59 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Oct 31, 2024
Slide 1: 3Q24 Earnings
3Q24 Earnings October 31, 2024
Slide 2: Disclaimer
3Q24 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
Slide 3: BBVA reports another very strong quarter
3Q24 Earnings 3 BBVA reports another very strong quarter NET ATTRIBUTABLE PROFIT TBV + DIVIDENDS (CURRENT €M) (€ / SHARE2) +26% +16% -6.0% +2.6% 9.23 9.47 8.13 0.393 0.683 8.84 8.79 3Q23 2Q24 3Q24 Sep-23 Jun-24 Sep-24 EPS (€)1 0.33 0.47 0.44 TBV / share Dividends / share (2) Total number of shares c
Slide 4: Solid capital position and record profitability metrics
3Q24 Earnings 4 Solid capital position and record profitability metrics CET1 RATIO PROFITABILITY METRICS (%) (%) +9bps 20.1 ROTE 12.84% 12.75% 14.5 SPANISH PEERS (1) 13.7 EUROPEAN PEERS (2) Target Range 11.5%-12.0% SREP Requirement 9.13% 19.2 ROE Jun-24 Sep-24 9M23 2023 9M24 (1) Spanish Peer Group: B
Slide 5: 3Q24 key messages
3Q24 Earnings 5 3Q24 key messages NET INTEREST INCOME TOTAL LOAN GROWTH1 NET INTEREST INCOME +3.5% +0.0% 1 CONSTANT CONSTANT +11.0% DRIVEN BY ACTIVITY +3.7% EX- ARGENTINA CONSTANT vs. 3Q23 vs. 2Q24 vs. SEP 2023 NET FEES AND COMMISSIONS 2 OUTSTANDING FEE INCOME +28% +8.1% EVOLUTION CONSTANT CONSTANT
Slide 6: 3Q24 Profit & Loss
3Q24 Earnings 6 3Q24 Profit & Loss BBVA GROUP (€M) Change Change 3Q24/3Q23 3Q24/2Q24 % % BBVA Group (€M) 3Q24 const. % const. % Net Interest Income 5,868 4 -9 0 -9 Net Fees and Commissions 1,912 28 13 8 -2 Net Trading Income 1,044 97 59 3 -6 Other Income & Expenses -107 -95 -87 -85 -67 Gross Income 8
Slide 7: 9M24 Profit & Loss
3Q24 Earnings 7 9M24 Profit & Loss BBVA GROUP (€M) Change 9M24/9M23 % 9M24 const. % Net Interest Income 18,861 14 6 Net Fees and Commissions 5,754 32 25 Net Trading Income 2,930 146 105 Other Income & Expenses -1,383 -28 -22 Gross Income 26,161 29 18 Operating Expenses -10,189 17 10 Operating Income
Slide 8: Excellent revenue growth following a remarkable trend
3Q24 Earnings 8 Excellent revenue growth following a remarkable trend NET INTEREST INCOME NET FEES AND COMMISSIONS (CONSTANT €M) (CONSTANT €M) +3.5% +28% +0.0% +8.1% NII growth driven Outstanding fee by activity and income evolution customer spreads levered on across the board, payments and except f
Slide 9: Activity growth in Spain and Mexico provide resiliency for the future
3Q24 Earnings 9 Activity growth in Spain and Mexico provide resiliency for the future LOANS CUSTOMER FUNDS TOTAL GROWTH KEY SEGMENTS TOTAL GROWTH OFF BALANCE SHEET (YOY, CURRENT €) (YOY SEP-24, CURRENT €) (YOY, CURRENT €) (YOY SEP-24, CURRENT €) +13.7% SPAIN +6.3% +4.6% +5.1% +2.6% +1.5% -1.8% Consu
Slide 10: Continuous core revenue growth supported by activity acceleration
3Q24 Earnings 10 Continuous core revenue growth supported by activity acceleration NET INTEREST INCOME NET FEES AND COMMISSIONS (CURRENT €M) (CURRENT €M) +7.3% +11% +0.5% -2.1% SPAIN 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 NET INTEREST INCOME NET FEES AND COMMISSIONS (CONSTANT €M) (CONSTANT €M) +8.3% +6.6% ME
Slide 11: Cost control leading to widened jaws and further improving industry-leading efficiency
3Q24 Earnings 11 Cost control leading to widened jaws and further improving industry-leading efficiency POSITIVE JAWS EFFICIENCY RATIO (9M24 YOY, CONSTANT €) (COST-TO-INCOME, % CONSTANT €) FOOTPRINT -429 bps INFLATION1 21.1% +29.4% 12M AVERAGE +16.6% 38.9 Gross Operating 9M23 9M24 Income Expenses (1)
Slide 12: Asset quality metrics remain stable and within expectations
3Q24 Earnings 12 Asset quality metrics remain stable and within expectations FINANCIAL ASSETS IMPAIRMENTS NPL (CONSTANT €M) (CURRENT €BN) 3Q23 4Q23 1Q24 2Q24 3Q24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 COST OF RISK NPL & COVERAGE RATIOS (%, YTD) (%) COVERAGE NPL 9M23 12M23 3M24 6M24 9M24 Sep-23 Dec-23 M
Slide 13: Sound capital position above our target
3Q24 Earnings 13 Sound capital position above our target CET1 RATIO (%, BPS) +9bps +69 bps -37 bps -48 bps +25 bps 12.84% 12.75% Target Range 11.5%-12.0% SREP Requirement 9.13% Results Dividend RWAs Others1 Sep -24 Jun -24 accrual & AT1 (constant €) coupons OCTOBER INTERIM DIVIDEND € 1,671 M ; € 29
Slide 14: Excellent customer acquisition driven by digital
3Q24 Earnings 14 Excellent customer acquisition driven by digital NEW CUSTOMERS1 (BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) DIGITAL 67% TOTAL DIGITAL 20% 9M19 9M20 9M21 9M22 9M23 9M24 ACTIVE CLIENTS2 55.3 M 76.9 M (1) Gross customer acquisition through own channels for retail segm
Slide 15: Further advancing in sustainable business
3Q24 Earnings 15 Further advancing in sustainable business SUSTAINABLE BUSINESS (€ BILLION, ACCUMULATED DATA SINCE 2018) BY SEGMENT €71 Bn (€ BN) channeled in 9M24 Current target (2022) €276 Bn 300 €Bn YoY growth Channeled since 2018 71 +44% Revised target 9.3 Retail +41% (2021) 200 €Bn 49 6.6 23.8
Slide 16: We will clearly outperform our ambitious 2021-2024 goals
3Q24 Earnings 16 We will clearly outperform our ambitious 2021-2024 goals COST-TO-INCOME ROTE1 TBV + DIVIDENDS (%) (%, ANNUALIZED) (€/SHARE, %) CAGR 2021-9M24 2021-24 CAGR 9M 9M 9M NEW TARGET CUSTOMERS2 SUSTAINABLE BUSINESS (MILLION CUMULATIVE) (€ BILLION, CUMULATIVE SINCE 2018) GOAL Current target
Slide 17: Business Areas
3Q24 Earnings 17 Business SPAIN Areas MEXICO TURKEY SOUTH AMERICA
Slide 18: Spain
3Q24 Earnings 18 Spain PROFIT & LOSS (€M) ACTIVITY (SEP-24) Δ (%) Δ (%) €Bn YoY €Bn YoY 3Q24 vs. 3Q23 vs. 2Q24 9M24 vs. 9M23 +1.5% +6.3% Net Interest Income 1,620 7.3 0.5 4,831 19.2 Net Fees and Commissions 566 11.1 -2.1 1,711 6.7 Net Trading Income 209 130.1 37.4 567 83.7 Mortgages +1.2% Other Inco
Slide 19: Mexico
3Q24 Earnings 19 Mexico PROFIT & LOSS (CONSTANT €M) ACTIVITY (SEP-24) (CONSTANT €) €Bn YoY Δ Constant (%) Δ Current (%) Δ Constant (%) €Bn YoY +15.4% 3Q24 vs. 3Q23 vs. 2Q24 9M24 vs. 9M23 vs. 9M23 +12.3% Net Interest Income 3,035 8.3 6.2 8,762 7.3 7.3 Net Fees and Commissions 628 6.6 4.0 1,846 13.6 1
Slide 20: Turkey
3Q24 Earnings 20 Turkey PROFIT & LOSS (CURRENT €M) ACTIVITY (SEP-24) Δ Current (%) Δ Current (%) (CONSTANT €; BANK ONLY) €Bn YoY1 3Q24 vs 3Q23 vs 2Q24 9M24 vs. 9M23 €Bn FC -3.0% YoY 1 Time -35.2% Net Interest Income 320 -46.7 -2.2 925 -41.5 Net Fees and Commissions 499 44.9 3.6 1,404 122.9 Net Tradi
Slide 21: South America
3Q24 Earnings 21 South America NET ATTRIBUTABLE PROFIT (CURRENT €M) ACTIVITY (SEP-24) (CONSTANT €) €Bn YoY Δ Current (%) Δ Current (%) €Bn +26.2% YoY 3Q24 vs. 3Q23 vs. 2Q24 9M24 vs. 9M23 +13.7% Colombia 34 85.9 -6.4 91 -18.9 Colombia +7.7% Peru 63 47.3 -7.3 173 14.2 Colombia +0.8% Argentina 35 -3.4
Slide 22: We are optimistic going forward
3Q24 Earnings 22 We are optimistic going forward HEALTHY LOAN GROWTH MANAGED STRUCTURAL RISKS TOTAL LOAN GROWTH LOAN MARKET SHARE PROACTIVE HEDGING POLICIES (YOY SEP-24 CONSTANT €) (AUG-24, YOY INCREASE) NII SENSITIVITY 4% vs. >10% in 4Q22 +1.5% 13.9% +35 bps +12.3% 25.1% +51 bps NII SENSITIVITY 2.5
Slide 23: Takeaways
3Q24 Earnings 23 Takeaways BBVA once again Industry leading We will clearly reports a very efficiency levels with outperform our strong quarter continued focus on ambitious 2021-24 goals costs Outstanding Significant progress in We are optimistic shareholder value the execution of our going forward cr
Slide 24: Annex
3Q24 Earnings 24 Annex 01 Net Attributable Profit CET1 Sensitivity to market 07 evolution impacts 02 Gross Income breakdown 08 CET1 evolution YtD & 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
Slide 25: Net Attributable Profit evolution
3Q24 Earnings 25 Net Attributable Profit evolution
Slide 26: Business Areas Contribution to Group's NAP 3Q24 YoY growth
3Q24 Earnings 26 Business Areas Contribution to Group's NAP 3Q24 YoY growth NET ATTRIBUTABLE PROFIT (BUSINESS AREAS CONTRIBUTION TO 3Q24 YOY GROWTH; CURRENT €M) +26% 3Q23 Spain Mexico Turkey South Rest of Corporate 3Q24 America Business Center NAP 3Q24 (€M) 1,076 1,335 82 155 167 -187 NAP growth (Yo
Slide 27: Business Areas Contribution to Group's NAP 9M24 YoY growth
3Q24 Earnings 27 Business Areas Contribution to Group's NAP 9M24 YoY growth NET ATTRIBUTABLE PROFIT (BUSINESS AREAS CONTRIBUTION TO 9M24 YOY GROWTH; CURRENT €M) +28% 9M23 Spain Mexico Turkey South Rest of Corporate 9M24 America Business Center NAP 9M24 (€M) 2,866 4.193 433 471 402 -744 NAP growth (Y
Slide 28: Gross Income breakdown
3Q24 Earnings 28 Gross Income breakdown
Slide 29: Gross Income breakdown
3Q24 Earnings 29 Gross Income breakdown 9M24 (€M, %) Rest of business 1,048 €M Spain South America 4% 7,103€M 3,865 €M 14% 27% Turkey 11% 2,838 €M 44% Mexico 11,641 €M Note: Figures exclude Corporate Center.
Slide 30: P&L Accounts by business unit
3Q24 Earnings 30 P&L Accounts by business unit Rest of Business Corporate Center Turkey (hyperinflation adjustment) Argentina (including hyperinflation adjustment) Colombia Peru
Slide 31: Rest of Business - Profit & Loss
3Q24 Earnings 31 Rest of Business - Profit & Loss PROFIT & LOSS (€M) Δ (%) Δ (%) 3Q24 vs 3Q23 vs 2Q24 9M24 vs 9M23 Net Interest Income 188 29.6 6.1 523 29.1 Net Fees and Commissions 81 36.2 14.9 219 14.1 Net Trading Income 100 29.4 8.3 304 21.3 Other Income & Expenses -1 n.s. n.s. 1 -64.7 Gross Incom
Slide 32: Corporate Center - Profit & Loss
3Q24 Earnings 32 Corporate Center - Profit & Loss PROFIT & LOSS (€M) Δ (%) Δ (%) 3Q24 vs 3Q23 vs 2Q24 9M24 vs 9M23 Net Interest Income -158 40.2 26.2 -359 41.8 Net Fees and Commissions -12 18.8 -37.1 -36 -9.8 Net Trading Income 133 n.s. -35.1 68 n.s. Other Income & Expenses 5 n.s. n.s. -6 n.s. Gross
Slide 33: Turkey - hyperinflation adjustment
3Q24 Earnings 33 Turkey - hyperinflation adjustment PROFIT & LOSS (€M) 9M24 Hyperinflation 9M24 (reported) (1) adjustment (2) Ex.Hyperinflation Net Interest Income 925 23 903 Net Fees and Commissions 1,404 29 1,375 Net Trading Income 836 27 809 Other Income & Expenses -328 -1,398 1,071 Gross Income 2,
Slide 34: Argentina - Profit & Loss, hyperinflation adjustment
3Q24 Earnings 34 Argentina - Profit & Loss, hyperinflation adjustment PROFIT & LOSS (€M) Δ (%) 9M24 Hyperinflation 9M24 3Q24 vs 3Q23 vs 2Q24 (reported) (1) adjustment (2) Ex.Hyperinflation Net Interest Income 431 -41.2 -46.4 2,098 227 1,871 Net Fees and Commissions 69 59.7 -1.2 196 13 183 Net Trading In
Slide 35: Colombia - Profit & Loss
3Q24 Earnings 35 Colombia - Profit & Loss PROFIT & LOSS (€M CONSTANT) Δ (%) Δ (%) 3Q24 vs 3Q23 vs 2Q24 9M24 vs 9M23 Net Interest Income 245 17.3 -3.5 736 20.6 Net Fees and Commissions 28 -0.1 -15.1 90 -2.1 Net Trading Income 38 n.s. 64.9 86 31.0 Other Income & Expenses -1 -87.8 -67.2 -7 -38.5 Gross I
Slide 36: Peru - Profit & Loss
3Q24 Earnings 36 Peru - Profit & Loss PROFIT & LOSS (€M CONSTANT) Δ (%) Δ (%) 3Q24 vs 3Q23 vs 2Q24 9M24 vs 9M23 Net Interest Income 345 4.0 -2.9 1,052 10.4 Net Fees and Commissions 72 7.8 -9.3 232 8.1 Net Trading Income 49 -0.3 -36.2 164 15.4 Other Income & Expenses -11 8.0 42.0 -29 -10.2 Gross Incom
Slide 37: Customer Spread by country
3Q24 Earnings 37 Customer Spread by country
Slide 38: Customer spreads: quarterly evolution
3Q24 Earnings 38 Customer spreads: quarterly evolution AVERAGE 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Spain 3.33% 3.42% 3.44% 3.44% 3.39% Turkey TL 0.51% 0.38% -0.74% -0.02% -0.33% Yield on Loans 4.01% 4.28% 4.35% 4.30% 4.25% Yield on Loans 20.20% 28.49% 33.02% 36.86% 38.47% Cost of Depos
Slide 39: Customer spreads: YtD evolution
3Q24 Earnings 39 Customer spreads: YtD evolution AVERAGE 9M23 9M24 9M23 9M24 Spain 3.06% 3.42% Turkey TL 1.41% -0.34% Yield on Loans 3.59% 4.30% Yield on Loans 18.00% 36.29% Cost of Deposits -0.53% -0.88% Cost of Deposits -16.59% -36.64% 1 Mexico MXN 12.66% 12.45% Turkey FC 8.86% 9.08% Yield on Loan
Slide 40: Stages breakdown by business areas
3Q24 Earnings 40 Stages breakdown by business areas
Slide 41: Stages breakdown by business areas
3Q24 Earnings 41 Stages breakdown by business areas CREDIT RISK BUSINESS BREAKDOWN BY AREA (SEP-24, € M) Gross Accumulated Gross Accumulated Gross Accumulated BBVA GROUP Exposure impairments SPAIN Exposure impairments MEXICO Exposure impairments Stage 1 407,658 2,083 Stage 1 174,455 462 Stage 1 79,6
Slide 42: ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
3Q24 Earnings 42 ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
Slide 43: ALCO Portfolio
3Q24 Earnings 43 ALCO Portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value (HTC) (HTC&S) (duration Sep-24 (€BN) (€BN) incl. hedges) South America 0.3 6.1 1.4 years Turkey 6.5 2.5 4.1 years Mexico 4.5 10.2 2.8 years Euro 35.1 11.1 2.4 years (1) Spain 29.3 4.8 Italy 2.9 4.1 Rest 2
Slide 44: NII sensitivity to interest rates movements
3Q24 Earnings 44 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% + -2.5% EURO BALANCE MEXICO SHEET Note: NII sensitivities to parallel interest rates movements as of Sep’24
Slide 45: Liquidity and funding ratios
3Q24 Earnings 45 Liquidity and funding ratios BBVA GROUP AND SUBSIDIARIES LCR & NSFR (SEP-24) LCR NSFR Loan To Total Group 184% / 150%1 130% Deposit BBVA, S.A. 180% 122% 87% Mexico 154% 130% 105% 2 Turkey 167% 157% 81% S. America 92% All countries >100% >100% (1) Using a more restrictive criterion o
Slide 46: CET1 Sensitivity to market impacts
3Q24 Earnings 46 CET1 Sensitivity to market impacts
Slide 47: CET1 Sensitivity to Market Impacts
3Q24 Earnings 47 CET1 Sensitivity to Market Impacts1 TO A 10% CURRENCY DEPRECIATION2 TO A 10% DECLINE IN TELEFONICA’S (OCT-24) SHARE PRICE (SEP-24) MXN -9bps TRY -4bps -2 bps USD +18bps TO +100 BPS MOVEMENT IN THE TO +100 BPS MOVEMENT IN THE MEXICAN SOVEREIGN BOND SPANISH SOVEREIGN BOND (SEP-24) (SE
Slide 48: CET1 evolution YtD & RWAs by business area
3Q24 Earnings 48 CET1 evolution YtD & RWAs by business area
Slide 49: Capital YtD evolution
3Q24 Earnings 49 Capital YtD evolution CET1 RATIO – BBVA GROUP YTD EVOLUTION (%, BPS) 1 1) Includes, among others, FX and mark to market of HTC&S portfolios, minority interests, and a positive impact in OCI equivalent to the Net Monetary Position value loss in hyperinflationary economies registered i
Slide 50: Risk-weighted assets by business area
3Q24 Earnings 50 Risk-weighted assets by business area Fully-Loaded RWAs Δ (%) Breakdown by business area (€M) Sep-23 Jun-24 Sep-24 vs. Sep-23 vs. Jun-24 Spain 117,109 121,668 123,356 5.3% 1.4% Mexico 88,290 94,157 87,381 -1.0% -7.2% Turkey 53,056 62,037 61,394 15.7% -1.0% South America 50,255 52,33
Slide 51: Book Value of the main subsidiaries
3Q24 Earnings 51 Book Value of the main subsidiaries
Slide 52: Book Value of the main subsidiaries
3Q24 Earnings 52 Book Value of the main subsidiaries1,2 € BN; SEP-24 Δ (%) QoQ Mexico 18.7 -3.4% Turkey 7.2 -0.8% Colombia 1.9 -1.2% Argentina 1.5 +2.1% Peru 1.5 +5.2% Uruguay 0.3 -2.8% Chile 0.3 +3.0% Venezuela 0.1 -6.3% (1) Includes the initial investment + BBVA’s undistributed results + FX impact
Slide 53: TBV per share & dividends evolution
3Q24 Earnings 53 TBV per share & dividends evolution
Slide 54: Shareholders' returns: TBV per share & dividends evolution
3Q24 Earnings 54 Shareholders’ returns: TBV per share & dividends evolution TBV PER SHARE & DIVIDENDS (€ PER SHARE(1)) TBV Dividends +16% (2) (2) (2) (1) Total number of shares considered: 5,752m as of September-24 and June-24; 5,751m as of March-24 post-SBB execution, 5,834m as of December-23 and 5
Slide 55: MREL
3Q24 Earnings 55 MREL
Slide 56: Sound MREL position
3Q24 Earnings 56 Sound MREL position POSITION AS OF SEP-24 (% RWA1) MREL REQUIREMENT + CBR SUBORDINATION REQUIREMENT + CBR 28.82% 22.88% 26.44% CBR: 3.65% 3 17.15% 3 CBR: 3.65% MREL 22.79% Subordination 13.50% 2 2 M-MDA Buffer 238 bps (5.2€bn) Subordination Buffer 573 bps (12.4€bn) Note: Preliminary
Slide 57: Digital metrics
3Q24 Earnings 57 Digital metrics
Slide 58: Digital metrics mobile customers & digital sales
3Q24 Earnings 58 Digital metrics mobile customers & digital sales MOBILE CUSTOMERS DIGITAL SALES - UNITS (MILLION CUSTOMERS, %) % OF TOTAL SALES YTD, # OF TRANSACTIONS) +24% DIGITAL SALES - PRV2 % OF TOTAL SALES YTD, PRV) CUSTOMER PENETRATION RATE1 68.2% 71.6% 74.1% (1) Mobile over active customers.
Slide 59: BBVA
BBVA