Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q3 2021 Earnings Presentation
61 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Oct 29, 2021
Slide 1: 3Q21 Results
3Q21 Results October 29th, 2021
Slide 2: Disclaimer
3Q21 Results 2 Disclaimer This document is only provided for information purposes and does not constitute, nor should 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 buy or inv
Slide 3: Excellent results and very strong capital generation
3Q21 Results 3 Excellent results and very strong capital generation NET ATTRIBUTABLE PROFIT1 CET1 FULLY LOADED (CURRENT €M) (%) One of the highest quarterly results ever reported 13.18% Sep-21 +31 bps PRO-FORMA AFTER SHARE +31.1% BUYBACK2 14.48% 1,400 14.17% 1,294 1,058 1,068 3Q19 3Q20 2Q21 3Q21 Jun
Slide 4: Delivering on our clear commitment to shareholder value creation
3Q21 Results 4 Delivering on our clear commitment to shareholder value creation TBV / SHARE + DIVIDENDS PROFITABILITY METRICS2 (€/ SHARE) (%) TBV / share +12.3% +64 bps Dividends 11.1 10.4 ROE 6.55 6.40 1 0.14 1 0.06 5.84 +68 bps 6.41 11.7 6.34 11.0 ROTE Sep-20 Jun-21 Sep-21 6M21 9M21 (1) April 2021
Slide 5: Top messages
3Q21 Results 5 Top messages 1 NII + FEE INCOME (constant €) Strong core revenue evolution NII FEE INCOME with NII growth accelerating and +8.3% vs.3Q20 5.4% vs.3Q20 18.4% vs.3Q20 outstanding fee income 2 EFFICIENCY RATIO (%) Leading efficiency -83 bps YTD in constant € 44.7% in 9M21 vs 62.2% Europea
Slide 6: 3Q21 Profit & Loss
3Q21 Results 6 3Q21 Profit & Loss Change Change 3Q21/3Q20 3Q21/2Q21 BBVA Group (€m) 3Q21 % constant % % constant Net Interest Income 3,753 5.4 5.6 6.1 Net Fees and Commissions 1,203 18.4 17.6 1.1 Net Trading Income 387 11.6 8.4 -23.6 Other Income & Expenses -13 n.s. n.s. n.s. Gross Income 5,330 7.2
Slide 7: 9M21 Profit & Loss
3Q21 Results 7 9M21 Profit & Loss Change 9M21/9M20 BBVA Group (€m) 9M21 % constant % Net Interest Income 10,708 2.5 -3.7 Net Fees and Commissions 3,518 19.2 14.2 Net Trading Income 1,472 13.7 7.3 Other Income & Expenses -108 n.s. n.s. Gross Income 15,589 5.6 -0.2 Operating Expenses -6,976 6.5 2.2 Op
Slide 8: Strong revenue growth
3Q21 Results 8 Strong revenue growth NET INTEREST INCOME NET FEES AND COMMISSIONS (CONSTANT €M) (CONSTANT €M) + 5.4% +6.1% 3,758 + 18.4% Outstanding NII growth +1.1% 3,565 3,560 evolution across 3,409 3,541 accelerating 1,205 the board. The driven by activity 1,122 1,192 1,018 1,053 highest quarterl
Slide 9: Accelerating NII growth driven by activity recovery in higher margin portfolios
3Q21 Results 9 Accelerating NII growth driven by activity recovery in higher margin portfolios and positive trend in customer spreads LOAN GROWTH CUSTOMER SPREAD NET INTEREST INCOME YTD %, PERFORMING LOANS UNDER % CONSTANT €, MILLION EUROS MANAGEMENT (CONSTANT €)1 SPAIN Resilient NII despite seasona
Slide 10: We continue leading efficiency
3Q21 Results 10 We continue leading efficiency OPERATING EXPENSES EFFICIENCY RATIO (CONSTANT €M) (%) +3.4 % vs. 11.2% inflation1 RANKING VS +6.5 % EUROPEAN PEERS2 vs. 6.1% inflation1 51.9 6,744 6,976 #1/15 6,548 44.7 9M19 9M20 9M21 2016 2017 2018 2019 2020 9M21 (1) Weighted by operating expenses and
Slide 11: Solid risk indicators
3Q21 Results 11 Solid risk indicators FINANCIAL ASSETS IMPAIRMENTS NPLs (€M CONSTANT) (€BN) -0.1 €Bn 916 15.5 15.6 15.7 904 15.0 14.9 786 663 623 3Q20 4Q20 1Q21 2Q21 3Q21 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Great underlying risk evolution COST OF RISK NPL & COVERAGE RATIOS (%, YTD) (%) COVERAGE 85% 8
Slide 12: Strong capital generation
3Q21 Results 12 Strong capital generation CET1 FULLY-LOADED (QUARTERLY EVOLUTION %, BPS) +31 bps 13.18% Sep-21 +45 bps +9 bps 14.48% PRO-FORMA AFTER SHARE 14.17% BUYBACK2 -21 bps -3 bps 8.60% CET1 SREP requirement 1 Jun.2021 Results Dividend RWAs Activity Others Sep.2021 Accrual & (in constant €) AT
Slide 13: Customer acquisition and sales growth through digital channels
3Q21 Results 13 Customer acquisition and sales growth through digital channels NEW CUSTOMERS DIGITAL ACQUISITION1 GROUP DIGITAL SALES2 (CUSTOMERS ACQUIRED THROUGH DIGITAL CHANNELS, (% OF TOTAL SALES YTD) THOUSANDS AND % OF TOTAL ACQUISITIONS) 37% 72.2 32% DIGITAL ACQUISITION 67.4 2,493 + 48% 61.6 9M
Slide 14: Advancing in our clear commitment to sustainability
3Q21 Results 14 Advancing in our clear commitment to sustainability Cutting-edge sustainable solutions to help BBVA at the forefront of the industry in our clients in their transition to a more sustainable finance commitment sustainable future SUSTAINABLE FINANCING CARBON FOOTPRINT CALCULATOR (€BN)
Slide 15: €3.5 billion share buyback program, one of the largest in Europe
3Q21 Results 15 €3.5 billion share buyback program, one of the largest in Europe Maximum amount: First tranche execution €3.5 billion1 €1.5 billion2 or up to 10% of shares Estimated period: 3-4 months Maximum term of 12 months Program starts after the Investor Day To be executed in several tranches
Slide 16: Business Areas
BBVA Creating Opportunities BuSsINesS Areas
Slide 17: Spain
3Q21 Results 17 Spain YtD -0.7% Profit & Loss Δ (%) Δ (%) ACTIVITY (SEP-21) YtD +0.2% (€m) 3Q21 vs 3Q20 vs 2Q21 9M21 vs 9M20 YoY €Bn Net Interest Income 873 -1.4 -2.6 2,635 -1.9 +4.0% 266.7 Net Fees and Commissions 534 21.1 -3.1 1,592 18.0 Net Trading Income 22 -57.4 -73.1 305 40.7 YoY Other Income
Slide 18: Mexico
3Q21 Results 18 Mexico YtD Profit & Loss Δ Constant (%) Δ Current Δ Constant ACTIVITY (SEP-21) YtD +5.7% (€m constant) 3Q21 vs 3Q20 vs 2Q21 9M21 vs 9M20 (%) vs 9M20 (%) (€ CONSTANT) +3.4% YoY Net Interest Income 1,481 4.4 5.2 4,280 6.0 4.1 Net Fees and Commissions 311 15.0 3.7 898 17.7 15.5 €Bn YoY
Slide 19: Turkey
3Q21 Results 19 Turkey Profit & Loss Δ Constant (%) Δ Current Δ Constant ACTIVITY (SEP-21) (€m constant) 3Q21 vs 3Q20 vs 2Q21 9M21 vs 9M20 (%) vs 9M20 (%) (€ CONSTANT; BANK ONLY) Net Interest Income 635 4.8 19.7 1,651 -25.6 -4.9 Net Fees and Commissions 152 35.8 1.4 443 13.2 44.6 YoY1 YoY1 Net Tradi
Slide 20: South America
3Q21 Results 20 South America YtD Net Attributable Profit 0 Δ Constant(%) 1 0 Δ Current Δ Constant1 ACTIVITY (SEP-21) +5.0% (€m constant) 3Q21 vs 3Q20 vs 2Q21 9M21 vs 9M20 (%) vs 9M20 (%) (€ CONSTANT) YtD Colombia 55 4.8 -4.9 159 55.4 65.0 +5.8% YoY Peru 25 -34.4 -6.7 79 3.4 21.7 YoY €Bn Argentina 2
Slide 21: 3Q2021 in review
3Q2021 in review Excellent results evolution driven by strong core revenues and solid underlying risk performance Customer acquisition boost leveraging our best-in-class digital capabilities At the forefront of the industry in our commitment to sustainability Strong capital generation and capital po
Slide 22: Investor Day
Investor Day November 18, 2021
Slide 23: Annex
Annex Net Attributable Profit 01 08 CET1 Sensitivity to market impacts evolution 02 Gross Income breakdown 09 CET1 YTD evolution & RWAs by business Area 03 P&L Accounts by business unit 10 Book Value of the main subsidiaries 04 Customer spread by country 11 TBV per share & dividends evolution 05 Sta
Slide 24: Net Attributable Profit evolution
01 Net Attributable Profit evolution
Slide 25: Net Attributable Profit evolution
3Q21 Results 25 Net Attributable Profit evolution €M +1,646€M 211 3,727 190 70 50 582 754 2,016 -146 9M20 FX Spain Mexico Turkey South America Rest of business Corp. Center 9M21 Effect YoY (%) 160.9 47.4 48.4 26.2 32.1 (constant €) Note: excluding non-recurring impacts (discontinued & corporate oper
Slide 26: Gross Income breakdown
Q2 Gross Income breakdown Creating Opportunities
Slide 27: Gross Income breakdown
3Q21 Results 27 Gross Income breakdown 9M21 Spain 4,550€M Rest of business 30% 568 €M 4% South America 2,294 €M 15% 16% Turkey 2,414 €M 36% Mexico 5,558 €M Note: Figures exclude Corporate Center.
Slide 28: P&L Accounts by business unit
03 P&L Accounts by business unit Rest of Business Corporate Center Argentina (hyperinflation adjustment) Colombia Peru
Slide 29: Rest of Business – Profit & Loss
3Q21 Results 29 Rest of Business – Profit & Loss Profit & Loss Δ (%) Δ (%) (€m) 3Q21 vs 2Q21 vs 3Q20 9M21 vs 9M20 Net Interest Income 70 3.3 -7.5 209 -4.9 Net Fees and Commissions 54 -14.0 -35.4 189 -28.3 Net Trading Income 47 6.0 60.8 156 17.6 Other Income & Expenses -3 n.s. n.s. 14 -59.2 Gross Inc
Slide 30: Corporate Center – Profit & Loss
3Q21 Results 30 Corporate Center – Profit & Loss Profit & Loss Δ (%) Δ (%) (€m) 3Q21 vs 2Q21 vs 3Q20 9M21 vs 9M20 Net Interest Income -46 21.6 28.6 -128 11.2 Net Fees and Commissions -6 -68.3 -58.6 -29 -45.0 Net Trading Income 101 -16.9 n.s. 268 24.2 Other Income & Expenses 11 -89.1 n.s. 95 n.s. Gro
Slide 31: Argentina hyperinflation adjustment
3Q21 Results 31 Argentina hyperinflation adjustment Profit & Loss 9M21 Hyperinflation 9M21 (€m) (reported) adjustment Ex. Hyperinflation Net Interest Income 709 70 639 Net Fees and Commissions 145 11 134 Net Trading Income 76 8 67 Other Income & Expenses -366 -271 -95 Gross Income 563 -182 745 Opera
Slide 32: Colombia – Profit & Loss
3Q21 Results 32 Colombia – Profit & Loss Profit & Loss Δ (%) Δ (%) (€m constant ) 3Q21 vs 2Q21 vs 3Q20 9M21 vs 9M20 Net Interest Income 191 1.0 4.5 575 3.9 Net Fees and Commissions 20 -7.8 -4.0 63 31.1 Net Trading Income 19 -11.0 -29.3 47 -12.6 Other Income & Expenses -10 9.2 57.1 -23 150.3 Gross In
Slide 33: Peru – Profit & Loss
3Q21 Results 33 Peru – Profit & Loss Profit & Loss Δ (%) Δ (%) (€m constant ) 3Q21 vs 2Q21 vs 3Q20 9M21 vs 9M20 Net Interest Income 200 12.6 11.4 553 5.0 Net Fees and Commissions 61 3.6 11.3 173 26.9 Net Trading Income 24 -55.6 -36.8 112 14.0 Other Income & Expenses -9 -12.7 43.5 -27 51.3 Gross Inco
Slide 34: Customer Spread by country
04 Customer Spread by country
Slide 35: Customer spreads: quarterly evolution
3Q21 Results 35 Customer spreads: quarterly evolution AVERAGE 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Spain 1.89% 1.82% 1.77% 1.76% 1.75% Turkey TL 6.05% 3.90% 2.55% 2.88% 3.43% Yield on Loans 1.89% 1.83% 1.77% 1.75% 1.74% Yield on Loans 12.17% 12.88% 14.30% 15.56% 16.26% Cost of Deposits
Slide 36: Customer spreads: YoY evolution
3Q21 Results 36 Customer spreads: YoY evolution AVERAGE 9M20 9M21 9M20 9M21 Spain 1.92% 1.76% Turkey TL 6.88% 2.96% Yield on Loans 1.94% 1.75% Yield on Loans 13.24% 15.42% Cost of Deposits -0.01% 0.00% Cost of Deposits -6.36% -12.46% Mexico MXN 10.82% 11.06% Turkey FC1 5.01% 4.66% Yield on Loans 12.
Slide 37: Stages breakdown by business areas
05 Stages breakdown by business areas
Slide 38: Stages breakdown by business area
3Q21 Results 38 Stages breakdown by business area CREDIT RISK BREAKDOWN BY BUSINESS AREA (SEP-21, €M) Gross Accumulated Gross Accumulated Gross Accumulated BBVA GROUP SPAIN MEXICO Exposure impairments Exposure impairments Exposure impairments Stage 1 320,443 2,123 Stage 1 168,881 661 Stage 1 51,508
Slide 39: Outstanding loan deferrals & loans backed by State guarantees
06 Outstanding loan deferrals & loans backed by State guarantees
Slide 40: Prudent deferrals' classification and proactive provisioning
3Q21 Results 40 Prudent deferrals’ classification and proactive provisioning Expired deferrals by stages TOTAL DEFERRALS GRANTED o/w expired As of Sep'21 as a % of total loans €BN % of total loans % Stage 1 Stage 2 Stage 3 Total Group 23.7 6.8% 96% 4.0% 1.9% 0.6% By segment Mortgages 10.6 11.3% 94%
Slide 41: Outstanding loan deferrals
3Q21 Results 41 Outstanding loan deferrals OUTSTANDING DEFERRALS (SEP-21) €bn % of loans Total Group 1.0 0.3% Spain 0.9 0.4% Mexico 0.0 0.0% Turkey 0.0 0.0% Peru 0.1 0.4% Colombia 0.0 0.4% Argentina 0.0 0.0% Data according to EBA criteria, excluding loans that have been cancelled.
Slide 42: Government backed loans
3Q21 Results 42 Government backed loans € BN; SEP’21 (2) (3) GROUP SPAIN MEXICO TURKEY ARGENTINA COLOMBIA PERU Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Households 1.3 0.8% 1.1 1.1% 0.0 0.0% 0.0 0.0% 0.0 2.4% 0.0 0.5% 0.1 2.6% Corporates & SMEs 14.9 1
Slide 43: ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
07 ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
Slide 44: ALCO portfolio
3Q21 Results 44 ALCO portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value 44.1 48.7 47.7 (HTC) (HTC&S) 4.1 4.0 September 2021 (€BN) (€BN) (duration) South America 3.9 9.8 9.8 South America 0.2 3.8 1.1 years 7.9 Mexico 6.6 Mexico 2.0 7.8 3.4 years 7.1 7.0 Turkey Turkey 3.4 3.6 4.
Slide 45: NII sensitivity to interest rates movements
3Q21 Results 45 NII sensitivity to interest rates movements ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST RATE MOVEMENTS (%) NII SENSITIVITY TO +100 BPS NII SENSITIVITY TO -100BPS 25% 0% 20% -5% 15% -10% 10% -15% 5% -20% 0% -25% Euro Mexico Euro Mexico Note: NII sensitivities ca
Slide 46: Liquidity and funding ratios
3Q21 Results 46 Liquidity and funding ratios BBVA GROUP AND SUBSIDIARIES LCR & NSFR (SEP-21) BBVA GROUP Euro Mexico Turkey S. America LCR 170% (209%1) 197% 219% 169% All countries >100% NSFR 135% 126% 143% 158% All countries >100% (1) LCR of 170% does not consider the excess liquidity of the subsidi
Slide 47: CET1 Sensitivity to market impacts
08 CET1 Sensitivity to market impacts
Slide 48: CET1 Sensitivity to Market impacts
3Q21 Results 48 CET1 Sensitivity to Market impacts1 TO A 10% DECLINE IN TELEFONICA’S SHARE PRICE (SEP-21) TO A 10% CURRENCY DEPRECIATION -3bps (SEP-21) MXN -5bps TRY 0bps TO +100 BPS MOVEMENT IN THE USD +18bps SPANISH SOVEREIGN BOND (SEP-21) - 13bps (1) CET1 sensitivity considering the FL capital ra
Slide 49: CET1 YTD evolution & RWAs by business area
09 CET1 YTD evolution & RWAs by business area
Slide 50: Capital YTD Evolution
3Q21 Results 50 Capital YTD Evolution CET1 FULLY-LOADED – BBVA GROUP YTD EVOLUTION (%, BPS) +272bps 14.48% +112 bps -25 bps +5 bps 11.73% 12.01% -45 bps -17bps -26 bps (1) Dec-20 Results Dividend RWAs Regulatory Others Sep-21 BBVA Restructuring Sep-21 Accrual & (constant €) impacts (excl. Paraguay &
Slide 51: Risk-Weighted Assets by business area
3Q21 Results 51 Risk-Weighted Assets by business area Fully-Loaded RWAs Breakdown by business area (€m) Sep-20 Jun-21 Sep-21 Spain 106,859 112,030 108,921 Turkey 50,131 53,554 55,233 Mexico 53,464 62,396 61,162 South America 40,087 39,113 40,849 Argentina 5,987 5,548 6,180 Chile 2,141 1,700 1,603 Co
Slide 52: Book Value of the main subsidiaries
10 Book Value of the main subsidiaries
Slide 53: Book Value of the main subsidiaries
3Q21 Results 53 Book Value of the main subsidiaries1,2 € BN; SEP’21 Mexico 12.6 Turkey 3.8 Colombia 1.3 Argentina 1.0 Peru 1.0 Chile 0.3 Venezuela 0.1 (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuation adjustments. The Goodwill associate to each subsidia
Slide 54: TBV per share & dividends evolution
11 TBV per share & dividends evolution
Slide 55: Shareholders' return: TBV per share & dividends evolution
3Q21 Results 55 Shareholders’ return: TBV per share & dividends evolution TBV PER SHARE & DIVIDENDS (€ PER SHARE) +12.3% TBV Dividends 6.40 6.55 6.05 6.15 0.06 1 0.14 1 5.84 6.34 6.41 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 (1) April 2021 dividend per share (0.06 €) and October 2021 dividend per share (0
Slide 56: Garanti BBVA: wholesale funding
12 Garanti BBVA: wholesale funding
Slide 57: Turkey – Liquidity & funding sources
3Q21 Results 57 Turkey – Liquidity & funding sources Solid liquidity position: • Total LTD ratio is at 92.5%, increasing by +1 p.p in 3Q21 mainly driven by TRY LtD • Foreign currency loans decreased by USD 0.3 Bn to c. USD 11.6 Bn in 3Q21 • Liquidity ratios above requirements: Liquidity Coverage Rat
Slide 58: Digital metrics
13 Digital metrics Digital & mobile customers Digital sales
Slide 59: Outstanding trends in digital and mobile clients
3Q21 Results 59 Outstanding trends in digital and mobile clients DIGITAL CUSTOMERS MOBILE CUSTOMERS MILLION CUSTOMERS, % MILLION CUSTOMERS, % +36% +43% 40.1 37.9 31.8 34.3 26.5 29.5 Sep-19 Sep-20 Sep-21 Sep-19 Sep-20 Sep-21 CUSTOMER PENETRATION RATE CUSTOMER PENETRATION RATE 56.2% 62.3% 67.5% 50.6%
Slide 60: Leveraging digital capabilities to grow sales through digital channels
3Q21 Results 60 Leveraging digital capabilities to grow sales through digital channels (% OF TOTAL SALES YTD, # OF TRANSACTIONS AND PRV1) UNITS PRV GROUP SPAIN MEXICO 67.4 72.2 69.0 67.0 63.4 61.6 57.7 56.3 51.6 UNITS 62.0 54.5 51.1 47.4 50.8 42.4 43.6 42.1 43.8 PRV Sep-19 Sep-20 Sep-21 Sep-19 Sep-2
Slide 61: Slide 61
Banco Bilbao Vizcaya Argentaria — Q3 2021 Earnings Presentation on 6ix