Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q1 2016 Earnings Presentation
65 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, May 9, 2016
Slide 1: Consolidated balance sheet
Millions of Euros March December ASSETS 2016 2015 (*) CASH AND BALANCES WITH CENTRAL BANKS 39,315 43,467 FINANCIAL ASSETS HELD FOR TRADING 81,706 78,326 OTHER FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS 2,281 2,311 AVAILABLE FOR SALE FINANCIAL ASSETS 92,476 113,426 LOANS AND REC
Slide 2: Consolidated income statement
Millions of Euros March March 2016 2015 (*) INTEREST AND SIMILAR INCOME 6,859 5,197 INTEREST AND SIMILAR EXPENSES (2,707) (1,744) NET INTEREST INCOME 4,152 3,453 DIVIDEND INCOME 45 42 SHARE OF PROFIT OR LOSS OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD 7 88 FEE AND COMMISSION INCOME 1,634 1,359
Slide 3: Statement of recognized income and expenses
Millions of Euros March March 2016 2015 (*) PROFIT RECOGNIZED IN INCOME STATEMENT 976 1,639 OTHER RECOGNIZED INCOME (EXPENSES) (893) (64) ITEMS NOT SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT 11 (18) Actuarial gains and losses from defined benefit pension plans 19 (26) Non current assets availab
Slide 4: Slide 4
Slide 5: Statement of changes in total equity
Millions of Euros Total Equity Attributed to the Parent Company Stockholders’ Funds Reserves Non Total Valuation controlling Less: Profit for the Less: Total Common Share Reserves (Losses) Other Adjustments Total Interests Equity Reserves Treasury Year Attributed Dividends Stock Premium from Entitie
Slide 6: Consolidated cash flow statement
Millions of Euros March March 2016 2015 (*) CASH FLOW FROM OPERATING ACTIVITIES (1) (2,745) (2,703) Profit for the year 976 1,639 Adjustments to obtain the cash flow from operating activities: 1,412 661 Depreciation and amortization 344 282 Other adjustments 1,068 379 Net increase/decrease in operat
Slide 7: Operating segment reporting
(*) The figures corresponding to December 31, 2015 have been restated under 2016 operating segment reporting structure for the purpose of comparison with the information for March 31, 2016 (see Note 1). The profit and main earning figures in the consolidated income statements for the three months en
Slide 8: Total assets and margins by operating segment
Millions of Euros March December Total Assets by Operating Segments 2016 2015 (*) Banking Activity in Spain 336,131 339,775 Real Estate Activity in Spain 16,618 17,122 Turkey 91,332 89,003 Rest of Eurasia 23,636 23,469 Mexico 96,263 99,594 South America 68,714 70,661 United States 85,846 86,454 Subt
Slide 9: Maximum credit risk exposure
Millions of euros March December Maximum Credit Risk Exposure 2016 2015 Financial assets held for trading 37,847 37,424 Debt securities 33,448 32,826 Equity instruments 4,315 4,534 Customer lending 85 65 Other financial assets designated at fair value through profit or loss 2,281 2,311 Loans and adv
Slide 10: Change in impaired financial assets
Below is presented the change in the impaired financial assets in the period of three months ended March 31, 2016 and 2015:
Slide 11: Impaired risks by type of asset and sector
Millions of euros Impaired Risks. March December Breakdown by Type of Asset and by Sector 2016 2015 Asset Instruments Impaired Available for sale financial assets 129 76 Debt securities 129 76 Loans and receivables 24,857 25,363 Loans and advances to credit institutions 27 25 Loans and advances to c
Slide 12: Changes in estimated impairment losses
Below are the changes in the period of three months ended March 31, 2016 and 2015, in the estimated impairment losses:
Slide 13: Financial assets and liabilities held for trading
Financial assets and liabilities held for trading
Slide 14: Financial assets and liabilities held for trading
March December Financial Assets and Liabilities Held-for-Trading 2016 2015 Loans and advances to customers 85] 65 Debt securities 33,448] 32,825 Equity instruments. 4.315] 4,534 Trading derivatives: 43,858] 40,902 Total Assets 81,706] 78,326 Trading derivatives 44,342] 42,149, Short positions. 10,76
Slide 15: Cash, central banks and held for trading breakdown
Millions of Euros March December Cash and Balances with Central Banks 2016 2015 Cash 6,952 7,192 Balances at the Central Banks (*) 31,136 36,126 Reverse repurchase agreements 1,227 149 Total Assets 39,315 43,467 Deposits from Central Banks (*) 20,881 21,022 Repurchase agreements 15,200 19,065 Total
Slide 16: Available-for-sale financial assets and Held-to-maturity investment
Available-for-sale financial assets and Held-to-maturity investment
Slide 17: Available-for-sale financial assets
Available-for-Sale Financial Assets Debt securities 87,730] 108,448 Impairment losses (re (133) ‘subtotal 27.618] 108,310 Equity instruments 5,023 5,262 Impairment losses (iss) (148) Subtotal 4,858] 5,116 Total 92,476 113,426
Slide 18: Other financial assets at fair value and available for sale
Millions of Euros March December Other Financial Assets Designated at Fair Value through Profit or Loss 2016 2015 Loans and advances to credit institutions 62 62 Debt securities 176 173 Unit linked products 162 163 Other securities 14 9 Equity instruments 2,043 2,075 Unit linked products 1,930 1,960
Slide 19: Loans and receivables
Millions of euros March December Loans and receivables 2016 2015 Loans and advances to credit institutions 31,561 32,962 Loans and advances to customers 410,458 414,165 Mortgage secured loans 142,360 144,203 Other loans secured with security interest 59,340 57,041 Unsecured loans 135,168 137,322 Cre
Slide 20: Non-current assets held for sale
During the first quarter of 2016 certain debt securities were reclassified from the heading of “Available for sale assets” to the heading “Held to maturity investments”. Non-current assets held for sale
Slide 21: Tangible assets breakdown by type
‘Tangible Assets. Breakdown by Type of Asset st Value, Amortizations and impairm« Property, plants and equipment For own use Land and Buildings Work in Progress Fumiture, Fixtures and Vehicles Accumulated depreciation impairment ‘Subtotal Assets leased out under an operating lease ‘Assets leased out
Slide 22: Tax assets and liabilities; other assets and liabilities
Millions of Euros March December Tax assets and liabilities 2016 2015 Tax assets 17,691 17,779 Current 1,650 1,901 Deferred (*) 16,041 15,878 Tax Liabilities 4,958 4,721 Current 1,430 1,238 Deferred 3,529 3,483 Millions of Euros March December Other assets and liabilities. Breakdown by nature 2016 2
Slide 23: Deposits from credit institutions
Deposits from credit institutions
Slide 24: Deposits from credit institutions
its from credit institutions Reciprocal accounts 233] 160 Deposits with agreed maturity 36,794 37,859 Demand deposits 4.776] 4.421 Other accounts 156] 149 Repurchase agreements 22,151 26,069, Subtotal 64,110] 68,358 ‘Accrued interest until expiration 204] 185 Total 64,314] 68,543
Slide 25: Financial liabilities at amortized cost
Millions of Euros March December Financial Liabilities at Amortized Cost 2016 2015 Deposits from Central Banks 36,081 40,087 Deposits from Credit Institutions 64,314 68,543 Customer deposits 408,971 403,069 Debt certificates 59,154 66,165 Subordinated liabilities 15,917 16,109 Other financial liabil
Slide 26: Hedging transactions and issuance expenses
(*) Hedging transactions and issuance expenses During the first quarter of 2016, BBVA, S.A.and Catalunya Banc amortized €4,500 million and €1,750 million of mortgage bonds respectively. BBVA SA issued €1,250 million of mortgage bonds, in the same period. Subordinated liabilities
Slide 27: Debt certificates and subordinated liabilities
Millions of Euros March December Debt Certificates 2016 2015 Promissory notes and bills In euros 557 456 In other currencies 218 192 Subtotal 775 648 Bonds and debentures issued In euros Non convertible bonds and debentures 9,544 9,764 Mortgage Covered bonds 23,894 28,740 Hybrid financial instrument
Slide 28: Pension impact, reserves and valuation adjustments
Millions of Euros March March Consolidated Income Statement Impact 2016 2015 Interest and similar expenses (*) 30 33 Personnel expenses 42 42 Defined contribution plan expense 24 22 Defined benefit plan expense 18 20 Provisions (net) 70 152 Total impact on Income Statement: Debit (Credit) 142 227 Mi
Slide 29: Non-controlling interest
Non-Controlling Interest "BBVA Colombia Group 56] 58 ‘BBVA Chile Group. 310} 34 ‘BBVA Banco Continental Group a4] 913 ‘BBVA Banco Provincial Group 87| 100 ‘BBVA Banco Francés Group 203} 220 Geranti Group 6.545] 6,460 Other companies 83] 8S Total 8,13: 8,149
Slide 30: Contingent risks and commitments
Contingent risks and commitments
Slide 31: Non-controlling interest and contingent risks
Millions of euros March December Non Controlling Interest 2016 2015 BBVA Colombia Group 56 58 BBVA Chile Group 310 314 BBVA Banco Continental Group 849 913 BBVA Banco Provincial Group 87 100 BBVA Banco Francés Group 203 220 Garanti Group 6,545 6,460 Other companies 83 85 Total 8,132 8,149 Millions o
Slide 32: Off-balance sheet customer funds and interest income
Millions of Euros March December Off Balance Sheet Customer Funds by Type 2016 2015 Investment companies and mutual funds 53,147 54,419 Pension funds 31,410 31,542 Customer portfolios managed on a discretionary basis 42,907 42,074 Other resources 3,611 3,786 Total 131,076 131,822 Millions of Euros M
Slide 33: Income from equity instruments
Income from equity instruments
Slide 34: Interest expenses, dividend income and fee income
Millions of Euros March March Interest and Similar Expenses. Breakdown by Origin 2016 2015 Bank of Spain and other central banks 41 20 Deposits from credit institutions 369 214 Customers deposits 1,430 847 Debt certificates 507 442 Subordinated liabilities 127 120 Adjustments of expenses as a result
Slide 35: Gains (losses) on financial assets and liabilities
Eternia ak Gains (Losses) on Financial Assets and Liabilities ‘March Breakdown by Heading of the Balance Sheet 2016 Financial assets held for trading 109} 88 Other financial assets designated at fair value through profit or loss 10 10 Other financial instruments not designated at fair value through
Slide 36: Fee expenses and gains on financial assets
M illions of Euros March March Fee and Commission Expenses 2016 2015 Com m issions for selling insurance 15 19 Credit and debit cards 312 202 Transfers and others paym ent orders 26 19 Other fees and com m issions 120 93 Total 473 332 Millions of Euros Gains (Losses) on Financial Assets and Liabilit
Slide 37: Other operating income and expenses, personnel expenses
Millions of Euros March March Other Operating Income 2016 2015 Income on insurance and reinsurance contracts 1,029 951 Financial income from non financial services 183 156 Of Which: Real estate companies 110 109 Rest of other operating income 113 80 Of Which: from rented buildings 19 16 Total 1,326
Slide 38: Depreciation, provisions and impairment losses
Millions of Euros March March Depreciation and Amortization 2016 2015 Tangible assets 171 142 For own use 165 137 Investment properties 6 5 Assets leased out under financial lease Other Intangible assets 172 141 Total 344 282 Millions of Euros March March Provisions (Net) 2016 2015 Provisions for pe
Slide 39: Gains (losses) on non-current assets held for sale
Gains (losses) on non-current assets held for sale
Slide 40: Gains and losses on derecognized assets
Millions of Euros Gains and Losses on Derecognized Assets Not Classified as Non-current March March Assets Held for Sale 2016 2015 Gains Disposal of investments in subsidiaries 27 - Disposal of tangible assets and other 6 40 Losses: Disposal of investments in subsidiaries (2) (2) Disposal of tangibl
Slide 41: BBVA January-March 2016
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Slide 42: Results
Results Table of Contents United States, Turkey, Mexico and South America. There was a slight downturn in banking activity in Spain and the Rest of Eurasia as a result of an environment with interest rates at an all-time low. In these geographical areas, the lower yield on loans has not been offset
Slide 43: Breakdown of operating expenses and efficiency calculation
Breakdown of operating expenses and efficiency calculation (Million euros) 1Q16 D % 1Q15 Personnel expenses 1,669 14.3 1,460 Wages and salaries 1,293 15.9 1,115 Employee welfare expenses 10.3 Training expenses and other 7.2 General and administrative expenses 1,161 13.4 1,024 Premises 14.8 IT 14.9 C
Slide 44: Efficiency
Efficiency ttn exo) sou 78 . a6 ave Ecency rato Pecertage) — 1s 6
Slide 45: Number of ATMs
Number of ATMs” . rhea =o 24 ‘xe us e
Slide 46: Number of branches
Number of branches” 216 sean
Slide 47: Operating income
As a result, operating income totals €2,614m, up 4.9% on the first three months of 2015 (down 8.4% with Turkey on a comparable basis).
Slide 48: Provisions and others
Provisions and others Impairment losses on financial assets have been kept in check. In the first quarter of 2016 they amounted to €1,033m, a year-on-year rise of 0.7%. With Turkey included on a comparable basis, this item continues the declining trend that was observed in 2015, with a year-on-year
Slide 49: Profit
Profit As a result of the above, net income after tax from ongoing operations grew by 10.4% in year-on-year terms, though it fell 11.7% with Turkey on a comparable basis. The heading results from corporate operations does not include any transactions in this period. In the first quarter of 2015 it i
Slide 50: Income statement with Turkey on a comparable basis
Group information Table of Contents Evolution of the Group’s income statement with Turkey on a comparable basis To ensure comparable figures, the Group’s income statement with year-on-year rates of change taking into account Turkey on a comparable basis is presented below (to isolate the effects of
Slide 51: Balance sheet and activity highlights
• The Group’s non-performing loans have continued to decline, particularly in Spain (banking and real-estate activity). In the rest of the geographical areas, the increase is explained basically by the unfavorable impact of currencies and the increase in non-performing loans related to the energy se
Slide 52: Loans and advances to customers; customer funds
Loans and advances to customers (Million euros) 31-03-16 D % 31-12-15 31-03-15 Domestic sector 175,462 (0.4 ) 176,090 161,008 Public sector 21,114 (1.7 ) 21,471 23,106 Other domestic sectors 154,348 (0.2 ) 154,620 137,902 Secured loans 96,720 (1.2 ) 97,852 86,144 Other loans 57,628 1.5 56,768 51,758
Slide 53: Capital base and ratings
Due to these factors, combined with the other CET1 impacts, the phased-in ratio stands at 11.6%. As of January 1, 2016, the ratio is affected by what is set out in the European solvency regulations, i.e. the gradual transition in some items, the most relevant being the deductions for goodwill and in
Slide 54: Credit risks and non-performing loans
• Loan-loss provisions have fallen since the end of 2015 by 3.4% due to their decline in Spain, since in the rest of the geographical areas they are up in constant exchange-rate terms. In year-on-year terms, the increase was 24.9%, partly due to the incorporation of CX. Credit risks (1) (Million eur
Slide 55: The BBVA share
(1) The rate of change is calculated against the consolidated like-for-like figure for close of December 2015 (€40,461m). This consolidated figure includes the annual effects of the updates of the credit risk methodology and parameters at year-end (Mexico, South America, the United States, Garanti a
Slide 56: The BBVA share and share performance ratios
The BBVA share and share performance ratios 31-03-16 31-12-15 Number of shareholders 942,343 934,244 Number of shares issued 6,366,680,118 6,366,680,118 Daily average number of shares traded 64,299,971 46,641,017 Daily average trading (million euros) Maximum price (euros) 6.88 9.77 Minimum price (eu
Slide 57: The BBVA share
The BBVA share Table of Contents allocation rights at a gross fixed price of €0.129 per right during the first ten calendar days of their trading period, or on the market during the full trading period. This system seeks to optimize and customize the remuneration scheme so that shareholders can bene
Slide 58: Banking activity in Spain
Banking activity in Spain Table of Contents Financial statements and relevant business indicators (Million euros and percentage) Income statement 1Q16 D % 1Q15 Net interest income (1.2 ) Net fees and commissions 3.9 Net trading income (77.2 ) Other income/expenses 28.1 Gross income 1,560 (12.7 ) 1,7
Slide 59: Coverage of real-estate exposure in Spain
Coverage of real-estate exposure in Spain (1) (Million of euros as of 31-03-16) Risk amount Provision % Coverage over risk NPL + Substandard 6,547 3,528 NPL 5,792 3,344 Substandard Foreclosed real-estate and other assets 15,109 8,738 From real-estate developers 9,093 5,468 From dwellings 4,600 2,567
Slide 60: Business areas: macro and industry trends
Business areas Table of Contents Macro and industry trends The United States economy seems to be proceeding at a steady, albeit gradual, pace after a modest start to 2016. The most recent data points to slower growth in the first quarter, partly as a purely seasonal adjustment. Household spending ha
Slide 61: Turkey
Turkey Table of Contents Financial statements and relevant business indicators (Million euros and percentage) Income statement 1Q16 D % (1) D % (1. 2) 1Q15 Net interest income (7.9 ) 7.9 Net fees and commissions (8.8 ) 6.8 Net trading income n.m. n.m. (15 ) Other income/expenses (46.4 ) (37.2 ) Gros
Slide 62: Business areas: macro and industry trends
Business areas Table of Contents Macro and industry trends Mexico’s GDP lost steam in the second half of 2015 and this trend has probably continued into the start of 2016, given the deterioration in exports and public spending. Nevertheless, the outlook is still for growth of 2.2% in 2016, thanks to
Slide 63: South America
South America Table of Contents Financial statements and relevant business indicators (Million euros and percentage) Income statement 1Q16 D % D % (1) 1Q15 Net interest income (10.6 ) 17.0 Net fees and commissions (19.2 ) 5.2 Net trading income (10.9 ) 49.9 Other income/expenses (33 ) n.m. n.m. Gros
Slide 64: Other information: Corporate & Investment Banking
Other information: Corporate & Investment Banking Table of Contents Financial statements and relevant business indicators (Million euros and percentage) Income statement 1Q16 D % D % (1) 1Q15 Net interest income 0.8 10.1 Net fees and commissions (19.6 ) (14.8 ) Net trading income (65.9 ) (60.3 ) Oth
Slide 65: Signature
Table of Contents 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 authorized. Banco Bilbao Vizcaya Argentaria, S.A. Date: 9 May, 2016 By: María Ángeles Peláez Name:
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