25 slides from Banco Bilbao Vizcaya Argentaria's investor presentation, September 2019
Slide 1: BBVA Mexico - Creando Oportunidades
BBVA : _ : , ando Oportunidades BBVA Mexico Aedes) rn ’ sen : eee Eduardo Osuna Osuna a | i i > al JE September 2019 3 _ it ; i i ‘ in|
Slide 2: Macro Overview
BBVA Creando Oportunidades Macro Overview
Slide 3: Challenging macro environment
Challenging macro enviroment GDP GROWTH (voy, %) PUBLIC AND PRIVATE INVESTMENT (voy, %) 2.0 18 0 = Public 07 5 | ——Private 2018 2019e 2020¢ a oN END OF 0% 0% % ® ® .® LP SL SS KK KK of INFLATION (Voy. %) MONETARY POLICY INTEREST RATE (%) 8.00% 8.5 60 eo 8.00% Ago-19 50 75 7.252 7.25% 40 7.0 6.25% 6.
Slide 4: But a positive outlook for banking
But a positive outlook for banking BANKING SYSTEM LOAN GROWTH (YoY, % in real terms) 2004-2017 GDP average growth 2.5% Banking system < average loan growth 9.9% 4X GDP BANKING PENETRATION (% of >15Y old population with checking account in 2017) 74% 70% 55% 49% 460 46% gay 43% 37% 310% OPPORTUNITIES
Slide 5: 1S 2019 Results
Creando Oportunidades 1S 2019 Results
Slide 6: BBVA Mexico insights
BBVA OUR PURPOSE Creando Oportunidades ff To bring the age of BBVA MEXICO INSIGHTS 6M 20 opportunity to everyone 7 BBVA's Coverage in Mexico adult population @ RESULTS n Ss 44.3% excl. one-offs” municipalities As of Jun-19 1,821 12,811 20M M 373k 8.4M 55% Branches ATMs Clients Employees Digital Clie
Slide 7: Loan growth supported by retail
Loan growth supported by retail PERFORMING LOANS (villion euros constant) LOAN PORTFOLIO MIX i) 4 9% Retail Loans vs, Jun-18 26,856 ME @ 3.0% vs. Jun-18 54,056 51,553 Wholesale Loans 27,200 M€ @ 1.9% vs. Jun-18 Jun-18 Jun-19 Figures under consolidated vision for BBVA businesses in Mexico. BBVA Mexic
Slide 8: With a profitable funding mix
With a profitable funding mix CUSTOMER DEPOSITS (iilion euros constant) CUSTOMER DEPOSIT MIX 0 5.1% Demand Deposits vs. Jun-18 40,388 ME @ 29% vs. Jun-18 51,887 49,369 Time Deposits 11,498 M€ @ 136% vs. Jun-18 Jun-18 Jun-19 Figures under consolidated vision for BBVA businesses in Mexico. BBVA Mexico
Slide 9: 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%
14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%
Slide 10: 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
Slide 11: BBVA Mexico P&L evolution
BBVA Mexico P&L evolution P&L 6M19 (Me) Aconstant € Acurrent € 6M19 (Me) 6M18 (Me) vs 6M18 (%) vs 6M18 (%) Net Interest Income 3,042 2,823 +7.8 +14.9 Fees & Commissions 621 628 -1.0 +55 Trading Income 135 154 -118 -6.0 Other Income and expenses 102 89 +14.0 +21.6 Gross Income 3,901 3,693 +5.6 +12.6
Slide 12: Strong leadership positioning in Mexico
Strong leadership positioning in Mexico NET PROFIT Ti Sour LOANS BBVA Peer 1 Peer 2 Peer 3 BBVA Peer 1 Peer 2 Peer 3 22.3% 14.3% 13.1% 12.7% 29.1% 16.9% 13.3% 11.0% CUSTOMER DEPOSITS NPS BBVA Peer 1 Peer 2 Peer 3 BBVA Peer 1 Peer 2 Peer 3 23.4% 14.3% 13.7% 13.6% 60 56 51 44
Slide 13: BBVA Mexico's Evolution
Creando Oportunidades BBVA Mexico's Evolution
Slide 14: We have achieved a transversal leadership
We have achieved a transversal leadership PROFITABILITY INFRAESTRUCTURE SOCIAL FOOTPRINT INNOVATION BRANCHES CLIENTS DIGITAL CLIENTS BBVA I 1,821 @ 20m BD 84m vs. 1,462n vs. 18.2M 2016 vs. 3.9M 2016 ATM's LOANS MOBILE CLIENTS + ¥ 12,811 “22.3% B 78M vs. 9,356 next peer vs. 14.3% next peer vs. 2.8M 2
Slide 15: Positive evolution of Financial and Non-Financial KPIs
Positive evolution of Financial and Non-Financial KPls 7) EFFICIENCY RATIO %, constant euros ROE % NET ATTRIBUTABLE PROFIT" Million constant euros 37.0 2,482 = te 1,892 as 1.287 33.3 33.1 1,703 . 2015 2016 2017 2018 isi9 2015 2016 2017 2018 1s19 2015 2016 2017 2018 isi9 Figures under consolidated vi
Slide 16: ... however, it was not always this way
... however, it was not always this way
Slide 17: In 2010 BBVA Mexico started a transformation process
In 2010 BBVA Mexico started a transformation process @® 2011" + “ULISES” PLAN We re-engineered our business model and updated our infrastructure offer + “EXPERIENCIA ® 2013 UNICA” + PROCCESS PLAN We set new attention protocols, a franchise model for all the network We redesigned all the key process
Slide 18: 2100 u 1900 u 15000 1700 13000 11000 1500 9000 7000 1300 0 1100
2100 u 1900 u 15000 1700 13000 11000 1500 9000 7000 1300 5000 1100 3000 u u 300 40 280 35 260 30 240 25 220 200 20 180 15 160 10 140 5 120 100 0
Slide 19: Transactional growth through efficient channels, with no employee growth
Transactional growth through efficient channels, with no employee growth and greater customer satisfaction MONTHLY AVERAGE TRANSACTIONS Million of Transactions Financialand Non-Financial EMPLOYEE EVOLUTION Grupo Financiero BBVA Bancomer, Thousands a 2.7x 626.7 + Improving operations in — traditional
Slide 20: • • • • • • • • • • • • • •
9 60 8 7 50 10 6 5 40 9 4 30 8 3 7 2 20 6 1 5 0 10 4 3 • • • • • • • • • • • • • • •
Slide 21: Transformation boosting net attributable profit
Transformation boosting net attributable profit BBVA Mexico NET ATTRIBUTABLE PROFIT EVOLUTION Million constant euros t -16% 13% 2,482 _+11% 7 = 10% ~ 2,138 46% ——~ *9% 1,892 yore --——# 41% ——- +1% 1,703 1,415 1,559 1,310 1,323 1,330 2010 2011 2012 2013 2014 2015 2016 2017 2018 New Next Peer PROFIT N
Slide 22: Social Responsibility
Creando Oportunidades Social Responsibility
Slide 23: Committed with Mexico
Committed with Mexico 1s place in Corporate Social Responsibility nent and the & § Socially Responsible Company & Award (SRC) Ist private bank in Mexico to issue a green bond
Slide 24: Nation-wide scholarship program
Nation-wide scholarship program * 6k students per year (150 k applicants) ¢ +235k scholarships (since 2002) 4) © OCI Agreement 25 schools rebuilt after ¢ 1k students per year sep'17 earthquakes ¢ 43k scholarships awarded (since ¢ 16k student benefited 2002) ri © Ni) Shared scholarship &Q IBERO agree
Slide 25: BBVA Mexico - Creando Oportunidades
BBVA : _ : , ando Oportunidades BBVA Mexico Aedes) rn ’ sen : eee Eduardo Osuna Osuna a | i i > al JE September 2019 3 _ it ; i i ‘ in|