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

Banco Bilbao Vizcaya Argentaria — Q1 2025 Earnings Presentation

54 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Apr 29, 2025

  1. Slide 1: 1Q25 Earnings

    BBVA 1Q25 Earnings ~~ April 29, 2025 ie

  2. Slide 2: Disclaimer

    1Q25 Earnings 2 Disclaimer This document is only provided for information purposes and is not intended to provide financial advice and, therefore, does not constitute, nor should it be interpreted as, an offer to sell, exchange or acquire, or an invitation for offers to acquire securities issued by a

  3. Slide 3: Outstanding value creation and profitability metrics

    1Q25 Earnings 3 Outstanding value creation and profitability metrics TBV + DIVIDENDS PROFITABILITY METRICS (€ / SHARE ) 1 (%) +14.1% ROTE +3.3% 20.2 9.53 9.84 8.62 0.292 0.702 9.24 9.14 ROE 19.3 Mar-24 Dec-24 Mar-25 TBV / share Dividends / share 3M24 2024 3M25 (1) Total number of shares considered: 5

  4. Slide 4: Excellent quarter in profit and capital generation

    1Q25 Earnings 4 Excellent quarter in profit and capital generation NET ATTRIBUTABLE PROFIT CET1 RATIO (CURRENT €M) (%) +22.7% +21 bps +10.9% 13.09% 12.88% Target Range 11.5%-12.0% SREP Requirement 9.13% 1Q24 4Q24 1Q25 Dec-24 Mar-25 EPS (€)1 0.36 0.40 0.45 (1) EPS calculated according to IAS33. Note:

  5. Slide 5: 1Q25 key messages

    1Q25 Earnings 5 1Q25 key messages NET INTEREST INCOME TOTAL LOAN GROWTH1 STRONG NET INTEREST INCOME 1 GROWTH DRIVEN BY ACTIVITY +8.5% vs. 1Q24 +15.1% vs. MAR 2024 CONSTANT CONSTANT NET FEES AND COMMISSIONS EXCELLENT FEE INCOME 2 EVOLUTION +19% vs. 1Q24 CONSTANT EFFICIENCY RATIO LEADING AND IMPROVING

  6. Slide 6: 1Q25 Profit & Loss

    1Q25 Earnings 6 1Q25 Profit & Loss BBVA GROUP (€M) Change Change 1Q25/1Q24 1Q25/4Q24 % % BBVA Group 1Q25 const. % const. % Net Interest Income 6,398 8 -2 2 0 Net Fees and Commissions 2,060 19 9 -3 -8 Net Trading Income 948 40 23 2 -4 Other Income & Expenses -82 n.s. n.s. n.s. n.s. Gross Income 9,324

  7. Slide 7: Remarkable core revenues growth trend

    1Q25 Earnings 7 Remarkable core revenues growth trend NET INTEREST INCOME NET FEES AND COMMISSIONS (CONSTANT €M) (CONSTANT €M) +8.5% +19.3% +1.7% NII growth driven -2.7% Excellent YoY by superb activity evolution levered and good price on payments and management in a asset management lower interest

  8. Slide 8: Activity growth in Spain and Mexico accelerates providing resilience for the future

    1Q25 Earnings 8 Activity growth in Spain and Mexico accelerates providing resilience for the future TOTAL LOAN GROWTH (YOY, CONSTANT €) TOTAL LOAN GROWTH KEY SEGMENTS (YOY, CURRENT €) (YOY MAR’25, CURRENT €) SPAIN +7.5% +8.5% BBVA GROUP Consumer + Enterprises Mar’24 Jun’24 Sep’24 Dec’24 Mar’25 Credi

  9. Slide 9: Room for healthy growth in our diversified footprint

    1Q25 Earnings 9 Room for healthy growth in our diversified footprint COUNTRIES LEVERAGE (DOMESTIC CREDIT TO PRIVATE SECTOR OVER GDP, %) DEVELOPED COUNTRIES JAP USA AUS UK FRA EURO SPA GER ITA AREA EMERGING COUNTRIES CHN CHI BRA IND TUR PER COL MEX ARG Source: World Bank. Figures as of 2023, except Pe

  10. Slide 10: Continuous core revenue growth supported by activity acceleration despite lower rates

    1Q25 Earnings 10 Continuous core revenue growth supported by activity acceleration despite lower rates CORE REVENUES NET INTEREST INCOME NET FEES (YOY, €M) (YOY, €M) (YOY, €M) +2.7% +1.2% +6.8% SPAIN 3M24 3M25 3M24 3M25 3M24 3M25 +7.3% +7.6% +5.8% MEXICO 3M24 3M25 3M24 3M25 3M24 3M25 Note: Mexico in

  11. Slide 11: Positive jaws and further improving industry-leading efficiency

    1Q25 Earnings 11 Positive jaws and further improving industry-leading efficiency POSITIVE JAWS EFFICIENCY RATIO (3M25 YOY, CONSTANT €) (COST-TO-INCOME, % CONSTANT €) FOOTPRINT -469 bps INFLATION1 16.7% 12M AVERAGE +28.2% +14.2% 38.2 Gross Operating 3M24 3M25 Income Expenses (1) Weighted by operating

  12. Slide 12: Positive asset quality evolution, ahead of expectations so far

    1Q25 Earnings 12 Positive asset quality evolution, ahead of expectations so far FINANCIAL ASSETS IMPAIRMENTS NPL (CONSTANT €M) (CURRENT €BN) 1Q24 2Q24 3Q24 4Q24 1Q25 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 COST OF RISK NPL & COVERAGE RATIOS (%, YTD) (%) COVERAGE NPL 3M24 6M24 9M24 12M24 3M25 Mar-24 Jun-2

  13. Slide 13: Robust capital position above our target, with strong quarterly improvement

    1Q25 Earnings 13 Robust capital position above our target, with strong quarterly improvement CET1 RATIO (%, BPS) +21 bps +68 bps -37 bps -30 bps +20 bps 13.09% 12.88% Target Range 11.5%-12.0% SREP Requirement 9.13% Dec -24 Results Dividend RWAs Others1 Mar -25 accrual & AT1 (constant €) coupons (1)

  14. Slide 14: Record customer acquisition driven by digital

    1Q25 Earnings 14 Record customer acquisition driven by digital NEW CUSTOMERS1 (BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) DIGITAL 66% TOTAL DIGITAL 24% 3M20 3M21 3M22 3M23 3M24 3M25 ACTIVE CLIENTS2 56.1 M 78.1 M (1) Gross customer acquisition through own channels for retail segment

  15. Slide 15: Sustainability as a business opportunity and a growth driver

    1Q25 Earnings 15 Sustainability as a business opportunity and a growth driver SUSTAINABLE BUSINESS (CHANNELING, € BILLION) BY CUSTOMER SEGMENT (€ BN) 2029 2028 NEW SUSTAINABLE BUSINESS TARGET YoY 29 +55% €700Bn 2027 2.8 Retail +85% 2026 2025 2024 19 1.5 10.8 Enterprises +58% 2023 2022 SUSTAINABLE BU

  16. Slide 16: Business Areas

    1Q25 Earnings 16 Business SPAIN Areas MEXICO TURKEY SOUTH AMERICA

  17. Slide 17: Spain

    1Q25 Earnings 17 Spain PROFIT & LOSS (€M) ACTIVITY (MAR-25) Δ (%) €Bn YoY €Bn YoY 1Q25 vs. 1Q24 vs. 4Q24 +6.6% +3.5% Net Interest Income 1,607 1.2 1.0 Net Fees and Commissions 590 6.8 -3.0 Net Trading Income 248 16.7 100.1 Mortgages +1.7% Demand Other Income & Expenses 89 n.s. 59.2 Deposits +1.9% Gr

  18. Slide 18: Mexico

    1Q25 Earnings 18 Mexico PROFIT & LOSS (CONSTANT €M) ACTIVITY (MAR-25) (CONSTANT €) €Bn YoY Δ Constant (%) Δ Current (%) €Bn YoY +15.8% 1Q25 vs. 1Q24 vs. 4Q24 vs. 1Q24 +17.2% Net Interest Income 2,767 7.6 -1.0 -7.7 Net Fees and Commissions 583 5.8 -2.3 -9.2 Mortgages +8.9% Demand Net Trading Income 2

  19. Slide 19: Turkey

    1Q25 Earnings 19 Turkey PROFIT & LOSS (CURRENT €M) ACTIVITY (MAR-25) (CONSTANT €; BANK ONLY) Δ Current (%) €Bn €Bn YoY1 1Q25 vs 1Q24 vs 4Q24 YoY1 FC +8.3% +118.2% Net Interest Income 701 152.7 23.8 +19.6% Time Net Fees and Commissions 549 29.9 -22.3 FC Net Trading Income 124 -60.9 -59.9 Demand -4.6%

  20. Slide 20: South America

    1Q25 Earnings 20 South America NET ATTRIBUTABLE PROFIT (CURRENT €M) ACTIVITY (MAR-25) (CONSTANT €) €Bn YoY €Bn +24.0% Δ Current (%) YoY 1Q25 vs. 1Q24 vs. 4Q24 +16.9% Colombia +4.2% Colombia 33 67.5 n.s. Peru 84 98.0 55.4 Colombia +2.1% Argentina 50 46.7 14.1 Other ¹ 51 122.3 70.3 Peru +14.9% South A

  21. Slide 21: Takeaways

    1Q25 Earnings 21 Takeaways Outstanding shareholder value creation and profitability metrics Another excellent quarter in profit and capital generation Remarkable core revenues evolution on the back of activity growth Industry leading efficiency levels with clear focus on costs Continued growth of the u

  22. Slide 22: Annex

    1Q25 Earnings 22 Annex 01 Net Attributable Profit CET1 Sensitivity to market 07 evolution impacts 02 Gross Income breakdown 08 RWAs by business area 03 P&L Accounts by business unit 09 Book Value of the main subsidiaries 04 Customer spread by country TBV per share & dividends 10 evolution 05 Stages b

  23. Slide 23: Net Attributable Profit evolution

    1Q25 Earnings 23 Net Attributable Profit evolution

  24. Slide 24: Business Areas Contribution to Group's NAP 1Q25 YoY growth

    1Q25 Earnings 24 Business Areas Contribution to Group's NAP 1Q25 YoY growth NET ATTRIBUTABLE PROFIT (BUSINESS AREAS CONTRIBUTION TO 1Q25 YOY GROWTH; CURRENT €M) +23% 1Q24 Spain Mexico Turkey South Rest of Corporate 1Q25 America Business Center NAP 1Q25 (€M) 1,024 1,332 158 218 173 -208 NAP growth (Y

  25. Slide 25: Gross Income breakdown

    1Q25 Earnings 25 Gross Income breakdown

  26. Slide 26: Gross Income breakdown

    1Q25 Earnings 26 Gross Income breakdown 1Q25 (€M, %) Rest of business 437 €M Spain South America 5% 2,533€M 1,438 €M 15% 27% Turkey 14% 1,267 €M 39% Mexico 3,705 €M Note: Figures exclude Corporate Center.

  27. Slide 27: P&L Accounts by business unit

    1Q25 Earnings 27 P&L Accounts by business unit Rest of Business Corporate Center Turkey (hyperinflation adjustment) Argentina (including hyperinflation adjustment) Colombia Peru

  28. Slide 28: Rest of Business - Profit & Loss

    1Q25 Earnings 28 Rest of Business - Profit & Loss PROFIT & LOSS (€M) Δ (%) 1Q25 vs 1Q24 vs 4Q24 Net Interest Income 191 21.8 -12.7 Net Fees and Commissions 137 56.0 25.5 Net Trading Income 107 14.1 27.3 Other Income & Expenses 1 76.8 -45.8 Gross Income 437 28.6 5.3 Operating Expenses -200 25.3 -18.1

  29. Slide 29: Corporate Center - Profit & Loss

    1Q25 Earnings 29 Corporate Center - Profit & Loss PROFIT & LOSS (€M) Δ (%) 1Q25 vs 1Q24 vs 4Q24 Net Interest Income -99 55.0 -43.4 Net Fees and Commissions -26 133.0 159.0 Net Trading Income 61 n.s. 10.7 Other Income & Expenses 8 55.5 -82.4 Gross Income -55 -83.1 -34.0 Operating Expenses -190 13.3 -1

  30. Slide 30: Turkey - hyperinflation adjustment

    1Q25 Earnings 30 Turkey - hyperinflation adjustment PROFIT & LOSS (€M) 1Q25 Hyperinflation 1Q25 (reported) (1) adjustment (2) Ex.Hyperinflation Net Interest Income 701 -31 732 Net Fees and Commissions 549 -26 576 Net Trading Income 124 2 121 Other Income & Expenses -107 -467 359 Gross Income 1,267 -522

  31. Slide 31: Argentina - Profit & Loss, hyperinflation adjustment

    1Q25 Earnings 31 Argentina - Profit & Loss, hyperinflation adjustment PROFIT & LOSS (€M) 1Q25 1Q25 Hyperinflation (reported) (1) adjustment (2) Ex.Hyperinflation Net Interest Income 456 -9 465 Net Fees and Commissions 89 -2 91 Net Trading Income 101 19 83 Other Income & Expenses -186 -115 -71 Gross Inco

  32. Slide 32: Colombia - Profit & Loss

    1Q25 Earnings 32 Colombia - Profit & Loss PROFIT & LOSS (€M CONSTANT) Δ (%) 1Q25 vs 1Q24 vs 4Q24 Net Interest Income 235 1.1 -2.6 Net Fees and Commissions 26 -4.0 -7.0 Net Trading Income 27 12.2 71.7 Other Income & Expenses -6 221.0 135.1 Gross Income 282 0.0 -0.2 Operating Expenses -129 -8.2 -12.3 O

  33. Slide 33: Peru - Profit & Loss

    1Q25 Earnings 33 Peru - Profit & Loss PROFIT & LOSS (€M CONSTANT) Δ (%) 1Q25 vs 1Q24 vs 4Q24 Net Interest Income 372 0.8 0.5 Net Fees and Commissions 82 -1.1 6.9 Net Trading Income 52 30.7 19.3 Other Income & Expenses -8 -23.2 12.9 Gross Income 498 3.5 3.1 Operating Expenses -190 4.3 0.6 Operating In

  34. Slide 34: Customer Spread by country

    1Q25 Earnings 34 Customer Spread by country

  35. Slide 35: Customer spreads: quarterly evolution

    1Q25 Earnings 35 Customer spreads: quarterly evolution AVERAGE 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Spain 3.44% 3.44% 3.39% 3.30% 3.19% Turkey TL -0.74% -0.02% -0.33% 0.55% 1.46% Yield on Loans 4.35% 4.30% 4.25% 4.13% 3.85% Yield on Loans 33.02% 36.86% 38.47% 38.20% 37.76% Cost of Depos

  36. Slide 36: Stages breakdown by business areas

    1Q25 Earnings 36 Stages breakdown by business areas

  37. Slide 37: Stages breakdown by business areas

    1Q25 Earnings 37 Stages breakdown by business areas CREDIT RISK BUSINESS BREAKDOWN BY AREA (MAR-25, € M) Gross Accumulated Gross Accumulated Gross Accumulated BBVA GROUP Exposure impairments SPAIN Exposure impairments MEXICO Exposure impairments Stage 1 447,804 2,409 Stage 1 190,175 504 Stage 1 85,7

  38. Slide 38: ALCO Portfolio, NII Sensitivity and LCRs & NSFRs

    1Q25 Earnings 38 ALCO Portfolio, NII Sensitivity and LCRs & NSFRs

  39. Slide 39: ALCO Portfolio

    1Q25 Earnings 39 ALCO Portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value (HTC) (HTC&S) (duration incl. Mar-25 (€BN) (€BN) hedges) South America 0.3 6.8 1.5 years Turkey 6.2 3.3 4.4 years Mexico 4.1 11.4 2.9 years Euro 41.1 9.4 3.7 years (1) Spain 31.3 3.4 Italy 2.9 4.1 Rest 6.

  40. Slide 40: NII sensitivity to interest rates movements

    1Q25 Earnings 40 NII sensitivity to interest rates movements ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST RATE MOVEMENTS (TO +/-100 BPS INTEREST RATES MOVEMENT, %) + -4% + -2.4% EURO BALANCE MEXICO SHEET Note: NII sensitivities to parallel interest rates movements as of Mar’25

  41. Slide 41: Liquidity and funding ratios

    1Q25 Earnings 41 Liquidity and funding ratios BBVA GROUP AND SUBSIDIARIES LCR & NSFR (MAR-25) LCR NSFR Loan To Total Group 165% / 138%1 127% Deposit BBVA, S.A. 168% 119% 91% Mexico 162% 132% 102% 2 Turkey 131% 157% 76% S. America 94% All countries >100% >100% (1) Using a more restrictive criterion o

  42. Slide 42: CET1 Sensitivity to market impacts

    1Q25 Earnings 42 CET1 Sensitivity to market impacts

  43. Slide 43: CET1 Sensitivity to Market Impacts

    1Q25 Earnings 43 CET1 Sensitivity to Market Impacts1 TO A 10% CURRENCY DEPRECIATION2 TO A 10% DECLINE IN TELEFONICA’S (MAR-25) SHARE PRICE (MAR-25) MXN -9bps TRY -4bps -2 bps USD +17bps TO +100 BPS MOVEMENT IN THE TO +100 BPS MOVEMENT IN THE MEXICAN SOVEREIGN BOND SPANISH SOVEREIGN BOND (MAR-25) (MA

  44. Slide 44: Evolution of RWAs by business area

    1Q25 Earnings 44 Evolution of RWAs by business area

  45. Slide 45: Risk-weighted assets by business area

    1Q25 Earnings 45 Risk-weighted assets by business area Fully-Loaded RWAs Δ (%) Breakdown by business area (€M) Mar-24 Dec-24 Mar-25 vs. Mar-24 vs. Dec-24 Spain 119,976 120,661 121,219 1.0% 0.5% Mexico 97,517 92,925 87,158 -10.6% -6.2% Turkey 58,558 64,821 65,961 12.6% 1.8% South America 52,360 56,48

  46. Slide 46: Book Value of the main subsidiaries

    1Q25 Earnings 46 Book Value of the main subsidiaries

  47. Slide 47: Book Value of the main subsidiaries

    1Q25 Earnings 47 Book Value of the main subsidiaries1,2 € BN; MAR-25 Δ (%) QoQ Mexico 18.8 -6.6% Turkey 7.4 -7.5% Colombia 2.0 +1.1% Argentina 1.6 -1.4% Peru 1.5 -2.9% Uruguay 0.3 +6.2% Chile 0.3 +2.4% Venezuela 0.1 +0.8% (1) Includes the initial investment + BBVA’s undistributed results + FX impact

  48. Slide 48: TBV per share & dividends evolution

    1Q25 Earnings 48 TBV per share & dividends evolution

  49. Slide 49: Shareholders' returns: TBV per share & dividends evolution

    1Q25 Earnings 49 Shareholders’ returns: TBV per share & dividends evolution TBV PER SHARE & DIVIDENDS (€ PER SHARE(1)) TBV Dividends +14% (2) (2) (2) (1) Total number of shares considered: 5,751m as of March ‘25, 5,757m as of December’24, 5,752m as of September-24 and June-24, and 5,751m as of March

  50. Slide 50: MREL

    1Q25 Earnings 50 MREL

  51. Slide 51: Sound MREL position

    1Q25 Earnings 51 Sound MREL position POSITION AS OF MAR-25 (% RWA1) MREL REQUIREMENT + CBR SUBORDINATION REQUIREMENT + CBR 33.20% 27.70% 26.44% CBR: 3.65% 3 17.15% 3 CBR: 3.65% MREL 22.79% Subordination 13.50% 2 2 M-MDA Buffer 677 bps (13.4€bn) Subordination Buffer 1.055 bps (20.9€bn) Note: Prelimin

  52. Slide 52: Digital metrics

    1Q25 Earnings 52 Digital metrics

  53. Slide 53: Digital metrics mobile customers & digital sales

    1Q25 Earnings 53 Digital metrics mobile customers & digital sales MOBILE CUSTOMERS DIGITAL SALES - UNITS (MILLION CUSTOMERS, %) % OF TOTAL SALES YTD, # OF TRANSACTIONS) +22% DIGITAL SALES - PRV2 % OF TOTAL SALES YTD, PRV) CUSTOMER PENETRATION RATE1 71.3% 73.6% 76.0% (1) Mobile over active customers.

  54. Slide 54: BBVA

    BBVA

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