Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — FY2014 Earnings Presentation
48 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Feb 4, 2015
Slide 1: 2014 Results
Angel Cano, BBVA^s President & Chief Operating Officer Madrid, February 4th 2015 Pen die nte act uali zar 2014 Results Pendiente actualizar
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: 2014 Regulation Highlights
2014 Regulation Highlights Comprehensive Assessment AQR/ST Banking Union Supervisory Resolution Deposit Guarantee Fund 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) Solid capital po
Slide 4: 2014 Portfolio Management Highlights
Acquisition of a cleaned-up institution. Limited capital impacts and strong generation of synergies. Low execution risks in the integration process. 2014 Portfolio Management Highlights Gaining majority of the board. Increasing our stake up to 39,9%. Boosting BBVA growth potential. Adding value afte
Slide 5: 2014 Transformation Highlights
2014 Transformation Highlights Organizational & Culture change 1 2 3 4 5 Products & processes Development of infrastructure Distribution model New digital businesses Customer experience Optimizing servicing Digital channels Lean structure Cost control Costs reduction in Spain and Corporate Center: €
Slide 6: 2014 year of growth
(CHART) (CHART) 2014 year of growth +3.4% +15.6% constant €m (CHART) Good performance in all the geographies Net interest income growth Outstanding cost performance Strong Solvency 12M14 vs 12M13 +42.8% Vs. Costs (%), €m constant Gross income (%), €m constant Positive jaws Cost of risk & RE assets p
Slide 7: Earnings: solid net interest income growth
Earnings: solid net interest income growth +22.6% Excluding FX effect +13.0% Net interest income 4Q14 vs 4Q13 12M14 vs 12M13 +3.4% +15.6%
Slide 8: Upward trend in recurring income
Upward trend in recurring income ... +14.0% +18.9% constant €m Excluding FX effect +8.5% Lower NTI contribution +8.3% Gross income 4Q14 vs 4Q13 12M14 vs 12M13 -0.2%
Slide 9: Maintaining the positive jaws trend through the year
(CHART) (CHART) Excluding FX effect ... maintaining the positive jaws trend through the year Gross income vs costs YoY (%) 4Q14 vs 4Q13 +1.9% Costs 12M14 vs 12M13 -2.2% (CHART) Costs ex VZ vs inflation YoY (%) Investment for growth Breakdown (%) Excellent cost management achieving annual savings of
Slide 10: Resulting in a resilient operating income
Resulting in a resilient operating income +24.9% +15.8% Operating income 4Q14 vs 4Q13 12M14 vs 12M13 +2.1% +13.2% Excluding FX effect As a result of the excellent income performance and cost management
Slide 11: Provisions and cost of risk reduction
(CHART) Provisions and cost of risk reduction Loan-loss + real estate provisions €m Cost of risk YTD Group, (%) P&L main growth driver
Slide 12: To sum up, growth in all lines
To sum up, growth in all lines €m Note 2: The P&L is presented this way to show the performance of recurring business. The reconciliation with the income statement is shown on pages 47-48 of the financial information filed today with the CNMV. Positive performance of recurring revenue Outstanding co
Slide 13: Risk: indicators continue to improve
Risk: indicators continue to improve Note: NPAs: Includes non-performing assets originating from lending to customers and contingent liabilities.. Risk figures exclude real estate activities. NPA ratio for real estate activity in Spain: 55,4%, 63% coverage and NPAs €7.7bn 26.2 Incl. Real Estate 23.6
Slide 14: Capital and liquidity
Capital and liquidity Strong & resilient regulatory ratios 10.4% (Fully-loaded) Core Capital CRD IV Leverage ratio 5.9% (Fully-loaded) 12.0% (Phased-in) ABO Solid liquidity position >100% LCR Active capital management for growth Additional Tier 1 issue Tier II issue
Slide 15: Business Areas
" BBVA at tana | Business: Areas
Slide 16: Developed
, BBVA Developed
Slide 17: Banking activity in Spain
(CHART) Business activity (YoY chg in average balances) (CHART) Results (€m) (CHART) NII + fees Gross income Operating income Banking activity in Spain Lending -3.0% +2.8% Customer funds +3.1% +16.3% +32.7% +7.9% +27.5% +64.2%
Slide 18: Banking activity in Spain: Risk
NPA ratio Entries (€ m) NPAs (€ bn) Risk Cost of risk (%) Banking activity in Spain (CHART) Gross entries Net entries Risk indicators (%) Coverage ratio -8.8% NPAs: Includes non-performing assets originating from lending to customers and contingent liabilities.
Slide 19: Income Statement: Banking activity in Spain
Income Statement (€m) Banking activity in Spain Customer spread improvement due to the continued reduction in the cost of deposits Lower cost of risk 6% cost reduction due to transformation and efficiency plans Note: following the adoption of IFRIC 21, in 2014 there was a change in accounting policy
Slide 20: Real estate activity in Spain
(CHART) Real estate activity in Spain Net attributable profit (€m) Net exposure* (€ bn) -14% (CHART) -30% Positive market trends Prices hit bottom Housing sales continue growing The housing stock decreases Sales (€m ) (CHART) +18% *Net exposure according to Bank of Spain's "RE transparency scope" (C
Slide 21: USA: Business activity and results
Lending* +12.2% +12.2% Customer Funds * Business activity (Average balance, YoY, in constant €) (CHART) (CHART) (CHART) USA +2.5% +2.7% +9.2% * USA ex NY Business Activity Results (Constant €m) NII + fees Gross income Operating income +4.3% +7.9% +27.6%
Slide 22: USA: Risk
Risk NPA and coverage ratios (%) Loan-loss provisions and cost of risk (Constant €m, %) (CHART) NPA ratio Coverage ratio USA Note: NPA includes non-performing assets originating from lending to customers and contingent liabilities.
Slide 23: Income Statement: USA
Income Statement (Constant €m) USA Good macroeconomic outlook Strong activity focusing on new credit operations Progress in the digital transformation
Slide 24: Emerging
, BBVA Emerging
Slide 25: EurAsia: Turkey results
EurAsia Turkey 944 Gross income +16.6% 550 Operating income +20.9% 310 Net attributable profit +35.3% 925 NII + fees +18.6% Constant €m YoY 12M14 Results Increased exposure: Additional 14.89% reaching 39.9% total stake Garanti Highlights Impairment losses on financial assets were down Strong capital
Slide 26: Income Statement: EurAsia
Income Statement (Constant €m) Note: in accordance with IFRS Garanti is accounted for using the equity method for the purpose of uniform presentation based on the proportional consolidation method. EurAsia Active portfolio management Lower loan loss provisions Lower deleveraging in wholesale banking
Slide 27: Mexico: Business activity and results
Mexico (CHART) (CHART) (CHART) +5.7% +5.5% +7.3% Lending +11.7% +8.4% Customer Funds Business activity (Average balance, YoY, in constant €) Results (Constant €m) NII + fees Gross income Operating income +10.9% +6.7% +6.6%
Slide 28: Mexico: Risk
Risk NPA ratio Coverage ratio (CHART) NPA and coverage ratios (%) Loan-loss provisions and cost of risk (Constant €m, %) Mexico NPA: Includes non-performing assets originating from lending to customers and contingent liabilities.
Slide 29: Income Statement: Mexico
Income Statement (Constant €m) Mexico Business activity dynamism translated to top and bottom lines Jaws widen We continue to be the leader and bank of reference in Mexico
Slide 30: South America: Business activity and results
+18.3% South America (CHART) (CHART) (CHART) +18.7% / +7.5% Lending Customer Funds Business activity (Average balance, YoY, in constant €) Results (Constant €m) NII + fees Gross income Operating income South America ex Venezuela +39.9% +20.7% +7.0% +12.7% +9.1% / +3.7% +10.4% +3.4% / +3.8% +22.5% +1
Slide 31: South America: Risk
Risk NPA ratio (CHART) NPA and coverage ratios (%) Loan-loss provisions and cost of risk (Constant €m, %) Coverage ratio South America NPA: Includes non-performing assets originating from lending to customers and contingent liabilities.
Slide 32: Income Statement: South America
Income Statement (Constant €m) South America Activity dynamism Dealing uncertainties in Venezuela Executing the strategic plan with focus on the Andean Region
Slide 33: 2014 Results
Angel Cano, BBVA^s President & Chief Operating Officer Madrid, February 4th 2015 Pen die nte act uali zar 2014 Results Pendiente actualizar
Slide 34: Annex
, BBVA Annex
Slide 35: Comparative information
Comparative information Following the adoption of IFRIC 21 on levies by the IFRS interpretations Committee, in 2014 there was a change in accounting policy with respect to contributions made to the Deposit Guarantee Fund. According to the International Accounting Standards said change has been appli
Slide 36: 2013 P&L: figures restated following change in accounting policy
2013 P&L: figures restated following the change made in accounting policy relating to the DGF €m
Slide 37: 2013 P&L: figures restated following change in accounting policy
2013 P&L: figures restated following the change made in accounting policy relating to the DGF €m
Slide 38: Adjusted income statement Group
Adjusted income statement Group (m€) Note: The P&L is presented this way to show the performance of recurring business. The reconciliation with the income statement is shown on page 47 of the financial information filed today with the CNMV.
Slide 39: Adjusted income statement Spain
Adjusted income statement Spain (m€) Note: The P&L is presented this way to show the performance of recurring business. The reconciliation with the income statement is shown on page 47 of the financial information filed today with the CNMV.
Slide 40: Digital and Mobile Active Customers
Digital Active Customers BBVA Group - Million Mobile Active Customers BBVA Group - Million (CHART) (CHART) CAGR +22% CAGR +140% Figures excluding Garanti Bank Digital and Mobile active customers
Slide 41: Group: net attributable profit
Group: net attributable profit Net attributable profit €m Business € 1,685 m 1) Excludes € 823m (including -€ 12 M of FX) related to results from corporate operations (ie. sale of pension business in Latin America). (1)
Slide 42: Risk: Group
Risk: Group NPA ratio* (%) Coverage ratio* (%) Cost of risk YTD Group (%) * Exluding real estate activities. NPA ratio for real estate activity in Spain: 55,4%, 63% coverage and NPAs €7.7bn. // INPAs: ncludes non-performing assets originating from lending to customers and contingent liabilities.
Slide 43: Capital: Core capital fully loaded evolution 2014
Capital: Core capital fully loaded evolution 2014 Core capital CRD IV Fully-loaded Group BBVA (%) +70 bp Other: -7 bp generacion de plusvalias compensadas con efectos negativos como remuneracion del coco, ajuste negativo en la valoracion del fondo de pensiones, y autocartera).
Slide 44: Risk: Banking activity in Spain
Risk: Banking activity in Spain (€m) Net entries Gross entries
Slide 45: Risk: Real Estate activity in Spain
NPA ratio (%) Coverage ratio (%) Risk: Real Estate activity in Spain NPA: Includes non-performing assets originating from lending to customers and contingent liabilities.
Slide 46: Real Estate Activity in Spain income statement
BBVA 2014 ests February an 2015 Income statement RE ine; Real Estate Activity in Spain Net interest Income 38 36 ns. Gross Income 94 ns. Operating income -104 55,2 Loandoss provisions +331 $2.7 Provisions (net) and other gains (losses) +373 37.8 Other +13 77,9 Income Before Tax Net Attributable Prof
Slide 47: Income statement Venezuela
Income statement Venezuela (m€) * includes items such as the adjustment for hyperinflation in Venezuela
Slide 48: Customer Spreads
Customer Spreads Note: customer spreads: difference between lending yield and cost of deposits from customers * USA ex NY Business Activity 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 unde
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