Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA

Banco Bilbao Vizcaya Argentaria — Q2 2014 Earnings Presentation

40 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Jul 30, 2014

  1. Slide 1: Second quarter results 2014

    Second quarter results 2014Angel Cano, BBVA´s President & Chief Operating OfficerMadrid, July 30th 2014

  2. Slide 2: Disclaimer

    Results 2Q14 / July30th 2014DisclaimerThis 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

  3. Slide 3: Strong fundamentals

    Results 2Q14 / July30th 2014Strong fundamentalsMaintaining upward trend in earningsAdequate funding structureImprovement in risk indicatorsStrong regulatory ratiosEarnings RiskSolvency

  4. Slide 4: Strong fundamentals: earnings, risk, solvency

    Results 2Q14 / July30th 2014Strong fundamentalsNet entries to NPAsNet income excluding -75.5% corporate operationsRisk premium+11.7% -17 bp(1H14 vs 1H13) Earnings Risk(YoY)Corecapital > 100% SolvencyCRD IV 11.6%compliance with LCR (Phased-in) (+4 bp vs 1Q14)4Note: risk figures exclude real estate ac

  5. Slide 5: Earnings: positive trend in recurring revenue

    Earnings: positive trend in recurring revenue2Q14 vs 2Q13 2Q14 vs 1Q14-2.8% Gross income +5.3%Excluding FX effectConstant €m+7.0% 2Q14 Highlights5,2855,083? Net trading income 4,939 4,938 +11.6% 4,756 cons VZ2Q13 3Q13 4Q13 1Q14 2Q145Gross income Net interest income + fee income

  6. Slide 6: Gross income rising faster than costs

    … rising faster than costs …Costs -5.4%2Q14 vs 2Q13Excluding FX effectCosts Gross income vs costsYoY change, constant €m 2Q14 vs 2Q13, constant €m (%) (%)8.15.8 5.7 c 7.04.1 4.9 3.1 3.12Q13 3Q13 4Q13 1Q14 2Q14 Gross Costs Inflation income

  7. Slide 7: ... and boosting operating income

    … and boosting operating income 2Q14 vs 2Q13 2Q14 vs 1Q140.0% Operating income +8.9%Excluding FX effectConstant €m+11.2%2,633 2,460 2,367 2,164 2,2352Q13 3Q13 4Q13 1Q14 2Q14Maintaining leadership position in terms of profitability7

  8. Slide 8: Lower loan-loss and real estate provisions

    Lower loan -loss and real estate provisionsLoan-loss + real estate provisions Cost of risk YTD€m Group excluding real estate activities(%)Loan-loss provisions2,357 Real Estate provisions3731,6622271,244 1,221 1.4 1.6155 152 1.51,984 1.2 1.21,4351,089 1,0692012 quartely 2013 quartely 1Q14 2Q14 Jun.13

  9. Slide 9: In summary, maintaining growth trend

    In summary, maintaining growth trend€m 1H14 HighlightsGrowth Growth 1BBVA Group 1H14 1H14/1H13 2Q14/1Q13 • Positive trend in recurrent revenueAbs. % % constant %Net interest Income 7,038—264 -3.6 10.3 7.62• FX impactGross Income N 10,368—521 -4.8 6.0 5.3Operating income 5,093—224 -4.2 8.7 8.9 c3• Co

  10. Slide 10: Risk: asset quality continues to improve

    Risk: asset quality continues to improve4.5% Coverage 63% NPA ratio(-9 bp vs 1Q14) ratio (+3 p.pvs 1Q14)Entries NPAs€m €bnRefinance loans-46.7% 4,997 vs 2Q1317.2 17.0 16.8 16.73,612 14.5 2,785 2.5 2,053 1,924 3,495 -75.5% vs 2Q132,0071,036 787 4922Q13 3Q13 4Q13 1Q14 2Q14 2T13 3T13 4T13 1T14 2T14Incl

  11. Slide 11: Capital: active capital management

    Capital: active capital managementStrong and resilient regulatory ratiosCore Capital CRD IV Ratio Leverage(Phased-in) (Fully-loaded) (Fully-loaded)11.6% 10.0% 5.8%(+4 bp vs 1Q14) (+11 bp vs 1Q14)Issuance activityStrengthen and optimize 1.5 bn€ Tier II issue the Group’s capital base under CRD IV.11

  12. Slide 12: Business Areas

    Business Areas

  13. Slide 13: BBVA Developed

    : BBVA Developed TAN Ci Meee VS

  14. Slide 14: Banking activity in Spain

    Banking activity in SpainBusiness activity (YoY chg in average balances)Customer Lending -6.1% +12.0% fundsResults (€m)NII + fees Gross income Operating income-1.7% +2.3% +10.7%1,7561,343 1,627 1,050 1,320 1,591915 1,281+3.1% -7.3% 827 -12.9%2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q1414

  15. Slide 15: Banking activity in Spain: Risk

    Results 2Q14 / July30th 2014Banking activity in SpainRiskRisk indicators NPAs(%) Coverage ratio (€ bn) Refinance loans45 4441 41 4112.5 12.5 12.5 12.3NPA ratio 9.8 2.56.2 6.4 6.4 6.3 4.7 Jun.13 Sep.13 Dec.13 Mar.14 Jun.14 2Q13 3Q13 4Q13 1Q14 2Q14Risk premium Entries(%) (€ m) 3,560 Gross entries Net

  16. Slide 16: Banking activity in Spain: Income Statement

    Results 2Q14 / July30th 2014Banking activity in SpainIncome Statement (€m)Growth Banking activity in Spain 1H14 1H14/1H13Abs. % Net interest Income 1,867—190 -9.2 Gross Income N 3,383 + 128 3.9 Operating income 1,965 + 241 14.0 Income Before Tax 867 + 421 94.5 Net Attributable Profit 608—149 -19.7 G

  17. Slide 17: Real estate activity in Spain

    Results 2Q14 / July30th 2014Real estate activity in SpainNet exposure Sales Volume(€ bn) (Units)+15.6% -11.5% 11,40215.6 9,86714.614.213.8 1H13 1H14Net attributable profit(€m)-24.5%—286-23 16dec. 12 dec. 13 mar. 14 jun.142Q13 1Q14 2Q14*Net exposure according to Bank of Spain’s “RE transparency scope

  18. Slide 18: USA: Business activity

    Results 2Q14 / July30th 2014USABusiness activity (Average balance, YoY, in constant €)Customer Lending* +13.1% +8.1% Funds *Results (Constant €m)NII + fees Gross income Operating income+5.3% +0.2% -8.7%483 518 520 173 478 517 166 458 158+1.0% +0.5% -4.7%2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q1418

  19. Slide 19: USA: Risk

    Results 2Q14 / July30th 2014USARiskNPA and coverage Loan -loss provisions and ratios risk premium(%) (Constant €m, %) Coverage ratio 160 1680.2 0.3 0.2 0.2134 0.1 118 120NPA ratio 2819 221.5 181.5 1.2 1.0 11 0.9 Jun.13 Sep.13 Dec.13 Mar.14 Jun.14 2Q13 3Q13 4Q13 1Q14 2Q14Loan-loss provisions Risk pre

  20. Slide 20: USA: Income Statement

    Results 2Q14 / July30th 2014USAIncome Statement (Constant €m)GrowthUSA 1H14 1H14/1H13Abs. %Net interest Income 693 + 23 3.4Gross Income N 1,037 + 34 3.4Operating income 324 + 1 0.2Income Before Tax 266—23 -7.9 Net Attributable Profit 196 + 1 0.6Strong business activity and important commercial effor

  21. Slide 21: Emerging

    Results 2Q14 / July30th 2014Emerging

  22. Slide 22: EurAsia: Turkey improved outlook

    Results 2Q14 / July30th 2014EurAsiaTurkeyImproved outlook Operating income• Better performance in lending activity +11.6%• Strong revenue and fee(QoQ)performance• Lower loan-loss provisions Net attrib. profit• Good risk indicators +16.8%• Positive trend of the exchange (QoQ) rate in the quarter22Not

  23. Slide 23: EurAsia: Income Statement

    Results 2Q14 / July30th 2014EurAsiaIncome Statement (Constant €m)Growth EurAsia 1H14 1H14/1H13Abs. % Net interest Income 408—2 -0.4 Gross Income N 903—16 -1.7 Operating income 552—45 -7.6 Income Before Tax 447 + 56 14.4 Net Attributable Profit 362 + 48 15.2CNCB DividendSolid contribution to the Grou

  24. Slide 24: Mexico: Business activity

    Results 2Q14 / July30th 2014MexicoBusiness activity (Average balance, YoY, in constant €)Customer Lending +10.2% +12.1% Funds Results (Constant €m)NII + fees Gross income Operating income+11.8% +10.5% +12.2%1,5851,446 1,468 1,549 1,003 977 1,314 1,435 894+1.5% +2.3% +2.7%2Q13 1Q14 2Q14 2Q13 1Q14 2Q1

  25. Slide 25: Mexico: Risk

    Results 2Q14 / July30th 2014MexicoRiskNPA and coverage Loan -loss provisions and ratios risk premium(%) (Constant €m, %) Coverage ratio109 110 114 113 3.7105 3.6 3.6 3.5 3.3392 357 358NPA ratio 343 3354.0 4.13.6 3.4 3.4Jun.13 Sep.13 Dec.13 Mar.14 Jun.14 2Q13 3Q13 4Q13 1Q14 2Q14Loan-loss provisions R

  26. Slide 26: Mexico: Income Statement

    Results 2Q14 / July30th 2014MexicoIncome Statement (Constant €m)Growth Mexico 1H14 1H14/1H13Abs. % Net interest Income 2,354 + 311 15.2 Gross Income N 3,134 + 292 10.3 Operating income 1,980 + 216 12.2 Income Before Tax 1,188 + 122 11.5 Net Attributable Profit 900 + 100 12.5Buoyant business despite

  27. Slide 27: South America: Business activity

    Results 2Q14 / July30th 2014South AmericaBusiness activity (Average balance, YoY, in constant €)Customer Lending +24.6% +23.9% Funds Results (Constant €m)NII + fees Gross income Operating income+36.8% +24.3% +22.3%1,327 1,174 1,188 677 643 970 1,124 956 526-5.0% +18.0% +1.1% (+10.8% Ex Vzla)2Q13 1Q1

  28. Slide 28: South America: Risk

    Results 2Q14 / July30th 2014South AmericaRiskNPA and coverage Loan -loss provisions and ratios risk premium(%) (Constant €m, %) Coverage ratio136 137 141 136 1381.5 1.6 1.5 1.3 1.3NPA ratio2.2 2.2 2.2 148 167 167 2.1 2.1 136 119Jun.13 Sep.13 Dec.13 Mar.14 Jun.14 2Q13 3Q13 4Q13 1Q14 2Q14Loan-loss pro

  29. Slide 29: South America: Income Statement

    Results 2Q14 / July30th 2014South AmericaIncome Statement (Constant €m)Growth South America 1H14 1H14/1H13Abs. % % ex VenezuelaNet interest Income 2,061 + 566 37.9 24.5 Gross Income N 2,362 + 469 24.8 19.6 Operating income 1,320 + 262 24.8 21.8 Income Before Tax 959 + 169 21.3 21.0 Net Attributable

  30. Slide 30: Q&A

    Q&A

  31. Slide 31: Annex

    : BBVA Annex

  32. Slide 32: Group: net attributable profit

    Results 2Q14 / July30th 2014Group: net attributable profitNet attributable profit€mBusiness +930M €2,882 -268-164-71 -1,893144 -88100 1,328182 1 484561H13 €m FX effect Mortgage Hyperinfl. Op.corp Banking RE USA Eurasia Mexico South Corporate 1H14 €m floors activity activity America Center constantSp

  33. Slide 33: Capital: 1Q14 core capital restatement

    Capital: 1Q14 Core capital phased -in restatementCore capital CRD IV Phased -inGroup BBVA(%) 1.49 -0.71-0.0211.5410.781Q.2014 Goodwill Phased -in Tier I CAP Others 1Q.2014 Restate33

  34. Slide 34: Capital: core capital phased-in evolution 2Q14

    Capital: Core capital phased -in evolution 2Q14Core capital CRD IV Phased -inGroup BBVA(%) +4 bp+0.06 -0.10+0.0811.54 11.58Mar.14 Net earnings FX effect Other Jun.1434

  35. Slide 35: Capital: core capital fully loaded evolution 2Q14

    Capital: Core capital fully loaded evolution 2Q14Core capital CRD IV Fully-loadedGroup BBVA(%) +11 bp+0.05 -0.02+0.089.89 10.00Mar.14 Net earnings FX effect Other Jun.1435

  36. Slide 36: Risk: NPA and coverage ratio, Real Estate Spain

    Risk: NPA and coverage ratioReal Estate activity in Spain75 Coverage ratio62 61 63 6155.3 55.5 54.2 54.8 43.7 NPA ratioJun.13 Sep.13 Dec.13 Mar.14 Jun.1436

  37. Slide 37: Income statement Real Estate

    Results 2Q14 / July30th 2014Income statement RE (m€)GrowthReal Estate Activity in Spain 1H14 1H14/1H13Abs. %Net interest Income -18—61 n.s.Gross Income N -86—88 n.s.Operating income -164—94 n.s.Loan-loss provisions C -126 + 138 -52.4 Provisions (net) and other gains (losses) -324 + 163 -33.4 Income

  38. Slide 38: Income statement Venezuela

    Income statement Venezuela (Constant m€)Growth Venezuela 1H14 1H14/1H13Abs. % Net interest Income 740 + 307 70.7 Other income/expenses* N -378—178 89.1 Gross Income 548 + 172 45.9 Operating income 315 + 82 35.5 Income Before Tax 207 + 38 22.6 Net Attributable Profit B 74 + 1 2.038* includes items su

  39. Slide 39: Customer Spreads

    Customer SpreadsCustomer Spreads 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1H13 1H14Spain 1.70% 1.57% 1.43% 1.58% 1.77% 1.83% 1.64% 1.80%USA 3.43% 3.35% 3.29% 3.21% 3.17% 3.09% 3.39% 3.13%Mexico 12.11% 11.92% 11.72% 12.15% 12.31% 12.18% 12.01% 12.24%Argentina 13.34% 13.84% 13.57% 14.25% 14.12% 14.75% 13.59% 14.

  40. Slide 40: Second quarter results 2014

    Second quarter results 2014Angel Cano, BBVA´s President & Chief Operating OfficerMadrid, July 30th 2014 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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