results 3Q14 / October 29th 2014 USA Income Statement (Constant €m) Growth USA 9M14 9M14/9M13 Abs. % Net interest Income M 1,054 + 30 2.9 Gross Income N 1,565 + 42 2.7 Operating income M A R 471 - 15 -3.1 Income Before Tax R E S 397 - 31 -7.1 Net Attributable Profit R E S 302 -7 -2.3 Strong activity
Slide 24: Emerging
Results 3Q14 / October 29th 2014 Emerging 24
Slide 25: EurAsia: Turkey
Results 3Q14 / October 29th 2014 EurAsia Turkey In 3Q14 … … and in 9M14 Constant €m YoY Geopolitical risk remains NII + fees 653 +11.4% Disciplined lending growth Gross income 687 +10.7% NIM & Fees continue Operating income 399 +9.8% to grow Net attributable Sound asset quality profit 235 +1
Slide 26: EurAsia: Income Statement
Results 3Q14 / October 29th 2014 EurAsia Income Statement (Constant €m) Growth EurAsia 9M14 9M14/9M13 Abs. % Net interest Income M 655 + 45 7.4 Gross Income N 1,289 + 48 3.9 Operating income M A R 749 + 11 1.5 Income Before Tax R E S 588 + 99 20.3 Net Attributable Profit R E S 471 + 93 24.5 Sequenti
Slide 27: Mexico: Business activity and results
Results 3Q14 / October 29th 2014 Mexico Business activity (Average balance, YoY, in constant €) Customer Lending +9.1% Funds +13.9% Results (Constant €m) NII + fees Gross income Operating income +10.0% +11.6% +12.9% 1.485 1.502 1.603 1.611 1.014 1.007 1.366 1.444 892 +1.2% +0.5% -0.7% 3Q13 2Q14 3Q14
Slide 28: Mexico: Risk
Results 3Q14 / October 29th 2014 Mexico Risk NPA and coverage Loan-loss provisions and ratios cost of risk (%) (Constant €m, %) Coverage ratio 110 114 113 112 3,5 3,6 105 3,4 3,3 3,2 397 388 361 362 NPA ratio 339 4.1 3.6 3.4 3.4 3.2 Sep.13 Dec.13 Mar.14 Jun.14 Sep.14 3Q13 4Q13 1Q14 2Q14 3Q14 Loan-lo
Slide 29: Mexico: Income Statement
Results 3Q14 / October 29th 2014 Mexico Income Statement (Constant €m) Growth Mexico 9M14 9M14/9M13 Abs. % Net interest Income M 3,587 + 445 14.2 Gross Income N 4,781 + 462 10.7 Operating income M A 3,009 + 333 12.4 Income Before Tax TE 1,777 + 183 11.5 Net Attributable Profit R E 1,349 + 139 11.5 D
Slide 30: South America: Business activity and results
Results 3Q14 / October 29th 2014 South America Business activity (Average balance, YoY, in constant €) Lending +24.5% Customer +24.2% +16.4% Funds +15.9% Results (Constant €m) South America ex Venezuela NII + fees Gross income Operating income +35.4% +23.8% +22.1% +16.7% +17.7% +20.3% 761 1.347 623
Slide 31: South America: Risk
Results 3Q14 / October 29th 2014 South America Risk NPA and coverage Loan-loss provisions and ratios cost of risk (%) (Constant €m, %) Coverage ratio 137 141 136 138 137 1,6 1,6 1,5 1,4 1,3 NPA ratio 167 168 198 2.2 2.2 2.1 2.1 149 137 2.1 3Q13 4Q13 1Q14 2Q14 3Q14 Sep.13 Dec.13 Mar.14 Jun.14 Sep.14
Slide 32: South America: Income Statement
Results 3Q14 / October 29th 2014 South America Income Statement (Constant €m) Growth South America 9M14 9M14/9M13 0 Abs. % % ex Venezuela Net interest Income M A 3,264 + 882 37.0 21.7 Gross Income N 3,716 + 727 24.3 18.8 Operating income M A 2,086 + 400 23.7 21.2 Income Before Tax TE 1,476 + 215 17.
Slide 33: Third quarter results 2014
Results 3Q14 / October 29th 2014 Pendiente actualizar Third quarter results 2014 Angel Cano, BBVA´s President & Chief Operating Officer Madrid, October 29th 2014 33
Slide 34: Annex
Annex 34
Slide 35: Digital and Mobile active customers
Results 3Q14 / October 29th 2014 Digital and Mobile active customers Digital Active Customers Mobile Active Customers BBVA Group – Million BBVA Group - Million CAGR +21% 9 CAGR 10 8,6 8,5 8 7,5 +146% 7,5 9 7 8 6,5 6,2 6 7 5,5 6 5,0 5 4,5 3,7 5 4 2,4 3,5 4 3 2,5 1,3 3 2 2 1,5 1 1 0,5 0,3 0 0 Dec-11 D
Slide 36: Group: net attributable profit
Results 3Q14 / October 29th 2014 Group: net attributable profit Net attributable profit €m Business +1,351 M€ 104 -8 -105 139 1,929 -7 93 245 785 (1) 1,026 -342 9M13 €m FX effect Banking RE activity USA Eurasia Mexico South Venezuela Corporate 9M14 €m activity Spain America Center constant Spain ex
Slide 37: Capital: Core capital phased-in evolution 3Q14
Results 3Q14 / October 29th 2014 Capital: Core capital phased-in evolution 3Q14 Core capital CRD IV Phased-in Group BBVA (%) +12 bp 0.15 -0.03 11.70 11.58 Jun.14 Net earnings Other Sept.14 37
Slide 38: Capital: Core capital fully loaded evolution 3Q14
Results 3Q14 / October 29th 2014 Capital: Core capital fully loaded evolution 3Q14 Core capital CRD IV Fully-loaded Group BBVA (%) +5 bp 0.15 -0.10 10.00 10.05 Jun.14 Net earnings Other Sept.14 38
Slide 39: Risk: NPA and coverage ratio
Results 3Q14 / October 29th 2014 Risk: NPA and coverage ratio Real Estate activity in Spain Coverage ratio 62 61 63 61 61 55.3 55.5 54.2 54.8 55.3 NPA ratio Sep.13 Dec.13 Mar.14 Jun.14 Sep.14 39
Slide 40: Income statement RE
Results 3Q14 / October 29th 2014 Income statement RE (m€) Growth Real Estate Activity in Spain 9M14 9M14/9M13 Abs. % Net interest Income M -28 - 57 n.s. Gross Income N -90 - 78 n.s. Operating income M A -210 - 89 73.0 Loan-loss provisions C -218 + 279 -56.2 Provisions (net) and other gains (losses)
Slide 41: Income statement Venezuela
Results 3Q14 / October 29th 2014 Income statement Venezuela (Constant m€) Growth Venezuela 9M14 9M14/9M13 Abs. % Net interest Income M 1,249 + 522 71.9 Other income/expenses* N -623 - 298 92.0 Gross Income M 914 + 283 44.9 Operating income EN 521 + 127 32.2 Income Before Tax R 318 + 33 11.7 Net Attr
Slide 42: Customer Spreads
Results 3Q14 / October 29th 2014 Customer Spreads Customer Spreads 3Q13 4Q13 1Q14 2Q14 3Q14 9M13 9M14 Spain 1.43% 1.58% 1.77% 1.83% 1.93% 1.57% 1.84% USA 3.29% 3.21% 3.17% 3.09% 3.03% 3.36% 3.10% Mexico 11.72% 12.15% 12.31% 12.18% 12.06% 11.92% 12.18% Argentina 13.57% 14.25% 14.12% 14.75% 15.50% 13.
Slide 43: Third quarter results 2014
Results 3Q14 / October 29th 2014 Pendiente actualizar Third quarter results 2014 Angel Cano, BBVA´s President & Chief Operating Officer Madrid, October 29th 2014 43