Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q4 2017 Earnings Presentation
36 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Feb 13, 2018
Slide 1: BBVA Group Fourth Quarter 2017
BBVA Group Fourth Quarter 2017
Slide 2: Disclaimer
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 invest in securi
Slide 3: Index
3 Index 01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights
Slide 4: 01. About BBVA
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 01. About BBVA BBVA’s global presence History of BBVA Main figures BBVA share Organizational chart Our team Presence in social media Social commitment Awards and recognitions
Slide 5: BBVA's global presence
5 BBVA’s global presence 01 About BBVA 02 Vision and aspiration 03 BBVA North America USA transformation Mexico journey 04 Results’ highlights Europe Belgium South America Cyprus Argentina France Asia - Pacific Bolivia Finland China Brazil Germany Hong Kong Chile Holland Japan Colombia Italy Singapo
Slide 6: More than 150 years of history
6 More than 150 years of history 01 About BBVA BBVA is the result of the merger of two major Spanish banking institutions 02 Vision and aspiration 03 BBVA transformation 1988 1998 1999 journey 04 Results’ highlights Banco de Bilbao Corporación Banco Bilbao Vizcaya BBVA’s global presence Bancaria de
Slide 7: More than 150 years of history
7 More than 150 years of history 01 About BBVA BBVA had significant growth since 1995 02 Vision and 1995 Banco Continental (Peru) 2006 Texas Regional Bancshares (USA) 2014 Simple (USA) aspiration Probursa (México) Forum Servicios Financieros (Chile) State National Bancshares (USA) 2015 Sale of CIFH’
Slide 8: Main figures 12M17
8 Main figures 12M17 01 About BBVA 02 Vision and Earnings (€m) aspiration 03 BBVA 25,270 12,770 4,642* transformation Gross income Operating income Net attributable profit journey 04 Results’ highlights Balance sheet (€m) 690,059 53,323 400,369 376,379 Total assets Total equity Loans and advances De
Slide 9: BBVA share
9 BBVA share 01 About BBVA Listed on the main international BBVA’s capital ownership is 02 Vision and stock markets well diversified aspiration Shareholder breakdown Banks Non-resident 1.9% 03 BBVA Institutions transformation LONDON 56.6% 6.0% journey NEW MADRID Employees YORK 2.6% MEXICO 04 Results
Slide 10: Organizational chart
10 Organizational chart 01 About BBVA GROUP EXECUTIVE CHAIRMAN Francisco González 02 Vision and CEO Carlos Torres Vila aspiration 03 BBVA EXECUTION & PERFORMANCE NEW CORE COMPETENCIES RISK & FINANCE STRATEGY & CONTROL transformation Global Economics Regulation Corporate & Investment Banking Customer
Slide 11: Our team
11 Our team 01 About BBVA We are creating a culture, environment and ways of working where the 02 Vision and customer is at the center of everything we do aspiration 03 BBVA The best team A first class workforce transformation Our team is the cornerstone of our Our most valuable asset is a first cla
Slide 12: Presence in social media
12 Presence in social media 01 About BBVA BBVA’s commitment is to be where the people are, to listen and understand their needs and dreams. This is the reason that makes BBVA a cutting-edge entity in 02 Vision and aspiration social media 03 BBVA transformation Number of BBVA’s social media profiles
Slide 13: At BBVA we create a positive impact on people's life and on society
13 At BBVA we create a positive impact on people’s life 01 About BBVA and on society 02 Vision and aspiration Growth and Welfare Wealth Generation 03 BBVA Contribution transformation journey 131,856 EMPLOYEES received 5,163 millions in wages 51 CUSTOMERS IN MORE THAN 30 COUNTRIES 42% digital custome
Slide 14: At BBVA we create a positive impact on people's life and on society
14 At BBVA we create a positive impact 01 About BBVA on people’s life and on society 02 Vision and aspiration Sustainable Development Direct Contribution Contribution to Society 03 BBVA transformation Boosting sustainable Reduction on direct journey funding environmental impacts 103 €m Allocated to
Slide 15: Awards and recognitions
15 Awards and recognitions 01 About BBVA Once more, BBVA’s differentiated management has been recognized 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights BBVA’s global presence History of BBVA Main figures BBVA share Organizational chart #1 in 2017 Online Banking Functi
Slide 16: 02. Vision and aspiration
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 02. Vision and aspiration Vision of the financial industry Our aspiration
Slide 17: Reshape of the financial industry
17 Reshape of the financial industry 01 About BBVA 02 Vision and Regulatory pressure and New players are Transforming technologies aspiration the impact in profitability entering the value chain and use of data 03 BBVA transformation journey Banks ROE Evolution1 (%) Big Data Cloud 04 Results’ highli
Slide 18: Shifting customers and needs
18 Shifting customers and needs 01 About BBVA 02 Vision and aspiration Shifting customers and needs 03 BBVA Banking anytime, anywhere transformation journey 04 Results’ highlights Used to digital experiences Expect proactive and personalized help in their finance management Interaction with multiple
Slide 19: Our aspiration
19 Our aspiration 01 About BBVA 02 Vision and aspiration Through an easy and Helping our customers to make convenient experience: DIY the best financial decisions 03 BBVA through digital channels or offering relevant advice transformation human interaction journey 04 Results’ highlights Strengthenin
Slide 20: 03. BBVA transformation journey
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 03. BBVA transformation journey Strategic path Our values Progress in our transformation
Slide 21: Defined strategic path
21 Defined strategic path 01 About BBVA 02 Vision and Our Purpose Six Strategic Priorities aspiration 03 BBVA To bring the age New standard in customer transformation experience journey of opportunity Digital sales 04 Results’ highlights to everyone New business models Optimize capital allocation Un
Slide 22: Our Values
22 Our Values 01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights Customer comes first We think big We are one team We are empathetic We are ambitious I am committed We have integrity We break the mold I trust others We meet their needs We amaze our customers
Slide 23: Focused on customer satisfaction
23 Focused on customer satisfaction 01 About BBVA BBVA NPS (Dec.17) Rnk 02 Vision and Spain aspiration #1 03 BBVA Mexico #1 transformation journey Turkey #1 Increase in NPS by channel 04 Results’ highlights Argentina #1 (footprint average*) Online Banking Branches Colombia #1 Paraguay #1 +6.4 p.p. +
Slide 24: Digital Customers & Digital Sales
24 Digital Customers & Digital Sales 01 About BBVA BBVA Group 02 Vision and Digital Customers aspiration (million) Digital Customers Mobile Customers 03 BBVA +25% +44% transformation journey 22.6 50% tipping 18.1 17.7 point in digital 04 Results’ highlights 12.3 customers achieved Dec.16 Dec.17 Dec.
Slide 25: Proof of our successful transformation
25 Proof of our successful transformation 01 About BBVA DIY increases total sales Customers become more 02 Vision and profitable when digitized aspiration Total sales Spain (million units) Gross margin per customer evolution Mexico* (%) +31% +10% 03 BBVA Digitized transformation journey +120% Digita
Slide 26: New business models
26 New business models 01 About BBVA 02 Vision and Acquisitions Internal Ventures aspiration 03 BBVA 29.5% stake transformation journey Leveraging the 04 Results’ highlights FinTech ecosystem to develop our value Investments (Propel Venture Partners) proposition Strategic path Our values BBVA Apimar
Slide 27: Leveraging technology
27 Leveraging technology 01 About BBVA In 2007 we began our transformation process 02 Vision and aspiration We have been working on our And now we are adapting to 03 BBVA platforms the new paradigms of transformation development journey Placing Front-Office / Channels Platform 04 Results’ highlights
Slide 28: Cultural change
28 Cultural change 01 About BBVA 02 Vision and aspiration Zero tolerance against low quality 03 BBVA transformation journey New ways of working: Agile, collaborative tools, Communities of Practice We are 04 Results’ highlights transforming New headquarters the organization internally by fostering Co
Slide 29: At BBVA, we are accelerating our transformation
29 01 About BBVA 02 Vision and aspiration 03 BBVA At BBVA, we are transformation journey accelerating our 04 Results’ highlights transformation process to become the best bank for our customers Strategic path Our values Progress in our transformation
Slide 30: 04. Results' highlights
01 About BBVA 02 Vision and aspiration 03 BBVA transformation journey 04 Results’ highlights 04. Results’ highlights Highlights Business areas 4Q17
Slide 31: 12M17 Highlights
31 12M17 Highlights 01 About BBVA NET ATTRIBUTABLE PROFIT (*) 12M17 Recurring revenue growth 02 Vision and +19.7%(**) vs 12M16 Cost reduction 4,642 €m aspiration Risk indicators under control 03 BBVA +26.3% constant € transformation journey GROSS INCOME OPERATING INCOME 12M17 12M17 04 Results’ highl
Slide 32: Profit & Loss
32 Profit & Loss Change 01 About BBVA 2017/2016 BBVA Group (€m) 2017 % % constant 02 Vision and aspiration Net Interest Income 17,758 4.1 10.6 Net Fees and Commissions 4,921 4.3 9.4 03 BBVA Net Trading Income 1,968 -7.7 -6.0 transformation Other Income & Expenses 622 -16.3 -19.1 journey Gross Income
Slide 33: Business areas: Spain, Non Core Real Estate, USA
33 Business areas 01 About BBVA SPAIN Banking activity 02 Vision and NET ATTRIBUTABLE PROFIT (12M17) NPL RATIO NII increase (+2% vs 3Q17) 5.2% vs. 5.8% 4Q16 1,381 €m aspiration Good trend in fees (+6% vs 2016) Cost and impairments reductions (-6% and -26% COVERAGE RATIO vs 2016 respectively) as the
Slide 34: Business areas: Mexico, Turkey, South America
34 Business areas 01 About BBVA MEXICO constant € 02 Vision and NET ATTRIBUTABLE PROFIT (12M17) NPL RATIO Sustained growth in all P&L lines meeting our 2.3% vs. 2.3% 4Q16 expectations 2,162 €m aspiration Outstanding growth of core revenues: NII + fees 03 BBVA COVERAGE RATIO Continued positive operat
Slide 35: CIB – 12M17 Results
35 CIB – 12M17 Results 01 About BBVA Business activity Client’s revenue Results 02 Vision and aspiration (constant €, % YtD) (constant €, % YoY) (constant €, % YoY) GROSS MARGIN 03 BBVA transformation LENDING 2,456 €m +0.0% 2,672 €m -0.3% journey 49 €bn -5.7% NET MARGIN Wholesale 04 Results’ highlig
Slide 36: BBVA Group Fourth Quarter 2017
BBVA Group Fourth Quarter 2017
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) — Q4 2017 Earnings Presentation on 6ix