Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Debt Investor Presentation (February 2025)
53 slides from Banco Bilbao Vizcaya Argentaria's debt investor presentation, February 2025
Slide 1: 4Q24 Fixed Income Presentation
4Q24 Fixed Income Presentation
Slide 2: Disclaimer
4Q24 Fixed Income 2 Disclaimer This document is only provided for information purposes and is not intended to provide financial advice and, therefore, does not constitute, nor should it be interpreted as, an offer to sell, exchange or acquire, or an invitation for offers to acquire securities issued
Slide 3: BBVA
BBVA O1 BBVA
Slide 4: BBVA's global reach and financial performance
4Q24 Fixed Income 4 BBVA’s global reach and financial performance BBVA’s GLOBAL PRESENCE FINANCIAL HIGHLIGHTS DECEMBER 2024 DECEMBER 2024 Net attributable profit 12M24 CET1 ratio FL 10,054 M€ 12.88% Loans and advances to Total assets Deposits from customers customers (gross) Countries Branches Employe
Slide 5: Diversified model with leading franchises in attractive markets
4Q24 Fixed Income 5 Diversified model with leading franchises in attractive markets DIVERSIFICATION UNDER A STRONG MARKET POSITION RANKING AND LOAN MARKET SHARE (%)2 DECENTRALIZED MODEL Rest of Business South America 8% SPAIN # 3 14.1% TOTAL 9% ASSETS1 Turkey Spain DEC’24 10% 52% MEXICO # 1 25.4% Mex
Slide 6: Profitable business mix
4Q24 Fixed Income 6 Profitable business mix LOANS AND ADVANCES TO CUSTOMERS DEPOSITS FROM CUSTOMERS (PERFORMING LOANS UNDER MANAGEMENT EX-REPOS) (CUSTOMER DEPOSITS UNDER MANAGEMENT EX-REPOS) DEC-24 DEC-24 23% Mortgages 23% CIB1 24% Time Deposits 51% Retail Commercial 43% Public sector 5% 76% Demand D
Slide 7: Proving track record of solid financial returns
4Q24 Fixed Income 7 Proving track record of solid financial returns STRONG PRE-PROVISION PROFIT AND OUTPERFORMING ON BEST-IN-CLASS EFFICIENCY PROFITABILITY PRE-PROVISION PROFIT/RWA EFFICIENCY RATIO ROTE BBVA: 2020-2024, % BBVA: 2020-2024, % BBVA: 2020-2024, % PEERS: 2020-9M24, % PEERS: 2020-9M24, % P
Slide 8: Solid fundamentals
4Q24 Fixed Income 8 Solid fundamentals SOUND ASSET QUALITY METRICS STRONG CAPITAL COMFORTABLE LIQUIDITY NPL Ratio CET 1 FULLY-LOADED (%) (%) NSFR Group 12.88% Coverage Ratio (%) 127% Target range 11.5-12.0% Cost of Risk YtD(%) CET1 Requirement LCR Group 9.13%1 162%2 Dec-23 Mar-24 Jun-24 Sep-24 Dec-2
Slide 9: Capturing value from digitization
4Q24 Fixed Income 9 Capturing value from digitization NEW CUSTOMERS1 (BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) DIGITAL 66% TOTAL DIGITAL 21% 2019 2020 2021 2022 2023 2024 ACTIVE CLIENTS2 52.6 M 77.2 M (1) Gross customer acquisition through own channels for retail segment. Exclude
Slide 10: Advancing in sustainable business
4Q24 Fixed Income 10 Advancing in sustainable business AVERAGE PROGRESS IN DECARBONIZATION SUSTAINABLE BUSINESS TARGETS (€ BILLION, CLIMATE CHANGE AND INCLUSIVE GROWTH) (SYNTHETIC INDICATOR) 99 70 50 35 2022 2024 2026 18 20 12 Actual progress in decarbonization 2018 2019 2020 2021 2022 2023 2024 Dec
Slide 11: 2024 Earnings
BBVA O02 2024 Earnings
Slide 12: Net Attributable Profit follows a very positive trend
4Q24 Fixed Income 12 Net Attributable Profit follows a very positive trend RECURRENT NET ATTRIBUTABLE PROFIT1 (CURRENT €M) 10,054 +25% vs. 2023 8,019 6,621 4,830 5,069 3,084 2019 2020 2021 2022 2023 2024 Reported NAP (€M) 3,512 1,305 4,653 6,420 8,019 10,054 (1) Recurrent Net Attributable Profit which
Slide 13: 2024 key financial messages
4Q24 Fixed Income 13 2024 key financial messages NET INTEREST INCOME TOTAL LOAN GROWTH1 STRONG NET INTEREST INCOME 1 DRIVEN BY ACTIVITY GROWTH +12.9% vs. 2023 +14.3% vs. DEC 2023 CONSTANT CONSTANT NET FEES AND COMMISSIONS OUTSTANDING FEE INCOME 2 EVOLUTION +30.8% vs. 2023 CONSTANT EFFICIENCY RATIO LE
Slide 14: 2024 Profit & Loss
4Q24 Fixed Income 14 2024 Profit & Loss BBVA GROUP (€M) Change 12M24/12M23 12M24 % const. % Net Interest Income 25,267 13 9 Net Fees and Commissions 7,988 31 27 Net Trading Income 3,913 91 79 Other Income & Expenses -1,686 -22 -16 Gross Income 35,481 25 20 Operating Expenses -14,193 18 15 Operating I
Slide 15: Positive jaws and leading efficiency
4Q24 Fixed Income 15 Positive jaws and leading efficiency POSITIVE JAWS EFFICIENCY RATIO (2024 YOY, CONSTANT €) (COST-TO-INCOME, % CONSTANT €) FOOTPRINT -226 bps INFLATION1 19.6% 12M AVERAGE +25.0% +18.3% 40.0 Gross Operating 2023 2024 Income Expenses (1) Weighted by operating expenses and excluding
Slide 16: Asset quality metrics within expectations while improving NPL and coverage ratios
4Q24 Fixed Income 16 Asset quality metrics within expectations while improving NPL and coverage ratios FINANCIAL ASSETS IMPAIRMENTS NPL (CONSTANT €M) (CURRENT €BN) 4Q23 1Q24 2Q24 3Q24 4Q24 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 COST OF RISK NPL & COVERAGE RATIOS (%, YTD) (%) COVERAGE NPL 12M23 3M24 6M24
Slide 17: We have clearly outperformed our ambitious 2021-2024 Investor Day goals
4Q24 Fixed Income 17 We have clearly outperformed our ambitious 2021-2024 Investor Day goals COST-TO-INCOME ROTE1 TBV + DIVIDENDS (%) (%) (€/SHARE, %) CAGR 2021-2024 45.2 12.0 2021-24 CAGR NEW TARGET CUSTOMERS2 SUSTAINABLE BUSINESS (MILLION CUMULATIVE) (€ BILLION, CUMULATIVE SINCE 2018) GOAL Current
Slide 18: New Strategic Priorities 2025-2029
4Q24 Fixed Income 18 New Strategic Priorities 2025-2029 WHAT DOES BBVA STAND FULL COMMITMENT SOUND FOUNDATIONS FOR TO CLIENTS? A NEW TO GROWTH TO DRIVE MEANINGFUL WAVE OF DIFFERENTIATION AND VALUE CREATION IMPACT ACROSS THE BOARD Embed a Radical Boost Sustainability as a Unlock the Potential of AI a
Slide 19: Business Areas
Business SPAIN Areas MEXICO TURKEY SOUTH AMERICA
Slide 20: Activity growth in Spain and Mexico provide resiliency for the future
4Q24 Fixed Income 20 Activity growth in Spain and Mexico provide resiliency for the future LOANS CUSTOMER FUNDS TOTAL GROWTH KEY SEGMENTS TOTAL GROWTH OFF BALANCE SHEET (YOY, CURRENT €) (YOY DEC-24, CURRENT €) (YOY, CURRENT €) (YOY DEC-24, CURRENT €) +11.8% +6.8% +6.3% SPAIN +4.1% +5.2% +2.1% -0.9%
Slide 21: Spain
4Q24 Fixed Income 21 Spain PROFIT & LOSS (€M) ACTIVITY (DEC-24) Δ (%) Δ (%) €Bn YoY €Bn YoY 4Q24 vs. 4Q23 vs. 3Q24 12M24 vs. 12M23 +4.1% +5.2% Net Interest Income 1,604 2.4 -1.0 6,435 14.5 Net Fees and Commissions 619 10.3 9.3 2,329 7.7 Net Trading Income 108 7.4 -48.5 675 64.9 Mortgages +1.6% Other
Slide 22: Mexico
4Q24 Fixed Income 22 Mexico PROFIT & LOSS (CONSTANT €M) ACTIVITY (DEC-24) (CONSTANT €) Δ Constant (%) Δ Current (%) Δ Constant (%) €Bn €Bn YoY YoY +11.6% 4Q24 vs. 4Q23 vs. 3Q24 12M24 vs. 12M23 vs. 12M23 +15.8% Net Interest Income 3,033 10.1 2.7 11,556 4.5 8.0 Net Fees and Commissions 647 12.9 5.8 2,
Slide 23: Turkey
4Q24 Fixed Income 23 Turkey PROFIT & LOSS (CURRENT €M) ACTIVITY (DEC-24) (CONSTANT €; BANK ONLY) Δ Current (%) Δ Current (%) €Bn €Bn YoY1 4Q24 12M24 YoY1 -5.0% vs 4Q23 vs 3Q24 vs. 12M23 FC Net Interest Income 566 97.0 76.8 1,492 -20.2 Time -24.5% +15.5% Net Fees and Commissions 707 91.8 41.6 2,111 1
Slide 24: South America
4Q24 Fixed Income 24 South America NET ATTRIBUTABLE PROFIT (CURRENT €M) ACTIVITY (DEC-24) (CONSTANT €) €Bn YoY +26.6% Δ Current (%) Δ Current (%) €Bn YoY +16.8% 4Q24 vs. 4Q23 vs. 3Q24 12M24 vs. 12M23 Colombia -1 -102.7 -103.2 90 -41.0 Colombia +4.9% Colombia Peru 54 14.9 -14.0 227 14.4 -0.1% Argenti
Slide 25: 2025 Outlook
4Q24 Fixed Income 25 2025 Outlook GROUP SPAIN MEXICO Loans: loan growth at low to mid Loans: growth at high single single digit, outperforming the digit ROTE at high teens, similar to market NII: grow slightly below 2024 NII: slight decline, supported by activity growth activity and price management
Slide 26: Capital & Liquidity
BBVA O03 Capital & Liquidity
Slide 27: High quality and resilient capital
4Q24 Fixed Income 27 High quality and resilient capital STRONG CAPITAL HIGH RWAS DENSITY, WITH A LIMITED CAPITAL RESILIENCE UNDER POSITION USE OF INTERNAL MODELS 2 STRESS SCENARIOS CET1 FULLY-LOADED RWA/TOTAL ASSETS LEVERAGE RATIO FL 2023 EBA ST -ADVERSE SCENARIO (%) BBVA DEC-24/PEERS SEP-24 BBVA DE
Slide 28: Sound capital position above our target
4Q24 Fixed Income 28 Sound capital position above our target CET1 FULLY-LOADED AT1 AND TIER 2 FL BUCKETS (%, BPS) DEC-24 (%) No impact expected from BIS IV in CET1 ratio in +4bps 2025 +64 bps 2.50% -35bps 2.38% -18 bps 12.84% -7 bps 12.88% 1.78% Target Range 1.53% 11.5%-12.0% SREP Requirement 9.13%
Slide 29: Among the lowest SREP requirement with a comfortable MDA distance
4Q24 Fixed Income 29 Among the lowest SREP requirement with a comfortable MDA distance BBVA, GROUP CET1 REQUIREMENT AND DISTANCE TO MDA BBVA DEC-24/ PEERS SEP-24 Distance to MDA 2 13.50% 350 bps 16.90% T2 11.18% 13.29% 10.87% AT1 10.27% T2 10.22% 10.10% 9.62% 9.37% 9.13% 8.61% 8.59% 9.13% AT1 CCyB 1
Slide 30: Strong capital position in BBVA, S.A., above requirement
4Q24 Fixed Income 30 Strong capital position in BBVA, S.A., above requirement BBVA, S.A. REQUIREMENT AND DISTANCE TO MDA DEC-24 Distance to MDA2 18.67% 573 bps €13.3 Bn T2 12.14% 2 AT1 T2 AT1 7.98% 1 CCyB 1 CCB CET 1 Pillar 2R CET 1 Pillar 1 CET1 Total Capital Total Capital Ratio Requirement 2024 Re
Slide 31: Sound MREL position
4Q24 Fixed Income 31 Sound MREL position POSITION AS OF DEC-24 (% RWA1) MREL REQUIREMENT + CBR SUBORDINATION REQUIREMENT + CBR 27.92% 23.13% 26.43% CBR: 3.64% 3 17.14% 3 CBR: 3.64% MREL 22.79% Subordination 13.50% 2 2 M-MDA Buffer 149 bps (3.4€bn) Subordination Buffer 599 bps (13.7€bn) Note: Prelimi
Slide 32: Liquidity ratios well above requirements with ample quality collateral
4Q24 Fixed Income 32 Liquidity ratios well above requirements with ample quality collateral BBVA GROUP LIQUIDITY BALANCE SHEET1 BBVA GROUP LIQUIDITY AND FUNDING METRICS DEC-24 DEC-24 Mexico Turkey3 South BBVA S.A.2 America LTD 90% 104% 84% 92% LCR 156% 146% 141% >100% NSFR 119% 131% 149% >100% LCR G
Slide 33: Limited wholesale funding maturities in all geographies
4Q24 Fixed Income 33 Limited wholesale funding maturities in all geographies DEBT OUTSTANDING BY PRODUCT WHOLESALE FUNDING MATURITIES DEC-24, € BN DEC-24, € BN Others1 Senior Preferred EURO 12.2 18% 21.8 € 51.5 bn 32% T2 / TOTAL Subordinated 20% 67.4 13.7 MEXICO 8% 12% €9.2 bn AT1 / Preferred 9% Sen
Slide 34: Funding Plan
4Q24 Fixed Income 34 Funding Plan Oriented to meet call options for hybrid instruments and MREL eligibility losses. 2025 Continued focus on optimizing the capital structure. Subject to Balance Sheet and liquidity evolution. BBVA, S.A. 2024 2025 2025 2025 Strategy1 Executed Executed Planned (€Bn) (€B
Slide 35: All Ratings Agencies assign BBVA a rating on the single A space
4Q24 Fixed Income 35 All Ratings Agencies assign BBVA a rating on the single A space BBVA LONG TERM BBVA RATINGS BY TYPE OF INSTRUMENT AND ISSUER SENIOR PREFERRED RATINGS Moody’s S&P Fitch DBRS Investment Aaa AAA AAA AAA CB Positive outlook grade Aa1 CB CB AA+ AA+ AA (H) Moody’s (Mar. 19th, 2024) A3
Slide 36: Annex
Annex 01 4Q24 Profit & Loss 09 Risk-weighted assets by business area BBVA Group Net 10 Group RWA breakdown 02 Attributable Profit 4Q24 03 ALCO Portfolio 11 Debt Issuances 2024-2025 YTD NII sensitivity to interest rate 12 Called notes 2018-2025 YTD 04 movements 05 Customer spread: YtD evolution 13 Whol
Slide 37: 4Q24 Profit & Loss
4Q24 Fixed Income 37 4Q24 Profit & Loss BBVA GROUP (€M) Change Change 4Q24/4Q23 4Q24/3Q24 4Q24 % const. % % const. % Net Interest Income 6,406 10 22 6 9 Net Fees and Commissions 2,234 27 32 9 17 Net Trading Income 983 14 31 -15 -6 Other Income & Expenses -303 22 19 n.s. n.s. Gross Income 9,320 14 25
Slide 38: Business Areas Contribution to Group's NAP 4Q24 YoY growth
4Q24 Fixed Income 38 Business Areas Contribution to Group's NAP 4Q24 YoY growth NET ATTRIBUTABLE PROFIT (BUSINESS AREAS CONTRIBUTION TO 4Q24 YOY GROWTH; CURRENT €M) +18% 4Q23 Spain Mexico Turkey South Rest of Corporate 4Q24 America Business Center NAP 4Q24 (€M) 918 1,254 177 164 98 -179 NAP growth (
Slide 39: ALCO Portfolio
4Q24 Fixed Income 39 ALCO Portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value (HTC) (HTC&S) (duration Dec-24 (€BN) (€BN) incl. hedges) South America 0.3 6.3 1.6 years Turkey 6.8 2.8 4.4 years Mexico 4.6 11.6 2.6 years Euro 36.2 8.9 2.9 years (1) Spain 29.6 2.5 Italy 2.9 4.1 Res
Slide 40: NII sensitivity to interest rates movements
4Q24 Fixed Income 40 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 MOVEMENT, %) + -c.5% + -2.4% EURO BALANCE MEXICO SHEET Note: NII sensitivities to parallel interest rates movements as of D
Slide 41: Customer spreads: YtD evolution
4Q24 Fixed Income 41 Customer spreads: YtD evolution AVERAGE 12M23 12M24 12M23 12M24 Spain 3.15% 3.39% Turkey TL 0.90% -0.08% Yield on Loans 3.77% 4.26% Yield on Loans 21.05% 36.84% Cost of Deposits -0.61% -0.87% Cost of Deposits -20.15% -36.92% 1 Mexico MXN 12.60% 12.42% Turkey FC 9.01% 8.86% Yield
Slide 42: Stages breakdown by business areas
4Q24 Fixed Income 42 Stages breakdown by business areas CREDIT RISK BUSINESS BREAKDOWN BY AREA (DEC-24, € M) Gross Accumulated Gross Accumulated Gross Accumulated BBVA GROUP Exposure impairments SPAIN Exposure impairments MEXICO Exposure impairments Stage 1 439,209 2,434 Stage 1 183,371 507 Stage 1
Slide 43: Capital Base BBVA Group & BBVA, S.A.
4Q24 Fixed Income 43 Capital Base BBVA Group & BBVA, S.A. CAPITAL RATIOS DEC-24 (%) 16.90% 18.67% T2 AT1 CET1 BBVA Group BBVA, S.A. CET 1 € 50,799 m € 31,815 m AT1 € 6,023 m € 5,638 m T2 € 9,858 m € 5,876 m Total Capital Base € 66,680 m € 43,329 m RWA € 394,468 m € 232,024 m Note: Preliminary Data W
Slide 44: CET1 Sensitivity to Market Impacts
4Q24 Fixed Income 44 CET1 Sensitivity to Market Impacts1 TO A 10% CURRENCY DEPRECIATION2 TO A 10% DECLINE IN TELEFONICA’S (DEC-24) SHARE PRICE (DEC-24) MXN -9bps TRY -4bps -2 bps USD +20bps TO +100 BPS MOVEMENT IN THE TO +100 BPS MOVEMENT IN THE MEXICAN SOVEREIGN BOND SPANISH SOVEREIGN BOND (DEC-24)
Slide 45: Risk-weighted assets by business area
4Q24 Fixed Income 45 Risk-weighted assets by business area Fully-Loaded risk-weighted assets Fully-Loaded RWAs Δ (%) Breakdown by business area (€M) Dec-23 Sep-24 Dec-24 vs. Dec-23 vs. Sep-24 Spain 121,779 123,356 122,627 0.7% -0.6% Mexico 91,865 87,381 92,925 1.2% 6.3% Turkey 54,506 61,394 64,821 1
Slide 46: Group RWA breakdown
4Q24 Fixed Income 46 Group RWA breakdown TOTAL RWA BREAKDOWN PHASED-IN 52% IRB Models ▰ Optimizing Capital Allocation is part of BBVA’S Strategic Priorities 0.3% CVA ▰ Limited usage of internal 1.1% FX Risk 87.5% Credit Risk models in Credit Risk RWAs, mitigating potential impacts 3.5% Trading Act R
Slide 47: Debt Issuances 2024 - 2025 YTD
4Q24 Fixed Income 47 Debt Issuances 2024 - 2025 YTD BBVA, S.A. PRODUCT ISSUE DATE CALL DATE MATURITY NOMINAL COUPON AT1 Jan-25 Jun-32 Perp $ 1,000 M 7.750% T2 Aug-24 Aug-31* Aug-36 € 1,000 M 4.375% AT1 Jun-24 Jun-31* Perp € 750 M 6.875% SP Jun-24 - Jun-27 € 1,000 M 3mE+45 bps SP Jun-24 - Jun-30 € 75
Slide 48: Called notes 2018 - 2025 YTD
4Q24 Fixed Income 48 Called notes 2018 - 2025 YTD* BBVA follows an PRODUCT ISSUE DATE REDEMPTION OUTSTANDING COUPON economic CURRENCY (M) call policy BBVA, S.A. T2 Jan-20 Jan-25 € 1,000 1.000% BBVA, S.A. AT1 Mar-19 Mar-24 € 1,000 M 6,000% BBVA, S.A. T2 Feb-19 Feb-24 € 750 2.575% BBVA, S.A. AT1 Sep-1
Slide 49: Wholesale maturities 2025 - 2029+
4Q24 Fixed Income 49 Wholesale maturities 2025 - 2029+ Bn € EURO 2025 2026 2027 2028 2029+ TOTAL Senior Preferred 4.7 2.0 2.3 0.2 5.6 14.8 Senior Non Preferred 2.0 1.2 2.0 1.1 2.0 8.2 Covered Bonds 2.4 1.0 1.7 0.0 0.9 5.9 Preferred Shares 1.0 1.0 1.0 1.0 1.7 5.6 Subordinated 1.2 0.4 1.3 1.2 3.4 7.5
Slide 50: Main Subsidiaries ratings
4Q24 Fixed Income 50 Main Subsidiaries ratings BBVA LONG TERM SENIOR UNSECURED RATINGS BBVA Mexico Garanti BBVA BBVA Argentina BBVA Colombia BBVA Peru Investment AAA/Aaa AAA/Aaa AAA/Aaa AAA/Aaa AAA/Aaa grade AA+/Aa1 AA+/Aa1 AA+/Aa1 AA+/Aa1 AA+/Aa1 AA/Aa2 AA/Aa2 AA/Aa2 AA/Aa2 AA/Aa2 AA-/Aa3 AA-/Aa3 A
Slide 51: Book Value of the main subsidiaries
4Q24 Fixed Income 51 Book Value of the main subsidiaries1,2 € BN; DEC-24 Δ (%) QoQ Mexico 20.2 +7.9% Turkey 8.0 +10.5% Colombia 1.9 +1.2.% Argentina 1.7 +10.5% Peru 1.6 +9.9% Uruguay 0.3 +0.5% Chile 0.3 +3.2% Venezuela 0.1 +25.0% (1) Includes the initial investment + BBVA’s undistributed results + F
Slide 52: ESG Credentials
4Q24 Fixed Income 52 ESG Credentials SUSTAINABLE BUSINESS SOCIAL GOVERNANCE Sustainable Business Channeling Positive impact on society Directors Loan growth1 Sustainable Business 300 €Bn 2018-2025 (DEC-24, YOY, CONSTANT €) +14.3 % % Female 47% Goal: 40% Directors at least goal 160,000 715,000 70,000
Slide 53: BBVA
BBVA
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) — Debt Investor Presentation (February 2025) on 6ix