28 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Jan 29, 2021
Slide 1: 2020 Results
2020 Results January 29th, 2021 Carlos Torres Vila Chairman
Slide 2: Disclaimer
2020 Results 2 January 29 th 2021 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 dec
Slide 3: 2020 achievements
2020 Results 3 January 29th 2021 2020 achievements Successfully navigated through the crisis €63 billion1 with clear priorities DEFERRALS, PAYMENT FLEXIBILITY AND CREDIT FACILITIES PROVIDED THROUGH GOVERNMENT PROGRAMS Advanced in our strategy +56% addressing accelerating trends DIGITAL CLIENT ACQUIS
Slide 4: The sanitary crisis has had a strong impact on economic growth in 2020
2020 Results 4 January 29 th 2021 The sanitary crisis has had a strong impact on economic growth in 2020 GDP GROWTH ESTIMATES (% YoY) FOOTPRINT1 SPAIN MEXICO USA 7.0 5.5 4.7 3.2 3.8 3.6 4.5 2.0 2.2 1.1 0,0 2.4 -3.6 -7.2 -9.1 -11.0 2019A 2020 2021 2022 2019A 2020 2021 2022 2019A 2020 2021 2022 2019A
Slide 5: BBVA has taken a step forward in response to the COVID-19 crisis
2020 Results 5 January 29th 2021 BBVA has taken a step forward in response to the COVID-19 crisis Protect the health Provide an essential Offer financial and safety of our service to our support to our employees, clients and communities clients society BBVA has donated more Branch openings based on
Slide 6: Our strategic priorities successfully address accelerating trends during the crisis
Our strategic priorities successfully address accelerating trends during the crisis Improving our clients’ Helping our clients financial health transition towards a sustainable future Reaching more Driving operational clients excellence The best and most Data and Technology engaged team
Slide 7: Leveraging our digital capabilities to better serve our clients
2020 Results 7 January 29th 2021 Leveraging our digital capabilities to better serve our clients MOBILE CUSTOMERS GROUP DIGITAL SALES MILLION CUSTOMERS, PERCENTAGE YTD, PERCENTAGE 64.0% 57.7% 51.3% 34.5 36.3% UNITS 21.8% 28.8 23.1 18.0 48.7% 41.9% 12.2 33.0% 23.1% VALUE-PRV1 14.8% Dec-16 Dec-17 Dec-
Slide 8: We have reached more customers through digital channels
2020 Results 8 January 29 th 2021 We have reached more customers through digital channels GROSS NEW CUSTOMERS ACQUISITION1 (MN CUSTOMERS, % CUSTOMERS ACQUIRED THROUGH DIGITAL CHANNELS) 7.4 7.3 5.5 DIGITAL ACQUISITION 5.0 +56% vs. 2019 TOTAL 3.4 33.3% NON-DIGITAL2 21.2% 2.4 14.4% 1.6 8.6% 0.8 3.7% 0.
Slide 9: We continue to successfully deliver on sustainability strategy
2020 Results 9 January 29th 2021 We continue to successfully deliver on sustainability strategy Helping our clients transition towards a more sustainable future OVERDELIVERING ON BBVA’S PROVIDING SUSTAINABLE FINANCE AND ADVICE 2025 PLEDGE Wholesale clients New sustainable solutions for all segments
Slide 10: Solid quarterly profit evolution, improving capital position and tangible book value per share
2020 Results 10 January 29 th 2021 Solid quarterly profit evolution, improving capital position and tangible book value per share NET ATTRIBUTABLE PROFIT CET1 FULLY LOADED TBV/SHARE + DIVIDENDS (€M CURRENT) (%) (€/Share) € 3.08 Billion in 20203 PRO-FORMA 4 14.58% Dec-20 1,320 1,163 1,141 304 CORPORA
Slide 11: Our commitment to efficiency is reinforced by the acceleration of trends such as digitization
2020 Results 11 January 29 th 2021 Our commitment to efficiency is reinforced by the acceleration of trends such as digitization DIGITAL TRANSACTIONS1 COST-TO-INCOME RATIO OPERATING JAWS TRANSACTIONS PER CLIENT BBVA GROUP. PERCENTAGE (12M20 YOY, %; € CONSTANT) 29 BBVA BBVA -521 bps vs. peers2 -249 p
Slide 12: Risk indicators impacted by COVID-19 but better than initial estimates
2020 Results 12 January 29 th 2021 Risk indicators impacted by COVID-19 but better than initial estimates COST OF RISK NPL & COVERAGE RATIOS (%) (%) 2.57% 2.04% 86% 85% 85% 81% 77% 1.69% COVERAGE 2.57% 1.51% 1.12% YtD CoR 1.51% Quarterly CoR NPL 1.02% 0.97% 3.8% 4.0% 0.94% 3.8% 3.7% 3.6% 4Q19 1Q20 2
Slide 13: We closed the year with a strong capital position and revising our target ratio upwards
2020 Results 13 January 29 th 2021 We closed the year with a strong capital position and revising our target ratio upwards New CET1 FL target: 11.5 - 12.0% CET1 FULLY-LOADED CET1 TARGET TO REQUIREMENT 2 PERCENTAGE € c.8bn BPS excess capital PEER 1 435 1 over target1 14.58% 341 New target PEER 2 335
Slide 14: BBVA USA sale: a historic deal that unlocks value
2020 Results 14 January 29 th 2021 BBVA USA sale: a historic deal that unlocks value LARGE SIZE TRANSACTION AT MAIN RATIOS VERY ATTRACTIVE PRICE 2.5x 19.7x c. €10bn1 PER 2019 €3.8 bn 1.34x P/TBV Sep 2020 Value assigned by Transaction analyst price consensus (1) Based on a EUR/ USD exchange rate of 1
Slide 15: BBVA USA transaction shows disciplined value-based approach to capital allocation
2020 Results 15 January 29th 2021 BBVA USA transaction shows disciplined value-based approach to capital allocation We will deploy the excess capital: In our markets through profitable growth and costs’ reduction Through increased distributions to shareholders Significant EPS and TBV per share accre
Slide 16: Capital deployment. Shareholder distributions
2020 Results 16 January 29th 2021 Capital deployment. Shareholder distributions Extraordinary 2020 dividend 2021 ordinary dividend distributions Follows regulatory Plan to recover our clear, The excess capital allows guidance predictable and sustainable for additional policy once regulatory distribu
Slide 17: 2020 Results - Onur Genç
2020 Results January 29th, 2021 Onur Genç Consejero Delegado
Slide 18: 2020 top financial messages
2020 Results 18 January 29th 2021 2020 top financial messages 1 Solid core revenue growth NII + FEE INCOME (€ constant) +2.7% vs. 12M19 2 Very strong cost control and efficiency OPERATING EXPENSES (€ constant) -2.6% vs. 12M19 3 Resilient pre-provision profit growth OPERATING INCOME (€ constant) +11.
Slide 19: 2020 Profit & Loss
2020 Results 19 January 29 th 2021 2020 Profit & Loss
Slide 20: Spain
2020 Results 20 January 29 th 2021 Spain RESULTS ACTIVITY 12M20 (€m; YoY%) DEC-20 (YoY%) NET INTEREST INCOME LENDING1 CUSTOMER FUNDS 3,553 -0.4% FEES AND +0.8% +8.1% COMMISSIONS 1,802 +2.9% ASSET QUALITY RATIOS OPERATING EXPENSES -3,039 -6.6% 60% 68% 67% COVERAGE OPERATING INCOME 2,515 +4.7% 4.44% 4
Slide 21: USA
2020 Results 21 January 29 th 2021 USA RESULTS ACTIVITY 12M20 (€m; YoY % constant) DEC-20 (YoY %, € constant) NET INTEREST INCOME LENDING1 CUSTOMER FUNDS 2,284 -2.6% NET FEES & COMMISSIONS 0.0% +13.1 % 665 +5.5% ASSET QUALITY RATIOS OPERATING EXPENSES -1,870 -2.8% 101% 95% 84% COVERAGE OPERATING INC
Slide 22: Mexico
2020 Results 22 January 29 th 2021 MEXICO RESULTS ACTIVITY1 12M20 (€m; YoY% constant) DEC-20 (YoY%, € constant) NET INTEREST INCOME LENDING CUSTOMER FUNDS 5,415 -0.7% -0.6% +10.5% NET FEES & COMMISSIONS 1,065 -6.6% ASSET QUALITY RATIOS OPERATING EXPENSES -2,340 +0.7% 136% 170% 122% COVERAGE OPERATIN
Slide 23: Turkey
2020 Results 23 January 29 th 2021 TURKEY RESULTS ACTIVITY1 12M20 (€m; YoY % constant) DEC-20 (YoY %, € constant) NET INTEREST INCOME LENDING CUSTOMER FUNDS 2,783 +25.2% LIRAS: +33.6% LIRAS: +25.5% NET FEES & COMMISSIONS FC: -5.4% FC: +7.9% 510 -9.9% ASSET QUALITY RATIOS OPERATING EXPENSES -1,029 +7
Slide 24: South America
2020 Results 24 January 29 th 2021 SOUTH AMERICA RESULTS1 ACTIVITY2 12M20 (€m; YoY % constant) DEC-20 (YoY %, € constant) NET INTEREST INCOME COLOMBIA PERÚ ARGENTINA 2,701 +0.9% NET FEES & COMMISSIONS +4.0% +20.1% +47.3 % 484 +0.6% ASSET QUALITY RATIOS COST OF RISK (YTD) OPERATING EXPENSES 2.98% -1,
Slide 25: Final remarks and 2021 outlook
Final remarks and 2021 outlook
Slide 26: 2020 in review
1Q20 Results 26 April 30th 2020 2020 in review Successfully navigated through the crisis with clear priorities: first and foremost , the safety and health of our employees, clients and society, and support our clients Advanced in our strategy addressing accelerating trends Delivered excellent result
Slide 27: 2021 Outlook
1Q20 Results 27 April 30th 2020 2021 Outlook Core revenues to continue growing with improving mix, price management and fee income as key levers Costs to grow below inflation 2021 CoR below 2020 levels, although uncertainties remain Sizeable distributions to our shareholders in 2021
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