Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — FY2013 Earnings Presentation
36 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Jan 31, 2014
Slide 1: 2013 Results
Angel Cano, BBVA^s President & Chief Operating Officer Madrid, January 31st 2014 2013 Results
Slide 2: Disclaimer
Disclaimer This document is only provided for information purposes and does not constitute, nor must 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 securities
Slide 3: Risk Highlights
Risk Highlights Adequate financing structure Solvency Liquidity Earnings Risk Recurring revenue in a complex environment Spotlight on Spain Management and strength of capital Strong fundamentals
Slide 4: Risk, Solvency, Liquidity, Earnings Highlights
Risk Solvency Liquidity Earnings Highlights Risk Strong fundamentals NPA ratio 4.6% Liquidity gap reduced €33bn (€ balance sheet, 12M13) Gross income €21,397m (12M13) Coverage ratio 59% Note: risk figures exclude real estate activities. NPA ratio of real estate activity in Spain: 55.5% and coverage
Slide 5: Notable aspects of a complex year
Notable aspects of a complex year - Portfolio managment: corporate operations - AT1 Issued - Dividend policy change - CNCB operation - Reclassification of refinanced assets External factors - Mortgage floor ruling - Low interest rate environment and deleveraging - Hyper-inflation and devaluation in
Slide 6: Earnings: strength and recurrence of revenue despite environment
Earnings: strength and recurrence of revenue despite environment ... Net interest income + fee income €m -2.2% -2.3% Gross income €m +3.5% constant € +2.6% constant € Recurring revenue is growing +5,0% in 4Q13 +2,6% in 4Q13
Slide 7: Strongly supported by diversification
... strongly supported by diversification ... Note: excludes Holding. YoY variation in constant € Spain Rest of Europe Mexico South America Turkey Asia USA Developed 40% YoY change Weight -7.0% Emerging 60% YoY change Weight +16.1% Breakdown of gross income 12M13 % Driven by emerging markets
Slide 8: Cost management adapted to each region
... and cost management adapted to each region ... Costs contained Perimeter effect YoY change 12M13 vs 12M12 (%) Investment for the future Exposure to inflationary economies Developed Emerging YoY change 12M13 vs 12M12 (%) Note: excludes Holding +3.8% Current € (+8.4%) Constant € Costs 12M13 vs 12M
Slide 9: Operating income and leadership in profitability
Operating income €m -3.0% constant € -8.2% ... resulting in solid earnings and leadership in terms of profitability Ability to absorb loan-loss provisioning Operating income/ATAs BBVA vs peer group ; 9M13 (%) Note: peer group includes BARCL, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, RBS, SAN, SG, UBS
Slide 10: Risk: Spain is still in the spotlight
Risk: Spain is still in the spotlight NPA ratio (%) Coverage ratio (%) Cum. risk premium 1.6% 1.5% 1.2% 1.4% 1.4% NPAs Indicators NPAs €bn Refinancing Note: risk figures exclude real estate activities. NPA ratio for real estate activity in Spain: 55.5%, 61% coverage, NPAs €9.3bn and risk premium 3.2
Slide 11: Capital: strength and capital generation
Core capital ratio (BIS 2.5) (%) Capital: strength and capital generation Note: " Corporate operations " include CNBC and those in Latin America. "Other" mainly consists of capital losses on AFS equities, minorities and currency effects. Leverage ratio: 5.6% And ... Core ratio: 9.8% BIS III fully lo
Slide 12: Liquidity: solid position on euro balance sheet
Liquidity: solid position on euro balance sheet Reduced financing requirements Higher proportion of cust. funds Liquidity gap reduced €33bn (€ balance sheet, 12M13) Issues with longer tenors and lower cost Pioneers in AT1 issue under BIS III Change in funding mix Issuance activity Improved balance s
Slide 13: Summary: resilience in a difficult year
Summary: resilience in a difficult year €m Affected by one-off items Analyst assessment Note: Earnings are presented this way to show the development of recurring business. The reconciliation with the official earnings statement is shown on page 47 of the financial information filed today with the C
Slide 14: Once again...
Once again ... Strong revenues Solid earnings Strong structure Net attributable profit €2.2bn Solvency 4.6% 59% Liquidity Risk NPA ratio Coverage ratio 11.6% BIS 2.5 €21bn Diversified revenues 60% Emerging liquidity gap €33bn (12M13) (12M13) 5.6% Leverage ratio Note: risk figures exclude real estate
Slide 15: Business Areas
’ BBVA Business Areas
Slide 16: Developed
Developed Emerging
Slide 17: Banking activity in Spain: management in a complex environment
-8.5% Lending -9.3 % +13.0% Customer funds Business activity in Spain YoY chg in average balances Net interest income €m Operating income €m -19.3% Gross income €m Banking activity in Spain: management in a complex environment -18.4% Increases in market share of lending and customer funds in 2013
Slide 18: Banking activity in Spain: risk and reclassified refinanced loans
Banking activity in Spain: risk reflects impact of reclassifying refinanced loans NPA and coverage ratios (%) NPAs €bn NPA ratio Coverage ratio Refinancing Improved trend of NPAs entries: moving towards normal conditions
Slide 19: Banking activity in Spain: income statement
€m Banking activity in Spain: income statement Improved outlook
Slide 20: Real estate business in Spain: exposure reduction
Real estate business in Spain: exposure reduction 18.0 15.6 14.6 Note: transparency perimeter on like-for-like basis. The figures include Unnim but exclude the investment in Metrovacesa. * Other foreclosed assets includes foreclosed assets that do not stem from financing family home buying Net expos
Slide 21: Real estate business in Spain: risk is contained
NPAs €bn NPA and coverage ratios (%) NPA ratio Coverage ratio Real estate business in Spain: risk is contained Refinancing
Slide 22: Real estate business in Spain: income statement
Real estate business in Spain: income statement €m Focus on sales
Slide 23: USA: fast pace of new business
Lending +12.8% +4.0% Customer funds Net interest income Constant €m Compass business activity Average balance, YoY, in constant € Operating income Constant €m Gross income Constant €m -3.1% -6.2% -12.1% USA: fast pace of new business in low-interest rate environment
Slide 24: USA: excellent risk indicators
NPA ratio Coverage ratio NPA and coverage ratios % USA: excellent risk indicators Loan-loss provisions and risk premium Quarter on quarter (€m constant, %)
Slide 25: USA: income statement
USA: income statement Sensitive to interest rates Constant €m
Slide 26: Emerging
Developed Emerging
Slide 27: EurAsia: area of future growth
EurAsia: area of future growth Sale of 5.1%: efficient capital allocation China Commitment to China remains Good performance by Garanti despite uncertainty Market with high potential Turkey
Slide 28: EurAsia: income statement
Note: in accordance with IFRS Garanti is accounted by the equity method for the purpose of uniform presentation based on the proportional consolidation method. EurAsia: income statement Solid contribution despite environment Constant €m
Slide 29: Mexico: income reflects buoyant activity
Mexico: income reflects buoyant activity Lending +10.1% +11.0% Customer funds Business activity Average balance, YoY, in constant € Net interest income Constant €m Operating income Constant €m +7.7% +8.1% +8.0% Gross income Constant €m
Slide 30: Mexico: risk indicators are stable
Mexico: risk indicators are stable NPA ratio Coverage ratio Loan-loss provisions and risk premium Quarter by quarter (€m constant, %) NPA and coverage ratios %
Slide 31: Mexico: income statement
Mexico: income statement Constant €m The leading franchise
Slide 32: South America: buoyant business and strong income
South America: buoyant business and strong income Lending +21.2% +26.7% Customer funds Business activity Average balance, YoY, in constant € Net interest income Constant €m Operating income Constant €m +33.6% +25.3% +27.0% Gross income Constant €m
Slide 33: South America: good risk indicators
NPA ratio Coverage ratio NPA and coverage ratios % South America: good risk indicators Loan-loss provisions and risk premium Quarter by quarter (€m constant, %)
Slide 34: South America: income statement
South America: income statement Note: pension business is included under the holding Diversifying within the region Constant €m
Slide 35: In summary
Spain Market share gains in a context of low interest rate and deleveraging Risk premium returning to normal level In summary: Strength and leadership Transformation of the distribution model Sustained profitability and diversification within the region Investment plan to harness future potential Ch
Slide 36: 2013 Results
Angel Cano, BBVA President & Chief Operating Officer Madrid, January 31st 2014 2013 Results SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Bilbao
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