Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Investor Presentation (June 2004)
36 slides from Banco Bilbao Vizcaya Argentaria's investor presentation, June 2004
Slide 1: Mutual Funds June 2004
BBVA Mutual Funds June 2004 BBVA
Slide 2: Disclaimer
Disclaimer T h is d o c u m e n t is o n ly p r o v id e d fo r in fo r m a tio n p u r p o s e s a n d d o e s n o t c o n s titu te , n o r m u s t it b e in te r p r e te d a s , a n o f f e r to s e ll o r e x c h a n g e o r a c q u ir e , o r a n in v ita tio n f o r o ff e r s to b u y s e c
Slide 3: Mutual funds in 2004 / The BBVA strategy / The results
Mutual funds in 2004 1 The BBVA strategy 2 The results 3 Next steps 4 Conclusions 5 3
Slide 4: The 2003 recovery has continued in 2004
The 2003 recovery has continued in 2004 ‣ In 2004 mutual funds continue to grow strongly ‣ Net fund gathering in the first five months of 2004 is close to 12 billion euros. This is more than half the total for 2003 and contributes to the significant recovery of assets under management. Variation in
Slide 5: Main features of this growth
Main features of this growth Guaranteedproducts Guaranteed areonce productsare onceagain againthe thebiggest biggestpart partof ofmarket market growth growth Recoveryin Recovery inrisk riskfunds fundsremains remainsweak weak Spanishinvestors Spanish investorscontinue continueto tofavour favourthe th
Slide 6: Mutual funds in 2004 / The BBVA strategy / The results
Mutual funds in 2004 1 The BBVA strategy 2 The results 3 Next steps 4 Conclusions 5 6
Slide 7: The BBVA strategy: Innovation, Guidance
The BBVA strategy Innovation Guidance 7
Slide 8: Throughout 2003 BBVA continuously launched innovative products
Throughout 2003 BBVA continuously launched innovative products Innovation 8
Slide 9: . . . that led the way
. . . that led the way Innovation 9
Slide 10: . . . and this continued in 2004
. . . and this continued in 2004 Innovation The Triple Óptimo range and the daily liquidity of our guaranteed fixed- fixed-income funds broke new ground in the local fund market 10
Slide 11: At the same time we are focusing on financial advice
At the same time we are focusing on financial advice Guidance • We have one of the widest product ranges in the domestic market • Our distribution networks can offer the best combination of products for each type of customer. More than 1,500 employees have obtained the Financial Advisor Diploma. • T
Slide 12: This has helped the new products
This has helped the new products Guidance Marketing of the new range has focused on the customer and on our profiling tools 1. With no advertising in the mass media 2. With no campaigns to support sales 3. Up to three funds marketed simultaneously Assets Customers The Triple Optimo Deposit 429 26.8
Slide 13: Mutual funds in 2004 / The BBVA strategy / The results
Mutual funds in 2004 1 The BBVA strategy 2 The results 3 Next steps 4 Conclusions 5 13
Slide 14: Growth
il PC URAMTENTO = “CRECIMIENTO BBVA
Slide 15: Asset Growth
Asset Growth yy--oo--yygrowth growth(%) (%) 19.4 17.8 18.4 18.1 17.4 BBVA 18.6 17.6 13.8 16.1 15.36 BBVA TOTAL Ja n-04 Fe b-04 Ma r-04 Apr-04 Ma y 04 Exceeding the banking sector year- year-on- on-year (18.11% vs 15.36%) and in the first five months of the year (8.47% vs 6.48%) 15
Slide 16: Market Share Growth
Market Share Growth BBVA’ BBVA’s’smarket BBVA marketshare shareof ofdomestic domesticMutual MutualFund Fundbusiness business(%) (%) 18.9 18.6 18.7 18.5 18.5 18.5 18.5 18.3 18.3 May Jun Sep Dec Jan Feb Mar Apr May 03 03 03 03 04 04 04 04 04 Gaining 40 bp market share in the last twelve months and 33
Slide 17: Beating the market and our main competitors in net fund gathering
Beating the market and our main competitors in net fund gathering NETFUND NET FUNDGATHERING GATHERING(1 (1ststfive fivemonths monthsof 2004)OVER of2004) OVERVOLUME VOLUMEAT ATDEC DEC03 03 BBVA 8.1% SCH 5.6% LA CAIXA 1.0% TOTAL MERCADO 5.9% Source: Inverco, May 2004 17
Slide 18: . . . in a continuous fashion throughout the year
. . . in a continuous fashion throughout the year Net subscriptions in 2004 (€bn) Jan Feb Mar Apr May TOTAL BBVA * -191 725 1,138 657 637 2,966 SCH 790 637 1,028 379 30 2,864 CAIXA -11 -34 124 31 6 116 CAJA MAD. 178 178 135 167 144 802 AHORRO C. 75 37 106 93 113 424 SECTOR 1,892 2,600 3,712 2,000 1,
Slide 19: . . . and especially in the last few months
. . . and especially in the last few months Net subscriptions (Market share %) Mar Apr May BBVA 30.66 32.85 43.72 SCH 27.69 18.95 2.06 CAIXA 3.34 1.55 0.41 CAJA MAD. 3.64 8.35 9.88 AHORRO C. 2.86 4.65 7.76 Source: Inverco 19
Slide 20: This makes BBVA the fastest growing fund manager in the euro zone
This makes BBVA the fastest growing fund manager in the euro zone Source: Morgan Stanley, June 2004 20
Slide 21: In addition the structure of this growth is well balanced
In addition the structure of this growth is well balanced Guaranteed funds are an important part of growth Assetgrowth Asset growth––first firstfive fivemonths of2004 monthsof 2004 System BBVA Global 6.48% 8.47% Guaranteed 2.39% 10.83% Other funds 7.36% 6.92% . . . although in fact contributions are
Slide 22: Guaranteed funds – a profitable opportunity for the investor
Guaranteed funds – a profitable opportunity for the investor WEIGHTED AVERAGE ANNUAL RETURNS ON MUTUAL FUNDS AT 31/MAY/04 Fund Type 2004 1 YEAR 3 YEARS 5 YEARS F.I.A.M.M. - MONEY FUNDS 0.48 1.19 2.12 2.32 FIXED INCOME 0.68 1.30 2.60 2.50 MIXED 0.84 6.10 -2.60 -1.10 SECURITIES 2.70 19.77 -10.53 -6.12
Slide 23: BBVA – the leader in guaranteed funds
BBVA – the leader in guaranteed funds BBVA’s guaranteed mutual funds have consistently outperformed the competition Cumulative returns - Guaranteed F. 15.0% 12.36% 12.91% 12.5% 9.41% 10.0% 7.93% 8.74% 7.5% 5.33% 4.81% 5.0% 2.29% 2.51% 2.5% 0.74% 0.0% 2000 2001 2002 2003 May'04 B Sector BBVA Data: In
Slide 24: Mutual funds in 2004 / The BBVA strategy / The results
Mutual funds in 2004 1 The BBVA strategy 2 The results 3 Next steps 4 Conclusions 5 24
Slide 25: Next steps: Innovation, Guidance
The BBVA strategy Innovation Guidance 25
Slide 26: We are extending the profiler
We are extending the profiler Guidance GEOGRAPHICALLY: up GEOGRAPHICALLY: up to to 3,500 3,500 branches branches WITH MORE WITH MORE PRODUCTS: PRODUCTS: life life insurance insurance and and savings savings 26
Slide 27: We have launched a fund whose goal is to pay each year 4%
We have launched a If the IBEX 35 at the end of fund whose each year is greater than at the goal is to pay start, the fund will pay 4% gross in cash. each year 4% 4% 4% 4% 16/09 16/09 16/09 16/09 2005 2006 2007 2008 27
Slide 28: And on expiry it will pay any gains in the stock market
And on expiry it will pay any gains in the stock market A final coupon will be paid on 29th January 2010, equal to the difference between the cumulative average monthly variation in the IBEX 35 since the start, less the coupons already paid. The amount can never be negative. 28
Slide 29: The BBVA 4-100 IBEX Fund covers the two main concerns of any investor
The BBVA 4 – 100 IBEX Fund covers the two main concerns of any investor 4% 4% 4% 4% 16/09 16/09 16/09 16/09 2005 2006 2007 2008 Very high returns – Benefits are not capped – predefined and paid out you continue to gain if the periodically market goes up 29
Slide 30: The BBVA 4-100 IBEX fund has all the advantages of the best investments
The BBVA 4 – 100 IBEX fund has all the advantages of the best investments investments Stock Stock exchange exchange The The profits profits The safety safety attraction of attraction of The income income of aa of guaranteed guaranteed 1º 1º fund fund 2º 3º With daily LIQUIDITY and no cancellation fe
Slide 31: im, un fondo
31 im, un fondo adelante. BBVA
Slide 32: Mutual funds in 2004 / The BBVA strategy / The results
Mutual funds in 2004 1 The BBVA strategy 2 The results 3 Next steps 4 Conclusions 5 32
Slide 33: Conclusion: BBVA – a strategy of success
Conclusion: Conclusion: BBVA – a strategy of success In 2003 we adopted a new organisation structure focused on the CUSTOMER 1.Integrated 1. Integratedwith withRetail RetailBanking Banking 2.Creation 2. Creationof ofsavings savingsand andinvestment investmentservices services 3.Reinforcing 3. Reinfo
Slide 34: Conclusion: BBVA – a strategy of success
Conclusion: Conclusion: BBVA – a strategy of success And we defined three vectors Wide and Innovative diversified range products and (not a one- one- management product focus) focus) Focused on guidance 34
Slide 35: Conclusion: BBVA – a strategy of success
Conclusion: Conclusion: BBVA – a strategy of success And a year and a half later . . . Steadygains Steady inmarket gainsin marketshare sharesince sinceJune June(from (from18.3% 18.3%to to18.9%) 18.9%) Theleader The leaderininfund fundgathering gatheringin inthe theeuro eurozone zoneand andthird inEu
Slide 36: BBVA: Asset Management
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