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

Banco Bilbao Vizcaya Argentaria — Q3 2018 Earnings Presentation

27 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Oct 30, 2018

  1. Slide 1: 3Q18 Results

    BBV. oS ome 3Q18 Results October 30th, 2018

  2. Slide 2: Disclaimer

    3Q18 Results October 30!" 2018/2 Disclaimer This documentis only provided for information purposes and does not constitute, nor should it be interpreted as, an offer tosell or exchangeor acquire, or an invitation for offers to buy securities issued by any ofthe aforementioned companies. Any decision

  3. Slide 3: Strong Results in the Quarter

    Strong Results in the Quarter Net Attributable Profit Quarterly evolution (€m) 1,340 Ex- TEF impairment 1,143 1,123 m 7/0 3017. AQ17 1018 BBVA Chile disposal +633€m Hyperinflation (ARG) -190€m 1,309 2018 1,674 3018 3Q18 Results October 30! 2018/3 CET1 fully-loaded — BBVA Group Quarterly evolution (%

  4. Slide 4: Highlights

    3Q18 Highlights O01 Strong core revenue growth O02 Delivery in efficiency O3 Accelerating our transformation O4 Sound risk indicators 05 Solid capital position, above target O6 Focus on shareholder value 3Q18 Results October 30'2018/ 4 Nl + Fees (€ constant) +11.9% vs.3017 Efficiency 49.6% -52 bps v

  5. Slide 5: 3Q18 Profit & Loss

    3Q18 Results October 30!" 2018/5 3Q18 Profit & Loss Change 3Q18/3Q17 BBVA Group Net Interest Income 4,256 =3.2 13.3 Net Fees and Commissions 1,161 7.0 6.8 Net Trading Income 200 -42.4 -27.2 Other Income & Expenses -94 ns. ns. Gross Income 5,522 -10.8 48 Operating Expenses -2,779 -9.6 3.3 Operating I

  6. Slide 6: 9M18 Profit & Loss

    3Q18 Results October 30'"2018/ 6 9M18 Profit & Loss Change 9M18/9M17 BBVA Group Net Interest Income 12,899 -2.3 10.2 Net Fees and Commissions 3,653 14 9.4 Net Trading Income 907 -35.9 -31.2 Other Income & Expenses 136 -76.7 -73.7 Gross Income 17,596 -6.9 4.3 Operating Expenses -8,721 -7.) 27 Operati

  7. Slide 7: Strong Core Revenue Growth

    Strong Core Revenue Growth Net Interest Income (€m constant) +13.3% | ° v 4,513 Excellent 4,229 4,130 4,256 3,983 quarter | | | / | I 4Q17 1018 2018 3Q18 Net Trading Income (€m constant) LowerALCO 528 sales & Global 391 Markets I | | 284 930 results La 4Q17 I 2018 3Q18 Net Fees and Commissions (€m c

  8. Slide 8: Delivery in efficiency

    Delivery in efficiency Group Operating Jaws (YoY (%); (€ constant)) 8,460 --- 0.3% 9M16 QM17 -2 16,553 10.1% ‘ 8.0% -7 15,040 13,923 ~ --> 8490 -- 2.7% >8721 9M18 Core Revenues Operating Expenses 3Q18 Results October 30! 2018/8 Efficiency Ratio (€ constant) 53.0% 50.1% _ 52 496% ~” bps J 12M16 12M17

  9. Slide 9: Outstanding trend in digital sales across the board

    3Q18 Results October 30! 2018/9 Outstanding trend in digital sales across the board Digital sales by product (% of total sales YtD, PRV*) (% of total sales YtD, 43.0% dé Consumer loans # of transactions and PRV*) 37.9% ww SMEsloans 39.5 Dp vnirs] 30.0% Demanddeposits = Ww 20.6% &% Insurance 15.3 307

  10. Slide 10: Positive performance in digital sales in all markets

    3Q18 Results October 30! 2018/10 Positive performance in digital sales in all markets (% oftotal sales YtD, # of transactions and PRV*) QO SPAIN QUSA 437 24.6 ey 267 De 184 5 3.2 WE 157 344 , 16.2 10.2 19.0 11.0 Sep-16 Sep-17 Sep-18 Sep-16 Sep-17 Sep-18 O MEXICO QO TURKEY QO SOUTH AMERICA 34.6 44.8

  11. Slide 11: Digital sales unlock additional revenues and clients growth

    3Q18 Results October 30% 2018 / 11 Digital sales unlock additional revenues and clients growth Global FX Revenue Users of BBVA FX digital platforms (€, YtD) (Sep-18 vs Sep-17) +29%—) +70% / A DIGITAL +23% Zo NON ic} e DIGITAL TURKEY PERU COLOMBIA x14 x9.5 x2./ Sep-17 Sep-18

  12. Slide 12: Digitalization also drives engagement

    3Q18 Results October 30°" 2018/12 Digitalization also drives engagement Evolution after client digitalization (Example Spain) Revenue per client Number of products Digitalization 12 months later Digitalization 12 months later T-0 T-12 T-0 T-12 Digital (0) Digital 4.7 22% -5% Non digital Non digital

  13. Slide 13: Transformation enables higher sales with less commercial efforts

    3Q18 Results October 30°" 2018/13 Transformation enables higher sales with less commercial efforts Example Mexico +32% Growthin PRV* sales +282% +7% | 1Q16 Traditional Digital 3Q18 ABOVE THE GLASS levers sales BELOW THE GLASS _ -3% Efficiency | | (FTEs evolution) +4% — =! 5% 1Q16 Sales Administrativ

  14. Slide 14: New creation model also leads to efficiency gains

    3Q18 Results October 30'" 2018/14 New creation model also leads to efficiency gains @ Speed S Reusability ® Featuresper developer/month FX DIY program execution (front-to-back) g r— x6.6 | Time-to-Market (*) Mexico First deployment @) Peru -25% 2016 2018 _§ Colombia -5O

  15. Slide 15: Sep-16 Sep-17 Sep-18

    Sep-16 Sep-17 Sep-18 Sep-16 Sep-17 Sep-18

  16. Slide 16: Best in class in Mobile Banking App

    Best in class in Mobile Banking App The Forrester Banking Wave Global Banking App Ranking 2018 FORRESTER’

  17. Slide 17: Sound risk indicators

    Sound risk indicators! Financial Asset Impairments? (€m constant) +16.5% 1 ids 904 749 801 775 | | | | ~ 3017, 4Q17)— 1018 = 2Q18 — 33Q18 Cost of risk YtD (%) SS T_T 0.94% 0.89% 0.85% 0.82% 0.90% Kannada 3Q17 4Q17 1Q18 2Q18 3Q18 (1) Data as of M18 under IFRS9 standards, 2017 figures under AS 39 (2)

  18. Slide 18: Solid capital position

    Solid capital position CET1 fully-loaded - BBVA Group Evolution (%, bps) +35 bps 11.40% | Jun.18 Net proforma * Earnings -13 bps Dividend accrualand AT1 Coupons RWAs 3Q18 Results October 30!" 2018/18 11.34% -17 bps Others ** Sep.18 (In constant €) (*) Data proforma Jun.18 includes IFRS9 full impact

  19. Slide 19: Focus on shareholder value

    Focus on shareholder value TBV per Share & Shareholder Remuneration (€ per Share) +7.2% | 5.95 5.73 5.78 | 0.25 Dividends Jor Jor 5.55 5.55 5.58 5.63 570 lJan-18 Mar-18 Jun-18 Sep-18 (1) Ex- corporate operations 3Q18 Results October 30!" 2018/19 ROE and ROTE! Inc.Corp. Ops. 14.8% 13.1 11.9 12.0 —— 9

  20. Slide 20: Creating Opportunities: Business Areas

    Creating Opportunities Business Areas

  21. Slide 21: Business Areas

    Business Areas 3Q18 Results 30°" 2018/21 SPAIN Banking activity NET ATTRIBUTABLE PROFIT (9M18) 1,167 €m +10.5% vs om7 NPL RATIO! 5.0% vs. 5.8% 3Q17 COVERAGE RATIO 56% vs.52% 3Q17 Loans: Continued growth in most profitable retailsegments. Core revenue growth(+1.3%yoy in 9M18): sound growth in asset m

  22. Slide 22: Business Areas

    Business Areas 3Q18 Results \ctober 30h 2018 / 22 MEXICO € constants NET ATTRIBUTABLE PROFIT (9M18) NPL RATIO 1,851 €£ m 2.0% vs.2.3% 3Q17 COVERAGE RATIO +22.5% vs.0007 149% v5, 126% 3017 Loans: mortgagesand consumer loans, the main growth drivers in3Q. NII growing above activity. Widening operating

  23. Slide 23: Final Remarks

    Final Remarks 01 Solid setof results, supported by core revenues 02 Digital leadingto growth and efficiency gains 03 Sound and resilient capital position 04 Growing tangible book value despite difficult market environment Focus on shareholder value

  24. Slide 24: Creating Opportunities

    Creating Opportunities

  25. Slide 25: Annex

    BY BAY/ Creating 2Q18 Results Opportunities October 30th 2018 / 25, Annex

  26. Slide 26: Total Spain — Profit & Loss

    3Q18 Results October 30!" 2018 / 26 Total Spain — Profit & Loss Total Spain 9M2018 Net Interest Income 924 -2.1 2,780 -2.1 Net Fees and Commissions 420 73 1,271 8.0 Net Trading Income Al -45.7 324 -17.8 Other Income & Expenses 88 -20.1 131 -57.3 Gross Income 1,474 =3:2) 4,505 -4.5 Operating Expenses

  27. Slide 27: BBV. oS ome

    BBV. oS ome 3Q18 Results October 30th, 2018

Banco Bilbao Vizcaya Argentaria — Q3 2018 Earnings Presentation on 6ix