56 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Apr 29, 2022
Slide 1: 1Q22 Results
Creating Opportunities 1Q22 Results April 29, 2022
Slide 2: Disclaimer
1Q22 Results 2 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 decision to buy or inv
Slide 3: The highest recurrent quarterly results ever
1Q22 Results 3 The highest recurrent quarterly results ever RECURRENT NET ATTRIBUTABLE PROFIT1 CET1 FULLY LOADED (CURRENT €M) (%) +60% +23% 12.70% 1,651 11.5-12.0% TARGET RANGE 1,400 1,341 1,294 1,033 8.60% SREP REQUIREMENT 1Q21 2Q21 3Q21 4Q21 1Q22 Mar-22 1 EPS (€) 0.14 0.18 0.20 0.19 0.24 (1) Net a
Slide 4: Delivering on our clear commitment to shareholder value creation
1Q22 Results 4 Delivering on our clear commitment to shareholder value creation TBV / SHARE + DIVIDENDS PROFITABILITY METRICS2 (€ / SHARE) (%) TBV / share Dividends RANKING EUROPEAN PEER GROUP3 +12.6% ROTE +4.1% 15.9 #1 6.93 12.0 6.66 9.8 1 0.37 1 0.14 6.15 6.56 15.1 #1 6.52 ROE 11.4 9.3 1Q21 2021 1
Slide 5: 1Q22 key messages
1Q22 Results 5 1Q22 key messages EXCELLENT CORE REVENUES CORE REVENUES (NII+FEES) TOTAL LOAN GROWTH 1 +23.3% VS. 1Q21 +10.6% VS. MAR 2021 EVOLUTION AND ACTIVITY GROWTH LEADING EFFICIENCY WITH EFFICIENCY RATIO POSITIVE JAWS 40.7% -528 BPS VS. 2021 THE HIGHEST OPERATING OPERATING INCOME INCOME IN OUR
Slide 6: 1Q22 Profit & Loss
1Q22 Results 6 1Q22 Profit & Loss Change Change 1Q22/1Q21 1Q22/4Q21 BBVA Group (€M) 1Q22 % constant % % constant % Net Interest Income 4,158 26.3 20.5 6.9 4.5 Net Fees and Commissions 1,241 14.1 9.5 -0.3 -0.5 Net Trading Income 580 8.7 -0.3 46.3 32.3 Other Income & Expenses -39 n.s. n.s. n.s. n.s. G
Slide 7: Very strong revenue growth
1Q22 Results 7 Very strong revenue growth NET INTEREST INCOME NET FEES AND COMMISSIONS (CONSTANT €M) (CONSTANT €M) +26.3% +6.9% +14.1% NII growth mainly Fee income 4,158 driven by activity continue at very -0.3% 3,891 acceleration high levels across 3,586 the board. QoQ 3,407 1,153 1,165 1,244 1,241
Slide 8: Loan growth acceleration in all countries and segments
1Q22 Results 8 Loan growth acceleration in all countries and segments LOAN BOOK GROWTH1 (CONSTANT €; YOY CHANGE; %) BBVA GROUP SPAIN MEXICO 10.6% 8.9% 6.5% 6.1% 3.4% 1.1% 1.7% 1.3% 0.1% -0.8% -3.7% -1.5% -1.4% -2.0% -6.5% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-21 J
Slide 9: Well positioned to take advantage of the new rate environment
1Q22 Results 9 Well positioned to take advantage of the new rate environment REFERENCE INTEREST RATES BBVA NII SENSITIVITY (%) (TO +100 BPS INTEREST RATES INCREASE) 0.2 EURIBOR 12M 0 -0.2 15-20% -0.4 EURO BALANCE SHEET -0.6 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 04/25/22 TIIE 28D 3.4% 8.0 6.0 4.0
Slide 10: Positive jaws across the board and outstanding Operating Income evolution
1Q22 Results 10 Positive jaws across the board and outstanding Operating Income evolution POSITIVE JAWS AND COSTS EFFICIENCY RATIO OPERATING INCOME GROWING BELOW INFLATION (%; CONSTANT €) (1Q22 YOY, %; CONSTANT €) (1Q22 YOY, %; CONSTANT €) +31.9% #1 PEER GROUP RANKING EUROPEAN 2 FOOTPRINT 3,525 INFL
Slide 11: Risk indicators evolution better than expected
1Q22 Results 11 Risk indicators evolution better than expected FINANCIAL ASSETS IMPAIRMENTS NPL (CONSTANT €M) (€BN) 899 774 738 15.6 15.7 14.9 15.4 15.6 661 616 1Q21 2Q21 3Q21 4Q21 1Q22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 COST OF RISK NPL & COVERAGE RATIOS (%, YTD) (%) COVERAGE 1.17% 81% 77% 80% 75%
Slide 12: Solid capital position
1Q22 Results 12 Solid capital position CET1 FULLY-LOADED (%, BPS) +5 bps +52 bps 12.75% -29 bps 12.80% 12.70% -17 bps -1 bps -10 bps 11.5-12.0% TARGET RANGE 8.60% SREP REQUIREMENT Dec.2021 Results Dividend RWAs Others 1 Mar.2022 Neon Mar.2022 Accrual (constant €) before M&A (Brazil) & AT1 Coupons im
Slide 13: Setting a new record in customer acquisition
1Q22 Results 13 Setting a new record in customer acquisition NEW CUSTOMER ACQUISITION1 (MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) 2.4 1.9 1.9 1.8 DIGITAL ACQUISITION 1.1 1.3 57% +81% 1Q22 vs 1Q21 TOTAL DIGITAL 6% 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 (1) Gross customer acquisition through own channel
Slide 14: Investing in disruption as part of our growth strategy
1Q22 Results 14 Investing in disruption as part of our growth strategy ENTERING NEW MARKETS THROUGH VENTURE CAPITAL INVESTMENTS IN SELECTIVE DIGITAL BANK INVESTMENTS DISRUPTION (UK) (EUROPE) GROWTH COMPANIES FINTECH FINTECH BBVA ITALY DECARBONIZATION (BRAZIL) DIGITAL ASSETS 29.7% CURRENT STAKE(1) (1
Slide 15: Advancing in our clear commitment to sustainability
1Q22 Results 15 Advancing in our clear commitment to sustainability SUSTAINABLE FINANCING SUSTAINABILITY BOOSTING GROWTH (€BILLION) (SUSTAINABLE BUSINESS PRODUCTION; 1Q22 VS 1Q21 € CHANGE) € 11 BN 200€BN MOBILITY CHANNELED IN 1Q22 PLEDGE 2025 RETAIL 4X FINANCING1 2.5X Total channeled COMMERCIAL 2X E
Slide 16: On track to achieve our ambitious long-term goals
1Q22 Results 16 On track to achieve our ambitious long-term goals COST-TO-INCOME ROTE TBV/ SHARE + DIVIDENDS (%) (%, ANNUALIZED) (YOY %) 45.2 12.6 15.9 14.0 10.1 2021-24 CAGR: 9.0 42.0 12.0 40.7 2021 1Q22 ... 2024 2021 1Q22 ... 2024 2021 1Q22 ... 2024 NEW TARGET CUSTOMERS1 SUSTAINABLE FINANCE (MILLI
Slide 17: Business Areas
Business Areas
Slide 18: Significant contribution of all business areas
1Q22 Results 18 Significant contribution of all business areas RECURRENT NET ATTRIBUTABLE PROFIT1 (BUSINESS AREAS CONTRIBUTION TO 1Q GROWTH; CURRENT €M) +60% 58 58 1,651 288 -3 -15 231 1,033 1Q21 Spain Mexico Turkey South Rest of Corporate 1Q22 America business Center (1) Net attributable profit exc
Slide 19: Spain
1Q22 Results 19 Spain PROFIT & LOSS (€M) ACTIVITY (MAR-22) Δ (%) YoY YoY 1 Q22 vs 1 Q21 vs 4Q21 €Bn 169.1 +3.4% €Bn 296.8 +5.2% Net Interest Income 859 -0.8 -0.9 Net Fees and Commissions 536 5.4 -1 0.4 Net Trading Income 1 90 1 .3 389.6 Mortgages 69.4 -0.3% Demand Other Income & Expenses 79 1 0.9 n.
Slide 20: Mexico
1Q22 Results 20 Mexico YoY PROFIT & LOSS (CONSTANT €M) ACTIVITY (MAR-22) (CONSTANT €) YoY €Bn 103.4 +1 1 .0% Δ Constant (%) Δ Current (%) €Bn 60.9 +8.9% 1Q22 vs 1 Q21 vs 4Q21 vs 1 Q21 Net Interest Income 1 ,746 1 9.8 8.7 27.8 Mortgages 12.7 +1 0.9% Net Fees and Commissions 343 1 4.1 6.1 21 .7 58.8 +
Slide 21: Turkey
1Q22 Results 21 Turkey PROFIT & LOSS (CONSTANT €M) ACTIVITY (MAR-22) YoY1 (CONSTANT €; Bank Only) €Bn Δ Constant (%) Δ Current (%) €Bn FC +4.4% 1Q22 vs 1 Q21 vs 4Q21 vs 1 Q21 YoY1 7.3 -1 8.4% Time Net Interest Income 706 1 34.2 24.6 33.2 Net Fees and Commissions 1 32 50.0 26.7 -1 4.7 FC 10.1 -5.2% N
Slide 22: South America
1Q22 Results 22 South America NET ATTRIBUTABLE PROFIT (CONSTANT €M) ACTIVITY (MAR-22) YoY (CONSTANT €) YoY €Bn 55.9 +7.6% 0 Δ Constant (%) Δ Current (%) €Bn 37.9 +1 1 .1 % 1Q22 vs 1Q21 vs 4Q21 vs 1Q21 Colombia 16.0 +1 5.6% Colombia 69 51.1 1.4 47.5 Colombia 14.1 +1 7.5% Peru 51 83.4 12.3 89.7 Argent
Slide 23: Takeaways
1Q22 Takeaways
Slide 24: 1Q22 takeaways
1Q22 takeaways THE HIGHEST QUARTERLY RECURRENT RESULTS EVER BETTER THAN EXPECTED OPERATING TRENDS LEADING TO 2022 GUIDANCE IMPROVEMENT IN SPAIN AND MEXICO ACCELERATING VALUE CREATION FOR OUR STAKEHOLDERS SIGNIFICANT PROGRESS IN THE EXECUTION OF OUR STRATEGY: INNOVATION, SUSTAINABILITY AND GROWTH ON
Slide 25: Annex
Annex 01 Gross Income breakdown 07 CET1 Sensitivity to market impacts 02 P&L Accounts by business unit 08 RWAs by business Area 03 Customer spread by country 09 Book Value of the main subsidiaries 04 Stages breakdown by business areas 10 TBV per share & dividends evolution 05 Covid-related loans bac
Slide 26: Gross Income breakdown
Ol Gross Income breakdown Creating Opportunities
Slide 27: Gross Income breakdown
1Q22 Results 27 Gross Income breakdown 3M22 Spain 1,663€M Rest of business 202 €M 3% 28% South America Turkey 881 €M 15% 17% 1,027 €M 37% Mexico 2,245 €M Note: Figures exclude Corporate Center.
Slide 28: P&L Accounts by business unit
02 P&L Accounts by business unit Rest of Business Corporate Center Argentina (hyperinflation adjustment) Colombia Peru
Slide 29: Rest of Business Profit & Loss
1Q22 Results 29 Rest of Business Profit & Loss €M
Slide 30: Corporate Center Profit & Loss
1Q22 Results 30 Corporate Center Profit & Loss €M Δ (%) 1Q22 vs 1Q21 vs 4Q21 Net Interest Income -37 -14.6 7.2 Net Fees and Commissions -4 41.8 -37.0 Net Trading Income -38 n.s. n.s. Other Income & Expenses 1 n.s. -98.5 Gross Income -79 n.s. n.s. Operating Expenses -187 -4.9 -13.3 Operating Income -
Slide 31: Argentina hyperinflation adjustment
1Q22 Results 31 Argentina hyperinflation adjustment PROFIT & LOSS €M 1Q22 Hyperinflation 1Q22 (reported) adjustment Ex. Hyperinflation Net Interest Income 319 13 305 Net Fees and Commissions 61 2 59 Net Trading Income 34 1 33 Other Income & Expenses -186 -142 -44 Gross Income 228 -125 353 Operating
Slide 32: Colombia Profit & Loss
1Q22 Results 32 Colombia Profit & Loss €M CONSTANT Δ (%) 1Q22 vs 1Q21 vs 4Q21 Net Interest Income 213 8.4 8.0 Net Fees and Commissions 25 19.9 25.2 Net Trading Income 24 236.9 2.9 Other Income & Expenses -4 -17.1 -56.0 Gross Income 258 17.4 11.2 Operating Expenses -89 10.2 2.2 Operating Income 169 2
Slide 33: Peru Profit & Loss
1Q22 Results 33 Peru Profit & Loss €M CONSTANT Δ (%) 1Q22 vs 1Q21 vs 4Q21 Net Interest Income 218 15.9 -2.8 Net Fees and Commissions 64 11.9 1.3 Net Trading Income 33 -5.2 5.7 Other Income & Expenses -8 -3.6 1.9 Gross Income 306 12.9 -1.2 Operating Expenses -119 12.4 -2.2 Operating Income 187 13.3 -
Slide 34: Customer Spread by country
03 Customer Spread by country
Slide 35: Customer spreads: quarterly evolution
1Q22 Results 35 Customer spreads: quarterly evolution AVERAGE 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Spain 1.77% 1.76% 1.75% 1.73% 1.71% Turkey TL 2.55% 2.88% 3.43% 4.89% 5.22% Yield on Loans 1.77% 1.75% 1.74% 1.73% 1.71% Yield on Loans 14.30% 15.56% 16.26% 16.48% 17.75% Cost of Deposits
Slide 36: Stages breakdown by business areas
04 Stages breakdown by business areas
Slide 37: Stages breakdown by business area
1Q22 Results 37 Stages breakdown by business area CREDIT RISK BREAKDOWN BY BUSINESS AREA (MAR-22, €M) BBVA Gross Accumulated Gross Accumulated Gross Accumulated SPAIN MEXICO GROUP Exposure impairments Exposure impairments Exposure impairments Stage 1 341,187 2,163 Stage 1 172,972 665 Stage 1 59,141
Slide 38: Covid-related loans backed by State guarantees
05 Covid-related loans backed by State guarantees
Slide 39: Government covid-related backed loans
1Q22 Results 39 Government covid-related backed loans € bn; MAR’22 (2) (3) GROUP SPAIN (2) MEXICO TURKEY (3) ARGENTINA COLOMBIA PERU Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Households 1.4 0.9% (1) 1.2 1.2% 0.0 0.0% 0.0 0.0% 0.0 2.4% 0.0 0.5% 0.1 2.1
Slide 40: ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
06 ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
Slide 41: ALCO portfolio
1Q22 Results 41 ALCO portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value (HTC) (HTC&S) 47.7 45.6 52.0 Mar-22 (€BN) (€BN) (duration) 6.0 0.2 5.8 0.7 years South America 4.0 4.0 South America 10.5 Mexico 2.3 8.2 2.9 years Mexico 10.1 10.1 6.7 5.7 6.7 Turkey 3.6 3.1 3.9 years Turk
Slide 42: Liquidity and funding ratios
1Q22 Results 42 Liquidity and funding ratios BBVA GROUP AND SUBSIDIARIES LCR & NSFR (MAR-22) LCR NSFR Total Group 152% (199%)1 135% Euro 2 173% 126% Mexico 227% 146% Turkey 240% 3 163% S. America All countries >100% >100% (1) LCR of 152% does not consider the excess liquidity of the subsidiaries out
Slide 43: CET1 Sensitivity to market impacts
07 CET1 Sensitivity to market impacts
Slide 44: CET1 Sensitivity to Market impacts
1Q22 Results 44 CET1 Sensitivity to Market impacts1 TO A 10% CURRENCY DEPRECIATION TO A 10% DECLINE IN TELEFONICA’S (MAR-22) SHARE PRICE (MAR-22) MXN -5bps -3 bps TRY -1bps TO +100 BPS MOVEMENT IN THE SPANISH SOVEREIGN BOND (MAR-22) USD +19bps -15 bps (1) CET1 sensitivity considering the FL capital
Slide 45: RWAs by business area
038 RWAs by business area Creating Opportunities
Slide 46: Risk-Weighted Assets by business area
1Q22 Results 46 Risk-Weighted Assets by business area Fully-Loaded RWAs Breakdown by business area (€m) Mar-21 Dec-21 Mar-22 Spain 107,872 113,797 109,623 Mexico 61,981 64,573 67,626 Turkey 53,252 49,718 49,589 South America 38,948 43,334 46,330 Argentina 5,727 6,775 6,767 Chile 1,577 1,636 1,888 Co
Slide 47: Book Value of the main subsidiaries
09 Book Value of the main subsidiaries
Slide 48: Book Value of the main subsidiaries
1Q22 Results 48 Book Value of the main subsidiaries(1,2) € BN; MAR’22 Mexico 14.9 Turkey 3.1 Colombia 1.5 Argentina 1.2 Peru 1.1 Chile 0.4 Venezuela 0.1 (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuation adjustments. The Goodwill associate to each subsid
Slide 49: TBV per share & dividends evolution
10 TBV per share & dividends evolution
Slide 50: Shareholders' return: TBV per share & dividends evolution
1Q22 Results 50 Shareholders’ return: TBV per share & dividends evolution TBV PER SHARE & DIVIDENDS (€ PER SHARE) TBV Dividends +12.6% 6.93 6.55 6.66 6.40 0.37 1 6.15 1 0.14 1 0.14 1 0.06 6.52 6.56 6.34 6.41 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 (1) April 2021 dividend per share (0.06 €), October 2021
Slide 51: Garanti BBVA: wholesale funding
11 Garanti BBVA: wholesale funding
Slide 52: Turkey – Liquidity & funding sources
1Q22 Results 52 Turkey – Liquidity & funding sources SOLID LIQUIDITY POSITION: LIMITED EXTERNAL WHOLESALE Total LTD ratio is at Foreign currency Liquidity ratios above FUNDING NEEDS: 82.1%, increasing by performing loans requirements: Liquidity 6.8 Bn +2.4 p.p in 1Q22 increased by USD 0.4 Bn Coverag
Slide 53: Digital metrics
12 Digital metrics Digital & mobile customers Digital sales
Slide 54: Outstanding trends in digital and mobile clients
1Q22 Results 54 Outstanding trends in digital and mobile clients DIGITAL CUSTOMERS MOBILE CUSTOMERS (MILLION CUSTOMERS, %) (MILLION CUSTOMERS, %) +36% +41% 41.5 43.6 34.7 37.0 29.4 32.0 Mar20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 CUSTOMER PENETRATION RATE CUSTOMER PENETRATION RATE 59.4% 64.1% 70.0% 54.
Slide 55: Leveraging digital capabilities to grow sales through digital channels
1Q22 Results 55 Leveraging digital capabilities to grow sales trough digital channels (% OF TOTAL SALES YTD, # OF TRANSACTIONS AND PRV1) GROUP SPAIN MEXICO 77.4 73.8 67.3 75.5 69.8 UNITS 64.7 59.7 59.4 59.2 66.6 PRV 59.8 53.6 56.2 50.4 48.7 48.6 46.1 45.6 Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 Ma
Slide 56: BBVA
BBVA