Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q1 2019 Earnings Presentation
45 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Apr 30, 2019
Slide 1: 1Q19 Results
1Q19 Results April 29th, 2019
Slide 2: Disclaimer
1Q19 Results 2 April 29th 2019 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 decisi
Slide 3: Strong value creation and resilient capital position
1Q19 Results 3 April 29th 2019 Strong value creation and resilient capital position Net Attributable Profit (€m) 1,787 633 1,290 1,245 BBVA Chile sale 1,164 1,001 1Q18 2Q18 3Q18 4Q18 1Q19 TBV/Share + Dividends (€/sh.) +11% vs Mar18 +4% 6.10 0.16 5.86 Dividends 5.94 Dec-18 Mar-19 CET1 fully-loaded (%
Slide 4: 1Q19 Highlights
1Q19 Results 4 April 29th 2019 1Q19 Highlights 01 Core revenue growth 02 Outstanding operating income and efficiency 03 Sound risk indicators 04 Resilient capital position 05 Focus on shareholder value 06 Outstanding trend in digital sales and customers NII + FEES (€ constant) +8.0% vs. 1Q18 OPERATI
Slide 5: 1Q19 Profit & Loss
1Q19 Results 5 April 29th 2019 1Q19 Profit & Loss Change 1Q19/1Q18 BBVA Group 1Q19 % % constant (€m) Net Interest Income 4,420 5.8 9.5 Net Fees and Commissions 1,214 -0.6 2.6 Net Trading Income 426 8.7 13.5 Other Income & Expenses 8 -90.8 -89.6 Gross Income 6,069 3.3 7.0 Operating Expenses -2,922 0.
Slide 6: Core Revenue Growth
1Q19 Results 6 April 29th 2019 Core Revenue Growth Net Interest Income (€m constant) +9.5% Good 4,728 4,488 4,420 performance 4,036 4,165 CPI in most Linkers geographies 1Q18 2Q18 3Q18 4Q18 1Q19 Net Trading Income (€m constant) +13.5% Positive impact from the sale of 426 Prisma stake in 375 313 Arge
Slide 7: Outstanding Operating Income and Efficiency
1Q19 Results 7 April 29th 2019 Outstanding Operating Income and Efficiency Group Operating Jaws (YoY (%); (€ constant)) INFLATION 6.1% Average 12m 8.0% 3.7% Core Operating Revenues expenses Group Operating Income (YoY (%); (€m constant)) +10.2% 3,147 2,855 1Q18 1Q19 Efficiency Ratio (%; € constant)
Slide 8: Sound risk indicators
1Q19 Results 8 April 29th 2019 Sound risk indicators Financial Assets Impairments (€m constant) +31.4% 1,351 1,032 1,023 779 Impacted by 762 IFRS9 macro adjustment 1Q18 2Q18 3Q18 4Q18 1Q19 NPLs (€bn) - 1.8 € bn 19.1 19.3 17.7 17.1 17.3 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Cost of risk (%) 1.36% 1.06%
Slide 9: Resilient capital position
1Q19 Results 9 April 29th 2019 Resilient capital position CET1 fully-loaded - BBVA Group YtD Evolution (%, bps) +1 bps +12 bps 33 bps 11.34% 11.23% 11.35% -6 bps -11 bps -15 bps Dec-18 IFRS16 Dec.18 Net Dividends & AT1 Others* Mar-19 impact proforma Earnings coupons (*) Others includes RWAs evolutio
Slide 10: Focus on shareholder value
1Q19 Results 10 April 29th 2019 Focus on shareholder value TBV per Share & Dividends (€ per Share) +11% +4% 6.20 5.80 5.96 5.60 5.65 0.26 Dividends 0.10 0.10 5.94 5.86 5.70 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 2018 Figures include BBVA Chile recurrent operations (sale closed on July 6th). Leading prof
Slide 11: The impact of transformation
1Q19 Results 11 April 29th 2019 The impact of transformation GROWTH Digital driving growth ACTIVE CLIENTS GROWTH (# OF CLIENTS, BBVA GROUP) +4.6 million in the last 2 years ENGAGEMENT AND TRANSACTIONALITY Being in the cash flow of our clients HIGHER ENGAGEMENT AND CROSS SELL (# MULTIPRODUCT CUSTOMER
Slide 12: Growing in digital and mobile customers, leading to an outstanding trend in digital sales
1Q19 Results 12 April 29th 2019 Growing in digital and mobile customers, leading to an outstanding trend in digital sales Digital Customers (Mn, % growth) +28% +17% 28.4 24.2 19.0 Mar-17 Mar-18 Mar-19 PENETRATION PENETRATION PENETRATION 38% 46% 53% Mobile Customers (Mn, % growth) +47% +25% 24.4 19.5
Slide 13: Differentiating through digital
1Q19 Results 13 April 29th 2019 Differentiating through digital Availability of products through App BBVA 83% Peer 1 65% Peer 2 64% Peer 3 62% Peer 4 60% Peer 5 50% Peer 6 49% Peer 7 35% Peer 8 34% Solutions provided by our App SALES SERVICE ADVICE Source: Management Solutions report – Mobile Bankin
Slide 14: Business Areas
BBVA Business Areas
Slide 15: Spain Profit & Loss
1Q19 Results 15 April 29th 2019 Spain Profit & Loss Ä (%) Ä (%) (€m) 1Q19 vs 1Q18 vs 4Q18 Net Interest Income 882 -4.9 -4.5 Net Fees and Commissions 414 0.3 0.6 Net Trading Income 108 -35.2 -47.3 Other Income & Expenses 94 14.0 n.s. Gross Income 1,497 -5.7 1.6 Operating Expenses -814 -3.5 -0.3 Opera
Slide 16: USA Profit & Loss
1Q19 Results 16 April 29th 2019 USA Profit & Loss Ä Constant Ä Current Ä Constant (€m) 1Q19 vs 1Q18 (%) vs 1Q18 (%) vs 4Q18 (%) Net Interest Income 615 8.4 17.4 0.0 Net Fees and Commissions 151 -5.7 2.1 1.9 Net Trading Income 41 54.0 67.3 1.7 Other Income & Expenses -3 n.s. n.s. n.s. Gross Income 80
Slide 17: Mexico Profit & Loss
1Q19 Results 17 April 29th 2019 Mexico Profit & Loss Ä Constant Ä Current Ä Constant (€m) 1Q19 vs 1Q18 (%) vs 1Q18 (%) vs 4Q18 (%) Net Interest Income 1,500 7.8 13.9 -0.8 Net Fees and Commissions 300 1.2 6.9 -4.8 Net Trading Income 63 -12.3 -7.4 147.6 Other Income & Expenses 40 -15.9 -11.1 -42.0 Gro
Slide 18: Turkey Profit & Loss
1Q19 Results 18 April 29th 2019 Turkey Profit & Loss Ä Constant Ä Current Ä Constant (€m) 1Q19 vs 1Q18 (%) vs 1Q18 (%) vs 4Q18 (%) Net Interest Income 695 20.2 -7.7 -26.2 Net Fees and Commissions 194 25.8 -3.4 10.2 Net Trading Income -11 n.s. n.s. -39.1 Other Income & Expenses 6 -66.8 -74.5 -69.8 Gr
Slide 19: South America
1Q19 Results 19 April 29th 2019 South America (1) Net Attributable Profit Ä Constant(1) Ä Current Ä Constant(1) (€m) 1Q19 vs 1Q18 (%) vs 1Q18 (%) vs 4Q18 (%) Colombia 58 -5.0 -6.4 21.2 Peru 43 15.1 21.3 -36.2 Argentina 60 n.s. n.s. n.s. Other 2 32 15.4 11.9 -10.9 South America 193 86.5 50.9 73.5 (1)
Slide 20: Final remarks
Final remarks 01 Double digit operating income growth driven by core revenues and continued efficiency improvement 02 Resilient capital position, absorbing the full impact of IFRS16 03 Strong value creation and leading double-digit profitability 04 Transformation positively impacting growth, transac
Slide 21: Annex
1Q19 Results 21 April 29th 2019 Annex 01 Customer spread by country 02 Gross Income breakdown 03 Net Attributable Profit evolution 04 P&L accounts by business unit 05 Argentina: hyperinflation adjustment 06 ALCO portfolio & LCRs 07 Garanti: wholesale funding 08 RWA by business area 09 Book Value of
Slide 22: Customer spread by country
01 Customer spread by country
Slide 23: Customer spreads: Quarterly evolution
1Q19 Results 23 April 29th 2019 Customer spreads: Quarterly evolution Average 1Q18 2Q18 3Q18 4Q18 1Q19 Spain 1.94% 1.94% 1.93% 1.95% 1.96% Yield on Loans 2.01% 2.01% 2.01% 2.03% 2.04% Cost of Deposits -0.07% -0.07% -0.08% -0.08% -0.07% USA 3.86% 3.97% 3.99% 4.09% 4.19% Yield on Loans 4.31% 4.51% 4.6
Slide 24: Gross Income breakdown
BBVA Creating Opportunities 02 Gross Income breakdown
Slide 25: Gross Income breakdown
1Q19 Results 25 April 29th 2019 Gross Income breakdown 3M19 Spain 1,497 €m Rest of Eurasia 24% 103 €m 2% USA 13% 804 €m South America 16% 985 €m 14% Turkey 884 €m 31% Mexico 1,902 €m Note: Figures exclude Corporate Center.
Slide 26: Net Attributable Profit evolution
03 Net Attributable Profit evolution
Slide 27: Group – Net Attributable Profit
1Q19 Results 27 April 29th 2019 Group – Net Attributable Profit (€m) BUSINESSES -71 €m 1,290 1,164 90 -29 28 -23 -59 -4 -84 -12 -32 3M18 BBVA Chile FX Spain USA Mexico Turkey Rest of South Corp. Center 3M19 Effect Eurasia America YoY (%) -14.7 -39.8 4.7 -7.7 -66.9 86.5 (constant €)
Slide 28: P&L accounts by business unit
04 P&L accounts by business unit Rest of Eurasia Corporate Center Colombia Peru
Slide 29: Rest of Eurasia - Profit & Loss
1Q19 Results 29 April 29th 2019 Rest of Eurasia - Profit & Loss Change (%) Rest of Eurasia (€m) 1Q19 vs 1Q18 vs 4Q18 Net Interest Income 39 -8.0 -20.2 Net Fees and Commissions 36 -7.6 48.7 Net Trading Income 27 -39.0 10.8 Other Income & Expenses 2 141.5 n.s. Gross Income 103 -17.8 6.9 Operating Expe
Slide 30: Corporate Center - Profit & Loss
1Q19 Results 30 April 29th 2019 Corporate Center - Profit & Loss Change (%) Corporate Center (€m) 1Q19 vs 1Q18 vs 4Q18 Net Interest Income -71 4.9 11.5 Net Fees and Commissions -15 104.9 75.8 Net Trading Income -7 -70.2 -88.0 Other Income & Expenses -14 n.s. -154.0 Gross Income -107 5.1 2.2 Operatin
Slide 31: Colombia - Profit & Loss
1Q19 Results 31 April 29th 2019 Colombia - Profit & Loss Change (%) Colombia (constant €m) 1Q19 vs 1Q18 vs 4Q18 Net Interest Income 212 2.7 1.5 Net Fees and Commissions 22 -3.8 -20.8 Net Trading Income 20 45.7 11.4 Other Income & Expenses 8 28.9 68.1 Gross Income 263 5.1 1.0 Operating Expenses -93 0
Slide 32: Peru - Profit & Loss
1Q19 Results 32 April 29th 2019 Peru - Profit & Loss Change (%) Peru (constant €m) 1Q19 vs 1Q18 vs 4Q18 Net Interest Income 219 15.0 -2.1 Net Fees and Commissions 54 5.8 -12.2 Net Trading Income 39 6.4 5.5 Other Income & Expenses -6 106.6 -42.7 Gross Income 306 11.1 -1.7 Operating Expenses -112 8.0
Slide 33: Argentina: hyperinflation adjustment
05 Argentina: hyperinflation adjustment
Slide 34: Argentina hyperinflation adjustment
1Q19 Results 34 April 29th 2019 Argentina hyperinflation adjustment Profit & Loss 1Q19 Hyperinflation 1Q19 (€m) (reported) adjustment Ex. Hyperinflation Net Interest Income 219 7 212 Net Fees and Commissions 32 1 31 Net Trading Income 137 3 133 Other Income & Expenses -109 -82 -26 Gross Income 279 -
Slide 35: ALCO portfolio and Liquidity Coverage Ratios (LCRs)
06 ALCO portfolio and Liquidity Coverage Ratios (LCRs)
Slide 36: ALCO portfolio & Liquidity Coverage Ratios (LCRs)
1Q19 Results 36 April 29th 2019 ALCO portfolio & Liquidity Coverage Ratios (LCRs) ALCO Portfolio breakdown by region (€ bn) 53.9 South America 3.5 Mexico 4.6 Turkey 9.3 USA 10.6 Euro1 25.9 Mar-18 49.7 South America 2.4 Mexico 4.7 Turkey 8.3 USA 11.7 Euro1 22.6 Dec-18 52.4 South America 2.9 Mexico 6.
Slide 37: Garanti: wholesale funding
07 Garanti: wholesale funding
Slide 38: Turkey – Liquidity & Funding Sources
1Q19 Results 38 April 29th 2019 Turkey – Liquidity & Funding Sources Solid liquidity position: • Improved LTD ratio to 99%, decreasing by 1 p.p. in 1Q19, mainly driven by the continued improvement in the Foreign Currency LTD by c.5 p.p. to 61% • Stable Foreign currency loans in 1Q19 • Liquidity rati
Slide 39: Risk-Weighted Assets by business area
08 Risk-Weighted Assets by business area
Slide 40: Risk-Weighted Assets by business area
1Q19 Results 40 April 29th 2019 Risk-Weighted Assets by business area Fully-Loaded RWA Breakdown by business area and main countries (€m) Mar-18 Dec-18 Mar-19 Spain 109,746 104,125 107,935 USA 57,266 64,175 64,969 Turkey 60,904 56,486 58,526 Mexico 47,715 53,177 54,794 South America 55,732 42,724 44
Slide 41: Book Value of the main subsidiaries
09 Book Value of the main subsidiaries
Slide 42: Book Value of the main subsidiaries
1Q19 Results 42 April 29th 2019 Book Value of the main subsidiaries1,2 € Bn Mar19 Mexico 10.2 USA 7.6 Turkey 4.0 Colombia 1.3 Peru 1.0 Argentina 0.8 Chile 0.3 Venezuela 0.1 (1) Includes the initial investment + undistributed results + FX impact + other valuation adjustments. The Goodwill associate t
Slide 43: Digital sales breakdown
BBVA Creating Opportunities 10 Digital sales breakdown
Slide 44: Digital sales: outstanding trend across the board
1Q19 Results 44 April 29th 2019 Digital sales: outstanding trend across the board (% of total sales YtD, # of transactions and PRV**) GROUP 56.8 UNITS 48.0 28.0 PRV 31.9 42.6 17.2 Mar-17 Mar-18 Mar-19 SPAIN 47.7 UNITS 42.6 24.1 PRV 41.3 33.1 16.9 Mar-17 Mar-18 Mar-19 USA* 27.4 UNITS 20.7 PRV 16.1 24
Slide 45: Signature
BBVA 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: April 29, 2019 By: /s/ María Angeles Peláez Morón Name:
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