Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q1 2013 Earnings Presentation
39 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Apr 26, 2013
Slide 1: First quarter results 2013
Ángel Cano, BBVA’s President & Chief Operating Officer Madrid, April 26th 2013 First quarter results 2013
Slide 2: Quarter highlights
Quarter highlights Resilient revenue & good earnings Reduction of liquidity gap In line with expectations Stronger capital ratios Strong fundamentals
Slide 3: Quarter highlights
Quarter highlights Reduction of liquidity gap In line with expectations Stronger capital ratios Gross income €5,471m (+3.9% YoY) Strong fundamentals
Slide 4: Quarter highlights
Quarter highlights Reduction of liquidity gap In line with expectations Stronger capital ratios Gross income €5,471m (+3.9% YoY) Strong fundamentals
Slide 5: Quarter highlights
Quarter highlights Reduction of liquidity gap Stronger capital ratios Gross income €5,471m (+3.9% YoY) NPA ratio 5.3% Coverage ratio 71% Strong fundamentals
Slide 6: Quarter highlights
Quarter highlights Reduction of liquidity gap Stronger capital ratios Gross income €5,471m (+3.9% YoY) NPA ratio 5.3% Strong fundamentals Coverage ratio 71%
Slide 7: Quarter highlights
Quarter highlights Reduction of liquidity gap Gross income €5,471m (+3.9% YoY) NPA ratio 5.3% Core Capital - Basel 2.5 +42bp (this quarter) Strong fundamentals Coverage ratio 71%
Slide 8: Quarter highlights
Quarter highlights Strong fundamentals NPA ratio 5.3% Gross income €5,471m (+3.9% YoY) Core Capital - Basel 2.5 +42bp (this quarter) Reduction of liquidity gap Coverage ratio 71%
Slide 9: Quarter highlights
Quarter highlights Strong fundamentals NPA ratio 5.3% Reduction of liquidity gap €9bn (€ balance sheet, this quarter) Gross income €5,471m (+3.9% YoY) Core Capital - Basel 2.5 +42bp (this quarter) Coverage ratio 71%
Slide 10: Significant aspects
1 2 3 4 5 Significant aspects Revenue includes good NTI, which supports net interest income in developed markets Advantage taken of opportunities: sale of Afore Bancomer and the life insurance portfolios Adjustment of equity-accounted income in Eurasia One-off provisioning Inter-quarter effect of Ve
Slide 11: Net interest income in emerging markets +11.9%
Net interest income in emerging markets +11.9% +0.8% Net interest income Quarter by quarter €m Earnings: 3,173 3,594 3,623 1Q11 1Q12 1Q13 resilient revenue despite pressure on spreads …
Slide 12: Supported by a good quarter in NTI
Supported by a good quarter in NTI 5,130 5,265 5,471 4,158 4,657 4,675 1Q11 1Q12 1Q13 Gross income NII + fee income … with gross income at high levels … +3.9 % Gross income vs NII + fee income Quarter by quarter €m +0.4%
Slide 13: With emerging markets as the engines of growth
With emerging markets as the engines of growth USA Developed Emerging 30% 3% 9% 28% 24% 5% 1% … supported by diversification Note: excludes Holding. Year-on-year variation in constant € Spain Rest of Europe Mexico South America Turkey Asia USA 42% YoY chg. Weight -4.4% 58% YoY chg. Weight +9.1% Brea
Slide 14: Selective cost management to support growth
Under control Supporting growth Costs YoY change Preserving growth potential Emerging Developed Under control Note: excludes Holding Supporting growth • Branches: + 1.9% YoY • Headcount: + 5.6% YoY • ATMs: + 4.7% YoY +9.1% +10.3% Contributions to costs (p.p.) Selective cost management to support gro
Slide 15: Strength and recurrence despite environment
Strength and recurrence despite environment … which helps us to maintain solid operating income Operating income Quarter by quarter €m Operating income - developed Weight by region Operating income - emerging Weight by region 2,824 2,738 2,712 1Q11 1Q12 1Q13 41% 36% 1Q12 1Q13 Europe (ex Turkey) USA
Slide 16: Increase in provisions in line with expectations
Focus on Spanish companies Increase in provisions in line with expectations … Loan-loss provisions Quarter by quarter €m +26.3% Accumulated cost of risk 1.2 1.5 1.2 1,022 1,087 1,373 1Q11 1Q12 1Q13
Slide 17: NPA and coverage ratios
3.0 Impairment of Spanish companies 4.0 4.0 4.8 5.1 5.3 Mar.12 Jun.12 Sep. 12 Dec. 12 Mar.13 NPA ratio … with contained impairment of risk indicators … NPAs – net balance €bn NPA and coverage ratios % 16.1 16.5 20.1 20.6 21.8 Mar.12 Jun.12 Sep.12 Dec.12 Mar.13 Coverage ratio 1.5% 1.2% 1.8% 1.9% 2.2%
Slide 18: Leading to resilient earnings
Affected by one-off operations R M BBVA Group Accum. 1Q13 Abs. 1Q13/1Q12 Growth % … leading to resilient earnings €m 72.6 Net Attributable Profit 1,734 + 729 Income Before Tax Gross Income 5,471 + 205 + 213 Net Interest Income 3,623 + 28 0.8 1,513 Operating Income 2,712 - 25 3.9 16.4 -0.9
Slide 19: Capital: stronger capital ratios
BIS III fully loaded Dec.13e 9% 10.8 11.2 0.25 0.17 Dec.12 Sale of Mexican pensions Other generation of capital Mar.13 Core capital ratio (Basel 2.5) % Capital: stronger capital ratios
Slide 20: Liquidity: improvement in funding structure
Liquidity gap narrows Active in issues Meeting the LTRO repayment plan Liquidity: improvement in funding structure +€9bn euro balance sheet this quarter €4.5bn euro balance sheet this quarter
Slide 21: Summary: fundamentals remain solid
Gross income Net attributable profit Capital Liquidity Risk Diversified revenues Good results Solid structure €1.7bn 5.3% 71% Issues €4.5bn NPA ratio Coverage ratio 11.2% Basel 2.5 +3.9% YoY 58% Emerging Liquidity gap €9bn Meeting LTRO plan Summary: fundamentals remain solid … 9% BIS III fully loade
Slide 22: Reinforced during the year by non-core divestments
Afore Bancomer AFP Provida AFP Horizonte Colombia €0.8bn €0.5bn 25bp 12bp Capital gains Capital generated ... which will be reinforced during the year by non-core divestments Note: announced deals based on $1.31/€. The amounts can change depending on the exchange rate. €0.3bn 8bp €0.2bn AFP Horizont
Slide 23: Banking activity in Spain: spreads under pressure
Lending Customer funds Increasing market share due to greater discrimination (+184bp) Banking activity in Spain: spreads under pressure in a deleveraging environment +3.6% +2.7% Banking activity in Spain YoY change in average balances Net interest income €m Operating income €m -2.3% Gross income €m
Slide 24: Spain: impairment as expected
453 469 472 458 618 180 1,177 933 1,482 151 -5.00 -4.00 -3.00 -2.00 -1.00 0.00 1.00 Focus on companies -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 1,646 1,405 1,940 0.95 0.99 0.94 0.91 1.28 1Q12 2Q12 3Q12 4Q12 1Q13 Real-estate loan-loss Banking activity loan-loss Banking activity cost of ris
Slide 25: Banking activity in Spain: income statement
Deleveraging continues Market share gains Unnim incorporated Banking activity Accum. Growth 1Q13/1Q12 1Q13 Abs. % MA RE RE €m Banking activity in Spain: income statement 1Q13 highlights Net Interest Income 1,071 - 103 -8.8 Gross Income 1,669 - 39 -2.3 Operating Income - 113 -11.1 Income Before Tax +
Slide 26: Real-estate: exposure
Reduced developer-related exposure Foreclosed retail assets are in line with non-performing mortgages 13.3 9.7 9.5 3.4 4.0 3.9 -14.5% Real-estate: exposure 18.0 15.6 15.4 Note: transparency on like-for-like basis: the figures include Unnim but exclude the investment in Metrovacesa * Other foreclosed
Slide 27: Real-estate: income statement
Sales accelerate Marked to market Real-estate Accum. Growth 1Q13/1Q12 1Q13 Abs. % MA RE RE €m Real-estate: income statement 1Q13 highlights Net Interest Income + 14 n.s. n.s. Gross Income -4 - 14 n.s. Operating Income -42 - 25 Income Before Tax -465 - 27 6.3 Net Attributable Profit -346 - 46 15.2
Slide 28: EurAsia: a region of growth and contribution
Turkey Asia 208 292 166 66 161 152 -4.5% Gross income €m Note: in accordance with IFRS, the investment in Garanti is reported as equity-accounted income but for presentation continuity it is treated as proportional consolidation. Growth engine Provisioning anticipated 1Q12 1Q13 Rest of Europe Asia T
Slide 29: EurAsia: income statement
CNCB anticipating provisions Buoyant retail business Deleveraging of wholesale business EurAsia 1Q13/1Q12 1Q13 Abs. % Growth Accum. MA RE RE EurAsia: income statement €m 1Q13 highlights Net Interest Income + 58 31.1 - 24 -4.5 - 27 -7.4 Gross Income Operating Income Income Before Tax Net Attributable
Slide 30: Mexico: growing at a fine pace
Lending Customer funds +7.1% +6.2% Business activity YoY change in average balances in constant euros Net interest income Constant €m Operating income Constant €m +5.2% +6.1% +6.1% Gross income Constant €m 1,034 1,088 1Q12 1Q13 1,428 1,516 1Q12 1Q13 1Q12 1Q13 Mexico: growing at a fine pace
Slide 31: Mexico: risk indicators remain stable
3.8 4.0 4.1 3.8 3.7 Mar.12 Jun.12 Sep. 12 Dec.12 Mar.13 NPA ratio Coverage ratio NPA and coverage ratios % Loan-loss provisions and cost of risk Quarter by quarter (Constant €m, %) 3.5 3.3 3.4 3.6 3.6 1Q12 2Q12 3Q12 4Q12 1Q13 Loan-loss provisions Cost of risk Mexico: risk indicators remain stable
Slide 32: Mexico: income statement
Buoyant business Improvement in funding mix Self-financing investments RD Mexico Growth 1Q13/1Q12 1Q13 Abs. % Accum. MA Constant €m 1Q13 highlights Note: the pension business is reported as discontinued operations Mexico: income statement -0.7 4.2 Discontinued operations - 17 -74.6 Net Interest Inco
Slide 33: South America: business continues to grow rapidly
Lending Customer funds High growth rates +15.3% +23.9% Net interest income Constant €m Operating income Constant €m +19.7% +17.1% +14.6% Gross income Constant €m 1,042 1Q12 1Q13 1,144 1,340 1Q12 1Q13 1Q12 1Q13 South America: business continues to grow rapidly Business activity YoY change in average
Slide 34: South America: good risk indicators
2.3 2.3 2.2 2.1 2.2 Mar.12 Jun.12 Sep. 12 Dec.12 Mar.13 NPA ratio Coverage ratio NPA and coverage ratios % 1.0 1.3 1.5 1.6 1.3 1Q12 2Q12 3Q12 4Q12 1Q13 Loan-loss provisions Cost of risk Loan-loss provisions and cost of risk Quarter by quarter (Constant €m, %) South America: good risk indicators
Slide 35: South America: income statement
Buoyant demand and growth Costs in line with growth Solid earnings South America Growth 1Q13/1Q12 1Q13 Abs. % Accum. MA RD Constant €m 1Q13 highlights Note: the pension business is reported under discontinued operations South America: income statement + 34 6.1 Operating Income Net Interest Income 1,
Slide 36: United States: business growing despite competitive environment
Lending Customer funds Profit and loss account is sensitive to low interest rates 1Q12 1Q13 United States: business growing despite highly competitive environment +8.4% +10.6% -19.9% -9.9% -7.9% Net interest income Constant €m Operating income Constant €m Gross income Constant €m 1Q12 1Q13 1Q12 1Q13
Slide 37: United States: improvement in risk indicators
3.2 2.8 2.4 2.4 1.8 Mar.12 Jun.12 Sep. 12 Dec.12 Mar.13 NPA ratio Coverage ratio NPA and coverage ratios % 0.3 0.1 0.4 0.0 0.2 1Q12 2Q12 3Q12 4Q12 1Q13 Loan-loss provisions Cost of risk Loan-loss provisions and cost of risk Quarter by quarter (Constant €m, %) United States: improvement in risk indic
Slide 38: United States: income statement
Funding costs Companies spreads decline USA 1Q13 Abs. Accum. Growth MA RE RE 1Q13/1Q12 % Constant €m 1Q13 highlights United States: income statement Net Interest Income - 38 -9.9 Gross Income - 44 Operating Income -11.0 Income Before Tax - 17 - 13 Net Attributable Profit -12.3 - 39 -19.9 -7.9
Slide 39: First quarter results 2013
Ángel Cano, BBVA’s President & Chief Operating Officer Madrid, April 26th 2013 First quarter results 2013 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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