Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q2 2022 Earnings Presentation
49 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Aug 1, 2022
Slide 1: Fixed Income Investors Presentation 2022
Creating Opportunities Fixed Income Investors Presentation 2022
Slide 2: Disclaimer
2Q22 Fixed Income 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 o
Slide 3: BBVA Investment case
Creating Opportunities Ol BBVA Investment case
Slide 4: About BBVA
2Q22 Fixed Income 4_ About BBVA ~& iI? BBVA‘s GLOBAL PRESENCE FINANCIAL HIGHLIGHTS JUNE 2022 JUNE 2022 Net attributable profit June 2022. CET1FL 3,001 me 12. 45, . OUR PURPOSE Total assets - cs t 9g is fy bring the age 715,294 Me , i : - V2 of opportunity Loans and advances to Deposits from ; to eve
Slide 5: To bring the age of opportunity to everyone
2Q22 Fixed Income 5 To bring the age of opportunity to everyone STRATEGIC PRIORITIES = Improving our clients’ Fo Helping our clients transition financial health towards a sustainable future i Driving operational Reaching more clients ." excellence w id ip aaa = Data and Technology engaged team
Slide 6: BBVA | Strong position
BBVA | STRONG POSITION Market share! (%) mz sSpain 13.4% By Mexico 24.2% Ga Turkey 174% = Colombia 10.9% i Peru 20.9% (1) Latestavailable loan market shares, Ranking among peer group. Turkey among private banks. (2) As of 3M22. Leading franchises in very attractive markets (3) According to local cri
Slide 7: Well diversified business model
2) Well diversified business model DIVERSIFICATION UNDER A DECENTRALIZED MODEL TOTAL ASSETS ! JUN-22 6% Rest of Business South America 9% Turkey a Mexico A GROSS INCOME! 6M22 58% Spain 3%Rest of Business South America ( Turkey 12% ma 269% Soain Mexico a, (1) Figures exclude the Corporate Center MPE:
Slide 8: Capturing value from digitalization: new record in customer acquisition
2Q22 Fixed Income 8 | 3) Capturing value from digitalization: new record in customer acquisition with strong engagement NEW CUSTOMER ACQUISITION! (BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) 53 3.6 34 e = CUSTOMER ENGAGEMENT e@ 26 e (% OF NEW CUSTOMERS . CONVERTED TO TARGET CUSTOMER
Slide 9: Trend setters in Sustainability
222 Fixed Income 2 4) Trend setters in Sustainability SUSTAINABLE FINANCING (€BILLION) JAsne CHANNELED 200°" IN 2022 2025 GOAL Total channeled 112°" 4 —an 2018 2019-2020 2021 2022, 2023. 2024. 2025 CLEAR COMMITMENT IN PORTFOLIO ALIGNMENT TOWARDS NET ZERO 2050 2030 decarbonization goals set in select
Slide 10: Proven track record of solid financial returns
5) Proven track record of solid financial returns STRONG PRE-PROVISION PROFIT AND BEST-IN-CLASS EFFICIENCY PRE-PROVISION PROFIT / RWA BBVA 2016-6M22 ANNUALIZED. PEERS 2016-3M22 ANNUALIZED BBVA 3.9% 2.7% 9 EUROPEAN PEER 2.2% GROUP AVERAGE! 2016 2017 2018 2019 2020 2021 2022 EFFICIENCY RATIO BBVA 2016
Slide 11: NPL Ratio, Coverage ratio, Cost of Risk
NPL Ratio Coverage ratio Cost of Risk
Slide 12: Disciplined capital allocation
2Q22 Fixed Income 12, 7) Disciplined capital allocation CAPITAL ALLOCATION TOWARDS MARKETS WITH SCALE AND PROFITABLE FRANCHISES UNEUE CINESSTINGH TBV / SHARE + DIVIDENDS (€/ SHARE) A = ne +8.5% = iB + 2 FOCUS ON MARKETS WITH 7.50 2 = SCALE AND PROFITABILITY 6.92 0.31 = s 6.34 mm 0.31! o = - *+& 7.19
Slide 13: Strong ESG Credentials
8) Strong ESG Credentials SUSTAINABLE FINANCING Sustainable Finance Origination Increased target to «200 bn 2018-2025 2018-2022: el 1 2 bn channeled BBVA S.A -Sustainable Bond Issuances per 300 Green %& €2bn BE Social Founding members Net Zero Alliance Defined Portfolio Alignment Strategy in the mos
Slide 14: On track to achieve our ambitious long-term goals
2Q22 Fixed Income 14 On track to achieve our ambitious long-term goals COST-TO-INCOME (vy) ROTE Cv) TBV/ SHARE+ DIVIDENDS @ (%) (%, ANNUALIZED) (YOY %) 45.2 18.4 ° 43.9 14.8 14.0 < ° 12.0 e e e e fT —rr——SYS 2021 6M22 . 2024 2021 6M22 -. 2024 2021 6M22 .. 2024 NEW TARGET CUSTOMERS’ @ SUSTAINABLE FIN
Slide 15: 2022 Results
Creating Opportunities O2 2022 Results
Slide 16: BBVA reports another very strong quarter
BBVA reports another very strong quarter RECURRENT NET ATTRIBUTABLE PROFIT! (CURRENT €M) 1,294 2021 1022 NOTE: In the presentation, 2022 figures are under hyperinflation accounting in Turkey (1022 figures have been restated). (1) Net attributable profit excluding non-recurring resuilts (US business
Slide 17: BBVA Group 2022 Profit & Loss
BBVA Group 2022 Profit & Loss BBVA Group (€M) Net Interest Income Net Fees and Commissions Net Trading Income Other Income & Expenses Gross Income Operating Expenses Operating Income Impairment on Financial Assets Provisions and Other Gains and Losses Income Before Tax Income Tax Non-controlling Int
Slide 18: Improvement especially in Mexico and South America
Improvement especially in Mexico and South America RECURRENT NET ATTRIBUTABLE PROFIT! (BUSINESS AREAS CONTRIBUTION TO 2022 YOY GROWTH; CURRENT €M) +55 1,877 +145 2Q21 Spain Mexico Turkey South Rest of Corporate 2Q22 America business Center NAP 2Q22! em) 409 1,043 137 255 47 -15 NAP growth! (voy) +15
Slide 19: Strong activity and improvement in customer spreads
Strong activity and improvement in customer spreads LOAN BOOK GROWTH! (YOY % CONSTANT €) BBVA GROUP “ e 1.7% Jun-21 Sep-21 Dec-21. Mar-22 — Jun-22 3.4% 3.6% e—e 1.7% 1.1% vy a TT sPain 0.8% e Jun21 Sep-21 Dec-21 Mar-22 Jun-22 13.3% 8.9% 0 BI MEXICO a — 0.1% 3.7% “a — e Jun-21 Sep-21 Dec-21 Mar-22 Ju
Slide 20: Spain
= Spain PROFIT & LOSS em) Net Interest Income Net Fees and Commissions Net Trading Income Other Income & Expenses Gross Income Operating Expenses Operating Income Impairment on Financial Assets Provisions & other gains (losses) Income Before Tax Income Tax Net attributable profit (ex-non recurring i
Slide 21: Mexico
2Q22 Fixed Income 21, ta Mexico PROFIT & LOSS (Constant £m) ACTIVITY (un-22) YoY (Constant €) A Constant (%) A Current (%) A Constant YoY €Bn109.1 410.2% 2Q22 vs 2021 vs 1922 6M22 vs 6M21 vs 6M21 (%) Net Interest Income 1872 22.4 33 3,684 329 au €Bn67.1 413.3% Net Fees and Commissions 388 191 01 744
Slide 22: Turkey
2Q22 Fixed Income 22 wf Turkey PROFIT & LOSS (Constant £m) ACTIVITY (JUN-22) (Constant €; Bank Only) ; AConstant (%) A Current (%) €Bn YoY 2922 vs 1022 vs 1022 6M22 Bn FC 4 -3.3% Net interest Income 696 49.0 342 14163 YoY! 74 95 AM Net Fees and Commissions 170 358 218 295 Time “7 Net Trading Income
Slide 23: South America
fa South America NET ATTRIBUTABLE PROFIT (constant €m) A Constant (%) A Current (%) A Constant 2022 vs 2Q21 vs 1Q21 6M22 vs 6M21 vs 6M21(%) Colombia 78 33.2 97 149 44] 41.2 Peru 65 125.1 22.5 W7 122.4 104.2 Argentina 86 ns. ns. 101 ns. ns. Other! 27 34.8 46 12.0 98 Note: Venezuelain currentém (1) Ot
Slide 24: Capital, Liquidity & Balance Sheet management
Creating Opportunities O3 Capital, Liquidity & Balance Sheet management
Slide 25: Strong capital position with CET1 FL above our target
Strong capital position with CET1 FL above our target CET1 FULLY-LOADED (%, BPS) +59 bps +19 bps lJ 270% 12.50% -29 bps -30 bps -26008 ff} 12.45% -18 bps 11.5-12.0% TARGET RANGE 8.60% SREP REQUIREMENT | Mar-22 Hyperinflation Corp.Op: Pro-forma Recurrent Dividend RWAs Others? = Jun-22 accounting Gara
Slide 26: A high quality and resilient capital
A high quality 2022s 28 and resilient capital HIGH RWAS DENSITY, WITH A LIMITED CAPITAL RESILIENCE UNDER USE OF INTERNAL MODELS! STRESS SCENARIOS RWA / TOTAL ASSETS LEVERAGE RATIO FL ADVERSE SCENARIO BBVA JUN-22 / PEERS MAR.22 BBVA JUN-22/ PEERS MAR.22 CET1 FL 2020-2023 (DEPLETION, BPS.) PEERI -258
Slide 27: CET1 Requirement, Total Requirement, Phased-in ratios
2.38% 0.01% 1.78% 0.75% 2.50% 0.84% 4.50% CET1 Requirement Total Requirement Phased-in ratios Jun.22
Slide 28: Hedging policy to limit P&L and CET1 ratio volatility
Hedging policy to limit P&L and CET1 ratio volatility TO CURRENCY DEPRECIATION CAPITAL — poucy GOAL BBVA hedgesc.70% Reduce consolidated of the excess capital CET1 ratio volatility (what is not naturally as aresult of FX hedged by the ratio) movements P&L POLICY GOAL BBVA hedges on average Reduce Ne
Slide 29: CET1 Requirement, Total Requirement, Phased-in ratios
0.01% 2.50% 0.84% 4.50% CET1 Requirement Total Requirement Phased-in ratios Jun.22
Slide 30: Sound MREL position
2Q22 Fixed Income 30 Sound MREL position C.85% OF MREL ELIGIBLE POSITION AS OF JUN-22 WITH SUBORDINATION > OR = TO SNP % RWA! MREL REQUIREMENT + CBR SUBORDINATION REQUIREMENT + CBR M-MDA Buffer 156 bps (€3.1bn) Subordination Buffer 26.28% 521 bps (€10.2bn) . /O 24.72% CBR: 3.26% 21.97% 16.76% MREL C
Slide 31: Liquidity ratios well above 100% minimum
Liquidity ratios well above 100% minimum Ample quality collateral BBVA GROUP LIQUIDITY BALANCE SHEET! JUN-22 59% 63% = Deposits = ECB = M&L/T Funding = Net Loans to Customers = Fixed Assets & Others Ha 5% B 7% BEquity & Others = Financial Assets Bi o% aunty 9 30% — = S/T Funding ma 4% Assets Liabili
Slide 32: Limited wholesale funding maturities in all geographies
2Q22 Fixed Income 32 Limited wholesale funding maturities in all geographies DEBT OUTSTANDING BY PRODUCT MEDIUM & LONG-TERM WHOLESALE JUN-22, €BN FUNDING MATURITIES JUN-22, €BN Others! 10 Senior 13.5 Preferred FAL EURO 53 8.8 5.0 9.3 — 16 : : 17% € 41.9bn > = EE = & Subordinated 9 oe Wl Mexico 32 W3
Slide 33: Solid liquidity position in Turkey
Solid liquidity position 2022 Fixed Income 33 in Turkey SOLID LIQUIDITY POSITION: Total LTD ratio is at 81.3%, decreasing by -0.8 p.p in 2Q22. Foreign currency performing loans decreased by USD 0.8 Bn (on a quarterly basis) toc. USD 10.5 Bn in 2Q22. FC LIQUIDITY BUFFERS @ Short Term Swaps @ Unencumb
Slide 34: We have updated our funding plan 2022
2Q22 Fixed Income 34 We have updated our funding plan 2022 in a context of higher activity BBVA, S.A. 2022 Remaining 2022 Strategy! €BN Executed (subject to market conditions) ATl = No issuance expected due to market conditions Tier 2 = Potential issuance of Tier2 to optimize the P2R Tiering SNP €1b
Slide 35: Moody's and Fitch maintained BBVA's ratings and stable outlook
In May'22, Moody's and Fitch maintained BBVA‘s ratings’ and its stable outlook BBVA LONG TERM SENIOR UNSECURED RATINGS , Stable outlook Moody's 2a? ign dors) S&P Stable outlook (Mar, 22%, 2022) i Stable outlook Fitch (May. 25", 2022) Stable outlook DBRS (Mar. 29%, 2022) Note: CB = Covered Bonds, SNP
Slide 36: Active management of ALCO portfolio
2Q22 Fixed Income 36 Active management of ALCO portfolio to lock-in the balance sensitivity to higher rates ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value 543 (HTC) (HTC&S) 48.7 on 5 M66 Jun-22 (€BN) (€BN) (duration) SouthAmerica Ww 4.1 : ———« South America 0.2 6.4. 1.Oyears Mexico
Slide 37: NII sensitivity to interest rates movements
2Q22 Fixed Income 37 NII sensitivity to interest rates movements ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST RATE MOVEMENTS (TO +100 BPS INTEREST RATES INCREASE) = | | +] 5-20», +3.9% EURO BALANCE MEXICO SHEET Nilsensitivities to parallel interest rates movements calculated as
Slide 38: Takeaways
2Q22 Fixed Income 38 Takeaways BBVA is uniquely positioned for profitable growth Leading franchises in very attractive markets with a well diversified business model. Capturing value from digitalization and trend-setters in sustainability. Proven track record of solid financial results. Disciplined
Slide 39: Annex
BBVA Creating Opportunities Annex « BBVA Group 6M22 Profit & Loss « Stages breakdown by business area 4 Capital Base: BBVA Group & BBVA, S.A. a Group RWA breakdown « Debt Issuances 2019 - 2022 « Called notes — 2018 — 2022 a Main Subsidiaries Ratings a Sovereign Exposure by geography « Book Value of
Slide 40: BBVA Group 6M22 Profit & Loss
2Q22 Fixed Income 40 BBVA Group 6M22 Profit & Loss Change 6M22/6M21 BBVA Group (€M) 6M22 % constant % Net Interest Income 8,551 26.5 22.9 Net Fees and Commissions 2,650 17.8 14.5 Net Trading Income 1,095 5.5 1.0 Other Income & Expenses -787 ns. ns. Gross Income 11,509 15.8 12.2 Operating Expenses -5
Slide 41: Stages breakdown by business area
2Q22 Fixed Income 41 Stages breakdown by business area CREDIT RISK BREAKDOWN BY BUSINESS AREA (JUN-22, €M) BBVA Gross Accumulated Gross Accumulated . Gross Accumulated LA. GROUP Exposure impairments = SPAIN Exposure impairments wu MEXICO Exposure impairments Stage 1 361,721 2,264 Stage 1 178,843 591
Slide 42: Capital Base
2Q22 Fixed Income 42 Capital Base BBVA Group & BBVA, S.A. PHASED-IN CAPITAL RATIOS FULLY-LOADED CAPITAL RATIOS JUN-22 (%) JUN-22 (%) 16.22 721 16.11 7.28 Mere wm 3 97 me 2.23 __ Tier2 wm 307 _ oa Additional Tier] 759 mh 248 Additional Tier] 759 2.48 CETI A 12.56 [.. CET1 A 12.45 A 12.50 BBVA Group B
Slide 43: Group RWA breakdown
Group RWA breakdown TOTAL RWA BREAKDOWN PHASED-IN 48% RB Models CVA! FX Risk Trading Act. Risk Operational Risk Credit Risk 84.5% 52% Standardized Models Note 1: Credit Valuation Adjustment. Note: Distribution of RWAs by type of risk and Model based on 1922 Pilar Ill report. 2Q22 Fixed Income 43 a O
Slide 44: Debt Issuances 2019 - 2022 YTD
2Q22 Fixed Income 44 Debt Issuances 2019 — 2022 YTD PRODUCT ISSUE DATE CALL DATE MATURITY NOMINAL CURRENCY COUPON @BBVAS.A. SP Jur22 - Juk24 €400M 3ME+0,7% sp May-22 - Nov-25 €1,250M 1.750% SP May-22 - Nov-25 €500M 3ME+1% SP May-22 - May-24 €100M 1,00% SNP Jan-22 Jan-28 Jan-29 €1,000M 0.875% SP Dec-
Slide 45: Called notes 2018 - 2022 YTD
2Q22 Fixed Income 45 Called notes 2018 — 2022YTD economic call policy OUTSTANDING PRODUCT ISSUE DATE REDEMPTION CURRENCY (M) COUPON BBVA, S.A. AT May-17 May-22* €500 5.875% BBVA, S.A. ATI Apr-16 Apr-21 € 1,000 8.875% Caixa Terrassa SPP Preferred Ago-05 Jan-21 €75 10yCMS+0.10% BBVA Intl. Preferred Un
Slide 46: Main Subsidiaries Ratings
Main Subsidiaries Ratings! BBVA LONG TERM SENIOR UNSECURED RATINGS Investment grade Non Investment Grade BBVA Mexico AAA/Aaa AA+/Aal AA/Aa2 AA-/Aa3 A+/Al ASAZ A-/AS aS oY BBB-/Baa3 BB+/Bal BB/Ba2 BB-/Ba3 B+/B1 B/B2 B-/B3 ccc cc .) Garanti BBVA AAA/Aaa AA+/Aal AA/Aa2 AA-/Aa3 A+/Al A/A2 A/A3 BBB+/Baal
Slide 47: Sovereign Exposure by geography
Sovereign Exposure by geography! € bn; JUN-22 Amortized Cost Fair Value debt debt securities securities (HTC) (HTC&S) Spain 18.1 10.9 Italy 33 53 Mexico 37 89 USA 0.0 3.0 Turkey 47 3.9 All Others Sovereign Non-trading Trading financial assets securities | mandatorily at fair value through P&L 75 0.0
Slide 48: Book Value of the main subsidiaries
2Q22 Fixed Income 48 Book Value of the main subsidiaries(:2) € BN; JUN-22 Mexico By es 15 Turkey 6.3 Colombia @& W115 Argentina = Peru gy 812 Chile wy 103 Venezuela zm | 0.1 (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuation adjustments, The Goodwill ass
Slide 49: BBVA
BBVA
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) — Q2 2022 Earnings Presentation on 6ix