Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q3 2013 Earnings Presentation
36 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Oct 25, 2013
Slide 1: Third quarter results 2013
Angel Cano, BBVA's President & Chief Operating Officer Madrid, October 25th 2013 Third quarter results 2013
Slide 2: Disclaimer
Disclaimer This document is only provided for information purposes and does not constitute, nor must 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 invest in securities
Slide 3: Relevant aspects
Relevant aspects Conservative reclassification of refinanced loans, affecting all portfolios Most demanding standards of European banks 38% of NPAs in Spain are current 5.1% of CNCB sold at market prices +71bp of core capital from entire operation (€2.4bn BIS III fully loaded) Refinanced loans Opera
Slide 4: Risk Highlights
Risk Highlights Adequate financing structure Solvency Liquidity Earnings Risk Dynamism and potential of the franchise Optimum management of capital Refinanced loans under conservative exercise Strong fundamentals
Slide 5: Strong fundamentals: risk, solvency, liquidity, earnings
Risk Solvency Liquidity Earnings Highlights Risk Strong fundamentals NPA ratio 4.6% Liquidity gap reduction €22bn (€ balance sheet, 9M13) Gross income €16,303M (9M13) Core capital - BIS 2.5 11.4% Coverage ratio 58% Note: risk figures exclude real estate activities. Real estate activity in Spain: NPA
Slide 6: Shareholder remuneration policy
Shareholder remuneration policy Proposal Scrip option dividend of €0.17 per share in April 2014. No dividend payment in January 2014. New dividend policy: 35%-40% payout in cash. Scrip option dividend in addition to cash payment during a transition period. Moving towards a normal dividend policy Res
Slide 7: Earnings: recurring revenue despite complex environment
Net interest income €m Earnings: recurring revenue despite complex environment ... Affected by exchange rates Net interest income + fees €m -3.2% -2.0% -1.7% Gross income €m +1.4% constant € +2.3% constant € +1.9% constant €
Slide 8: Model based on diversification
... thanks to a model based on diversification Note: excludes Holding. Year-on-year variation in constant € Spain Rest of Europe Mexico South America Turkey Asia USA Developed 42% YoY chg. Weight -5.3% Emerging 58% YoY chg. Weight +11.1% Breakdown of gross income 9M13 % Driven by emerging markets
Slide 9: Cost management adapted to each region
Cost management adapted to each region Costs contained Perimeter effect YoY change 9M13 vs 9M12 (%) High inflation economies Investment for the future Developed Emerging YoY change 9M13 vs 9M12 (%) Note: excludes Holding +5.3% Current € (+8.7%) Constant € Costs 9M13 vs 9M12
Slide 10: Maintaining efficiency leadership
Maintaining efficiency leadership Operating income €m -4.3% Constant € -8.1% Comparison affected by ... Adjustment in Asia 1Q13 Telefonica's dividend Hyper-inflation Exchange rates Perimeter effect Another quarter of resilience and sustained earnings
Slide 11: Risk: affected by reclassification of refinanced loans
Risk: affected by reclassification of refinanced loans 38% of all NPAs are current Level of provisioning maintained during the year NPA ratio (%) Coverage ratio (%) Accum. cost of risk 1.4% 1.6% 1.1% 1.2% 1.4% NPAs Indicators Excl. refinancing Balance of NPAs €bn Refinancing Note: risk figures exclu
Slide 12: Capital: strong and sound
Core capital ratio (BIS 2.5) % Capital: strong and sound Comfortable capital position * Other: mainly the treasury stock, capital losses on AFS securities and RWAs. Ratio leverage: And ... 8.4% Ratio core: 4.8% BIS III fully loaded (Sept.13)
Slide 13: In summary: solid results in a complex environment
In summary: solid results in a complex environment €m Affected by one-offs
Slide 14: Once again...
Once again ... Strong revenue Solid results Strong structure Net attributable profit €3.1bn Capital 4.6% 58% Liquidity Risk NPA ratio Coverage ratio €16bn Diversified revenue 58% Emerging liquidity gap €22bn (9M13) (9M13) Note: risk figures exclude real estate business. Real estate business in Spain
Slide 15: Business Areas
, BBVA Business Areas
Slide 16: Developed
Developed Emerging
Slide 17: Banking activity in Spain: funding costs improvement
-7.5% Banking activity in Spain: trend maintained with improvement in funding costs Lending -7.2 % +13.8% Customer funds Business activity in Spain YoY chg in average balances 70bp increase in market share of loans Note: market share includes ODS loans (retail activity). YoY change. 105bp increase i
Slide 18: Banking activity in Spain: risk indicators
Banking activity in Spain: risk indicators affected by refinanced loans NPA and coverage ratios (%) NPAs - net balance €bn Refinancing 41% of NPAs are current NPA ratio Coverage ratio 45% Excl. refinancing 5.0% Excl. refinancing
Slide 19: Banking activity in Spain: income statement
€m Impact of refinancing Market share increases due to customer acquisition 3Q13 highlights Banking activity in Spain: income statement
Slide 20: Real estate business in Spain: exposure
-17.9% Real estate business in Spain: exposure 18.0 15.6 14.8 Note: transparency on like-for-like basis. The figures include Unnim but exclude the investment in Metrovacesa. * Other foreclosed assets includes foreclosed assets that do not stem from financing family home buying Net exposure to real e
Slide 21: Real estate business in Spain: risk indicators
NPA and coverage ratios (%) 34% of NPAs are current NPA and coverage ratios (%) 47.0% NPA ratio Coverage ratio Refinancing Real estate business in Spain: risk indicators 73% Excl. refinancing Excl. refinancing NPAs - net balance €bn
Slide 22: Real estate business in Spain: income statement
Real estate business in Spain: income statement Improved outlook for sector 3Q13 highlights €m Good sales figures despite seasonal influence Reduced exposure
Slide 23: USA: business growth in a low-interest rate environment
USA: business growth in a low-interest rate environment Lending +10.0% +6.4% Customer funds Net interest income Constant €m Operating income Constant €m Gross income Constant €m -3.1% -7.9% -10.1% Compass business activity YoY change, average balances , constant euros
Slide 24: USA: excellent risk indicators
NPA ratio Coverage ratio NPA and coverage ratios % USA: excellent risk indicators Loan-loss provisions and cost of risk Quarter on quarter (Constant €m, %)
Slide 25: USA: income statement
USA: income statement Constant €m Good business activity 3Q13 highlights Costs and risk under control Sensitive to interest rates
Slide 26: Emerging
Developed Emerging
Slide 27: EurAsia: income statement
Note: in accordance with IFRS Garanti is accounted by the equity method for the purpose of uniform presentation based on the size of BBVA's investment EurAsia: income statement Constant €m Country's potential Turkey Revenue strength Buoyant business
Slide 28: EurAsia: capital management operation in China
5.1% of CNCB sold at market price to CITIC GROUP +71bp of core capital from this operation overall (€2.4bn BIS III fully loaded) €2.3bn loss due to change in accounting criteria China continues to be an attractive market for BBVA Operation Impact Strategy EurAsia: capital management operation in Chi
Slide 29: Mexico: top franchise with solid results
Mexico: top franchise with solid results Lending +9.9% +8.0% Customer funds Business activity YoY change, in average balances , in constant euros Net interest income Constant €m Operating income Constant €m +6.9% +6.4% +6.1% Gross income Constant €m
Slide 30: Mexico: risk indicators remain stable
Mexico: risk indicators remain stable NPA ratio Coverage ratio NPA and coverage ratios % Loan-loss provisions and cost of risk Quarter on quarter (Constant €m, %)
Slide 31: Mexico: income statement
Mexico: income statement Constant €m Country's potential Buoyant business and strong revenue Distribution model improvement 3Q13 highlights
Slide 32: South America: buoyant business and strong revenue
South America: buoyant business and strong revenue Lending +16.7% +26.0% Customer funds Net interest income Constant €m Operating income Constant €m +29.2% +19.4% Gross income Constant €m +20.4% Business activity YoY change, in average balances , in constant euros
Slide 33: South America: good risk indicators
NPA ratio Coverage ratio NPA and coverage ratios % South America: good risk indicators Loan-loss provisions and cost of risk Quarter on quarter (Constant €m, %)
Slide 34: South America: income statement
South America: income statement Buoyant business maintained Revenue strength 3Q13 highlights Note: pension business is included under Holding. Strong commitment to region Constant €m
Slide 35: In summary: BBVA maintains solid fundamentals during the year
In summary: BBVA maintains solid fundamentals during the year Strong revenue Solid results Strong structure Net attributable profit €3.1bn Capital Liquidity Risk €16bn Diversified revenue 58% Emerging (9M13) (9M13) 4.6% 58% NPA ratio Coverage ratio liquidity gap €22bn Note: risk figures exclude real
Slide 36: Third quarter results 2013
Angel Cano, BBVA's President & Chief Operating Officer Madrid, October 25th 2013 Third 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 authoriz
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