Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Debt Investor Presentation (November 2019)
52 slides from Banco Bilbao Vizcaya Argentaria's debt investor presentation, November 2019
Slide 1: Fixed Income Presentation 3Q19
Creating Opportunities Fixed Income Presentation 3Q19 &
Slide 2: Disclaimer
Fixed Income Presentation 3019 AEA Disclaimer This document is only provided for information purposes and does not constitute, nor shouldit 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 dec
Slide 3: Index
BBVA Creating Opportunities Index 01 About BBVA & Financial Highlights 02 BBVA’s Strengths Diversified Footprint Sound Asset Quality Solid Capital Position Strong Liquidity & Funding Structure Leading Transformation Strategy Annex 03 Funding Plan 04 Ratings
Slide 4: About BBVA & Financial Highlights
Creating Opportunities OQ] About BBVA & Financial Highlights
Slide 5: About BBVA
Fixed Income Presentation 3019 AI About BBVA BBVA'S GLOBAL PRESENCE sep.io DIVERSIFICATION UNDER A DECENTRALIZED MODEL Total Assets “”) Gross Income “”) Ss Sep.19 9M 19 Developed Markets m m Emergin Emerging Developed € 709 bn 77 mn 31.0 mn Markets C 68% Markets Markets assets customers digital cust
Slide 6: 3Q19 Highlights
3Q19 Highlights 01 02 03 Robust growth in core revenues Excellent operating income growth and efficiency Sound risk indicators Strong capital position Outstanding delivery on shareholder value creation Ahead of the curve in digital transformation Fixed Income Presentation 3019 ISI FEES (€ constant)
Slide 7: BBVA's Strengths
Creating Opportunities Q2 BBVA’s Strengths
Slide 8: BBVA's Strengths leading to superior earnings and profitability
Fixed Income Presentation 3019 ES BBVA’s Strengths leading to superior earnings and profitability a Diversified footprint a Strong liquidity & funding structure a Sound asset quality a Leading transformation strategy a Solid capital position RESILIENCE AND LOW EARNINGS VOLATILITY HIGH PROFITABILITY
Slide 9: Diversified Footprint
iting Opportunities Diversified Footprint
Slide 10: BBVA Footprint
EZ+UK BBVA Footprint Colombia #4 Peru #2 Argentina #3 10.0% 20.2% 8.5%
Slide 11: Spain
@ Spain Profit & Loss Net Interest Income Net Fees and Commissions Net Trading Income Other Income & Expenses Gross Income Operating Expenses Operating Income Impairment on Financial Assets Provisions & other gains (losses) Income Before Tax Income Tax Net Attributable Profit KEY RATIOS CUSTOMER SPR
Slide 12: USA
@ USA Profit & Loss Net Interest Income Net Fees and Commissions Net Trading Income Other Income & Expenses Gross Income Operating Expenses Operating Income Impairment on Financial Assets Provisions & other gains (losses) Income Before Tax Income Tax Net Attributable Profit KEY RATIOS CUSTOMER SPREA
Slide 13: Mexico
Fixed Income Presentation 3019 AEM ACTIVITY (SEP-19) 135 Ee i] Mexico (constant €) €Bn yor €Bn YoY Net Interest Income 1,554 4.0 4,599 11.9 55.4 45.4% 76.0 46.9% Net Fees and Commissions 330 38 952 06 57 Net Trading Income 106 911 241 154 213 Mortgages 10.5 +10.3% Other Income & Expenses 19 “612 121
Slide 14: Turkey
12.0 13.3 6.6 10.3 12.8 13.1 4.1
Slide 15: South America
® South America Net Attributable Profit ACons AConstant’ —ACurrent 3Q19 8 Colombia 69 29.9 198 18.4 12.2 Peru 55 285 153 178 228 Argentina 52 ns. 17 ns. ns Other? 34 204 100 10.0 53 South America 211 61.8 569 62.0 45.0 (1) Venezuelain current€m (2) Other includes BBVA Forum, Venezuela, Paraguay, Uru
Slide 16: Sound Asset Quality
iting Opportunities Sound Asset Quality
Slide 17: Sound Risk Indicators
Fixed Income Presentation 3019 AMA Sound Risk Indicators NPL Ratio 51 08 58 (%) 43 41 40 © 5449 46 — Risk Framework A Risk Management Model based on prudence and proactivity . 92 4 a tage ratio 57 62 61 72 6) 6A 74 4 65 7375 0 Risk Management Goal To preserve the Group’s solvency, Cost of Risk F sup
Slide 18: Solid Capital Position
iting Opportunities Solid Capital Position
Slide 19: BBVA Group: Solid capital position and ability to generate capital
Fixed Income Presentation 3019 AK BBVA Group: Solid capital position and ability to generate capital FL CAPITAL RATIOS CETIFL SEP.19 (%) QUARTERLY EVOLUTION (%, bps) +4bps 15.71% | V Tier 2 2.12% 34 bps an 2.03% Noe% = ~ ~~ —_ "oe" oe -17 bps -8 bps -5 bps CET1 11.56% Jun-19 Net Dividends & AT1 RWAs
Slide 20: Low earnings volatility and ability to generate capital allow for lower capital needs
Fixed Income Presentation 3019 0] Low earnings volatility and ability to generate capital allow for lower capital needs PRE-PROVISION PROFIT® / NET LOANS EUROPEAN PEERS 6M19 / BBVA 9M19 BVA a 33% Peer] 2.8% Peer). 2 7°/ ii 25° i/o TT 2.4% Pi TT 2 4 0/ rei 2.4 Ceci] 21° Peer dV. Tm 1.9% Pei i = 1.3%
Slide 21: High quality capital
Fixed Income Presentation 3019 AI High quality capital RWAS/ TOTAL ASSETS FULLY-LOADED LEVERAGE RATIO EUROPEAN PEERS JUN.19 / BBVA SEP.19, % EUROPEAN PEERS JUN.19 / BBVA SEP.19, % BV a 5) BBVA 65,9) Pe, 27 Pec] ss (| Peer. 1) () Pech. |, 5.5 eC 37 Peo 1a 54. rect 3 Pech 4 i 3 P,i' 3 / PCC 5 a 5 2 Pe
Slide 22: Risk-Weighted Asset Distribution
Risk-Weighted Asset Distribution TOTAL RWAS FULLY- LOADED Sep.19 368,630 €Mn 29% \ 18% m@ Spain 105,866 m USA 65,902 m™ Mexico 57,454 m Turkey 58,521 m South America 45,284 m@ Rest of Eurasia 17,612 ™ Corporate Center 17,992 it Valuation Adjustment. tribution of R ype of risk ar 35% IRB Models CVAO
Slide 23: 2019 SREP Requirement
T2: 2.0% 0.01% AT1: 1.5% 0.75% 2.50% 1.50% 4.50% 2019 CET1 SREP 2019 Total Capital Requirement SREP Requirement BBVA Group Total capital ratio phased-in Sep.19
Slide 24: Lowest SREP requirement among peers
Fixed Income Presentation 3019 42a Lowest SREP requirement among peers CET1 SREP REQUIREMENT - FL DISTANCE TO MDA VS FULLY-LOADED SREP REQUIREMENT (BASED ON 2019 REQUIREMENT) EUROPEAN PEERS JUN.19 / BBVA SEP.19 11.82% 10.61% 444 10.07% 9.85% 9.83% 9.70% 9.53% 9.33% 9.26% 293 230 215 201 192 | [ [ [
Slide 25: High level of Available Distributable Items (ADIs)
Fixed Income Presentation 3019 ail High level of Available Distributable Items (ADIs) BBVA, S.A. (PARENT COMPANY) DEC.18, € Bn a Significant €9.1Bn payment capacity from distributable items BBVA, S.A. despite conservative ADIs: calculation (Share Premium not included) a Supported by sustainable prof
Slide 26: FX Hedging policy
FX Hedging policy CAPITAL POLICY BBVA hedges c.70% of the excess capital (what is not naturally hedged by the ratio) GOAL ~—_ Reduce consolidated CET1 ratio volatility as a result of FX movements CET1 FL Ratio Sensitivity to a 10% depreciation of EM currencies (Sep.19) APPROX -3 bps MXN -2 bps TRY F
Slide 27: (SEP.19)
(SEP.19) 1.2% (1) Figures excludes SAREB senior bonds (€4.8bn as of Sep-18 and €4.6bn as of Jun-19 and Sep-19) and High Quality Liquid Assets portfolios (€1.7bn as of Sep-18, €11.2bn as of Jun-19 and €11.7bn as of Sep-19) .
Slide 28: Strong Liquidity & Funding Structure
Creating Opportunities Strong Liquidity & Funding Structure
Slide 29: BBVA guidelines for managing Liquidity & Funding
Fixed Income Presentation 3019 (Zl BBVA guidelines for managing Liquidity & Funding a Self-sufficient subsidiaries from a liquidity point of view, with robust supervision and control by parent company a Retail profile of BBVA Group balance sheet with limited dependence on wholesale funding
Slide 30: Principles of BBVA Group's self-sufficient business model
Fixed Income Presentation 3019 EIQ] Principles of BBVA Group's self-sufficient business model: Multiple Point of Entry ° Subsidiage@i™ oo oe ° Self-sufficient bala’ “8 management (om coraat Decentralized | ‘Market access with its credit, name and rating gr N) O d e | (Responsible for doing business
Slide 31: Financial and liquidity soundness
Fixed Income Presentation 3019 AAI Financial and liquidity soundness BBVA GROUP LIQUIDITY BALANCE SHEET © BBVA GROUP LIQUIDITY & FUNDING METRICS (SEP.19) (SEP.19) Euroz @ USA Mexico Turkey S.Amer LTD 100% 94% 107% 96% » 99% 63% 63% Deposits LCR 144% += 144% ~—- 135% 174% — well>100% ‘0 = Net Loans t
Slide 32: Leading Transformation Strategy
iting Opportunities Leading Transformation Strategy
Slide 33: Growth in digital and mobile customers leading to outstanding trend in digital sales
Fixed Income Presentation 3019 ARKIN Growth in digital and mobile customers leading to outstanding trend in digital sales DIGITAL CUSTOMERS MILLION, % YOY GROWTH +24% | [- +17% ayo 26.3 21.3 Sep-17 Sep-18 Sep-19 PENETRATION, ACUMM., % >) > 55.7%) MOBILE CUSTOMERS MILLION, % YOY GROWTH +36% +26% any
Slide 34: Funding Plan
Creating Opportunities Q3 Funding Plan
Slide 35: Strategy focus on maintaining both buckets fulfilled
● Strategy focus ● • on maintaining both buckets • fulfilled • ● • ● ● ● ●
Slide 36: Broaden geographical diversification of access to market
Fixed Income Presentation 3019 (EI Broaden geographical diversification of access to market MEDIUM & LONG-TERM WHOLESALE FUNDING MATURITIES (SEPT.19; € BN) 597 EURO € 42.5bn 55 6.0 70 USA L | | | Ability to access € 3.2bn funding markets in 0.0 0.2 ul 07 le all our main MEXICO 7 3.6 tone ; € 75bn 13
Slide 37: Ratings
Creating Opportunities O4 Ratings
Slide 38: BBVA, S.A. Ratings
Fixed Income Presentation 3019 EE BBVA, S.A. Ratings” BBVA LONG TERM BBVA RATINGS BY TYPE OF INSTRUMENT SENIOR UNSECURED RATINGS Moody's S&P Fitch Investment p Non Investment g Grade mee sable Oa Note: CB = Covered Bonds, SNP = Senior Non Preferred May. € 2) (1) Arating is not a recommendation to bu
Slide 39: Annex
BBVA Creating Opportunities Annex « BBVA Group 3Q19 Profit & Loss « Risk Indicators by business areas 4 Book Value of the main subsidiaries « Capital Base: BBVA Group & BBVA, S.A. 4 BBVA, S.A.: 2019 SREP Requirement and distance to MDA é Called notes — 2017/2019YTD « Debt Issuances — 2018/2019YTD «
Slide 40: Note: Figures Corporate Center
Note: Figures Corporate Center
Slide 41: Risk Indicators by business areas
Risk Indicators by business areas NPL ratio (%) BBVA Group Spain The United States Mexico Turkey Argentina Peru Colombia Rest of Eurasia (%) BBVA Group Spain The United States Mexico. Turkey Argentina Peru Colombia Rest of Eurasia 3.8 4.6 13 2.2 6.3 2.8 4] 5.6 14 Jun. 18 0.91 -0.03 0.94 2.98 1.57 3.
Slide 42: Book Value of the main subsidiaries
Fixed Income Presentation 3019 AZ Book Value of the main subsidiaries ':2 SEP 19 (BN) MeXiCO [OS USA 8,2 Turkey 4.4. [In Colombia 1.4 [i Peru 1.1 Argentina 0.8 Em Chile O.3 B Venezuela 0,71 (1) _ Includes the initial investment + undistributed results + FX impact + other valuation adjustments. The G
Slide 43: Capital Base: BBVA Group & BBVA, S.A.
Capital Base: BBVA Group & BBVA, S.A. PHASED-IN CAPITAL RATIOS SEP.19 (%) BTier2 Bi Additional Tier 1 Mcem CET1 AT] T2 Total Capital Base RWA 16.21 | 2.35 M207 11.80 BBVA Group € 43,423 m €7,606m €8,638m € 59,668 m € 368,136 m 21.20 Mm 1.388 3.36 15.96 BBVA, S.A. € 33,114m €6,977m €3,891m € 43,983 m
Slide 44: BBVA, S.A. 2019 SREP Requirement and distance to MDA
T2: 2.0% 0.03% AT1: 1.5% 0.00% 2.50% 1.50% 4.50% 2019 CET1 SREP 2019 Total Capital BBVA, S.A. Total Requirement SREP Requirement capital ratio phased-in Sep.19
Slide 45: Called notes 2017/2019YTD
Issue Outstanding Product Redemption Coupon ISIN Date currency (M) Tier 2 Jun-09 May-19 € 4.88 3ME + 5.25% ES0214973077 Tier 2 Apr-14 Apr-19 € 1,500 3,50% XS1055241373 AT1 Feb-14 Feb-19 € 1,500 7,00% XS1033661866 AT1 May-13 May-18 $ 1,500 9,00% XS0926832907 Tier 2 Feb-07 Feb-18 € 257 3ME+0.80% ES021
Slide 46: Debt Issuances 2018/2019YTD
Nominal Product Issue Date Call Date Maturity Coupon ISIN currency SNP Sep-19 - Oct-24 € 1,000 M 0,375% XS2058729653 AT1 Aug-19 Mar-25 Perp $ 1,000 M 6,500% US05946KAG67 SNP Jun-19 - Jun-26 € 1,000 M 1,000% XS2013745703 AT1 Mar-19 Mar-24 Perp € 1,000 M 6,000% ES0813211010 SNP Feb-19 - Feb-24 € 1,000
Slide 47: 9M19 Issuances (1/2)
Fixed Income Presentation 3019 ZV 9M19 Issuances (1/2) BBVA BBVA BBVA SNP EUR 16n 0.375% AT1 USD 1 bn PNC5.5 6.5% Green SNP EUR 1bn 1% @ Sixth public transaction in 2019 4 This is the second AT1 @ Second Green SNP, after for BBVA third one in SNP. transaction of the year of 2 the first one issued in
Slide 48: 9M19 Issuances (2/2)
9M19 Issuances (2/2) BBVA AT1 EUR 1 bn PNC5 6% @ Thisis the first AT] transaction of the year of 2 scheduled for the year a Newissue premium close to zero 4 The lowest concession for a Spanish AT1in Euros since 2016YE Key Features BBVA SNP EUR 1 bn 1.125% The first BBVA SNP under Spanish Law issued
Slide 49: Turkey — Liquidity & Funding Sources
Fixed Income Presentation 3019 ZA Turkey — Liquidity & Funding Sources 4 Solid liquidity position: + Improved Total LTD ratio to 96%, decreasing by 2.2 p.p. in 3Q19, driven by improvement both in TRY LTD and Foreign Currency LTD. + Foreign currency loans decreased (-7%) to c. USD 13.1 Bn in 3Q19 + L
Slide 50: Main Subsidiaries Ratings
Main Subsidiaries Ratings © LONG TERM SENIOR UNSECURED RATINGS BBVA Mexico BBVA USA Garanti BBVA BBVA Argentina Investment [J AAA/Aaa AAA/Aaa AAA/Aaa AAA/Aaa grade AA+/Aal AA+/Aal AA+/Aal AA+/Aal AA/Aa2 AA/Aa2 AA/Aa2 AA/Aa2 AA-/Aa3 AA/Aa3 AA/Aa3 AA-/Aa3 AS/A A+/Al At/AI A+/Al A/A2 A/A2 A/A2 A/A2 FIT
Slide 51: Sovereign Exposure by geography
Sovereign Exposure by geography “’) SEP.19, € bn Amortized Cost Fair Value Tradin debt securities debt securities Loans = HTC) HTC&S) Spain 12.9 15.2 14.9 Italy 31 1.9 0.0 3.0 Portugal - - 0.2 0.5 Mexico 1.6 49 6.0 12.4 USA 5.4 75 5.6 0.2 Turkey 4.4 3.8 0.1 0.1 All Others (1) Risk balances according
Slide 52: Fixed Income Presentation 3Q19
Creating Opportunities Fixed Income Presentation 3Q19 &
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